IDEAS home Printed from https://ideas.repec.org/a/eee/jouret/v87y2011i2p156-165.html
   My bibliography  Save this article

Temporal Reframing of Prices: When Is It Beneficial?

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0022435911000108
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jretai.2011.02.002?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. Grewal, Dhruv & Marmorstein, Howard, 1994. "Market Price Variation, Perceived Price Variation, and Consumers' Price Search Decisions for Durable Goods," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 21(3), pages 453-460, December.
    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. Joydeep Srivastava & Shweta Oza, 2006. "Effect of Response Time on Perceptions of Bargaining Outcomes," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 33(2), pages 266-272, July.
    4. 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..
    5. 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.
    6. Hyeong Kim & Thomas Kramer, 2006. "The moderating effects of need for cognition and cognitive effort on responses to multi-dimensional prices," Marketing Letters, Springer, vol. 17(3), pages 193-203, July.
    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. Stiving, Mark & Winer, Russell S, 1997. "An Empirical Analysis of Price Endings with Scanner Data," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 24(1), pages 57-67, June.
    9. Jacoby, Jacob & Szybillo, George J & Berning, Carol Kohn, 1976. "Time and Consumer Behavior: An Interdisciplinary Overview," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 2(4), pages 320-339, March.
    10. Aradhna Krishna & Z. John Zhang, 1999. "Short- or Long-Duration Coupons: The Effect of the Expiration Date on the Profitability of Coupon Promotions," Management Science, INFORMS, vol. 45(8), pages 1041-1056, August.
    11. Inman, J Jeffrey & McAlister, Leigh & Hoyer, Wayne D, 1990. "Promotion Signal: Proxy for a Price Cut?," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 17(1), pages 74-81, June.
    12. Lisa J. Abendroth & Kristin Diehl, 2006. "Now or Never: Effects of Limited Purchase Opportunities on Patterns of Regret over Time," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 33(3), pages 342-351, October.
    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. Chenavaz, Régis & Drouard, Joeffrey & Escobar, Octavio R. & Karoubi, Bruno, 2018. "Convenience pricing in online retailing: Evidence from Amazon.com," Economic Modelling, Elsevier, vol. 70(C), pages 127-139.
    2. Shirai, Miyuri, 2017. "Effects of price reframing tactics on consumer perceptions," Journal of Retailing and Consumer Services, Elsevier, vol. 34(C), pages 82-87.
    3. 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).
    4. Li, Meng & Patel, Pankaj C. & Wolfe, Marcus T., 2019. "A penny saved is a penny earned? Differences in male and female savings and consumption tradeoffs on online retail platforms," Journal of Retailing and Consumer Services, Elsevier, vol. 46(C), pages 79-86.
    5. Hou, Chenxuan & Sarigöllü, Emine, 2022. "Is bigger better? How the scale effect influences green purchase intention: The case of washing machine," Journal of Retailing and Consumer Services, Elsevier, vol. 65(C).
    6. Choi, Pilsik & Coulter, Keith S., 2012. "It's Not All Relative: The Effects of Mental and Physical Positioning of Comparative Prices on Absolute versus Relative Discount Assessment," Journal of Retailing, Elsevier, vol. 88(4), pages 512-527.

    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 & 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.
    3. repec:dau:papers:123456789/4234 is not listed on IDEAS
    4. 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.
    5. Eric T. Anderson & Duncan I. Simester, 2008. "—Does Demand Fall When Customers Perceive That Prices Are Unfair? The Case of Premium Pricing for Large Sizes," Marketing Science, INFORMS, vol. 27(3), pages 492-500, 05-06.
    6. Hyeong Kim & Thomas Kramer, 2006. "The moderating effects of need for cognition and cognitive effort on responses to multi-dimensional prices," Marketing Letters, Springer, vol. 17(3), pages 193-203, July.
    7. Willem Boom, 2011. "Price Intransparency, Consumer Decision Making and European Consumer Law," Journal of Consumer Policy, Springer, vol. 34(3), pages 359-376, September.
    8. Gabler, Colin B. & Myles Landers, V. & Reynolds, Kristy E., 2017. "Purchase decision regret: Negative consequences of the Steadily Increasing Discount strategy," Journal of Business Research, Elsevier, vol. 76(C), pages 201-208.
    9. 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.
    10. 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.
    11. Kaushik Basu, 2006. "Consumer Cognition and Pricing in the Nines in Oligopolistic Markets," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 15(1), pages 125-141, March.
    12. Aku-Ville Lehtimäki & Kent B. Monroe & Outi Somervuori, 2019. "The influence of regular price level (low, medium, or high) and framing of discount (monetary or percentage) on perceived attractiveness of discount amount," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 18(1), pages 76-85, February.
    13. Sheehan, Daniel & Hardesty, David M. & Ziegler, Alexander H. & Chen, Haipeng (Allan), 2019. "Consumer reactions to price discounts across online shopping experiences," Journal of Retailing and Consumer Services, Elsevier, vol. 51(C), pages 129-138.
    14. Jan Wieseke & Anika Kolberg & Laura Marie Schons, 2016. "Life could be so easy: the convenience effect of round price endings," Journal of the Academy of Marketing Science, Springer, vol. 44(4), pages 474-494, July.
    15. 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.
    16. Andreas Leibbrandt, 2016. "Behavioral Constraints on Pricing: Experimental Evidence on Price Discrimination and Customer Antagonism," CESifo Working Paper Series 6214, CESifo.
    17. Kukar-Kinney, Monika & Ridgway, Nancy M. & Monroe, Kent B., 2012. "The Role of Price in the Behavior and Purchase Decisions of Compulsive Buyers," Journal of Retailing, Elsevier, vol. 88(1), pages 63-71.
    18. Levy, Daniel & Snir, Avichai & Gotler, Alex & Chen, Haipeng (Allan), 2020. "Not all price endings are created equal: Price points and asymmetric price rigidity," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, issue forthcomi.
    19. Gaston-Breton, Charlotte & Duque, Lola C., 2011. "Promotional benefits of 99-ending prices: the moderating role of intuitive and analytical decision style," DEE - Working Papers. Business Economics. WB wb113809, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
    20. Eric T. Anderson & Duncan I. Simester, 2001. "Are Sale Signs Less Effective When More Products Have Them?," Marketing Science, INFORMS, vol. 20(2), pages 121-142, March.
    21. Rudy Douven & Ron van der Heijden & Thomas McGuire & Erik Schut, 2017. "Premium levels and demand response in health insurance: relative thinking and zero-price effects," CPB Discussion Paper 366, CPB Netherlands Bureau for Economic Policy Analysis.

    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:jouret:v:87:y:2011:i:2:p:156-165. 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 .

    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.