IDEAS home Printed from https://ideas.repec.org/a/eee/joepsy/v39y2013icp402-413.html
   My bibliography  Save this article

Product option framing under the influence of a promotion versus prevention focus

Author

Listed:
  • Cheng, Yin-Hui
  • Yen, HsiuJu Rebecca
  • Chuang, Shih-Chieh
  • Chang, Chia-Jung

Abstract

Investigations into the option framing effect involve the use of a subtractive versus an additive option-framing method to gauge their impact on consumer behaviors. This research examines how option framing could affect choice decisions as a function of a consumer’s goal orientation. Study 1 offers convergent support for the proposition that regulatory focus moderates the option framing effect and the mediating role of action/inaction on the relationship between regulatory focus and the option framing effect. In particular, a reverse finding shows that promotion-focused consumers provided with a +OF options list tend to choose more options than those who are given a −OF option list. To explain the reverse effect, Study 2 examines and demonstrates regulatory fit as a possible moderator. The results of Study 2 also confirm our inference and echo the same results of Study 1. Finally, based on the regulatory fit theory, Study 3 examines if cognitive constraints associate with a consumer’s regulatory orientation may also account for the interaction between regulatory focus and option framing. The results of Study 3 also support the proposition.

Suggested Citation

  • Cheng, Yin-Hui & Yen, HsiuJu Rebecca & Chuang, Shih-Chieh & Chang, Chia-Jung, 2013. "Product option framing under the influence of a promotion versus prevention focus," Journal of Economic Psychology, Elsevier, vol. 39(C), pages 402-413.
    • Handle: RePEc:eee:joepsy:v:39:y:2013:i:c:p:402-413
    DOI: 10.1016/j.joep.2013.06.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0167487013000706
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.joep.2013.06.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Yaniv, Ilan & Schul, Yaacov, 2000. "Acceptance and Elimination Procedures in Choice: Noncomplementarity and the Role of Implied Status quo," Organizational Behavior and Human Decision Processes, Elsevier, vol. 82(2), pages 293-313, July.
    2. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    3. Shailendra Pratap Jain & Nidhi Agrawal & Durairaj Maheswaran, 2006. "When More May Be Less: The Effects of Regulatory Focus on Responses to Different Comparative Frames," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 33(1), pages 91-98, June.
    4. Crowe, Ellen & Higgins, E. Tory, 1997. "Regulatory Focus and Strategic Inclinations: Promotion and Prevention in Decision-Making," Organizational Behavior and Human Decision Processes, Elsevier, vol. 69(2), pages 117-132, February.
    5. Amos Tversky & Daniel Kahneman, 1991. "Loss Aversion in Riskless Choice: A Reference-Dependent Model," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(4), pages 1039-1061.
    6. Huber, Vandra L. & Neale, Margaret A. & Nofthcraft, Gregory B., 1987. "Judgment by heuristics: Effects of ratee and rater characteristics and performance standards on performance-related judgments," Organizational Behavior and Human Decision Processes, Elsevier, vol. 40(2), pages 149-169, October.
    7. Rui (Juliet) Zhu & Joan Meyers-Levy, 2007. "Exploring the Cognitive Mechanism that Underlies Regulatory Focus Effects," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 34(1), pages 89-96, April.
    8. Richard H. Thaler, 2008. "Mental Accounting and Consumer Choice," Marketing Science, INFORMS, vol. 27(1), pages 15-25, 01-02.
    9. Puto, Christopher P, 1987. "The Framing of Buying Decisions," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 14(3), pages 301-315, December.
    10. Bettman, James R & Luce, Mary Frances & Payne, John W, 1998. "Constructive Consumer Choice Processes," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 25(3), pages 187-217, December.
    11. Bruce G. S. Hardie & Eric J. Johnson & Peter S. Fader, 1993. "Modeling Loss Aversion and Reference Dependence Effects on Brand Choice," Marketing Science, INFORMS, vol. 12(4), pages 378-394.
    12. Aaker, Jennifer L & Lee, Angela Y, 2001. ""I" Seek Pleasures and "We" Avoid Pains: The Role of Self-Regulatory Goals in Information Processing and Persuasion," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 28(1), pages 33-49, June.
    13. Pham, Michel Tuan & Avnet, Tamar, 2004. "Ideals and Oughts and the Reliance on Affect versus Substance in Persuasion," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 30(4), pages 503-518, March.
    14. Jiewen Hong & Angela Y. Lee, 2008. "Be Fit and Be Strong: Mastering Self-Regulation through Regulatory Fit," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 34(5), pages 682-695, August.
    15. Angela Y. Lee & Punam Anand Keller & Brian Sternthal, 2010. "Value from Regulatory Construal Fit: The Persuasive Impact of Fit between Consumer Goals and Message Concreteness," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 36(5), pages 735-747, February.
