THE EFFECTS OF FRAMING PRICE PROMOTION MESSAGES ON CONSUMERS PERCEPTIONS AND PURCHASE INTENTIONS

When implementing a price reduction, retailers tend to favor one pract ice over the other. Yet how different implementations of a price promo tion influence consumers' perceptions and purchase intentions has been insufficiently, studied. In this study, we framed a price reduction i n percentage versus dollar terms on either a high-price or a low-price product. For the high-price product, our subjects indicated that a pr ice reduction framed in dollar terms seemed more significant than the same price reduction framed in percentage terms, and the opposite was true for the low-price product. We also offered the same savings in ei ther coupon or discount promotions and found that coupon promotions we re evaluated more favorably and were more effective in changing subjec ts' purchase intentions. These results provide implications for when r etailers should stress the absolute versus the relative magnitude of d iscounts to advertise price promotions.