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How consumers deal with missed discounts: Transaction decoupling, action orientation and inaction inertia

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  • van Putten, Marijke
  • Zeelenberg, Marcel
  • van Dijk, Eric

Abstract

Attractive bonuses and large discounts are often successfully used to attract new customers and increase sales. However, from a marketing perspective these attractive opportunities might have a negative side effect, as they decrease subsequent sales to the consumers who missed them. In this review article we discuss how the inability to regulate the pain of missed opportunities might lead to this so-called inaction inertia effect. We argue that deficiencies in self-regulation may be explained on the basis of a combination of contextual and personality factors. We present literature on contextual factors that facilitate regulation (decoupling factors), and action orientation, an individual characteristic that enhances regulation. Finally, we discuss the practical implications of these results for the marketing and consumer behavior literature.

Suggested Citation

  • van Putten, Marijke & Zeelenberg, Marcel & van Dijk, Eric, 2013. "How consumers deal with missed discounts: Transaction decoupling, action orientation and inaction inertia," Journal of Economic Psychology, Elsevier, vol. 38(C), pages 104-110.
    • Handle: RePEc:eee:joepsy:v:38:y:2013:i:c:p:104-110
    DOI: 10.1016/j.joep.2012.09.008
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    References listed on IDEAS

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    7. repec:cup:judgdm:v:2:y:2007:i::p:333-341 is not listed on IDEAS
    8. Zeelenberg, Marcel & Nijstad, Bernard A. & van Putten, Marijke & van Dijk, Eric, 2006. "Inaction inertia, regret, and valuation: A closer look," Organizational Behavior and Human Decision Processes, Elsevier, vol. 101(1), pages 89-104, September.
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    Cited by:

    1. Lu, Jingyi & Jia, Huiyuan & Xie, Xiaofei & Wang, Qiuhong, 2016. "Missing the best opportunity; who can seize the next one? Agents show less inaction inertia than personal decision makers," Journal of Economic Psychology, Elsevier, vol. 54(C), pages 100-112.
    2. Liu, Hsin-Hsien & Chou, Hsuan-Yi, 2018. "Promotional formats and inaction inertia," Journal of Economic Psychology, Elsevier, vol. 66(C), pages 22-32.
    3. Hagen, Johannes & Malisa, Amedeus, 2022. "Financial fraud and individual investment behavior," Journal of Economic Behavior & Organization, Elsevier, vol. 203(C), pages 593-626.
    4. Jung, Dominik & Erdfelder, Edgar & Bröder, Arndt & Dorner, Verena, 2019. "Differentiating motivational and cognitive explanations for decision inertia," Journal of Economic Psychology, Elsevier, vol. 72(C), pages 30-44.
    5. Wood, Matthew S. & Williams, David W. & Drover, Will, 2017. "Past as prologue: Entrepreneurial inaction decisions and subsequent action judgments," Journal of Business Venturing, Elsevier, vol. 32(1), pages 107-127.

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    More about this item

    Keywords

    Inaction inertia; Transaction decoupling; Action orientation; Sunk cost fallacy; Self-regulation; Consumer psychology;
    All these keywords.

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles

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