The effect of the preorder strategy on consumers' product choice: The moderating role of product experience and payment timing

Abstract

This article examines how the preorder strategy influences the consumers' product choice. The results reveal that consumers who preorder are more likely to choose a high price, high performance option rather than a low price, low performance option.Product experience is a key moderator of the effects of the preorder strategy. During the preorder period, more inexperienced consumers chose a premium option (front orchestra seats) than a value option (rear orchestra seats). However, for experienced consumers, the preorder effect disappears. In addition, the timing of payment also moderates the effect of the preorder strategy. Respondents in the preorder & pay-later condition chose the premium option (front orchestra seats) more often than those in the preorder & pay-now and regular selling & pay-now conditions. However, the respondents' choice of the premium option did not show a significant difference between the preorder and pay-now condition and the regular selling & pay-now condition.