Abstract:

This paper studies the different impacts of two discount frames, “Off” and “Zhe”, on consumers’ perceived value. We adopt the regulatory fit theory to elucidate the discount framing effect. In study 1, regulatory focus is manipulated through activating participants “ideal self” or “actual self”. We found that “Off” is perceived of higher value for participants with a promotion focus while “Zhe” is perceived of higher value for those with a prevention focus. In study 2, participants are primed with different regulatory goals. We found similar results under high-depth promotion. Under low-depth promotion, we found that “Off” is perceived to provide more value than “Zhe”. In study 3, we measured participants’ regulatory tendency and examined the frames (i.e., “Off” and “Zhe”) stated in absolute values and percentages simultaneously. We found that the fit between regulatory focuses and discount frames only held when discounts were stated in percentages. When stated in absolute values, “Off” was perceived of higher value than “Zhe”. Finally, marketing implications, limitations, and future studies are discussed.

Key words: Discount Frame, “Off”, “Zhe”, Regulatory Fit, Promotion Focus, Prevention Focus