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Anticipating a regrettable purchase Implications of erroneous affective forecasting for marketing planning

Anticipating a regrettable purchase Implications of erroneous affective forecasting for marketing... Purpose – The purpose of this paper is to present the concept of consumers' erroneous affective self‐forecasts, and discuss the implications of such forecasts for consumer purchasing behaviour and marketing planning. Design/methodology/approach – First, the literature on inaction inertia – the lowering of the likelihood that a bargain will be taken once a better bargain has been missed – is reviewed. Second, the literature on affective self‐forecasting is reviewed. Finally, the implications that the authors synthesis of the behavioural evidence carries for marketing are discussed. Findings – The inaction inertia literature implicates the regret that consumers associate with purchasing a discounted item once they have missed a much larger discount on it as a major contributing factor to consumers' unwillingness to purchase the item on the second occasion. The literature on affective self‐prediction suggests that regret (and other emotions) is systematically mispredicted. Research limitations/implications – The likely effect of erroneously anticipated regret in inaction inertia situations is depressed purchasing behaviour. The paper argues that because affective anticipations are typically erroneous, their impact on consumer decision‐making processes cannot be deemed rational. It is proposed that marketing should intervene to either increase the accuracy of such anticipations, or to lead consumers to discount them. Practical implications – Price promotions can have negative side effects, such as those observed in inaction inertia circumstances. To some extent, these are driven by consumers anticipated regret (and possibly other relevant emotions). Marketing techniques can counteract the disproportionate impact of such emotions. Originality/value – The paper offers a synthesis of behavioural evidence on inaction inertia and affective self‐forecasting – two quite separate literatures that have yet to be brought together in the present context. In addition, the paper outlines implications for marketing and suggests possible strategies to moderate the discussed effects. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Marketing Intelligence & Planning Emerald Publishing

Anticipating a regrettable purchase Implications of erroneous affective forecasting for marketing planning

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Publisher
Emerald Publishing
Copyright
Copyright © 2008 Emerald Group Publishing Limited. All rights reserved.
ISSN
0263-4503
DOI
10.1108/02634500810879287
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this paper is to present the concept of consumers' erroneous affective self‐forecasts, and discuss the implications of such forecasts for consumer purchasing behaviour and marketing planning. Design/methodology/approach – First, the literature on inaction inertia – the lowering of the likelihood that a bargain will be taken once a better bargain has been missed – is reviewed. Second, the literature on affective self‐forecasting is reviewed. Finally, the implications that the authors synthesis of the behavioural evidence carries for marketing are discussed. Findings – The inaction inertia literature implicates the regret that consumers associate with purchasing a discounted item once they have missed a much larger discount on it as a major contributing factor to consumers' unwillingness to purchase the item on the second occasion. The literature on affective self‐prediction suggests that regret (and other emotions) is systematically mispredicted. Research limitations/implications – The likely effect of erroneously anticipated regret in inaction inertia situations is depressed purchasing behaviour. The paper argues that because affective anticipations are typically erroneous, their impact on consumer decision‐making processes cannot be deemed rational. It is proposed that marketing should intervene to either increase the accuracy of such anticipations, or to lead consumers to discount them. Practical implications – Price promotions can have negative side effects, such as those observed in inaction inertia circumstances. To some extent, these are driven by consumers anticipated regret (and possibly other relevant emotions). Marketing techniques can counteract the disproportionate impact of such emotions. Originality/value – The paper offers a synthesis of behavioural evidence on inaction inertia and affective self‐forecasting – two quite separate literatures that have yet to be brought together in the present context. In addition, the paper outlines implications for marketing and suggests possible strategies to moderate the discussed effects.

Journal

Marketing Intelligence & PlanningEmerald Publishing

Published: Jun 13, 2008

Keywords: Consumer behaviour; Pricing; Advertising; Decision making; Sales forecasting

References