• Title/Summary/Keyword: Price Framing

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The Effects of Bundle Price Discount Framing and Message Framing on Consumers' Evaluation of Bundle Component (번들가격할인 프레이밍과 메시지 프레이밍이 소비자의 번들구성제품에 대한 평가에 미치는 영향)

  • Park, Sojin
    • Asia Marketing Journal
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    • v.13 no.3
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    • pp.55-77
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    • 2011
  • This study investigate the interaction effects of bundle price discount framing and message framing on consumer's attitude of bundle component. Although each effect of bundle price discount framing and message framing has been explored individually, few attempts have been made to invest them jointly. This study tests the interaction effects of bundle price discount framing and message framing on consumer's evaluation of bundle component. Moreover, this research focuses on consumer's evaluation of individual bundle component while the existing research on bundling primarily focused on consumer's evaluation of the bundle. Prior research suggests that consumers are sensitive to the framing of prices and discounts in the presentation of the bundle offer. For example, there is considerable evidence that partitioning or consolidating the prices of a bundle can influence the attractiveness of the bundle offer. Similarly, there is evidence that an equivalent price reduction to the overall bundle, one of the individual products in the bundle, or distributed among the individual products in the bundle can alter the perceived attractiveness of the offer (e.g. Chakravarti, Krish, Paul, and Srivastava 2002; Hamilton and Srivastava 2008; Janiszewski and Cunha 2004; Johnson, Herrmann and Bauer 1999; ; Morwitz, Greenleaf, and Johnson 1998; Yadav 1994; 1995). In line with these earlier research, this research suggests that the bundle type can influence the consumer's evaluation of bundle component. There are two types of bundle - mixed-leader bundle and mixed-joint bundle. In mixed-leader bundling, the price of one of the two products is discounted when the other product is purchased at the regular price. In mixed-joint bundling, a single price is set when the two product are purchased jointly. This study supposes that the teeth whitening product is the leader product in a mixed-leader bundle. So bundle price discount framing is manipulated such as "Buy the teeth whitening product (regular price \80,000) and get 50% discount on the functional toothpaste(regular price \40,000), special set price \100,000" or "Buy the functional toothpaste and the teeth whitening product as a set and get discount for the set, special set price \60,000". Message framing is manipulated through the product claims described in an advertising bill. The positive framing presents that "Over 95% of users achieved the expected 2-3 shades of improvement in two weeks" where as the negative framing presents "less than 5% of users did not achieve the expected 2-3 shades of improvement in two weeks". This study uses hypothetical brand name of the teeth whitening product and the functional toothpaste This study is based on a 2x2 factorial design with bundle discount framing (mixed-leader bundle vs. mixed-joint bundle) and massage framing (positive vs. negative). The dependant variables are consumer's perceived quality and attitude of the teeth whitening product The data reveals that two dependant variables are correlated, so the data is analyzed with two-way MANOVA. This research explores the significant interaction effect of bundle discount framing and message framing on consumer's perceived quality and attitude of the teeth whitening product. When the message framing is positive, consumer's perceived quality and attitude of the teeth whitening product is higher in mixed-leader bundle than mixed-joint bundle condition. However, when the message framing is negative, consumer's evaluation is higher in mixed-joint bundle than mixed-leader bundle. The author explains this result by stating that consumers are less likely to use heuristics such as price-quality association and value discounting hypothesis(Raghubir 2004) in the negative message framing condition. Additionally, consumer's perceived risk of the teeth whitening product in the negative message framing condition can be more reduced by the bundle partner(e.g. the toothpaste) in mixed-joint bundle than mixed-leader bundle. Based on the results, marketing managers are advised to use different bundle type based on message framing of their product.

