Investigating the Effect of Discount Framing and Brand on Consumer's Perceived Savings, Perceived Quality and Purchase Intention

Abstract: One of the most important issues about the use of price discounts is discount framing, proportional exploitation of these discount frames with products and the discount circumstances for more effective utilization of these discounts. The main purpose of this research is to compare the effects of two different types of discount frames (percentage decrease versus Rial terms) for either a high-price or a low-price product and taking into account two brands for each products and then examining the effect of perceived savings and perceived quality of these discount frames on consumer purchase intention. The study population included customers of beverages in chain stores as well as customers of cell-phones in cellphone specialized sales complexes. The results indicate that for high-price product, a price reduction in Rial terms would result in more perceived savings For consumers than the same price reduction framed in percentage terms, and the opposite was true for the low-price product. Brand power created differences in perceived savings and perceived quality for low-price product. Finally, the perceived savings and perceived quality had a considerable positive impact on purchase intention