Price Formats and Quality Perceptions: How Do Pricing Tools Impact View of Affordability?
Deidre Popovich, Kelli Frias, and Mikaela Trussell
The healthcare industry in the United States continues to implement additional informational aids for consumers. One common decision-making aid is a price transparency website, which aims to provide consumers with the ability to compare and choose providers that offer a desired level of value. In this research, we examine how various formats of price transparency information can influence the affordability perceptions of several different healthcare procedures. We find that consumers need reference prices to interpret this information, and we show that the format in which reference prices are portrayed can significantly influence perceptions of affordability. This research has important implications for public policymakers, healthcare providers, and consumers (i.e., patients).