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The Effects of Price-Framing and Message-Framing Strategies on Consumer Attitudes: Focusing on Online Travel Products (가격 프레이밍과 메시지 프레이밍 전략이 소비자 태도에 미치는 영향: 온라인 여행상품을 중심으로)

  • Kim, Mi-Kyung;Chung, Nuree;Yang, Sung-Byung
    • The Journal of Information Systems
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    • v.26 no.3
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    • pp.119-147
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    • 2017
  • Purpose In an online e-commerce environment without face-to-face contact between the seller and the buyer, the attitudes of consumers differ greatly depending on which framing strategy is applied, even in cases when the benefits of the deals represent the same value. The purpose of this study is to explore the effects of price-framing and message-framing strategies on consumer attitudes through an experimental analysis in the context of online travel product purchasing. This study suggests a research model based on prospect theory and prior literature on price-framing and message-framing strategies. Design/methodology/approach The experiment was structured as a 2 (discount price presentation: 'Won' vs. '%') ${\times}$ 2 (discount level: low vs. high) ${\times}$ 2 (time-limit message: none vs. one) mixed design. The research hypotheses were tested in a study of 200 undergraduate and graduate students assigned randomly and distributed evenly to each of the eight cells. Findings The findings indicate that consumer attitudes become more favorable when the '%' discount, higher discount rate, and time-limit message are presented. However, no significant interaction effect is found between the discount price presentation and the discount level/time-limit message. This study has a theoretical implication in that it extends the scope of research by examining the influence of framing strategies on experience goods such as online travel products. Moreover, this study can provide managers with more specific guidelines when establishing framing strategies in the context of purchasing online travel products.

Discount Presentation Framing & Bundle Evaluation: The Effects of Consumption Benefit and Perceived Uncertainty of Quality (묶음제품 가격 할인 제시 프레이밍 효과: 지각된 소비 혜택과 품질 불확실성의 영향을 중심으로)

  • Im, Meeja
    • Asia Marketing Journal
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    • v.14 no.1
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    • pp.53-81
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    • 2012
  • Constructing attractive bundle offers depends on more than an understanding of the distribution of consumer preferences. Consumers are also sensitive to the framing of price information in a bundle offer. In classical economic theory, consumers' utility should not change as long as the total price paid stays same. However, even when total prices are identical, consumers' preferences toward a bundle product could be different depending on the format of price presentation and the locus of price discount. A weighted additive model predicts that the impact of a price discount on the overall evaluation of the bundle will be greater when the discount is assigned to the more important product in the bundle(Yadav 1995). Meanwhile, a reference dependent model asserts that it is better to assign a price discount to a tie-in component that has a negative valuation at its current offer price than to a focal product that has a positive valuation at its current offer price(Janiszewski and Cunha 2004). This paper has expanded previous research regarding price discount presentation format, investigating the reasons for mixed results of prior research and presenting new mechanisms for price discount framing effect. Prior research has hypothesized that bundling is used to sell a tie-in component with an offer price above the consumer's reference price plus a focal product of the same offer price with reference price(e.g., Janiszewski and Cunha 2004). However, this study suggests that bundling strategy can be used for increasing product's attractiveness through the synergy between components even when offer prices of bundle components are the same with reference prices. In this context, this study employed various realistic bundle sets with same price between offer price and reference price in the experiment. Hamilton and Srivastava(2008) demonstrated that when evaluating different partitions of the same total price, consumers prefer partitions in which the price of the high-benefit component is higher. This study determined that their mechanism can be applied to price discount presentation formats. This study hypothesized that price discount framing effect depends not on the negative perception of tie-in component with offer price above reference price but rather on the consumers' perceived consumption benefit in bundle product. This research also hypothesized that preference for low-benefit discount mechanism is that perceived consumption benefit reduces price sensitivity. Furthermore, this study investigated how consumers' concern for quality in a price discount--a factor not considered in previous research--influences price discount framing. Yadav(1995)'s experiment used only one magazine bundle of relatively low quality uncertainty and could not show the influence of perceived uncertainty of quality. This study assumed that as perceived uncertainty of quality increases, the price sensitivity mechanism for assigning the discount to low-benefit will increase. Further, this research investigated the moderating effect of uncertainty of quality in price discount framing. The results of the experiment showed that when evaluating different partitions of the same total price and the same amount of discounts, the partition that discounts in the price of low benefit component is preferred to the partition that decreases the price of high benefit component. This implies that price discount framing effect depends on the perceived consumption benefit. The results also demonstrated that consumers are more price sensitive to low benefit component and less price sensitive to high benefit component. Furthermore, the results showed that the influence of price discount presentation format on the evaluation of bundle product varies with the perceived uncertainty of quality in high consumption benefit. As perceived uncertainty of quality gradually increases, the preference for discounts in the price of low consumption benefit decreases. Besides, the results demonstrate that as perceived uncertainty of quality gradually increases, the effect of price sensitivity in consumption benefit also increases. This paper integrated prior research by using a new mechanism of perceived consumption benefit and moderating effect of perceived quality uncertainty, thus providing a clearer explanation for price discount framing effect.

