Framing the Deal: The Role of Restrictions in Accentuating Deal Value

Abstract

We propose that consumers use the presence of a restriction (i.e., purchase limit, purchase precondition, or time limit) as a source of information to evaluate a deal. In a series of four studies we present evidence suggesting that restrictions serve to accentuate deal value and act as “promoters” of promotions. We begin by using aggregate level scanner data to test our hypothesis that a sales restriction (e.g., “limit X per customer”) results in higher sales. Via three subsequent experiments, we then investigate contextual and individual factors moderating this effect. Study 2 suggests that restrictions only have a positive effect for low need for cognition individuals. Study 3 explores the potential mediating role of deal evaluations on purchase intent across discount levels. Study 4 examines the effect of three types of restrictions (purchase limits, time limits, and purchase preconditions) across discount levels and explores the underlying beliefs driving these effects. An integrative model across studies demonstrates the robustness of the restriction effect and supports the premise that restrictions work through signaling value. Implications for how consumers determine promotional value are discussed.

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