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1 – 10 of over 28000The purpose of this paper is to investigate the effectiveness of price bundling and message framing on attitudes, intentions, and beliefs about attributes of teeth…
Abstract
Purpose
The purpose of this paper is to investigate the effectiveness of price bundling and message framing on attitudes, intentions, and beliefs about attributes of teeth whitening products. Although each of these variables, message framing and price bundling, has been explored individually, few attempts have been made to investigate them jointly. This study is based on a full factorial design that allows for testing of interaction effects. Second, the market for whitening products is maturing, resulting in a target market that is gaining knowledge about these products. Thus, we use knowledge as a covariate in the above investigation to determine if the communication strategy should be changed as the product moves from introduction to maturity.
Design/methodology/approach
The study is based on a 2 × 2 factorial design with price bundling (bundle price – individual price) and framing (positive – negative). The setting for the study is a hypothetical brand name of teeth whitening products.
Findings
The results reveal a mixed picture with respect to effectiveness of pricing and framing on attitudes and intentions. The effect of price bundling is not significant on attitudes; it is significant on intentions. Framing has a greater impact on intentions than on attitudes. Nevertheless, the interaction effects are significant on both attitudes as well as intentions. Finally, the impact of knowledge as a covariate is significant.
Research limitations/implications
Caution is advised in extrapolating the results beyond the issues investigated in the study.
Practical implications
The findings help marketers in formulating effective marketing strategy using both price bundling and message framing strategies.
Originality/value
Although price bundling and message framing have been explored in marketing studies, the research is lacking on the combined effects of these two important variables. The findings show a significant interaction effect of pricing and framing on changing attitudes and intentions. Prior research recommends using negative framing. The present research shows that for bundle products, a positive framing approach is desirable.
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Price deals are typically presented in “save” terms. However, prospect theory predicts that people will be more willing to waive a monetary gain than to lose the same…
Abstract
Purpose
Price deals are typically presented in “save” terms. However, prospect theory predicts that people will be more willing to waive a monetary gain than to lose the same amount of money. This study seeks to examine whether consumers would show more purchase intentions of a product offered in a price deal framed negatively (“lose if you don't purchase”) relative to the conventional positive frame (“save if you purchase”).
Design/methodology/approach
The purchase intentions of 189 participants, randomly assigned to either a positively or a negatively framed message, were examined. The participants' perceived monetary gain in the deal and their involvement in the issue were also measured.
Findings
Presented with a negative relative to positive frame, participants showed more purchase intentions of a product offered in a price deal, and perceived their monetary gain as higher. Highly involved and lowly involved participants exhibited similar framing effects.
Research limitations/implications
The findings regarding lowly involved participants are inconsistent with previous findings. Future research is needed to clarify whether the message framing effect interacts with involvement in predicting purchase intentions of a product offered in a price deal.
Practical implications
The theoretical explanation of the phenomenon presented in this study predicts that negative framing of messages will also be more effective in other consumer behaviour contexts.
Originality/value
This study is the first empirical demonstration of the effect of message framing on the effectiveness of price deal offers, suggesting that retailers should re‐examine their conventional presentation of price deal offers in terms of gains, and consider rephrasing them in terms of loss.
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Erica Mina Okada and Eric L. Mais
Many market examples show that consumers are willing to pay a premium for “green” products and services. The purpose of this paper is to gain some insight into how…
Abstract
Purpose
Many market examples show that consumers are willing to pay a premium for “green” products and services. The purpose of this paper is to gain some insight into how consumers respond to green alternatives, and examine how managers can best position their green products to maximize the premium consumers are willing to pay.
Design/methodology/approach
A series of behavioral experiments was conducted to demonstrate how the green product's characteristics are framed significantly affects the size of the “green premium” consumers are willing to pay.
Findings
The results show that positive framing (focusing on the advantages of the green product) works best for environmentally conscious consumers while negative framing (focusing on avoiding the disadvantages of the non‐green product) works best for less environmentally conscious consumers. Additionally, subtractive price framing which focuses on the discount consumers would pay for the non‐green product alternative results in a higher green premium than additive price framing which focuses on the additional price consumers would pay for the green choice, and especially so for less environmentally conscious consumers.
Research limitations/implications
Overall, the results suggest that green firms can maximize the green‐pricing premium by careful targeting of consumers and framing their products appropriately.
Originality/value
This paper explores how the difference between the green versus non‐green alternative can be framed in different ways, and interact with the consumer's level of environmental consciousness, to influence the “green premium,”, i.e. how much more consumers are willing to pay for the green alternative relative to a comparable non‐green alternative.
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Philip Gendall, Janet Hoek, Tracy Pope and Karen Young
The purpose of this paper is to report the results of two experiments designed to examine the effect on consumers of the way in which price discount messages are…
Abstract
Purpose
The purpose of this paper is to report the results of two experiments designed to examine the effect on consumers of the way in which price discount messages are expressed, or “framed”.
