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The duality of decisions and the case for impulsiveness metrics

  • Original Empirical Research
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Abstract

Customer metrics help firms manage their performance and predict financial outcomes. While many firms focus on customer satisfaction metrics for this purpose, dual-process theories in psychology and neuroscience show that customer decisions are based on two processes. This suggests that metrics which measure the impulsiveness of purchase decisions might effectively complement customer satisfaction metrics. In a series of experiments we demonstrate that satisfaction and impulsiveness metrics make distinct but strong predictions of consumer choices. Satisfaction and impulsiveness influence choice in different ways. While impulsiveness relates to choice directly, the satisfaction-choice path is mediated by loyalty intention. Moreover this relationship is moderated by product involvement such that impulsiveness metrics provide a better prediction for low-involvement than for high-involvement situations. Finally, a field study of 750 customers of 101 firms demonstrates these relationships at a firm level, indicating that satisfaction and impulsiveness metrics have equally strong but distinct relationships with shareholder value. Therefore firms may be able to benefit from complementing customer satisfaction metrics with customer impulsiveness metrics.

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Notes

  1. A potential threat to the validity of this model is a customer’s ability to accurately recall the impulsiveness with which they made their purchase decision. To test this we compared the results for those who recalled a purchase made less than a month previously with those who recalled a purchase made a month or more previously. The results were unchanged by this duration, indicating that recall did not impact these results.

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Author information

Authors and Affiliations

  1. Department of Marketing at the Robert H. Smith School of Business, University of Maryland, 3330J Van Munching Hall, College Park, MD, 20742, USA

    Zachary G. Arens

  2. Department of Marketing at the Robert H. Smith School of Business, University of Maryland, 3451 Van Munching Hall, College Park, MD, 20742, USA

    Roland T. Rust

Authors
  1. Zachary G. Arens
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  2. Roland T. Rust
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Corresponding author

Correspondence to Roland T. Rust.

Additional information

This research was sponsored by grants from the Marketing Science Institute (MSI) and the Robert H. Smith School of Business.

Appendices

Appendix A

Example advertising manipulation in experiment 1

Appendix B

Scale items

Impulsiveness Scale (Jones et al. 2003 ; Rook and Fisher 1995 )

I made this choice spontaneously.

“Just do it” describes the way I made this choice.

I chose without thinking.

“I saw it, I chose it” describes how I made the decision.

I made the choice on the spur-of-the-moment.

I carefully planned my decision. (reverse coded)

I was a bit reckless in my choice.

“Choose now, think about it later” describes how I made the choice.

I made the choice according to how I felt at the moment.

(1=Strongly disagree to 7=Strongly agree)

Customer Satisfaction Scale (Oliver and Swan 1989 )

How do you feel about your experiences with Woodbury:

  • (1=Displeased to 7=Pleased)

  • (1=Disgusted to 7=Contented)

  • (1=Very dissatisfied to 7=Very satisfied)

  • (1=Did a poor job to 7=Did a good job)

  • (1=Unhappy with to 7=Happy with)

Loyalty Intent Scale (Zeithaml et al. 1996 )

How likely are you to say positive things about Woodbury to other people?

How likely are you to encourage your friends and relatives to listen to Woodbury?

How likely are you to listen to Woodbury over the next few months?

  • (1=Not at all likely to 7=Extremely likely)

You will recommend Woodbury to someone who seeks your advice.

You will consider listening to Woodbury as your first choice.

  • (1=Strongly agree to 7=Strongly disagree)

Appendix C

Sampled firms

Advance Auto Parts

Aetna

AFLAC

Allstate

Amazon.com

Amerco (U-Haul)

American International Group

Ameriprise Financial

Apple

AT&T

Bed Bath & Beyond

BIDZ.com

Big Lots

Blue Nile

Buffalo Wild Wings

Build-A-Bear Workshop

Burger King

Cabela's

Capella Education

Caribou Coffee Company

Charles Schwab

Cheesecake Factory

Chipotle Mexican Grill

Cinemark

Citi Trends

Coach

Columbia Sportswear

Costco

Crocs

CVS Caremark

Dell

Diamond Foods

Dick's Sporting Goods

Domino's Pizza

DSW Shoe Warehouse

Ediets.com

FedEx

GameStop

Gander Mountain

Genworth Financial

Golfsmith

Guess?

Hertz

Home Depot

J. Crew

J. C. Penney

Jamba Juice

Jo-Ann Stores

Jones Soda

Kohl's

Kroger

Leap Wireless (Cricket)

Lowe's

Macy's

McCormick & Schmick’s

McDonald's

Metlife

Morton’s Restaurant

Netflix

New York & Company

Nike

Nordstrom

optionsXpress

Pacific Sunwear

PetMed Express

Polo Ralph Lauren

Principal Financial Group

Progressive

Prudential

Regal Entertainment

Rent-A-Center

Ross

Ruth's Chris Steak House

Safeway

Sally Beauty Supply

Sears

Shutterfly

Sprint Nextel

T. Rowe Price

Target

TD AMERITRADE

Tempur-Pedic

Texas Roadhouse

TJX (T.J. Maxx & Marshalls)

Travelers

True Religion Apparel

U.S. Auto Parts

Ulta Salon Cosmetics & Fragrance

Under Armour

United Airlines

United Parcel Service (UPS)

United States Cellular

Unitedhealth Group

US Airways

Virgin Media

Vonage

Wal-Mart

Walgreen

Weight Watchers

Whole Foods Market

Zumiez

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Arens, Z.G., Rust, R.T. The duality of decisions and the case for impulsiveness metrics. J. of the Acad. Mark. Sci. 40, 468–479 (2012). https://doi.org/10.1007/s11747-011-0256-3

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