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Research: Price Framing Effects on Purchase of Hedonistic and Utilitarian Bundles « Research « Industry Resources « Downloads
|Date posted||November 30, -0001|
Marketers are increasingly offering bundles that combine cross-category, seemingly unrelated items. The paper examines the conditions under which framing a discount as savings on certain items of cross-category bundles is more effective for bundle purchase. Three experiments show that the purchase of a cross-category bundle is more likely when the discount is framed as savings on the relatively hedonic component than as savings on the utilitarian component or on the total bundle. The authors explain the findings based on the notion that a discount provides a justification that increases the likelihood of hedonic purchases but has little impact on utilitarian consumption. The paper concludes with a discussion of managerial implications of the findings.