“Retail is detail! Give consumers a gift rather than a bundle”: Promotion framing and consumer product returns

Retailers often use the promotion strategy of offering supplementary products (e.g., free gift, bundle) to attract consumers and increase sales. Despite the growing literature on the promotions that are differently framed but offer economically identical values, little research has examined the link between promotion framing and consumer product returns. The current article sheds light on this relationship, hypothesizing that a free gift promotion would be superior to a bundle promotion in reducing consumer product returns. The findings suggest that a gift‐framed promotion leads to a lower product return intention than an economically equivalent bundle promotion, because consumers tend to perceive more loss from giving up the gift‐framed (vs. bundle‐framed) deal. Further, this study examines a moderating role of brand familiarity (familiar vs. unfamiliar) and shows that the merits of free gift framing on product return intention via perceived loss are amplified (attenuated) when the promoted brand is familiar (unfamiliar). Overall, the investigations of this study imply that it is better to frame a promotion as a “free gift” than a “bundle” to increase perceived loss in returning the purchase and thus to decrease consumer product returns. This strategic intervention works especially when the gift is offered by familiar brands.     

Verticality in product labels and shelves as a metaphorical cue to quality

This study investigates how subtle visual cues related to the design of a product's package (i.e., label position) and the context (i.e., shelf orientation) influence consumer evaluation and behavioral intention. Extending research on metaphorical cues, Study 1 shows that consumers perceive a product as more powerful when the label on the package is placed in a higher (vs. lower) vertical position. Extending the focus from package design to the display context of packages, Study 2 shows that consumer perception of a product's power is similarly enhanced when the package is placed on a shelf that is vertically (vs. horizontally) orientated. Across both studies effects of enhanced power perception extend to positively influence product quality inferences and behavioral intentions. These findings add to current knowledge on metaphorical cues in package design and the package's presentation context and offer insights into the underlying mechanism.     

Extremity in horizontal and vertical Likert scale format responses. Some evidence on how visual distance between response categories influences extreme responding

In four survey experiments we show that people generally answer more extremely to survey items presented in vertical versus horizontal Likert formats. Our findings suggest that this effect may be at least partly driven by differences in the visual range spanned by the response scale (i.e. the visual distance between endpoint response categories is larger in horizontal than in a vertical format). In addition, compared to traditional horizontal Likert data, vertical Likert data contain more variance, which is mainly non-substantive. As a result, data obtained with scale formats that have different distances between response categories (as is typically the case for vertical vs. horizontal formats) may lead to differences in measurement model parameter estimates like residual terms, and in some cases factor loadings and construct correlations. Based on these results, we provide recommendations on the use of response scale formats in online surveys, bearing in mind that several online survey tool providers promote the use of vertical Likert formats and even automatically change traditional horizontal formats of Likert-type items to vertical Likert formats when viewed on small screens (e.g., on mobile phones).     

How much to give? — The effect of donation size on tactical and strategic success in cause-related marketing

In cause-related marketing (CM), companies promise a donation to a cause every time a consumer makes a purchase. We analyze the impact of the size of this donation on brand choice (tactical success) and brand image (strategic success). Our results reveal different effects of donation size on these success measures. For brand choice, the effect of donation size is moderated by a financial trade-off for consumers, whereas the effect on brand image is moderated by donation framing. Specifically, we show that donation size has a positive effect on brand choice if consumers face no financial trade-off; i.e., if they do not have to choose between triggering a donation or saving money. The effect is negative if a trade-off exists such that higher donations come at higher costs. Brand image is enhanced by larger donations if the framing is nonmonetary (e.g., the campaign promises the provision of vaccinations), whereas donation size has a negative effect if donation framing is monetary (e.g., the campaign states the Euro amount). If campaigns use a combination of both frames, the effect of donation size on brand image has an inverted U shape. Our results suggest that CM enhances tactical and strategic success only if firms select the right donation size, taking into account donation framing and financial trade-offs.     

The framing effect of coupon value for new products: an empirical study in China

Two experiments tested the coupon framing effect with both existing products and new products, whereby the percentage-off format (vs. cents-off format) held an overall advantage in consumers' value perception, thus leading to higher purchase intention. We also found that different product price levels (high vs. low) and product types (physical goods vs. services) moderated this framing effect. Moreover, the context of new products' purchase significantly made this effect more salient than that in existing products. These results could contribute to the guidance of price and promotion strategy for business practitioners, especially in new product launch management.     

