TY  - JOUR
A1  - Wolk, Agnieszka
A1  - Skiera, Bernd
T1  - Tariff-specific preferences and their influence on price sensitivity
T2  - Business research
N2  - For many services, consumers can choose among a range of optional tariffs that differ in their access and usage prices. Recent studies indicate that tariff-specific preferences may lead consumers to choose a tariff that does not minimize their expected billing rate. This study analyzes how tariff-specific preferences influence the responsiveness of consumers’ usage and tariff choice to changes in price. We show that consumer heterogeneity in tariff-specific preferences leads to heterogeneity in their sensitivity to price changes. Specifically, consumers with tariff-specific preferences are less sensitive to price increases of their preferred tariff than other consumers. Our results provide an additional reason why firms should offer multiple tariffs rather than a uniform nonlinear pricing plan to extract maximum consumer surplus.
KW  - pricing
KW  - nonlinear pricing
KW  - tariff choice
KW  - tariff-specific preferences
KW  - price elasticity
KW  - flat rate
KW  - three-part tariffs
KW  - flat-rate bias
KW  - pay-per-use bias
Y1  - 2014
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/86311
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-863113
SN  - 2198-2627
VL  - 3.2010
IS  - 1
SP  - 70
EP  - 80
PB  - VHB
CY  - Göttingen
ER  -