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An Examination of Construal Effects On Price Perceptions in The Advance Selling of Experience Services
An Examination of Construal Effects On Price Perceptions in The Advance Selling of Experience Services
Abstract
Service research in the advance selling of experience services is limited in regard to how individual and situational differences
influence price information processing. Applying construal-level theory in the context of advance selling of tickets for experience
services, this research demonstrates that who (near vs. far social distance), when (near vs. far temporal distance), and where
(spatial distance) influence price sensitivity and perceived value of the experience service. Study 1 finds that consumers are more
price sensitive when they consider the advance purchase of events taking place further in the future, unless they are experienced,
as Study 2 finds. Across both studies, buyers perceive greater value when the time and location of the event are psychologically
near. Compared to when social distance is near (self-reference), consumers construe other average buyers in the market to be
relatively more price sensitive and to perceive relatively higher value for experience services. Since an important factor at work in
the minds of buyers is other buyers, the results imply that service providers should frame offers in reference more to others than
the self for experiences. The effects of time and distance suggest managers should carefully geo-target offers customized to when
and where customers are when buying tickets. As experienced buyers have learned to be price sensitive for tickets, managers
should identify these individuals to provide relevant value-added offers.
Keywords
construal-level theory, psychological distance, price sensitivity, perceived value, experience service
The true price of anything you do is the amount of time you distance influence perceived value and price sensitivity in two
exchange for it. field studies involving the advance selling of tickets.
Henry David Thoreau Advance selling by service providers and resellers has
increasingly drawn attention from service researchers (Geng,
Services are often sold in advance, and price fluctuations are Wu, and Whinston 2007; Moe and Fader 2009) at the aggregate
common with the influx of intermediaries in secondary markets but not at the individual level. Specifically, Chandler and
(e.g., StubHub) that facilitate the resale of all kinds of experi- Lusch (2015) call for research on the role of time and context
ences. How do buyers process price information about experi- in determining how individual consumers perceive value pro-
ences closer or farther away in terms of for whom, when, and positions for experience services. Yet, to date, no research has
where the event occurs? We examine price information pro- examined individual differences in consumer processing of
cessing in the context of the advance selling of experience prices for advance purchases. Prior investigations in advance
services. selling have treated consumer uncertainty as relatively homo-
Construal-level theory (CLT) suggests that individuals geneous among rational consumers (Prasad, Stecke, and Zhao
travel across time, space, and social contexts by forming 2011; Shugan and Xie 2005; Xie and Shugan 2001). Research
abstract mental pictures of distal objects (Liberman and Trope has made some effort to examine elements of buyer-seller
1998; Trope and Liberman 2010). Consider the purchase of
tickets to a concert, play, sporting event, or other performances
and events with set capacities on given dates. Individuals pre- 1
Stetson School of Business and Economics, Mercer University, Macon,
dict or perceive the value depending on whether the event will GA, USA
2
take place sooner or later (temporal distance), what they Baylor University, Waco, TX, USA
believe about the value of the tickets personally relative to how
Corresponding Author:
others in the market value the tickets (social distance), and Lane T. Wakefield, Stetson School of Business and Economics, Mercer
whether the event is located nearby or far away (spatial dis- University, 1501 Mercer University Drive, Macon, GA 31207, USA.
tance). We investigate how these aspects of psychological Email: wakefield_lt@mercer.edu
236 Journal of Service Research 21(2)
Table 1. Distinguishing High- and Low-Level Construal and Psycho- (2010) suggest that the perception of distance between objects
logical Distance in Advance Selling of Experience Services. does not necessarily follow a linear function but is subjective,
High-Level Construal Low-Level Construal
dependent on psychological characteristics of the individual
and physical characteristics of the object/place considered.
Abstract Concrete Similarly, thinking about personally purchasing in advance
Simple Complex (near social distance) or thinking of how others perceive prices
Structure, coherent Unstructured, incoherent (far social distance) leads to differing types of reasoning. Con-
Decontextualized Contextualized
sidering opinions (self vs. others) and timing (sooner vs. later),
Primary, core Secondary, surface
Superordinate Subordinate buyers might perceive prices differently depending on psycho-
Goal relevant Goal irrelevant logical distance.
