Discounts and consumer search behavior : the role of framing

Bayer, Ralph-C. & Ke, Changxia (2013) Discounts and consumer search behavior : the role of framing. Journal of Economic Psychology, 39, pp. 215-224.

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This paper studies the pure framing effect of price discounts, focusing on its impact on consumer search behavior. In a simple two-shop search experiment, we compare search behavior in base treatments (where both shops post net prices without discounts) to discount treatments (where either the first shop or the second shop posts gross prices with separate discount offers, keeping the net prices constant). Although the objective search problems are identical across treatments, subjects search less in discount frames, irrespective where the discount is offered. There is evidence showing that subjects only base their decisions on salient characteristics of the situation rather than on the objective price information.

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5 citations in Web of Science®

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ID Code: 64914
Item Type: Journal Article
Refereed: Yes
DOI: 10.1016/j.joep.2013.08.003
ISSN: 0167-4870
Subjects: Australian and New Zealand Standard Research Classification > ECONOMICS (140000)
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Economics & Finance
Copyright Owner: Copyright 2013 Elsevier
Copyright Statement: This is the author’s version of a work that was accepted for publication in Journal of Economic Psychology. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Journal of Economic Psychology, [VOL 39, (2013)] DOI:
Deposited On: 01 Dec 2013 23:22
Last Modified: 02 Dec 2013 21:20

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