Framing effects of per-person versus aggregate prices in group meals

Abstract

This research draws on regulatory focus theory and applies it to the context of price framing in group meals. Specifically, it examines the possibility that a per-person framing of price (an aggregate price) may activate a promotion focus (prevention focus) in consumers. The results of five experiments show that participants (a) generated more promotion-relevant (vs. prevention-relevant) thoughts, (b) were more inclined to consume the group meal when a persistent focus on promotion (vs. prevention) was exhibited, (c) rated promotion-focused (vs. prevention-focused) messages more favorably, and (d) reported a higher intention to opt for an offer where the chance of obtaining a positive goal was enhanced, in response to a per-person price rather than an aggregate price. Mediation analyses provide additional evidence for the notion that pursuit of promotion goals (prevention goals), which relate to obtaining value (avoiding loss) primed by a per-person price (an aggregate price), had the effect of regulating one's choices. Managerial implications of the findings are discussed, followed by recommendations for future research.