Desirability Feasibility Psychological distance can influence price information pro-
Ends Means cessing for products. Bornemann and Homburg (2011) suggest
that price sensitivity can be explained in terms of construal
High psychological distance Low psychological distance
level and psychological distance. When psychologically dis-
Temporal (far) Temporal (near) tant, consumers use price information to make quality infer-
Purchase far in advance of the Purchase close to the time of the ences (Bornemann and Homburg 2011; Yan and Sengupta
event event 2011) and to determine their preferences for products based
Social (others) Social (self) on desirability (Lee and Zhao 2014). Chen (2009) argues that
What a buyer believes others think What a buyer thinks of prices
reference prices have differential effects depending on whether
of prices
Spatial (far away) Spatial (nearby) consumers consider the perspective of others. However,
How a buyer thinks about distant How a buyer thinks about places beyond a study on charitable giving (MacDonnell and White
places close by 2015), researchers have not examined the role of psychological
distance when individuals process price information for
Note. Adapted from Trope and Liberman (2003, 2010) and Liberman and Trope
(2014).
advanced purchases in the service industry and experience ser-
vices in particular.
Applied to price search, in general, consumers believe that they buy at all. The buyer speculates on the beliefs and actions of
will have the time and ability to find better prices in the more others and the impact on ticket availability.
distant future, but pessimism sets in closer to the date of the In the high-level construal context of considering how oth-
event when they focus more on specific obstacles to finding ers (the average consumer) might evaluate and respond to
lower prices (Sweeny and Krizan 2013). prices for an experience, we expect that individuals will gen-
eralize or predict that others will perceive relatively high value
Hypothesis 1: Price sensitivity is higher when temporal for hedonic experience services. In high construal, individuals
distance is far than when it is near. resort to stereotypes of group identities (Liberman and Trope
2014). While social distance may reduce positivity about an
Perceived value of an experience increases as the time to opposing out-group (Liberman, Trope, and Wakslak 2007),
consume draws nearer. Concrete attributes are mentally stored positive attributions are likely for desirable out-groups insofar
and play a role in making subsequent judgments. Thoughts as they are accessible and aspirational (Dimofte, Goodstein,
about monetary expenditures comprise concrete thinking and and Brumbaugh 2015).
lead to more concrete construal about related actions (MacDon- With respect to socially desirable experiences, such as
nell and White 2015). If the time of a purchase is near to the cruise ships, professional sporting events, popular concerts, and
consumption experience, the consumer’s perceptions of gain ski trips, individuals think popular experiences are just that—
include explicit thoughts. For example, during the week pre- popular and positively perceived among the event’s clientele,
ceding a football game, a fan may recall specific images asso- even if the individual sees little personal value. Individuals
ciated with the event, such as pregame tailgating, wearing of perceive high-status brands (purchased by others) as having
team colors, or the exciting stimuli (e.g., food, drinks, facilities, higher symbolic and social value than low-status brands
lighting, sounds). For temporally distant events, the perceived (Stockburger-Sauer and Teichmann 2013). Just as individuals
value of the purchase is diminished as the buyer draws on more believe others place high value on a Rolex watch or Porsche
abstract benefits (e.g., enjoyment) versus the concrete benefits car, even though they may not own one, we expect they will
that come with immediacy. construe that others will perceive high value for hedonic expe-
Proximal events are more attractive than more distant events rience services under purchase consideration.
(Jhang and Lynch 2015), as individuals become more focused Conversely, when social distance is near—when one per-
on what is about to happen now as they near the commence- sonally considers the value received for a selected experience
ment and completion of consumption goals. Individuals are less service—other concrete personal factors come into play. Liber-
willing to give up slack time to achieve the goal when the event man and Trope (2014) maintain that focus shifts to situational
is coming sooner than later (Jhang and Lynch 2015; Lynch factors that may differ from the global abstractions attributed to
et al. 2010). With respect to CLT, such consumption experi- the group of consumers who typically enjoy the experience.
