Trade-ins, Mental Accounting, and Product Replacement Decisions

245 citations recorded by the source corpus.

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

When less is more: Consumer aversion to unused utility (2012, background): “Prior research suggests that sunk-cost and product-replacement biases can be mitigated when decision makers can recoup a portion of a past investment (Arkes, 1996; Okada, 2001).”
The Limits of Fungibility: Relational Schemata and the Value of Things (2003, unknown): “Money often does not transfer easily from one mental account to another, and this peculiar lack of transferability can influence both purchasing and tradein decisions (Okada 2001).”
Optimal pricing strategy under trade-in program in the presence of strategic consumers (2019, background): “In our model, 𝛿 captures not only the opportunity cost of postponed purchasing [21, 47], but also how strategic consumers are, i.e., 𝛿 = 0 represents myopic consumers (e.g., Cachon and Swinney [8], Papanastasiou and Savva [35], Shum et al. [41], Swinney [45]).”
Optimal Prices and Trade-in Rebates for Durable, Remanufacturable Products (2005, background): “…our model is distinct from marketing models addressing how individual customers make their replacement decisions based on the “mental book value” (similar to perceived residual value) of their current product and their utility for the new product (Purohit 1995, Heath and Fennema 1996, Okada 2001).”