Abstract

Purpose: Many companies pursue advance selling as part of marketing. Advance selling refers to a strategy in which a company receives preorder from consumers before releasing a new product. It offers a variety of advantages to companies and consumers, but has the disadvantage of increasing uncertainty or perceived risk because consumers have to make a order before the product is released. Research on advance selling has mainly focused on the advantages of advance selling, but recently, it has been revealed when this strategy can be applied more effectively. This study also intends to suggest new variables that moderate the effectiveness of advance selling. To this end, two experiments were conducted. Research design, data, and methodology: Study 1 tested whether the response to the advance selling was different according to the product type. Experimental participants were divided into a 2 (purchase method: advance-purchase vs. immediate-purchase) × 2 (product type: utilitarian vs. hedonic) between-subjects design. One-hundred and two responses were used in the analysis. Study 2 examined whether the response to the advance selling was different according to consumers’ regulatory focus priming. Experimental participants were divided into a 2 (purchase method: advance-purchase vs. immediate-purchase) × 2 (regulatory focus priming: prevention vs. promotion) between-subjects design. Ninety-two responses were used in the analysis. Results: The results for Study 1 revealed that, first of all, product attitude and preference for sales method were higher in immediate-purchase than advance-purchase, however, this main effect were moderated by the product type. In other words, for the hedonic product, this main effect remained, but for the utilitarian product, there was no difference in product attitude and preference for sales method between immediate-purchase and advance-purchase. Likewise the result of the Study 1, product attitude and preference for sales method were higher in immediate-purchase than advance-purchase. However, this main effect were moderated by consumers’ regulatory focus priming. In other words, when consumers were primed with prevention focus, this main effect remained, but when they were primed with promotion focus, there was no difference in product attitude and preference for sales method between immediate-purchase and advance-purchase. Conclusions: The study provides the following practical implications. First, it suggests that advance selling may be an inappropriate to use for hedonic products compared to utilitarian products. If consumers perceive a product for utilitarian purposes, it can be assumed that they are less sensitive to the delay in meeting the utilitarian needs for the product. However, if a product is perceived for hedonic purposes, consumers feel uncomfortable satisfying the pleasure expected from the product later. Second, it suggests that advance selling has a negative effect on consumers with prevention focus compared to consumers with promotion focus. This is because consumers with prevention focus are sensitive to anxiety and uncertainty that could occur until they receive the product after a pre-purchase. Therefore, providing special promotion programs may be a good idea for resolving the anxiety and uncertainty. Finally, benefits such as price-discount are essential for implementing advance selling because it is less preferable compared to usual sales strategies except for brands with very high preference.

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