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Three Essays Examining the Influence of Time Architecture on Consumer Behavior

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Three Essays Examining the Influence of Time Architecture on Consumer Behavior Title Page Temporally Designing the Consumer Experience: Three Essays Examining the Influence of Time Architecture on Consumer Behavior by Jillian Leigh Hmurovic B.A. in Psychology, Purdue University, 2007 M.A. in Organizational Psychology, Michigan State University, 2012 Submitted to the Graduate Faculty of the Joseph M. Katz Graduate School of Business in partial fulfillment of the requirements for the degree of Doctor of Philosophy University of Pittsburgh 2020 Committee Page UNIVERSITY OF PITTSBURGH JOSEPH M. KATZ GRADUATE SCHOOL OF BUSINESS This dissertation was presented by Jillian Leigh Hmurovic It was defended on June 23, 2020 and approved by J. Jeffrey Inman, Associate Dean for Research and Faculty and Albert Wesley Frey Professor of Marketing, University of Pittsburgh Cait Lamberton, Alberto I. Duran President's Distinguished Professor of Marketing, University of Pennsylvania Eugenia Wu, Associate Professor of Marketing, University of Pittsburgh Peggy Liu, Ben L. Fryrear Faculty Fellow and Assistant Professor of Marketing, University of Pittsburgh Kelly Goldsmith, Associate Professor of Marketing, Vanderbilt University Dissertation Advisors: J. Jeffrey Inman, Associate Dean for Research and Faculty and Albert Wesley Frey Professor of Marketing, University of Pittsburgh and Cait Lamberton, Alberto I. Duran President's Distinguished Professor of Marketing, University of Pennsylvania ii Copyright © by Jillian Leigh Hmurovic 2020 iii Abstract Temporally Designing the Consumer Experience: Three Essays Examining the Influence of Time Architecture on Consumer Behavior Jillian Leigh Hmurovic, PhD University of Pittsburgh, 2020 How can the temporal aspects of the consumer experience be strategically constructed and communicated to improve consumer behavior and decision-making? This dissertation advocates for the explicit and systematic integration of time as a determining factor in consumer experiences, presenting three essays investigating different dimensions of time architecture, the temporal design of a consumer experience: temporal sequencing of planning prompt nudges (Essay 1), temporal partitioning of initial charitable contributions (Essay 2), and temporal duration of contemporary online promotions (Essay 3). Essay 1 explores how the timing of planning nudge delivery impacts intervention effectiveness in tasks containing an optimal “early bird” deadline (i.e., after which benefits of task completion diminish). Results from three studies find that planning prompt nudge reminders delivered after the optimal deadline are significantly more effective than control reminders but offer little benefit when implemented before the optimal deadline. These findings call for 1) strategic temporal management of planning prompts and 2) increased research exploring the ideal timing of nudge delivery. Essay 2 investigates how temporal aspects of giving perpetuate donor support. Consistent with an anchoring account, results from five studies demonstrate that prior donors who initially give a recurring time-dispersed gift (e.g., monthly $10 gift for 12 months) subsequently donate less than those who initially give a one-time lump-sum gift of the equivalent total amount (e.g., iv single $120 gift). Several approaches for offsetting recurring donors’ later reduced giving are tested and implications for charities are discussed. Essay 3 questions the degree to which contemporary instantiations of online time scarcity promotions (e.g., one-hour flash sales with countdown timers) can be presumed to operate in ways theoretically and empirically consistent with foundational demonstrations of time scarcity marketing tactics, which largely predate modern online retailing and predominantly involve offline contexts (e.g., printed newspaper ad). Results from 26 new studies find that present-day online time scarcity promotions may not be as effective as generally assumed, consistent with the argument that these promotions represent a novel theoretical and empirical phenomenon. Together, these essays demonstrate that the temporal design of a consumer experience can promote or undermine traditionally accepted marketing practices, thereby warranting systematic investigation and proactive management. v Table of Contents Dedication .................................................................................................................................... xv 1.0 Introduction ............................................................................................................................. 1 2.0 (Essay 1) Prompts with Punch: Timing Planning Nudges for Maximum Effectiveness .................................................................................................................................. 7 2.1 Planning Prompt Nudges and Optimal Deadlines ....................................................... 9 2.2 When to Implement Planning Prompts? .................................................................... 14 2.2.1 Reminders With (vs. Without) Planning Prompts Before Optimal Deadline .......................................................................................................................................15 2.2.2 Reminders With (vs. Without) Planning Prompts After Optimal Deadline 17 2.2.3 Overview .............................................................................................................19 2.3 Study 1: Marketing Promotion ................................................................................... 20 2.3.1 Method ................................................................................................................22 2.3.2 Results .................................................................................................................25 2.3.2.1 Perceived Benefit ................................................................................... 25 2.3.2.2 Planning Likelihood............................................................................... 27 2.3.2.3 Self-Efficacy ............................................................................................ 28 2.3.2.4 Self-Esteem ............................................................................................. 29 2.3.2.5 Internal Locus of Control ..................................................................... 30 2.3.2.6 Psychological Distance........................................................................... 30 2.3.2.7 Deal Fairness .......................................................................................... 31 2.3.2.8 Moderated Mediation ............................................................................ 31 vi 2.3.3 Discussion ............................................................................................................33 2.4 Study 2: Lottery Enrollment ....................................................................................... 34 2.4.1 Method ................................................................................................................37 2.4.2 Results .................................................................................................................39 2.4.3 Discussion ............................................................................................................41 2.5 Study 3: Financial Aid.................................................................................................. 45 2.5.1 Method ................................................................................................................46 2.5.2 Data .....................................................................................................................48 2.5.3 Results .................................................................................................................49 2.5.3.1 Survival Analysis ................................................................................... 49 2.5.3.2 Week-by-Week Analysis ....................................................................... 54 2.5.3.3 Likelihood of FAFSA Submission ........................................................ 55 2.5.3.4 Likelihood of Opening Email 2 ............................................................. 56 2.5.4 Discussion ............................................................................................................59 2.6 General Discussion ....................................................................................................... 60 3.0 (Essay 2) Giving Again: Temporal Structure of Initial Contribution Impacts the Size of Donors’ Subsequent Gift ................................................................................................ 65 3.1 Time Architecture and Charitable Giving ................................................................. 67 3.1.1 Financially Equivalent ≠ Psychologically Equivalent .....................................67 3.1.2 Size of Prior Donors’ Next Contribution .........................................................68 3.1.2.1 Anchoring Account: Recurring Donors < One-Time Donors ........... 68 3.1.2.2 Hedonic Editing Account: Recurring Donors > One-Time Donors .. 70 3.1.2.3 Self-Perception Account: Recurring Donors > One-Time Donors.... 71 vii 3.1.3 Overview .............................................................................................................72 3.2 Study 1: ASPCA Donation Scenario .......................................................................... 74 3.2.1 Method ................................................................................................................75
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