Consumer substitution decisions: an integrative framework

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Consumer substitution decisions: an integrative framework Rebecca W. Hamilton & Debora V. Thompson & Zachary G. Arens & Simon J. Blanchard & Gerald Häubl & P. K. Kannan & Uzma Khan & Donald R. Lehmann & Margaret G. Meloy & Neal J. Roese & Manoj Thomas

# Springer Science+Business Media New York 2014

Abstract Substitution decisions have been examined from a variety of perspectives. The economics literature measures cross-price elasticity, operations research models optimal assortments, the psychology literature studies goals in conflict, and marketing research has examined substitution-in-use, brand switching, stockouts, and selfcontrol. We integrate these perspectives into a common framework for understanding consumer substitution decisions; their specific drivers (availability of new alternatives, internal vs. external restrictions on choice); the moderating role of a consumer’s commitment to an initially desired alternative; and the affective, motivational, cognitive, and behavioral outcomes of substitution. We use this framework to recommend new avenues for research. R. W. Hamilton (*) : P. K. Kannan University of Maryland, College Park, MD, USA e-mail: [email protected] P. K. Kannan e-mail: [email protected] D. V. Thompson : S. J. Blanchard Georgetown University, Washington, DC, USA D. V. Thompson e-mail: [email protected] S. J. Blanchard e-mail: [email protected] Z. G. Arens Oklahoma State University, Stillwater, OK, USA e-mail: [email protected] G. Häubl University of Alberta, Edmonton, AB, Canada e-mail: [email protected]

Mark Lett

Keywords Substitution . Consumer choice . Choice restriction . Commitment Choosing a substitute—selecting a product or service to replace one that was initially desired—is something consumers do regularly. Research in psychology, economics, operations, and marketing have each provided distinct theory and analytic tools to understand such decisions. No common framework exists, however, to integrate the findings. For instance, substitution arising in response to internally imposed restrictions (e.g., dieting) has not been compared to substitution in response to externally imposed restrictions (e.g., stockouts) nor has substitution motivated by restrictions been compared with substitution motivated by new product introductions. Moreover, the separate literatures on brand switching, status quo bias, and brand loyalty have yet to be connected with regard to substitution decisions. This article integrates these diverse perspectives and proposes a framework for understanding substitution decisions that highlights the initial drivers of substitution, the consumer’s level of commitment to the current alternative, and the outcomes of substitution.

1 What is substitution? The word substitute comes from the Latin word substituere, meaning “to set up in place of.” Originally applied to people, such as appointed delegates in the clergy or military, “substitute” later was applied to objects and practices (Oxford English 2013). Early psychological theory app