The rental‐function effect: How does product acquisition mode affect consumer preference relating to product attributes?

Abstract

AbstractPurchasing and renting are two basic modes for consumers to acquire a product. While prior research has investigated which factors affect consumers' choice of renting versus purchasing a product, very limited research studies the outcome of renting versus purchasing a product. Extending this line of research, this paper links product acquisition mode to product attribute preference. Specifically, through a series of eight multimethod studies, including secondary data study, field experiment, and lab experiments, we show that renting a product, as compared to purchasing a product, increases consumers' focus on the product's feasibility aspect rather than its desirability aspect, which in turn drives consumers to prefer the product option with superior function over the one with superior appearance. Furthermore, we show that this rental‐function effect amplifies (attenuates) when the product's brand image is positioned as a mass brand (a luxury brand). This paper uncovers a novel finding of renting products. It also provides practical guidelines for rental companies and marketing managers on how to effectively position their products and optimize advertising strategies.