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Replacement purchase decisions: on the effects of trade‐ins, hedonic versus utilitarian usage goal, and tightwadism
Author(s) -
Park Sojin,
Mowen John C.
Publication year - 2007
Publication title -
journal of consumer behaviour
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.811
H-Index - 43
eISSN - 1479-1838
pISSN - 1472-0817
DOI - 10.1002/cb.212
Subject(s) - product (mathematics) , promotion (chess) , marketing , economics , microeconomics , business , advertising , geometry , mathematics , politics , political science , law
The paper examines the effects of usage goal (i.e., hedonic versus utilitarian usage), whether the consumer is offered a discount or the ability to trade‐in the old product, and tightwadism on the likelihood of replacing a still‐functioning product. Supporting previous research, the results revealed that the likelihood of replacing a still‐functioning product is higher when a trade‐in is offered. As expected, however, this main effect was moderated by whether the good was purchased for utilitarian rather than hedonic purposes. If the purchase was for hedonic purchases, the likelihood of purchase was significantly lower when the promotion was a sale rather than a trade‐in. However, the promotion type did not influence the purchase if it was for utilitarian purposes. Additionally, when the usage goal was for hedonic purposes, the likelihood of replacement was significantly lower for those high in tightwadism. In contrast, tightwadism did not influence the likelihood of replacement when the usage was for utilitarian purposes. Copyright © 2007 John Wiley & Sons, Ltd.