Absolute number heuristic in discount frames

Wang, Bo

doi:10.1108/mip-03-2022-0113

Cited by 3 publications

(5 citation statements)

References 29 publications

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“…Pricing is a key variable in consumer decision-making. Hence, pricing continues to be a topic of interest and researchers have recently inquired into many aspects of consumer evaluations of prices, ranging from the impact of reference prices (Yin-Hui et al ., 2023; Biswas et al ., 2013; Srivastava et al ., 2022; Soni et al ., 2023) to framing effects in price promotions (Wang, 2022a, b). Discounts are one of the most popular strategies that retailers employ to stimulate demand and multiunit discounts are a big portion of in-store promotions (Manning and Sprott, 2007).…”

Section: Discussionmentioning

confidence: 99%

“…Economically equivalent promotions are perceived differently depending on how they are framed. Such framing effects with price promotions have been repeatedly demonstrated in extant literature (Weisstein et al ., 2013; DelVecchio et al ., 2007; Arora, 2008; McKechnie et al ., 2012; Janiszewski and Cunha, 2004; Khan and Dhar, 2010; Sinha and Smith, 2000; Liu and Chou, 2015; Wang, 2022a, b). While an exhaustive review of framing effects is beyond the scope of this article, it is logical to argue that the promotional frames that we are considering (“Buy X Get X Free” and “Single Discount”) are likely to impact transaction value.…”

Section: Theory Developmentmentioning

confidence: 99%

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Are “buy X get X free” price promotions effective? An acquisition-transaction value perspective

Bhatt

Pai

2023

MIP

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Purpose“Buy X Get X Free” promotions are popular across retail settings. Retailers promote a variety of products using this promotional frame. However, past research contains mixed findings about the effectiveness of this promotion compared to the straightforward discount on a single unit of a product. The goal of this research is to employ a theoretical lens to examine the effectiveness of “Buy X Get X Free” promotions.Design/methodology/approachThe theoretical framework was tested in two experiments using different products and samples. The data collected from each experiment were analyzed using both descriptive and inferential techniques to assess support for the theoretical arguments.FindingsFindings reveal that at identical levels of per-unit discount, the “Buy X Get X Free” promotion is perceived less favorably by consumers than a straightforward single-unit discount. Consumers perceive lower transaction value and acquisition value and, thereby, a lower purchase intention, from the “Buy X Get X Free” promotion compared to a single-unit discount.Practical implicationsThis research was conducted keeping in mind the popularity of the “Buy X Get X Free” promotion in the real world. The findings caution retailers against indiscriminately using this promotional frame.Originality/valueUsing a theoretical lens, this research proposes and validates a framework to systematically examine consumers' perceptions of the two popular discount frames. The proposed theoretical framework provides a richer understanding of the underlying consumer psychology that drives the evaluation of these promotions. Further, primary data from lab experiments validates the framework. The research also helps advance the understanding of consumer evaluation of sales promotions in general.

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Section: Discussionmentioning

confidence: 99%

Section: Theory Developmentmentioning

confidence: 99%

Are “buy X get X free” price promotions effective? An acquisition-transaction value perspective

Bhatt

Pai

2023

MIP

View full text Add to dashboard Cite

show abstract

“…Furthermore, by setting product type as a between-subjects factor, we were in a better position to reduce the possibility of participants' understanding the purpose with regard to the moderation of product type (Viglia et al, 2021). The design was based prior studies such as those by Wang (2022) and Gonz alez et al (2016). The methodology is appropriate for the current study for two reasons.…”

Section: Effect Of Discount Frame On Consumer Responsesmentioning

confidence: 99%

“…The methodology is appropriate for the current study for two reasons. First, the research questions examined here are closely related to the studies by Wang (2022) and Gonz alez et al (2016). Second, we were interested in exploring the interactions between discount frame and psychological distance.…”

Section: Effect Of Discount Frame On Consumer Responsesmentioning

confidence: 99%

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Effect of discount frame on consumer responses: moderation of psychological distance and product nature

Wang

Xie

2023

MIP

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PurposeAccording to construal level theory, close (versus far) psychological distance is associated with low (versus high) construal level. Despite the evidence for discount frame effect, it is unclear whether psychological distance and product nature play moderating roles. In addition, little has been known whether the effect of discount frame can extend to other dependent variables such as willingness to pay (WTP). Driven by construal level theory, five experiments were conducted to explore whether the effect of discount frame is dependent on psychological distance and product nature (i.e. utilitarian versus hedonic product).Design/methodology/approachThe experimental method was used, with discount frame, psychological distance and product type as the independent variables and purchase intention, attitude towards the advertisement, perceived value and WTP as the dependent variables. Participants were presented with promotion scenarios in which psychological distance and discount format were manipulated. In order to test the generalizability of results, promotional scenarios for both utilitarian (i.e. backpack bag and shampoo) and hedonic products (i.e. scenery ticket and perfume) were presented. Data were collected via the online experiment platform (i.e. www.Credamo.com).FindingsThe authors found an interaction between discount frame and spatial distance in that consumers had more positive attitude toward percent off than amount off under near-spatial distance. However, no interaction was observed between discount frame and temporal, social or hypothetical distance.Originality/valueTaken together, the current study for the first time reveals that the effect of discount frame is contingent on a specific dimension of psychological distance (i.e. spatial distance), regardless of whether the product is utilitarian or hedonic. Findings from this study for the first time pose a challenge to the notion that construal-level match necessarily leads to more favorable consumer responses, suggesting that there may be a unique mechanism underlying the joint effects of spatial distance and discount frame. The current findings can provide important implications for marketers and retailers in an effort to design effective promotional messages.

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Predicting households’ attitudes and product adoption intentions

Kumar,

Ahlawat,

Yadav

et al. 2024

MIP

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PurposeThe present study aims to examine the households’ attitudes and intentions to adopt an indoor air purifier against the smog crisis in India by using a comprehensive theoretical framework based on the combination of the Protective Action Decision Model (PADM) and the Theory of Planned Behavior (TPB). The United Nations Sustainable Development Goals (SDGs) 2030 also emphasized ensuring a healthy and safe life, especially by achieving SDG-3, SDG-11 and SDG-13.Design/methodology/approachUsing purposive sampling, the data were collected through a survey questionnaire distributed to 382 households, and study hypotheses were assessed by using partial least squares structural equation modeling employing SmartPLS.FindingsThe results revealed that mental health risk perception (MHRP) was the most influential determinant of households’ attitudes toward adopting air purifiers, followed by smog knowledge, physical health risk perception (PHRP), information seeking and product knowledge. Notably, results revealed that households’ attitude is a leading determinant of their adoption intention toward the air purifier compared to subjective norms (SN) and perceived behavioral control (PBC).Originality/valueTo the best of the authors’ knowledge, the present study is the first to provide new insights into an individual’s protective behavior response toward ecological hazards by examining the households’ adoption intention toward the air purifier against the smog crisis using PADM and TPB model inclusively. In addition, the present study analyzes the impact of both PHRP and MHRP on individuals’ protective behavior separately. Also, this study provides theoretical contributions and important practical implications for the government, manufacturers and air purifier sellers.

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Absolute number heuristic in discount frames

Cited by 3 publications

References 29 publications

Are “buy X get X free” price promotions effective? An acquisition-transaction value perspective

Are “buy X get X free” price promotions effective? An acquisition-transaction value perspective

Effect of discount frame on consumer responses: moderation of psychological distance and product nature

Predicting households’ attitudes and product adoption intentions

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