How consumers respond to the behavior of missing a free gift promotion: inaction inertia effect on products offered as free gifts |
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Authors: | Liu Tsung-Chi Cheng Ti Ni Feng-Yu |
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Affiliation: | Department of Business Administration, National Cheng Kung University, Tainan, Taiwan. |
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Abstract: | 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. |
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