Product Aversion Following a Missed Opportunity: Price Contrast or Avoidance of Anticipated Regret?

Studies have demonstrated that when consumers miss an opportunity to purchase a product for a significantly reduced price, they are less likely to purchase this product later for its regular price or for a less significantly reduced price. Two possible explanations for this inaction-inertia ef-fect were considered: avoidance of regret (reluctance to purchase the product represents an at-tempt to avoid regret over missing the better price) and price contrast (reluctance to purchase the product results from a simple price comparison process). The results of 3 experiments favored the avoidance-of-regret explanation. We can probably safely say that most people do not like to pay more for a product when they recently could have had it for less. This, in part, is why a careful consumer invests time in shopping around, comparing prices, and hunting for special sales and bargains. However, even the most careful consumer is apt to miss out on a “good deal ” occasionally. What happens whenwefindout that thepowerdrillwehavebeencravingwas the “special buy ” of the week—last week? What happens