    16. Ganzach, Yoav & Karsahi, Nili, 1995. "Message framing and buying behavior: A field experiment," Journal of Business Research, Elsevier, vol. 32(1), pages 11-17, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Marder, Ben & Angell, Rob & Boyd, Eric, 2023. "How and why (imagined) online reviews impact frontline retail encounters," Journal of Retailing, Elsevier, vol. 99(2), pages 265-279.
    2. Verônica Feder Mayer & Glauber Eduardo de Oliveira Santos & Osiris Ricardo Bezerra Marques, 2022. "Option framing for upselling tourism services: Does cognitive availability prevent irrational choices?," Tourism Economics, , vol. 28(2), pages 476-494, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Heribert Gierl & Roland Helm & Stefan Stumpp, 2001. "Wertfunktion der Prospect-Theorie, Produktpräferenzen und Folgerungen für das Marketing," Schmalenbach Journal of Business Research, Springer, vol. 53(6), pages 559-588, September.
    2. Tarnanidis, Theodore & Owusu-Frimpong, Nana & Nwankwo, Sonny & Omar, Maktoba, 2015. "Why we buy? Modeling consumer selection of referents," Journal of Retailing and Consumer Services, Elsevier, vol. 22(C), pages 24-36.
    3. Heribert Gierl & Hans Höser, 2002. "Der Reihenfolgeeffekt auf Präferenzen," Schmalenbach Journal of Business Research, Springer, vol. 54(1), pages 3-18, February.
    4. Coker, Brent & Nagpal, Anish, 2013. "Building-Up versus Paring-Down: Consumer Responses to Recommendations When Customizing," Journal of Retailing, Elsevier, vol. 89(2), pages 190-206.
    5. Ying Zhu & Haipeng (Allan) Chen, 2017. "A tale of two brands: The joint effect of manufacturer and retailer brands on consumers’ product evaluation," Journal of Brand Management, Palgrave Macmillan, vol. 24(3), pages 284-306, May.
    6. Teck-Hua Ho & Juanjuan Zhang, 2008. "Designing Pricing Contracts for Boundedly Rational Customers: Does the Framing of the Fixed Fee Matter?," Management Science, INFORMS, vol. 54(4), pages 686-700, April.
    7. Joost M. E. Pennings & Ale Smidts, 2003. "The Shape of Utility Functions and Organizational Behavior," Management Science, INFORMS, vol. 49(9), pages 1251-1263, September.
    8. Becker-Peth, Michael & Thonemann, Ulrich W., 2016. "Reference points in revenue sharing contracts—How to design optimal supply chain contracts," European Journal of Operational Research, Elsevier, vol. 249(3), pages 1033-1049.
    9. Heribert Gierl & Roland Helm & Michaela Satzinger, 2000. "Die Wirkung positiver und negativer Aussagen in der Werbung vor dem Hintergrund des Message Framing," Schmalenbach Journal of Business Research, Springer, vol. 52(3), pages 234-256, May.
    10. Benjamin Polak & Rupert Stadler & Mark Heitmann & Andreas Herrmann & Marc Cäsar & Jan Landwehr, 2010. "Aufpreise oder Gesamtpreise? Wirkung der Preisdarstellung auf das individuelle Entscheidungsverhalten," Schmalenbach Journal of Business Research, Springer, vol. 62(8), pages 911-932, December.
    11. Lena Vogel & Jan-Oliver Menz & Ulrich Fritsche, 2009. "Prospect Theory and Inflation Perceptions - An Empirical Assessment," Macroeconomics and Finance Series 200903, University of Hamburg, Department of Socioeconomics.
    12. Ynte Dam & Janneke Jonge, 2015. "The Positive Side of Negative Labelling," Journal of Consumer Policy, Springer, vol. 38(1), pages 19-38, March.
    13. Ahrens, Steffen & Pirschel, Inske & Snower, Dennis J., 2017. "A theory of price adjustment under loss aversion," Journal of Economic Behavior & Organization, Elsevier, vol. 134(C), pages 78-95.
    14. Levin, Irwin P. & Schneider, Sandra L. & Gaeth, Gary J., 1998. "All Frames Are Not Created Equal: A Typology and Critical Analysis of Framing Effects," Organizational Behavior and Human Decision Processes, Elsevier, vol. 76(2), pages 149-188, November.
    15. Erasmus, Alet C. & Donoghue, Suné & Dobbelstein, Thomas, 2014. "Consumers׳ perception of the complexity of selected household purchase decisions," Journal of Retailing and Consumer Services, Elsevier, vol. 21(3), pages 293-305.
    16. Pranav Jindal, 2015. "Risk Preferences and Demand Drivers of Extended Warranties," Marketing Science, INFORMS, vol. 34(1), pages 39-58, January.
    17. Haipeng (Allan) Chen & Woojin Choi & Yan (Lucy) Liu & Haoying Sun & Fu Liu, 2021. "More or Less? Consumer Goal Orientation and Product Choice," Customer Needs and Solutions, Springer;Institute for Sustainable Innovation and Growth (iSIG), vol. 8(1), pages 16-26, June.
    18. Daniel Reck & Arthur Seibold, 2022. "The Welfare Economics of Reference Dependence," CESifo Working Paper Series 9999, CESifo.
    19. Jaikumar, Saravana & Sahay, Arvind, 2016. "Effect of Overlapping Price Ranges on Price Perception: Revisiting the Range Theory of Price Perception," IIMA Working Papers WP2016-02-02, Indian Institute of Management Ahmedabad, Research and Publication Department.
    20. Wedel, Michel & Leeflang, Peter S. H., 1998. "A model for the effects of psychological pricing in Gabor-Granger price studies," Journal of Economic Psychology, Elsevier, vol. 19(2), pages 237-260, April.

    More about this item

    Keywords

    Option framing; Regulatory focus; Promotion-focus; Prevention-focus;
    All these keywords.

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joepsy:v:39:y:2013:i:c:p:402-413. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/joep .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.