| Since China carried out trade-ins policy which is the full implementation of the old for new service of home appliances and car trade-ins2009, so far, trade activities become more and more market-oriented, a different way of trade stimulated consumer desire to buy to varying degrees. However, the operating mechanism and theoretical that support the research of Trade-ins policy relative insufficiency (Rao,2009). For consumers, the trade-ins process, mainly related to two issues which are the old product discounts and new product valuation. Based on the mental accounting theory in this study, the price valuation of the trade-ins old and new products is the key issue, and this issue determines whether consumer psychology account is open or close. So the purpose of this study is to find out the customers’price sensitivity and the degree of involvement on the new products by examining the trade-ins scenario is discount for old products and new product valuation, and when different individuals are facing with different new products.At present, China’s trade-ins behavior is mainly concentrated in home appliances, electronics, automotive and other industries. In2009, there are about57%in the United States by trade-ins behavior to’get a new car (Zhu,2008), according to the figures, there is a big gap between China and the United States and other developed countries in trade-ins market size and popularity. At the same time, trade-ins behavior had made a good recovery results form self-development to now, but the participation of industry is not only nationwide, and the appliances and electronic products have a small market. The car trade development to a local market mainly based on the car trade that can make use of the relevant policy platform, but appliances and electronics trade-ins are a new market behavior, and there is not provide a comprehensive research on market of home appliances, electronics, on the type of consumer and psychological understanding of depth and the support of other national policy is also limited to the larger cities of the home appliances, electronics ownership, meanwhile, the scope of support is not comprehensive enough. The former is companies do not realize the trade-ins behavior will give a positive impact on the market development,the latter shows that our current policies and systems still have some defects, and the companies can not actively participate in the trade-ins behavior.Overall, comparing to developed countries, China’s trade-ins market are in the early stage of development, as well as to be further developed and improved. In the literature, the Enterprise trade-ins research are mainly the following aspects, such as trade-ins transactions, at the same time consumers as the role of buyers and sellers, consumer concern is not just the net difference between old products and the new product, but also consumer concern into the individual transaction evaluation (Purohit,1995). Carmon (2000), people will consumers as buyers or sellers to study the trade-ins consumer behavior. The related study found that consumers may be reluctant to give up the old product that is innovative resist (resistance to innovation) behavior, even in the case of new products to meet their basic needs (Mick, Fournier of,1998; Mukherjee,, Hoyer,,2001; Ram, Sheth,1989; Tansuhaj, Gentry, John,1991; Simonson, Drolet,2001). Zhu (2008) from the transaction value of old products that sell old product off a psychological account. Domestic scholar Huang Jinsong and Sun Jianwei (2009) that the product replacement decisions, there is double the endowment effect, decision-making of consumers as buyers and as sellers of businesses in the consumer behavior of trade-ins.View of the domestic trade-ins market development as well as the results of research in related areas, this study attempts to put the basic theory of Economics-mental accounting theory into the field of marketing, or the field of consumer behavior more precisely, in the trade-ins scenario, to explore the different individual mental accounting change. So far, there is to explain consumers trade-ins behavior more rarely by the mental accounting theory and innovation diffusion theory, which is also the study of innovation.Theoretical and practical significance of this study are:First, the basic theory of economics-mental accounting theory introduces the field of consumer behavior. Mental accounting theory in the trade-ins transactions, not only enrich the mental accounting theory, expanded its range of applications, but also explain the internal impact mechanism for consumers to trade-ins consumer behavior from an economic point of view. Second, this study expands trade-ins consumer behavior research. And, previous literatures have less attention on consumers as both buyers and sellers, in addition, it provides a new research direction for related fields, guiding the proposal for the enterprise in real practice.On the basis of previous literature, this study proposes a theoretical framework and research model, to verify the theoretical hypothesis through an empirical model, and data analysis results are very significant. Content contains in this Institute are:First of all, this study breaks the previous literatures that had viewed consumers as a single buyers or sellers, but stands on the view consumers who are both the buyer and the seller, the using of the basic theory of Economics-mental accounting theory, this study explains the trade-ins internal mechanism consumer behavior. In the present study, we use a variety of research methods, including literature, expert, interview, and this study identify trade-ins theories of consumer behavior of through scientific research methods. Meanwhile,we find the point for the research object of research and innovation diffusion theory and the mental accounting theory.Secondly, based on the dynamic mental accounting theory and innovation diffusion theory, the existence of different advanced degrees in new product scenarios, this study reveals innovative consumer and conservative consumers price sensitivity and the degree of involvement of new products.Finally, through empirical study, the model was validated. In Experiment1, this study uses the A2*2experimental design,including old product discount prices of innovation and conservative and valuation of new products of innovator and conservative, validated trade-ins consumer to make themselves to set up mental accounts, and mental accounts set up by the different types of consumers is not the same., The price of conservative is higher than the innovator’s for discount valuation of the old product; for the valuation of new products, innovation’s is higher than the conservative’s. In the second experiment, we experiment a similar experimental design A2*2, and we use the introduction of the types of consumers and new products advanced variable to examine the intervention between conservative and innovator for more advanced products, as well as conservatives and innovators advanced degree of product involved in the degree of difference. The experimental results showed that:when there are different degree of advanced new products, the conservative of the degree of involvement of the low-advanced level of new product and price sensitivity is higher than the innovator, and innovative’s degree of involvement and price sensitivity of new products of the highly advanced level is higher conservative. In third Experiment, this study excludes the innovator, and verifies the degree of market diffusion of new products will affect the conservative willingness to buy, but the impact is positive.In this study,theoretical assumptions and empirical research have a very different innovation with the previous literature, this study will be described as follows:(1) Interdisciplinary of research areas. In this study, we put the economic theory-mental accounting theory into the field of consumer behavior that is the field of marketing actually. Mental accounting theory in the trade-ins transactions not only enrich the study of mental accounting theory, expanded its range of applications, but also explains the internal effects of sunk costs on the consumer trade-ins transaction behavior mechanism from an economic point of view.(2) The reality of research topics. The topics of this study is based on the domestic situation in China, on one hand with the development of high-tech, e-waste produce a great burden to the society and people’s lives, on the other hand, the government stimulate people’s consumption to expand domestic demand, and introduced a trade-ins policy. In this historical background, how the state guided the purchasing behavior of consumers, how businesses seize the opportunity and how to discern consumers redeem psychology of new product marketing play important roles in this study. So, this study has some practical significance based on mental accounting theory research on the psychology of consumer redemption.(3) The dynamic nature of the study. Throughout the study of literature at home and abroad, most are concentrated in the consumer only as a seller or buyer, and rarely in the consumer both the seller and the buyer’s situation. This study proposed the impact of the intervention and price sensitivity of consumers on new products advanced degree by means of innovation diffusion theory. This study attempts to look for another breakthrough and makes a theoretical contribution to the further study for the trade-ins behavior. |
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