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Previous research indicates the aversive effect of low consumer ratings on consumers’ purchasing decisions. This paper aims to apply decision justifiability theory to investigate how price promotions – price discount and price bundling – can reduce this effect.

Two scenario-based experiments were administered among college students (Experiment 1) and online consumer panels (Experiment 2) to test the research hypotheses.

When time-to-purchase is long (vs short), a large discount is more effective in alleviating consumers’ negative responses toward products with low consumer ratings. However, when a price discount is presented as a bundle rather than a separate deal, a small discount size becomes as attractive as a large discount size for consumers with a longer time-to-purchase.

This paper identifies two controllable factors, price discounts and price bundling, that could help to alleviate the negative impact of low consumer ratings. Marketing managers can apply the findings of this paper as guidelines to deal with the aversive effect of low consumer ratings.

This paper makes an initial attempt to examine situations where consumers would be less averse to products with low consumer ratings. It identifies the roles of two price promotions (i.e. price discount size and price bundling) and an important contextual factor (i.e. time-to-purchase) that influence consumers’ decision justifiability and, subsequently, alter consumers’ online purchase decisions for such products.

Weight loss services feature high consumer involvement that is sometimes marked by repetitive failures. These features can affect regret and its associated factors differently from the way that discrete failure can. The purpose of this study is to investigate consumer regret over repetitive failures in weight loss services as well as its antecedents (overeating and insufficient exercise), consequences (rumination and reflection) and moderators (failure experiences and required effort). This study also investigates how rumination and reflection affect persistence intention.

A total of 318 samples were collected through three surveys, one of which contained a scenario, provided to consumers who experienced repetitive failures in weight loss. The proposed relationships were tested using structural equation modeling, dominance analysis and PROCESS modeling.

The results of this study reveal that overeating contributes to regret more saliently than does insufficient exercise. The effect of regret on rumination (thoughts about continuing to blame oneself and giving up the pursuit of goals) is stronger than on reflection (thoughts about learning from prior failures and willingness to try again), and greater reflection results in higher persistence intention. Moreover, the effect of insufficient exercise on regret and the effect of regret on rumination are augmented with cumulative failure experiences, whereas required effort enhances the impact of regret on reflection.

This study is the first to focus on regret over repetitive failures in weight loss. It advances the literature by clarifying the antecedents and consequences of regret, showing how failure experiences influence the relationships between regret and its associated factors as well as identifying interventions that benefit from regret.

Framed within the theoretical domain of attribution theory, this study aims to investigate the antecedents of experienced regret following an entrepreneur’s business failure (defined as firm discontinuance, closure or bankruptcy) and the impact of regret on personal well-being.

The population of interest was business owners whose businesses had failed within the past five years. The data was collected from 319 failed entrepreneurs using an online survey. Structural equation modelling was used to test the hypotheses presented in this study.

External attribution, including economic uncertainty and contract restrictions, was positively related to feelings of regret. Considering internal attribution, due diligence had a positive effect on regret whereas customer relationship development ability can reduce feelings of regret. Moreover, prevention-focused entrepreneurs were likely to experience higher levels of regret when engaging in extensive consideration in using information. Finally, regret had a detrimental effect on the entrepreneurs’ well-being.

The research provides fresh perspectives on experienced regret, a relatively unexplored emotion in the entrepreneurship literature. In the context of small business operations, the locus of attribution (associated with business failure) is the key influence on learning following failed business attempts.

This study extends current knowledge of regret in the context of entrepreneurial failure, which has a significant catalytic effect on employment and entrepreneurial mobility.

This research sheds light on how emotional responses are derived from an entrepreneur’s self-assessment of their performance and attribution of blame for failure.

Despite the merit of extant studies on career decision regrets, they are not well integrated, are developed at different speeds and differ in focus. Specifically, they do not address an important question about the levels and antecedents of regret arising from choosing entrepreneurship instead of paid employment and vice versa. The authors adopted the regret regulation theory as foundation to examining the moderated effect of entrepreneurial potential (EP) on career choice regret (CCR) among employees and entrepreneurs.

The authors surveyed 721 employees and 724 entrepreneurs from a developing country and applied partial least squares-structural equation modelling (PLS-SEM) to test the hypotheses.

Employees regretted their career choice three times more when compared with entrepreneurs. However, the authors failed to conclude that the latter had three times better living conditions when compared with the former. EP negatively influenced the regret of being an entrepreneur in lieu of an employee while it positively influenced the regret of being an employee in lieu of an entrepreneur. The perceived opportunity cost of being a higher EP employee was three times greater when compared with that of being a lower EP entrepreneur. The effect of EP on CCR was mitigated or amplified by duration in the career, former career status, decision justifiability, and perceived environment's supportiveness.

