The Effect of Non-Monetary Framing Sales Promotion on Customer’s Purchase Intention with Believability of the Deal Offer As Mediation Variables
Abstract
This research aims to analyze the effect of different promotion frame with the same value (framing sales promotion) on customer purchase intention for famous brand cosmetic products with expensive price. Believability of the deal offer variable assumed as intermediating the effect of framing sales promotion on customer purchase intention. The previous study result mentioned that promotion which cannot be trusted (too good to be true) will make the customer uninterested towards offered promotion. Furthermore, the believability of the deal offer from promotion framings is still rarely studied although the research limitation mentioned that the credibility of a promotion is an important thing to be tested and potential variable is a kind of media for identifying a relationship between framing effect and customer purchase intention. Previous research more often conducted on a form of monetary promotion such as discount promotion while research on non-monetary promotions is still rarely done. Design experiment method three (free gift, buy two Get one free, extra content) x one (famous brand) between subject factorial design are implemented for collecting data. Data collection was performed on career women and housewives. Data analysis technique will be using One Way ANOVA, while ANCOVA will be used to test the mediation effect of believability of the deal offer.
Keywords: framing sales promotion, non-monetary promotion, purchase intention, believability of the deal offer, experiment
References
[1] Jones, J. M. (2008). An Exploratory Study on Attitude Persistence Using Sales Promotions, Journal of Managerial Issues, vol.20, no.3, pp.401-416.
[2] D’Astous, Alain. and Jacob, Isabella. (2002). Understanding Consumer Reactions to
[3] Montaner, T. Chernatoni, L. de. and Buil, Isabel. (2011). Consumer Response to Gift Promotion, Journal of Product & Brand Management, vol. 20, no, 2, pp.101-110.
[4] Buil, Isabel. Chernatony, L. de. and Montaner, Teresa. (2013). Factors Influencing Consumer Evaluations of Gift Promotions. European Journal of Marketing, vol. 47, no. 3 /4, pp. 574-595.
[5] Sinha, Indrajit. and Smith, M.F. (2000. Consumers Perceptions of Promotional Framing of Price, Psychology & Marketing, vol. 17, no. 3, pp. 257- 275.
[6] Thaler, H.R. (1983), Mental Accounting and Consumer Choice, Marketing Science, vol. 4, no. 3, pp. 139-2214.
[7] Monroe, K.B. and Chapman, J.D. (1987). Framing Effects on Buyer’s Subjective Product Evaluation, Advances in Consumer Research, vol.14, pp.193-197.
[8] Chandon, P. Wansink, B. and Laurent, G. (2000). A Benefit Congruency Framework of Sales Promotion Effectiveness, Journal of Marketing, vol. 64, no. 4, pp. 65-81.
[9] Yoo, Boonghe. Dongthu, Naveen., and Lee, Sungho. (2000). An Examination of Selected Marketing Mix Elements and Brand Equity, Journal of the Academy of Marketing Science, vol. 28, no. 2, pp. 195-211.
[10] Mela, Carl, F. Gupta, Sunil. and Lehman, Donal. R. (1997). The Long-Term Impact of Promotion and Advertising on Consumer Brand Choice, Journal of Marketing Research, vol. 34, no. 2, pp. 248-261.
[11] Chang, Chingching. (2009). Effectiveness of Promotional Premiums: The Moderating Role of Affective State in Different Contexts, Psychology & Marketing, vol. 26, no. 2, pp. 175-194.
[12] Ong, Beng Soo. Nin Ho, Foo. Tripp, Carolyn. (1997). Consumer Perceptions of Bonus Packs: An Exploratory Analysis, Journal of Consumer Marketing, vol.14, no. 2, pp. 102-112.
[13] Ong, Beng Soo. (1999). Determinants of Purchase Intentions and Stockpiling Tendency of Bonus Packs, American Business Review, pp. 57-64.
[14] Compeau, Larry D. and Grewal, Dhruv. (1998). Comparative Price Advertising: An Integrative Review, Journal of Public Policy & Marketing, vol.17, no. 2, pp. 257-273. Premium-Based Promotional Offer, European Journal of Marketing, vol. 36, no. 11/12, pp. 1270-1286.
[15] Diamond, W.D. (1992). Just What is a” Dollar’s Worth”? Consumer Reaction to Price Discount vs Extra Product Promotions, Journal of Retailing, vol. 68, no.3, pp. 254-270.
[16] Campbell, Leland. and Diamond, W. D. (1990). Framing and Sales Promotions: The Characteristics of a Good Deal, Journal of Consumer Marketing, vol.7, no.4, pp. 25- 31
[17] Palazon, Mariola. and Delgado-Ballaster, Elena. (2009a). Effectiveness of Price Discount and Premium Promotion, Psychology & Marketing, vol. 26, no. 12, pp. 1108- 1129
[18] Kim, Min Hyeong. and Kramer, Thomas. (2006). Pay 80% versus “get 20% off: The Effect of Novel Discount Presentation on Consumers’ Deal Perceptions, Market Lett, vol. 17, pp. 311-321.
