The effect of category-specific temporal frame on temporal reframing of price

Abstract

This study explores the effects of temporal reframing of price (TRP), a strategy presenting the total cost of a product or service in smaller, segmented amounts (e.g., $1 per day rather than $365 in total), and its potential to intensify consumers' feelings of being misled, thereby negatively impacting their attitudes toward the product. While previous research has underscored the benefits of TRP, such as lowering perceived costs and enhancing perceived benefits through heuristic information processing, the current study, informed by theories of heuristic versus systematic processing and attribution theory, investigates whether TRP leads to increased feelings of manipulation by deviating from conventional category-specific temporal frames of pricing. Through two experiments, we find that such deviations may prompt consumers to view TRP as manipulative, subsequently heightening feelings of being misled, especially at higher price levels, whereas lower price levels could diminish the scrutiny applied to marketers' intentions. Additionally, this study demonstrates that feelings of being misled mediate the relationship between the presentation of price information and product attitude, highlighting the potential risks of employing TRP strategies. The paper discusses optimal situations for implementing TRP, aiming to navigate its strategic use effectively.