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

Sohyeon Park, Kacy Kim, Seolwoo Park, Yung Kyun Choi and Sukki Yoon

Journal of Retailing and Consumer Services, 2023, vol. 75, issue C

Abstract: 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.

Keywords: Cancellation; Commitment; Goal; Promotion (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:joreco:v:75:y:2023:i:c:s096969892300228x

DOI: 10.1016/j.jretconser.2023.103481

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