IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v66y12i2020p5757-5782.html
   My bibliography  Save this article

When and Why Consumers “Accidentally” Endanger Their Products

Author

Listed:
  • Yaniv Shani

    (Coller School of Management, Tel Aviv University, Ramat Aviv 6997801, Israel)

  • Gil Appel

    (Marshall School of Business, University of Southern California, Los Angeles, California 90089)

  • Shai Danziger

    (Coller School of Management, Tel Aviv University, Ramat Aviv 6997801, Israel; University of Sydney Business School, Sydney, New South Wales 2006, Australia)

  • Ron Shachar

    (Arison School of Business, Interdisciplinary Center, Herzliya 4610101, Israel)

Abstract

In this article, we examine whether consumers may “accidentally” endanger a product they own when a new version of the product is introduced. We propose that owners endanger their product when they want to upgrade to a new version but have difficulty justifying the upgrade and that owners find justification more difficult when a new version offers an improved design but does not offer a significant technological improvement. Owners endanger their product hoping that it will be fortuitously damaged. Product damage provides owners with a good reason to upgrade. Focusing on iPhone as a case study, field data and experiments provide evidence for product endangering, and they support the role of justification in three ways. First, as hypothesized, endangering occurs when the new product offers an improved design but does not offer a significant technological improvement. Second, owners are less likely to endanger a product that is under warranty; therefore, damage to it will not enable upgrading. Third, owners are more likely to endanger their product when their justification concerns are heightened.

Suggested Citation

  • Yaniv Shani & Gil Appel & Shai Danziger & Ron Shachar, 2020. "When and Why Consumers “Accidentally” Endanger Their Products," Management Science, INFORMS, vol. 66(12), pages 5757-5782, December.
    • Handle: RePEc:inm:ormnsc:v:66:y:12:i:2020:p:5757-5782
    DOI: 10.1287/mnsc.2019.3509
    as

