The Effects of Discount Location and Frame on Consumers’ Price Estimates

Devon DelVecchio, Arun Lakshmanan and H. Shanker Krishnan

Journal of Retailing, 2009, vol. 85, issue 3, 336-346

Abstract: A discount may be defined by the location in which, and frame by which, it is communicated. Discount framing, particularly the differences between cents-off and percentage-off discounts, has been widely studied. Discount location (e.g., proximate to or distal from regular price info) has received considerably less attention. We employ the proximity-compatibility principle and tenets of human memory to demonstrate that discount framing (cents-off, percentage-off, and revised price) and discount location (proximal, distal) interact to differentially affect both the immediate value and the persistence of consumers’ price estimates. The implications of these results for retailers and manufacturers are highlighted in the discussion.

Keywords: Discount location; Discount frame; On-pack discount (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (11)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jouret:v:85:y:2009:i:3:p:336-346

DOI: 10.1016/j.jretai.2009.05.010

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