Making Up for Missed Chances with Windfall Money

Document Type

Conference Proceeding

Conference Track

Marketing Research/ Demographics/ Consumer Behavior

Publication Date



Research on inaction inertia suggests that consumers are unlikely to take advantage of an attractive offer (e.g., a 25% price discount) if a better one has passed them by (e.g., a 50% discount). We investigate how windfall money may affect the inaction inertia dynamics by comparing the attractiveness of buying a $100 box of chocolates (1) selling at $25 discount, or (2) with $25 windfall money. We find that, in the absence of any better (missed) offers, the two options are equally attractive; however, if a better first offer has been missed (e.g., $50 discount), the windfall option less attractive than the discount (but only if the windfall is in cash and not in the form of a gift card).

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Digital Commons@Georgia Southern License

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