The effect of promotional message framing on consumer response : price discount vs cashback

Name: Chanattha Pornvanitchakit

keyword: Prospect theory

; Framing effect

; Cashback

; Price discount

; Percentage discount

; Absolute discount

Abstract: The message framing effect that has been studied from many scholars in several areas such as medical health, nutrition and especially in marketing field, which result from several studies, shows that message framing played an important role in shaping consumer’s perception, behavioral and intention (Gamliel and Herstein, 2011 ; Gendall et al., 2006 ; Radavičienė et al., 2019). There are many studies and researches that looked into various concepts of message framing such as “Absolute vs Percentage discount” (González et al., 2016), “Save if you purchase vs Lose if you don’t purchase” (Gamliel & Herstein, 2011), “Miles is number to be earned vs The number of miles to be redeemed” (Ammar, 2018) and “pay 80% vs get 20% off” (Kim& Kramer, 2016). The result from previous studies indicated that the impact of the negative framed message was much stronger than the impact of the positive framed message which is in line with prospect theory (Kahneman & Tversky, 1979). However, the introduction of internet and online shopping have changed the landscape of brick&mortar retail and with it, a new form of promotion called “cashback” (Christino et al., 2019). This research will be conducted in order to understand the effect of message framing on discount promotion with focus on “price discount versus cashback” in form of “percentage deal unit” versus “absolute Baht deal unit”. This study examined the frame of promotion message between “positive frame” and “negative frame” to see which framing method would generate higher impact on consumers’ perception and create greater response. Both quantitative and qualitative approach were adopted in this research, data was collected through online questionnaires as well as in-depth interview by phone. The results of hypothesis testing showed that there was not much different in terms of savings perception and purchase likelihood between price discount and cashback framing, but respondents slightly perceived more saving and have higher intention to buy the product when the discount was presented with the positive framing relative to negative framing. In case of percentage vs absolute deal unit, the way in which the discount was framed had little effect on respondents’ preferences for high- price product whereas respondents preferred the percentage off savings frame over the amount off savings frame for cheap product

Thammasat University. Thammasat University Library

Address: BANGKOK

Email: preserv@tu.ac.th

Name: Alisara Charinsarn

Role: advisor

Created: 2020

Modified: 2022-12-21

Issued: 2022-12-21

วิทยานิพนธ์/Thesis

application/pdf

DOI: 10.14457/TU.the.2020.412

eng

DegreeName: Master of Business Administration

Level: Master's Degree

Descipline: Global Business Management

Grantor: Thammasat University

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