ences are considered more valuable in the near term, when Among a cross-section of potential buyers considering advance
concrete details are available in the present context, compared purchases, some may not enjoy the experience or, at least,
to the abstracted, decontextualized view of the distant future. enjoy the experience less than the ideal associated with the
From a practical standpoint, as the consumption experience typical experiences of others who ski, take cruises, or attend
draws nearer, less is left to the imagination as potential buyers concerts, theater, operas, and sporting events. Individuals who
access concrete information pertaining to the reality of experi- see themselves as further (different) from those highly identi-
encing the event. Thus: fied with consuming the experience are likely to access per-
sonal, concrete opinions that represent lower perceptions of
Hypothesis 2: Perceived value is higher when temporal value than the average consumer who identifies with the pro-
distance is near than when it is far. vider of the consumption experience (e.g., fans of a sports
team, musical artist, or performers). Thus:
Social. Social distance exists if the prediction, evaluation, or Hypothesis 3: Perceived value is higher when social dis-
choice is for anyone other than the self. Decisions for the self tance is far than when it is near.
are concrete, specific, and relatively more complex than the high
levels of construal necessary when one considers how others Distal others are stereotyped as highly sensitive to differ-
may evaluate an experience. Social distance is a lens that psy- ences in prices. Regardless of their own behaviors, cultural
chologically alters evaluations such that for socially distal peo- norms may lead individuals to believe that others highly regard
ple, one speculates what “seems to be the case” versus “what is price-sensitive, frugal behaviors (Borrayo and Jenkins 2003;
the case” for one’s self (Stephan, Liberman, and Trope 2010). Schmidt and Boland 1986). As Westacott (2016, p. 1) explains,
Consideration of the opinions and actions of others is inher- “Each year new books appear urging us to live more econom-
ent in advance selling contexts. For example, when considering ically, advising us how to spend less and save more, critiquing
a ticket several months in advance of the concert of a favorite consumerism . . . .. Websites and blogs devoted to frugali-
artist, a buyer may think about how many others will buy tick- ty . . . are legion.” Consistent with Irmak, Wakslak, and Trope
ets the first day of release, wait until closer to the event, or not (2013), in the superordinate approach associated with high
Wakefield and Wakefield 239
construal, consumers assume that others fit the mold and will Table 2. Study 1 Construct Items, Means, and Standard Deviations.
pay attention to prices rather than ignore prices. Accordingly,
Item (*Reverse scored) M (SD)
when individuals are asked how others might respond to price
variations (i.e., willingness to seek lower prices), we expect the Perceived value: When you think about buying a ticket to a (team)
stereotype of price sensitivity to prevail in the far social con- game for (time/date) what do you think (the average fan thinks)
text. Thus: about ticket prices? (a ¼ .906)
PV1 Bad buy/Good buy 4.45 (1.53)
Hypothesis 4: Price sensitivity is higher when social dis- PV2 Not worth the money/Worth the money 4.50 (1.72)
tance is far than when it is near. PV3 Too high for the quality of entertainment/Not too 4.19 (1.73)
high for the quality of entertainment
Price sensitivity: With respect to buying a ticket for (time/date), what
Spatial. Individuals considering advance purchases for experi- do you think (the average fan thinks) about ticket prices? (a ¼ .836)
ence services are likely to evaluate the distance required to get PS1 I (The average fan) will make an extra effort to find a 4.21 (1.54)
low price for a ticket to the game.
to the destination. In keeping with CLT, that which is more
PS2 I (The average fan) will change what I (s/he) had 4.07 (1.49)
accessible will be perceived more positively (Agrawal and planned to buy in order to take advantage of a
Maheswaran 2005). Spatially near events are associated with lower price for a ticket to the game.
low-level construal (Fujita et al. 2006) such that individuals PS3 I (The average fan) am (is) sensitive to differences in 4.32 (1.38)
living nearby will perceive the feasibility of attending an event prices of tickets to the game
as more likely than those living far away. Thus: Perceived distance: Think about the scenario of buying tickets to the
game. Did you picture the place as being: (a ¼ .959)
Hypothesis 5: Perceived value is higher when spatial dis- SD1 Someplace nearby* 3.09 (1.74)
tance is near than when it is far. SD2 Close to me* 3.11 (1.80)
SD3 Somewhere in close proximity* 3.12 (1.78)
SD4 Far away from me 2.98 (1.83)
Study 1
The purpose of Study 1 is to assess temporal, social, and spatial
distance on perceptions of price sensitivity and perceived value select a single team if two teams were equal distance from their
when purchasing hedonic experience services in advance. We residences. Respondents represented individuals in the markets
test each hypothesis in the context of buying advance tickets to of all 32 NFL teams (N ¼ 115) and all 30 MLB teams (N ¼ 97)
professional sports events. as well as 16 NBA teams (N ¼ 40), 13 NHL teams (N ¼ 19),
and 9 MLS teams (N ¼ 10). One quarter of the respondents
lived within 13 miles of the team selected and 51.6% within 35
Method miles; thus, respondents represented both local and regional
consumer markets.
