Planned versus unplanned timing changes in payment and product receipt: Implications for sales promotion and services management strategy

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Abstract

Promotional tools and services management strategies are often intertwined with changes in the timing of payments for and receipt of products. A series of studies investigates how the timing of payments and the receipt of products impacts purchase intentions and consumer dollar valuations—e.g., how much extra customers would pay to receive a product more quickly. Using the “time and outcome valuation model” as a theoretical basis, the studies assess the impact of timing changes across four classes of phenomena: delaying the receipt of a good (DR), delaying the payment for a good (DP), advancing the receipt of a good (AR), and advancing the payment for a good (AP). Findings reveal that in unplanned timing changes, the hypothesized sequence for dollar valuations, DR > AP > DP > AR, is supported. However, in the planned timing changes, the sequence for purchase intentions reverses for AR and DR. Additionally, the study resolves the controversy in the literature over the gain/loss nature of the four classes of phenomena. The managerial and theoretical implications of these results are discussed for sales promotion and services management strategies. © 2010 Wiley Periodicals, Inc.

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