Publication Type
Journal Article
Version
publishedVersion
Publication Date
12-2009
Abstract
To properly consider the opportunity costs of a purchase, consumers must actively generate the alternatives that it would displace. The current research suggests that consumers often fail to do so. Even under conditions promoting cognitive effort, various cues to consider opportunity costs reduce purchase rates and increase the choice share of more affordable options. Sensitivity to such cues varies with chronic dispositional differences in spending attitudes. We discuss the implications of these results for the marketing strategies of economy and premium brands.
Discipline
Marketing | Sales and Merchandising
Research Areas
Marketing
Publication
Journal of Consumer Research
Volume
36
Issue
4
First Page
553
Last Page
561
ISSN
0093-5301
Identifier
10.1086/599764
Publisher
University of Chicago Press
Citation
Frederick, Shane; Novemsky, Nathan; WANG, Jing (Jane); Dhar, Ravi; and Nowlis, Stephen.
Opportunity Cost Neglect. (2009). Journal of Consumer Research. 36, (4), 553-561.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/1295
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1086/599764