Sample
We investigate consumer response to prices in an advance
selling context within (1) the category of advance sales of
admissions to spectator sports, (2) the topic of related advance
Procedure
selling studies at the aggregate level (e.g., Geng, Wu, and To manipulate psychological distance, we employed a 2 (tem-
Whinston 2007; Moe and Fader 2009), and (3) a setting impor- poral distance: near vs. distant) 2 (social distance: near vs.
tant to services researchers (Grove et al. 2012). We used a distant) between-subjects design. Respondents were randomly
nationwide online panel to obtain a sample of 281 adult parti- assigned to one of four scenarios in which the team name
cipants representing all markets containing professional teams provided by the respondent was inserted into the setting. With
(National Football league [NFL], National Basketball Associ- respect to temporal distance, we asked respondents to consider
ation [NBA], National Hockey League [NHL], Major League the purchase for this weekend in the near condition1 versus
Baseball [MLB], and Major League Soccer [MLS]). Respon- buying a ticket the same time of the year next season in the
dents were predominantly Caucasian (84.0%), 55.5% were far condition. To manipulate social distance, we asked those in
men, and the average age was 33 years (range: 20–67 years). the near condition, “What do you think about ticket prices?”
The sample represented households of lower (<$30,000, We asked those in the far condition, “What do you think the
32.4%), middle ($30,000–$69,999, 48.8%), and upper average fan of the [team] thinks about ticket prices?” The exact
($70,000þ, 19.8%) income levels. wording of the items appears in Table 2. A separate panel (N ¼
We collected data in two waves during the respective sea- 337) of recent ticket buyers found that 65.8% agree or strongly
sons of each sport. One wave occurred in November and asked agree that they consider the ticket-buying behavior of other
respondents to select an NFL, NBA, or NHL team geographi- fans in deciding when and what to buy; only 18.1% reported
cally closest to their current residences. The second wave (col- they do not consider the buying behavior of others when buy-
lected in May) asked respondents to select the geographically ing. Thus, asking what people believe about the average fan is
closest MLB or MLS team. Respondents were instructed to relevant among ticket buyers.
240 Journal of Service Research 21(2)
Table 3. Study 1 MANCOVA: Multivariate (Wilks’s Lambda) and Univariate Between-Subjects Effects.
Variables
The temporal distance scenario (buying for this weekend vs. and perceived value, with perceived spatial distance included
same time next year) comes from prior CLT experiments (Bor- as a covariate. The results confirming each hypothesis appear
nemann and Homburg 2011; Liberman and Trope 1998) to fit in Table 3.
the context of this experience service. Bornemann and Hom-
burg (2011) provide evidence that asking individuals to con-
sider purchase situations for themselves versus for the average Discussion
person produces distinct social distance. In advance selling
Study 1 represents an initial effort to understand how differ-
contexts, both buyers and sellers speculate about the behavior
ences in psychological distance with respect to who (self vs.
of the average customer to determine acceptable prices (Happel
others), when (sooner vs. later), and where (spatially near/far)
and Jennings 2002). Like other CLT studies (e.g., Kim, Zhang,
influence price information processing in advance selling of
and Li 2008), we measured motivation to complete the survey
hedonic experience services. Confirming Hypothesis 1, consu-
tasks with high levels of care (M ¼ 6.84; 7-point scale) and
mers considering ticket purchases for the coming weekend
found no differences (p > .40) across the four scenarios.
were significantly (p ¼ .012) less price sensitive (M ¼ 4.23)
We measured perceived spatial distance by asking respon-
than those considering a ticket for use in the distant future (M ¼
dents to think about the buying scenario and where they pic-
4.45). As anticipated, those in the near temporal condition
tured the place of the experience. We captured responses with 4
perceived significantly (p ¼ .047) higher value for the ticket
items (a ¼ .96) from Zhang and Wang (2009) that describe
to use in the near term (M ¼ 5.06) than in the distant future (M
spatial distance in terms of being nearby,” “close to,” “in close
¼ 4.90), in support of Hypothesis 2. Confirming Hypothesis 3,
proximity,” and “far away from me (reversed).” Thus, we mea-
consumers considering ticket prices for themselves perceived
sured perceived distance as a function of naturally occurring
significantly (p < .001) lower value (M ¼ 4.66) than those
phenomenon with respect to variations in distances traveled.
