Product Aversion Following a Missed Opportunity: Price Contrast or Avoidance of Anticipated Regret?

Abstract

Abstract Studies have demonstrated that when consumers miss an opportunity to purchase a product for a significantly reduced price, they are less likely to purchase this product later for its regular price or for a less significantly reduced price. Two possible explanations for this inaction-inertia effect were considered: avoidance of regret (reluctance to purchase the product represents an attempt to avoid regret over missing the better price) and price contrast (reluctance to purchase the product results from a simple price comparison process). The results of 3 experiments favored the avoidance-of-regret explanation.