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The effects of regulatory focus and bundle-pricing framing on consumers' perceptions of loss

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Abstract:

Regulatory focus theory identifies 2 kinds of orientation: a promotion-focused system in which the emphasis is on getting maximum gains; and a prevention-focused system in which the emphasis is on decreasing loss. These different orientations elicit different responses when bundle-pricing framing is encountered. This study was an investigation of the relationship between regulatory focus and bundle-pricing framing for different need levels. The results indicate that regulatory focus leads to differences in perceived loss for different bundle-pricing framing scenarios, particularly when the user needs only 1 product in the bundle. Thus, firms that use this strategy must determine whether or not bundle-price framing is suitable for regulatory focus at different need levels.

Keywords: BUNDLE PRICING; LOSS AND GAIN; PREVENTION-FOCUSED REGULATORY FOCUS; PROMOTION-FOCUSED REGULATORY FOCUS

Document Type: Research Article

DOI: http://dx.doi.org/10.2224/sbp.2011.39.1.113

Publication date: February 1, 2011

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