1. How to frame offers
Contrasting Ads
Prepared by J. Scott Armstrong (details on him at jscottarmstrong.com).
Please inform Scott about errors and also make suggestions (armstrong@wharton.upenn.edu)
Scott has taken these slides from adprin.com, a site that he founded. That site contains interactive versions of these
slides, along with linked references, videos, and webcasts, all in PPT and PPTX format that you can download.

2. Contrasting Ads
Subjects in the U.S were randomly assigned to ads for a
camera phone that were identical except for these offers:
___ A: “Get 20% off the regular price,”
___ B: “Pay 80% of the regular price.”
Which print ad for a camera phone was more
effective -- and why? Write your answer, then go
to the next slide for the evidence.
Adapted from AdPrin.com 2

3. Intentions for B were 28% higher than for A
(Kim and Kramer 2006 in Persuasive
Advertising p 221)
When strong arguments exist, consider using ads that contrast with
competitors’ ads (8.3.1)
The findings were reversed in Hong Kong. Why?
In Hong Kong, sale prices are normally expressed as “Pay
x% of the regular price.”
As a result, “Save 20 percent” led to purchase intentions
that were 33% higher than the “Pay 80 percent”
(Persuasive Advertising p 221).
For more information, see Adprin.com

4. Based on this exercise, write a small application step for
yourself, and set a deadline, preferably within one week. If you
are working with someone else, share your application plan and
the results of your application.
• For example, consider framing a offer in a way different from
competing firms.
Adapted from AdPrin.com