Regret and performance uncertainty in consumer repeat choice

The role of regret on consumer choices has been well recognized in risky purchasing contents. Rather than outcome comparison, regret should also be contingent on the extent of consumer expectation uncertainty on performance. To explore this issue, the paper first draws some propositions based on a Bayesian updating model assuming consumer expectation as a kind of distribution. By two experiments, we show that consumers change their choice intention for alternatives with different performance uncertainty even though zero disconfirmation and no regret are experienced. Consumer experience and risk attitude moderate the change pattern.     

顾客遗憾作用下的重购决策模型

顾客遗憾来源于消费者对不同企业产品或不同购买方案可感知价值的横向对比,遗憾感受程度受到交易情景因素如消费者决策现状、购买行为结果的可逆性以及对已购买产品的满意度的调节,同时会反过来影响顾客满意,最终影响顾客以后的购买行为。因此,它与顾客满意一起构成了影响消费者重购倾向的决定因素,企业在注重顾客保留和培养顾客忠诚时必须将二者同时考虑,做到需求导向和竞争导向的并重。     

Purchase decision regret: Negative consequences of the Steadily Increasing Discount strategy

The Steadily Increasing Discount pricing strategy pits product scarcity against a future discount and forces consumers to make a choice between cost savings and the potential risk of missing the purchase opportunity. Dual non-student samples provide insight into the regret associated with this decision. The first study finds that product scarcity increases both action regret (purchase) and inaction regret (non-purchase) while the level of discount only influences inaction regret. In study two, the individual characteristics of materialism and price consciousness both impact the decision to buy, only materialism influences purchase decision regret. Theoretically, the results reverse the omission bias, demonstrating that regret from inaction is more salient than regret from action in this purchase situation. The studies underscore the high-risk, high-reward nature of multi-period pricing for managers. While firms control product availability and discount levels, they cannot control their customers' personality traits. Therefore, they should make every effort to understand their customers before embarking on such a strategy.     

Adding Regret to Fear Appeals: When the Going Gets Difficult,Regret Gets Action

In accord with Protection Motivation Theory, this article finds fear appeals ineffective at motivating health protection behaviors perceived to be difficult; when task difficulty is high, there is a decrease in perceptions of self‐efficacy and a reduction in health protection behaviors. This research examines a novel way to motivate health protection when task difficulty is salient by adding regret to fear appeals. The inclusion of regret, an emotion that motivates corrective behavioral change, bolsters self‐efficacy and enhances health protection intentions. In fact, even when task difficulty is made salient, self‐efficacy and behavioral intentions remain strong in the fear plus regret condition. Thus, in contrast to straight fear appeals, adding regret to fear appeals results in a reversal effect enhancing self‐efficacy and behavioral intentions when task difficulty is made salient. This research highlights the independence of task difficulty, self‐efficacy, and the role of regret in motivating difficult health protection behaviors.     

A model of buyer regret: Selected prepurchase and postpurchase antecedents with consequences for the brand and the channel

This research examines how two prepurchase stages of the buyer decision process–information search and alternative evaluation–and two postpurchase stages–evaluation of product and service attributes–influence buyer regret. The study extends prior consequences of regret to include purchase intentions toward both brand and the channel. Tested in a field sample of luxury automobile purchasers, results show that higher information search and alternative evaluation lead to more buyer regret; lower evaluations of service (but not product) attributes lead to more regret; and regret's consequences include reduced intentions to repurchase either the brand or from the dealership. Buyers who switch brands experience more regret than buyers who did not switch brands.     

A Self-regulating Information Acquisition Algorithm for Preventing Choice Regret in Multi-perspective Decision Making

In a world filled with an increasing number of choices people must carefully select the information they acquire in order to make sound decisions that they will not regret in the future. This ranges from everyday life decisions to those made by experts in the business world. The authors introduce a novel information acquisition algorithm based on the value that information has when preventing a decision maker from regretting his or her current decision. The main features of the model include the capacity to account for different risk attitudes of the decision maker as well as his or her forward-looking behavior, the ability to assess choice objects (projects or products) defined by multiple characteristics and a self-regulation mechanism for the information acquisition process, even in the absence of information acquisition costs. The main properties of the algorithm are examined numerically.     