Positively versus negatively framed product attributes: The influence of involvement

Previous studies have shown that the positive framing of a meat product attribute (i.e., 75% lean) results in more positive evaluation of the product than its presumed equivalent negative framing (25% fat). Other framing studies, particularly those dealing with health messages, show mixed results, although there is a tendency in favor of negative framing. Involvement has been hypothesized to account for these conflicting results, in that under high‐involvement conditions, negative framing has been found to be superior, with positive framing superior under low‐involvement conditions. This article replicates the original meat product study with respect to product attribute framing, and extends this by analyzing the data with respect to subjects' involvement in dietary fat decisions. The study also explores the relationship between framing effects and the influence of the frame on some decision‐making reference point. © 1999 John Wiley & Sons, Inc.     

Feeling lucky: How framing the target product as a free gift enhances purchase intention

The present research investigates how consumers respond to alternate premium promotion framings that have equal value (e.g., “buy a flash drive and get a free earphone” vs. “buy an earphone and get a free flash drive”). We show that the counterintuitive framing of the target (vs. non-target) product as a free gift makes consumers feel lucky, which in turn increases their purchase intention for the product bundle. We further show the effects of two moderators—salience of targeting and promotion magnitude, such that the main effect is mitigated when the marketer’s targeting efforts are salient for consumers and when the target product is price discounted but not free. Four studies (i.e., a lab study, two online experiments, and a field experiment involving actual purchases of the promoted products) for a range of products and services across two countries provide converging evidence supporting the hypotheses. The findings contribute to the literatures on bundle framing effects, pricing, and luck research in marketing, and have practical implications on designing more effective promotions for both online and brick-and-mortar retailers.     

Retail Shelf Allocation: A Comparative Analysis of Heuristic and Meta-Heuristic Approaches

This research presents a retail shelf-space decision model that incorporates a nonlinear profit function, vertical and horizontal location effects, and product cross-elasticity. We propose a linear programming formulation of the nonlinear profit function that can solve the shelf-space problem optimally. We describe potential advances in heuristic and meta-heuristic algorithms and compare the approaches through simulations and a field experiment. We discuss the impact of the number of item facings, vertical location, and horizontal location (e.g., we find the vertical location effect is approximately double the size of the horizontal location effect on profit performance).     

Consumer choices under product option framing: Loss aversion principles or sensitivity to price differentials?

The effects of options framing can be theoretically explained by loss aversion principles as well as by potential alternative explanations (e.g., sensitivity to price differentials). This paper examines the interaction effects between option framing and two types of cognitive constraints (availability of cognitive resources and additional redundant product information) on consumer choices for adding or deleting optional product features. In the process, the research attempts to provide empirical support for one theoretical model (e.g., loss aversion principles) versus the other (e.g., sensitivity to price differentials). The results support the hypotheses that consumers choose a higher number of product options when starting from a fully loaded model than from a base model, and that this effect is magnified when consumers make choices under high cognitive constraints. In essence, the results empirically support the theoretical premise of the effects of option framing being driven by loss aversion principles than by diminished sensitivity to price differentials. © 2008 Wiley Periodicals, Inc.     

Serial product evaluations online: A three-factor model of leadership,fluency and tedium during product search

In any product search process, consumers encounter multiple products. In today's online retail environment, such product encounters are increasingly serial, such that consumers review products back-to-back (e.g., through swiping in mobile apps). The present research shows that for the serial evaluation of products, the serial position matters through an interaction of a leadership bias, conceptual fluency and tedium. During a product search, evaluations follow an S-shaped pattern consisting of (1) a primacy phase of declining evaluations (caused by a leadership bias towards the first product), (2) a wear-in phase of increasing evaluations (caused by increasing conceptual fluency after a recognition of the shared attributes of the product category), and (3) a wear-out period of declining evaluations (caused by tedium). Ten empirical investigations in an e-commerce setting granularly trace these three phases, establishing conceptually related overall boundary conditions (matching vs. searching products) and moderators (conditional vs. unconditional searching, product similarity, conceptual category knowledge, product image complexity) of the S-shaped pattern of serial product evaluations.     

