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Buyers Versus Sellers: How They Differ in Their Responses to Framed Outcomes
Author(s) -
Monga Ashwani,
Zhu Rui Juliet
Publication year - 2005
Publication title -
journal of consumer psychology
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 4.433
H-Index - 110
eISSN - 1532-7663
pISSN - 1057-7408
DOI - 10.1207/s15327663jcp1504_7
Subject(s) - database transaction , promotion (chess) , transaction cost , economics , microeconomics , marketing , business , advertising , computer science , politics , political science , law , programming language
Consumers’ reactions to a difference in price can depend on how it is framed. If buyers interpret paying $60 rather than $65 as getting a $5 discount, then they are likely to consider paying $60 to be a gain and paying $65 to be a nongain. Alternatively, if they interpret having to pay $65 rather than $60 as incurring a $5 penalty, then they may consider paying $60 to be a nonloss and paying $65 to be a loss. Similarly, sellers can also experience gains, nongains, nonlosses, and losses. This article suggests that buyers are prevention focused and consequently place a greater emphasis on loss‐related frames, whereas sellers are promotion focused and place a greater emphasis on gain‐related frames. Therefore, for equivalent positive outcomes, buyers feel better about nonlosses, but sellers feel better about gains. For equivalent negative outcomes, buyers feel worse about losses, but sellers feel worse about nongains. These effects, however, disappear when there is little motivation to process information about the monetary transaction.