Discounts and consumer search behavior: The role of framing
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Description
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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| ID Code: | 220368 | ||
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| Item Type: | Contribution to Journal (Journal Article) | ||
| Refereed: | Yes | ||
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| Measurements or Duration: | 10 pages | ||
| DOI: | 10.1016/j.joep.2013.08.003 | ||
| ISSN: | 0167-4870 | ||
| Pure ID: | 32566569 | ||
| Divisions: | Past > QUT Faculties & Divisions > QUT Business School Current > Schools > School of Economics & Finance |
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| 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: | 06 Nov 2021 11:56 | ||
| Last Modified: | 01 Mar 2024 17:11 |
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