Consumers as time travellers: the moderating effects of risk perception and construal level on consumers’ responses to temporal framing

Abstract

This study investigated the conditions under which temporal framing is more effective in explaining consumers’ responses to ads. Two experiments were conducted with a 2 (temporal framing: near-future vs. distant-future benefits) × 2 (perceived risk: high vs. low) × 2 (construal level: high vs. low) between-subjects factorial design. In Experiment 1, the two-way interaction effect of temporal framing and perceived risk on ad attitudes and purchase intention was found, such that the near-future benefit frame generated more favourable responses to the ad under the high-risk condition. Incorporating construal level theory, the three-way interaction effect was found, with the temporal framing?×?perceived risk interaction appearing more pronounced for low construal consumers only. Experiment 1 also discovered that information diagnosticity mediated the interaction effect of temporal framing and perceived risk on ad attitudes and purchase intention and this mediating process appeared stronger for low construal consumers. Experiment 2 replicated the two-way and three-way interaction effects on purchase intention, providing evidence of the validity of the findings. Theoretical and managerial implications were discussed for researchers and practitioners.     

Turning the other cheek: Facial orientation influences both model attractiveness and product evaluation

The layout of visual elements in advertising influences consumers' perception and judgments. The research reported here investigates the influence of the face orientation of a human model on the perception of their attractiveness and its downstream consequences on product evaluation. Across five experiments, we first demonstrate that consumers tend to perceive a model's face showing his or her left cheek as more attractive than when showing the right cheek, even when the images are otherwise identical. More importantly, we demonstrate the downstream influence of face orientation on the evaluation of advertised products whereby the leftward (vs. rightward) model's face increases the evaluation of the advertised product through perceived model attractiveness. We identify the underlying mechanism of the face orientation effect, namely, that consumers perceive those faces showing their left (vs. right) cheek as more prototypical, and that this perception of prototypicality elicits an aesthetic preference for the model's leftward face which in turn carries over to influence product evaluation. The theoretical and practical implications of this research are also discussed.     

How information processing and mobile channel choice influence product returns: An empirical analysis

The mobile internet is starting to overtake the desktop device‐based internet as a purchase channel. Its impact on consumer behavior is therefore increasingly important to understand. This study seeks to understand and measure, if usage of mobile devices for online purchases leads to a lower decision quality and, in effect, to more product returns. In doing so, the impact of information environments on the end‐to‐end consumer purchase decision‐making process is better understood and it is investigated, if the information environment of mobile devices leads consumers to take more error‐prone purchase decisions. An exclusive data set spanning more than 140 million transactions of a European online retailer is used to empirically analyze changes in product return behavior after mobile channel adoption. The results show that mobile channel usage is positively related to product returns, overall and for both, purchases made with mobile devices and purchases made with desktop devices, although prior literature predicts that returns from desktop purchases should not increase. These findings suggest that through new channels, consumers’ information environment is altered sufficiently to affect their decision accuracy. Moreover, the results indicate that previous research may be overestimating the positive effect of mobile channel adoption on sales by disregarding changes in product return behavior.     

The impact of self-construal and message frame valence on reactance: a cross-cultural study in charity advertising

In the context of charity advertising, this two-study design project aims to contribute at the intersection of three literatures: psychological reactance theory (PRT), messaging framing, and self-construal theory. Using a survey with student samples from the US and China, Study 1 demonstrated that self-construal affected reactance, such that independent self-construal was more associated with reactance. Further, it outperformed cultural background in predicting reactance. People with predominantly interdependent self-construals showed higher intention to purchase a product with social causes. Study 2 was a 2 (framing: gain vs. loss)?×?2 (self-construal: independent vs. interdependent) between-subjects experiment using a non-student sample in the US results on the associations between self-construal and reactance and the intent to donate were consistent with findings of Study 1. Study 2 also indicated that compared to gain-framed appeals, using loss-framed appeals in charity advertising generated more reactance, the gap was more pronounced among individuals with relatively higher interdependent self-construals (i.e. moderate and high levels of interdependent-independent self-construal). This project offers important theoretical and applied implications and provides a robust avenue for future research. Limitations were also outlined.     

Saving Behavior Messaging: Gain/Loss Framing,Self/Family Orientations,and Individual Differences in Collectivism

As the United States faces low savings rates and an aging population, examining messages that encourage saving behavior is critical. Adding to this need is growth in ethnic minority groups (e.g., Hispanic Americans) that tend to experience greater saving challenges. The current study tested framing effects (i.e., loss/gain), in tandem with message orientation (i.e., self/family) and the moderating role of collectivism, on ad response variables after exposure to public service advertisements about saving. Results across three experiments confirm that matching the level of collectivism with orientation impacted the effect of framing on the outcome measures but that individual differences in collectivism impacted the results more than membership in an ethnic group. Loss framing for both low and high collectivistic individuals, when matched with a self-oriented appeal in the former and a family-oriented appeal in the latter, were most effective. Gain framing was more effective when level of individual collectivism was not matched with self/family message orientation. Important theoretical issues are addressed as well as implications for advertisers who engage in saving behavior messaging.     

