Effects of discount framing in comparative price advertising

Purpose – The objective of this paper is to examine the framing effects of discount presentation format in comparative price advertising in a low‐price and a high‐price product context. In particular, the authors study whether identical discounts presented in percentage and absolute terms result in different consumer perceptions of transaction value and purchase intention. Although price promotions have been the subject of previous research, a closer examination of the potential moderating influence of discount size in both contexts is warranted.Design/methodology/approach – Two separate experiments were designed to isolate the effects of the manner in which discounts are numerically expressed and the size of the discount on consumers' perceptions of a retail price promotion in a low‐price and a high‐price product context.Findings – The effects of discount framing in comparative price promotions are found to be influenced by discount size in the case of the low‐product context but not the high‐price one.R...

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