Effects of quantity promotional frames on inaction inertia

Abstract

PurposeInaction 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/approachThree experiments, two using imaginary scenarios and one using an incentive-compatible design, test the hypotheses.FindingsConsumers 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/implicationsFuture research should examine how factors influencing perceived regret and devaluation moderate the quantity promotional frame effect on inaction inertia.Practical implicationsThe findings provide insights into which quantity promotional frames practitioners should use to reduce inaction inertia.Originality/valueThis 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.

Inaction inertia in online shopping: impact of promotional formats and sequence

“…These factors may include psychological distance (Arkes et al , 2002; Zeelenberg et al , 2006), different promotional frames (e.g. “buy one, get one free” vs “buy two, get 50% off,” Liu and Chou, 2022) and various product types (Liu and Chou, 2019b).…”

The trinity of extended service quality, distinct perceived value, and customer loyalty facilitators

“…For example, Lee (2022) empirically analyzed the entire trust-building process of how distinct perceived value affects trust through satisfaction with exhibitions and concluded that trust is directly and indirectly affected by the integrated relationships between distinct perceived value and satisfaction. Inertia, a consistent pattern of repurchasing the same brand in the context of lower effort and habitual consumption activities (Koll and Plank, 2022;Liu and Chou, 2021;Solomon, 2004), is also a critical construct in building long-term relationships (Henderson et al, 2021;Seth et al, 2020). Inertia as convenience seeking or habitual attachment (Gounaris and Stathakopoulos, 2004) is inherently and primarily directed towards minimizing, reducing, or saving decision-making costs, time, and effort (Corstjens and Lal, 2000;Vogel et al, 2008).…”