Framing effect of optional pricing on ticket purchasing intention in low-cost carriers

초록

Low-cost carriers commonly provide surcharge pricing for optional product sales. This study investigates the framing effect in the domain of low-cost carrier business. This study used an experimental design (2 x 2) to test the research hypotheses. This study examines the effect of framing for dollars versus percentages in price presentation for optional baggage services. The data were collected using Amazon Mechanical Turk. A total of 136 observations were used for data analysis. The findings indicate that higher airfare-setting pricing (i.e., above $100) using percentages appear to be better for optional product purchase intention than dollar framing presentation. This study also tested the moderated mediation effects of price, value, and purchase intention. Hayes Process Model 7 was employed to explore this relationship. The results show that value mediates the relationship between purchase intention and price moderated by framing. Regarding the severe competition in the low-cost carrier market, the results could inform managers to build a more adequate pricing strategy for optional products based on price levels.

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