The relationship between individual loss-aversion and the effectiveness of discount framing in e-commerce – a field experiment

Last registered on August 20, 2020
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Pre-Trial

Trial Information

General Information

Title
The relationship between individual loss-aversion and the effectiveness of discount framing in e-commerce – a field experiment
RCT ID
AEARCTR-0006291
Initial registration date
August 20, 2020

Initial registration date is when the trial was registered.

It corresponds to when the registration was submitted to the Registry to be reviewed for publication.

First published
August 20, 2020, 11:12 AM EDT

First published corresponds to when the trial was first made public on the Registry after being reviewed.

Locations

Country
Germany
Region

Primary Investigator

Name
Andreas Grunewald
Affiliation
Frankfurt School
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Other Primary Investigator(s)

PI Name
Maximilian Speicher
PI Affiliation
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PI Name
Johanna Jagow
PI Affiliation
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PI Name
Kevin Bauer
PI Affiliation
University of Frankfurt
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PI Name
Florian Hett
PI Affiliation
University of Mainz
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Additional Trial Information

Status
On going
Start date
2020-08-10
End date
2020-09-07
Keywords
Other
Additional Keywords
JEL code(s)
Secondary IDs
Abstract
In this study, we investigate the behavioral reactions of customers to loss framing on an e-commerce website (for clothing) and test whether these reactions systematically differ with respect to the individual degree of loss aversion a customer exhibits.
External Link(s)

Registration Citation

Citation
Bauer, Kevin et al. 2020. "The relationship between individual loss-aversion and the effectiveness of discount framing in e-commerce – a field experiment." AEA RCT Registry. August 20. https://doi.org/10.1257/rct.6291-1.0
Sponsors & Partners
Experimental Details

Interventions

Intervention(s)
Intervention Start Date
2020-08-10
Intervention End Date
2020-09-07

Primary Outcomes

Primary Outcomes (end points)
As primary outcome measures, we analyze variables describing the shopping behavior of customers on the website. We will look at the extensive margin (likelihood that a customer concludes a purchase) as well as different measures for the intensive margin (number of goods being purchased, monetary value of the total purchase). Furthermore, we will elicit return rates, again at the extensive margin (likelihood that a customer returns anything from a given order) as well as different measures for the intensive margin (number of goods being returned, monetary value of the goods being returned, both in absolute and relative terms).
Primary Outcomes (explanation)

Secondary Outcomes

Secondary Outcomes (end points)
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
This will be a five-group between subject design, where each subject will be assigned either to the control or to one of four treatment groups. Treatment groups differ by the intensity of the loss framing of discounts across the customer journey.
Experimental Design Details
Randomization Method
done by a computer
Randomization Unit
individual
Was the treatment clustered?
No

Experiment Characteristics

Sample size: planned number of clusters
a substantial fraction of the website traffic from four weeks.
Sample size: planned number of observations
a substantial fraction of the website traffic from four weeks.
Sample size (or number of clusters) by treatment arms
individuals will be equally randomized into five treatment arms.
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
Supporting Documents and Materials
IRB

Institutional Review Boards (IRBs)

IRB Name
IRB Approval Date
IRB Approval Number
Analysis Plan

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Post-Trial

Post Trial Information

Study Withdrawal

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Intervention

Is the intervention completed?
No
Data Collection Complete
Data Publication

Data Publication

Is public data available?
No

Program Files

Program Files
Reports, Papers & Other Materials

Relevant Paper(s)

Reports & Other Materials