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Price Evaluations on Tourist of Jeju Tourism Package Product: Focused on Prospect Theory (제주특별자치도 관광패키지상품 가격 평가: 전망이론을 적용하여)

  • Park, Suk-Jin;Kim, Tae-Heon
    • The Journal of the Korea Contents Association
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    • v.13 no.6
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    • pp.469-480
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    • 2013
  • This study suggests 12 products regarding the pending question of tourism package price mechanism which is linked directly and indirectly to Jeju Tourism, and shows the following conclusions through inspection in mental accounting principles and framing effect based on prospect theory. First, when presenting the price list of the tourism package, it is needed to present in price bundling. Second, it is proven that it is desirable that information about discount prices open the individual discount information of the basic package and option package to public. Third, it is discovered that experienced tourists in purchasing tourism products are more sensitive to price information (price discount) than inexperienced tourists, so that framing effect conform to Knowledge-assembly theory. The current questions of this study are that 'no discount' information should be presented in bundling, that the method of framing is important in presenting discount product information. It is required not only to grasp the viewpoint of modern people in purchasing tourism products, but also to present ready-to-serve products which can save time, effort, cost to give stability in mental accounting principles.

The Effects of Cause-Marketing Messages Delivered on Restaurant Menu (외식기업의 공익연계 메시지의 효과연구)

  • Kim, Byoung Seok;Hwang, Johye
    • Knowledge Management Research
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    • v.15 no.4
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    • pp.127-145
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    • 2014
  • This study aims to examine the effects of message framing of restaurant menus on customers' perceptions (trust and immersion) and their willingness to pay a premium price. The contents of messages focused on a hypothetical restaurant's cause-marketing activity. Four types of message framing were created: The first two types were varied by the presence and absence of the information about the current cause-marketing outcome, and the second two types were varied by positive and negative framing. The results showed that respondents in general had trust in cause-marketing messages and immersion of cause-marketing message by negative framing lead to positive influence of willingness to pay. Furthermore it had a significant effect on willingness to pay depending on cause-marketing message type and negative message framed messages showed an intention to willingness to pay a premium price. This study compared the difference in messages by type as an extension of the studies of cause-marketing messages in the past. The results of this study will be used for establishing effective marketing strategies for today's foodservice companies and serve as objective data for setting differentiated prices under the circumstance where the importance of companies' social responsibilities is growing.

The effects of sales promotion and message framing on purchase intentions: Moderating effect of time pressure (모바일 커머스 환경에서 판매촉진 형태와 메시지 프레이밍이 구매의도에 미치는 영향: 시간압박의 조절효과를 중심으로)

  • Lee, Ho-Seong;Suh, Kil-Soo;Kang, Hyun-Jeong
    • The Journal of Information Systems
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    • v.28 no.4
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    • pp.251-270
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    • 2019
  • Purpose Unlike advertising through the traditional media targeting unspecified number of people, the base of mobile environment using smartphone has expanded so that many companies can classify prospective customers according to their purpose, thereby enabling efficient targeted marketing with low cost. Design/methodology/approach This study has investigated how can marketing strategy be influenced by the price promotion type (immediate discount/delayed discount) and message framing (positive/negative) according to time pressure (low/high). Hypotheses are set through the consideration of prospect theory, endowment effect, framing effect, regulatory-focus theory, and time-pressure theory. Findings The results and interpretation of this study are as follows. First, it was found that the influence of the delayed discount on the purchase intention was larger than the immediate discount. Second, negative/loss frame messages have more influence on purchase intention than positive/profit frame messages. Third, when the price promotion type is delayed discount, the effect of the promotion message on the purchase intention when it presented by negative/loss frame is greater than the other cases. The implication of this study is that it can be used as a basic data for establishing a strategy to maximize the effectiveness of promotions effectively considering potential buyers of mobile commerce environment.

