What if I find it cheaper someplace else?: Role of prefactual thinking and anticipated regret in consumer behavior

Previous research has focused primarily on affect generated from counterfactual thinking after decisions have been made. The current study, in contrast, examined how predecision mental simulations (prefactuals) and feelings of anticipated regret are affected by different marketing strategies. A preliminary investigation found that consumers frequently produce upward prefactuals (e.g., if I buy it today and find it for less next week, I'll regret my purchase) when considering a major purchase. It was hypothesized that providing price guarantees would reduce upward prefactual generation and reduce anticipated regret. The primary investigation supported these predictions. When price guarantees were available, prefactuals were more downward in direction and negative affect was reduced. Also, price guarantees increased long‐term satisfaction and happiness even when they were not exercised. Implications for mental simulation, marketing, and judgment and decision making are discussed. © 2000 John Wiley & Sons, Inc.