Mental conversion: a customer service strategy impacting shopping experiences

Abstract

PurposeThis study aims to provide a practical strategy for customer service and salesforce from the basis of behavioral economics. When customers thought they missed a discount but eventually could get the deal, they perceived that they had obtained more value. This research defines such a conversion effect between gain and loss accounts, demonstrates its impact in marketing settings and provides the salesforce a tactic to increase sales and quality of customer service to improve the consumer experience in the social customer journey.Design/methodology/approachThree experiments were conducted in a behavioral lab and online setting. Participants were randomly assigned to 2 (gain vs loss) × 2 (converted vs simple) between-subjects designs in the first two experiments and 2 (gain vs loss) × 2 (converted vs simple) × 2 (high price vs low price) in the third experiment. Analysis of variance was conducted to analyze the data. Mediation and moderation analyses were also conducted to identify the mediator and moderator in the model.FindingsThe conversion between gain and loss mental accounts exists, and the converted gains are more likely to lead consumers to make purchases with a once-lost discount than simple gains. This conversion effect is mediated by consumers’ implemental mindset activated by the conversion and moderated by price.Originality/valueThis research shows that mental accounts of gains and losses can be dynamically converted to one another. It provides a managerial tactic for salesforces and customer service to lead consumers to make a purchase decision right away. This is especially important when they aim to enhance the consumer experience in the social customer journey.