Consumer Decisions to Rent Vs. Buy

Anastasiya Pocheptsova, Yale University
Ran Kivetz, Columbia University
Ravi Dhar, Yale University
Consumers frequently choose options that provide extended streams of consumption. We propose that there is a congruency between the decision process and perceived length of consumption. A long-term use of a product (i.e. purchase) leads to a different decision mindset (and evaluation criteria) compared to a temporary use of a product (rental). In a series of studies we show that a more stringent evaluation in the case of multiple-use (purchased) goods leads to lower purchase likelihood compared to equally priced single-use (rental) of the same product.
[ to cite ]:
Anastasiya Pocheptsova, Ran Kivetz, and Ravi Dhar (2008) ,"Consumer Decisions to Rent Vs. Buy", in NA - Advances in Consumer Research Volume 35, eds. Angela Y. Lee and Dilip Soman, Duluth, MN : Association for Consumer Research, Pages: 76-79.