Theoretical foundations in the pricing of intermediating services: The case of payments via mobile phones

Intermediating services are relatively new in research. This study explores how consumers may determine the value of intermediating services and the extent on willingness to pay. We investigate a mobile payment technology that intermediates payments facilitated by a telecommunication company and a bank. We show that a derived effect may persuade consumers to pay higher for the intermediating service when the items purchased have a higher surplus to justify the consumption of the service. Our study also shows that money has polarity, in that money that is ‘owned’ by the individual is viewed differently from money ‘not owned’.

[1]  Irene C. L. Ng.  The Pricing and Revenue Management of Services - A strategic approach , 2009, Routledge Advances in Management and Business Studies.

[2]  Steven M. Shugan,et al.  Electronic Tickets, Smart Cards, and Online Prepayments: When and How to Advance Sell , 2001 .

[3]  F. Bélanger.  The Influence of Perceived Characteristics of Innovating on e-Government Adoption , 2004 .

[4]  Fred D. Davis,et al.  A Theoretical Extension of the Technology Acceptance Model: Four Longitudinal Field Studies , 2000, Management Science.

[5]  E. Rogers.  Diffusion of Innovations , 1962 .

[6]  Marvin A. Sirbu,et al.  NetBill: an Internet commerce system optimized for network-delivered services , 1995, IEEE Wirel. Commun..

[7]  Christopher R. Plouffe.  Intermediating technologies and multi‐group adoption: A comparison of consumer and merchant adoption intentions toward a new electronic payment system , 2001 .

[8]  Margherita Pagani.  Determinants of adoption of third generation mobile multimedia services , 2004 .

[9]  Andreas Jonason,et al.  Innovative pricing: a case of pricing for profits on the mobile internet , 2004, Int. J. Inf. Technol. Manag..

[10]  R. Venkatesh,et al.  A Probabilistic Approach to Pricing a Bundle of Products or Services , 1993 .

[11]  Marijn Janssen,et al.  Evaluating the role of intermediaries in the electronic value chain , 2000, Internet Res..

[12]  P. Cook,et al.  The Demand for Insurance and Protection: The Case of Irreplaceable Commodities , 1977 .

[13]  Irene C. L. Ng,et al.  The strategic role of unused service capacity , 1999 .

[14]  J. Bakos.  Reducing buyer search costs: implications for electronic marketplaces , 1997 .

[15]  Catherine C. Marshall,et al.  Designing Qualitative Research , 1996 .

[16]  Michael R. Middleton.  Self service: what is the function of the new intermediary? , 2000 .

[17]  Irene C. L. Ng,et al.  ADVANCED SALE OF SERVICE CAPACITIES: A THEORETICAL ANALYSIS OF THE IMPACT OF PRICE SENSITIVITY ON PRICING AND CAPACITY ALLOCATIONS , 2001 .

[18]  Ivan P. L. Png,et al.  Reservations: Customer Insurance in the Marketing of Capacity , 1989 .

[19]  A. Tversky,et al.  Prospect theory: an analysis of decision under risk — Source link , 2007 .

[20]  Saul I. Gass,et al.  Documenting a Computer-Based Model , 1984 .

[21]  K. B. Monroe,et al.  How Buyers Perceive Savings in a Bundle Price: An Examination of a Bundle's Transaction Value: , 1993 .

[22]  B. Skiera,et al.  Paying Too Much and Being Happy about It: Existence, Causes, and Consequences of Tariff-Choice Biases , 2006 .

[23]  Albert L. Lederer,et al.  The technology acceptance model and the World Wide Web , 2000, Decis. Support Syst..

[24]  A. Tversky,et al.  Prospect Theory : An Analysis of Decision under Risk Author ( s ) : , 2007 .

[25]  Irene C. L. Ng.  A demand‐based model for the advance and spot pricing of services , 2009 .

[26]  Richard Schmalensee,et al.  Gaussian Demand and Commodity Bundling , 1984 .

[27]  John F. Rockart,et al.  IMPLICATIONS OF CHANGES IN INFORMATION TECHNOLOGY FOR CORPORATE STRATEGY , 2022 .

[28]  R. Thaler.  Mental accounting matters , 1999 .

[29]  J. Guiltinan.  The Price Bundling of Services: A Normative Framework , 1987 .

[30]  N. Barberis,et al.  Mental Accounting, Loss Aversion, and Individual Stock Returns , 2001 .

[31]  G. Tellis,et al.  Strategic Bundling of Products and Prices: A New Synthesis for Marketing , 2002 .

[32]  Steven M. Shugan,et al.  Advance Pricing of Services and Other Implications of Separating Purchase and Consumption , 2000 .

[33]  A. Tversky,et al.  Prospect theory: analysis of decision under risk , 1979 .

[34]  M. Marshall.  Sampling for qualitative research. , 1996, Family practice.

[35]  Fred D. Davis,et al.  User Acceptance of Computer Technology: A Comparison of Two Theoretical Models , 1989 .

[36]  Daniel McFadden,et al.  Essays on economic behavior under uncertainty , 1976 .

[37]  A. Tversky,et al.  The Effect of Myopia and Loss Aversion on Risk Taking: An Experimental Test , 1997 .

[38]  Deborah Compeau,et al.  Social Cognitive Theory and Individual Reactions to Computing Technology: A Longitudinal Study , 1999, MIS Q..

[39]  JoAnne Yates,et al.  Electronic markets and electronic hierarchies , 1987, CACM.

[40]  Gordon B. Davis,et al.  User Acceptance of Information Technology: Toward a Unified View , 2003, MIS Q..

[41]  Brian S. Butler,et al.  Intermediaries and Cybermediaries: A Continuing Role for Mediating Players in the Electronic Marketplace , 1995, J. Comput. Mediat. Commun..

[42]  Edi Karni,et al.  Risk Aversion for State-Dependent Utility Functions: Measurement and Applications , 1983 .

[43]  Robert J. Kauffman,et al.  Reintermediation Strategies in Business-to-Business Electronic Commerce , 2000, Int. J. Electron. Commer..