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Article
Publication date: 12 October 2021

Hsin-Hsien Liu and Hsuan-Yi Chou

Inaction inertia is the phenomenon in which people are less likely to accept an opportunity after having previously missed a relatively superior one. This research explores how…

Abstract

Purpose

Inaction inertia is the phenomenon in which people are less likely to accept an opportunity after having previously missed a relatively superior one. This research explores how framing quantity promotions as either a freebie (e.g. “buy 1, get 1 free”) or a price bundle (e.g. “buy 2, get 50% off”) influences inaction inertia. Relevant mediators are also identified.

Design/methodology/approach

Three experiments, two using imaginary scenarios and one using an incentive-compatible design, test the hypotheses.

Findings

Consumers who miss a freebie quantity promotion express higher inaction inertia than consumers who miss a price bundle promotion. The cause of this difference is higher perceived regret and greater devaluation that result from missing a superior freebie (vs price bundle) promotion.

Research limitations/implications

Future research should examine how factors influencing perceived regret and devaluation moderate the quantity promotional frame effect on inaction inertia.

Practical implications

The findings provide insights into which quantity promotional frames practitioners should use to reduce inaction inertia.

Originality/value

This study's comprehensive theoretical framework predicts quantity promotional frame effects on inaction inertia and identifies relevant internal mechanisms. The findings are evidence that inaction inertia is caused by both perceived regret and devaluation in certain contexts. Furthermore, this study identifies the conditions in which a price bundle promotional frame is more beneficial than a freebie promotional frame.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 34 no. 7
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 24 March 2021

Hsin-Hsien Liu and Hsuan-Yi Chou

Taking a mental accounting theory perspective, this study explores how pricing strategy (all-inclusive vs partitioned) influences consumers' perceived residual value of a product…

Abstract

Purpose

Taking a mental accounting theory perspective, this study explores how pricing strategy (all-inclusive vs partitioned) influences consumers' perceived residual value of a product and their subsequent intentions to upgrade to a newer model.

Design/methodology/approach

A pilot study and two formal experiments were conducted to test the hypotheses.

Findings

A partitioned (vs all-inclusive) price causes consumers to later recall a lower total cost and perceive lower residual value for the existing product, thereby increasing upgrade intentions. This finding holds for both utilitarian and hedonic products. Perceived residual value mediates the impact of the pricing strategy on upgrade intentions. The pricing strategy effect is stronger for state-oriented individuals than for action-oriented individuals.

Originality/value

This study extends understanding of the impact of pricing strategies from consumers' short-term immediate demand to long-term upgrade intentions. It also identifies a previously uninvestigated moderator (action-state orientation), clarifying the boundary conditions of pricing strategy effects. The study's conceptual framework links pricing strategy, sunk costs, perceived residual value and upgrade intentions, providing rich insights and potential research paths. These findings further enhance understanding of upgrade intentions.

Details

Marketing Intelligence & Planning, vol. 39 no. 5
Type: Research Article
ISSN: 0263-4503

Keywords

Article
Publication date: 30 April 2024

Ying-Feng Kuo, Hsin-Hsien Liu and Tso-Hao Shen

Inaction inertia occurs when people are less likely to act on a similar but inferior option after missing a superior opportunity, compared to if they had not missed out. This…

Abstract

Purpose

Inaction inertia occurs when people are less likely to act on a similar but inferior option after missing a superior opportunity, compared to if they had not missed out. This study aims to explore how promotional formats and their sequence affect the inaction inertia effect in online shopping, under the assumption of economic equivalence.

Design/methodology/approach

The authors performed two online experiments and analyzed the data by analysis of variance.

Findings

The findings indicate that, under the premise of economic equivalence: Monetary promotions exhibit a higher inaction inertia effect on consumers than nonmonetary promotions. When consumers miss a more favorable promotion and subsequently encounter a relatively less attractive one presented in a different promotional format, the inaction inertia effect is lower than when reencountering the same promotion format. When consumers miss a better monetary promotion and presently encounter a relatively less attractive nonmonetary promotion, the inaction inertia effect is lower than when they miss a superior nonmonetary promotion and currently encounter a relatively less attractive monetary promotion.

