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The Influence of Price Discount Framing on the Evaluation of a Product Bundle

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  • Janiszewski, Chris
  • Cunha, Marcus, Jr

Abstract

Bundle offers consisting of two or more products often include a price discount. The impact of the price discount on the perceived attractiveness of the bundle has been shown to depend on which product is discounted. It has been argued that discounts are more effective when they are assigned to the product that will receive the most weight in the overall evaluation of the bundle. We propose that the perceived value of the discount may also depend on a referent specific to each product. Six studies are used to provide evidence that (1) price discount framing effects can be explained by reference dependence and (2) that reference dependence and product importance independently contribute to price discount framing effects. Copyright 2004 by the University of Chicago.

Suggested Citation

  • Janiszewski, Chris & Cunha, Marcus, Jr, 2004. " The Influence of Price Discount Framing on the Evaluation of a Product Bundle," Journal of Consumer Research, Oxford University Press, vol. 30(4), pages 534-546, March.
  • Handle: RePEc:oup:jconrs:v:30:y:2004:i:4:p:534-46
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    File URL: http://dx.doi.org/10.1086/380287
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    1. repec:dau:papers:123456789/2418 is not listed on IDEAS
    2. Nils Boysen & Christian Ringle, 2008. "Über die Wirkung der Optionsbündelung auf die Ablaufplanung einer Variantenfließfertigung," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 18(3), pages 301-321, February.
    3. repec:eee:touman:v:52:y:2016:i:c:p:455-467 is not listed on IDEAS
    4. repec:eee:joreco:v:40:y:2018:i:c:p:204-212 is not listed on IDEAS
    5. Willem Boom, 2011. "Price Intransparency, Consumer Decision Making and European Consumer Law," Journal of Consumer Policy, Springer, vol. 34(3), pages 359-376, September.
    6. Dixit, Ashutosh & Whipple, Thomas W. & Zinkhan, George M. & Gailey, Edward, 2008. "A taxonomy of information technology-enhanced pricing strategies," Journal of Business Research, Elsevier, vol. 61(4), pages 275-283, April.
    7. Iveroth, Einar & Westelius, Alf & Petri, Carl-Johan & Olve, Nils-Göran & Cöster, Mathias & Nilsson, Fredrik, 2013. "How to differentiate by price: Proposal for a five-dimensional model," European Management Journal, Elsevier, vol. 31(2), pages 109-123.
    8. Béatrice Parguel & Pauline De Pechpeyrou & Ouidade Sabri-Zaaraoui & Pierre Desmet, 2007. "Format Effects in Volume Discounts to Consumers," Post-Print halshs-00145917, HAL.
    9. Teng, Lefa, 2009. "A comparison of two types of price discounts in shifting consumers' attitudes and purchase intentions," Journal of Business Research, Elsevier, vol. 62(1), pages 14-21, January.
    10. Khandeparkar, Kapil, 2014. "The role of complementarity and partner brand price level in new product introduction strategy using bundle offers: A study on the quality perception of bundle components," IIMA Working Papers WP2014-01-07, Indian Institute of Management Ahmedabad, Research and Publication Department.
    11. repec:dau:papers:123456789/1077 is not listed on IDEAS
    12. Sahay, Arvind & Mukherjee, Sumitava, 2014. "Weighted-Additive versus Reference-Dependent models of bundle evaluation: Evidence from discount framing on product bundles with surcharges," IIMA Working Papers WP2014-03-12, Indian Institute of Management Ahmedabad, Research and Publication Department.
    13. Kurt A. Carlson & Samuel D. Bond, 2006. "Improving Preference Assessment: Limiting the Effect of Context Through Pre-exposure to Attribute Levels," Management Science, INFORMS, vol. 52(3), pages 410-421, March.
    14. Sheikhzadeh, Mehdi & Elahi, Ehsan, 2013. "Product bundling: Impacts of product heterogeneity and risk considerations," International Journal of Production Economics, Elsevier, vol. 144(1), pages 209-222.
    15. repec:eee:joreco:v:16:y:2009:i:5:p:367-376 is not listed on IDEAS
    16. Timothy Gilbride & Joseph Guiltinan & Joel Urbany, 2008. "Framing effects in mixed price bundling," Marketing Letters, Springer, vol. 19(2), pages 125-139, June.
    17. Béatrice Parguel & Ouidade Sabri-Zaaraoui & Pierre Desmet & Pauline De Pechpeyrou, 2006. "Perceptions et évaluations du lot virtuel par le consommateur," Post-Print halshs-00146700, HAL.
    18. repec:eee:jouret:v:91:y:2015:i:1:p:19-33 is not listed on IDEAS
    19. repec:eee:joreco:v:18:y:2011:i:5:p:455-462 is not listed on IDEAS

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