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

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  • Liu, Hsin-Hsien
  • Chou, Hsuan-Yi

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.

Suggested Citation

  • Liu, Hsin-Hsien & Chou, Hsuan-Yi, 2015. "The effects of promotional frames of sales packages on perceived price increases and repurchase intentions," International Journal of Research in Marketing, Elsevier, vol. 32(1), pages 23-33.
    • Handle: RePEc:eee:ijrema:v:32:y:2015:i:1:p:23-33
    DOI: 10.1016/j.ijresmar.2014.06.005
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    Cited by:

    1. Khouja, Moutaz & Subramaniam, Chandra & Vasudev, Vinay, 2020. "A comparative analysis of marketing promotions and implications for data analytics," International Journal of Research in Marketing, Elsevier, vol. 37(1), pages 151-174.
    2. Wenyan Zhou & Oliver Hinz & Alexander Benlian, 2018. "The impact of the package opening process on product returns," Business Research, Springer;German Academic Association for Business Research, vol. 11(2), pages 279-308, September.
    3. Hsin-Hsien Liu & Hsuan-Yi Chou, 2022. "Attribute specification effect on hedonic and utilitarian options," Australian Journal of Management, Australian School of Business, vol. 47(2), pages 322-341, May.
    4. 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).
    5. Liu, Hsin-Hsien & Chou, Hsuan-Yi, 2018. "Promotional formats and inaction inertia," Journal of Economic Psychology, Elsevier, vol. 66(C), pages 22-32.

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