Abstract

This research examines the influence of price simplicity and complexity on consumer perceptions of price transparency and price attractiveness, focusing on smartphone prices. Although smartphones become consumer necessity that most consumers use every day and purchase frequently, many consumers experience difficulties in understanding smart phone prices because of the complexity of the price structure. This research proposes hypothesis that complexity of smartphone price influences perceptions of price transparency, which in turn affects price attractiveness. In addition, this research tests the moderating role of the deceptive intentions of the complex price in the influence of price simplicity-complexity on price attractiveness. Three empirical studies (two experiments and one survey) test our proposed theory and hypotheses. The results show that the influences of price simplity-complexcity on price attractiveness vary depending on the deceptive intentions of the complex price. When the complex price is set in a deceptive way to look less expensive, price complexity (vs. simplicity) has a positive influence on price attractiveness. However, at the same time, a complex price is also perceived to be less transparent, having a negative indirect effect on price attractiveness. Therefore, when the complex price is set to be deceptive, price simplicity-complexity has both positive and negative effects on price attractiveness simultaneously. On the contrary, when the complex price is not deceptive, price complexity (vs. simplicity) has negative influence on both price transparency and attractiveness perceptions.