From Bottom Line to Consumers’ Mind: The Framing Effects of Accounting Information

Accounting, Organizations and Society, 43, 56-66, 2015, DOI: http://dx.doi.org/10.1016/j.aos.2015.04.003

Posted: 8 May 2015

See all articles by Hui Zhou

Hui Zhou

University of Auckland

Date Written: May 6, 2015

Abstract

We investigate how accounting information and message framing jointly impact consumer choice between brand name and generic drugs using a sample representative of the U.S. adult population. We find that information about manufacturers’ profit margin/cost profile in different frames predisposes consumers to develop more or less favorable attitudes towards the firms and their products. The results suggest that two important accounting constructs (profit margin and cost) are endowed with a descriptive valence that evokes affective responses in consumers’ associative memory. This study adds to earlier work on the role of accounting information’s connotative meaning in shaping user perceptions by providing new evidence that the descriptive valence of accounting constructs can impact consumer purchase decisions. The findings of this study also have direct implications for efforts aimed at reducing health care costs by promoting wider use of generic drugs.

Keywords: accounting constructs, message framing, associative memory, generic drugs, health care costs

Suggested Citation

Zhou, Hui, From Bottom Line to Consumers’ Mind: The Framing Effects of Accounting Information (May 6, 2015). Accounting, Organizations and Society, 43, 56-66, 2015, DOI: http://dx.doi.org/10.1016/j.aos.2015.04.003, Available at SSRN: https://ssrn.com/abstract=2603514

Hui Zhou (Contact Author)

University of Auckland ( email )

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Auckland Mail Centre
Auckland, 1142
New Zealand

HOME PAGE: http://https://unidirectory.auckland.ac.nz/profile/hzho663

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