Four studies investigate (1) whether a variety-seeking versus inertial environment activates a certain mind-set about risk propensity and (2) whether this mind-set influences preferences for immediate versus delayed promotions. Study 1 demonstrates that a variety-seeking environment activates a risk-taking mind-set, whereas an inertial environment activates a risk-averse mind-set and that such a difference in risk propensity makes a delayed (immediate) promotion relatively more appealing for consumers with a variety-seeking (inertial) tendency. Study 2 reveals that preferences for a brand offering a delayed promotion are stronger when consumers have a variety-seeking tendency and that preferences of consumers low (vs. high) in need for cognitive closure are more influenced by the difference in variety-seeking versus inertial tendency. Study 3 provides further insights by allowing participants to be variety seeking or inertial and by controlling for redemption effort and the hedonic/utilitarian aspects of categories. Finally, Study 4 highlights the impact of variety-seeking versus inertial tendency on real-world choices. The article concludes with a discussion of theoretical and managerial implications.
- Immediate versus delayed promotions
- Risk propensity
- Variety seeking
ASJC Scopus subject areas
- Business and International Management
- Economics and Econometrics