Processing fluency versus novelty effects in deal perceptions

Purpose – The purpose of this study is two‐fold. First, to explore differences in consumers' deal perceptions for coupons framed as potential gains to be obtained versus equivalent losses to be avoided. Second, it seeks to demonstrate the underlying process of the effects of coupon framing on deal perceptions. Design/methodology/approach – The study used controlled experiments to test hypotheses. Findings – The study found that participants had more favorable deal perceptions and greater usage intentions of coupons that highlight their value as a discount to be obtained versus a loss to be avoided. Importantly, while the two frames differed in perceived novelty, framing effects on deal perceptions were shown to be due to processing fluency enhancing evaluations of gain‐framed coupons. Finally, the results demonstrated that consumers' deal proneness moderated the effect of processing fluency, eliminating the advantage of gain over loss frames for low deal‐prone consumers. Practical implications – This research shows that consumer perceptions of deals are not just based on the information about the promotion they receive, but also on how fluently the information can be processed. It also provides evidence that consumers view coupons as potential gains, and that systematic processing is necessary for framing manipulations to be effective, which is true for high deal‐prone consumers. Lastly, it is shown that, in order for framing manipulations to increase deal perceptions, retailers need to motivate consumers to process coupons systematically. Originality/value – This research provides useful information on consumer perceptions of deals with respect to coupons and information they receive.