Cancel anytime!: How easy cancellation options enhance purchase intentions for services that require long-term commitments

The authors recognize that an uncertain environment associated with prolonged pandemic conditions have made consumers reluctant to make long-term contractual commitments in various retail contexts. Hypothesizing that retailers might offer cancellation options to motivate consumers to undertake long-...

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Bibliographic Details
Published in:Journal of retailing and consumer services 2023-11, Vol.75, p.103481, Article 103481
Main Authors: Park, Sohyeon, Kim, Kacy, Park, Seolwoo, Choi, Yung Kyun, Yoon, Sukki
Format: Article
Language:English
Subjects:
Cancellation
Commitment
Goal
Promotion
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Summary:The authors recognize that an uncertain environment associated with prolonged pandemic conditions have made consumers reluctant to make long-term contractual commitments in various retail contexts. Hypothesizing that retailers might offer cancellation options to motivate consumers to undertake long-term commitments, the authors conduct two studies in which cancellation messages accompany ads for an online language course and a gym membership. Findings indicate that retailers can alleviate the pressures associated with long-term commitment decisions and can heighten purchase intentions by providing cancel options for consumers who register for services requiring long-term but not short-term commitments. Perceived goal achievability is identified as an underlying mechanism that mediates the effects.
ISSN:0969-6989
1873-1384
DOI:10.1016/j.jretconser.2023.103481