Design/methodology/approach
Both studies involved stated‐preference choice modelling experiments. The aim of the first experiment was to test the hypothesis that a price reduction framed in dollar terms is more effective for high‐priced items, whereas a price reduction framed as a percent discount is more effective for lower‐priced items. The aim of the second experiment was to determine which of four alternative ways of expressing the same 33 per cent price discount – cents off, percent discount, or one of two volume discounts – is most effective.
Findings
For two “low‐priced” items, potato chips and cola drinks, the framing of a price discount had little or no effect. However, for two ”high‐priced” items, stereos and computers, framing a discount in dollar terms was significantly more effective than expressing it as a percent off discount. For three fast moving consumer goods the most effective framing of the same price discount depended on whether the product concerned was amenable to stockpiling. For tinned spaghetti, which is relatively cheap and easy to store, volume discounting was more attractive than a monetary discount, whereas for bottled water and semi‐soft butter, which are more expensive and bulkier, the opposite was true.
Originality/value
For high‐priced products, it is better to express price discounts as dollars or cents off than as a percentage off; the opposite may be true for low‐priced products, but this is much less certain. However, if using a volume promotion, “buy x get one free” is likely to be more effective than “y for the price of x”.
Sally McKechnie, James Devlin, Christine Ennew and Andrew Smith
The objective of this paper is to examine the framing effects of discount presentation format in comparative price advertising in a low‐price and a high‐price product…
Abstract
Purpose
The objective of this paper is to examine the framing effects of discount presentation format in comparative price advertising in a low‐price and a high‐price product context. In particular, the authors study whether identical discounts presented in percentage and absolute terms result in different consumer perceptions of transaction value and purchase intention. Although price promotions have been the subject of previous research, a closer examination of the potential moderating influence of discount size in both contexts is warranted.
Design/methodology/approach
Two separate experiments were designed to isolate the effects of the manner in which discounts are numerically expressed and the size of the discount on consumers' perceptions of a retail price promotion in a low‐price and a high‐price product context.
Findings
The effects of discount framing in comparative price promotions are found to be influenced by discount size in the case of the low‐product context but not the high‐price one.
Research limitations/implications
It is recommended that the study be replicated for other types of low‐price and high‐price products to confirm the generalisability of the results for each product context.
Practical implications
Retail managers' choice of discount presentation format for both low‐ and high‐price product contexts, and in the case of the former the additional manipulation of discount size, have an impact on the ability of comparative price promotions to accelerate purchases. Meanwhile policy makers should continue to assign significant time and resources to investigating concerns about misleading price comparison based promotions.
Originality/value
The paper provides original insights into the importance of considering the joint effects of discount presentation format and discount size on consumers' perceptual and behavioural responses to retail price promotions, unlike previous research, which has examined these framing effects separately.
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Eyal Gamliel, Ram Herstein, José Luís Abrantes, Tahir Albayrak and Meltem Caber
Consumers frequently find themselves having to choose between various product brands that differ in price and quality. The purpose of this paper is to examine several…
Abstract
Purpose
Consumers frequently find themselves having to choose between various product brands that differ in price and quality. The purpose of this paper is to examine several possible factors that may affect this choice: message framing of the choice as either gain or loss of money or quality, consumer involvement, and consumers’ perceived monetary and quality gains.
Design/methodology/approach
In all, 837 participants from Portugal, Turkey, and Israel were randomly assigned to a positively or negatively framed message regarding the quality or price of two alternative brands of sunscreen lotion.
Findings
As expected, highly involved consumers show a higher preference for the better and more expensive product than less involved consumers, while perceived monetary or quality gains mediates this relation. Challenging previous findings, negative framing of loss avoidance affects perceived gains and brand choice more than positive framing only for less involved participants, rather than for highly involved ones.
Research limitations/implications
Although the results were replicated in three different countries, future research of message framing context on other products is needed, as well as research in the context of goal framing.
Practical implications
If indeed future research would replicate the higher effectiveness of positive framing among highly involved consumers, retailers should consider that in planning their product promotion strategy.
Originality/value
This study challenges the current literature regarding the effect of message framing on message and the moderating role of involvement.
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This paper aims to examine how incentive framing format and language congruency interactively influence readers’ post-reading responses to hotel-related email advertisements.
Abstract
Purpose
This paper aims to examine how incentive framing format and language congruency interactively influence readers’ post-reading responses to hotel-related email advertisements.
Design/methodology/approach
A 2 (incentive framing format: amount-off versus percentage-off) × 2 (language congruency: use of readers’ native language versus use of readers’ foreign language) between-subject experiment was conducted with 233 bilingual speakers from China.
Findings
The findings unveil that readers are more likely to be enticed to search for more information about the promoted hotel restaurant, click the call-to-action button and share the promotional message with friends and families if an email advertisement presents the incentive of a price promotion in the form of amount-off (versus percentage-off). The indirect impact of language congruency is also verified. Specifically, the impact of incentive framing format on readers’ post-reading response is more salient when information is communicated using readers’ native (versus non-native) language.
