How consumers respond to the behavior of missing a free gift promotion: inaction inertia effect on products offered as free gifts

Inaction inertia describes the phenomenon that an individual is unlikely to act on an attractive opportunity after having bypassed an even more attractive one. The results of two experiments indicate that after missing an initial opportunity to obtain a product as a free gift during a promotional period, the inaction inertia effect reduces the likelihood of consumers buying the product at a discounted price (second, inferior opportunity), particularly if the free gift has a high regular price. Additionally, according to the results of Experiment 2, those consumers are less likely to buy a product that has been offered previously as a free gift when a greater total quantity of the free gift is offered during a promotional period. Moreover, the mediation analysis results indicate that anticipated regret and valuation significantly impact the mediating role of inaction inertia.     

环境亮度对食品消费决策的影响：食品安全感知的中介作用

本研究考察了环境亮度对食品消费决策的影响,揭示了其发生的心理机制及边界。实验1和实验2发现环境亮度正向影响消费者支付意愿。这一效应的内在机制是因为明亮环境使消费者产生更高的食品安全感知,进而增加其对食品的支付意愿。对产品认证标签的检验进一步验证了安全感知的中介作用 (实验2)。结果表明,当食品具有认证标签时,食品安全感知无法中介环境亮度对消费者支付意愿的影响。     

Free Gift with Purchase: Promoting or Discounting the Brand?

Two experiments examine the process by which free gift promotions serve as a source of information about the underlying value of the product offered as a free gift. The value‐discounting hypothesis argues that by virtue of being offered as a free gift, products will be valued less as evinced by lower purchase intentions and a lower price that consumers are willing to pay for them. Conditions that inhibit the value‐discounting effect include the (a) presence of alternate price information to make judgments about the value of the gift, and (b) contextual information about the value of the promoted brand.     

STATED WILLINGNESS TO PAY FOR PUBLIC GOODS:

Abstract— In the contingent valuation method for the valuation of public goods, survey respondents are asked to indicate the amount they are willing to pay (WTP) for the provision of a good. We contrast economic and psychological analyses of WTP and describe a study in which respondents indicated their WTP to prevent or to remedy threats to public health or to the environment, attributed either to human or to natural causes. WTP was significantly higher when the cause of a harm was human, though the effect was not large. The means of WTP for 16 issues were highly correlated with the means of other measures of attitude, including a simple rating of the importance of the threat. The responses are better described as expressions of attitudes than as indications of economic value, contrary to the assumptions of the contingent valuation method.     

Perfect apples or sustainable production?—Consumer perspectives from Germany

In recent years, environmental problems, such as resource depletion and biodiversity loss, have come to the forefront of society's attention. Consumption of fruits and vegetables from extensive production systems could decrease food loss and increase biodiversity and more sustainable resource use. However, fruits and vegetables from extensive production systems are not always of perfect external quality, and hence, rejected by consumers. To increase acceptance of imperfect fruits, this study aims to better understand consumers' perceptions of different levels of imperfections, using apples as an example. An online survey with 842 German consumers investigated associations, important apple-buying criteria, organic apple consumption, socio-demographics, and willingness to pay (WTP) for apples with different levels of imperfection. The latter is investigated via contingent valuation. A multiple linear regression was calculated for each level of imperfection. Results show that consumers' WTP for apples differed depending on the level of external imperfections. The majority of consumers accepted slightly imperfect apples; a noticeable share would even buy them at the same price as flawless apples. Apples with heavy imperfections were mainly accepted by consumers who had sustainable buying criteria. To increase acceptance, it is important to tell consumers that their food choice can make an impact on how apples are produced, that imperfect apples come from more sustainable production systems and are of perfect internal quality. And finally, it is important to give specific advice that buying these apples can help to increase sustainable resource use and biodiversity.     

The role of affect in the WTA/WTP disparity

Four studies demonstrated robust within‐ and between‐subject differences in willingness‐to‐pay (WTP) and willingness‐to‐accept (WTA) measures of the value of lottery tickets. Buyers and sellers attended to different numerical cues and interpreted the same numbers differently when setting these two kinds of monetary values. Affective influences appeared to guide the valuation process. Buyers with stronger positive feelings about owning a ticket were willing to pay more for a ticket; sellers with stronger negative feelings about no longer having a ticket required a greater minimum payment in exchange for their ticket. In addition, the WTA/WTP disparity tended to be greater for more affectively‐laden lottery tickets. The results suggest that WTA and WTP prices are constructed using salient numerical cues and affective feelings. Copyright © 2003 John Wiley & Sons, Ltd.     

