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Object valuation and non-ownership possession: how renting and borrowing impact willingness-to-pay

Author

Listed:
  • Charan K. Bagga

    (University of Calgary)

  • Neil Bendle

    (Western University)

  • June Cotte

    (Western University)

Abstract

Prior research on object valuation ignores the effect of non-ownership physical possession types such as renting and borrowing. Evidence from four experiments demonstrates that the valuation (i.e., willingness-to-pay) for rented objects is greater than the valuation for non-possessed or borrowed objects. Borrowed objects are not valued any differently than non-possessed objects. Psychological ownership mediates the relationship between valuation and non-ownership physical possession. Additionally, psychological ownership varies for different possession types (ownership, renting, and borrowing) as its contributing routes (control, self-investment, and knowledge) operate differently for each possession type. As further evidence of the psychological ownership based theoretical account, the research shows that rented objects are not valued higher than non-possessed objects if the control or self-investment routes of psychological ownership are suppressed. The moderating influence of product hedonism–utilitarianism and consumers’ tightwad–spendthrift tendency on the valuation of rented and borrowed objects is also examined.

Suggested Citation

  • Charan K. Bagga & Neil Bendle & June Cotte, 2019. "Object valuation and non-ownership possession: how renting and borrowing impact willingness-to-pay," Journal of the Academy of Marketing Science, Springer, vol. 47(1), pages 97-117, January.
    • Handle: RePEc:spr:joamsc:v:47:y:2019:i:1:d:10.1007_s11747-018-0596-3
    DOI: 10.1007/s11747-018-0596-3
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    References listed on IDEAS

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    Cited by:

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    2. Fritze, Martin P. & Benkenstein, Martin & Belk, Russell & Peck, Joann & Wirtz, Jochen & Claus, and Bart, 2021. "Commentaries on the Sharing Economy: Advancing New Perspectives," SMR - Journal of Service Management Research, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 5(1), pages 3-19.
    3. Dugstad, Anders & Brouwer, Roy & Grimsrud, Kristine & Kipperberg, Gorm & Lindhjem, Henrik & Navrud, Ståle, 2024. "Nature is ours! – Psychological ownership and preferences for wind energy," Energy Economics, Elsevier, vol. 129(C).
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    5. Kumar, Jitender, 2024. "Psychological mechanisms behind access-based luxury brand consumption: Empirical investigation from the lens of new ownership paradigm," Journal of Business Research, Elsevier, vol. 175(C).
    6. Abhishek Borah & Francesca Bonetti & Angelito Calma & José Martí-Parreño, 2023. "The Journal of the Academy of Marketing Science at 50: A historical analysis," Journal of the Academy of Marketing Science, Springer, vol. 51(1), pages 222-243, January.
    7. Paul Rogers, 2021. "Rented But MINE! Application of Psychological Ownership Theory to Access-Based Consumption and the Circular Economy," Circular Economy and Sustainability, Springer, vol. 1(2), pages 719-744, September.

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