Compensatory consumption and unplanned purchases : the moderating role of the decision frame effect

Abstract

This research aims to investigate the relationship between prior spending and unplanned purchases based on an understanding of decision framing effects and compensatory psychology. We argue that the impact of prior buying on unplanned purchases is moderated by the decision frame (separate vs. integrated). We conducted a series of four sequential scenario-based experimental studies to support our theoretical predictions. Consequently, our study revealed that travelers within a separate decision frame exhibited a stronger compensatory motive, leading to a higher unplanned purchase when prior spending was low. In practice, this research has managerial implications using compensatory consumption marketing strategies.