Framing effects on evaluation of coupon offers: assessing the ...

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adapted from (Muehling & Laczniak, 1988)(α = .97). All scales had nine points and were highly reliable according to Nunnally (1967). 4. Results 4.1 Manipulation checks In the case of the framing manipulation, 86 % of those exposed to the % off frame indicated that the coupon incentive was a percentage price reduction, 93 % of those exposed to the € off frame reported that the coupon incentive was a euro price reduction and finally, 76 % of those seeing the reduced priceframe indicated that the incentive was a reduced retail price (χ 2 (4, 247) = 303.99, p < .001). Also, the laptop was considered as significantly high priced than the USB stick (Mlaptop= 6.3, Musb = 3.3, t (240.076) = -15.14, p
egressions that provide the linkages to the meditational model were applied and the necessary regression coefficientsalong with their standard errors were included in theSobel test (Sobel, 1982). The test was highly significant (Sobel test statistic=5.45, p< .001) providing supportto H3. The derived results are discussed in the next session. 5. Discussion and Managerial Implications The results of the experiment reveal that the “reduced price” frame can be considered as a peer of the “€ off” frame both for high and low priced products. In the former case they outperform the “% off”frame while in the latter the opposite happens. This unexpectedly good performance of the “reduced price” frame may be attributed to the overestimation of the difficulty that the mental accounting would impose on the calculation of the savings. Probably consumers are more trained to do these calculations nowadays since they are inundated by offers or business students more capable working with numbers. The chosen retail prices and discount sizes may have also facilitated this phenomenon. As regards the promotion depth, it does not distort the framing <strong>effects</strong> in the case of medium and credibly high sizes while it improves promotional effectiveness. The significant effect of product only in redemption intention is another indication that respondents clearly discriminated the content of the dependent variables (the lack of high inter-correlations was a first sign). Even if a promotion is attractive, you can more easily be temptedto buy a new or extra low-priced and handy product than a high-priced one that may loom like an expensive luxury. Finally, the study also shed light on the influence that face value frames exert on the antecedents of behavior. It seems that transaction value influences attitude towards the offer, which in turn has an impact on redemption intention. From the above findings, significant managerial implications can be derived. Managers can smartly and inexpensively improve their promotional effectiveness by taking the price level of the promoted product and the presentation of the face value into consideration each time they design coupon campaigns. These factors influence all the stages in the evaluation process when the discount sizes are medium or plausibly high. Coupon face values expressed in percentage terms are more effective for low-priced products while a reduced price presentation or a monetary one appear more suitable for high-priced goods. For the discount size, the notion that everyone wants (plausibly) more still holds. 6. Limitations and Future Research The sample and the study’s environment may secure the purity of the observed causal <strong>effects</strong> but may hurt external validity. It would be desirable to investigate such framing <strong>effects</strong> in a field setting. Moreover, the framing <strong>effects</strong> were validated measuring the impact on the antecedents of behavior that correlate with it but do not fully predict it. Thus, an important extension is to use actual data from consumer purchases. Finally, an extension one might consider is to explore the boundary conditions of the observed framing <strong>effects</strong> by occupying other promotion depths, product categories (outside the high tech spectrum) and product price levels.
Page 1 and 2: Framing ef
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Page 7 and 8: Feldman, J.M., & Lynch, J.G.Jr. (19
Page 9 and 10: Papatla, P., &Krishnamurthi, L. (19
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