Object valuation and non-ownership possession: how renting and borrowing impact willingness-to-pay

Charan K. Bagga (), Neil Bendle () and June Cotte ()
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Charan K. Bagga: University of Calgary
Neil Bendle: Western University
June Cotte: Western University

Journal of the Academy of Marketing Science, 2019, vol. 47, issue 1, No 7, 97-117

Abstract: Abstract Prior research on object valuation ignores the effect of non-ownership physical possession types such as renting and borrowing. Evidence from four experiments demonstrates that the valuation (i.e., willingness-to-pay) for rented objects is greater than the valuation for non-possessed or borrowed objects. Borrowed objects are not valued any differently than non-possessed objects. Psychological ownership mediates the relationship between valuation and non-ownership physical possession. Additionally, psychological ownership varies for different possession types (ownership, renting, and borrowing) as its contributing routes (control, self-investment, and knowledge) operate differently for each possession type. As further evidence of the psychological ownership based theoretical account, the research shows that rented objects are not valued higher than non-possessed objects if the control or self-investment routes of psychological ownership are suppressed. The moderating influence of product hedonism–utilitarianism and consumers’ tightwad–spendthrift tendency on the valuation of rented and borrowed objects is also examined.

Keywords: Object valuation; Renting; Borrowing; Psychological ownership; Endowment effect; Willingness-to-pay; Experiments (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (8)

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DOI: 10.1007/s11747-018-0596-3

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