Using invoice price information to frame advertised offers

Abstract

The present studies consider the presence and absence of invoice price (IP) information (i.e., the cost to the seller) and the inclusion of offer fairness (OF). In addition, the relative effectiveness of invoice vs. manufacturer's suggested retail price (MSRP) frames is considered. Briefly, the results of our studies provide supportive evidence of the positive framing effects of invoice or cost information in retail price advertising. Specifically, higher promoted invoice prices increased transaction value (TV), acquisition value (AV), and perceived OF. Counter to our predictions, perceptions of quality were not directly affected by either sale price or invoice amount. Further evidence of the positive effects of invoice information was provided by the negative relationship between sale price and OF being moderated by the provision of the higher invoice amount and by the larger effect sizes associated with invoice differential prices than comparable MSRP claim differences. © 2003 Elsevier Science Inc. All rights reserved.