A decision support model for buying battery electric vehicles considering consumer learning and psychological behavior

Developments in battery electric vehicles (BEVs) have received more and more attentions in the last decades due to alleviating carbon emissions and energy crisis. Consequently, how to rank alternative BEVs to assist consumers make better purchasing decisions is a worthy research study. However, there are still some defects in the existing studies for ranking of BEVs: 1) the evaluation index system of BEVs is not comprehensive; 2) the determination of criteria weights cannot be well applied to the actual purchase scenarios; and 3) the psychological behavior of consumers is ignored. To address those shortcomings, this paper proposes a decision support model to assist with consumers to buy BEVs. First, a systematic evaluation criteria system of BEVs including quantitative and qualitative indicators from parameter configurations and online reviews is constructed. Then, a weight algorithm considering consumer learning is proposed to determine the criteria weights. Furthermore, a decision support process considering consumers' regret avoidance behavior is proposed. Finally, an actual BEV purchase case is given to illustrate the practicability of the decision support model. This can be seen in case studies the proposed support model can be well applied to consumers with different regret avoidance behaviours.     

Regret and Satisfaction as Determinants of Lapsed Donor Recommencement Decisions

Although a large amount of research has been undertaken into donor acquisition, relationship development, and the reasons why certain donors terminate their support for fundraising charities, few studies have examined the factors that encourage lapsed donors to resume giving to the organizations they have deserted. This empirical investigation sought to contribute to contemporary knowledge concerning this important matter via a survey of 310 lapsed donors (some of whom had resumed giving) to a hospice charity in the south east of England. The variables hypothesized to influence donor revival decisions comprised a person's satisfaction with the charity's work, past communications received from the organization, communications associated with the charity's revival efforts, the individual's donation history and reason for initial lapse, and the ex‐donor's degree of involvement with charity giving. A person's feelings of regret were posited to represent a critical mediating variable between several of the abovementioned factors and a lapsed donor's decision to resume or not to resume giving. The results suggest that regret did indeed play a major role in lapsed donors' revival processes and that an individual's satisfaction with the quality of a charity's communications requesting the recommencement of the individual's support was a crucial determinant of restart decisions.     

Consequences of consumer regret with online shopping

Negative online reviews can significantly hurt future sales. After impulsive decisions, consumers may feel regret and write negative online reviews. Two studies are conducted to understand the origin and consequences of negative reviews according to the review content and the responsibility for the mistake in the decision. The first study analyses the influence on the review creation of regret with the process and the outcome through structural equation modelling. For the second study, a 2 × 2 experimental design was conducted. This study analyses how different content in the review (regret with the process vs. regret with the outcome) and guilt of the error (the consumer vs. the seller) affects the perceived persuasiveness, usefulness and credibility of the information, and the intention to follow the advice. The results show that for generating negative reviews, it is the regret with the process coupled with the presence of regret with the outcome which ultimately leads to the intention to write negative reviews. However, the results of the second study show that reviews that criticize the outcome are more damaging than those that criticize the process. Furthermore, reviews that show regret in which the buyer is responsible affect readers more through the greater persuasion they generate.     

To Justify or Not to Justify: The Role of Anticipated Regret on Consumers’ Decisions to Upgrade Technological Innovations

Prior research suggests that adoption decisions are primarily based on product features and experiential opportunities, like trial and observation. Our research follows inquiries that identify anticipated regret (AR) as an emotion integral to consumer decision making. Prior research and current retailing practice assume that AR can be alleviated by compelling product attribute-based rationales for immediate purchase. These rationales often take the form of direct attribute comparisons between the current best and the future technologies. Counter-intuitively, we find that giving consumers attribute-based justifications for immediate purchase produces a uniform level of AR and purchase delay regardless of the perceived rate of innovation (PRI). However, under conditions of low PRI and no justification, AR decreases significantly. A clear implication of our findings is that firms marketing current technology should not rush to provide consumers with justifications for immediate upgrade since such communications will remind consumers of what they might miss if they adopt now, resulting in increased AR and purchase delays. Instead, we suggest that retailers focus promotional efforts on highlighting the hedonic benefits consumers experience by adopting today.     

