Periodic Pricing and Perceived Contract Benefits

Atlas, Stephen A.; Bartels, Daniel M.

doi:10.1093/jcr/ucx127

Cited by 12 publications

(37 citation statements)

References 48 publications

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“…This change in representation can increase expected benefits when there are diminishing returns to scale for the benefits (over time or other aggregation). This process can increase purchase intentions even for nontrivial costs (Atlas & Bartels, 2018).…”

Section: Endnotesmentioning

confidence: 99%

Perspectives on mental accounting: An exploration of budgeting and investing

Zhang

Sussman

2018

Fin Plan Rev

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This article provides an overview of recent advances in the literature on mental accounting within the context of consumer financial decision‐making. We first discuss the categorization process that underlies mental accounting and the methods people use to categorize funds. We then highlight some of the notable work that examines how mental accounting influences budgeting, spending, and investment decisions. The article concludes by proposing an agenda for future research, focusing on current gaps in our knowledge and promising areas to explore.

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Section: Endnotesmentioning

confidence: 99%

Perspectives on mental accounting: An exploration of budgeting and investing

Zhang

Sussman

2018

Fin Plan Rev

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“…Gourville (2003) further showed that a cost framed in daily terms was preferred to one framed in monthly terms, which in turn, was preferable to one framed in yearly terms. Building on Gourville (1998, 2003), Atlas and Bartels (2018) demonstrated the generalizability of this effect in other pricing contexts, such as car rentals. Periodic frames work well not only for costs but also for setting aside money for savings.…”

Section: Theoretical Frameworkmentioning

confidence: 94%

“…Monga and Bagchi (2012) found that compared to consumers who process information at an abstract level, those who process information at a concrete level are more prone to focus on numbers rather than units when making judgments. Atlas and Bartels (2018) showed that consumers who are less affectively involved in a consumption scenario become more scope sensitive, increasing consumers’ likelihood of attending to the background information. Thus, messages or visual cues that can make consumers less affectively involved in the context can reduce the effect of temporal framing.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

“…Their intuition is consistent with findings from academic research. Studies have shown that across a variety of consumption contexts people are generally more attracted to periodic costs (Atlas & Bartels, 2018; Gourville, 1998; Hershfield et al, 2020) and aggregated benefits (Burson et al, 2009; Goldstein et al, 2016).…”

mentioning

confidence: 99%

“…For instance, Gourville (1999) showed that comparing an aggregate cost with a small ongoing expense attenuates the effect of temporal framing. More recent research found that the temporal framing effect weakens for consumers who are less affectively involved in a purchase decision (Atlas & Bartels, 2018). In a political setting, Pedersen (2019) found that people on right (vs. left) of the political spectrum in the Netherlands perceived the size of unemployment benefits to be larger when it was framed in aggregate (vs. periodic) terms.…”

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confidence: 99%

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$100 a Month or $1,200 a Year? Regulatory Focus and the Evaluation of Temporally Framed Attributes

Basu

2020

J Consum Psychol

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The costs and benefits of various products, such as insurance and subscription services, are recurring. Marketers can choose to frame these attributes either as a series of periodic occurrences (e.g., “$10 per month”) or aggregate them over a longer period (“$120 per year”). Five studies show that the effectiveness of such temporal framing depends on consumers’ salient regulatory goals. Compared with prevention‐focused consumers, promotion‐focused consumers are more likely to perceive benefits, costs, and losses to be larger when they are framed in aggregate (vs. periodic) terms. Mediation analyses suggest that, relative to prevention‐focused consumers’ vigilant information processing style, promotion‐focused consumers’ eagerness makes them more susceptible to temporal framing effects. The results suggest that regulatory goal is a consequential factor in determining the effectiveness of temporal framing.

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Consumer matching costs to context: Status quo bias, temporal framing, and household energy decisions

Gill

Atlas

Hardisty

et al. 2022

J of Consumer Behaviour

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One challenge of promoting energy-efficient behavior change is status quo bias: consumers are reluctant to change away from their current level of energy usage, even if their energy usage is higher than they would actively choose. Using experimental data, this article examines what temporal frame minimizes status quo bias and encourages energy-efficient behavioral intentions. The authors find that individuals make the most energy efficient decisions when presented with a monthly framing because they are more easily able to think about monthly costs than daily or yearly costs. The authors investigate whether cognitive fluency could be an underlying mechanism, and find evidence that individuals are most fluent when energy costs are framed on a monthly basis.

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Periodic Pricing and Perceived Contract Benefits

Cited by 12 publications

References 48 publications

Perspectives on mental accounting: An exploration of budgeting and investing

Perspectives on mental accounting: An exploration of budgeting and investing

$100 a Month or $1,200 a Year? Regulatory Focus and the Evaluation of Temporally Framed Attributes

Consumer matching costs to context: Status quo bias, temporal framing, and household energy decisions

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