IDEAS home Printed from https://ideas.repec.org/a/spr/joamsc/v49y2021i2d10.1007_s11747-020-00744-0.html
   My bibliography  Save this article

Customer inertia marketing

Author

Listed:
  • Conor M. Henderson

    (Lundquist College of Business, University of Oregon)

  • Lena Steinhoff

    (University of Rostock)

  • Colleen M. Harmeling

    (College of Business, Florida State University)

  • Robert W. Palmatier

    (Foster School of Business, University of Washington)

Abstract

Inertia might secure consumers’ continued patronage, but it also can stunt potential expansion. By examining the psychology underlying inertia, this research informs managers about whether to engage inertial consumers proactively. In the proposed conceptual model, an inertia mindset orients a customer toward status quo consumption. This mindset emerges from dual sources, and each source consists of a behavioral and a psychological component. Specifically, the behavioral consistency of prior consumption activates an inertia mindset by prompting a psychological inclination to minimize thinking; the magnitude of prior consumption leads to inertia by evoking an inclination to minimize regret. Complementary survey and field studies offer support for the proposed model and reveal that a proactive loyalty reward can reinforce inertia based on regret minimization but disrupt inertia based on thinking minimization. Even well-intentioned marketing initiatives thus might be ineffective or detrimental, depending on the source and strength of inertia already present in the customer.

