In a series of three studies, we explore the effectiveness of two types of discount frames—add-on discount frame (ADF) and bundle discount frame (BDF)—in driving consumers’ purchase intentions for cross-category, add-on travel bundles. Consistent with the analytical mindset induced by a utilitarian core product, we found that an ADF is most effective in driving purchase intentions for utilitarian core-hedonic add-on bundles due to the heightened sense of savings and ease of justification (Study 1). Conversely, consumers tend to adopt a heuristic mindset when evaluating a hedonic core product. Hence, heightened perceptions of attractiveness associated with a BDF (vs. ADF) yield higher purchase intentions for hedonic core-utilitarian add-on bundles (Study 2). Study 3 provides process evidence for the hypothesized effects.
BhaduriGargiCopelandLauren. 2021. “Going Green? How Skepticism and Information Transparency Influence Consumers’ Brand Evaluations for Familiar and Unfamiliar Brands.” Journal of Fashion Marketing and Management25 (1): 80–98.
4.
BottiSimonaMcGillAnn L.2011. “The Locus of Choice: Personal Causality and Satisfaction with Hedonic and Utilitarian Decisions.” Journal of Consumer Research37 (6): 1065–78.
5.
CalderBobby J.PhillipsLynn W.TyboutAlice M.1981. “Designing Research for Application.” Journal of Consumer Research8 (2): 197–207.
6.
ChakravartiDipankarKrishRajanPaulPallabSrivastavaJoydeep. 2002. “Partitioned Presentation of Multicomponent Bundle Prices: Evaluation, Choice and Underlying Processing Effects.” Journal of Consumer Psychology12 (3): 215–29.
7.
ChernevAlexander. 2004. “Goal–Attribute Compatibility in Consumer Choice.” Journal of Consumer Psychology14 (1-2): 141–50.
8.
ChernevAlexanderBöckenholtUlfGoodmanJoseph. 2015. “Choice Overload: A Conceptual Review and Meta-Analysis.” Journal of Consumer Psychology25 (2): 333–58.
9.
ChitturiRavindraRaghunathanRajagopalMahajanVijay. 2007. “Form versus Function: How the Intensities of Specific Emotions Evoked in Functional Vversus Hedonic Trade-Offs Mediate Product Preferences.” JMR, Journal of Marketing Research44 (4): 702–14.
10.
ChitturiRavindraRaghunathanRajagopalMahajanVijay. 2008. “Delight by Design: The Role of Hedonic versus Utilitarian Benefits.” Journal of Marketing72 (3): 48–63.
11.
ChoiJungsilLiYexin JessicaRanganPriyamvadhaChatterjeePromotheshSinghSurendra N.2014. “The Odd-Ending Price Justification Effect: The Influence of Price-Endings on Hedonic and Utilitarian Consumption.” Journal of the Academy of Marketing Science42 (5): 545–57.
12.
ChoiJungsilMadhavaramSreedhar R.ParkHyun Young. 2020. “The Role of Hedonic and Utilitarian Motives on the Effectiveness of Partitioned Pricing.” Journal of Retailing96 (2): 251–65.
13.
CurranPaul G.2016. ““Methods for the Detection of Carelessly Invalid Responses in Survey Data.” Journal of Experimental Social Psychology66: 4–19.
14.
de Oliveira SantiniFernandoLadeiraWagner JúniorSampaioCláudio HoffmannFalcãoClécio Araújo. 2015. ““Perception of Value, Attractiveness and Purchase Intention: Revisiting Promotion Techniques Sale.” Review of Business Management17 (56): 1173–92.
15.
DharRaviWertenbrochKlaus. 2000. “Consumer Choice between Hedonic and Utilitarian Goods.” JMR, Journal of Marketing Research37 (1): 60–71.
16.
EttingerAndreaGrabner-KräuterSonjaOkazakiShintaroTerlutterRalf. 2021. “The Desirability of CSR Communication Versus Greenhushing in the Hospitality Industry: The Customers’ Perspective.” Journal of Travel Research60: 618–38. doi:10.1177/0047287520930087
17.
EversEllen R. K.InbarYoelZeelenbergMarcel. 2014. “Set-Fit Effects in Choice.” Journal of Experimental Psychology General143 (2): 504–9.
18.
