From Inaction Inertia to the Postdiscount Effect: How a Lower Price Reduces Subsequent Purchase After It Expires

Inaction inertia occurs when people are less likely to purchase a product after missing an opportunity to buy it at a substantially lower price. This study examines whether missing that prior opportunity is necessary for this effect to occur. Across three studies, a prior extremely (vs. slightly) low price reduced perceived value of consumable goods and increased anticipated regret, which in turn reduced subsequent purchase. This effect occurred regardless of prior purchase history. Furthermore, the negative impact on subsequent purchase was mitigated when the low price was due to a pricing error, as it alleviated the low price's impact on perceived value and anticipated regret, again independent of purchasing history. These findings provide converging evidence that the negative effect of a prior low price on subsequent purchase is driven primarily by the large price difference rather than inaction, and that inaction played a smaller role than previously assumed.