    Download full text from publisher

    File URL: https://doi.org/10.1287/mnsc.2019.3509
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mnsc.2019.3509?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. van Damme, E.E.C., 2002. "Economie en psychologie," Other publications TiSEM 788d30f5-ff13-4d83-b5ea-7, Tilburg University, School of Economics and Management.
    2. Yair Orbach & Gila Fruchter, 2014. "Predicting product life cycle patterns," Marketing Letters, Springer, vol. 25(1), pages 37-52, March.
    3. Hsee, Christopher K., 1995. "Elastic Justification: How Tempting but Task-Irrelevant Factors Influence Decisions," Organizational Behavior and Human Decision Processes, Elsevier, vol. 62(3), pages 330-337, June.
    4. Aner Sela & Jonah Berger & Wendy Liu, 2009. "Variety, Vice, and Virtue: How Assortment Size Influences Option Choice," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 35(6), pages 941-951, April.
    5. Meyer, Bruce D, 1995. "Natural and Quasi-experiments in Economics," Journal of Business & Economic Statistics, American Statistical Association, vol. 13(2), pages 151-161, April.
    6. Anat Keinan & Ran Kivetz & Oded Netzer, 2016. "The Functional Alibi," Journal of the Association for Consumer Research, University of Chicago Press, vol. 1(4), pages 479-496.
    7. Ann Kronrod & Shai Danziger, 2013. ""Wii Will Rock You!" The Use and Effect of Figurative Language in Consumer Reviews of Hedonic and Utilitarian Consumption," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 40(4), pages 726-739.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jingyi Lu & Zhengyan Liu & Zhe Fang, 2016. "Hedonic products for you, utilitarian products for me," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 11(4), pages 332-341, July.
    2. repec:cup:judgdm:v:11:y:2016:i:4:p:332-341 is not listed on IDEAS
    3. Villas-Boas, Sofia B, 2020. "Reduced Form Evidence on Belief Updating Under Asymmetric Information," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt08c456vk, Department of Agricultural & Resource Economics, UC Berkeley.
    4. KAMKOUM, Arnaud Cedric, 2023. "The Federal Reserve’s Response to the Global Financial Crisis and its Effects: An Interrupted Time-Series Analysis of the Impact of its Quantitative Easing Programs," Thesis Commons d7pvg, Center for Open Science.
    5. Haoran Zhang & Rongxia Zhang & Guomin Li & Wei Li & Yongrok Choi, 2020. "Has China’s Emission Trading System Achieved the Development of a Low-Carbon Economy in High-Emission Industrial Subsectors?," Sustainability, MDPI, vol. 12(13), pages 1-20, July.
    6. Muñoz-Acevedo, Ángela & Grzybowski, Lukasz, 2023. "Impact of roaming regulation on revenues and prices of mobile operators in the EU," International Journal of Industrial Organization, Elsevier, vol. 89(C).
    7. Sant’Anna, Pedro H.C. & Zhao, Jun, 2020. "Doubly robust difference-in-differences estimators," Journal of Econometrics, Elsevier, vol. 219(1), pages 101-122.
    8. Mateos de Cabo, Ruth & Terjesen, Siri & Escot, Lorenzo & Gimeno, Ricardo, 2019. "Do ‘soft law’ board gender quotas work? Evidence from a natural experiment," European Management Journal, Elsevier, vol. 37(5), pages 611-624.
    9. Irina Heimbach & Oliver Hinz, 2018. "The Impact of Sharing Mechanism Design on Content Sharing in Online Social Networks," Information Systems Research, INFORMS, vol. 29(3), pages 592-611, September.
    10. Weiss, Yoram & Yi, Junjian & Zhang, Junsen, 2013. "Hypergamy, Cross-Boundary Marriages, and Family Behavior," IZA Discussion Papers 7293, Institute of Labor Economics (IZA).
    11. Mark B. Stewart, 2004. "The Impact of the Introduction of the U.K. Minimum Wage on the Employment Probabilities of Low-Wage Workers," Journal of the European Economic Association, MIT Press, vol. 2(1), pages 67-97, March.
    12. Guillermo Cruces & Sebastian Galiani, 2003. "Generalizing the Causal Effect of Fertility on Female Labor Supply," Labor and Demography 0310002, University Library of Munich, Germany.
    13. Christiano Arrigoni Coelho & Bruno Funchal, 2006. "Strategic Default And Personal Credit: The Brazilian Natural Experiment," Anais do XXXIV Encontro Nacional de Economia [Proceedings of the 34th Brazilian Economics Meeting] 97, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    14. Aregawi G Gebremariam & Elisabetta Lodigiani & Giacomo Pasini, 2024. "The Impact of Ethiopian Productive Safety Net Program on Children's Educational Aspirations and Attainments," Journal of African Economies, Centre for the Study of African Economies, vol. 33(3), pages 271-296.
    15. Edmark, Karin, 2007. "Effects of work requirements on welfare migration," Working Paper Series 2007:29, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    16. Panarello, Demetrio, 2021. "Economic insecurity, conservatism, and the crisis of environmentalism: 30 years of evidence," Socio-Economic Planning Sciences, Elsevier, vol. 73(C).
    17. Berger, Allen N. & Kick, Thomas & Schaeck, Klaus, 2014. "Executive board composition and bank risk taking," Journal of Corporate Finance, Elsevier, vol. 28(C), pages 48-65.
    18. Shalvi, Shaul & Dana, Jason & Handgraaf, Michel J.J. & De Dreu, Carsten K.W., 2011. "Justified ethicality: Observing desired counterfactuals modifies ethical perceptions and behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 115(2), pages 181-190, July.
    19. Marco Cavallaro & Benedetto Lepori, 2021. "Institutional barriers to participation in EU framework programs: contrasting the Swiss and UK cases," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(2), pages 1311-1328, February.
    20. Bhargave, Rajesh & Chakravarti, Amitav & Guha, Abhijit, 2015. "Two-stage decisions increase preference for hedonic options," LSE Research Online Documents on Economics 64119, London School of Economics and Political Science, LSE Library.
    21. repec:zbw:bofrdp:2016_011 is not listed on IDEAS
    22. Manuel Gómez-Zaldívar, 2014. "Has the National Agreement for the Modernization of Basic Education contributed to improving levels of basic education and reducing disparities between the states?," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 51(1), pages 85-107, May.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:66:y:12:i:2020:p:5757-5782. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.