Dertwinkel-Kalt, Markus Köster, Mats Sutter, Matthias
Year of Publication:
DICE Discussion Paper 333
We examine whether shrouding or partitioning of a surcharge raises demand in online shopping. In a field experiment with more than 34,000 consumers, we find that consumers in the online shop of a cinema initiate a purchase process for a 3D movie more often when the 3D surcharge is shrouded, but they also drop out more often when the overall price is shown at the check-out. In sum, the demand distribution is independent of the price presentation. This result qualifies previous findings on the effectiveness of shrouding surcharges and can be rationalized through low cancellation costs.
Salience Inattention Shrouding Price partitioning Field experiment