Temporal Reframing of Prices: When Is It Beneficial?

Prior studies provide mixed results pertaining to the effectiveness of temporal reframing of prices. This study examines the conditions in which such temporal reframing to a shorter period of time is more or less beneficial than aggregate prices. Investigations of the role of four moderating variables—price endings, price level, time periods, and calculation affinity—show that reframed prices are more beneficial than aggregate prices for high-priced products, especially in combination with even price endings, an aggregate price that normally refers to a comparatively short time period, or customers with poor calculation affinity. Aggregate prices offer more benefits than reframed prices for low-priced products, odd price endings, aggregate prices that refer to longer periods, and customers with excellent calculation affinities.

Graphical abstractFigure optionsDownload full-size imageDownload as PowerPoint slideHighlights► Reframed (aggregate) prices are beneficial for high-priced (low-priced) products. ► Reframed (aggregate) prices are beneficial in combination with even (odd) price endings. ► Reframed (aggregate) prices are beneficial if the aggregate price refers to a shorter (longer) time period. ► Reframed (aggregate) prices are beneficial if customers with poor(excellent) calculation affinity are targeted.