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In other words, showing a final value with gains, even if it is lower, is preferable to showing a lower loss in front of a higher gain. The inclusion of a reference price, according to Heath, Chatterjee, and France , can make a difference since the principles of mental accounting for maximum satisfaction were derived and tested without taking the reference price into consideration.

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Lower reference prices cause a perception of higher gain when compared to higher reference prices, resulting in a higher download intention NIEDRICH and others However, our hypothesis is that the biggest discount rate is the most appealing. If the final price was the same, but the reference price was different, the participants preferred the items that had the biggest discount rate. Verma and Gupta analyzed quality perception with regard to price by using a television set as the sample product.

As a result, the higher prices revealed a higher perception of quality by the consumer. In the case of durable products such as televisions , the study showed that people view brand name products or higher prices as signs of higher quality. According to the authors, "for a durable product, a lower price fixation can negatively affect the quality image of the product and the consumer is not willing to download a lower price brand" VERMA and GUPTA, , p.

In the case of low-involvement products, they chose toothpaste as the product for their study. The participants judged the quality of a toothpaste tube in six different price classes with the aim of showing how the quality perception of an object varies according to the price. The participants judged the value of the product according to the price: higher prices lead to higher quality and vice versa. With regard to services, there are a few tangible characteristics; in this case, these features were often limited to the structure of the service provider, equipment and people involved in its provision.

This information provides evidence that the online discount service is in a collective download website, although the biggest discount rate could not attract the consumer because the quality perception was low. Consumers need to be anchored to some information and this includes the price, as usually occurs in this kind of online market where the participants have no previous knowledge of the brand.

On the basis of this, the following two hypotheses are put forward: H2: In a "same price" situation, the biggest discount rate will not attract the consumer. H3: In a situation where a higher discount rate is perceived, there is a decline in quality perception. The objective of this article is to determine the presence of the Framing Effect and its applications to offers in a group downloading website, by attempting to validate the quality perception of discounts in service situations.

Figure 2 shows the objective of the studies. By means of these factors, four distinct ads were created, all of which were very similar to those in the Peixe Urbano website. The name of the pizzeria pizza restaurant was fictitious, to avoid the risk of biased results. The product used was a pizza, which was meant to be consumed in the restaurant. The same final price of the offered product the pizza was used in the four ads. When determining the value of the discount rate, the same decimal number was selected as that of the last digit in the decimal.

The choice of the pizzas from the pizzerias was made in the light of the following factors: first, most group downloading websites operate through a coupons scheme for services, not products. Second, exploring the sale of services rather than products, which have already been explored on other occasions , could be of greater value.

There were no specific pizza toppings defined in the ad, which meant the consumer was given the choice of how to spend the value of the coupon in the pizza restaurant. Two questions were adapted for this study from Lichtenstein, Ridgway and Netemeyer one regarding download intention and the other regarding quality perception.

The item was scored on a scale of ranging from "definitely no" to "surely yes" Example: "Would you download this offer? A question about how much the participant usually pays for a pizza was also asked so that it could be used as a covariate. The data collection occurred in May during night classes, after prior authorization had been granted by the teachers.

One of four ads was distributed randomly to the participants in each classroom. Table 1 shows the cells of the experiment with the number of people participating and also the number of models that were used in the analyses. Analyses As a manipulation check two questions were asked: "what is the final price of the offer?

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However, these were kept in the sample, since, in real life, many consumers, have difficulty in understanding percentage calculations. Pearson Chi Square was performed to determine possible differences in the sample. As a result no gap was found. The GLM is a flexible model for generalized linear regression that includes the average and dispersion. The first hypothesis states that there will be a higher download intention for the offer when the discount structure is perceived to be higher in relative terms.

To assess the discount price advertisement, an ANO-VA model was employed with intention download as the dependent variable and using the main effect of treatment and interaction as the dependent variables. Figure 3 is a graphical representation of the effect of discount format and level of discount on download intention. The data shows that when the discount price is low, the participants have a higher download intent score when the discount is shown in Real Brazilian currency , but when the discount price is high the participant showed a greater preference for the percentage discount rate.

The complete model is displayed in Table 2. The covariate proposed in the methodology was used in the regression. The explanation for this result can be inferred from the analysis of the reference price.

This suggests that the best discount for the participants was when it was presented as a percentage rather than when it was presented as an absolute value. Therefore, the data indicates that in the case of a low discount rate, there is a high download intent score for the Real; and with a high discount rate, there is high download intent when the discount is presented as a percentage.

These results support hypotheses 1A and 1B. Hypothesis 2 supposes that in a same price situation, the consumer will not prefer the biggest discount. This was compared with Models 1 and 2, and Models 3 and 4.

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This result contradicts the hypotheses proposed in the literature. When Models 3 and 4 are analyzed, one can verify that for the low discount, the intention mean was 4,41 and for the large discount, the mean was 3, This suggests that hypothesis H2 can be supported. However, this is not entirely the case because there was an evident preference for the highest discount in the percentage discount rate. To determine how the participants see the quality of the advertisement, the third hypothesis was analyzed by GLM.

Again the covariate was used in the model. When the discount is low and presented in percentage terms or the discount is high but appears as Reals, the quality perception is lower. Table 4 displays the complete model. Experiment 2 The second experiment was conducted to confirm the results obtained from the first experiment, which suggested that the differences between the structural presentations could change consumer behavior, and also aimed at analyzing if quality perception is one of the moderators of this behavior.

Quality perception is one possible explanation why consumers do not see a high discount as being a very attractive choice.

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This experiment also seeks to analyze the results found in the first experiment where a different advertisement and different percentages were used. An advertisement about a service, that also used the Peixe Urbano webpage design, was created to validate the results obtained from the first experiment.

The service offered was a car inspection wheel alignment and tire balancing. The factor design was: 2 discount structure - Real versus Percentages X High and Low discount , between subjects. The discounted prices this time were the same as the prices in Real; the only difference was the percentage symbol. This total price was intended to make it easier for the participants to calculate the discount.

One example of the manipulation sentence is: "Deal of the Day: more security for you and your car! It was decided that a car service should be used to illustrate this manipulation, because many of the services offered for collective download in Brazil are related to cars.

Using a manipulation with a common service offered online, is closer to the reality of collective downloads and conveys a sense of credibility.

The experiment was conducted by means of Qualtrics software, and the link created was suitably attached and disseminated to the authors' network. The software randomly assigned a condition for each participant.

The questions were as follows: if you were planning to use this type of service, how likely would you be to choose this one? If a friend were looking for a service like this, how likely would you be to recommend this one?

With the sales promotion can I get a better quality service elsewhere for the same total price?