Although existing research suggests that personality plays an important role in explaining compulsive buying behavior, there is still potential space to diagnose the theoretical mediational ...mechanisms underlying these effects or the extent to which these relationships vary across different consumer demographic groups. Indeed, the role of specific personality traits on hedonistic shopping experiences and compulsive buying still awaits an in-depth examination and clarification. Thus, the present research contributes to existing knowledge by: (1) examining hedonistic shopping experiences (HSE) as a mediating mechanism on compulsive buying (CB); and (2) investigating the role of gender as a moderating variable. Using a sample of 363 adults and data derived from the US market, we confirmed the role of hedonistic shopping experiences, a central trait, in mediating the effects of cardinal traits (i.e., neuroticism, extraversion, openness to experience, conscientiousness and agreeableness), on compulsive buying, a surface trait. Specifically, neuroticism, extraversion, openness to experience exerted a more indirect and positive influence on compulsive buying, while conscientiousness and agreeableness showed a stronger direct and negative relationship with hedonistic shopping experiences and compulsive buying. In addition, neuroticism, extraversion, and openness to experience were a stronger driver of compulsive buying for women than for men, while conscientiousness and agreeableness jointly decreased the importance of hedonistic shopping experiences, and more strongly inhibited compulsive buying for women than for men. The research findings offer important theoretical, public policy and marketing implications.
The authors develop a motivation theory of online buyer behavior for daily deal promotions with a focus on compulsive buyers. The theory helps explain and predict compulsive buyers' online or mobile ...shopping motivations. Further, the theory explains mobile/online buyer's psychological responses to contextual factors in online daily deal promotions. Daily deal promotions display indicators that may increase time pressure (e.g., product is available for today only claims) and social pressure (e.g., 834 other consumers have purchased claims). The authors empirically show that daily deal websites represent an especially tempting shopping context for compulsive buyers due to hedonic and social motives that influence consumers' response to such contextual factors. To protect this vulnerable consumer segment from overspending, the implications for retailers and daily deal site managers are to lessen the prominence of high-pressure indicators, such as number of deals sold to other consumers and the seconds remaining to purchase.
Many companies struggle with the consequences of introducing prices for previously free services, known as free-to-fee switches. We compare an unexpected forced free-to-fee switch, in which continued ...usage is only possible if the fee is paid, to a freemium switch, which entails the option to use a service with reduced features for free. Integrating price fairness theory and the concept of cannibalization, three experimental studies reveal detrimental effects of free-to-fee switches on fairness perceptions, attitude toward the company, and purchase intentions, which may partly be attenuated by a freemium switch. Furthermore, we examine different levels of feature reduction as a way for improving the effectiveness of free-to-fee switches. Overall, the findings question the common practice of unexpectedly introducing freemium business models, contribute to a better understanding of customer reactions to free-to-fee switches, and provide recommendations for companies intending to introduce a price for free services.
In this research, we develop a comprehensive theoretical model of the consumer response to penalties and the penalty resolution process. Two mechanisms of consumers’ response to penalty resolution ...are proposed: the perceptions of penalty fairness and feelings of gratitude. We delineate and test differences between gratitude and perceived fairness and identify factors differentially affecting them. Factors influencing feeling of entitlement, such as nature of the error, and consumer history and status with the provider, contribute to fairness perceptions. On the other hand, firm-customer interactions influence both gratitude and fairness assessments. Specifically, the penalty outcome provides benefits, hence induces gratitude, and is also perceived as the right thing to do, hence induces perceptions of fairness. However, factors that contribute to benefits received, but do not align with equity, such as type and uniqueness of compensation, influence gratitude only. The findings also confirm that, compared with fairness, gratitude more strongly influences active profirm behaviors, such as advocacy. This research offers important managerial implications. The findings suggest that service providers should consider customer history and relationship status in the penalty resolution process. Meeting customer expectations will enhance fairness perceptions and minimize the negative effect on loyalty. Further, flexible procedures for handling penalties, preferred type of compensation, and selectivity in treatment should stimulate feelings of gratitude and motivate consumers to actively promote the company via positive word of mouth.
