Product Pricing and Framing: When Are We Likely to Pay More?

Sep 30, 2011 · Now when you go to the shop, you have three options. You can spend $80, $120, or $475. Rationally speaking, adding an irrelevant option should not change your decision between the $80 and the $120 ...

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Product Pricing And Framing: When Are We Likely To Pay More?

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FAQs about Product Pricing and Framing: When Are We Likely to Pay More? Coupon?

What is price framing?

Price framing is the marketing technique of presenting prices and products in the most optimal way. (The passage further discusses the psychology and implications of price framing.) ...

How effective is price framing?

This price framing effect is robust to displaying the total cost of the purchase, bad deals, and easy-to-compute price differences, and it appears to be uniquely effective in pricing contexts. However, DPF effects are reduced among consumers who adopt a slow and effortful decision process. ...

Does price framing affect repurchase intentions?

Given a price discrepancy between two consumers’ transactions for the same product from the same seller, price framing, compared to no framing tactic, will induce price-disadvantaged consumers to perceive higher transaction dissimilarity, perceived price fairness, trust, and repurchase intentions. ...

Does price framing affect price fairness?

When perceived transaction dissimilarity was removed from the model, the direct effect of price framing on price fairness significantly increased, indicating partial mediation, consistent with the Sobel test. ...

Does price promotion framing influence buyer perceptions?

Research suggests that price promotion framing may positively influence buyers’ perceptions of deal savings, transaction values, and purchase decisions (Chen et al. 1998; Darke and Chung 2005). The effect of framing is often influenced by the extent of effort necessary to integrate the promotional benefits with price information. ...

What is price promotion framing?

Offering a free gift with a purchase is another common type of price promotion framing (Krishna et al. 2002). When a promotion is offered in monetary units (e.g., a discount), consumers may frame it as a reduced loss, since it is in the same metric as the product price. ...