asked about the opinions of what distant others perceived the
Respondents also reported the actual distance in miles from
value of a ticket to be (M ¼ 5.30). In support of Hypothesis 4,
their residences to the venues, which correlates with spatial
price sensitivity was significantly (p < .001) lower for those in
distance perceptions (r ¼ .366, p < .01).
the psychologically near social condition considering the self
Prior research has tested the dependent measures in hedonic
(M ¼ 4.22) than for those in the far social condition construing
service contexts. We adapted price sensitivity (a ¼ .84) from
the price sensitivity of others in the market (M ¼ 4.45). Spatial
Wakefield and Inman (2003) and captured perceived value (a
distance produced a significant overall effect (p ¼ .007), indi-
¼ .88) with items drawn from Wakefield and Barnes (1996).
cating the farther away respondents perceived the venue to be
Table 2 lists the items, means, and SDs. As does other CLT
from their residences, the less value they placed on the ticket (b
work (Fujita et al. 2006; MacDonnell and White 2015; Zhao
¼ .126, t ¼ 2.74). Thus, Hypothesis 5 is supported. Overall,
and Xie 2011), we account for affinity of the service provider
including the individual differences, the model explains 38.2%
via social identification (Mael and Ashforth 1992) as well as
of variance in perceived value and 16.3% in price sensitivity.
accounting for individual differences (demographics).
Our findings indicate that individuals process price infor-
mation differently depending on the extent to which they rely
on concrete versus abstract construal. The key implication for
Analysis and Results (ticket) sellers is that the multidimensional mental frame of the
We conducted a 2 (temporal: near/far) 2 (social: near/far) buyer alters the acceptance of a price as a good value and
multivariate analysis of covariance (MANCOVA) to test the influences willingness to search for a better price. We discuss
hypotheses. The dependent variables were price sensitivity related managerial issues more fully following Study 2.
Wakefield and Wakefield 241
demographics of season ticket holders (N ¼ 486) and previous Table 4. Study 2: Manipulation Checks.
individual buyers and prospects (N ¼ 1,023).
Temporal Social
Table 5. Study 2 MANCOVA: Multivariate (Wilkes’s Lambda) and Univariate Between-Subjects Effects.
Variables
General Discussion
To our knowledge, these studies are the first to examine
consumer perceptions of advance selling of experience ser-
vices, offering insight into the mind-set of consumers in
advance selling of services (Xie and Shugan 2001) and
answering the call to focus on the dynamics of the who,
when, and where of experience services. Specifically,
Chandler and Lusch (2015) propose five properties of ser-
vice engagement that asks researchers to examine consu-
mers’ temporal (when) and relational (who) connections
with past, present, and future dispositions toward the ser-
vice. Within the framework of CLT, we confirm that what Figure 2. Interaction between past experience and temporal
people perceive today is based on how they perceive the self distance.
and others in specific future settings as well as on past
consumption experience. We find that consumers can experience increased psychologi-
cal distance and still construe price as sacrificial for experience
services. Specifically, in Study 1, those in the far temporal
Contributions to Theory and Implications for
condition were more price sensitive. In Study 2, theater patrons
Further Research with less experience were more price sensitive in the short run
We extend research on the effects of psychological distance to but increasingly price sensitive (for both near and far condi-
services research and price information processing. Prior work tions) as they gained more experience in the market. Further-
employing CLT has not explored the effects on price percep- more, in both studies, increased social distance increased price
tions (Bornemann and Homburg 2011) or the associations sensitivity, as respondents perceived other patrons as sensitive
among multiple sources of psychological distance (Liberman to changes in prices. Future studies applying CLT should con-
and Trope 2014). The current research contributes on both sider the effects in realistic field settings in which the consump-
fronts, showing that the concrete means (feasibility) and tion context is repeated or routine (not novel) and consumer
abstract ends (primary goal) corresponding to low- and high- resources (time and money) vary.