价格框架对不同认知闭合需要者在线动态价格的感知与购买意愿的影响*

采用问卷与实验相结合的方法,以112名大学生为被试,考察价格框架对不同认知闭合需要者在线购物时对动态定价策略下的价格感知与购买意愿的影响。结果发现：（1）相比非动态价格,动态价格条件下消费者感知价格公平感、购买意愿都较低;（2）在打折框架下,高认知闭合需要者对采取动态价格在线购物网站的感知信任显著好于非动态价格,而低认知闭合需要者则相反,说明消费者的价格感知受这三个变量的综合影响;（3）在降价框架下,认知闭合需要与动态价格的交互作用不显著,意味着在线消费者的购买意愿可能受到更多其它因素制约。     

Overbidding in Value Elicitation: When Consumers Report Inflated Reservation Prices,and What to Do About It

A common goal of value elicitation is to determine consumers’ reservation prices (i.e., maximum willingness to pay) for goods and services. Because the results of such studies are often used as inputs in decision making, it is important to understand when reservation prices estimated in value elicitation studies are likely to be biased, and how to correct for such biases. Experiment 1 of this study investigated attributes of the context in which consumers’ values are elicited that may lead to consumers overbidding their true reservation prices. The results demonstrate that the likelihood of overbidding is high when consumers perceive that they will not have to pay their stated reservation price, and particularly high when they also perceive that stating a high reservation price will increase the likelihood of subsequently receiving a good. Experiment 2 demonstrated that priming budget considerations prior to value elicitation produced value estimates closer to the actual price of a good compared to a condition in which budget was not primed. Implications for the practice of value elicitation and the use of estimates provided by such studies in decision making are discussed.     

Uninformative Anchors Have Persistent Effects on Valuation Judgments

Anchoring effects influence a wide range of numeric judgments, including valuation judgments, such as willingness‐to‐pay (WTP). However, prior research has not established whether anchoring only temporarily distorts responses or exerts persistent influence on preferences. This article presents three incentive compatible experiments examining the long‐term effects of random anchoring on WTP. Study 1 evaluated the persistence of anchoring effects over long durations, and showed that the strength of the effect decayed but did not disappear completely even 8 weeks later. In Study 2, a random anchor significantly influenced WTP after one week, regardless of whether WTP was also elicited immediately following the anchoring procedure, showing that consistency motivations do not account for persistence of anchoring effects. Study 3 showed relatively low anchors resulted in more stable valuations, compared with participants who reported WTP with no anchoring procedure. Together with the pattern of decay over time in Study 1, this suggests that anchoring facilitates the “imprinting” of valuation judgments for later retrieval. These studies show that anchoring effects can lead to lasting changes in valuation judgments, providing the first demonstration of long‐term persistence of constructed preferences as a result of an uninformative and arbitrary manipulation.     

Willingness to Pay for Local Public Goods: Some Evidence From the Nonprofit Theatre Sector

It is clearly the case that many people may derive option benefits from the embodiment of creativity in cultural products. This article describes a method that can be used to offer more support for a local public good—namely local theatre. This is the application of willingness to pay (WTP) pricing. Survey evidence from two nonprofit regional theatres in the UK were used to examine determinants of the WTP function for local theatre. A WTP equation was estimated and showed the following: Female respondents offered much lower prices; there was a positive influence of income on willingness to pay with a small elasticity; loyalty to the theatre contributed to higher price offers and perceived characteristics poverty of the theatre productions was so strong that it would cancel this out where a person has such feelings. The price terms show that the offered price is linked positively to perceptions of the normal price at the theatre and reasonable prices for other events.     

