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Conceptual background
Mood effects
Mild, pervasive and Moods are defined as mild, pervasive, and generalized affective states (Isen,
generalized affective 1984) that are subjectively perceived by individuals (Gardner, 1985). Based
states on the accumulated research on affect and persuasion, individuals’ feelings,
moods and emotions can influence their evaluations of people, objects and
issues, regardless of the relevance between the affect and the attitude object
(Petty et al., 1991). Specifically, it has been suggested that people’s
judgments and evaluations tend to be congruent with their current mood
states (Clark and Isen, 1982; Gardner, 1985; Johnson and Tversky, 1983).
The effect of moods on judgments is explained in terms of the ability of
mood to enhance the accessibility of mood-congruent associations by
serving as a retrieval cue for similarly toned material stored in memory
(Clark and Isen, 1982; Isen et al., 1978). Thus, when evaluating an object,
people in a positive mood will more readily access material that is positive
in tone rather than negative or neutral. In contrast, people in a negative mood
will more readily retrieve information that is negative in tone rather than
positive or neutral. Bower et al. (1981) found that when reading a story,
happy readers paid more attention to affectively positive material of the
The authors thank Kent Monroe for guidance to the revision and the participants in
the Pricing Camp at the University of Illinois, September 25-28, 1997, for their
valuable comments.
150 JOURNAL OF PRODUCT & BRAND MANAGEMENT, VOL. 7 NO. 2 1998 pp. 150-160 © MCB UNIVERSITY PRESS, 1061-0421
story than did sad readers. Hence, mood may affect individuals’ evaluative
judgments through its influence on the attention paid to different aspects of
the information. Specifically, people in a positive mood may attend more to
favorable aspects of information whereas people in a negative mood may
attend more to unfavorable aspects (Adaval, 1996).
Based on the preceding discussions, consumers’ moods are expected to bias
their evaluations of price promotions in a mood-congruent direction.
However, this issue has not been empirically investigated. Furthermore, we
are interested in understanding the mechanism by which mood influences
consumers’ responses to price promotions.
Pricing research
Pricing research literature Price and quality have been identified as the two basic components of value
in pricing research literature (see Grewal et al., 1996). Dodds and Monroe
(1985) proposed a basic model for perceived value, in which perceived value
is positively influenced by perceived quality and negatively influenced by
perceived monetary sacrifice. The perceived value of marketers’ offerings
can be further promoted by comparative price advertising, in which the
marketers emphasize that their selling price is a bargain relative to a higher
reference price, i.e. the marketer’s regular or former price, a manufacturer’s
suggested retail price, or a competitor’s price (Biswas et al., 1993).
Monroe (1979) defined perceived value as the trade-off between perceived
quality and perceived sacrifice. Monroe and Chapman (1987) further
separated the overall perceived value of an offering into two elements –
perceived acquisition value and perceived transaction value. Perceived
acquisition value is conceptualized as the buyers’ perceived trade-off of the
gains or benefits received from acquiring the product or service relative to
the sacrifice incurred when making the acquisition. Perceived transaction
value is conceptualized as the evaluation of psychological satisfaction or
pleasure that would be obtained from taking advantage of the financial terms
of the price deal. Grewal et al. (1996) then developed a model of the effects
of comparative price advertising on consumers’ perceptions of value. Their
proposed model has three exogenous constructs: buyers’ perceptions of
product quality, advertised selling price and advertised reference price, and
five endogenous constructs: internal reference price, perceived acquisition
value, perceived transaction value, willingness to buy and search intention.
This model is shown in Figure 1.
+
–
Advertised – Perceived Search
Selling Price Transaction Value Intention
+ +
+
Internal
Reference Price
+
Advertised
Reference Price
Methodology
Pretest
In Grewal et al.’s (1996) model, perceived quality is based on consumers’
previous knowledge or familiarity with the product category and the product
information presented in the advertisement. This present study follows their
conceptualization. Familiar, favorable brands as well as favorable attribute
information was used to engender good perceived quality for our test
products. A pretest was conducted to determine the two test products used in
the main study. Our goal was to select two products that were familiar to and
perceived to be of high quality to our subjects. The results indicated that GE
answering machine and Magnavox TV were consistently rated higher on all
items than the other two products. Therefore, these two products were
chosen to be used in the main study.
