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Article
Publication date: 22 January 2021

Chadwick J. Miller, Adriana Samper, Naomi Mandel, Daniel C. Brannon, Jim Salas and Martha Troncoza

The purpose of this paper is to examine how the number of activities within a multi-activity experience influences consumer preferences before and after consumption.

Abstract

Purpose

The purpose of this paper is to examine how the number of activities within a multi-activity experience influences consumer preferences before and after consumption.

Design/methodology/approach

The hypotheses are tested using four experiments and a secondary data set from a river cruise firm that includes first-time river cruise purchases by consumers from this firm between January 2011 and December 2015 (n = 337,457).

Findings

Consumers prefer experiences with fewer (vs more) activities before consumption – a phenomenon, this paper calls “activity apprehension” – but prefer experiences with more (vs fewer) activities after consumption. A mediation analysis indicates that this phenomenon occurs because the highly perishable nature of activities makes consumers uncertain about their ability to use all the activities within the experience (usage uncertainty).

Practical implications

Evaluations of a multi-activity experience depend on both the number of activities and on whether the consumer is at the pre- or post-consumption stage of the customer journey. As such, firms looking to sell multi-activity experiences should design and promote these experiences in a way that minimizes activity apprehension.

Originality/value

This study is the first to demonstrate that consumer perceptions of an optimal experience depend on both the number of included activities and on the stage of the customer journey (i.e. pre- or post-purchase). It further contributes to the consumer experience literature by examining an unexplored activity characteristic, perishability, in shaping experiential purchase decisions. Finally, it demonstrates a new way in which experiential purchases differ from tangible product purchases.

Details

Journal of Services Marketing, vol. 35 no. 4
Type: Research Article
ISSN: 0887-6045

Keywords

Article
Publication date: 17 May 2022

Chadwick J. Miller, Laszlo Sajtos, Katherine N. Lemon, Jim Salas, Martha Troncoza and Lonnie Ostrom

The purpose of this paper is to investigate how customers’ upgrading/downgrading (t−1) behavior may be predictive of future spending. Further, this paper also investigates how…

Abstract

Purpose

The purpose of this paper is to investigate how customers’ upgrading/downgrading (t−1) behavior may be predictive of future spending. Further, this paper also investigates how customers’ post-consumption evaluations of upgrades and downgrades [satisfaction(t−1) and perceived value(t−1)] may moderate the relationship between upgrades/downgrades and future spending.

Design/methodology/approach

The predictions are tested using a large longitudinal data set of river cruise purchases (N = 48,103) and largely replicated using a data set of zoo membership purchases (N = 2,469).

Findings

Satisfaction(t−1) mitigates the positive relationship between prior upgrades(t−1) and future spending(t). In contrast, perceived value(t−1) magnifies the positive relationship between prior upgrades(t−1) and future spending(t). However, no positively moderating effects are observed to alleviate the negative relationship between prior downgrades(t−1) and future spending(t).

Practical implications

This research suggests that managers should work hard early in customer–firm relationships because of an asymmetric difficultly in altering the trajectory of an established relationship. Specifically, relationships that are trending downward (as consecutive downgrades would suggest) are difficult to repair – a mechanism to alter this trajectory is not observed. In contrast, relationships that are trending upward (as consecutive upgrades would suggest) can be improved with high perceived value evaluations but also degraded with high satisfaction evaluations.

Originality/value

This research should recast marketers’ understanding of the value of customers’ upgrade and downgrade decisions. Instead of using customers’ upgrade or downgrade decisions as the dependent variable, or final outcome in buyer behavior, this study shows how the accumulation of prior upgrades and prior downgrades, over time, acts as a bellwether of the customer–firm relationship. Further, to the best of the authors’ knowledge, this study is the first to connect these upgrade/downgrade decisions to customers’ evaluations of those purchases to understand how individual purchases can impact the overall customer–firm relationship.

Details

Journal of Services Marketing, vol. 37 no. 4
Type: Research Article
ISSN: 0887-6045

Keywords

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