Price-framing effects on the purchase of hedonic and utilitarian bundles

Uzma Khan, Ravi Dhar

Research output: Contribution to journalArticlepeer-review

72 Scopus citations

Abstract

Marketers are increasingly offering bundles that combine crosscategory, seemingly unrelated items. This article examines the conditions under which framing a discount as savings on certain items of crosscategory bundles is more effective for increasing 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 rather 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 article concludes with a discussion of managerial implications of the findings.

Original languageEnglish (US)
Pages (from-to)1090-1099
Number of pages10
JournalJournal of Marketing Research
Volume47
Issue number6
DOIs
StatePublished - Dec 2010
Externally publishedYes

Keywords

  • Discounts
  • Framing effects
  • Hedonic-utilitarlan products
  • Pricing
  • Product bundles

ASJC Scopus subject areas

  • Business and International Management
  • Economics and Econometrics
  • Marketing

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