Price Discount Framing: How it Can Increase the Purchase Intention?

Abstract

The high level of competition makes companies compete to retain and win the market competition, one of the strategies are granting price discounts. This was an experimental study that aims to analyze the differences between males and females' intention for online purchase by given the price discount framing conditions, namely percentage saving and absolute saving. The participants in this study were 80 participants. This study was an experimental study since it involved the symptoms had to be investigated. The design of the study was a 2X2 factorial design. A case questionnaire was used for the data collection. The data were analyzed by using 2-ways ANOVA statistical analysis. The study reveals that (1) there is a difference in online purchase intention between those given the percentage saving condition and those given the absolute saving condition, (2) there is a difference in purchase intention between males and females. The consumers have different assumptions about the two types of discount framing even though they both have the same meaning. This should be a concern for retailers in providing sales promotions, especially for discounts because based on the results of this study it is found that discount framing with absolute savings had a slightly stronger effect on purchase intention than percentage saving.

Buying Behavior in Online Food Delivery Applications During the Covid-19 Pandemic

“…According to Shakti and Zuliarni (2019) framing is one way used by companies to attract as many consumers as possible without intending to lie. All kinds of framed information can affect a person's perception of decision making (Frisch, 1993 andPasek andKasih, 2021). Pasek and Kasih (2021) explain that there is a close relationship between framing and reference points.…”

“…The concept of framing is part of Prospect Theory Tversky, 1979, 1974) which can support promotional activities and as one of the most influential decision-making theories (Taran and Betts, 2007). Consumers can be influenced in purchasing decisions through price framing, meaning that price promotion messages are framed in an offer (McKechnie et al, 2012 andPasek andKasih, 2021). The promotion of framed prices aims to facilitate consumers who like products at lower prices (Pasek and Kasih, 2021).…”

“…Consumers can be influenced in purchasing decisions through price framing, meaning that price promotion messages are framed in an offer (McKechnie et al, 2012 andPasek andKasih, 2021). The promotion of framed prices aims to facilitate consumers who like products at lower prices (Pasek and Kasih, 2021). Currently, discounts framing is also being carried out by online food delivery applications.…”

“…Consumer purchasing decisions also need to be understood by online food delivery application companies in terms of consumer purchase intentions and the determinants of actual behavior (Agmeka et al, 2019). A person's intention to take or not to take any action is a direct determinant of the real action taken by a person (Pasek and Kasih, 2021). The relationship is based on the fact that humans always try to make rational decisions based on the information available to them (Pasek and Kasih, 2021), and the new system is no exception.…”

“…A person's intention to take or not to take any action is a direct determinant of the real action taken by a person (Pasek and Kasih, 2021). The relationship is based on the fact that humans always try to make rational decisions based on the information available to them (Pasek and Kasih, 2021), and the new system is no exception. The Theory of Reasoned Action is the most influential theory to explain and predict user acceptance of the new system (Patsiotis et al, 2020).…”