Effects of quantity promotional frames on inaction inertia

Purpose: Inaction inertia is the phenomenon in which people are less likely to accept an opportunity after having previously missed a relatively superior one. This research explores how framing quantity promotions as either a freebie (e.g. “buy 1, get 1 free”) or a price bundle (e.g. “buy 2, get 50% off”) influences inaction inertia. Relevant mediators are also identified. Design/methodology/approach: Three experiments, two using imaginary scenarios and one using an incentive-compatible design, test the hypotheses. Findings: Consumers who miss a freebie quantity promotion express higher inaction inertia than consumers who miss a price bundle promotion. The cause of this difference is higher perceived regret and greater devaluation that result from missing a superior freebie (vs price bundle) promotion. Research limitations/implications: Future research should examine how factors influencing perceived regret and devaluation moderate the quantity promotional frame effect on inaction inertia. Practical implications: The findings provide insights into which quantity promotional frames practitioners should use to reduce inaction inertia. Originality/value: This study's comprehensive theoretical framework predicts quantity promotional frame effects on inaction inertia and identifies relevant internal mechanisms. The findings are evidence that inaction inertia is caused by both perceived regret and devaluation in certain contexts. Furthermore, this study identifies the conditions in which a price bundle promotional frame is more beneficial than a freebie promotional frame.