IDEAS home Printed from https://ideas.repec.org/a/eee/joreco/v16y2009i6p451-457.html
   My bibliography  Save this article

Are temporally reframed prices really advantageous? A more detailed look at the processes triggered by temporally reframed prices

Author

Listed:
  • Bambauer-Sachse, Silke
  • Christina Mangold, Sabrina

Abstract

In this paper, we analyze effects of prices temporally reframed to a short period of time. We transfer a theoretical framework from a similar field of research to the context of temporally reframed prices. Based on this framework, we conduct a new empirical study. The results of the study show that temporally reframing prices leads to higher price attractiveness. However, this positive effect is overcompensated by negative effects of consumers’ feeling of being manipulated and of an increased perceived complexity of the price structure when temporally reframed prices are used instead of aggregate prices.

Suggested Citation

  • Bambauer-Sachse, Silke & Christina Mangold, Sabrina, 2009. "Are temporally reframed prices really advantageous? A more detailed look at the processes triggered by temporally reframed prices," Journal of Retailing and Consumer Services, Elsevier, vol. 16(6), pages 451-457.
    • Handle: RePEc:eee:joreco:v:16:y:2009:i:6:p:451-457
    DOI: 10.1016/j.jretconser.2009.06.005
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969698909000459
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jretconser.2009.06.005?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. Richard H. Thaler, 2008. "Mental Accounting and Consumer Choice," Marketing Science, INFORMS, vol. 27(1), pages 15-25, 01-02.
    2. Lichtenstein, Donald R & Bloch, Peter H & Black, William C, 1988. "Correlates of Price Acceptability," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 15(2), pages 243-252, September.
    3. Davis, Harry L & Hoch, Stephen J & Ragsdale, E K Easton, 1986. "An Anchoring and Adjustment Model of Spousal Predictions," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 13(1), pages 25-37, June.
    4. Northcraft, Gregory B. & Neale, Margaret A., 1987. "Experts, amateurs, and real estate: An anchoring-and-adjustment perspective on property pricing decisions," Organizational Behavior and Human Decision Processes, Elsevier, vol. 39(1), pages 84-97, February.
    5. 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..
    6. Liefeld, John & Heslop, Louise A, 1985. "Reference Prices and Deception in Newspaper Advertising," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 11(4), pages 868-876, March.
    7. Janiszewski, Chris & Lichtenstein, Donald R, 1999. "A Range Theory Account of Price Perception," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 25(4), pages 353-368, March.
    8. Sujan, Mita, 1985. "Consumer Knowledge: Effects on Evaluation Strategies Mediating Consumer Judgments," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 12(1), pages 31-46, June.
    9. Mobley, Mary F & Bearden, William O & Teel, Jesse E, 1988. "An Investigation of Individual Responses to Tensile Price Claims," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 15(2), pages 273-279, September.
    10. Johnson, Michael D, 1984. "Consumer Choice Strategies for Comparing Noncomparable Alternatives," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 11(3), pages 741-753, December.
    11. Block, Richard A. & Harper, David R., 1991. "Overconfidence in estimation: Testing the anchoring-and-adjustment hypothesis," Organizational Behavior and Human Decision Processes, Elsevier, vol. 49(2), pages 188-207, August.
    12. Garbarino, Ellen C & Edell, Julie A, 1997. "Cognitive Effort, Affect, and Choice," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 24(2), pages 147-158, September.
    13. Gourville, John T, 1998. "Pennies-a-Day: The Effect of Temporal Reframing on Transaction Evaluation," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 24(4), pages 395-408, March.
    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. Bambauer-Sachse, Silke & Grewal, Dhruv, 2011. "Temporal Reframing of Prices: When Is It Beneficial?," Journal of Retailing, Elsevier, vol. 87(2), pages 156-165.
    2. Verma, Pranay & Sharma, Anil Kumar, 2018. "Assortment satisfaction: The tale of online footwear sales," Technology in Society, Elsevier, vol. 54(C), pages 57-65.
    3. Shirai, Miyuri, 2017. "Effects of price reframing tactics on consumer perceptions," Journal of Retailing and Consumer Services, Elsevier, vol. 34(C), pages 82-87.
    4. Fecher, André & Robbert, Thomas & Roth, Stefan, 2020. "Per piece or per kilogram? Default-unit effects in retailing," Journal of Retailing and Consumer Services, Elsevier, vol. 53(C).
    5. Büyükdağ, Naci & Soysal, Ayşe Nur & Ki̇tapci, Olgun, 2020. "The effect of specific discount pattern in terms of price promotions on perceived price attractiveness and purchase intention: An experimental research," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).

