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Temporal Reframing of Prices: When Is It Beneficial?

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  • Bambauer-Sachse, Silke
  • Grewal, Dhruv

Abstract

Prior studies provide mixed results pertaining to the effectiveness of temporal reframing of prices. This study examines the conditions in which such temporal reframing to a shorter period of time is more or less beneficial than aggregate prices. Investigations of the role of four moderating variables—price endings, price level, time periods, and calculation affinity—show that reframed prices are more beneficial than aggregate prices for high-priced products, especially in combination with even price endings, an aggregate price that normally refers to a comparatively short time period, or customers with poor calculation affinity. Aggregate prices offer more benefits than reframed prices for low-priced products, odd price endings, aggregate prices that refer to longer periods, and customers with excellent calculation affinities.

Suggested Citation

  • Bambauer-Sachse, Silke & Grewal, Dhruv, 2011. "Temporal Reframing of Prices: When Is It Beneficial?," Journal of Retailing, Elsevier, vol. 87(2), pages 156-165.
    • Handle: RePEc:eee:jouret:v:87:y:2011:i:2:p:156-165
    DOI: 10.1016/j.jretai.2011.02.002
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    6. Shirai, Miyuri, 2017. "Effects of price reframing tactics on consumer perceptions," Journal of Retailing and Consumer Services, Elsevier, vol. 34(C), pages 82-87.

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