Is it Risky to Subscribe? Perceived Control and Subscription Choice
By Arani Roy, Maria Ortiz
Psychology & Marketing | November 2022
DOI
onlinelibrary.wiley.com/doi/10.1002/mar.21759
Citation
Roy, Arani., Ortiz, Maria. Is it Risky to Subscribe? Perceived Control and Subscription Choice Psychology & Marketing onlinelibrary.wiley.com/doi/10.1002/mar.21759.
Copyright
Psychology & Marketing, 2022
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Abstract
Subscription commerce is an integral part of today's consumption space. Researchers have identified different factors that influence subscription intent and different mechanisms that are used to evaluate subscription options. In this research, we investigate the effect of loss of perceived control on subscription intent and explore a new underlying mechanism used for the evaluation of subscription options. Across six studies in the field and laboratory, we show that when consumers lose their level of perceived control, they are likely to exhibit higher subscription intent for monthly subscription options than yearly subscription options, and we explain the mechanism through risk aversion. Particularly, we find that individuals experiencing loss of control are more likely to evaluate subscription options based on associated risk, and subsequently choose the option that appears less risky. Our findings contribute to the literature by identifying a novel risk-based mechanism driving subscription choice and by finding a new consumer-related antecedent of subscription choice in perceived control.

Arani Roy is an Assistant Professor of Marketing at the Indian School of Business (ISB). His research interest lies in the area of self-discrepancies.  Specifically, his work explores how feelings of not having enough resources and control in life affect an individual’s decision-making. He investigates the impact of self-discrepancies in relevant consumption contexts, such as privacy behaviour, likelihood of local consumption, and subscription choices. 

His teaching interests include Brand Management, Consumer Behaviour, Principles of Marketing, and Digital & Social Media Marketing. He has previously taught the ‘Principles of Marketing’ course at McGill University. Professor Roy completed his PhD from McGill University, Canada. He currently teaches Brand Management at ISB.

Arani Roy (1)
Arani Roy