Abstract:

This research examines the effect of temporal landmarks on consumers’ positive illusions and preference for risky new products. Across three studies, we show that ending temporal landmarks reduce consumers’ positive illusions (studies 1 and 2). The underlying process is psychological resource depletion; that is, ending temporal landmarks enhance perceptions of psychological resource depletion, thus leading to lower positive illusions (study3). Furthermore, the decrease in positive illusions will lead consumers to less prefer risky new products (study3).

Key words: Temporal Landmarks, Positive Illusions, Psychological Resource Depletion, Preference for Risky New Products