Lucky Loyalty: The Effect of Consumer Effort on Predictions of Randomly Determined Marketing Outcomes

Reczek, Rebecca Walker; Haws, Kelly L.; Summers, Christopher A.

doi:10.1086/678052

Cited by 54 publications

(52 citation statements)

References 37 publications

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“…While the broader consumer behavior literature has demonstrated the impact of one's own effort on a variety of consumer response domains including satisfaction (Lastner, Folse, Mangus, & Fennell, ; Mohr & Bitner, ; Roggeveen, Tsiros, & Grewal, ), promotional participation (Folse, Niedrich, & Grau, ), emotional responses (McColl‐Kennedy & Sparks, ), willingness to pay (Morales, ), and price fairness (Xia et al, ), no research that the authors are aware of has examined the influence of the effort of other consumers in the marketplace on perceptions of price fairness. Regardless of operationalizing effort in terms of the number of stores searched (Mowen & Grove, ), purchase volume (Folse et al, ) or transaction history (Reczek, Haws, & Summers, ), the focus of previous research has been on the efforts expended by the consumer, firsthand. The existing price fairness research examining effort has established that buyers readily justify paying lower prices relative to other consumers because they feel that their own purchase efforts warrant the better deal.…”

mentioning

confidence: 99%

I guess that is fair: How the efforts of other customers influence buyer price fairness perceptions

Lastner

Fennell

Folse

et al. 2019

Psychology and Marketing

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Past research has demonstrated that consumers' price fairness judgments are influenced by comparisons between the offer price they receive and the prices paid by other consumers for the same product offering. In today's digital age, reference points for purchases are more prevalent than ever. However, investigations on how certain inputs of the transaction affect these judgments is lacking. Specifically, extant research has failed to account for how the purchase efforts of other consumers can influence one's own price fairness evaluations. Moreover, relatively little empirical research has endeavored to understand the simultaneous cognitive and affective processes that explain how consumers arrive at price fairness judgments. To address these gaps in the literature, we introduce two studies aimed at understanding the process through which the salient efforts of referent consumers serve to mitigate perceptions of price unfairness when two customers pay different prices for the same product. The findings support a dual‐process model whereby the efforts of other (referent) customers serve to simultaneously reduce buyer anger and increase buyer understanding of the price disparity, ultimately mitigating perceptions of price unfairness.

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confidence: 99%

I guess that is fair: How the efforts of other customers influence buyer price fairness perceptions

Lastner

Fennell

Folse

et al. 2019

Psychology and Marketing

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“…Our study argues that belief in good luck can directly interfere with the attractiveness of loyalty programmes. In analysing the studies of the mechanisms of long‐term involvement of members, we found that belief in good luck can influence loyalty programmes differently via two specific mechanisms: (a) belief in good luck tends to positively influence rewarded behaviour mechanisms (Kim, Mengze, & Kannan, ; Taylor & Neslin, ), and (b) belief in bad luck tends to positively influence points‐pressure mechanisms (Reczek et al, ).…”

Section: Loyalty Programmes and Attractivenessmentioning

confidence: 99%

“…The perception of luck has already been analysed in several studies of consumption (Jiang et al, 2009;Prendergast & Thompson, 2008). In loyalty programme studies, Reczek, Haws, and Summers (2014) proposed that members of loyalty programmes believe that greater effort results in a greater likelihood of obtaining random promotional results. This implies that loyal clients respond to randomly determined outcomes.…”

Section: The Moderating Effect Of the Belief In Good Luckmentioning

confidence: 99%

“…This is because the consumer's perception of luck is reduced, thus diminishing the consumer's positive expectations regarding future performance (Jiang et al, 2009). In this case, it is observed that luck can influence consumer behaviour (Damisch et al, 2010;Kramer & Block, 2011;Reczek et al, 2014).…”

Section: The Moderating Effect Of the Belief In Good Luckmentioning

confidence: 99%

“…This consumer projection tends to reduce risk perception and make future expectations more optimistic and confident (Darke & Freedman, 1997a). In this case, the perception of luck will positively influence the attractiveness of a long-term marketing action (Jiang et al, 2009;Reczek et al, 2014). Loyalty programmes are long-term actions that routinely use a rewarded behaviour mechanism (Palmatier et al, 2009;Taylor & Neslin, 2005).…”

Section: The Moderating Effect Of the Belief In Good Luckmentioning

confidence: 99%

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Effects of belief in luck on the attractiveness of loyalty programmes

Ladeira

Santini

Sampaio

et al. 2017

J of Consumer Behaviour

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The aim of this article is to demonstrate that the perception of belief in luck affects loyalty programmes, causing people making cognitive (affective) choices to feel more (less) attracted. To validate our hypotheses, we conducted 3 related experiments (2 laboratory tests and 1 in the field). We found that the perception of belief in luck (bad or good) affects the relationship between loyalty programmes and attractiveness (Study 1). We study this effect considering the mechanisms of points‐pressure and rewarded behaviour. Thereafter, we established that cognitive (affective) decisions promoted an increase (decrease) in attractiveness when consumers were exposed to continuous loyalty programmes because their belief in luck was lower (Studies 2 and 3). We believe that these changes occur because the consumer's belief in luck masks the uncertainty in the decision‐making process.

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The Aggregated Extremes Effect: Not All Routes to “Balanced” Bundles are Equally Appealing

2019

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Prior research establishes that consumers are averse to extreme options, but what does a "moderate" option look like in the context of choices among bundles of items, such as investment portfolios or product assortment packs? We propose that for bundles, two paths to creating risk and reward balance exist: a "bundle-of-pure-moderation" with all moderate-risk-moderate-reward (moderate RR) components and a "bundle-of-extremes," composed of equal numbers of extreme high-risk-high-reward (high RR) and lowrisk-low-reward (low RR) components. We show that consumers have stronger preference for the balanced bundle when composed of a bundle-of-extremes rather than a bundle-of-pure-moderation, even when equated on expected value, a phenomenon we term "the aggregated extremes effect." This effect occurs across different choice set configurations and across multiple domains. Additionally, this effect is eliminated among consumers who view the high RR and low RR components as incompatible, as this undermines the perceived attractiveness of the bundle-of-extremes. Finally, this effect is also eliminated by exposing consumers to a depiction of potential outcomes, such that consumers can better perceive the risk reduction upside of a bundle-of-pure-moderation.

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Lucky Loyalty: The Effect of Consumer Effort on Predictions of Randomly Determined Marketing Outcomes

Cited by 54 publications

References 37 publications

I guess that is fair: How the efforts of other customers influence buyer price fairness perceptions

I guess that is fair: How the efforts of other customers influence buyer price fairness perceptions

Effects of belief in luck on the attractiveness of loyalty programmes

The Aggregated Extremes Effect: Not All Routes to “Balanced” Bundles are Equally Appealing

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