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Article
Publication date: 2 April 2019

Aruna Divya Tatavarthy and Kanchan Mukherjee

Unlike point of purchase behavior, not much is known about how payment method impacts post-purchase behavior, especially for durable goods where user experience can last over long…

Abstract

Purpose

Unlike point of purchase behavior, not much is known about how payment method impacts post-purchase behavior, especially for durable goods where user experience can last over long periods. The purpose of this paper is to link two strands of literature for the first time by uncovering systematic linkages between the payment method (upfront cash vs loan) used for purchase of durable goods and the replacement timings for the same.

Design/methodology/approach

The authors predict that cash purchases are more likely to have shorter replacement horizons compared to loan purchases and propose a psychological mechanism that accounts for the same. Their arguments are based on how the strength of coupling, which is the degree of psychological association between payment and consumption, depends on the payment method and differentially influences the consumption experience and consequently leads to different replacement horizons. They conduct a field study to test their predictions and find support for their model.

Findings

The authors find that individuals who financed their durable goods purchases using loan, expressed their intentions to replace the goods after longer period than those who financed their durable goods with cash down payment. As loan installments remind people of painful thoughts of payment, they tend to reduce the dissonance by positively evaluating both retrospective and anticipated usage experiences. This dissonance reduction mechanism eventually leads to reduced willingness to let go of the durable.

Practical implications

Marketers are faced with a tradeoff between increasing purchase likelihood versus ensuring long-term post-purchase satisfaction. In this paper, the authors uncover the psychological mechanisms that can explain how payment method chosen to pay for a durable can have direct effect on post-purchase consumption experiences and subsequently in the replacement intentions. This finding is crucial for marketers who are interested in planning the product line launches and other post-purchase engagement strategies such as buy-back scheme and upgrades.

Social implications

Understanding the psychological mechanisms that explain individual’s likelihood to replace their durable goods allows policymakers to design appropriate interventions to induce more sustainable and efficient use of durable goods in the market. While on one hand, marketers might be interested in increasing sales of their product line by inducing faster replacement of older product versions, environmentalists nudge towards the opposite. This paper provides a possible way to achieve the dual objectives.

Originality/value

While past research on downstream effects of payment methods on behavioral outcomes focused only on consumables, the authors focus on durable goods. Further, they identify the effect of payment method on both psychological and behavioral outcomes.

Details

Journal of Consumer Marketing, vol. 36 no. 4
Type: Research Article
ISSN: 0736-3761

Keywords

Article
Publication date: 30 November 2018

Kanchan Mukherjee and Divya Upadhyay

This paper aims to explore the psychological antecedents and processes that lead to competitive or cooperative attitudes in conflict management using the lens of construal level…

1077

Abstract

Purpose

This paper aims to explore the psychological antecedents and processes that lead to competitive or cooperative attitudes in conflict management using the lens of construal level theory (CLT). CLT suggests that adopting a distal versus proximal psychological perspective changes the way people think and behave. This research explores the systematic effect of these abstract versus concrete mental construals on preferred conflict management styles.

Design/methodology/approach

First, theoretically grounded hypotheses linking different mental construals to cooperative and competitive conflict management styles were formulated. Subsequently, four empirical studies were conducted to test the hypotheses.

Findings

The studies provide support to the hypotheses showing that high construal abstract thinking is linked to preference for cooperation while low construal thinking is linked to preference for competition. Further, two different psychological processes mediate participants’ preferences for cooperative and competitive conflict management styles, the former mediated by perspective taking and empathic concern and the latter by impulsivity and aggression.

Research limitations/implications

The research measures conflict management styles rather than actual behavior. Also, focus is on trait mental construals rather than priming of high or low construal thinking.

Practical implications

Deeper understanding of the psychology of cooperative and competitive conflict management styles can help parties attain better outcomes and can potentially contribute to training and talent development by educating conflict management practitioners.

Social implications

The findings of this research can potentially inform effective interventions aimed at reducing intergroup conflicts.

Originality/value

Mental construals and related psychological processes are linked to conflict management styles for the first time.

Details

International Journal of Conflict Management, vol. 30 no. 2
Type: Research Article
ISSN: 1044-4068

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