To deliberate or not? The effects of anticipated regret and deliberation on willingness-to-pay

While consumers favor control over the price to pay, they also are deterred by the effort involved and tend to underpay in participative pricing contexts. We identify anticipated regret and deliberation as potential psy-chological determinants for consumers' willingness to pay (WTP). In 3 studies, we show that anticipated regret and deliberation increase the WTP for the preferred option. Our single-paper meta-analysis (includes 11 studies) demonstrates the combined effect of anticipated regret and deliberation on valuation across varying manipu-lations, purchase context, goods, and decision contexts. By detailing how anticipated regret and deliberate in-creases WTP, we offer a potential solution for underpaying and conclude by discussing directions for future research and managerial implications.

Automated summary

Consumers prefer control over pricing, but are deterred by effort and tend to underpay. Anticipated regret and deliberation are identified as psychological determinants for consumers' willingness to pay (WTP). Through three studies and a meta-analysis of 11 studies, the research shows that anticipated regret and deliberation increase WTP for the preferred option. This provides a potential solution for underpaying and has implications for future research and management.