The Role of Numbers in the Customer Journey

Shelle  Santana; Manoj  Thomas; Vicki  Morwitz

Article | Journal of Retailing | March 2020

The Role of Numbers in the Customer Journey

by Shelle Santana, Manoj Thomas and Vicki Morwitz

Abstract

At each stage in customers’ journeys, they encounter different types of numeric information that they process using different judgment strategies. Relevant numbers might include budgets, price, product attributes, product counts, product ratings, numbers in brand names, health and nutrition information, financial information, time-related information, and others. This manuscript provides a review of the vast array of numerical information presented to consumers at different stages of the customer journey. It also identifies several different types of judgment strategies that consumers use to evaluate numeric information. It includes a discussion of how consumers use these judgment strategies during the pre-purchase, purchase, and post-purchase stages of the customer journey, highlighting unanswered questions that identify new research opportunities. Implications for practice and research are identified.

Keywords: numbers; heuristics; numerical cognition; pricing; customer journey; Information; Consumer Behavior;

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Citation:

Santana, Shelle, Manoj Thomas, and Vicki Morwitz. "The Role of Numbers in the Customer Journey." Journal of Retailing 96, no. 1 (March 2020): 138–154.

Article | Marketing Science | January–February 2020

Consumer Reactions to Drip Pricing

Shelle Santana, Steven Dallas and Vicki Morwitz

This research examines how drip pricing—a strategy whereby a firm advertises only part of a product’s price upfront and then reveals additional mandatory or optional fees/surcharges as the consumer proceeds through the buying process—affects consumer choice and satisfaction. Across six studies, we find that when optional surcharges are dripped (vs. revealed upfront) consumers are more likely to initially select a lower base priced option that, after surcharges are included, is often more expensive than the alternative. Moreover, consumers exposed to drip pricing tend to ultimately select this lower base price but higher total price option, even after being exposed to the total price and given the opportunity to change their selection, and even though they are relatively dissatisfied with it. We explore why drip pricing has these effects and find that they are driven by consumers’ perceptions regarding the costs and benefits of starting over and switching. Specifically, we find that high perceived search costs (study 2), self-justification (study 3), and mistaken perceptions regarding the potential gains of switching because of inaccurate beliefs that all firms charge similar additional fees/surcharges (study 4) all play roles. We discuss the implications of these findings for marketers, consumers, and policy makers.

Keywords: drip pricing; pricing; consumer protection; hidden fees; Price; Consumer Behavior; Perception;

Citation:

Santana, Shelle, Steven Dallas, and Vicki Morwitz. "Consumer Reactions to Drip Pricing." Marketing Science 39, no. 1 (January–February 2020): 188–210. View Details

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The one day a year when consumers not only tolerate but actually eagerly anticipate ads is during the NFL's Super Bowl. In sharp contrast to their behavior on the other 364 days of the year, consumers watch an average of 89 commercials per Super Bowl game for an average of 46 minutes. Why are consumers willing to spend 3.5x more time watching commercials on the Super Bowl than on any other day of the year? Perhaps because they have come to expect the best, most creative, most engaging storytelling of the year from advertisers. With one out of every three Americans glued to the game, advertisers know they have a captive audience and they go to great lengths to stand out in what is somewhat akin to a battle of the brands. However, at a cost of more than $5 million for a 30-second spot, is Super Bowl advertising worth it? And, which types of Super Bowl stories are more and less likely to "win" on the Super Bowl?

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The Role of Numbers in the Customer Journey

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