The Effect of Implicit versus Explicit Comparisons on Temporal Pricing Claims

Existing research has investigated the "pennies-a-day" strategy of reframing an "aggregate" expense as a "per day" expense (Nagle & Holden, 1995; Price 1995; Gourville 1998). This paper extends this research by considering the incremental impact on compliance of explicitly comparing the cost of a transaction to a specific petty cash expense (e.g., a cup of coffee). We show that in the presence of a per day framing of price (e.g., $1 per day), an explicit comparison provides little added value. However, we also show that in the presence of an aggregate framing of price (e.g., $350), an explicit comparison to a petty cash expense is sufficient to generate a "pennies-a-day" perspective. We conclude that it is not the per day framing, per se, which drives "pennies-a-day" effectiveness, but the petty cash comparisons that such a framing either implicitly or explicitly generates.     

Out-of-stock,sold out,or unavailable? Framing a product outage in online retailing

Terms, such as “out-of-stock,” “sold out,” and “unavailable” are commonly used by retailers to communicate a product or brand outage. Although these terms are technically equivalent, prior research on product outage and product scarcity suggest that they may be interpreted and processed differently by consumers. The present research investigated whether the manner in which a product outage was framed elicited different consumer behavioral intentions, attributions, and perceptions in the context of online retailing. Data were collected by means of an online experiment. The experiment incorporated a hypothetical scenario approach in which research participants were asked to react to a particular combination of treatment and blocking factors. Results demonstrated that ceteris paribus, framing a product or brand outage as “sold out” produces fewer negative product and website reactions than does framing it as “out-of-stock” or “unavailable.”     

Framing and situational ethics

Prospect theory (Kahneman and Tversky, 1979) suggests a number of subjective biases to which human judgment is prone (such as the framing effect). Economic consequences of such biases have received ample attention; however, potentially important ethical implications have been neglected. We conducted an experiment in which 81 M.B.A. students were asked to choose between two courses of action, one less ethical than the alternative. Printed scenarios varied the framing of the choice problems. Findings suggest that the propensity to choose a less ethical course of action over a more ethical alternative can be influenced by how a decision problem is described or framed.     

Biased and overconfident,unbiased but going for it: How framing and anchoring affect the decision to start a new venture

Cognitive heuristics, biases, and overconfidence have been suggested as an explanation for entrepreneurial entry. Nevertheless, empirical research on the subject has produced mixed findings and has under-explored the cognitive mechanisms leading to overconfidence in entrepreneurial settings. In two within-subject experiments, we focus on three cognitive heuristics—reference point framing, outcome salience framing, and anchoring in conjunctive events—and examine their effects on perceived risk, confidence, required and estimated probabilities of success, and the decision to start a new venture. Our findings show that reference point framing and outcome salience framing affect the decision to enter directly and indirectly via risk perception, but do not affect confidence. In addition, the effect of anchoring is contingent on the congruence between its semantic and its numeric influences. Overconfidence only obtains when the numeric and semantic influences of anchoring are aligned and aimed at enhancing the salience of potential positive outcomes, i.e., through high probabilities of success.     

Framing and Efficacy: The Effect of Regulatory Fit on Skin Cancer Prevention and Detection

Australia has one of the highest rates of skin cancer in the world, representing 80% of all diagnosed cancers each year (Cancer Council Australia, n.d. Cancer Council Australia. (n.d.). Citing Websites. In Skin Cancer Facts and Figures. http://www.cancer.org.au/cancersmartlifestyle/SunSmart/Skincancerfactsandfigures.htm (http://www.cancer.org.au/cancersmartlifestyle/SunSmart/Skincancerfactsandfigures.htm)  [Google Scholar]). The dissemination of information regarding the prevention and detection of skin cancer through social marketing campaigns is a vital element in protecting the well being of Australians. In drawing on self-regulatory focus theory, this study is the first to examine the role of message framing (i.e., gain framing vs. loss framing) in conjunction with an individual's efficacy appraisals (i.e., self-efficacy vs. response efficacy) associated with skin cancer behaviors (i.e., prevention vs. detection behaviors). Findings show the effectiveness of social marketing campaigns is contingent upon good “regulatory fit,” which is achieved when gain framing is coupled with self-efficacy appeals and loss framing is coupled with response-efficacy appeals. For social marketers, who constantly strive to maximize the effectiveness of advertising expenditure, the findings of this study are highly significant.