The role of implicit theories in consumer intertemporal preference

Abstract

Purpose This study aims to investigate the psychological process of intertemporal choices between larger-later and smaller-sooner monetary options. Prior research showed consumer impatience – a tendency to prefer a smaller-sooner option over a larger-later option. This research identifies an individual difference that predicts patience and mediators that explain the underlying mechanism. Design/methodology/approach Two studies are conducted. Study 1 examines whether the implicit theory of intelligence consumers endorse (i.e. entity theory vs incremental theory) constitutes an antecedent of patience and whether their thoughts regarding anticipated purchase with the chosen monetary option (i.e. hedonic versus utilitarian purchase) mediate the relationship. Study 2 analyzes whether psychological reactance toward larger-later options is a mediator in this relationship using a perceived threat to freedom and affect as reactance indicators. Findings Entity-oriented consumers exhibited less patience than incremental-oriented consumers, especially when anticipating a hedonic purchase. Moreover, entity-oriented consumers perceived a threat to freedom from larger-later options more strongly – this enhanced perception influenced patience through two routes. One route is that the perceived threat to freedom leads to more consideration of a hedonic purchase rather than a utilitarian purchase, thereby decreasing patience. The other route is that the perceived threat to freedom elicits a stronger negative affect, resulting in lower patience. Originality/value Findings of this research shed light on the understanding of patience. They demonstrate that consumers’ implicit theory orientation is a crucial individual difference that can explain patience. Also, demonstrating the mediating roles of anticipated purchase using the hedonic/utilitarian classification and psychological reactance expanded literature by showing how they internally interact.