Licensing Effect in Consumer Choice

Licensing Effect in Consumer Choice

April 2005 | Uzma Khan and Ravi Dhar
This paper explores the licensing effect in consumer choice, where prior decisions that boost self-concept can license more self-indulgent choices. The authors propose that expressing an initial virtuous intent reduces negative self-attributions associated with luxury purchases, thereby increasing the likelihood of choosing indulgent options. Five studies were conducted to test this hypothesis. In Study 1, participants who first engaged in a charitable act were more likely to choose a luxury item (designer jeans) over a utilitarian one (vacuum cleaner) compared to those in a control condition. Study 2 extended these findings to items within the same product category, showing that participants who first made a charitable decision were more likely to choose a more expensive and frivolous option. Study 3 demonstrated that the licensing effect was also observed in real-world decisions, where participants who helped a foreign student donated less to charity than those in a control condition. Study 4 showed that attributing the initial virtuous act to an external source reduced the licensing effect, suggesting that the effect is tied to the internal self-concept. Study 5 provided evidence that a boost in self-concept mediated the preference for luxury items, supporting the theory that the licensing effect operates by temporarily enhancing self-concept, which reduces negative self-attributions associated with indulgent choices. The findings suggest that prior decisions can influence subsequent choices without conscious awareness or intention. This has important implications for understanding how self-concept influences consumer behavior. The research also highlights the role of self-concept in shaping preferences, showing that an initial altruistic intent can license more indulgent choices by reducing negative self-attributions. The results contribute to the understanding of how priming self-concept affects consumer choices, particularly in the context of luxury goods. The findings have implications for marketing, suggesting that marketers can influence consumer preferences by creating opportunities for self-concept boosting decisions before making a purchase.This paper explores the licensing effect in consumer choice, where prior decisions that boost self-concept can license more self-indulgent choices. The authors propose that expressing an initial virtuous intent reduces negative self-attributions associated with luxury purchases, thereby increasing the likelihood of choosing indulgent options. Five studies were conducted to test this hypothesis. In Study 1, participants who first engaged in a charitable act were more likely to choose a luxury item (designer jeans) over a utilitarian one (vacuum cleaner) compared to those in a control condition. Study 2 extended these findings to items within the same product category, showing that participants who first made a charitable decision were more likely to choose a more expensive and frivolous option. Study 3 demonstrated that the licensing effect was also observed in real-world decisions, where participants who helped a foreign student donated less to charity than those in a control condition. Study 4 showed that attributing the initial virtuous act to an external source reduced the licensing effect, suggesting that the effect is tied to the internal self-concept. Study 5 provided evidence that a boost in self-concept mediated the preference for luxury items, supporting the theory that the licensing effect operates by temporarily enhancing self-concept, which reduces negative self-attributions associated with indulgent choices. The findings suggest that prior decisions can influence subsequent choices without conscious awareness or intention. This has important implications for understanding how self-concept influences consumer behavior. The research also highlights the role of self-concept in shaping preferences, showing that an initial altruistic intent can license more indulgent choices by reducing negative self-attributions. The results contribute to the understanding of how priming self-concept affects consumer choices, particularly in the context of luxury goods. The findings have implications for marketing, suggesting that marketers can influence consumer preferences by creating opportunities for self-concept boosting decisions before making a purchase.
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