Is $0 Better than Free? Consumer Response to “$0” versus “Free” Framing of a Free Promotion

Koo, Jieun; Suk, Kwanho

doi:10.1016/j.jretai.2019.11.006

Cited by 13 publications

(12 citation statements)

References 56 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…2 At the end, 12,749 exposures over the course of the study period were collected. Consumers' click-through rate (CTR, the number of clicks that an ad receives divided by the number of times the ad is shown) was calculated to reflect consumers' desire for the product (e.g., Koo & Suk, 2020). It is important to note that we did not examine actual sales because the conversion rate-the percentage of consumers who browse an online store and then buy something-is very low.…”

Section: Methodsmentioning

confidence: 99%

Avoiding through glossiness and approaching through matte: The effect of visual finish on perceived product effectiveness

Huang

Song

Yang

2022

Psychology and Marketing

View full text Add to dashboard Cite

This research examines whether, how, and why visual finish (i.e., whether a product/package is glossy or matte) can affect consumers' perceived effectiveness of problem‐solving products. Drawing on approach–avoidance goal pursuit theory, this work classifies problem‐solving products into problem‐approaching and problem‐avoiding ones according to their operation processes. A pilot study demonstrates that participants are more likely to choose a glossy finish over a matte one for a problem‐avoiding (vs. problem‐approaching) product. Studies 1 and 2 collectively find that glossy (vs. matte) finishes increase consumers' perceived effectiveness of a problem‐avoiding product while the reverse is true for a problem‐approaching product. Moreover, this effect is mediated by perceived trustworthiness of product function (Study 3). Studies 4–5 further document its consequential implications on willingness‐to‐pay (Study 4; incentive‐compatible paradigm) and consumers' actual ad clicks (Study 5; field study). The findings contribute to the visual finish, product effectiveness, and approach–avoidance goal pursuit literatures. They also have significant managerial implications on product appearance design.

show abstract

Section: Methodsmentioning

confidence: 99%

Avoiding through glossiness and approaching through matte: The effect of visual finish on perceived product effectiveness

Huang

Song

Yang

2022

Psychology and Marketing

View full text Add to dashboard Cite

show abstract

“…This master sheet would then form the basis which would be used for the analysis. From the factors that came up from the review of the literature and considering the data available, the independent variables that were initially considered for measuring the effectiveness of price promotions on the four variants of the budget toilet soap were as follows [13].…”

Section: Methodsmentioning

confidence: 99%

“…The findings of the most relevant existing literature and past research are consolidated in Table 1. Examination of purchase intentions of 189 participants with random assignment to negatively and positively framed promotions with consumers' perceived monetary benefit and involvement measured Koo and Suk (2019) Experimental field study on an online community website with a banner promoting free promotion as "$0" or "free, " measuring the actual customers CTR (click-through rate)…”

Section: Literature Reviewmentioning

confidence: 99%

Effectiveness of Consumer Promotions in Brick-and-Mortar Retail Stores

Dhwanit¹,

Verma²,

A.³

2022

View full text Add to dashboard Cite

The purpose of this study is to identify the factors that aid in the measurement of the effectiveness of consumer promotions in brick-and-mortar retail. The already highly competitive landscape of retail is set to undergo a huge transformation post the COVID-19 outbreak, which will inadvertently lead to manufacturing cutting down costs wherever possible to maintain their margins and stay afloat. Advertising spends are bound to go down, and there is a need for a statistical model to measure the effectiveness of the capital spends by a firm towards consumer promotions. For the study, national level sales data of 4 subbrands of a particular toilet soap brand (shower soap bars) was analyzed for a leading retail chain in India from January 2018 to February 2020. Regression analysis was used to do the data analysis. The study focused on price-off consumer promotions only for the designated period for four variants of a popular Indian soap brand. The discount percentage (including both promotion spend by the manufacturer as well as a retailer), the quantity of the particular unit sold on which the promotion was run during the period when the promotion was run, the effective price to consumer per gram, and profitability for the manufacturer in terms of the net contribution percentage were the factors which were found to show a strong correlation and formed the input variables for the regression equation. The regression analysis showed that all the factors, namely: overall discount percentage, quantity sold, the effective price per gram, and the net contribution (profitability), were statistically significant in determining the uplift in sales quantity due to the discount (the effectiveness of the price promotion). The equation provides retailers and manufacturers a model to measure the effectiveness of promotion spending for price promotions that are run every month at a national and state level by giving state-level values as inputs. It also helps arrive at a baseline sales quantity for a particular SKU if no price-off promotion is run.

show abstract

“…However, in the existing research, there is no unified conclusion about the comparison of the pros and cons of the two promotion methods. Based on this, many scholars have discussed the role of different adjustment factors such as discount level [3] and social distance [4] . However, further research is still needed on the influence of consumer gender on the promotion framework effect.…”

Section: Introductionmentioning

confidence: 99%

A Structural Equation Modeling Study on the Influence of Gender on Promotional Framework Effect

LV¹,

Liu²

2023

Proceedings of the 4th International Conference on Economic Management and Model Engineering, ICEMME 2022, November 18-20, 2022

View full text Add to dashboard Cite

With the rapid development of e-commerce, more and more large-scale promotional festivals have begun to appear, and the influence of promotional methods on consumer responses has also attracted more and more attention from researchers. Based on Prospect theory, this paper establishes a Structural Equation Modeling (SEM) and combines eye movement experiments to study the impact of consumer gender and promotion framework effects on consumer perceived value. The results of the research show that consumers' perceived value of loss-reducing promotion methods is significantly higher than that of profit-obtaining promotion, and there is no significant difference in the preferences of men and women for these two promotion methods. Therefore, gender does not affect consumers' choice of promotion methods. The analysis results of eye tracking data further support these conclusions. We recommend that merchants choose to reduce loss promotion as much as possible to increase consumers' perceived value and increase purchase intention, and there is no need to choose different promotion methods according to the gender of consumers.

show abstract

Is $0 Better than Free? Consumer Response to “$0” versus “Free” Framing of a Free Promotion

Cited by 13 publications

References 56 publications

Avoiding through glossiness and approaching through matte: The effect of visual finish on perceived product effectiveness

Avoiding through glossiness and approaching through matte: The effect of visual finish on perceived product effectiveness

Effectiveness of Consumer Promotions in Brick-and-Mortar Retail Stores

A Structural Equation Modeling Study on the Influence of Gender on Promotional Framework Effect

Contact Info

Product

Resources

About