The Effects of Cognitive Style, Shopping Experience and Consumer Demographics on Consumer Reactions to Quantity Surcharges

ABSTRACT

Quantity surcharges occur when large quantities of a product are sold at a higher unit price compared to smaller quantities. As such, quantity surcharges violate consumer beliefs that one should receive a discount for having purchased larger amounts of a product. Much of the existing research in this area has focused on the incidence of quantity surcharges, and less focus has been given to consumer reactions to quantity surcharge offers. Utilizing a national survey of 318 consumers, this paper explores the effects of quantity surcharges on consumer perceptions of sellers, and examines how these perceptions are affected by consumers' cognitive style, shopping experience and demographics.

KEYWORDS:

• Pricing
• discount
• retail
• quantity surcharge
• consumer response
• packaging
• purchase quantity