Does your holiday list include items that have a steep learning curve — musical instruments, video games, cameras, drones, phones, etc.? Research shows renting the gift may increase the likelihood it is used long after the decorations are taken down.
Dr. Dustin Harding, marketing professor in the Woodbury School of Business at Utah Valley University, in collaboration with researchers at The City University of New York, Yeshiva University, and the University of California, Riverside, found renting a product (as opposed to purchasing it) boosts confidence levels, and consequently increases the likelihood the person uses their newly acquired item.
“As a whole, we found that renting not only increased confidence but also increased the likelihood of using a product, following a company’s webpage, signing up for email lists, and linking with the company on social media. In addition, renters were more likely to go to the store to upgrade their product and purchase accessories. These are all indicators that people are learning and keeping up with a product,” Harding said.
Why does it make a difference?
“It turns out that when estimating their own skill level, renters compared themselves to other renters and assumed the other renters weren’t very skilled. This comparison increased a new renter’s confidence level, because they thought they were better than most, which also increased their intention to keep using the product,” Harding said. “Purchasers, on the other hand, compared their own abilities to the abilities of other owners, who they thought were highly skilled. This comparison made the new purchasers feel relatively less skilled and decreased their desire to use the product.”
Based on his findings, Harding suggests it’s best to rent a product until you’ve gotten over that initial learning curve, then make the purchase. It will save money in the long run. There could also be short-term savings. “During the holidays we often buy Christmas presents when the prices are at their highest. Instead, we could rent and go through the learning curve while also researching what we really want. You can buy at a better time, outside of the holiday season.”
There are several websites where renting gifts is an option, and most music stores have a rent-to-own option.
The paper, “The Impact of Acquisition Mode on Expected Speed of Product Mastery and Subsequent Consumer Behavior,” is published in the Journal of Consumer Research.
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