An Examination of Partitioned Pricing and the Influence of Culture and Familiarity on Sport Consumer Behavior

Abstract

Prior research has examined consumer behavior toward partitioned pricing in various capacities, including types and number of surcharges and the use of dollars versus percentages. Given the fact partitioned pricing is not employed in every country, this investigation focused on consumer behavior toward this pricing strategy based on familiarity with partitioned pricing and cultural differences. An experimental design was implemented to examine South Korean and US sport consumers’ attitudes and behaviors related to ticket prices for a mega-sporting event. The findings showed all-inclusive pricing, in general, is preferred and culture does not significantly impact consumer behavior in this context. Additionally, familiarity moderated the relationship between cultural differences and consumer behavior. Consumers who were familiar with partitioned pricing were more attracted to partitioned pricing ticket offers and had higher purchase intentions compared to consumers who were less familiar with the practice. Implications of these findings are discussed along with directions for future research.