Suggested Citation

  • Conor M. Henderson & Lena Steinhoff & Colleen M. Harmeling & Robert W. Palmatier, 2021. "Customer inertia marketing," Journal of the Academy of Marketing Science, Springer, vol. 49(2), pages 350-373, March.
  • Handle: RePEc:spr:joamsc:v:49:y:2021:i:2:d:10.1007_s11747-020-00744-0
    DOI: 10.1007/s11747-020-00744-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11747-020-00744-0
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s11747-020-00744-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kapil Bawa, 1990. "Modeling Inertia and Variety Seeking Tendencies in Brand Choice Behavior," Marketing Science, INFORMS, vol. 9(3), pages 263-278.
    2. Bolton, R.N. & Lemo, K.N. & Verhoef, P.C., 2002. "The Theoretical Underpinnings of Customer Asset Management," ERIM Report Series Research in Management ERS-2002-80-MKT, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    3. Arkes, Hal R. & Kung, Yi-Han & Hutzel, Laura, 2002. "Regret, Valuation, and Inaction Inertia," Organizational Behavior and Human Decision Processes, Elsevier, vol. 87(2), pages 371-385, March.
    4. Kyle B. Murray & Gerald Hubl, 2007. "Explaining Cognitive Lock-In: The Role of Skill-Based Habits of Use in Consumer Choice," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 34(1), pages 77-88, March.
    5. Pradeep K. Chintagunta, 1998. "Inertia and Variety Seeking in a Model of Brand-Purchase Timing," Marketing Science, INFORMS, vol. 17(3), pages 253-270.
    6. Naomi Mandel & Stephen M. Nowlis, 2008. "The Effect of Making a Prediction about the Outcome of a Consumption Experience on the Enjoyment of That Experience," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 35(1), pages 9-20, February.
    7. Joshua T Beck & Ryan Rahinel & Alexander Bleier & Simona Botti & Darren W Dahl & J Jeffrey Inman, 2020. "Company Worth Keeping: Personal Control and Preferences for Brand Leaders [Measuring Brand Equity across Products and Markets]," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 46(5), pages 871-886.
    8. repec:cup:judgdm:v:11:y:2016:i:3:p:275-286 is not listed on IDEAS
    9. Sunil Gupta & Valarie Zeithaml, 2006. "Customer Metrics and Their Impact on Financial Performance," Marketing Science, INFORMS, vol. 25(6), pages 718-739, 11-12.
    10. Jean‐Pierre Dubé & Günter J. Hitsch & Peter E. Rossi, 2010. "State dependence and alternative explanations for consumer inertia," RAND Journal of Economics, RAND Corporation, vol. 41(3), pages 417-445, September.
    11. John Hulland & Hans Baumgartner & Keith Marion Smith, 2018. "Marketing survey research best practices: evidence and recommendations from a review of JAMS articles," Journal of the Academy of Marketing Science, Springer, vol. 46(1), pages 92-108, January.
    12. Linda L Price & Robin A Coulter & Yuliya Strizhakova & Ainslie E Schultz & Eileen FischerEditor & Sharon ShavittAssociate Editor, 2018. "The Fresh Start Mindset: Transforming Consumers’ Lives," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 45(1), pages 21-48.
    13. Shugan, Steven M, 1980. "The Cost of Thinking," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 7(2), pages 99-111, Se.
    14. Lena Steinhoff & Denni Arli & Scott Weaven & Irina V. Kozlenkova, 2019. "Online relationship marketing," Journal of the Academy of Marketing Science, Springer, vol. 47(3), pages 369-393, May.
    15. Mary Steffel & Elanor F Williams & Vicki MorwitzEditor & Andrea MoralesAssociate Editor, 2018. "Delegating Decisions: Recruiting Others to Make Choices We Might Regret," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 44(5), pages 1015-1032.
    16. Inman, J.J. & Zeelenberg, M., 2002. "Regret in repeat purchase versus switching decisions : The attenuating role of decision justifiability," Other publications TiSEM 44060120-bd30-40e0-a97f-f, Tilburg University, School of Economics and Management.
    17. V. Kumar & Werner Reinartz, 2018. "Customer Relationship Management," Springer Texts in Business and Economics, Springer, edition 3, number 978-3-662-55381-7, June.
    18. Bram Foubert & Els Gijsbrechts, 2016. "Try It, You’ll Like It—Or Will You? The Perils of Early Free-Trial Promotions for High-Tech Service Adoption," Marketing Science, INFORMS, vol. 35(5), pages 810-826, September.
    19. Zauberman, Gal, 2003. "The Intertemporal Dynamics of Consumer Lock-In," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 30(3), pages 405-419, December.
    20. Bibek Banerjee & Subir Bandyopadhyay, 2003. "Advertising Competition Under Consumer Inertia," Marketing Science, INFORMS, vol. 22(1), pages 131-144, January.
    21. Jones, Michael A. & Mothersbaugh, David L. & Beatty, Sharon E., 2002. "Why customers stay: measuring the underlying dimensions of services switching costs and managing their differential strategic outcomes," Journal of Business Research, Elsevier, vol. 55(6), pages 441-450, June.
