THE ROLE OF UNCERTAINTY IN ENHANCING CONSUMER RESPONSES FOR PROMOTIONAL GIVEAWAYS

Abstract

Although uncertainty has often being associated with doubts and insecurity, recent research has indicated that uncertainty in future positive events can enhance affective experiences of those who undergo the uncertain process. In order to materialize the benefits of positive uncertainty in the marketplace and yield concrete return for practitioners, a deeper understanding of the positive uncertainty effects beyond consumer affective responses is needed. In this research, this is done through examining the impact of incorporating uncertainty in the marketer’s gift-giving process on consumers’ valuations of the gift. Study 1 incorporates uncertainty into the process of giving out free gifts in a lucky draw context. The findings suggest that the enhanced positive affect that consumers experience under the uncertain process (where consumers don’t know which gift they will receive till a later time) leads to higher valuations of the gift by the consumers. In addition, it is found that consumers’ pre-experience choice between a positive outcome with certainty (immediately knowing a specific gift has been won) and a positive outcome with two possibilities (only knowing which of the two free gifts has been won at a later time) do not affect their actual experience when they are subjected to similar certain or uncertain processes. Study 1B proceeds to examine the specific mechanism behind the positive relationship between positive affects and gift valuations and the findings suggest that affect transfer effect is more likely to account for the association as compared to affect misattribution effect. Finally, Study 2 deepens the examination of uncertainty effect by varying the levels of uncertainty via rarity as well as task effort, through a chance game and an effort game respectively in stimulating uncertainty. It is found that with the increase in rarity or effort investment, the consumers experience greater positive affects which subsequently leads to a higher valuation for the gift. The research ends with theoretical and managerial implications that arise from the findings as well as future research directions to expand this literature domain.