How Salary Receipt Affects Consumers' Regulatory Motivations and Product Preferences

Journal of Marketing, Forthcoming

37 Pages Posted: 26 Jan 2010

See all articles by Himanshu Mishra

Himanshu Mishra

University of Utah - David Eccles School of Business

Arul Mishra

University of Utah - David Eccles School of Business

Dhananjay Nayakankuppam

University of Iowa

Date Written: January 25, 2010

Abstract

In this article, we find that consumer preferences change as a function of one's temporal distance from the receipt of the last salary. We propose and test that when consumers have just received their salary (we call this the near-salary condition) they exhibit promotion motivations in their product preference. However, they exhibit prevention motivations in their product preference when a significant time has elapsed since last salary receipt (we call this the far-from-salary condition). We collected data from two longitudinal studies to validate these findings and to test the underlying process. Utilizing actual purchase behavior and collecting product preference over a month we show that consumers' product preferences change in response to temporal distance from last salary receipt. The findings suggest to managers that the best time to promote products or messages with a promotion appeal is the near-salary condition and those with a prevention appeal is the far-from-salary condition.

Keywords: Regulatory focus, Salary receipt, Cyclical preferences, Promotion and Prevention focus, Motivation

JEL Classification: M30, M31, M39, C91, C93, P46, M50

Suggested Citation

Mishra, Himanshu and Mishra, Arul and Nayakankuppam, Dhananjay, How Salary Receipt Affects Consumers' Regulatory Motivations and Product Preferences (January 25, 2010). Journal of Marketing, Forthcoming, Available at SSRN: https://ssrn.com/abstract=1542080

Himanshu Mishra (Contact Author)

University of Utah - David Eccles School of Business ( email )

1645 E. Campus Center Drive
Salt Lake City, UT 84112-9304
United States

HOME PAGE: http://himanshumishra.com

Arul Mishra

University of Utah - David Eccles School of Business ( email )

1645 E. Campus Center
Salt Lake City, UT 84112
United States

Dhananjay Nayakankuppam

University of Iowa ( email )

341 Schaeffer Hall
Iowa City, IA 52242-1097
United States

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