It’s the same thing with any “menu” vs actual price.
Airline baggage fees are probably the prototypical case for this. Airlines that did not display the lowest price during flight searches got outcompeted by those that did. This led the entire industry to change since it took an entire decade long marketing campaign centered around it (Southwest) to try to stay even.
Consumers make irrational choices all the time, and this is one of them. They absolutely notice the final bill and complain while continuing to patronize businesses that engage in such behavior.
Consumers would need to reward honest pricing if they wanted this to change. Or vote for regulation.
Airline baggage fees are probably the prototypical case for this. Airlines that did not display the lowest price during flight searches got outcompeted by those that did. This led the entire industry to change since it took an entire decade long marketing campaign centered around it (Southwest) to try to stay even.
Consumers make irrational choices all the time, and this is one of them. They absolutely notice the final bill and complain while continuing to patronize businesses that engage in such behavior.
Consumers would need to reward honest pricing if they wanted this to change. Or vote for regulation.