construal contexts (temporal, social, and spatial) influence Study 2 shows that experienced consumers may more easily
price sensitivity and perceived value. retrieve price information that mitigates temporal effects. Inex-
Bornemann and Homburg (2011, p. 502) find that increased perienced consumers may lack price knowledge but be confident
psychological distance causes consumers to “construe price in successfully completing a task in the future (Gilovich, Kerr,
according to its high-level implications for quality and [that and Medvec 1993) and optimistic about finding a more accep-
they are] less likely to focus on its role as monetary sacrifice.” table price, given the time to search. Conversely, as the date
244 Journal of Service Research 21(2)
nears, individuals focus on concrete obstacles (Sweeny and Kri- research might extend our work to the advance selling of uti-
zan 2013), which may inhibit price search for inexperienced litarian services to determine such psychological distance
buyers. Buyers with recent and recurring experiences in purchas- effects. Temporal, social, and spatial distance may influence
ing the service, however, may be more fluent with salient market perceptions of value for services with high opportunity costs
dynamics and be less vulnerable to temporal effects. Prior CLT regarding the time customers must wait to be served if consid-
studies (e.g., Goodman and Malkoc 2012; Zhang, Zhang, and Li ering advance selling (appointments) versus on the spot (walk-
2016) have focused on novel (e.g., new restaurants or online in). Examples include tire service, hair styling, retail phone
retailers) or isolated (e.g., buying ice cream on the way to a carriers, cable and dish television providers, and departments
vacation) product choices and cases when consumers lack expe- of motor vehicles.
rience (e.g., selling coffee mugs to others), but our work con- Across both studies, perceived value was higher when tem-
firms that recent experience reduces psychological distance poral distance and spatial distance were near. While other CLT
effects (Benning, Breugelmans, and Dellaert 2012) for fre- studies often examine psychological distance effects in isola-
quently repeated hedonic services. In line with Kyung, Menon, tion of each other, our studies suggest that individuals who live
and Trope (2014), we suggest that future CLT work find other nearby and are considering an event coming soon are apt to
ways experience moderates psychological distance effects. perceive higher value than in either case alone. Although not a
As Shugan and Xie (2004) emphasize, service providers can significant interaction effect, in the theater context the per-
increase profitability by selling in advance (vs. spot pricing) ceived value for respondents in the near temporal and spatial
when customers are uncertain. Our studies confirm that con- conditions (M ¼ 74.23) was higher than it was for those who
sumers face a great deal of uncertainty, and the application of lived nearby considering a distant-future ticket (M ¼ 72.81),
CLT provides theoretical support for why uncertainty arises. for those considering a ticket for an event coming soon but
Buyers face uncertainty about price perceptions of others living farther away (M ¼ 70.30), and for those who lived far
(social distance), which influences availability and prices; away considering a ticket for the distant future (M ¼ 69.55).
about the value, which depends on the amount of time between Additional research could include experimental and field set-
the present and the event (temporal distance); and about the tings that account for multiple dimensions of psychological
real and perceived spatial distance between themselves and the distance that may alter the magnitude or direction of results,
physical location of the event. We expect psychological dis- particularly with respect to advance selling versus spot selling.
tance to influence price perceptions of other services in
advance selling opportunities. One potential area for research
is the possible interaction with mobile devices, as research
Managerial Implications
(Hein, O’Donohoe, and Ryan 2011) suggests that users per- Service marketers can benefit from this research by gaining a
ceive the device as an extension of and, thus, close to the self. better understanding of how to promote hedonic experience
Does using mobile devices and apps from the service provider services in advance selling scenarios. First, as Shugan and Xie
reduce psychological distance in advance selling? Do consu- (2004) note, to effectively use advance selling, service provi-
mers perceive prices differently, all else being equal, when ders benefit by limiting the resale of tickets. Because the
presented on a mobile app by the service provider versus by growth of the secondary market makes this less feasible, adding
intermediaries or on difference devices? Such research could value through other means (e.g., experiences, concession vou-
facilitate pricing models for service providers and chers, and souvenirs) to individual ticket owners could per-
intermediaries. suade buyers to forgo financial gain in favor of psychological
Given advance selling, consumers of hedonic experience gain through the enhanced experience. Alternatively, some ser-
services have much to gain by considering how others perceive vice firms (e.g., Philadelphia 76ers, New York Yankees, and
price. The decisions of others affect price dispersion and avail- Golden State Warriors) have partnered with resellers (e.g.,
ability in dynamic markets. Thus, we introduce an important StubHub and Ticketmaster) to provide more control and to
decision factor in the advance selling of experience services share risk and revenue. This practice can be risky, though, as
that may not be present in other buyer-seller contexts. Our some resellers may gain too much control and encounter anti-
studies demonstrate that individuals construe others to more trust lawsuits (Novy-Williams and Smythe 2016).
