Age-induced decision shrinkage, another avenue to repeat purchase: the example of new automobiles
AbstractThe literature from psychology and gerontology suggests that older persons have reduced cognitive abilities, and an increased risk aversion. On this basis, we predict that their decision process will be shrunk, in three manners: a smaller consideration set, a focus on the previous brand (leading to repeat purchases), a privileged status given to other ancient brands. In a survey approach, we test these predictions on a large sample of recent buyers of new automobiles. The results confirm the prediction: A shrinkage of the decision process appears after sixty, and is markedly stronger after seventy-five, two limits suggested by the literature.
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Bibliographic InfoPaper provided by HEC Paris in its series Les Cahiers de Recherche with number 748.
Length: 57 pages
Date of creation: 01 Feb 2002
Date of revision:
age; consumer behavior; purchase process; brand loyalty; cautiousness;
Find related papers by JEL classification:
- D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment
This paper has been announced in the following NEP Reports:
- NEP-ALL-2002-12-02 (All new papers)
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