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The framing effect of coupon value for new products: an empirical study in China

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Two experiments tested the coupon framing effect with both existing products and new products, whereby the percentage-off format (vs. cents-off format) held an overall advantage in consumers' value perception, thus leading to higher purchase intention. We also found that different product price levels (high vs. low) and product types (physical goods vs. services) moderated this framing effect. Moreover, the context of new products' purchase significantly made this effect more salient than that in existing products. These results could contribute to the guidance of price and promotion strategy for business practitioners, especially in new product launch management.
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Keywords: coupon value; framing effect; new products; price perception; purchase intention

Document Type: Research Article

Affiliations: School of Management, Fudan University, Shanghai, China

Publication date: 2012-05-01

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