The Price of ‘Free’-Dom: Consumer Sensitivity to Promotions With Negative Contexual Influences
The Price of ‘Free’-dom:
Consumer Sensitivity to Promotions with Negative Contextual Influences
SUCHARITA CHANDRAN, Boston University
VICKI G. MORWITZ, New York University
ABSTRACT
Past research has shown that monetary promotions (e.g. discounts) are more likely to be processed relative to and integrated with the original product price than free promotions. We posit that because of this difference, free promotions are more focal and salient than monetary promotions. In a set of four experiments, we demonstrate that this salience results in free promotions being less susceptible than equivalent monetary discounts to negative contextual information on quality that can potentially lower purchase intentions. We show that this effect can be reversed when respondents focus on other pieces of information that diminish the salience of the free promotion.Citation:
Sucharita Chandran and Vicki Morwitz (2006) ,"The Price of ‘Free’-Dom: Consumer Sensitivity to Promotions With Negative Contexual Influences ", in NA - Advances in Consumer Research Volume 33, eds. Connie Pechmann and Linda Price, Duluth, MN : Association for Consumer Research, Pages: 250-250.
Authors
Sucharita Chandran, Boston University
Vicki Morwitz, New York University
Volume
NA - Advances in Consumer Research Volume 33 | 2006
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