The Effect of Framing on the Choice of Supermarket Coupons

Abstract

One of the most interesting implications of Prospect Theory is that choices are affected by whedter the altematives are framed as gains or as reduced losses. The framing of sales promotions should affect whether they are chosen by consumers. This paper presents the resulu of a field experiment demonstrating that supermarket shoppers presented with redeemable coupons were significantly more likely to choose a test promotion if it were framed as a gain than if it were framed as a reduced loss. Other factors affecting the desirability of sales promotions are discussed.

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