The value increment of mass‐customized products: an empirical assessment

• The primary argument in favour of mass customization is the delivery of superior customer value. Using willingness‐to‐pay (WTP) measurements, Franke and Piller (2004), Journal of Product Innovation Management, 21, 401–415 have recently shown that customers designing their own watches with design toolkits are willing to pay premiums of more than 100% (ΔWTP). In the course of three studies, we found that this type of value increment is not a singular occurrence but might rather be a general phenomenon, as we again found average ΔWTPs of more than 100% among customers designing their own cell phone covers, T‐shirts and scarves. Building on this, we discuss the sources of benefits that are likely to explain this tremendous value increment. We argue that compared to conventional standard products, a mass‐customized product might render the following utilitarian and hedonic benefits: (1) First, the output might be beneficial as self‐designed products offer a much closer fit between individual needs and product characteristics. In addition to this mere functional benefit, extra value might also stem from (2) the perceived uniqueness of the self‐designed product. As the customer takes on the role of an active co‐designer, there may also be two general ‘do‐it‐yourself effects’: (3) First, the process of designing per se is likely to allow the customer to meet hedonic or experiential needs (process benefit). (4) Customers may also be likely to value the output of self‐design more highly if they take pride in having created something on their own (instead of traditionally buying something created by somebody else). This is referred to as the ‘pride of authorship’ effect.

Copyright © 2006 John Wiley & Sons, Ltd.     

Locomotion, assessment, and regulatory fit: Value transfer from “how” to “what”

Regulatory fit is experienced when people pursue a goal in a manner that sustains their regulatory orientation. Previous research on promotion and prevention orientations has found that regulatory fit increases people’s perception that a decision they made was “right,” which in turn transfers value to the decision outcome, including being willing to pay more for a product than those who chose the same product without regulatory fit (Higgins, 2000; Higgins et al., in press). We predicted that the effect of regulatory fit on monetary value could be generalized to locomotion and assessment orientations. Participants were willing to pay over 40% more for the same book-light when it was chosen with a strategy that fit their regulatory orientation (assessment/“full evaluation”; locomotion/“progressive elimination”) than when it was chosen with a non-fit strategy.     

Valuing information and options: an experimental study

Participants in four studies were faced with everyday‐life decision scenarios involving risk, such as purchasing an airline ticket whose price may change. They were asked to state their maximum willingness to pay (WTP) for resolving the uncertainty with either perfect information or an option. The two are strategically equivalent, therefore, should be valued in the same way. Across all experiments, individuals tend to value the option more than the information. In addition, the distributions of responses reveal frequent and gross violations of normative bounds. Contrary to normative predictions, no relationship is found between individuals' valuation of the gamble and their reported WTP for information or option. Furthermore, although participants pay attention to the probabilities of outcomes in valuing the gambles, they ignore the probabilities in valuing uncertainty resolution. Several reasoning heuristics that participants use to come up with a value of information are identified, and it appears that the Information and Option contexts tend to trigger different heuristics. Shift in reference point and regret are consistent with the Information–Option valuation discrepancy. Copyright © 2007 John Wiley & Sons, Ltd.     

Quantifying the Value of Emotions Using a Willingness to Pay Approach

People generally seek out positive moods and avoid negative moods; however, it is unclear which motivation is more pronounced. Two studies addressed this issue by developing a value-based ranking of emotions based on the willingness to pay (WTP) approach. The approach utilizes money’s cardinal properties and assumes opportunity costs as with everyday purchases. In Study 1 British participants indicated they would be willing to pay more to experience positive than to avoid negative emotions. In Study 2 this positivity bias was replicated with another sample of British participants. However, Hong Kong Chinese participants did not show such a preference, and were willing to pay significantly less to experience positive emotions but more to avoid negative emotions when compared with British participants. Experiencing Love was given the highest WTP judgment in all samples. Thus, some emotions are universally valued, whereas preferences for others differ across cultural groups, perhaps shaped by norms. Implications concerning valuations of psychological states for policy purposes are discussed.     

Impact of educational intervention on willingness-to-pay for suicide prevention: a quasi-experimental study among university students in Japan

Many individuals show negative attitudes toward the use of taxes for suicide prevention. Activities that enhance knowledge and awareness of suicide and suicide prevention may increase willingness to pay (WTP) for suicide prevention. WTP is the amount that a consumer will pay for a product or service. The present study examined the influence of educational activities on enhancing knowledge and awareness of suicide and its prevention on WTP. We conducted a quasi-experimental study to examine the influence of lectures on suicide by comparing the amount of change in WTP between two groups over the same period: an intervention group (n = 92) comprising students who participated in the lectures and a control group (n = 128) comprising general university students recruited through an Internet-based survey. A t-test showed that the amount of change was significantly larger in the intervention group (t (152.31) = 2.25, p = .026). Ordinal logistic regression analysis showed that increased WTP was significantly correlated with an annual household income of JPY 4–6 million or higher. It may be appropriate to conclude that participation in lectures about suicide is effective in increasing WTP for suicide prevention.     

