The compromise effect in post-purchase consumption behavior : evidences from field experiments

Valli, Veronica ; Stahl, Florian ; Montaguti, Elisa

Document Type: Conference presentation
Year of publication: 2017
Conference title: 46th European Marketing Academy Conference
Location of the conference venue: Groningen, Netherlands
Date of the conference: May 23-26, 2017
Publication language: English
Institution: Business School > Quantitatives Marketing und Konsumentenverhalten (Stahl 2013-)
Subject: 330 Economics
Abstract: This paper investigates the long-term impact of the compromise effect (Simonson 1989) on individuals’ post-purchase consumption behaviors, on consumption satisfaction and on repeated purchases. We hypothesize that consumption behaviors of the same product/ service differ depending on whether the purchase decision has been influenced by a compromise effect or not. Furthermore, we analyze and reveal whether customers make complementary choices outside of their compromise purchase. Results of a field experiment examining post-purchase behaviors of a subscription-based service show that post-purchase consumption following the purchase of an intermediate product (i.e. a pre-paid card) in a choice set, is significantly different from the behaviors following the purchase of a product in a dual set. Specifically, respondents using a compromise pre-paid card purchase more outside the plan (showing higher variety seeking) than subjects who bought the same card in absence of a compromise effect.

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