highly value tickets to sporting events and theater perfor- Understanding the effects of psychological distance can
mances than when they reference self-perceptions. In a collec- help service providers identify circumstances when buyers per-
tive sense, this suggests buyers overestimate the market’s value ceive less value—those temporally distant, socially near, or
for a given ticket. This bias, which we argue is based on high spatially distant. Service providers account for temporal dis-
construal of stereotypical responses to patrons of hedonic tance by offering incentives for purchasing far in advance or
experiences, may explain why individuals may buy a ticket at renewing in the off-season. However, digital or personal mes-
a price higher than if based on self-reference alone. This type of sages could frame the purchase situation to prompt buyers to
bias is apt to be present in dynamic markets but seems less access more concrete information with respect to temporal
likely for grocery store shopping or utilitarian services in which (“What happened the last time you waited to buy tickets?”),
individuals are less concerned about what others think of prices social (“Customers like you bought tickets . . . ”), and spatial
and have little fear of inventory depletion. However, further (“When was the last time you came to town?”) distance. To
Wakefield and Wakefield 245
reach those who see little value from a personal standpoint, packaged goods, with less attention paid to services and the
marketers could use a seeding strategy, in which influencers advance selling of experience services.
spread messages in online social networks (Hinz et al. 2011). While Hypotheses 2–5 hold in both studies, we proposed,
The effects of time and distance suggest managers should care- tested, and found that temporal distance effects on price sensi-
fully geo-target offers customized to when and where custom- tivity reverse course in Study 2 among experienced buyers. We
ers are when buying tickets. reasoned that as buyers gain experience, they access concrete
Since an important factor at work in the minds of buyers is price information that leads to greater price sensitivity in the
other buyers, the results imply that service providers should near term than when accessing abstract price dispersion in the
frame offers in reference more to others than the self for experi- more distant future. However, Vallacher and Wegner (1989)
ences. Hedonic experience services often promote with a suggest that buyers differ depending on individual differences
“reward yourself” or “you deserve it” theme. However, from related to low or high levels of personal agency. Future work
a pricing promotion standpoint for tickets, customers may per- might examine the interaction between CLT effects and per-
ceive higher value when they think of how much others desire sonal agency styles.
the tickets and are searching for good seats. StubHub, with its This research provides the basis for other research streams
“Your ticket out” campaign may do well to cue the thought of in addition to those already noted. First, tangential to our work
others in its messaging, such as, “When everyone wants to go, is the understanding of scarcity effects, which may interfere or
it’s your ticket out.” moderate consumer response (Suri, Kohli, and Monroe 2007),
As experienced buyers have learned to be price sensitive for considering different states of psychological distance. Second,
tickets, managers should identify these individuals in the data- we did not explicitly account for consumer knowledge or accu-
base to provide relevant value-added offers to increase pur- rate recall of prices (Monroe and Lee 1999), which might also
chases. An example for theatres for select performances or moderate CLT effects. Third, the field settings provide external
ticket bundles is to offer a post-show red carpet gala with validity but less control of other factors that might prove useful
complimentary food, beverages, music, and photo opportuni- in experimental designs to confirm and extend our findings.
ties as they meet and greet with the cast and creative team. Fourth, our study is limited to sports and performing arts.