    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. Raghubir, Priya, 2006. "An information processing review of the subjective value of money and prices," Journal of Business Research, Elsevier, vol. 59(10-11), pages 1053-1062, October.
    2. Bambauer-Sachse, Silke & Grewal, Dhruv, 2011. "Temporal Reframing of Prices: When Is It Beneficial?," Journal of Retailing, Elsevier, vol. 87(2), pages 156-165.
    3. 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.
    4. Lillian L. Cheng & Kent B. Monroe, 2013. "An appraisal of behavioral price research (part 1): price as a physical stimulus," AMS Review, Springer;Academy of Marketing Science, vol. 3(3), pages 103-129, September.
    5. Matthew Lee & Dr. Frankie Law, 2015. "The discount framing in different pricing schemes: Combined versus partitioned pricing," Journal of Business & Management (COES&RJ-JBM), , vol. 3(4), pages 439-458, October.
    6. Arbel, Yuval & Ben-Shahar, Danny & Gabriel, Stuart, 2014. "Anchoring and housing choice: Results of a natural policy experiment," Regional Science and Urban Economics, Elsevier, vol. 49(C), pages 68-83.
    7. Andreas Leibbrandt, 2016. "Behavioral Constraints on Pricing: Experimental Evidence on Price Discrimination and Customer Antagonism," CESifo Working Paper Series 6214, CESifo.
    8. Chandrashekaran, Rajesh & Grewal, Dhruv, 2006. "Anchoring effects of advertised reference price and sale price: The moderating role of saving presentation format," Journal of Business Research, Elsevier, vol. 59(10-11), pages 1063-1071, October.
    9. Santana, Shelle & Thomas, Manoj & Morwitz, Vicki G., 2020. "The Role of Numbers in the Customer Journey," Journal of Retailing, Elsevier, vol. 96(1), pages 138-154.
    10. Chapman, Gretchen B. & Johnson, Eric J., 1999. "Anchoring, Activation, and the Construction of Values, , , , , ," Organizational Behavior and Human Decision Processes, Elsevier, vol. 79(2), pages 115-153, August.
    11. 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.
    12. Whyte, Glen & Sebenius, James K., 1997. "The Effect of Multiple Anchors on Anchoring in Individual and Group Judgment," Organizational Behavior and Human Decision Processes, Elsevier, vol. 69(1), pages 74-85, January.
    13. Robert Meyer & Joachim Vosgerau & Vishal Singh & Joel Urbany & Gal Zauberman & Michael Norton & Tony Cui & Brian Ratchford & Alessandro Acquisti & David Bell & Barbara Kahn, 2010. "Behavioral research and empirical modeling of marketing channels: Implications for both fields and a call for future research," Marketing Letters, Springer, vol. 21(3), pages 301-315, September.
    14. Chandrashekaran, R., 2001. "The implications of individual differences in reference price utilization for designing effective price communications," Journal of Business Research, Elsevier, vol. 53(2), pages 85-91, August.
    15. Donoho, Casey L. & Swenson, Michael J., 1996. "Top-down versus bottom-up sales tactics effects on the presentation of a product line," Journal of Business Research, Elsevier, vol. 37(1), pages 51-61, September.
    16. Heribert Gierl & Hans Höser, 2002. "Der Reihenfolgeeffekt auf Präferenzen," Schmalenbach Journal of Business Research, Springer, vol. 54(1), pages 3-18, February.
    17. 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.
    18. repec:oup:qjecon:v:128:y:2012:i:1:p:53-104 is not listed on IDEAS
    19. De Bruyn, Arnaud & Prokopec, Sonja, 2017. "Assimilation-contrast theory in action: Operationalization and managerial impact in a fundraising context," International Journal of Research in Marketing, Elsevier, vol. 34(2), pages 367-381.
    20. Caputo, Vincenzina & Lusk, Jayson L. & Nayga, Rodolfo M., 2018. "Choice experiments are not conducted in a vacuum: The effects of external price information on choice behavior," Journal of Economic Behavior & Organization, Elsevier, vol. 145(C), pages 335-351.
    21. Olavarrieta, Sergio & Hidalgo, Pedro & Manzur, Enrique & Farías, Pablo, 2012. "Determinants of in-store price knowledge for packaged products: An empirical study in a Chilean hypermarket," Journal of Business Research, Elsevier, vol. 65(12), pages 1759-1766.

    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:joreco:v:16:y:2009:i:6:p:451-457. 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: https://www.journals.elsevier.com/journal-of-retailing-and-consumer-services .

    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.