The effects of promotional frames of sales packages on perceived price increases and repurchase intentions

Hsin-Hsien Liu and Hsuan-Yi Chou

International Journal of Research in Marketing, 2015, vol. 32, issue 1, 23-33

Abstract: This article explores how framing a promotional package (i.e., presenting the promotion as a bundle versus as a free gift) influences consumers' price assignments to the individual items in the package. It examines the potential influences of framing on consumers' perceptions of price increases and repurchase intentions after the promotion expires. The findings show that when a package contains two different products, consumers in the free gift (bundle) condition assign a higher price to the focal (supplementary) product, perceive a smaller price increase, and exhibit higher repurchase intentions toward the focal (supplementary) product after the promotion ends. If the promotional package contains two identical products, the free gift promotion generates higher perceived price increases and lower repurchase intentions than a price bundle, through similar price assignment mechanisms. An incentive-compatible experimental design finds that a free gift promotion lowers consumers' willingness to pay for the target product compared with a price bundle promotion. The findings of this research have significant implications for both framing research and marketing practice.

Keywords: Sales frame; Bundle; Free gift; Mental accounting; Reference price (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ijrema:v:32:y:2015:i:1:p:23-33

DOI: 10.1016/j.ijresmar.2014.06.005

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