Self-Signaling and the Costs and Benefits of Temptation in Consumer Choice

Author:

Dhar Ravi1,Wertenbroch Klaus23

Affiliation:

1. Yale School of Management, and Yale University

2. INSEAD Europe Campus, Fontainebleau, France

3. The Wharton School, University of Pennsylvania

Abstract

The literature on self-control emphasizes that temptation is costly. The authors propose that temptation entails not only costs but also benefits for consumers. These arise from self-signaling effects of how consumers handle tempting choice options. Succumbing to temptation is a (costly) self-signal of weak willpower, whereas resisting temptation is a (beneficial) self-signal of strong willpower. Five experiments demonstrate that these self-signaling costs and benefits of temptation depend not only on the chosen item but also on the temptation from the nonchosen options. The authors discuss theoretical implications of their findings for research on impulsive choice and self-control and on self-signaling and managerial implications for pricing and assortment strategies.

Publisher

SAGE Publications

Subject

Marketing,Economics and Econometrics,Business and International Management

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