The design was cross-sectional, thus, the findings cannot be interpreted in the strict sense of causality.

The authors rely on an important yet often overlooked context of the choice between entrepreneurship and paid employment to test, clarify, and extend the regret regulation theory. The findings have novel human resource management and entrepreneurship policy implications.

The purpose of this paper is to advance product appeal and website appeal as focal psychological mechanisms that can be invoked by business-to-consumer e-commerce sites to mitigate problems of information asymmetry via signaling to bolster consumers’ purchase intention under the influence of trust.

Survey approach was employed to validate the research model.

Website appeal partially mediates the positive effect of product appeal on consumers’ purchase intention. Trust in e-commerce sites not only increases purchase intention directly, but it also reinforces the positive relationship between website appeal and purchase intention while attenuating the positive relationship between product appeal and purchase intention. Service content quality, search delivery quality, and enjoyment are confirmed as positive antecedents of website appeal whereas diagnosticity and justifiability are established as positive antecedents of product appeal.

This study not only delineates product and website appeal as complementary drivers of consumer purchase on e-commerce sites, but it also derives five signals that aid in bolstering both product and website appeal. Trust is revealed to exert a moderating influence on the impact of product and website appeal on purchase intention.

Practitioners should prioritize their resource allocation to enhance qualities most pertinent to product and website appeal. E-commerce sites should offer product-oriented functionalities to facilitate product diagnosticity and reassure consumers of their purchase decisions.

This study distinguishes between product and website appeal as well as between their respective antecedents. It also uncovers how trust can alter the effects of both website and product appeal on consumers’ purchase intention.

This paper aims to investigate the effect of retailers’ consumer communications in prompting the choice of an in-stock alternative to an out-of-stock first-choice product.

Four between-subjects experiments assessed the extent to which the likelihood of a retail customer switching to a similarly-priced alternative when a first choice was out-of-stock was affected by messages concerning stockout status (Studies 1a and 1b). They further examined the interaction effects on participants’ preference of messages comparing the available versus unavailable options and stating stockout status (Study 2) and those giving information on the reasons for the stockout and on its status (Study 3).

Participants maintained their original preference for an out-of-stock product unless an external restriction on choice prompted them to forsake it or they perceived a strong reason to opt for an in-stock alternative. There was a greater tendency to switch if the alternative offered a potential “gain” or the reasons given for a stockout were irrelevant to product performance, whether the participant was expecting imminent re-stocking. Switching was triggered when the available alternative was directly comparable to the original or the retailer’s explanation related to an attribute judged trivial, but only if short supply was expected to continue.

The studies add to current understanding of how shoppers respond to unavailability of a first-choice product by examining the effect on switching behavior of messages about the stockout situation that are communicated deliberately or inadvertently by retailers.

In many industries, customers are offered the opportunity to revise their initial decision in return for a superior but more expensive service option, a selling technique that is typically referred to as upselling. Drawing on the research on customers’ service experience, cognitive effort, decision justification, and goal framing, the purpose of this paper is to conceptualize upselling as a two-stage decision process where the process of making the first decision (i.e. deciding on an initial service option) affects the final decision (i.e. the decision for or against the upsell offer).

First, qualitative interviews were conducted both with customers as well as managers. Moreover, in two experimental studies, different scenarios depicted an upsell situation that is common in many service encounters. After choosing a hotel room or rental car for reservation, participants were confronted with differently framed arguments to induce a shift toward an enhanced but more costly version of the initially chosen service option.

The qualitative interviews reveal that upselling is a common practice in many companies and that the manner in which the upsell is communicated has a considerable influence on its effectiveness. The first experimental study finds that the cognitive effort that customers expend in the initial choice moderates the effect of upsell messages using different goal frames. The second experimental study shows that customers are only affected by different goal frames when they feel responsible for the outcome of the final decision.

The findings provide a number of useful guidelines for designing upselling strategies and may also be used to segment a firm’s customer base. On a more general level, this research also raises managers’ awareness of the sequential nature of upselling decisions and the customer’s intrinsic need to justify an upsell choice.

The studies contribute to the literature on customers’ service experience and upselling strategies. Upselling is conceptualized as a two-stage process in which customers’ experience in one phase influences their behavior in later stages. The underlying psychological mechanisms of this effect are also highlighted by referring to customers’ need to justify service choices to themselves.

Prior hospitality studies have reviewed review trustworthiness and perceived price as predictors of restaurant selection. However, the impacts of these two factors may vary by sales promotion and customer types. This study aims to determine whether sales promotions and customer type are the key elements that facilitate behavioral intentions by moderating the linkage between perceived price and behavioral intentions as well as the linkage between online review trustworthiness and behavioral intentions.

