Opportunity Cost Neglect
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 pu...
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Institutional Knowledge at Singapore Management University
2009
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sg-smu-ink.lkcsb_research-22942018-07-09T07:18:09Z Opportunity Cost Neglect Frederick, Shane Novemsky, Nathan WANG, Jing (Jane) Dhar, Ravi Nowlis, Stephen 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. 2009-12-01T08:00:00Z text application/pdf https://ink.library.smu.edu.sg/lkcsb_research/1295 info:doi/10.1086/599764 https://ink.library.smu.edu.sg/context/lkcsb_research/article/2294/viewcontent/WangJ2009OpportunityCost.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection Lee Kong Chian School Of Business eng Institutional Knowledge at Singapore Management University Marketing Sales and Merchandising |
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Singapore Management University |
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SMU Libraries |
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Asia |
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Singapore Singapore |
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SMU Libraries |
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English |
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Marketing Sales and Merchandising |
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Marketing Sales and Merchandising Frederick, Shane Novemsky, Nathan WANG, Jing (Jane) Dhar, Ravi Nowlis, Stephen Opportunity Cost Neglect |
| description |
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. |
| format |
text |
| author |
Frederick, Shane Novemsky, Nathan WANG, Jing (Jane) Dhar, Ravi Nowlis, Stephen |
| author_facet |
Frederick, Shane Novemsky, Nathan WANG, Jing (Jane) Dhar, Ravi Nowlis, Stephen |
| author_sort |
Frederick, Shane |
| title |
Opportunity Cost Neglect |
| title_short |
Opportunity Cost Neglect |
| title_full |
Opportunity Cost Neglect |
| title_fullStr |
Opportunity Cost Neglect |
| title_full_unstemmed |
Opportunity Cost Neglect |
| title_sort |
opportunity cost neglect |
| publisher |
Institutional Knowledge at Singapore Management University |
| publishDate |
2009 |
| url |
https://ink.library.smu.edu.sg/lkcsb_research/1295 https://ink.library.smu.edu.sg/context/lkcsb_research/article/2294/viewcontent/WangJ2009OpportunityCost.pdf |
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1770569863867138048 |