GonzálezEva M.EstevaEduardoRoggeveenAnne L.GrewalDhruv. 2016. “Amount Off Versus Percentage Off—When Does It Matter?.” Journal of Business Research69 (3): 1022–7.
19.
GuiltinanJoseph P.1987. “The Price Bundling of Services: A Normative Framework.” Journal of Marketing51 (2): 74–85.
20.
HanksLydiaMattilaAnna S.2014. “The Impact of Gender and Prepurchase Mood on Consumer Guilt After a Travel Purchase.” Journal of Travel Research53 (5): 625–37.
21.
HarlamBari A.KrishnaAradhnaLehmannDonald R.MelaCarl. 1995. “Impact of Bundle Type, Price Framing and Familiarity on Purchase Intention for the Bundle.” Journal of Business Research33 (1): 57–66.
22.
HayesAndrew F.2017. Introduction to Mediation, Moderation, and Conditional Process Analysis: A Regression-Based Approach. 2nd ed.New York, NY: Guilford Publications.
23.
HeitmannMarkLehmannDonald R.HerrmannAndreas. 2007. “Choice Goal Attainment and Decision and Consumption Satisfaction.” JMR, Journal of Marketing Research44 (2): 234–50.
24.
IgouEric R.2011. “The When and Why of Risky Choice Framing Effects: A Constructive Processing Perspective.” In Perspectives on Framing, edited by GKeren, 219–38. New York, NY: Psychology Press.
25.
JangDongsukMattilaAnna S.2005. “An Examination of Restaurant Loyalty Programs: What Kinds of Rewards Do Customers Prefer?.” International Journal of Contemporary Hospitality Management17 (5): 402–8.
26.
JaniszewskiChrisCunhaMarcusJr.2004. “The Influence of Price Discount Framing on the Evaluation of a Product Bundle.” Journal of Consumer Research30 (4): 534–46.
27.
KhanUzmaDharRavi. 2010. “Price-Framing Effects on the Purchase of Hedonic and Utilitarian Bundles.” JMR, Journal of Marketing Research47 (6): 1090–9.
28.
KimJinhooBojanicDavid C.WarnickRodney B.2009. “Price Bundling and Travel Product Pricing Practices Used by Online Channels of Distribution.” Journal of Travel Research47 (4): 403–12.
29.
KimJungkeunKimPeter BeomcheolKimJae-Eun. 2018. “Different or Similar Choices: The Effect of Decision Framing on Variety Seeking in Travel Bundle Packages.” Journal of Travel Research57 (1): 99–115.
30.
KivetzRanSimonsonItamar. 2002. “Earning the Right to Indulge: Effort as a Determinant of Customer Preferences Toward Frequency Program Rewards.” JMR, Journal of Marketing Research39 (2): 155–70.
31.
KivetzRanZhengYuhuang. 2017. “The Effects of Promotions on Hedonic Versus Utilitarian Purchases.” Journal of Consumer Psychology27 (1): 59–68.
32.
KleinKristinaMelnykValentyna. 2016. “Speaking to the Mind or the Heart: Effects of Matching Hedonic Versus Utilitarian Arguments and Products.” Marketing Letters27 (1): 131–42.
33.
LiJingjingAbbasiAhmedCheemaAmarAbrahamLinda B.2020. “Path to Purpose? How Online Customer Journeys Differ for Hedonic Versus Utilitarian Purchases.” Journal of Marketing84 (4): 127–46.
34.
LordKenneth R.LeeMyung-SooSauerPaul L.1995. “The Combined Influence Hypothesis: Central and Peripheral Antecedents of Attitude Toward the Ad.” Journal of Advertising24 (1): 73–85.
35.
LynchJohn G.JrArielyDan. 2000. “Wine Online: Search Costs Affect Competition on Price, Quality, and Distribution.” Marketing Science19 (1): 83–103.
36.
MaierThomasIntrevadoPaul. 2018. “Function Space Revenue Management: A Product Bundling Approach to Hotel Function Space Utilization.” Journal of Convention & Event Tourism19 (3): 188–203.
37.
MaxwellSarah. 2002. “Rule-Based Price Fairness and Its Effect on Willingness to Purchase.” Journal of Economic Psychology23 (2): 191–212.
38.
