That I can wait: The effect of promotion framing on consumer preferences

Sales managers often struggle to create effective combinations of promotion framing and promotion reward timing. However, whether gain-framing (vs. loss-reduction framing) promotions are better suited to be combined with immediate or delayed promotions remains an open question. In three studies, we show that the gain (vs. loss-reduction) framing of promotion information activates a high (vs. low) construal level, which leads to a higher preference for delayed (vs. immediate) promotions. We also find that time perception moderates the proposed effect. Specifically, consumers with time-overestimating (vs. time-underestimating) perception are more likely to choose immediate (delayed) promotions when they are at a low (high) construal level. Our findings provide insights for marketers and retailers that consumers would like to wait for a higher reward in a longer horizon under the gain promotion frame, while they prefer an immediate reward even if the benefit is much lower under the loss-reduction promotion frame.