When Online Subscription Services Are Attractive: A Construal Level Perspective

Today’s online subscription marketplace is experiencing tremendous growth, with some estimates suggesting this exceeding a $1 trillion-dollar global market in the coming few years. Our research investigates how people perceive online subscription services from a construal-level perspective. We propose that a construal match may exist between the various characteristics of the subscription itself and how it may be advertised, potentially resulting in perceptions of a more attractive offer. Our results are novel. We first demonstrate that a monthly (annual) payment schedule or a bundle of subscription products perceived as substitutes (complements) elicit lower (higher) construal mindsets. When these are paired together, either with a congruent ad copy (e.g., a low versus high construal ad) or congruent subscription characteristics (e.g., a monthly bundle of substitutes or annual bundle of complements), the result is more favorable consumer evaluations and intentions. Our results suggest this effect may be more pronounced for low-construal conditions and less so for high-construal conditions. We also provide evidence that perceived fit and positive affect may be potential underlying mechanisms explaining these effects but may differ in their relative importance depending on subscription type. A number of theoretical and practical implications arise from our findings.

Two data files (Study 1 and Study 2) accompany this research to test hypotheses H2, H5, H6, and H7.

H1a: A monthly subscription is processed at a low-level construal.
H1b: An annual subscription is processed at a high-level construal.
H2: A match (vs. a mismatch) between the subscription type (monthly vs. annual) and the construal level of the advertising message (low vs. high) will lead to more positive evaluations and intentions.
H3a: A subscription bundle offering similar subscription services is perceived as offering substitutes.
H3b: A subscription bundle offering dissimilar subscription services is perceived as offering complements.
H4a: A subscription bundle offering substitutable services is processed at a low-level construal.
H4b: A subscription bundle offering complementary services is processed at a high-level construal.
H5: A match (vs. a mismatch) between the subscription type (monthly vs. annual) and the subscription bundle (substitutes vs. complements) will lead to more positive evaluations and intentions.
H6: The effect of the match between the subscription plan (monthly vs. annual) and the construal level (low vs. high) of the advertisement copy on consumer evaluations is mediated by a) perceived cognitive fit and b) positive affect.
H7: The effect of the match between the subscription plan (monthly vs. annual) and the bundle type (substitutes vs. complements) on consumer evaluations is mediated by a) perceived cognitive fit and b) positive affect.