Reference prices and consumers' feeling of regret: an investigation of consumers' use of an online price‐bidding method

The purpose of the research was to provide a better understanding of the impacts of relevant information on consumers' emotions when bidding their prices through an online Name‐Your‐Own‐Price method. Specifically, based on the tenets of the Decision Justification Theory, the study examined whether participants felt more regret about a negative outcome when reference prices were available. The research hypotheses were tested in two experiments. The results indicated that the availability of reference prices significantly affected participants' feelings of regret about a negative outcome.     

满意情景下的消费者后悔对口传的影响研究

后悔是消费者在消费体验之后将购买品牌同放弃的品牌进行比较所得到的负面情感反应,它对于消费者的再购意愿有着重要的影响。本文在验证了消费者可以同时体验满意和后悔这一结论的基础上,进一步研究并证实了后悔不仅会增加对购买品牌的负面口传,而且会增加对放弃品牌的正面口传。在此过程中,消费者同购买品牌的关系质量起到了显著的调节作用。     

Just moseying around and happening upon it versus a master plan: Minimizing regret in impulse versus planned sales promotion purchases

This article proposes and tests a model of regret minimization in the consumer decision‐making context of sales promotions. The work examines how regret is minimized in a risk‐avoiding planned purchase by conducting information search and primarily rejoicing afterwards. For risk‐seeking impulse purchases, the model proposes a one‐or two‐pronged strategy for minimizing the regret over lost opportunities to experience immediate pleasures of an impulse purchase. The one‐pronged strategy is characterized by a rapid impulse purchase without prior intent, and the two‐pronged strategy involves moseying around and deliberate placement in harm's way of an impulse purchase followed by the rapid conclusion of the impulsepurchase transaction. Results from three studies indicate that regret is minimized before and after planned and impulsive purchases in different ways. The results also indicate that, consistent with the idea of defending self‐image by emulating a master plan where there was none, consumers will confess to moseying around and deliberate placement in the presence of a potential impulse purchase more readily when they actually conclude the purchase as opposed to walk away from the impulsive purchase. © 2006 Wiley Periodicals, Inc.     

“顾客满意—顾客遗憾”矩阵与“顾客重购倾向”管理

影响“顾客重购倾向”的两种基本因素是顾客满意和顾客遗憾,二者对“顾客重购倾向”的作用机理是完全不同的。可用顾客满意和顾客遗憾这两个顾客心理变量构建一个影响“顾客重购倾向”的“顾客满意———顾客遗憾”矩阵,通过该矩阵企业可以把自己的产品在其中进行对号入座,以便发现企业产品存在的问题,并采取针对性的营销策略来有效控制和影响“顾客重购倾向”。     

Effects of Experience-based Work Patterns in a GSS Environment

Existing group support system (GSS) research has focused on the impacts of GSSs on conventional group-work patterns. Few studies have examined the effects of different group-work patterns in a GSS environment. Specifically, we are interested in group-work patterns that vary in terms of group members' experience or ability levels. In this paper, we report on an exploratory experiment designed to compare the effects of three distinct experience-based work patterns on group decision quality, efficiency, and participant satisfaction in the case of GSS usage. There is the conventional work pattern in which persons of differing experience levels work simultaneously in a meeting. An alternative pattern consists of experienced participants working on a problem first and then passing their results on to less experienced participants. Yet another pattern reverses this sequence. Our results show that while groups in the conventional work pattern are more efficient in considering alternative solutions, groups organized in the other two experience-based work patterns can produce higher quality solutions. We observed no significant differences in participant satisfaction among the three group-work patterns. These findings suggest that a GSS can be as effective (or even more effective) with alternative group-work patterns as it is with the conventional pattern.     

Having your cake and eating it too? A two-stage model of the impact of employment and parallel job search on hybrid nascent entrepreneurship

Hybrid entrepreneurship, simultaneous employment and entrepreneurship, is increasingly prevalent. We theorize entrepreneurial entry as one possible outcome of a two-stage new employment search process 1) decision to search for a job, attempt a start-up, or both and 2) outcome of start-up attempts. Stage 2 is critically different for hybrid (employed) nascent entrepreneurs who have greater access to resources and experience lower risk but also more salient alternative employment options. Using a novel longitudinal panel of new employment opportunity seekers, we find that employment status matters and that “parallel search” for a new job is detrimental to successful entrepreneurial entry.     

