Restaurant membership fee and customer choice: The effects of sunk cost and feelings of regret

Jang, Dongsuk; Mattila, Anna S.; Bai, Billy

doi:10.1016/j.ijhm.2006.06.001

Cited by 28 publications

(25 citation statements)

References 28 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…From a rational perspective, a sunk cost that cannot be recovered should not affect the consumer’s purchase decision or attitude. However, previous studies have shown that in the consumer decision-making process, the sunk cost effect cannot be ignored [ 17 , 18 ]. Sunk costs in the research mainly refer to the remaining drug and other costs (tutelage costs, etc.)…”

Section: Methodsmentioning

confidence: 99%

Consequences, measurement, and evaluation of the costs associated with adverse drug reactions among hospitalized patients in China

Shi

Jiang

Ding

et al. 2014

BMC Health Serv Res

View full text Add to dashboard Cite

BackgroundAdverse drug reactions (ADRs) are a leading cause of morbidity in developed countries and represent a substantial burden on health-care resources. Many countries spent 15% to 20% of their hospital budgets to treat drug complications. However, few studies have measured the pharmacoeconomic effects of ADRs on hospitalized patients in China. The study estimates the costs of ADRs as identified from the spontaneous voluntary reports completed from healthcare professionals. To do so, we calculate these costs, determine the sum of Medicare payments and their proportion of total healthcare spending, and evaluate the incidence of ADRs, characteristics of hospitalized ADR patients, and outcomes of ADRs in China.MethodsThis retrospective survey studied patients who experienced ADRs during their hospitalization at a Chinese tertiary-care teaching hospital. The patients were divided into group A and group B according to general ADRs and serious ADRs in Provisions for Adverse Drug Reaction Monitoring and Reporting. The direct costs included treatment fees, inspection fees, laboratory fees, materials fees, bed charges, drug charges, nursing care, meals, and other expenses and the sunk-cost losses were calculated according to the hospital information system (HIS). Indirect costs of ADR treatment were calculated according to the human capital approach. The epidemiological characteristics of ADRs were evaluated.Results2739 were diagnosed with ADR during the study period, which translates to an ADR rate of 0.81%. The total socioeconomic loss from 2739 cases of ADR was estimated at ¥817401.69, consisting of direct costs of ¥603252.81 and indirect costs of ¥214148.88. On average, the costs per patient amounted to ¥196.10 in group A, ¥7032.29 in group B. The sum of medicare payment and proportion were ¥219061.13 (65.23%) and ¥105422.02 (39.42%) in group A and B. The ADR incidence in old-age patients was significantly higher than in other age groups (P < 0.0001). The most common drug class associated with ADRs represented antibiotics (957 patients, 34.94%).ConclusionsThe costs of especially severe ADRs could not be ignored, and in this hospital 0.13% of patients were diagnosed with ADRs associated with relatively higher direct costs than who suffered from mild ADRs, largely due to extended hospitalization.

show abstract

Section: Methodsmentioning

confidence: 99%

Consequences, measurement, and evaluation of the costs associated with adverse drug reactions among hospitalized patients in China

Shi

Jiang

Ding

et al. 2014

BMC Health Serv Res

View full text Add to dashboard Cite

show abstract

“…Past research has examined how the size of prior investment/purchase influences the decision making of future purchases (Park and Jang 2014; Stevens, More, and Markowski-Lindsay 2014; Jang, Mattila, and Bai 2007). For instance, Jang, Mattila, and Bai (2007) found that when a high membership fee was paid for a restaurant, customers chose to continue their patronage with the restaurant regardless of whether its competitor provided superior services with a free membership. However, no research in this area has investigated the effect of composite price in a tourism context.…”

Section: Literature Reviewmentioning

confidence: 99%

Left-Digit Effect in Tourists’ Price Evaluations: The Moderating Role of Price Level and Composite Price

Zou

Petrick

2020

Journal of Travel Research

View full text Add to dashboard Cite

Past research has found that the effect of odd-ending price (e.g., $9.99) can be explained by the left-digit effect whereby the leftmost digits of both prices influence the comparison of a pair of prices. However, research on psychological pricing has mostly focused on low-priced retailing products and the focal product’s price per se. Informed by prospect theory, this study extended this line of work by examining how the effect of left-digit pricing varies with the magnitude of hotel room rates (i.e., price level) and the size of prior investment in other travel components (i.e., composite price). The results of 2×2×2 experimental revealed that left-digit pricing was an effective tactic to increase purchase intentions for low-priced hotels. It was also found that tourists who have made a substantial prepayment on other travel components were responsive to the tactic. Additionally, composite price and left-digit pricing were found to moderate the relationship between perceived value and purchase intentions.

show abstract

“…In economics research, this process is referred to as the sunk cost effect (Thaler, 1980). Research in this vein has found that “paying for the right to use a good or service will increase the rate at which the good will be utilized” (Thaler, 1980: 47, see also Anderson, 2009; Jang et al, 2007). By “sinking” money into purchasing a single piece of content, the user will likely utilize the content to a greater extent than a user who gets the same content for free.…”

Section: Story Selection and Engagementmentioning

confidence: 99%

The effects of micropayments on online news story selection and engagement

Geidner

D'Arcy

2013

New Media & Society

View full text Add to dashboard Cite

This study examines the effects of micropayments on individuals' selection and engagement with online journalism. Micropayment represent a means of monetizing online content in which the user pays a small amount of money (i.e., pennies to a few dollars) for each story purchased. Realistically, micropayments have not been a viable option until recently. With the introduction of Google Wallet and other payment infrastructures, micropayments are on the tipping point of mainstream acceptance and use. This study utilizes an experimental design (N = 156) in which motivation (low versus high) and cost (no pay versus pay) were manipulated. The findings demonstrate that while individuals are willing to purchase news via micropayment, they become less likely to select news from opinion-challenging sources. In light of the results, the implications discussed include suggestions for media producers on how to create effective micropayment systems.

show abstract

Restaurant membership fee and customer choice: The effects of sunk cost and feelings of regret

Cited by 28 publications

References 28 publications

Consequences, measurement, and evaluation of the costs associated with adverse drug reactions among hospitalized patients in China

Consequences, measurement, and evaluation of the costs associated with adverse drug reactions among hospitalized patients in China

Left-Digit Effect in Tourists’ Price Evaluations: The Moderating Role of Price Level and Composite Price

The effects of micropayments on online news story selection and engagement

Contact Info

Product

Resources

About