Purpose -This paper investigates the direct and interactive effects of regulatory focus (promotion versus prevention), attribute type (search versus experience) and word of mouth valence (positive versus negative) on consumption decision for a service and a product.Design/methodology/approach -Three empirical studies (two laboratories and a field experiment) using 'university' and 'mobile phone' as the research setting were used to test the key hypotheses.Findings -Promotion (prevention) focused subjects preferred experience (search) attributes over their counterparts while making consumption decision. This preference was further reinforced for both promotion and prevention focused people under positive word of mouth.Under negative word of mouth, in comparison to their counterparts, promotion focused people still retained their preference for experience attributes, while prevention focused subjects reversed their preference and maintained status quo.
Research limitations/implications -Future research may validate and extend our findingsby looking into the underlying process or studying additional word of mouth variables that may moderate the current findings.Practical implications -Our findings will help managers devise a range of marketing strategies in the areas of advertising and product positioning, especially for products/services that are showcased in terms of experience and search attributes.Originality/value -The current research is novel as no prior research has proposed and tested the two-way interaction between regulatory focus and search/experience attributes, or it's further moderation by word of mouth valence.
IntroductionIt has been well established in the marketing literature that regulatory orientation of consumers systematically influences their product evaluation and choices (Roy and Ng, 2012;Chatterjee et al., 2011;Lee and Aaker, 2004;Chernev, 2004;Pham and Avnet, 2004). In particular, these studies show that when the regulatory focus of a consumer is matched with a certain type of product attribute, it results in higher persuasion and purchase intention. The literature defines two kinds of regulatory orientation (e.g., Higgins, 1997): first, a state that involves self-regulation towards achievement/advancement in life and involves a 'promotion focus' versus 'prevention focus', which involves self-regulation towards safety/security needs in life. A range of product attributes like hedonic versus utilitarian, imagery versus concrete, performance versus safety etc. have been known to moderate the effect of regulatory focus on product decisions (Roy and Phau, 2014;Chernev, 2004;Lee and Aaker, 2004). In recent times, researchers have recommended greater inquiries into how search and experience product attributes influence consumption (Hyo-Jin et al., 2014;Brakus et al., 2014). Given the role of regulatory focus in influencing choice of attributes, the current work explores how this motivational state may influence choice of search and experience attributes in product decisions (Gap 1).On the other...