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Research methods in the social sciences

Pricing is one of the most crucial determinants of sales. Besides the actual price, how the price offering is presented to consumers also affects consumer evaluation of the product offering. Many studies focus on “price framing,” i.e., how the offer is communicated to the consumer —is the offered price given along with a reference price, is the reference price plausible, is a price deal communicated in dollar or percentage terms. Other studies focus on “situational effects,” e.g., is the evaluation for a national brand or a private brand, is it within a discount store or a specialty store. In this article, a meta-analysis of 20 published articles in marketing examines the effects of price frames and situations on perceived savings. The results reveal many features that significantly influence perceived savings. For instance, while both the percent of deal and the amount of deal positively influence perceived deal savings, deal percent has more impact. Further, the presence of a regular price as an external reference price enhances the offer value of large plausible deal and implausible deals, but not of small plausible deals. Thus, high value deals should announce the regular price, but not low value deals. Overall, the results have several useful insights for designing promotions.

A Meta-Analysis of the Impact of Price Presentation on Perceived Savings

Provides future managers with information about human beings and their behaviour within the context of a business environment. The text includes issues such as how to motivate people, how to give them feedback on their performance, how to influence them and how to help them cope with stress.

Behavior in organizations : understanding and managing the human side of work / Jerlad Greenberg and Robert A. Baron

(2004). A Fierce Discontent: The Rise and Fall of the Progressive Movement in America, 1870–1920. History: Reviews of New Books: Vol. 32, No. 2, pp. 54-54.

A Fierce Discontent: The Rise and Fall of the Progressive Movement in America, 1870–1920

Much research in the last two decades has demonstrated that human responses deviate from the performance deemed normative according to various models of decision making and rational judgment (e.g., the basic axioms of utility theory). This gap between the normative and the descriptive can be interpreted as indicating systematic irrationalities in human cognition. However, four alternative interpretations preserve the assumption that human behavior and cognition is largely rational. These posit that the gap is due to (1) performance errors, (2) computational limitations, (3) the wrong norm being applied by the experimenter, and (4) a different construal of the task by the subject. In the debates about the viability of these alternative explanations, attention has been focused too narrowly on the model response. In a series of experiments involving most of the classic tasks in the heuristics and biases literature, we have examined the implications of individual differences in performance for each of the four explanations of the normative/descriptive gap. Performance errors are a minor factor in the gap; computational limitations underlie non-normative responding on several tasks, particularly those that involve some type of cognitive decontextualization. Unexpected patterns of covariance can suggest when the wrong norm is being applied to a task or when an alternative construal of the task should be considered appropriate.

Individual differences in reasoning: Implications for the rationality debate?-Open Peer Commentary-Differences, games, and pluralism

Public budgeting has become a central artifact of American government – the principal means for establishing and implementing policy. Modern public budgeting was introduced in the early Twentieth Century as an adaptation of objects of revenue and expenditure budgeting used in commercial businesses. Since then over a hundred years a series of budget reform movements have sought to overcome a major drawback to this model: the lack of a direct link between revenues and expenditures and any measure of the quality or quantity of public benefits derived from budget allocations. While a number of major budget reforms have come and gone (or came and stayed), that provided additional information on government activities linked to allocations, little research has been done to assess whether this new information has actually been used in the legislative budget decision making process, and if so, whether it influenced final budget decisions. Framing theory holds that information about a problem presented in different ways will be perceived as a different problem by decision-makers. Using framing theory as a theoretical basis, a laboratory experiment was conducted, where groups using budgets differently framed budget documents deliberated over an identical budget scenario. It was found that the nature of the debate did vary based on type of framed budget, but that the final allocations were not significantly different. This document was prepared using Microsoft WORD 2003

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Robert Dennis Malarkey

Papers

The influence of differently framed information on decision making in the public budgeting process: does budget reform mean a damn?