Jungsil Choi and Hyun Young Park
This study aims to investigate the moderating role of hedonic and utilitarian purchase motives for the presentation order effect. Although past research finds that presenting item…
Abstract
Purpose
This study aims to investigate the moderating role of hedonic and utilitarian purchase motives for the presentation order effect. Although past research finds that presenting item first and price later (e.g. 70 items for $29) increases consumers’ purchase intention more than presenting the information in the opposite order (e.g. $29 for 70 items), the effect was mostly examined in a hedonic consumption context. This study examines whether the effect is applicable for hedonic purchases but is less applicable for utilitarian purchases, and why.
Design/methodology/approach
Seven experiments tested the moderating effect of purchase motives for the presentation order effect. Two serial mediation analyses were conducted to examine the underlying mechanism.
Findings
The “item-price” (vs “price-item”) order increases hedonic purchases, but not utilitarian purchases. Because consumers feel guilty about hedonic purchases, they engage in motivated information processing to perceive greater value from their hedonic purchase when item (benefit) information is presented first and price (cost) information is presented later. Perceiving greater value reduces guilt, which consequently increases hedonic purchases. In contrast, the order effect is not observed for utilitarian purchases that do not elicit guilt. When a price discount is offered, the order effect is reversed because actual savings justify hedonic purchases better than perceived savings resulting from motivated information processing.
Practical implications
When promoting hedonic products, marketers are recommended to present item information before price information, unless a price discount is offered, in which case the price should be presented first.
Originality/value
This research introduces a novel moderator for the presentation order effect and a novel underlying mechanism, driven by the motivation to alleviate guilt associated with hedonic purchases.
Details
Keywords
Jungsil Choi, Dorcia E. Bolton and Marija Grishin
This paper aims to explore how temporal distance influences the evaluation of partitioned pricing.
Abstract
Purpose
This paper aims to explore how temporal distance influences the evaluation of partitioned pricing.
Design/methodology/approach
The effect of temporal distance on the effectiveness of partitioned pricing is tested using data collected through experiments in the USA.
Findings
Study 1 reveals that people perceive partitioned pricing as more attractive than combined pricing, but only for a distant event. Study 2 reveals that individuals predisposed to global information processing perceive partitioned pricing as more attractive than combined pricing. However, for individuals who commonly engage in local processing, combined pricing was equally attractive as partitioned pricing. In Study 3, the authors examine a boundary condition and find that the joint effect of temporal distance and partitioned pricing is attenuated when the purchase is made for a gift in which consumers are assumed to pay less attention to a surcharge. In Study 4, the authors examine how partitioned pricing influences a consumer’s choice in terms of temporal distance.
Practical implications
The findings provide practical guidelines to business leaders looking for practical guidelines for pricing policy decisions.
Originality/value
Previous research shows that partitioned pricing is more effective in increasing consumers’ purchase intention and demand than combined pricing. In the present research, the authors introduce temporal distance as an important moderator that affects the effectiveness of partitioned pricing.
Details
Keywords
Jungsil Choi, Young Kyun Chang, Kiljae Lee and Jae D. Chang
This paper aims to explore how color-based visual sensation affects people’s judgment of other people and their environment. The authors focus primarily on uncovering the causal…
Abstract
Purpose
This paper aims to explore how color-based visual sensation affects people’s judgment of other people and their environment. The authors focus primarily on uncovering the causal mechanism in which such effect is mediated by warmth stereotype.
Design/methodology/approach
The authors used data collected from experiments and field surveys in the USA and South Korea.
Findings
Pilot study shows that an anonymous person against a warm color background (vs neutral and cold color background) is perceived to be one with warmer personality. Study 1 shows that warm (vs neutral) color in advertising increases a perceiver’s warmth stereotype and trust and, consequently, a favorable attitude toward the advertiser. Study 2 shows that color-based warmth of an e-commerce website increases a web user’s warmth stereotype and trust of the website and higher intention to purchase. Study 3 shows that the nurses’ perception of warmth from a hospital’s ambient color affects their favorable judgment of the hospital and intention to take on an extra role. Importantly, all effects observed across studies were mediated by the activation of warmth stereotype.
Practical implications
The findings provide practical guidelines to companies for the usage of colors in crafting advertising artifacts, designing a website and creating a workplace environment to induce positive attitudes and motivations toward each target.
Originality/value
The extant research on warmth experiences focuses on tactile sensation as a key independent variable and transient mood as a dominant mediator. This study extends the stream of research by adopting perceived visual sensation as an independent variable and warmth stereotype as a new mediating construct.