IDEAS home Printed from https://ideas.repec.org/a/oup/jconrs/v33y2006i3p413-419.html
   My bibliography  Save this article

The Moderating Effect of Relationship Norm Salience on Consumers' Loss Aversion

Author

Listed:
  • Pankaj Aggarwal
  • Meng Zhang

Abstract

People are said to be loss averse when their pain of losing something exceeds their joy of gaining it. This research proposes and tests a new moderator of loss aversion: the type of relationship norms salient at the time the loss or the gain is experienced. We suggest that mere salience of the norms of a communal relationship (based on concern for the partner) relative to those of an exchange relationship (based on quid pro quo) leads to a greater degree of loss aversion. A typical endowment effect study supports our overall thesis and shows that differences across relationship norms are stronger in selling prices (willingness to accept) than in buying prices (willingness to pay). (c) 2006 by JOURNAL OF CONSUMER RESEARCH, Inc..

Suggested Citation

  • Pankaj Aggarwal & Meng Zhang, 2006. "The Moderating Effect of Relationship Norm Salience on Consumers' Loss Aversion," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 33(3), pages 413-419, October.
    • Handle: RePEc:oup:jconrs:v:33:y:2006:i:3:p:413-419
    DOI: 10.1086/508524
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1086/508524
    File Function: link to full text
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1086/508524?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lauren Skinner Beitelspacher & Thomas L. Baker & Adam Rapp & Dhruv Grewal, 2018. "Understanding the long-term implications of retailer returns in business-to-business relationships," Journal of the Academy of Marketing Science, Springer, vol. 46(2), pages 252-272, March.
    2. von Walter, Benjamin & Wentzel, Daniel & Raff, Stefan, 2023. "Should service firms introduce algorithmic advice to their existing customers? The moderating effect of service relationships," Journal of Retailing, Elsevier, vol. 99(2), pages 280-296.
    3. Marshall, Roger & Huan, Tzung-Cheng (T.C.) & Xu, Yingzi & Nam, Inwoo, 2011. "Extending prospect theory cross-culturally by examining switching behavior in consumer and business-to-business contexts," Journal of Business Research, Elsevier, vol. 64(8), pages 871-878, August.
    4. Hsin-Hsien Liu & Jung-Hua Chang, 2017. "Relationship type, perceived trust, and ambiguity aversion," Marketing Letters, Springer, vol. 28(2), pages 255-266, June.
    5. Bolton, Lisa E. & Mattila, Anna S., 2015. "How Does Corporate Social Responsibility Affect Consumer Response to Service Failure in Buyer–Seller Relationships?," Journal of Retailing, Elsevier, vol. 91(1), pages 140-153.
    6. Han Jiang & Albert A. Cannella & Jie Jiao, 2018. "Does Desperation Breed Deceiver? A Behavioral Model of New Venture Opportunism," Entrepreneurship Theory and Practice, , vol. 42(5), pages 769-796, September.
    7. Shiyong Zheng & Jiarong Cui & Chaojing Sun & Jiaying Li & Biqing Li & Weili Guan, 2022. "The Effects of the Type of Information Played in Environmentally Themed Short Videos on Social Media on People’s Willingness to Protect the Environment," IJERPH, MDPI, vol. 19(15), pages 1-18, August.
    8. Park, Sehoon & Kim, Chaeyeong & Park, Jane, 2023. "How power distance belief, self-construal, and relationship norms impact conspicuous consumption," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    9. Durante, Kristina M. & Griskevicius, Vladas & Ulu, Sevincgul (Sev), 2020. "The effect of fertility on loss aversion," Journal of Business Research, Elsevier, vol. 120(C), pages 599-607.
    10. Janina Garbas & Sebastian Schubach & Martin Mende & Maura L. Scott & Jan H. Schumann, 2023. "You want to sell this to me twice!? How perceptions of betrayal may undermine internal product upgrades," Journal of the Academy of Marketing Science, Springer, vol. 51(2), pages 286-309, March.
    11. Kwon, Kyoung-Nan & Lee, Jinkook, 2009. "The effects of reference point, knowledge, and risk propensity on the evaluation of financial products," Journal of Business Research, Elsevier, vol. 62(7), pages 719-725, July.
    12. Paulssen, Marcel & Leischnig, Alexander & Ivens, Björn S. & Birk, Mattias M., 2016. "Relational norms in customer–company relationships: Net and configurational effects," Journal of Business Research, Elsevier, vol. 69(12), pages 5866-5874.

    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:oup:jconrs:v:33:y:2006:i:3:p:413-419. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: the person in charge (email available below). General contact details of provider: https://academic.oup.com/jcr .

    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.