The Effect of Product Familiarity on Price Discount Framing

Consumer knowledge of prices plays an important role in price management since it not only determines how prices are perceived and valued but also influences consumers’ purchase decisions. Previous research has demonstrated that our cognitive judgments are indeed influenced by the way decision problems are framed. Thus, the purpose of this study was to investigate whether degrees of perceptual saving of consumers with different product familiarity are influenced by the presentation form of the price discount. Moreover, the findings demonstrate that for the low-price product category conditions, consumers that are less familiar with the product perceived that there was a more significant difference in price reduction when it was presented in percentage terms than presented in dollar terms. However, when people have a higher level of product familiarity, no matter the price discount information is presented in dollar or percentage terms, there is no significant difference in their perceptual saving.


Sun Ya-Chung, Chang Chiung-Chiao, Chuang Shih-Chieh, and Cheng Yin-Hui (2010) ,"The Effect of Product Familiarity on Price Discount Framing", in NA - Advances in Consumer Research Volume 37, eds. Margaret C. Campbell, Jeff Inman, and Rik Pieters, Duluth, MN : Association for Consumer Research, Pages: 935-937 .


Sun Ya-Chung, Vanung University, Taiwan
Chang Chiung-Chiao, Vanung University, Taiwan
Chuang Shih-Chieh, National Chung Cheng University, Taiwan
Cheng Yin-Hui , National Taichung University, Taiwan


NA - Advances in Consumer Research Volume 37 | 2010

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