Impulsive Shopping Overseas: Do Sunk Cost, Information Confusion, and Anticipated Regret Have a Say?

Abstract

Building on three theoretical perspectives, Alchian–Allen theorem, sunk cost fallacy, and mental account theory, this study proposed and tested a model on Chinese outbound travelers’ impulse shopping behaviors as determined by sunk cost, information confusion, after-sale risk, and anticipated regret (both downward and upward). Using a sample of 314 Chinese outbound travelers, findings of the study suggested that sunk cost, after-sale risk, and downward anticipated regret significantly influence travelers’ impulsive shopping, with downward anticipated regret mediating the relationship between information confusion and impulsive purchase and between sunk cost and impulsive purchase. The study contributes to existing theories and literature for a better understanding of how sunk cost influences outbound travelers’ impulsive shopping behavior from three theoretical perspectives, particularly in a Chinese cultural context. The findings of the study also have important implications for destination stakeholders.