Protecting Against Low‐Probability Disasters: The Role of Worry

We carry out a large monetary stakes insurance experiment with very small probabilities of losses and ambiguous as well as exact probabilities. Many individuals do not want to pay anything for insurance whether the probabilities are given exactly or are ambiguous. Many others, however, are willing to pay surprisingly large amounts. With ambiguity, the percentage of those paying nothing is smaller and the willingness to pay (WTP) of the other individuals larger than with exact probabilities. Comparing elasticities with ambiguity, we find that worry is much more important than subjective probability in determining WTP for insurance. Furthermore, when the ambiguous loss probability is increased by a factor of 1000, it has almost no effect on WTP. Copyright © 2011 John Wiley & Sons, Ltd.     

To buy or to sell: cultural differences in stock market decisions based on price trends

Four studies compared the stock market decisions of Canadians and Chinese. In two studies using simple stock market trends, compared with Chinese, Canadians were more willing to sell and less willing to buy falling stock. But when the stock price was rising, the opposite occurred: Canadians were more willing to buy and less willing to sell. A third study showed that for complex stock price trends, Canadians were strongly influenced by the most recent price trends: they tended to predict that recent trends would continue and made selling decisions without considering the rest of the trend patterns; whereas the Chinese made reversal predictions for the dominant trends and made decisions that took both recent and early trends into consideration. Study 4 replicated the finding with experienced individual investors. These findings are consistent with the previous literature on different lay theories of change held by Chinese and North Americans. Copyright © 2008 John Wiley & Sons, Ltd.     

Involvement,attributions, and consumer responses to rebates

This paper examines effects of both purchasing involvement and product involvement on consumers' responses to rebates. In Part One, the study examines the effects of involvement on consumer responses to a rebate price promotion. Specifically, the study reports that consumers with high levels of purchasing involvement and consumers with high levels of product involvement are more likely to experience satisfaction with a shopping experience involving a rebate and, subsequently, are more likely to express intentions to engage in repeat purchase behavior and word-of-mouth communication about the product. High purchasing involved (but not high product involved) customers are also more likely to use rebates. In Part Two, the study examines effects of involvement on consumer attributions for satisfaction with the price deal and reports that high purchasing involvement is significantly related to a tendency to make internal, rather than external, attributions for satisfaction with a rebate shopping experience. Results of hierarchical moderated regression suggest that consumer responses to the rebate price promotion are moderated by these internal attributions. Implications of the findings for a theoretical understanding of involvement effects on attributions and for the effectiveness of price promotion strategies in the marketplace are discussed.     

Sales Promotions and the Choice Context as Competing Influences on Consumer Decision Making

Although brand switching is one of the most researched topics in marketing, we still know very little about the moderators of switching between brands in different price‐quality tiers (e.g., from Häagen–Dazs ice cream to Breyers or to a store brand). Building on the notion that buyers have a (category‐specific) consideration set of price–quality tiers, we propose that sales promotions and the choice set composition (or the choice context) have compensatory effects on brand switching between price–quality tiers. Specifically, if one of these factors causes buyers to switch to a higher price–quality tier within their brand‐tier consideration set, then the other factor is less likely to induce switching in the same direction (to an even higher tier) and more likely to induce switching in the opposite direction. This general proposition leads to several specific hypotheses, including (a) the likelihood of switching between particular brand tiers due to price promotions can be predicted based on the choice set composition; (b) asymmetric switching, whereby consumers are more likely to switch up from a low‐tier to a promoted high‐tier brand than from a high‐tier to a promoted low‐tier brand, is reduced or eliminated if consumers consider three price–quality tiers; and (c) the compromise effect is reduced when the lowest tier brand offers a price promotion. These hypotheses were supported in a series of studies, which also examined rival explanations. The theoretical and practical implications of the findings are discussed.