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How anchoring and self-confidence level influence perceived saving on tensile price claim framing

Author

Listed:
  • Landie Qiu

    (The Pennsylvania State University)

  • David Cranage
  • Anna S Mattila

Abstract

Sales promotion is one of the most commonly used sales techniques by marketers, and promotion framing is critical because the presentation of sales information influences consumers’ perceived savings. This article focuses on one specific type of promotion framing – tensile price claim. It compares customers’ perceived savings on two pairs of tensile price claim framings: minimum framing (save 15 per cent or more) versus maximum framing (save up to 35 per cent), and range framing (save 15–35 per cent) versus average framing (save an average of 25 per cent). On the basis of the literature review, researchers propose a conceptual framework and two hypotheses. A pilot study and a main study were conducted to test the hypotheses. The findings suggest that Anchoring and Adjustment Theory may explain the savings perception process and consumer self-confidence levels moderate perceived savings during this process. Authors also discussed both theoretical and managerial implications of this research.

Suggested Citation

  • Landie Qiu & David Cranage & Anna S Mattila, 2016. "How anchoring and self-confidence level influence perceived saving on tensile price claim framing," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 15(2), pages 138-152, April.
    • Handle: RePEc:pal:jorapm:v:15:y:2016:i:2:d:10.1057_rpm.2015.49
    DOI: 10.1057/rpm.2015.49
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    References listed on IDEAS

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    1. Mobley, Mary F & Bearden, William O & Teel, Jesse E, 1988. "An Investigation of Individual Responses to Tensile Price Claims," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 15(2), pages 273-279, September.
    2. Andrew E. Reed & Joseph A. Mikels & Corinna E. Lockenhoff, 2012. "Choosing with confidence: Self-efficacy and preferences for choice," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 7(2), pages 173-180, March.
    3. Sanjay K. Dhar & Claudia González-Vallejo & Dilip Soman, 1999. "Modeling the Effects of Advertised Price Claims: Tensile Versus Precise Claims?," Marketing Science, INFORMS, vol. 18(2), pages 154-177.
    4. repec:cup:judgdm:v:7:y:2012:i:2:p:173-180 is not listed on IDEAS
    5. Bearden, William O & Hardesty, David M & Rose, Randall L, 2001. "Consumer Self-Confidence: Refinements in Conceptualization and Measurement," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 28(1), pages 121-134, June.
    6. Levin, Irwin P & Gaeth, Gary J, 1988. "How Consumers Are Affected by the Framing of Attribute Information before and after Consuming the Product," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 15(3), pages 374-378, December.
    Full references (including those not matched with items on IDEAS)

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