Releasing the Regret Lock: Consumer Response to New Alternatives after a Sale

22 Pages Posted: 13 Apr 2016 Last revised: 15 Apr 2016

See all articles by Michael Tsiros

Michael Tsiros

University of Miami - Department of Marketing

Date Written: April 11, 2016

Abstract

This research examines how consumers behave after they miss a sale and subsequently face a smaller sale for the same or different product. According to the proposed theory, a two-way interaction is predicted in which adding another similar alternative to the choice set leads to higher choice deferral without prior sale information but lower choice deferral with information about missing a larger sale on one of the alternatives. In addition, the new alternative in the choice set becomes more attractive and captures most of the market share. The results from three lab experiments and one field experiment confirm the hypotheses and the proposed mechanism. The article concludes with a discussion of the theoretical and managerial implications of the findings.

Suggested Citation

Tsiros, Michael, Releasing the Regret Lock: Consumer Response to New Alternatives after a Sale (April 11, 2016). Journal of Consumer Research, Vol. 35, p. 1039, April 2009. Available at SSRN: https://ssrn.com/abstract=2763131

Michael Tsiros (Contact Author)

University of Miami - Department of Marketing ( email )

United States

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