The Shopping Momentum Effect

Dhar, Ravi; Huber, Joel; Khan, Uzma

doi:10.1509/jmkr.44.3.370

Cited by 182 publications

(156 citation statements)

References 29 publications

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“…Petty & Cacioppo, 1979;Ratneshwar, Warlop, Mick, & Seeger, 1997) may refer to a temporary increase in the salience of redeeming points for a reward, which may originate from the anticipation of a specific usage situation related to the redemption (e.g., a decision to redeem points for a visit to an amusement park that reinforces the subsequent motivation for utilizing the program). Dhar, Huber, & Khan (2007) found support for a similar shopping momentum effect where the propensity of subsequent purchases is enhanced merely by an initial decision to purchase.…”

Section: <Insert Figure 1 Here>mentioning

confidence: 84%

Reward redemption effects in a loyalty program when customers choose how much and when to redeem

Dorotić

Verhoef²,

Fok

et al. 2014

International Journal of Research in Marketing

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The redemption of loyalty program (LP) rewards has an important impact on LP members' behavior, particularly on purchase behavior before and after redeeming a reward. However, little is known about the interplay between members' purchase and redemption behavior when members are not pressured with points expiration and they choose for themselves when and how much to redeem. In this context, the effects of redemption are not straightforward, as little additional effort is required from an LP member to obtain the reward. Analyzing the behavior of 3,094 members in such an LP, we find that the mere decision to redeem a reward significantly enhances purchase behavior before and after the redemption event, even when members redeem just a fraction of their accumulated points. Conceptually, we refer to this enhancement as the redemption momentum, which is an alternative and novel explanation of the existence of pre-reward effects that does not depend on points-pressure. In addition to the overall impact of redemption on purchases, prior purchase behavior also enhances redemption decisions. Finally, we find a number of moderating effects on purchase and redemption behavior that derive from the length of LP membership, age, income and direct mailings. Our study's most important managerial implication is that firms can avoid imposing binding thresholds and/or points expiry and still enhance members' purchase behavior.

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Section: <Insert Figure 1 Here>mentioning

confidence: 84%

Reward redemption effects in a loyalty program when customers choose how much and when to redeem

Dorotić

Verhoef²,

Fok

et al. 2014

International Journal of Research in Marketing

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“…Moreover, they discuss behavioural influence perspective and experimental perspective. Dhar, Huber & Khan (2007) also talk about shopping momentum that occurs when an initial purchase provides a psychological impulse that enhances the purchase of a second, unrelated product. The authors propose that the most promising theoretical mechanism comes from Gollwitzer's (1990) theory about implementation and deliberation mindsets.…”

Section: Traditional Model Of Decision-makingmentioning

confidence: 99%

Explaining the Consumer Decision-Making Process: Critical Literature Review

Stankevich

2017

JIBRM

195

122

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ABSTRACT2017 Research Leap/Inovatus Services Ltd. All rights reserved. 10.18775/jibrm.184910.18775/jibrm. -8558.201510.18775/jibrm. .26.3001 URL: http://dx.doi.org/10.18775/jibrm.184910.18775/jibrm. -8558.2015 In the last years, research investigating consumer behaviour and how their decision-making process has advanced and has become an important topic in the marketing society and literature. To advance the research further, this paper presents an extensive literature review of academic publications in the area of buying decision-making process in marketing and its status. Furthermore, the paper presents latest trends and themes that emerge there. Based on 24 journal articles, reports and marketing books, the core models and theories in this area were evaluated and discussed. Moreover, a framework of "moments that matter" in consumer decision-making process and factors that influence them was elaborated for a possibility to influence consumer behaviour in favour of company's offers. Furthermore, recommendations for marketers were suggested for deeper understanding the consumer behaviour and their buying strategies to empower marketing campaigns and be a success in the market. The paper also suggests several directions for future research related to buying behaviour. DOI:

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“…As far as explicitly consumption oriented behaviors are concerned, there is mounting evidence that consumers' current preferences are influenced by the choices they have made in the past (Dhar, Huber, and Khan 2005) and the choices they expect to make in the future (Kahn and Dhar 2007). Moreover, it appears that consumers prefer to balance choices over time to service multiple goals (Dhar and Simonson 1999;Read, Loewenstein, and Rabin 1999).…”

Section: Consequences Of Unrealistic Optimismmentioning

confidence: 99%

Unrealistically Optimistic Consumers: A Selective Hypothesis Testing Account for Optimism in Predictions of Future Behavior

Tanner

2009

J Consum Res

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Individuals tend to make unrealistically optimistic self assessments about themselves and their future behavior. While little studied in marketing, unrealistic optimism by consumers may have negative consequences for both marketers and consumers. This dissertation proposes and explores a selective hypothesis testing view of unrealistic optimism. Specifically, I propose that consumers adopt the tentative hypothesis that they will behave in an ideal fashion when predicting their future behavior. They then selectively test this hypothesis by accessing information consistent with it, with the ultimate consequence being unrealistically optimistic predictions of future behavior.To validate this theory I use the following experimental paradigm. I have individuals first provide an idealized estimate for the behavior of interest (e.g., In an ideal world, how often would you exercise next week?) and then provide a second estimate (e.g., How often will you exercise next week?). The idea here is that by making the idealized nature of the ideal behavior salient consumers will be less likely to test a hypothesis of ideal behavior when subsequently providing an estimate. In a series of ten studies, I find that prior consideration of idealistic performance does indeed temper optimism in subsequent self-assessments (henceforth post-ideal estimates). Specifically, post-ideal estimates are free of relative optimism versus expectations of others v behaviors, are more reflective of actual past behavior, and better predict actual future behavior. Furthermore, this attenuation of optimism is mediated by increased consideration of realistic thoughts and is moderated by both expertise and decisiveness.All of these results are consistent with selective hypothesis testing being a key driver of unrealistic optimism. Additionally I demonstrate that the debiasing effect of my method extends from behaviors to above average (and in some cases below average) views of traits and abilities. As such my work raises the possibility that selective hypothesis testing underlies a wide variety of self assessment biases.Having found strong support for my selective hypothesis testing view of unrealistic optimism, I also explore the potential consequences that unrealistic optimism may have for consumer decisions. In particular, I demonstrate that unrealistically optimistic predictions of future behavior appear to be associated with greater willingness to pay for socially desirable products (e.g., treadmills) and that attenuation of such optimism can reduce willingness to pay. Some researchers have argued that unrealistic optimism with respect to future behavior causes people to make vice choices in the present because they expect to make virtuous choices in the future (Kahn and Dhar 2007). If so, then the current research suggests one way to help consumers from falling into the trap of justifying vice behaviors with optimistically held views about future actions.vi

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The Shopping Momentum Effect

Cited by 182 publications

References 29 publications

Reward redemption effects in a loyalty program when customers choose how much and when to redeem

Reward redemption effects in a loyalty program when customers choose how much and when to redeem

Explaining the Consumer Decision-Making Process: Critical Literature Review

Unrealistically Optimistic Consumers: A Selective Hypothesis Testing Account for Optimism in Predictions of Future Behavior

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