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Promotional formats and inaction inertia

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  • Liu, Hsin-Hsien
  • Chou, Hsuan-Yi

Abstract

Inaction inertia is the phenomenon in which people are less likely to accept an opportunity after having previously missed a relatively superior one. Based on mental accounting theory and the comparability of the current and missed opportunities, this study explores how promotional formats influence consumers’ inaction inertia. The authors propose that when the missed and current promotions are monetary (vs. nonmonetary), consumers perceive that these opportunities are more comparable, which results in consumers expressing higher inaction inertia. Two imaginary scenario experiments and one incentive-compatible experiment were conducted to test this prediction, and the results provide empirical support for it. Additionally, devaluation was determined to be the internal mechanism connecting promotional format with inaction inertia. These findings have significant practical and theoretical implications, the details of which are discussed herein.

Suggested Citation

  • Liu, Hsin-Hsien & Chou, Hsuan-Yi, 2018. "Promotional formats and inaction inertia," Journal of Economic Psychology, Elsevier, vol. 66(C), pages 22-32.
    • Handle: RePEc:eee:joepsy:v:66:y:2018:i:c:p:22-32
    DOI: 10.1016/j.joep.2018.04.001
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