Probabilistic Experience: How Material and Experiential Purchases Shape Consumer Preference for Probabilistic Selling
Prof. Han GONG
Associate Professor, College of Business
Shanghai University of Finance and Economics
Date: 10 December 2024 (Tuesday)
Time: 10:30 to 12:00
Venue: E22-G015
Host: Prof. Esther Qianqian LIU, Assistant Professor in Marketing
Abstract
Probabilistic selling, a marketing strategy where consumers trade personal choice for discounted prices, has proven beneficial for firms, yet how consumers react to this strategy remains underexplored. In this paper, we examine how purchase type—material versus experiential—affects consumer preference for probabilistic selling. In a series of studies, we demonstrate that consumers are less likely to choose probabilistic selling for material purchases compared to experiential purchases. This effect occurs because consumers tend to adopt the maximizing strategy for material (vs. experiential) purchases, which reduces the appeal of probabilistic selling due to the potential for receiving a suboptimal product. Additionally, we identify the attractiveness of options as a theoretically and managerially relevant moderator. Our findings enhance the understanding of probabilistic selling from the consumer perspective and suggest that marketers should highlight the experiential aspects of products to better leverage the advantages of probabilistic selling.
Speaker
Professor Han GONG (龚晗) is an associate professor of marketing at Shanghai University of Finance and Economics. Han obtained her PhD in cognitive psychology from Northwestern University with a focus on categorization and behavioral decision-making. Her work has been published in leading journals, such as Journal of Consumer Research, Journal of Consumer Psychology, Research Policy, Judgment and Decision-Making, and Marketing Letters. Han has also received multiple grants from the National Natural Science Foundation of China.
All are welcome!
