Buying Daily Pleasure With Daily Payments: Narrow Framing Favors Scope Insensitive Accounts

Stephen A. Atlas, Columbia University, USA
Daniel Bartels, Columbia University, USA
We propose and find that “pennies-a-day” pricing is not limited to small expenses, but instead increases willingness to purchase whenever consumers are less sensitive to marginal increases in benefits than to marginal increases in costs. We present results from a series of experiments testing the implications of this framework.
[ to cite ]:
Stephen A. Atlas and Daniel Bartels (2011) ,"Buying Daily Pleasure With Daily Payments: Narrow Framing Favors Scope Insensitive Accounts", in NA - Advances in Consumer Research Volume 39, eds. Rohini Ahluwalia, Tanya L. Chartrand, and Rebecca K. Ratner, Duluth, MN : Association for Consumer Research, Pages: 249.