Ronit Montal, The Hebrew University of Jerusalem
Choice-process induced negative affect and extended warranty purchase
Many consumers purchase extended warranty plans despite rarely activating them. We propose a novel driver of warranty plan purchase, namely, the negative affect consumers may experience during product choice. We suggest that when consumers experience high (vs. low) choice-induced negative affect, they wish to avoid repeating the choice experience, and thus, purchase a warranty plan that eliminates future product choice for the plan’s duration. In Study 1, consumers recalled a real purchase of a durable product, reported on their choice experience, and indicated whether they had purchased a warranty plan. Choice-induced negative affect was positively associated with the desire to avoid future product choice, which, in turn, was positively associated with warranty plan purchase. In Study 2 decision makers chose a Tablet in an incentive compatible setting. The choice context was manipulated to produce high or low levels of choice-induced negative affect. When the choice context induced more negative affect, participants reported a greater desire to avoid repeating the choice experience, and were more likely to purchase an extended warranty plan. Moreover, this path was stronger among maximizers who seek to choose the best option, and therefore often experience more negative affect during choice, than among satisficers. Managerial implications are discussed.conscious, and the other has to do with robust individual differences in what we call non-conscious prioritization speed (NPS).