Practical implications
The findings provide actionable clues for hoteliers to optimize their email marketing campaigns. If hotels want to publicize a price promotion for their high-priced service (e.g. hotel restaurant dining) via email advertisements, marketers should present the incentive in the form of amount-off. Hotels should also personalize the language used in the email advertisements according to readers’ native language.
Originality/value
This study enriches the literature on email marketing by explicating how hoteliers can improve the efficacy of email marketing via personalizing the incentive framing format and language used in the email advertisement according to the readers’ preferences.
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Fei Lee Weisstein, Mohammadreza Asgari and Shir-Way Siew
This paper aims to examine the effect of price promotion presentation formats on consumers’ green purchase intentions across various levels of greenness. Despite the…
Abstract
Purpose
This paper aims to examine the effect of price promotion presentation formats on consumers’ green purchase intentions across various levels of greenness. Despite the increasing awareness of environmental issues and green products among consumers, there is a gap between their green attitude and purchase intentions. Previous studies show that consumers’ degree of greenness varies and that price plays an important role in their green consumption decision-making.
Design/methodology/approach
Two between-subject experiments with 236 participants were used to examine our hypotheses and conceptual model.
Findings
The results show that different formats of price promotion presentations influence consumers’ purchase perceptions differently. Consumers with a high degree of greenness are attracted to promotions emphasizing gain, while those with a low degree of greenness prefer promotions underlining reduced loss. In addition, medium-greenness consumers show similar reactions to both formats. Our studies further demonstrate that consumers’ perceived value mediates the moderated effects of perceived quality and perceived savings on green purchase intentions.
Practical implications
This research helps marketers better design price promotions, taking into account the various levels of consumers’ greenness. The focus of reduced loss or gain of the promotional programs should be targeted at consumers with different levels of greenness.
Originality/value
This is the first paper to examine the role of price promotion presentation formats in consumer decision-making regarding green consumption. The study provides new insights concerning how to design price promotions to enhance the green purchase intentions of consumers.
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Ashutosh Dixit, Kenneth D. Hall and Sujay Dutta
The purpose of this paper is to investigate the influence of price attribute framing and factors such as urgency and perceived price fairness on customer willingness to…
Abstract
Purpose
The purpose of this paper is to investigate the influence of price attribute framing and factors such as urgency and perceived price fairness on customer willingness to pay (WTP) in automated retail settings.
Design/methodology/approach
The authors conducted two sets of quasi-experimental scenarios surrounding vending-machine purchase decisions. The first set was analyzed with MANOVA, the second set with choice-based conjoint (CBC) analysis.
Findings
When prices are framed positively (as a discount), customer WTP is higher at high published price levels than it is for unframed or negatively framed prices. The effect on WTP holds whether the reference price range is broad (few large increments) or narrow (numerous small increments). In the CBC scenarios, immediate availability of the product was most influential on choice, followed by price and brand effects. These findings held under conditions invoking both urgency and price fairness. Providing an explanation for higher prices increases perceived price fairness.
Research limitations/implications
Further study might assess the presence or absence of interaction effects in the conjoint scenarios.
Practical implications
Managers should consider transparency in dynamic pricing, particularly when the price change is outside the control of the firm. The conjoint scenario results also offer evidence that dynamic pricing will not impact other marketing-mix decisions for fast-moving consumer goods (FMCG) dramatically (availability at point of purchase and presence in the consumer consideration set remain strong influences on choice).
Social implications
Understanding these effects on WTP could help managers manage perceptions of unfairness and optimize WTP.
Originality/value
A theoretical contribution from this study is that the immediate loss/gain consideration under theories of decision making under uncertainty outweigh considerations such as scarcity urgency or perceived unfairness. Use of conjoint analysis in WTP research, study of dynamic pricing in FMCG setting.
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Nancy Stanforth and William Hauck
The purpose of this paper is to investigate one of the potential cues that may influence the price consumers are willing to pay for products. This paper seeks to…
Abstract
Purpose
The purpose of this paper is to investigate one of the potential cues that may influence the price consumers are willing to pay for products. This paper seeks to investigate the use of ethically framed marketing efforts in influencing price perceptions among consumers of health and beauty products
Design/methodology/approach
The exploratory online experiment was completed in two parts: the first with 84 participants and the second with 61 participants.
Findings
Results show that consumers expect prices to be much higher when the product is produced under ethical conditions but they are willing to pay only slightly more for ethically produced products.
Research limitations/implications
The participants were a convenience sample and thus the results are not generalizable. While being socially responsible is an end in itself, consumers may not allow the firms to increase prices to cover the increased costs of production. It is not apparent that consumers fully expect to share in the cost of a social responsible global economy.
Originality/value
The study offers insight into the difficulty firms have in producing products in an ethical manner and passing those costs to their customers. Considering the global financial conditions in 2008/2009, it may be even more difficult for firms to maintain ethical production methods.