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    THE TRADE-UPGRADE FRAMING EFFECT ON PURCHASE DECISION MAKINGS

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    Wu_temple_0225E_13855.pdf
    Embargo:
    2021-08-15
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    Genre
    Thesis/Dissertation
    Date
    2019
    Author
    Wu, Xiaoxuan
    Advisor
    Srivastava, Joydeep
    Committee member
    Morrin, Maureen
    Di Benedetto, C. Anthony
    Fong, Nathan
    Department
    Business Administration/Marketing
    Subject
    Marketing
    Framing Effect
    Heuristic
    Judgment and Decision Making
    Product Replacement
    Trade-in
    Upgrade
    Permanent link to this record
    http://hdl.handle.net/20.500.12613/619
    
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    DOI
    http://dx.doi.org/10.34944/dspace/601
    Abstract
    When making decisions, consumers often do not follow principles of normative economic theories but those of behavioral ones. Framing effect – one of the most robust phenomena in behavioral research – has been found to influence consumers’ choices and judgment in purchase decisions. In price promotion practices, however, it is not well understood whether framing a product replacement purchase as a trade-in or an upgrade affects consumers’ purchase decision making process. This dissertation research aims to explore the trade-upgrade framing effect on product replacement purchase decisions and to examine the mechanisms through which such effect manifests itself. The results have demonstrated that consumers prefer a price promotion framed as upgrade to a financially equivalent one framed as trade-in, especially when the upgrade promotion is presented after the trade-in one. Furthermore, the framing effect and order effect are mediated by affect and influenced by cognitive focus, semantic cues, and systematic processing. The theoretical and practical implications are discussed at the end.
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