Is it risky to subscribe? Perceived control and subscription choice

Abstract

Abstract Subscription commerce is an integral part of today's consumption space. Researchers have identified different factors that influence subscription intent and different mechanisms that are used to evaluate subscription options. In this research, we investigate the effect of loss of perceived control on subscription intent and explore a new underlying mechanism used for the evaluation of subscription options. Across six studies in the field and laboratory, we show that when consumers lose their level of perceived control, they are likely to exhibit higher subscription intent for monthly subscription options than yearly subscription options, and we explain the mechanism through risk aversion. Particularly, we find that individuals experiencing loss of control are more likely to evaluate subscription options based on associated risk, and subsequently choose the option that appears less risky. Our findings contribute to the literature by identifying a novel risk‐based mechanism driving subscription choice and by finding a new consumer‐related antecedent of subscription choice in perceived control.

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