Procedures
Subjects were told that they would undertake two tasks in the experiment. In
the first task, subjects were asked to recall a recent life event (detail is
described in the manipulation section) to induce either a positive or negative
mood. After mood induction, their mood was measured, which will be
referred to as prior-to-promotion mood hereafter in this paper. In the second
task, they were asked to evaluate two of the promotional items. They were
exposed to an advertising copy for the first product, which contained the
brand name and five product attributes. Their perceived regular prices of the
+
Mood
Manipulations
Life event survey Mood: Life event survey (Schwarz and Clore, 1983) was used to induce
either a positive or negative mood. All subjects were told that a life-event
inventory was being developed. Subjects in the positive (negative) mood
condition were instructed that positive (negative) events were needed. They
were asked to recall in detail and write down a recent event in their personal
lives that made them feel either very positive or negative.
Discount level: Subjects were told that a local marketer was interested in
understanding consumers’ responses to the selected items for an upcoming
holiday sale. Two separate discount messages of two products, i.e. TV and
answering machine, were provided. Both products were on sale at the same
discount level (10 percent, 25 percent, 40 percent or 60 percent off the
marketer’s regular price).
Independent variables
Prior-to-promotion mood and discount level were the two independent
variables of interest in this study. Prior-to-promotion mood was measured by
two feeling items on an 11-point scale anchored by unhappy – happy and
bad – good. The mean of the two feeling items was then calculated. Discount
was divided into four levels – 10 percent, 25 percent, 40 percent and 60
percent off.
Dependent variable
Perceived transaction value was the dependent variable of interest. Based on
Dodds et al. (1991), four items were used to measure perceived transaction
value. Subjects were asked to report their perceptions of transaction value in
this promotion condition as opposed to a no-promotion condition. The
subjects were asked to indicate on –7 to +7 scales to what extent:
(1) taking advantage of a price-deal makes them feel better;
(2) they find the advertised price reduction will help them save money;
(3) they would gain pleasure knowing that they would save money at this
reduced sale price; and
(4) taking advantage of this price-deal will give them a sense of joy.
Results
Manipulation checks
Mood manipulation Mood manipulation was checked right after subjects recalled a positive or
negative life event. Out of the 132 participants, the reported prior-to-
promotion moods of 13 subjects were not consistent with the manipulation –
four people in the positive condition reported their moods lower than or
equal to 3 (on a 0-10 scale) while eight people in the negative mood
condition greater than or equal to 7.5. Therefore, these data were excluded
from our analyses, resulting in a sample size of 119. Results revealed that
those subjects exposed to the positive mood manipulation felt significantly
more positive than subjects exposed to the negative mood manipulation
(mean = 7.67 vs. 3.66, p = 0.0001).
TV Answering machine
Source df MSE F-value p df MSE F-value p
0
10% 25% 40% 60%
Discount Level
Although the interaction effect between mood and discount level was not
significant for answering machine in ANOVA model (p = 0.17), the similar
divergent quadratic trends across mood conditions can clearly be observed
from the concave versus convex curves shown in Figure 3.
The above results consistently show that the effects of discount level on
perceived transaction value were different across the two mood conditions;
hence, they support our hypothesis 2 that the effect of discount level on
perceived transaction value will be influenced by mood states.
Discussion
Price promotions Our results show that the mood effects do exist as hypothesized. Mood
influences the effectiveness of price promotions through consumers’
perceived transaction value in a mood congruent direction. Our results also
show that the mood effects are asymmetric in positive and negative
conditions. As demonstrated in Figure 3, perceived transaction value varied
with discount levels in a concave curve fashion in the positive-mood
condition and a convex curve fashion in the negative-mood condition.
Specifically, when subjects were in a positive prior-to-promotion mood, the
References
Adaval, R. (1996), “The role of affective (mood) states on perceptions of quality, sacrifice and
value”, unpublished dissertation, Department of Business Administration, University of
Illinois.
Biswas, A., Wilson, E.J. and Licata, J.J. (1993), “Reference pricing studies in marketing: a
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affective states”, Journal of Experimental Psychology: General, Vol. 110 No. 4,
pp. 451-73.
Clark, M. and Isen, A.M. (1982), “Toward understanding the relationship between feeling
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Cohen, J. (1977), Statistical Power Analysis for the Behavioral Sciences, Academic Press,
New York, NY.
Dodds, W.B. and Monroe, K.B. (1985), “The effect of brand and price information on
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in Consumer Research, Vol. 12, Association for Consumer Research, Provo, UT,
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Appendix
Based on the d parameter in Cohen’s (1977) definitions of levels of effects size, which is:
| Mean1 – Mean2 |
d= ,
MSEerror
we calculate the effect size of mood for TV as
4.65 – 3.85 0.8
dTV = = = 0.5
2.55 1.6
and that for answering machine as