Download This Paper Open PDF in Browser

Deferring Versus Expediting Consumption: The Effect of Outcome Concreteness on Sensitivity to Time Horizon

Journal of Marketing Research, Forthcoming

37 Pages Posted: 13 Nov 2005  

Selin A. Malkoc

Washington University in Saint Louis - Olin Business School

Gal Zauberman

University of Pennsylvania - Marketing Department

Abstract

This work examines consumers' preferences for consumption timing. Specifically, we examine how temporal framing (deferring vs. expediting) of a decision moderates the sensitivity of consumers' pattern of discounting to changes in time horizon. In three experiments, we show greater decline in consumers' discount rates with time horizon (i.e., greater present bias) when deferring than when expediting consumption. The results are robust to using monetary and non-monetary outcomes, as well as to different time horizons (months, days). We further demonstrate that this difference in sensitivity is moderated by the different levels of mental representations (concreteness) triggered by the two decision frames.

Keywords: Intertemporal Choice, Temporal Framing, Hyperbolic Discounting, Temporal Construal

JEL Classification: D90, M0, M30

Suggested Citation

Malkoc, Selin A. and Zauberman, Gal, Deferring Versus Expediting Consumption: The Effect of Outcome Concreteness on Sensitivity to Time Horizon. Available at SSRN: https://ssrn.com/abstract=846924

Selin A. Malkoc (Contact Author)

Washington University in Saint Louis - Olin Business School ( email )

One Brookings Drive
Campus Box 1133
St. Louis, MO 63130-4899
United States
314-935-4846 (Phone)

HOME PAGE: http://apps.olin.wustl.edu/faculty/malkoc/

Gal Zauberman

University of Pennsylvania - Marketing Department ( email )

700 Jon M. Huntsman Hall
3730 Walnut Street
Philadelphia, PA 19104-6340
United States

Paper statistics

Downloads
133
rank
189,004
Abstract Views
1,129