    22. Inman, J Jeffrey & Zeelenberg, Marcel, 2002. "Regret in Repeat Purchase versus Switching Decisions: The Attenuating Role of Decision Justifiability," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 29(1), pages 116-128, June.
    23. King, Gary & Zeng, Langche, 2001. "Logistic Regression in Rare Events Data," Political Analysis, Cambridge University Press, vol. 9(2), pages 137-163, January.
    24. Jennifer S. Labrecque & Wendy Wood & David T. Neal & Nick Harrington, 2017. "Habit slips: when consumers unintentionally resist new products," Journal of the Academy of Marketing Science, Springer, vol. 45(1), pages 119-133, January.
    25. Kahneman, Daniel & Knetsch, Jack L & Thaler, Richard H, 1990. "Experimental Tests of the Endowment Effect and the Coase Theorem," Journal of Political Economy, University of Chicago Press, vol. 98(6), pages 1325-1348, December.
    26. Alexander Bleier & Maik Eisenbeiss, 2015. "Personalized Online Advertising Effectiveness: The Interplay of What, When, and Where," Marketing Science, INFORMS, vol. 34(5), pages 669-688, September.
    27. Michael Tsiros, 2009. "Releasing the Regret Lock: Consumer Response to New Alternatives after a Sale," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 35(6), pages 1039-1059, April.
    28. Ruth N. Bolton, 1998. "A Dynamic Model of the Duration of the Customer's Relationship with a Continuous Service Provider: The Role of Satisfaction," Marketing Science, INFORMS, vol. 17(1), pages 45-65.
    29. Roland T. Rust & Peter C. Verhoef, 2005. "Optimizing the Marketing Interventions Mix in Intermediate-Term CRM," Marketing Science, INFORMS, vol. 24(3), pages 477-489, December.
    30. Benjamin R. Handel, 2013. "Adverse Selection and Inertia in Health Insurance Markets: When Nudging Hurts," American Economic Review, American Economic Association, vol. 103(7), pages 2643-2682, December.
    31. repec:cup:judgdm:v:7:y:2012:i:6:p:750-760 is not listed on IDEAS
    32. Zeelenberg, M., 1999. "The use of crying over spilled milk : A note on the rationality and functionality of regret," Other publications TiSEM 66ac04be-d1ee-4a0e-9e97-7, Tilburg University, School of Economics and Management.
    33. Jingjing Ma & Neal J. Roese, 2014. "The Maximizing Mind-Set," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 41(1), pages 71-92.
    34. Praveen K. Kopalle & Yacheng Sun & Scott A. Neslin & Baohong Sun & Vanitha Swaminathan, 2012. "The Joint Sales Impact of Frequency Reward and Customer Tier Components of Loyalty Programs," Marketing Science, INFORMS, vol. 31(2), pages 216-235, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cao, Lanlan & Manthiou, Aikaterini & Ayadi, Kafia, 2022. "Extension and customer reaction on sharing economy platforms: The role of customer inertia," Journal of Business Research, Elsevier, vol. 144(C), pages 513-522.
    2. Malodia, Suresh & Kaur, Puneet & Ractham, Peter & Sakashita, Mototaka & Dhir, Amandeep, 2022. "Why do people avoid and postpone the use of voice assistants for transactional purposes? A perspective from decision avoidance theory," Journal of Business Research, Elsevier, vol. 146(C), pages 605-618.
    3. Kamoonpuri, Sana Zehra & Sengar, Anita, 2023. "Hi, May AI help you? An analysis of the barriers impeding the implementation and use of artificial intelligence-enabled virtual assistants in retail," Journal of Retailing and Consumer Services, Elsevier, vol. 72(C).
    4. Asseraf, Yoel & Gnizy, Itzhak, 2022. "Translating strategy into action: The importance of an agile mindset and agile slack in international business," International Business Review, Elsevier, vol. 31(6).
    5. Wang, Qian & Chen, Hang, 2022. "Better or Worse? Effects of online promotion habits on customer value: An empirical study," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).
    6. Steinhoff, Lena & Palmatier, Robert W. & Martin, Kelly D. & Fox, Grace & Henderson, Conor M. & Clair, Julian K. Saint & Yan, Shuai & Lee, Ju-Yeon & Perko, Taylor & Harmeling, Colleen M., 2022. "Commentaries on Relationship Marketing: The Present and Future of Customer Relationships in Services," SMR - Journal of Service Management Research, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 6(1), pages 2-27.
    7. Jeremy S. Wolter & Dora E. Bock & Christopher D. Hopkins & Michael Giebelhausen, 2022. "Not the relationship type? Loyalty propensity as a reason to maintain marketing relationships," Journal of the Academy of Marketing Science, Springer, vol. 50(5), pages 1052-1070, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Davvetas, Vasileios & Diamantopoulos, Adamantios, 2017. "“Regretting your brand-self?” The moderating role of consumer-brand identification on consumer responses to purchase regret," Journal of Business Research, Elsevier, vol. 80(C), pages 218-227.
