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Spillover Effects: How Consumers Respond to Unexpected Changes in Price and Quality

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  • Narayan Janakiraman
  • Robert J. Meyer
  • Andrea C. Morales

Abstract

This article examines how unexpected changes in the marketing mix of one product in a retail setting can influence demand for other, unrelated, items. Results from two laboratory studies show that spillover effects can occur in response to both positive and negative changes in either the price or quality of a product, such that positive changes increase total spending on other items and negative changes reduce it. The results also demonstrate that an attributional process underlies these effects, indicating that consumers experience specific affective responses directed at the retailer that lead them either to reward or punish the retailer accordingly. (c) 2006 by JOURNAL OF CONSUMER RESEARCH, Inc..

Suggested Citation

  • Narayan Janakiraman & Robert J. Meyer & Andrea C. Morales, 2006. "Spillover Effects: How Consumers Respond to Unexpected Changes in Price and Quality," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 33(3), pages 361-369, October.
    • Handle: RePEc:oup:jconrs:v:33:y:2006:i:3:p:361-369
    DOI: 10.1086/508440
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    Cited by:

    1. M. Alex Syaekhoni & Ganjar Alfian & Young S. Kwon, 2017. "Customer Purchasing Behavior Analysis as Alternatives for Supporting In-Store Green Marketing Decision-Making," Sustainability, MDPI, vol. 9(11), pages 1-22, November.
    2. Sojin Jung & Daeun Chloe Shin & Hongjoo Woo & Byoungho Ellie Jin, 2024. "The spillover effects of positive and negative corporate social responsibility publicity: How and why the effect is lessened versus amplified," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(3), pages 2086-2097, May.
    3. Teck-Chai Lau & Tat-Huei Cham & David Ching-Yat Ng, 2018. "How Susceptible are Consumers in Impulse Purchasing Ready-to-Drink Products? Evidence from Malaysia," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 8(6), pages 429-444, June.
    4. József Sákovics, 2011. "Reference distorted prices," Quantitative Marketing and Economics (QME), Springer, vol. 9(4), pages 339-363, December.
    5. Fassnacht, Martin & Beatty, Sharon E. & Szajna, Markus, 2019. "Combating the negative effects of showrooming: Successful salesperson tactics for converting showroomers into buyers," Journal of Business Research, Elsevier, vol. 102(C), pages 131-139.
    6. Jun Yao & Harmen Oppewal & Di Wang, 2020. "Cheaper and smaller or more expensive and larger: how consumers respond to unit price increase tactics that simultaneously change product price and package size," Journal of the Academy of Marketing Science, Springer, vol. 48(6), pages 1075-1094, November.
    7. Netemeyer, Richard G. & Heilman, Carrie M. & Maxham, James G., 2012. "The Impact of a New Retail Brand In-Store Boutique and its Perceived Fit with the Parent Retail Brand on Store Performance and Customer Spending," Journal of Retailing, Elsevier, vol. 88(4), pages 462-475.
    8. Xenia Raufeisen & Linda Wulf & Sören Köcher & Ulya Faupel & Hartmut H. Holzmüller, 2019. "Spillover effects in marketing: integrating core research domains," AMS Review, Springer;Academy of Marketing Science, vol. 9(3), pages 249-267, December.
    9. Figini, Paolo & Leoni, Veronica & Vici, Laura, 2024. "And suddenly, the rain! When surprises shape experienced utility," Journal of Economic Behavior & Organization, Elsevier, vol. 224(C), pages 771-784.
    10. Sina Golara & Kevin J. Dooley & Nasim Mousavi, 2021. "Are Dealers Still Relevant? How Dealer Service Quality Impacts Manufacturer Success," Production and Operations Management, Production and Operations Management Society, vol. 30(10), pages 3560-3578, October.
    11. Jozsef Sakovics, 2007. "Reference price distortion," Edinburgh School of Economics Discussion Paper Series 177, Edinburgh School of Economics, University of Edinburgh.
    12. Sheehan, Daniel & Hardesty, David M. & Ziegler, Alexander H. & Chen, Haipeng (Allan), 2019. "Consumer reactions to price discounts across online shopping experiences," Journal of Retailing and Consumer Services, Elsevier, vol. 51(C), pages 129-138.
    13. Hoskins, Jake D., 2020. "The evolving role of hit and niche products in brick-and-mortar retail category assortment planning: A large-scale empirical investigation of U.S. consumer packaged goods," Journal of Retailing and Consumer Services, Elsevier, vol. 57(C).
    14. Verhoef, Peter C. & Lemon, Katherine N. & Parasuraman, A. & Roggeveen, Anne & Tsiros, Michael & Schlesinger, Leonard A., 2009. "Customer Experience Creation: Determinants, Dynamics and Management Strategies," Journal of Retailing, Elsevier, vol. 85(1), pages 31-41.
    15. Campbell, Benjamin L. & Behe, Bridget K. & Khachatryan, Hayk & Hall, Charles R. & Dennis, Jennifer H. & Huddleston, Patricia T. & Fernandez, R. Thomas, 2013. "Incorporating Eye Tracking Technology and Conjoint Analysis to Better Understand the Green Industry Consumer," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150431, Agricultural and Applied Economics Association.
    16. Elizabeth Chinomona, 2019. "Modelling the Drivers of Impulsive Buying Behaviour: A Case of South Africa," Journal of Economics and Behavioral Studies, AMH International, vol. 11(1), pages 27-38.
    17. Sheetal Mittal & Neena Sondhi & Deepak Chawla, 2018. "Process of Impulse Buying: A Qualitative Exploration," Global Business Review, International Management Institute, vol. 19(1), pages 131-146, February.
    18. Nicole Koschate-Fischer & Katharina Wüllner, 2017. "New developments in behavioral pricing research," Journal of Business Economics, Springer, vol. 87(6), pages 809-875, August.
    19. Acquila-Natale, Emiliano & Iglesias-Pradas, Santiago, 2021. "A matter of value? Predicting channel preference and multichannel behaviors in retail," Technological Forecasting and Social Change, Elsevier, vol. 162(C).
    20. Panzone, Luca A. & Lemke, Fred & Petersen, Henry L., 2016. "Biases in consumers' assessment of environmental damage in food chains and how investments in reputation can help," Technological Forecasting and Social Change, Elsevier, vol. 111(C), pages 327-337.
    21. Kavita Sharma & Shivani Garg, 2016. "An Investigation into Consumer Search and Evaluation Behaviour: Effect of Brand Name and Price Perceptions," Vision, , vol. 20(1), pages 24-36, March.
    22. Els Breugelmans & Marleen Hermans & Manfred Krafft & Mirja Kroschke & Felix Lehmkuhle & Murali Mantrala, 2024. "What is happening to my nearby stores? The own- and cross-effect of a radical store transformation on existing customers," Journal of the Academy of Marketing Science, Springer, vol. 52(1), pages 217-238, January.
    23. Joaquin Sanchez & Carmen Abril & Michael Haenlein, 2020. "Competitive spillover elasticities of electronic word of mouth: an application to the soft drink industry," Journal of the Academy of Marketing Science, Springer, vol. 48(2), pages 270-287, March.
    24. Mittal, Sheetal & Chawla, Deepak & Sondhi, Neena, 2016. "Segmentation of impulse buyers in an emerging market – An exploratory study," Journal of Retailing and Consumer Services, Elsevier, vol. 33(C), pages 53-61.

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