Some moderators of the effects of framing on purchase intentions and buying decisions

Shuling Liao, Purdue University

Abstract

The main purpose of this study is to examine whether the effects of framing on purchase intentions and buying decisions are moderated by prior knowledge and experience and perceived value of the offer. It has been suggested that the way that information is framed will affect consumer choice by giving an external reference point. Information framed as a loss would have a greater impact than the same information framed as a gain. However, prior knowledge and experience influence consumer judgment and decision making via the function of an established reference point. Due to the use of different reference points, framing might not fully affect consumers' concepts of what constitutes gains and losses. Perceived value of the offer might mitigate the effects of framing. It is hypothesized that, compared to experts, novices will be more influenced by the presence of framing and by loss framing. It is also postulated that when perceived value of the offer is high, consumers will be more affected by the presence of framing and by the loss framing. Furthermore, compared to other groups, novices who perceive the value of the offer as high are expected to be most influenced by framing. To test the hypotheses, a 3 x 2 x 2 between-subjects design is employed. Two products, personal computer and camera, are used for replication. Three print advertisements with different framing (gain, loss, no framing) for each product are randomly given to college students. The two major findings of this study are: first, there is a significant effect of the presence of framing on purchase intentions; however, it is moderated by prior knowledge and experience and by perceived value of the offer. Compared to experts, novices are more influenced by the presence of the framing. Furthermore, the presence of the framing is effective only when perceived value of the offer is high. Second, contrary to predictions, loss framing does not have a stronger effect on purchase intentions than does gain framing. The effects of framing are not as robust as suggested by Kahneman and Tversky.

Degree

Ph.D.

Advisors

Widdows, Purdue University.

Subject Area

Marketing

COinS