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The effect of usage representation and behavior control on pay-per-use choic

Abstract

This study was aimed at verifying the pay-per-use choice difference following the usage suggestion manner and the control level in the service purchase situation. Consumers are unwilling to choose the pay-per-use that can be more lucrative while preferring the flat-rate in the purchase situation. Since the service has the difference in the payment time and use time, consumers infer the future usage and choose a rate system to obtain the maximum profit compared to the payment on the basis of it. At this time, consumers who purchase the service for the first time, could not choice the tariff because it is hard to infer the amount of consumption. Therefore, marketers need to suggest the pay-per-use more attractively to induce the consumers' purchase who buy the service for the first time. Particularly the service applies to the inter-temporal choice that the purchase and use are not done at the same time, and it is difficult to know the value of alternatives due to the intangibility so it is very difficult to predict the future usage. Therefore, consumers predict the future usage based on the information about the alternative suggested in the purchase context. At this time, it was anticipated that the anchoring effect by the provided number information would influence the pay-per-use choice rate with the usage prediction. The perception on how well to control the usage simultaneously was involved in the adjustment after anchoring and the purchase itself so the researcher attempted to verify the pay-per-use selection rate difference by the usage suggestion manner and the control level. In the study 1, it was confirmed that the pay-per-use selection rate changed when the countable level changed according to how to suggest the usage. The pay-per-use selection rate was high because the usage was anchored to the smaller number when suggesting by single unit rather than suggesting by multiple unit. In the study 2, the category was fixed as one and the monitoring level was adjusted to verify the effect of the usage suggesting manner and the monitoring level difference on the pay-per-use selection. When the monitoring level was high, one perceived the control level highly and when the monitoring level was low, the sense of control was perceived lowly. The result that analyzed the pay-per-use selection difference following this was the same as the study 1. Also, the purchase intention on the pay-per-use was measured in the study 2.

keywords
pay-per-use, usage representation, anchoring, countable, monitoring, control

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