Adapted from AdPrin.com

When Should Ads Link Payments to Consumption?

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Adapted from AdPrin.com 2

Going to the football game on Saturday?

Mr. A bought his ticket a year ago.Mr. B bought his ticket on Friday before the

game (for the same price).There is a snowstorm on the game day.Who is most likely to go:___ Mr. A or ___ Mr. B?Why? See the next slide.

Adapted from AdPrin.com 3

Click this slide for the evidence

Mr. B. because the payment is more closely linked to the consumption. Because his purchase was recent, the cost looms larger in his mind (Thaler 1980 in Persuasive Advertising p 49).

In a lab experiment, 80 subjects were asked to imagine that they had pre-purchased four days’ worth of lift tickets at a ski resort. One group had a four-day pass and the other had four one-day passes. The group that had the unbundled tickets were more likely to say they would go skiing despite bad conditions (Soman & Gourville 2001).

Adapted from AdPrin.com

Based on this exercise, write a small application step for yourself, and set a deadline, preferably within one week. If you are working with someone else, share your application plan and the results of your application.

• For example, consider linking payments to consumption.