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

Previous research has focused primarily on affect generated from counterfac tual thinking after decisions have been made. The current study, in contras t, examined how predecision mental simulations (prefactuals) and feelings o f anticipated regret are affected by different marketing strategies. A prel iminary investigation found that consumers frequently produce upward prefac tuals (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 pr oviding price guarantees would reduce upward prefactual generation and redu ce anticipated regret. The primary investigation supported these prediction s. 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. Im plications for mental simulation, marketing, and judgment and decision maki ng are discussed. (C) 2000 John Wiley & Sons, Inc.