MelnykValentynaKleinKristinaVölcknerFranziska. 2012. “The Double-Edged Sword of Foreign Brand Names for Companies from Emerging Countries.” Journal of Marketing76 (6): 21–37.
39.
MiaoLiMattilaAnna S.2007. “How and How Much to Reveal? The Effects of Price Transparency on Consumers’ Price Perceptions.” Journal of Hospitality & Tourism Research31 (4): 530–45.
40.
MickDavid Glen. 1992. “Levels of Subjective Comprehension in Advertising Processing and Their Relations to Ad Perceptions, Attitudes, and Memory.” Journal of Consumer Research18 (4): 411–24.
41.
MittalBanwari. 1990. “The Relative Roles of Brand Beliefs and Attitude Toward the Ad as Mediators of Brand Attitude: A second Look.” JMR, Journal of Marketing Research27 (2): 209–19.
42.
OhGa-Eun G.2020. “When Dessert Comes Close: The Effects of Anticipating Indulgent Consumption and Dietary Restraint on Healthy Food Preference at Restaurants.” International Journal of Hospitality Management90: 102614. doi:10.1016/j.ijhm.2020.102614
43.
OkadaErica Mina. 2005. “Justification Effects on Consumer Choice of Hedonic and Utilitarian Goods.” JMR, Journal of Marketing Research42 (1): 43–53.
44.
PreacherKristopher J.HayesAndrew F.2008. “Asymptotic and Resampling Strategies for Assessing and Comparing Indirect Effects in Multiple Mediator Models.” Behavior Research Methods40 (3): 879–91.
45.
RajuPuthankrissi S.Jr.1977. “Product Familiarity, Brand Name and Price Influences on Product Evaluation.” In Advances in Consumer Research, vol. 4, edited by WDPerreault, 64–71. Atlanta, GA: Association for Consumer Research.
46.
ScheibehenneBenjaminGreifenederRainerToddPeter M.2010. “Can There Ever Be Too Many Options? A Meta-Analytic Review of Choice Overload.” Journal of Consumer Research37 (3): 409–25.
47.
SchnurrBenediktBrunner-SperdinAlexandraStokburger-SauerNicola E.2017. “The Effect of Context Attractiveness on Product Attractiveness and Product Quality: The Moderating Role of Product Familiarity.” Marketing Letters28 (2): 241–53.
48.
SelaAnerBergerJonahLiuWendy. 2009. “Variety, Vice, and Virtue: How Assortment Size Influences Option Choice.” Journal of Consumer Research35 (6): 941–51.
49.
ShaddyFranklinFishbachAyelet. 2017. “Seller Beware: How Bundling Affects Valuation.” JMR, Journal of Marketing Research54 (5): 737–51.
ShivBabaFedorikhinAlexander. 1999. “Heart and Mind in Conflict: The Interplay of Affect and Cognition in Consumer Decision Making.” Journal of Consumer Research26 (3): 278–92.
52.
StrahilevitzMichalMyersJohn G.1998. “Donations to Charity as Purchase Incentives: How Well They Work May Depend on What You Are Trying to Sell.” Journal of Consumer Research24 (4): 434–46.
53.
TanfordSarahBalogluSeyhmusErdemMehmet. 2012. “Travel Packaging on the Internet: The Impact of Pricing Information and Perceived Value on Consumer Choice.” Journal of Travel Research51 (1): 68–80.
54.
TanfordSarahKimEsther L.2019. “Risk Versus Reward: When Will Travelers Go the Distance?”Journal of Travel Research58 (5): 745–59.
55.
ThompsonDebora VianaHamiltonRebecca W.2006. “The Effects of Information Processing Mode on Consumers’ Responses to Comparative Advertising.” Journal of Consumer Research32 (4): 530–40.
56.
UhrichFabianSchumannJan H.von WangenheimFlorian. 2013. “The Impact of Consumption Goals on Flat-Rate Choice: Can “Hedonizing” a Service Increase Customers’ Propensity to Choose a Flat Rate?” Journal of Service Research16 (2): 216–30.
YadavManjit S.MonroeKent B.1993. “How Buyers Perceive Savings in a Bundle Price: An Examination of a Bundle’s Transaction Value.” JMR, Journal of Marketing Research30 (3): 350–8.
