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Availability and Perceived value by Discount Expression Frames(‘Won’/ ‘Percent’)

Abstract

This study verifies the effects of availability of utility and perceived value by discount expression frames (‘won’/ ‘percent’) and actual choice behavior between discount expression frames. Study 1 hypothesized availability of utility and perceived value are different by discount expression frames (‘won’/ ‘percent’). This study found out availability was affected by discount expression frame, although perceived value did not statistical significant. That is, the more abundant availability of utility is, the higher perceived value is. Therefore, ‘won’ frame might have higher perceived value because when discount presents ‘won’ frame makes more abundant availability of expected utility from discount money than ‘percent’ condition. Study 2 examined both which discount frames between ‘won’ and ‘percent’ is choose actually and choice difference by discount size. This study used 6 different stimulus made of products and discount size by pretest results. As results, ‘won’ frame was choosing by 58.1% and ‘percent’ frame was 41.9 %. Theses results are significant by chi-square analysis. Therefore, this study found out ‘won’ frame prefer more than ‘percent’ frame in actual choice situation. In addition, When discount size is smaller, 'won' frame was more choose than '%' and when discount size is lager, result was reversed. As additional analysis, choice was different by sex. This is, Women was more choose 'won' and Men reversed. Hence, this study found out discount expression frames (‘won’, ‘percent’) and discount size influence degree of availability of expected utility in discount money, perceived value, and choice. These results can be used for effective price communication strategies.

keywords
availability heuristic, perceived value, discount expression frame(‘won’/ ‘percent’), preference, choice(decision) behavior

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