Journal of Finance and Economics

Journal of Finance and Economics

ISSN: 2291-4951 (Print)    ISSN: 2291-496X (Online)

Volume 7 (2018), No. 1, Pages 20-29

DOI: 10.12735/jfe.v7n1p20

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Consumer Perceptions of Price Reframing in an In-Store Decision Context

Miyuri Shirai1 

1Faculty of Business and Commerce, Keio University, Tokyo, Japan

URL: https://doi.org/10.12735/jfe.v7n1p20

To Cite this Article     Article Views: 258     Downloads: 158  Since deposited on 2018-01-21

Abstract

This article compares consumer responses to price reframing methods in an in-store decision context where price comparisons among brands can be conducted. The methods examined are measure-based unit pricing, usage-based unit pricing, and temporal reframing of price. They differ in the unit used for calculating reframed prices: measure-based unit pricing uses weight or volume, usage-based unit pricing uses usage account, and temporal reframing of price uses time. This area of research has not been fully explored. Results from a laboratory experiment showed that measure-based and usage-based unit pricings were evaluated better than temporal reframing of price on usability, likeability, and comprehensibility. Also, measure-based unit pricing was the best at making the choice perceived easier, whereas usage-based unit pricing was the best at increasing the attractiveness of retail prices. Moreover, consumers who chose the brand with the lowest reframed price generated favorable price and quality perceptions for the chosen brand when usage-based unit pricing or temporal reframing of price was used but generated only favorable price perception when measure-based unit pricing was used.

JEL Classifications: M31, C91

Keywords: Price reframing, unit pricing, temporal reframing of price, price perceptions, in-store decision context

To Cite this Article: Shirai, M. (2018). Consumer perceptions of price reframing in an in-store decision context. Journal of Finance and Economics, 7(1), 20-29. https://doi.org/10.12735/jfe.v7n1p20

Copyright © Miyuri Shirai

Creative Commons License
This article is published under license to Science and Education Centre of North America. This is an Open Access article distributed under the terms of the Creative Commons Attribution 4.0 International License.

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Consumer Perceptions of Price Reframing in an In-Store Decision Context
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