Originality/value

This study reveals the sequence effects of promotional formats, indicating that nonmonetary promotions following monetary ones effectively reduce inaction inertia. A strategically sequenced set of formats enhances consumer recommendations, mitigating inaction inertia. These findings open new research paths, providing insights into the impact of promotional format sequences on the inaction inertia effect. Consequently, this knowledge helps e-retailers in implementing effective promotional strategies and driving online purchases.

Details

Journal of Consumer Marketing, vol. 41 no. 4
Type: Research Article
ISSN: 0736-3761

Keywords

Article
Publication date: 4 July 2020

Hsin-Hsien Liu and Hsuan-Yi Chou

Based on mental accounting theory, this study explored whether the comparability of missed and subsequent promotional formats/frames affects inaction inertia.

Abstract

Purpose

Based on mental accounting theory, this study explored whether the comparability of missed and subsequent promotional formats/frames affects inaction inertia.

Design/methodology/approach

Four experiments with imaginary and incentive-compatible designs were conducted to test the hypotheses.

Findings

Consumers are more likely to express inaction inertia after having missed a comparable promotion than after having missed a noncomparable promotion. Devaluation of the promoted target mediates the impact of comparability on inaction inertia, while referent others' actions do not moderate the comparability effect. Finally, when consumers accept a subsequent inferior promotion, they prefer using a different payment format because it reduces comparability of the two promotions.

Practical implications

Companies should use different promotional formats/frames to reduce comparability and inaction inertia when a new promotion is relatively inferior to a recent previous one. Companies should offer different payment options to help customers actively avoid comparing a current promotion with a missed promotion.

Originality/value

This study provides a more comprehensive conceptual structure for understanding the relationship between psychological comparability and inaction inertia. It provides insights into what actions companies should take to reduce inaction inertia. Furthermore, this study empirically tests the influence of multiple comparison referents, which provides a reference point for future studies on the factors affecting inaction inertia. A new method to examine whether consumers actively avoid comparisons is used, which clarifies the internal mechanism of inaction inertia.

Details

Marketing Intelligence & Planning, vol. 39 no. 1
Type: Research Article
ISSN: 0263-4503

Keywords

Article
Publication date: 25 June 2024

Chang-Yi Kao and Ching Huang

The main purpose of the study is to investigate the influence of live streaming participation on purchase intention, specifically focusing on how fear of missing out (FOMO…

Abstract

Purpose

The main purpose of the study is to investigate the influence of live streaming participation on purchase intention, specifically focusing on how fear of missing out (FOMO) impacts live streaming purchase intention and its subsequent effect on inaction inertia. Additionally, the study aims to ex-amine the indirect influence of FOMO on the relationship between live streaming participation and purchase intention.

Design/methodology/approach

The research employs SEM to assess the properties of measures. The investigation consists of four main constructs: live streaming shopping participation, fear of missing out, live streaming purchase intention, and inaction inertia. Live streaming shopping participation is further divided into two dimensions: live streaming immersion and live streaming social presence, with the latter encompassing social presence and telepresence.

Findings

The study reveals the significant role of FOMO in livestream shopping. Viewers' fear of missing out on information and products presented in livestreams results in heightened attention to these streams and an elevated willingness to purchase. This finding emphasizes the impact of FOMO emotions in driving consumer action and purchasing intent, particularly in situations of product scarcity.

Originality/value

The study uniquely explores FOMO as a factor disrupting consumer inertia, influencing decisive purchasing. It shows that FOMO enhances perceived value of products, altering consumer behavior in live streaming and e-commerce, thus providing a novel perspective on FOMO’s extended impact.

Details

Aslib Journal of Information Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2050-3806

Keywords

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