    2. Wang, Yu-Yin & Wang, Yi-Shun & Lin, Tung-Ching, 2018. "Developing and validating a technology upgrade model," International Journal of Information Management, Elsevier, vol. 38(1), pages 7-26.
    3. Camille Magron & Maxime Merli, 2012. "Stocks repurchase and sophistication of individual investors," Working Papers of LaRGE Research Center 2012-02, Laboratoire de Recherche en Gestion et Economie (LaRGE), Université de Strasbourg.
    4. Diwas KC & Tongil Kim, 2022. "Impact of universal healthcare on patient choice and quality of care," Production and Operations Management, Production and Operations Management Society, vol. 31(5), pages 2167-2184, May.
    5. Christian Homburg & Moritz Tischer, 2023. "Customer journey management capability in business-to-business markets: Its bright and dark sides and overall impact on firm performance," Journal of the Academy of Marketing Science, Springer, vol. 51(5), pages 1046-1074, September.
    6. Patricia H. Born & E. Tice Sirmans, 2019. "Regret in health insurance post‐purchase behavior," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 22(2), pages 207-219, July.
    7. Woong Park & Hyunchul Ahn, 2022. "Not All Churn Customers Are the Same: Investigating the Effect of Customer Churn Heterogeneity on Customer Value in the Financial Sector," Sustainability, MDPI, vol. 14(19), pages 1-22, September.
    8. White, Allyn & Breazeale, Michael & Collier, Joel E., 2012. "The Effects of Perceived Fairness on Customer Responses to Retailer SST Push Policies," Journal of Retailing, Elsevier, vol. 88(2), pages 250-261.
    9. Andrés Musalem & Yogesh V. Joshi, 2009. "—How Much Should You Invest in Each Customer Relationship? A Competitive Strategic Approach," Marketing Science, INFORMS, vol. 28(3), pages 555-565, 05-06.
    10. Murray, Kyle B. & Häubl, Gerald, 2009. "Personalization without Interrogation: Towards more Effective Interactions between Consumers and Feature-Based Recommendation Agents," Journal of Interactive Marketing, Elsevier, vol. 23(2), pages 138-146.
    11. Bas Donkers & Peter Verhoef & Martijn Jong, 2007. "Modeling CLV: A test of competing models in the insurance industry," Quantitative Marketing and Economics (QME), Springer, vol. 5(2), pages 163-190, June.
    12. Haj-Salem, Narjes & Chebat, Jean-Charles, 2014. "The double-edged sword: The positive and negative effects of switching costs on customer exit and revenge," Journal of Business Research, Elsevier, vol. 67(6), pages 1106-1113.
    13. Nicole Koschate-Fischer & Wayne D. Hoyer & Nicola E. Stokburger-Sauer & Jan Engling, 2018. "Do life events always lead to change in purchase? The mediating role of change in consumer innovativeness, the variety seeking tendency, and price consciousness," Journal of the Academy of Marketing Science, Springer, vol. 46(3), pages 516-536, May.
    14. Nagengast, Liane & Evanschitzky, Heiner & Blut, Markus & Rudolph, Thomas, 2014. "New Insights in the Moderating Effect of Switching Costs on the Satisfaction–Repurchase Behavior Link," Journal of Retailing, Elsevier, vol. 90(3), pages 408-427.
    15. Jiwoong Shin & Dan Ariely, 2004. "Keeping Doors Open: The Effect of Unavailability on Incentives to Keep Options Viable," Management Science, INFORMS, vol. 50(5), pages 575-586, May.
    16. Vishal Bindroo & Xin He & Raj Echambadi, 2016. "Satisfaction—Repurchase Intentions Relationship: Exploring the Contingent Roles of Consideration Set Size and Price Consciousness," Customer Needs and Solutions, Springer;Institute for Sustainable Innovation and Growth (iSIG), vol. 3(3), pages 115-125, December.
    17. Lieberman, Alicea & Amir, On & Carmon, Ziv, 2023. "The entrenchment effect: Why people persist with less-preferred behaviors," Organizational Behavior and Human Decision Processes, Elsevier, vol. 178(C).
    18. Philippe Aurier & Victor D. Mejía, 2021. "The differing impacts of brand-line breadth and depth on customers’ repurchasing behavior of frequently purchased packaged goods," Journal of the Academy of Marketing Science, Springer, vol. 49(6), pages 1244-1266, November.
    19. Shani, Yaniv & Danziger, Shai & Zeelenberg, Marcel, 2015. "Choosing between options associated with past and future regret," Organizational Behavior and Human Decision Processes, Elsevier, vol. 126(C), pages 107-114.
    20. K. Sudhir & Nathan Yang, 2014. "Exploiting the Choice-Consumption Mismatch: A New Approach to Disentangle State Dependence and Heterogeneity," Cowles Foundation Discussion Papers 1941, Cowles Foundation for Research in Economics, Yale University.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:joamsc:v:49:y:2021:i:2:d:10.1007_s11747-020-00744-0. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.