Consumer Perceptions of Price Reframing in an In-Store Decision Context

This article compares consumer responses to price reframing methods in an in-store decision context where price comparisons among brands can be conducted. The methods examined are measure-based unit pricing, usage-based unit pricing, and temporal reframing of price. They differ in the unit used for calculating reframed prices: measure-based unit pricing uses weight or volume, usage-based unit pricing uses usage account, and temporal reframing of price uses time. This area of research has not been fully explored. Results from a laboratory experiment showed that measure-based and usage-based unit pricings were evaluated better than temporal reframing of price on usability, likeability, and comprehensibility. Also, measure-based unit pricing was the best at making the choice perceived easier, whereas usage-based unit pricing was the best at increasing the attractiveness of retail prices. Moreover, consumers who chose the brand with the lowest reframed price generated favorable price and quality perceptions for the chosen brand when usage-based unit pricing or temporal reframing of price was used but generated only favorable price perception when measure-based unit pricing was used.