The Effect of Promotion Framing on the Evaluation of Price Bundling

This research examines the differential effects of three types of promotional frames applied to bundles of identical or different products. In contrast to most framing research, this study uses mental accounting theory (Thaler, 1985) to analyze how consumers code different promotional frames. Further, the internal reference price (IRP) variations of focal and tie-in products were also observed to verify consumers’ “mental accounts.” Results showed that when bundles offer similar products, only “buy one, get one free” increases the IRP of focal product and code two mental accounts. Whether “buy one and get the second for only $1” decreases or increases the IRP of the focal product depends on whether it is bundled with the same or different components. Finally, for “buy two, get 50% off,” bundles’ IRP decreases under both conditions.



Citation:

Nai-Chi Yeh and Lien-Ti Bei (2008) ,"The Effect of Promotion Framing on the Evaluation of Price Bundling", in NA - Advances in Consumer Research Volume 35, eds. Angela Y. Lee and Dilip Soman, Duluth, MN : Association for Consumer Research, Pages: 966-966.

Authors

Nai-Chi Yeh, National Chengchi University, Taiwan
Lien-Ti Bei, National Chengchi University, Taiwan



Volume

NA - Advances in Consumer Research Volume 35 | 2008



Share Proceeding

Featured papers

See More

Featured

J3. You Think I’m Yours but, Trust Me, I’m Not: How Consumers Value Dogs and Cats

Colleen Patricia Kirk, New York Institute of Technology
Samantha Renee Kirk, Boston College, USA

Read More

Featured

Prices in Red: When a Red Price Becomes a Stop Sign

Hongjun Ye, Drexel University, USA
Siddharth Bhatt, Drexel University, USA
Rajneesh Suri, Drexel University, USA

Read More

Featured

K8. Framing Matters. How Comparisons to Ideal and Anti-Ideal Reference Points Affect Brand Evaluations.

Magdalena Zyta Jablonska, SWPS University of Social Sciences and Humanities
Andrzej Falkowski, SWPS University of Social Sciences and Humanities

Read More

Engage with Us

Becoming an Association for Consumer Research member is simple. Membership in ACR is relatively inexpensive, but brings significant benefits to its members.