Cobranding with partners can add value to attract experienced, Future work in other settings and an examination of consumer
more frequent buyers by providing extras (e.g., team or theatre characteristics with actual purchase data would be fruitful.
cobranded water bottles) for making additional purchases (e.g., Fifth, although not our focus, others might further explore the
buy 4 or more to receive the offer) without reducing prices. effects of covariates included in our models (identification and
Service providers may try to attract single-event buyers by passion) on price perceptions. Sixth, our study did consider
providing adequate incentives to combat the learned behavior probabilistic distance (Liberman, Sagristano, and Trope
of shopping secondary market sites. While salespeople often 2002). Although our scenarios presumed purchase (Study 1)
have inadequate knowledge of the competition (Johnston and and included previous buyers (Study 2), by controlling for
Marshall 2016), it may also be the case that they have not attitudes toward the provider, further research might discover
offered the proper incentives to price-sensitive consumers. that those who find ticket purchase improbable (e.g., just think-
According to Study 2, inexperienced prospects are likely to be ing about it) behave differently than those predetermined to
less price sensitive for an event coming sooner and are optimistic purchase in advance.
of finding a lower price for an event farther into the future. Changes in psychological distance influence perceived value
Informal interviews with senior executives from major resellers and price sensitivity. Perceived value and price sensitivity
and service providers (professional sports and performing arts) increase as individuals take the perspective of others likely to
reveal that the original seller (e.g., the team and theater) often patronize the service provider. Perceived value is greater when
has unsold inventory at prices below secondary market values. the time of consumption and the location is nearer. Study 2 helps
Thus, salespeople and service providers, in general, need to answer the question of which buyers wait until the last 72 hours
educate buyers in ways that recognize the convenience factor to purchase—that is, experienced buyers are more price sensitive
of intermediaries while providing more intuitive and convenient as the date of the event draws nearer (vs. those with little or no
ways to do business with the original seller. One avenue for experience). In summary, who (near vs. far social distance),
improvement is the online buying experience. Consumers are when (near vs. far temporal distance), and where (spatial dis-
accustomed to clicking once (Amazon.com) or twice (StubHub) tance) influence price sensitivity and perceived value of the
to purchase. However, for many service providers in these sec- experience service in advance selling contexts.
tors, the process often takes eight or more clicks.
Declaration of Conflicting Interests
The author(s) declared no potential conflicts of interest with respect to
the research, authorship, and/or publication of this article.
Conclusion and Limitations
The findings add to the service marketing and CLT literature Funding
and the sparse investigations of price information processing in The author(s) received no financial support for the research, author-
advance selling contexts. To date, CLT studies have focused on ship, and/or publication of this article.
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Yan, Dengfeng and Jaideep Sengupta (2011), “Effects of Construal experience as a high school coach and teacher and in sponsorship sales
Level on the Price-Quality Relationship,” Journal of Consumer with Spurs Sports and Entertainment, he completed his doctorate at
Research, 38 (2), 376-389. Texas A&M University. His research interests are in hedonic experi-
Zeithaml, Valarie A. (1988), “Consumer Perceptions of Price, Quality ences, sponsorship, and ephemeral media and his work has recently
and Value: A Means-End Model and Synthesis of Evidence,” been accepted at the Journal of Interactive Marketing and Sport Man-
Journal of Marketing, 52 (July), 2-22. agement Review.
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metry: The Spatial Dimension vs. Other Dimensions,” Journal of Kirk L. Wakefield is the Edwin W. Streetman professor of retail
Consumer Psychology, 19 (3), 497-507. marketing at Baylor University. He has authored dozens of influ-
Zhang, Ziyuan, Baojun Zhang, and Zhongquan Li (2016), “Price Dis- ential publications in prestigious journals such as the Journal of
crepancy Between Sellers and Buyers When Making Decisions for Service Research, Journal of Marketing, Journal of Consumer
the Self and Others,” Psychological Reports, 118 (3), 889-901. Research, Journal of Retailing, Journal of Advertising, and Jour-
Zhao, Min and Jinhong Xie (2011), “Effects of Social and Temporal nal of the Academy of Marketing Science. In addition, as executive
Distance on Consumers’ Responses to Peer Recommendations,” director of the Center for Sports Sponsorship & Sales (S3), Wake-
Journal of Marketing Research, 48 (3), 486-496. field has worked extensively with industry brand partners, includ-
ing StubHub, AT&T, The Marketing Arm, and BAV Consulting
(where he serves as a consulting scholar) as well as consulting
Author Biographies
with the Dallas Cowboys, Cleveland Browns, San Diego Padres,
Lane T. Wakefield is an assistant professor of sports marketing and New Orleans Saints & Pelicans, Green Bay Packers, and many
analytics at Mercer University in Macon, Georgia. After gaining others.