Inaction inertia in online shopping: impact of promotional formats and sequence

Inaction inertia in online shopping: impact of promotional formats and sequence
Ying-Feng Kuo, Hsin-Hsien Liu, Tso-Hao Shen
Journal of Consumer Marketing, Vol. 41, No. 4, pp.439-458

Inaction inertia occurs when people are less likely to act on a similar but inferior option after missing a superior opportunity, compared to if they had not missed out. This study aims to explore how promotional formats and their sequence affect the inaction inertia effect in online shopping, under the assumption of economic equivalence.

The authors performed two online experiments and analyzed the data by analysis of variance.

The findings indicate that, under the premise of economic equivalence: Monetary promotions exhibit a higher inaction inertia effect on consumers than nonmonetary promotions. When consumers miss a more favorable promotion and subsequently encounter a relatively less attractive one presented in a different promotional format, the inaction inertia effect is lower than when reencountering the same promotion format. When consumers miss a better monetary promotion and presently encounter a relatively less attractive nonmonetary promotion, the inaction inertia effect is lower than when they miss a superior nonmonetary promotion and currently encounter a relatively less attractive monetary promotion.

This study reveals the sequence effects of promotional formats, indicating that nonmonetary promotions following monetary ones effectively reduce inaction inertia. A strategically sequenced set of formats enhances consumer recommendations, mitigating inaction inertia. These findings open new research paths, providing insights into the impact of promotional format sequences on the inaction inertia effect. Consequently, this knowledge helps e-retailers in implementing effective promotional strategies and driving online purchases.

​Inaction inertia occurs when people are less likely to act on a similar but inferior option after missing a superior opportunity, compared to if they had not missed out. This study aims to explore how promotional formats and their sequence affect the inaction inertia effect in online shopping, under the assumption of economic equivalence. The authors performed two online experiments and analyzed the data by analysis of variance. The findings indicate that, under the premise of economic equivalence: Monetary promotions exhibit a higher inaction inertia effect on consumers than nonmonetary promotions. When consumers miss a more favorable promotion and subsequently encounter a relatively less attractive one presented in a different promotional format, the inaction inertia effect is lower than when reencountering the same promotion format. When consumers miss a better monetary promotion and presently encounter a relatively less attractive nonmonetary promotion, the inaction inertia effect is lower than when they miss a superior nonmonetary promotion and currently encounter a relatively less attractive monetary promotion. This study reveals the sequence effects of promotional formats, indicating that nonmonetary promotions following monetary ones effectively reduce inaction inertia. A strategically sequenced set of formats enhances consumer recommendations, mitigating inaction inertia. These findings open new research paths, providing insights into the impact of promotional format sequences on the inaction inertia effect. Consequently, this knowledge helps e-retailers in implementing effective promotional strategies and driving online purchases. Read More