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- 'Saving' money versus 'getting' money off: different cues for different people
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For example, people may think that a 50 percent increase in quantity is a better deal than getting a third 33 percent off the regular price , even though the two are exactly the same. Regulatory focus theory provides an additional perspective to the psychology of discounts as marketing messages more generally. According to regulatory focus theory, human motivation is rooted in needs for advancement related to approach and security related to avoidance.
This is reflected in different strategies for self-regulation : promotion and prevention focus. Promotion focus is characterized by eagerness, while prevention is characterized by vigilance. Being healthy, for instance, can be achieved by either exercising hard promotion focus or refraining from unhealthy habits prevention focus.
Regulatory focus depends on both our dispositions and our state of mind in different situations. Research suggests that consumers respond more favorably to products if there is a fit between their regulatory focus and cues in the environment , such as marketing messages.
This feeling of compatibility is referred to as regulatory fit. This is what Suresh Ramanathan and Sanjay Dhar found in a study published a couple of years ago.
We recently set up an experiment similar to that already conducted by Ramanathan and Dhar. Participants also had to engage in a virtual shopping task online. Sales promotion wording can motivate people to buy — beyond the products that are actually on sale.
The graph below shows the average number of items chosen that were not offered at a discount, broken down by different groups. The lines represent people with a promotion versus prevention regulatory focus.
Regulatory fit, however, does not affect all consumer choices equally. Getting money off works well for chocolates. Past research suggests that promotion-focused advertising claims nudge people to buy hedonic products, like chocolates.
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This is not surprising if we consider that people are more susceptible to cues if they have a lack of established buying routines, expertise, etc. Store brands are more likely to be chosen by promotion-focused consumers. This is compatible with previous experiments indicating that prevention-focused people are more likely to opt for safe choices like familiar brands, while promotion-focused consumers tend to be variety seekers and risk takers.
But the idea can be extended beyond this relationship. For example, promotion and prevention is evident in marketing messages when a sun lotion is advertised as either giving you a great tan promotion versus protect your skin prevention.
It can also be seen in different products or services, such as photo enhancement software promotion versus anti-virus software prevention. Research suggests that a fit between promotion- versus prevention-focused orientation, environments, products, brands or marketing messages can facilitate buying behavior non-consciously.
Do you think you are more a promotion- or a more prevention-focused person? You may want to keep your answer in mind the next time you go shopping. Higgins, E. Promotion and prevention: Regulatory focus as a motivational principle. Zanna Ed.
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Lee, A. Bringing the frame into focus: The influence of regulatory fit on processing fluency and persuasion. Journal of Personality and Social Psychology, 86 , Micu, C.
'Saving' money versus 'getting' money off: different cues for different people
Journal of Marketing Theory and Practice, 18, Pham, M. Promotion and prevention in consumer decision making : The state of the art and theoretical propositions. Mick Eds.
London: Routledge. Ramanathan, S. The effect of sales promotions on the size and composition of the shopping basket: Regulatory compatibility from framing and temporal restrictions.
Journal of Marketing Research, 47, Alain Samson, Ph. Research shows the lasting effect of numerical anchors on valuation judgments.
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