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Marketing Letters

, Volume 6, Issue 2, pp 91–100 | Cite as

Work versus windfall: An exploration of saving on subsequent purchase

  • Sharon K. Hodge
  • Charlotte H. Mason
Article

Abstract

Previous research has examined the effects of discounts and promotions on the future performance of a brand or store. However, no attempts have been made to explore how a consumer psychologically accounts for the way a savings is obtained or how that accounting process affects subsequent purchase decisions. This research employs an experimental approach to test the hypothesis that buyers will spend more (save less) of a savings that they obtain from a windfall gain than an equivalent amount obtained from a worked-for savings. Results are generally supportive of the hypothesis, revealing that consumers do treat savings differently depending on how they are obtained. This finding appears to hold over a wide range of saving magnitudes.

Key words

Saving subsequent purchases mental accounting buying behavior 

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Copyright information

© Kluwer Academic Publishers 1995

Authors and Affiliations

  • Sharon K. Hodge
    • 1
  • Charlotte H. Mason
    • 1
  1. 1.Kenan-Flagler Business SchoolUniversity of North CarolinaChapel Hill

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