Promotion Framing Effects on Consumers’ Perceptions of Customized Pricing

This article examines whether price promotion framing can mitigate consumers’ negative perceptions of customized pricing. Using two experiments, we show that price framing tactics influence consumers’ reactions of customized pricing differently across different product-price levels. A free gift for a high-priced product and a percentage off for a low-priced product yields the best results in reducing the negative perceptions even after consumers learned that they paid a higher price than others for the same product from the same store. Perceived transaction dissimilarity is an important antecedent of perceived price fairness, and perceived value and trust mediate the effects of perceived price fairness on repurchase intentions.

Citation:

Fei Lee Weisstein and Kent B. Monroe (2009) ,"Promotion Framing Effects on Consumers’ Perceptions of Customized Pricing", in NA - Advances in Consumer Research Volume 36, eds. Ann L. McGill and Sharon Shavitt, Duluth, MN : Association for Consumer Research, Pages: 716-717.