Analysis of the responses of 533 individuals familiar with the Michelin Guide for restaurants in Seoul provided evidence supporting a sales promotion theory wherein promotions signal benefits in consumers’ minds.

The findings show that when perceived price is positive and the trustworthiness of online reviews is high, repeat customers prefer mixed coupons to price discounts. Notably, the results indicate that when the trustworthiness of online reviews is high, first-time customers also prefer mixed coupons to price discounts. Furthermore, the findings suggest that negative evaluations of perceived price increase the impact of mixed coupons by signaling to first-time customers that given restaurants’ offerings provide monetary benefits regardless of their intentions to revisit said restaurants.

The study findings provide insights that should help managers better understand various levels of promotion. Managers can design their pricing strategies to strengthen customers’ motivations to visit their restaurants – the very thing customers often seek in sales promotions.

This study provides indisputable evidence for a sales promotion theory, wherein promotions signal benefits in consumers’ minds; however, it also shows that first-time and repeat customers do not respond equally to sales promotions.

Auditors should realize misstatements and communicate to managers for adjustments. Managers usually modify the misstatements, but they have motivations, like earnings management, for not altering the misstatements. The auditor expects to identify the misstatements’ earnings management, inform the managers and reduce earnings management by proposing adjustments. This study aims to determine whether identified and adjusted misstatements cause a decline in earnings management. Is the increase in the materiality of identified and adjusted misstatements associated with a reduction in earnings management?

The identified and adjusted misstatements are obtained from the difference between nonaudited financial statements and audited ones. Earnings management is computed using the adjusted Jones model, and the quantitative materiality threshold has also been calculated based on the Iranian auditors’ guidelines. These variables and other required information were gathered for 159 listed firms on the Tehran Stock Exchange during 2014–2019 and examined by the regression models.

The results show a negative relationship between identified and modified misstatements of total assets and earnings management and a positive and significant relationship between identified and adjusted misstatements of total liabilities and earnings management. However, the positive relationship between identified and adjusted misstatements of net income with earnings management is not significant. Besides, the relationship between the materiality difference and an absolute value of identified and adjusted misstatements (materiality minus the absolute value of misstatements) of total assets and earnings management is positive and significant, but the negative association between materiality difference and the absolute value of identified and adjusted misstatements of total assets and earnings management is not significant. The relationship between materiality difference and the absolute value of identified and adjusted net income and earnings management misstatements is negative and significant. These results indicate that the more material the identified and adjusted misstatements, the less earnings management.

The difference between nonaudited and audited financial statements represents identified and adjusted misstatements (audit adjustments). The client probably made some adjustments, but separating these adjustments from the auditor’s identified items was impossible with the available data.

The results show that significant audit adjustments decline earnings management. Paying more attention to a high-quality audit performed by the audit firms, auditors, managers and users and, consequently, discovering misstatements and adjusting or reporting them would decline the earnings management’s unfavorable impacts.

The unfavorable consequences of earnings management can cause the inappropriate transfer of wealth in the capital market and some investors’ loss to others’ benefit. These consequences can cause a loss of trust and leave unfavorable psychological effects on the capital market and society. Identifying and adjusting significant misstatements can lead to the decline of such impacts.

The previous studies assessed the relationship between identified and adjusted misstatements (audit adjustments) and earnings quality or earnings management. However, this study focuses on audit adjustments’ materiality to assess the impact of significant adjustments on earnings management.

This study aims to examine differences in regret between individuals with high vs low self-esteem that follows from negative appraisals for unsuccessful consumer decisions that are either congruent or not with perceived norms. This study also tested the mediating role of decision responsibility and the ability of psychological repair work in regulating regret.

Hypotheses were tested through four experimental studies using student and international panel samples across different consumer decision scenarios to generalize the findings of the study.

This study shows that high self-esteem individuals regret less a bad decision when it is congruent (normal) than when it is incongruent (abnormal) with the prevalent norms, while lower self-esteem individuals tend to regret equally both normal and abnormal decisions. This study further shows that this effect is driven by internal responsibility attributions. Finally, the results also suggest that high self-esteem people are more efficient than low self-esteem people in regulating regret, but only when the decision is abnormal.

The present research has important contributions to both regret and self-esteem literature. First, this study explored the role of self-esteem on regret, an individual variable that has been studied relatively little in regret literature. Second, this study has shown, consistent with recent findings, that decision congruence with the norms is a more suitable predictor of regret than whether the decision involves action or inaction. Finally, this study showed that stimulating individuals to self-enhance by engaging in psychological repair work led individuals to regulate regret, consistent with regret regulation theory.