Business Management Dynamics

Double Blind Peer Reviewed - Open Access Jounal

Home  |   Contact Us

 

ISSN: 2047-7031

bmd Business and Management Dynamics bmd
ISSN: 2047-7031  
Volume  8   Issue 01  2018  
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Article Abstract
Temporal Non-monetary Accumulation in Sunk Cost Frames
Keywords:  Sunk Costs, Consumer-Brand Relationship, Consumer Choice
Dr. Ross B. Steinman
This research reports the findings from an experiment on the interactive effect of temporal accumulation of non-monetary assets, sunk costs, and violations of the consumer-brand relationship on consumer attitude and choice. Participants were randomly assigned to one of four fictitious scenarios where sunk cost magnitude, consumer-brand relationship violation, and non-monetary rewards redemption alternatives were experimentally manipulated. Consumer choice, consumer loyalty, and broad-based measures of consumer attitudes were utilized as outcome variables. There was evidence that participants in high sunk cost conditions viewed the brand in less favorable terms, but they were less likely to less likely to leave the brand even though their perceptions of the brand might have changed. This research adds to a growing literature on temporal and non-monetary factors influencing consumer decision making in the context of sunk costs. Future directions, as well as strengths and limitations of the research methodology, are discussed.
16-21   |  View PDF