Wednesday, July 2, 2014

The Offer Framing Effect: Choosing Single versus Bundled Offerings Affects Variety Seeking

MITTELMAN Mauricio, ANDRADE Eduardo Bittencourt, CHATTOPADHYAY Amitava, BRENDL Miguel
Access the publisher's website Journal of Consumer Research (forthcoming)

Choice of multiple items can be framed as a selection of single offerings (e.g., choice of two individual candy bars) or bundled offerings (e.g., choice of a bundle of two candy bars). In this article, four experiments provide strong evidence that consumers seek more variety when choosing from single than from bundled offerings. “The offer framing effect” shows that the mechanics of choosing—the way consumers go about making choices of multiple items—affects preferences for variety in a systematic manner. The data also suggest that the effect is largely due to the single rather than the bundled offering frame. Theoretical and managerial implications are discussed.