The Interplay of Communication and Decisions in Electronic Negotiations: Communicative Decisions or Decisive Communication?

Whilst much research has been conducted on decision support for electronic negotiations and some research has been done on communication support in this area, there is a lack of research on the interplay between these two elements of negotiations. The questions whether both are equally important, whether one effects the other, or whether they show counter-effects are important both for negotiation training (i.e. what should be the focus for becoming a good negotiator) and for system research (i.e. which system support elements need to be developed). The current paper presents results of a controlled laboratory experiment with negotiators that were provided with decision support and communication support and negotiators that had only communication support available. The impact of decision support on the communication process and on outcome dimensions as well as the impact of communication behaviour on the negotiation process and the qualitative dimensions of the outcome will be discussed.     

Perception value of product-service systems: Neural effects of service experience and customer knowledge

Digital trends in product-service system (PSS) development focus on developing win-win solutions for both companies and customers, particularly when considering human behavior issues. It is useful for the PSS provider to know the PSS value creation mechanism when customers are buying and utilizing a PSS, particularly in the service-dominant logic (SDL) and cognitive neuroscience perspective. This study solved the PSS implementation that satisfied the demands of both customers and manufacturers and the value cocreation mechanism during product and service configuration with the impacts of consumer learning and the service experience. The proposed neuroscience methodology is based on an ERP (event-related potential) experiment using PSS stimuli, representing the perception value creation process during customer decision making and the PSS configuration process. The effectiveness of the service experience is more important than customer knowledge during PSS value perception due to positive emotions with pleasant memories for the service experience and the conflicting cognition process of customer learning. The combination of service science and neurology may measure and observe human behavior and psychology through the brain science method and effectively solve the human factors in service science. The findings suggest a more objective and personalized understanding of PSS value perception, particularly the practical requirements of a resulted-oriented PSS and an application-oriented PSS.     

“Regretting your brand-self?” The moderating role of consumer-brand identification on consumer responses to purchase regret

Extending the study of consumer-brand relationships in the post-purchase stages of consumer decision making and in situations involving unfavorable comparisons with foregone brands, this research investigates the role of consumer-brand identification on consumer responses to purchase regret. Drawing on regret theory and consumer-brand relationship literature, the authors argue that consumer-brand identification immunizes the brand from the negative consequences of purchase regret through the amplification of consumers' cognitive regret regulation and the attenuation of consumers' behavioral regret coping. An empirical study using scenario manipulation of regret for participants' favorite brands provides support to the protective role of consumer-brand identification. The results indicate that consumer-brand identification attenuates the negative effects of regret on satisfaction and behavioral intentions and strengthens the positive impact of satisfaction on brand repurchase/recommendation intent. The findings enrich regret and consumer-brand relationship theories and provide managerial insights for effective branding strategy development under conditions of intense competitive pressure.     

Ethical standards,attitudes toward risk,and intentional noncompliance: An experimental investigation

Prior research has investigated the influence of decision maker characteristics on decision choice. This research examines the effect two personality traits of taxpayers, attitude towards risk and ethical standards, on intentional noncompliance. A taxpayer who is more (less) ethical will have lower (greater) intentional noncompliance, while a taxpayer who is more (less) risk averse will have lower (greater) intentional noncompliance. However, this study also found significant correlation between risk attitudes and ethical standards. This is because tax evasion is not just a gamble which can be explained by merely considering the risk variable. To understand tax evasive behavior better requires incorporation of noneconomic factors in the analysis, such as ethical standards, although risk attitudes may be an important explanatory factor. The current research suggests that individuals with lower ethical standards will have more intentional noncompliance. However, since ethical standards are correlated with attitude toward risk, the Internal Revenue Service (IRS) can partially overcome the influence of ethics by making the tax audit environment more uncertain. Thus, the research results justify the decision of the IRS not to release all its audit parameters because it makes the audit environment less uncertain.Dipankar Ghosh's research interests are in judgment and decision making, transfer pricing, and negotiation. He has published inDecision Science, Journal of Conflict Management, International Journal of Accounting, andJournal of Management Accounting Research.Terry L. Crain's research interests are in tax policy, tax equity, and the effects of taxation on taxpayer decision. He has published inDecision Science, International Journal of Accounting, andJournal of the American Taxation Association.