Framing Trend and Style Information in Magazine

  • Kwon, Yoo Jin
    • Journal of the Korean Society of Clothing and Textiles
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    • v.37 no.4
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    • pp.491-505
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    • 2013
  • This study applies framing theory to the presentation of trend or styling information in fashion journalism. A qualitative content analysis was conducted with three lifestyle magazines. The findings include attribute, attitude, and source-based frames. The attribute-based frame was used to increase the versatility and feasibility of design by emphasizing particular attributes of clothes. To increase versatility, an item could be presented either as a basic or trendy design. To increase feasibility, fashion information could be customized by price points (i.e., affordable frame) or body type (i.e., flattering frame). The attitude-based frame includes prescriptive and rule-breaking frames. The source-based frame offers a source of trend or styling information. Expert, celebrity, and consumer frame emerged under the source-based frame. Findings reveal how fashion and style information is defined and crafted.

Are Business Cycles in the Fashion Industry Affected by the News? -An ARIMAX Time Series Correlation Analysis between the KOSPI Index for Textile & Wearing Apparel and Media Agendas- (패션산업의 경기변동은 뉴스의 영향을 받는가? -섬유의복 KOSPI와 미디어 의제의 ARIMAX 시계열 상관관계 분석-)

  • Hyojung Kim;Minjung Park
    • Journal of the Korean Society of Clothing and Textiles
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    • v.47 no.5
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    • pp.779-803
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    • 2023
  • The growth of digital news media and the stock price index has resulted in economic fluctuations in the fashion industry. This study examines the impact of fashion industry news and macroeconomic changes on the Textile & Wearing Apparel KOSPI over the past five years. An auto-regressive integrated moving average exogenous time series model was conducted using the fashion industry stock market index, the news topic index, and macro-economic indicators. The results indicated the topics of "Cosmetic business expansion" and "Digital innovation" impacted the Textile & Wearing Apparel KOSPI after one week, and the topics of "Pop-up store," "Entry into the Chinese fashion market," and "Fashion week and trade show" affected it after two weeks. Moreover, the topics of "Cosmetic business expansion" and "Entry into the Chinese fashion market" were statistically significant in the macroeconomic environment. Regarding the effect relation of Textile & Wearing Apparel KOSPI, "Cosmetic business expansion," "Entry into the Chinese fashion market," and consumer price fluctuation showed negative effects, while the private consumption change rate, producer price fluctuation, and unemployment change rate had positive effects. This study analyzes the impact of media framing on fashion industry business cycles and provides practical insights into managing stock market risk for fashion companies.

The Effects of Price Salience on Consumer Perception and Purchase Intentions (개격현저대소비자감지화구매의도적영향(价格显著对消费者感知和购买意图的影响))