This research investigates online consumer behavior in an e-commerce context with a focus on consumer online shopping cart use and subsequent cart abandonment. A model rooted in the Uses and ...Gratifications Theory, the Unified Theory of Acceptance and Use of Technology, and the concept of the purchase funnel is developed to explain the predicted relationships. Empirical findings based on clickstream data show that returning to an existing cart increases the subsequent cart use and decreases cart abandonment. Conversely, viewing clearance pages and viewing a large number of product reviews increases both cart use and cart abandonment. Browsing product pages decreases cart use, and increases cart abandonment. The moderating role of smartphone-based shopping is also examined, with the moderating effects primarily occurring early in the purchase funnel affecting cart use, and influencing cart abandonment to a smaller degree. Theoretical contributions and managerial implications for digital marketers are provided.
An important trend that has emerged within the past decade is a tendency towards a sharing economy, where consumers share with, lend to or rent from other consumers rather than buy and own. While ...research interest in the topic abounds, no studies have empirically examined the effects of consumers’ orientation towards lending or renting (i.e., de-ownership orientation) on their compulsive and impulsive digital acquisition tendencies. To fill in these gaps, the authors explicate how consumers’ de-ownership orientation influences digital piracy as a dark-side digital acquisition behavior through their compulsive and impulsive digital acquisition tendencies. Findings from a U.S. panel survey indicate that consumers’ de-ownership orientation leads to higher compulsive and impulsive digital acquisition tendencies, and consequently, stimulates digital piracy. This research also demonstrates that consumers’ moral intensity attenuates the identified positive relationships, while collectivistic feelings strengthen the effects of de-ownership orientation on compulsive and impulsive digital acquisition tendencies.
The authors investigate consumers' motivations for placing items in an online shopping cart with or without buying, termed virtual cart use. While retailers offer virtual carts as a functional ...holding space for intended online purchases, this study, based on a national online sample, reveals other powerful utilitarian and hedonic motivations that explain the frequency of consumers' online cart use. Beyond current purchase intentions, the investigated reasons for why consumers place items in their carts include: securing online price promotions, obtaining more information on certain products, organizing shopping items, and entertainment. Based on empirical findings, the authors offer managerial suggestions for enhancing online shopping-to-buying conversion rates.
This research sheds light on the theoretical mechanism behind consumer discounting of discounts and extends it to the online daily deals context. Based on advertising and behavioral pricing research, ...we develop and empirically test a conceptual model of the effects of discount level on consumer perceptions of discount credibility, the extent of discounting of discounts, and change in purchase intentions for online daily deal promotions as compared with price promotions offered directly by online stores. The findings offer important managerial recommendations for retailers and daily deal managers with respect to utilizing direct online price promotions and daily deal promotions.
The viability of online dynamic pricing, or differential pricing for the same product from the same seller, is still debatable given the contradictory findings reported in both modeling and ...behavioral price research. This paper examines tactical ways for online merchants to mitigate consumers’ negative reactions when adopting dynamic pricing strategies. In three experiments, we show that using various price-framing tactics, compared to no framing, can induce price-disadvantaged consumers to perceive their ostensibly similar transactions differently relative to their comparative other parties. As the degree of perceived transaction dissimilarity increases, price-disadvantaged consumers’ perceived price fairness, trust, and repurchase intentions are enhanced. We further compare different price framing tactics and demonstrate that they have different effects on consumers across different product price levels, customer segments, and framing formats. The paper concludes with theoretical and managerial implications of the research.
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► In this study, we evaluate compulsive and non-compulsive buyers’ response to price. ► In a national survey, 16 percent of the sample was categorized as compulsive buyers. ► We find ...that compulsive buyers tend to have a heightened response to price. ► They possess greater price knowledge, are more brand conscious and prestige sensitive. ► They derive greater transaction value from price deals and are price and sales prone.
The present research examines the relationship between consumers’ tendencies to buy compulsively and their response to price based on a survey of customers of an Internet clothing retailer. The research findings suggest that compulsive buyers possess greater knowledge of store prices and are more brand conscious and prestige sensitive in comparison with non-compulsive buyers. Moreover, compulsive buyers derive greater transaction value from price promotions and are more price conscious and sale prone than non-compulsive buyers.
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