Object Valuation and Non-Ownership Possession: How Renting and Borrowing Impact Willingness-to-pay

Charan K Bagga, Neil Bendle, June Cotte

Research output: Contribution to journalArticle

5 Citations (Scopus)
25 Downloads (Pure)

Abstract

Prior research on object valuation ignores the effect of non-ownership physical possession types such as renting and borrowing. Evidence from four experiments demonstrates that the valuation (i.e., willingness-to-pay) for rented objects is greater than the valuation for non-possessed or borrowed objects. Borrowed objects are not valued any differently than non-possessed objects. Psychological ownership mediates the relationship between valuation and non-ownership physical possession. Additionally, psychological ownership varies for different possession types (ownership, renting, and borrowing) as its contributing routes (control, self-investment, and knowledge) operate differently for each possession type. As further evidence of the psychological ownership based theoretical account, the research shows that rented objects are not valued higher than non-possessed objects if the control or self-investment routes of psychological ownership are suppressed. The moderating influence of product hedonism–utilitarianism and consumers’ tightwad–spendthrift tendency on the valuation of rented and borrowed objects is also examined
Original languageEnglish
Pages (from-to)1-21
JournalJournal of the Academy of Marketing Science
Early online date2 Aug 2018
DOIs
Publication statusE-pub ahead of print - 2 Aug 2018

Keywords

  • Object valuation
  • Renting
  • Borrowing
  • Psychological ownership
  • Endowment effect

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