  • Martin-Consuegea, David;Millan, Angel;Diaz, Estrella;Ko, Eun-Ju
    • Journal of Global Scholars of Marketing Science
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    • v.20 no.2
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    • pp.149-163
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    • 2010
  • Previous studies have shown that retail price promotion change consumers' purchase behavior and that retailers use price promotion more frequently. Keeping constant the benefits received by consumers, there are several ways for retailers to communicate a price promotion. For example, retailers can present a price reduction in absolute terms ($, ${\euro}$), percentage terms (%), or some combinations of these two methods (Della Bitta et al. 1981). Communicating a price promotion in different ways is similar to the framing of purchase decisions (Monroe 1990). Framing effects refers to the finding that subjects respond differently to different descriptions of the same decision question (Frisch 1993). Thus, the presentation of the promotion has an impact on consumer deal evaluation and hence retail sales. In fact, much research in marketing attests to the effects of price presentation on deal perception (Lichtenstein and Bearden 1989; Urbany et al. 1988; Yadav and Monroe 1993). In this sense, a number of marketing researches have argued that deal perceptions are also determined by the degree to which consumers are able to calculate the discounts and final purchase prices accurately (Estelami 2003a; Morwitz et al. 1998), which suggests that marketers may be able to enhance responses to discounts by improving calculation accuracy. Consequently, since calculation inaccuracies in the aggregate lead to the underestimation of discounts (Kim and Kramer 2006), consumers are more likely to appreciate a discounted offer following deeper processing of price information that enables them to evaluate a price discount more accurately. The purpose of this research is to examine the effect of different presentations of discount prices on consumer price perceptions. To be more precise, the purpose of this study is to investigate how different implementations of the same price promotion (semantic and visual salience) affect consumers' perceptions of the promotion and their purchase decisions. Specifically, the analysis will focus on the effect of price presentation on evaluation, purchase intentions and perception of savings. In order to verify the hypotheses proposed in the research, this paper will present an experimental analysis dealing with several discount presentations. In this sense, a2 (Numerical salience presentation: absolute and relative) x2 (Worded salience presentation: novel and traditional) x2 (Visual salience: red and blue) design was employed to investigate the effects of discount presentation on three dependent variables: evaluation, purchase intentions and perception of savings. Respondents were exposed to a hypothetical advertisement that they had to evaluate and were informed of the offer conditions. Once the sample finished evaluating the advertisement, they answered a questionnaire related to price salience and dependent dimensions. Then, manipulation checks were conducted to ensure that respondents remembered their treatment conditions. Next, a $2{\times}2{\times}2$ MANOVA and follow-up univariate tests were conducted to verify the research hypotheses suggested and to examine the effects of the individual factors (price salience) on evaluation, purchase intentions and perceived savings. The results of this research show that semantic and visual salience presentations have significant main effects and interactions on evaluation, purchase intentions and perception of savings. Significant numerical salience interactions affected evaluation and purchase intentions. Additionally, a significant worded salience main effect on perception of savings and interactions on evaluation and purchase intentions were found. Finally, visual salience interactions have significant effects on evaluation. The main findings of this research suggest practical implications that firms should consider when planning promotion-based discounts to attract consumer attention. Consequently, because price presentation has important effects on consumer perception, retailers should consider which effect is wanted in order to design an effective discount presentaion. Specifically, retailers should present discounts with a traditional style that facilitates final price calculation. It is thus important to investigate ways in which marketers can enhance the accuracy of consumers' mental arithmetic to improve responses to price discounts. This preliminary study on the effect of price presentation on consumer perception and purchase intentions opens the line of research for further research. The results obtained in this research may have been determined by a number of limiting conceptual and methodological factors. In this sense, the research deals with a variety of discount presentations as well as with their effects; however, the analysis could include additional salience dimensions and effects on consumers. Furthermore, a similar study could be carried out including a larger, more inclusive and heterogeneous sample of consumers. In addition, the experiment did not require sample individuals to actually buy the product, so it is advisable to compare the effects obtained in the research with real consumer behavior and perception.

Impact of Image Type and Brand Familiarity on the Effectiveness of Bundling

  • Sungmi Lee
    • International Journal of Internet, Broadcasting and Communication
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    • v.15 no.4
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    • pp.100-106
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    • 2023
  • Bundling has become a general promotion strategy in mobile shopping context. Previous research on bundling has mostly focused on bundle frame or price frame. Even though consumers are searching and purchasing the product in mobile channels, little research has investigated the effects of bundling in mobile shopping. The objectives of this study is to examine how different product image of bundle affects consumer's perception and purchase intention differently, and how brand familiarity moderate this influence. A sample of 140 subjects participated in a within-subjects experiment. A bundling composed of two different product image (a single product vs. bundled products) was evaluated by individuals. Brand familiarity (familiar brand vs. unfamiliar brand) were manipulated to test a set of hypotheses. We found that the effectiveness of bundling does not depend on the type of product image and brand familiarity. The findings of our study provide some implications for researchers and marketers. Although there have been studies on the effects of bundle framing on consumer behavior, we suggest new insights regarding bundling based on product image and mobile shopping context.