[19] Chen, S.F. Monroe, K.B. and Lou, Y.C. (1998). The Effects of Framing Price Promotion Messages on Consumers’ Perceptions and Purchase Intentions, Journal of Retailing, vol. 74, no.3, pp. 353-372.
[20] Gendal, Philip., Hoek, Janet. Pope, Tracy. and Young, Karen. (2006). Message Framing Effects on Price Discounting, Journal of Product & Brand Management, vol. 15, no.7, pp.458-465.
[21] Weisstein, Fei Lee. and Monroe, Kent B. (2009). Promotion Framing Effects on Consumers’ Perceptions of Customized Pricing, Extended abstract in Advances in Consumer Research, vol. 36, pp.716-717.
[22] Choi, Choongbeom. and Mattila, Anna. S. (2014). The Effects of Promotion Framing on Consumers’ Price Perceptions: The Moderating Role of a Personal Sense of Power, Journal of Service Management, vol. 25, no.1, pp. 149-160.
[23] McKechnie, Sally. Devlin, James. Ennew, Christine. and Smith, Andrew. (2012). Effects of Discount Framing in Comparative Price Advertising, European Journal of Marketing, vol. 46, no. 11/12, pp. 1501-1522.
[24] Gupta, Sunil. and Cooper, L.G. (1992). The Discounting of Discount and Promotion Threshold, Journal of Consumer Research, vol. 19, pp. 401-411.
[25] Raghubir, Priya. (2004). Free Gift with Purchase: Promoting or Discounting the Brand?”, Journal of Consumer Psychology, vol. 14, no. 1&2, pp. 181-185.
[26] Swani, Kunal. and Yoo, Boonghee. (2010). Interaction between Price and Price Deal, Journal of Product & Brand Management, vol. 19, no. 2, pp. 143-152.
[27] Kahneman, D. and Tversky, A. (1979). Prospect Theory: An Analysis of Decision Under Risk. Econometric, vol. 47, pp. 263-291.
[28] Diamond, D. William, and Johnson, R. Robert. (1990). The Framing of Sales Promotions: an Approach to Classification, Advances in Consumer Research, vol. 17.
[29] Seipel, C.M. (1971). Premiums – Forgotten by Theory, Journal of Marketing, vol. 32, no. 2, pp. 26 – 34.143-15
[30] Dodds, W.B. Monroe, K.B. and Grewal, D. (1991).The Effects of Price, Brand name, and Store Information on Buyers Perceptions of Product Evaluations, Journal of Marketing Research, vol. 28, no. 3, pp. 307-319.
[31] Assael, Henry. (2001). Consumer Behavior and Marketing Action. New York, South – Western College.
[32] Grewal, D. Monroe, K.B. and Krishnan, R. (1998)a. The Effects of Price-Comparison Advertising on Buyers’ Perceptions of Acquisition value, Transaction Value and Behavioral Intention, Journal of Marketing, vol.62, No.2, pp.46-59.
[33] Grewal, D. Krishnan, R. Baker, Julie. and Borin, Norm. (1998)b. The Effects of Store Name, Brand Name and Price Discount on Consumers’ Evaluations and Purchase Intention, Journal of Retailing, vol. 74, no.3, pp.331-325.
[34] Munger, L.J. and Grewal, D.(2001). The Effects of Alternative Price Promotional Methods on Consumers’ Product Evaluations and Purchase Intentions, Journal of Product & Brand Management, vol.10, no, 3, pp. 185-197.
[35] Devlin, James. Ennew, Chistine. McKechnie, Sally. and Smith, Andrew. (2007). A Study of Time Limited Price Promotions, Journal of Product & Brand Management, vol. 16, no. 4, pp. 280-285.
[36] Palazon, Mariola. and Delgado-Ballaster, Elena. (2009b). The Moderating of Price Consciousness on the Effectiveness of Price Discount and Price Premium Promotions, Journal of Product & Brand Management, vol. 18, no, 4, pp.306-312
[37] Lowe, Ben. (2010). Consumer Perceptions of Extra Free Product Promotions and Discount: the Moderating Role of Perceived Performance Risk, Journal of Product & Brand Management, vol. 19, no.7, pp. 496-503.
[38] Simonson, I. Carmon, Z. and O, Curry, S. (1994). Experimental Evidence on The Negative Effect of Product Features and Sales Promotion on Brand Choice, Marketing Science, no. 13, pp. 23-40.