 |
[email protected] |
 |
3275638434 |
 |
 |
| Paper Publishing WeChat |
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
CHU Tiansi
TIAN Hui
Tumpoka Kabinga
ZHU Ruoqing
Full-Text PDF
XML 1458 Views
DOI:10.17265/2159-5542/2022.11.001
The Chinese University of Hong Kong, Shenzhen, China
Central South University, Changsha, China
Central South University, Changsha, China
The Chinese University of Hong Kong, Shenzhen, China
This paper explores the decision-making mechanism of the consuming behavior hidden behind the sudden popularity of the Oriental Selection Company in terms of the mental accounting theory. Firstly, according to the “Non-alternative” characteristics of mental accounting, this paper expounds how the strategy of the bilingual live-streaming of Oriental Selection promoters stimulates consumers’ desire to buy the advertised products and services whilst using the utility theory of mental accounting to analyze how Oriental Selection promoters improve consumers’ acquisition utility and total utility. Secondly, we sum up the successful experiences of Oriental Selection: The live-streaming industry should apply the theory of mental accounting in effectively overcoming the shortcomings of the live-streamed marketing by stimulating consumers’ desire and influencing their decision-making behavior through the streaming of content that triggers them to make purchases. This is achievable by abandoning the traditional ways of loudly urging consumers to buy goods. Finally, this paper puts forward some suggestions on how to use the mental accounting theory in promoting sustainable consumption and points out the prospects for Oriental Selection.
Oriental Selection, live-streaming, marketing, mental accounting theory, non-alternative characteristics, utility theory, consumer decision-making behavior
Psychology Research, November 2022, Vol. 12, No. 11, 879-889
Antonides, G., & Ranyard, R. (2017). Mental accounting and economic behaviour. In Economic psychology (1st ed.) (pp. 123-138). Retrieved from https://doi.org/10.1002/9781118926352.ch8
Antonides, G., Groot, I. M., & Raaij, W. (2011). Mental budgeting and the management of household finance. J. Econ. Psychol., 32, 546-555. Retrieved from https://doi.org/10.1016/j.joep.2011.04.001
Baghi, I., Rubaltelli, E., & Tedeschi, M. (2010). Mental accounting and cause related marketing strategies. International Review on Public and Nonprofit Marketing, 7(2), 145-156. Retrieved from https://doi.org/10.1007/s12208-010-0055-4
Bao, Z. (2021). Analysis on economic situation and marketing strategies of New Oriental Education. 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021). Guangzhou, China.
Chen, J., Han, Y., & Li, A. (2020). Research on the marketing strategy of online education—Taking new oriental as an example. Journal of Management Science & Engineering research, 2, 13-22. Retrieved from https://doi.org/10.30564/jmser.v2i2.1922
Chen, L., & Zhu, H. (2022). Behavior prediction based on a commodity utility-behavior sequence model. Machine Learning With Applications, 9, 100314. Retrieved from https://doi.org/10.1016/j.mlwa.2022.100314
Chudziak, S. (2022). On the sources of economic growth, structural consistency of agent-based models and mental-accounting consumer behaviour. Retrieved from http://dx.doi.org/10.2139/ssrn.4076896
Chudziak, S. P. (2022). Mental-accounting consumer framework. SSRN Electronic Journal.
Cowley, E. (2008). The perils of hedonic editing. Journal of Consumer Research, 35(1), 71-84. Retrieved from https://doi.org/10.1086/527267
Dwi, D., & Basuki, T. (2022). Financial literacy and mental accounting analysis of financial decisions and shopping interests in the COVID-19 pandemic era. JBFEM, 5, 1-12. Retrieved from https://doi.org/10.32770/jbfem.vol51-12
Evers. (2022). On the role of similarity in mental accounting and hedonic editing. Psychological Review, 129(4), 777–789. https://doi.org/10.1037/rev0000325
Evers, E., Imas, A., & Kang, C. (2021). On the role of similarity in mental accounting and hedonic editing. Psychological Review, 129(4), 777-789. Retrieved from https://doi.org/10.1037/rev0000325
Evers, E. R., Imas, A., & Kang, C. (2022). On the role of similarity in mental accounting and hedonic editing. Psychological Review, 129(4), 777.
Fan, Q. (2022). Research on customer relationship management in education and training institutions—Taking New Oriental Education and Technology Group Inc. as an example. World Scientific Research Journal, 8(8), 37-46.
Gilboa, I., Postlewaite, A., & Schmeidler, D. (2009). The complexity of the consumer problem and mental accounting (Discussion paper, Pinhas Sapir Center for Development, Tel Aviv University, 2009).
Goh, K., & Bockstedt, J. (2022). Transaction utility theory and the framing of multipart pricing of information goods. Retrieved from https://www.academia.edu/59288637/Transaction_Utility_Theory_and_the_Framing_of_Multipart_Pricing_of_Information_Goods
Grewal, D. (1998). The effects of price-comparison advertising on buyers’ perceptions of acquisition value, transaction value, and behavioral intentions. Journal of Marketing, 62, 46-59. Retrieved from https://doi.org/http://dx.doi.org/10.2307/1252160
Grinblatt, M., & Han, B. (2005). Prospect theory, mental accounting, and momentum. Journal of Financial Economics, 78(2), 311-339. Retrieved from https://doi.org/https://doi.org/10.1016/j.jfineco.2004.10.006
Group, N. O. E. T. (2020-2022). Finance reports and stock information. Retrieved from https://investor.neworiental.org/static-files/00e9af05-6530-4cf9-b89e-a928f4d7fc3e
Gupta, S. (2010). Value driven internet shopping: The mental accounting theory. Psychology and Marketing, 27(1), 13-35. Retrieved from https://doi.org/10.1002/mar.20317
Haghpour, B., Sahabeh, E., & Halvari, H. (2022). Opportunity cost in consumer behavior: Definitions, operationalizations, and ambiguities. International Journal of Consumer Studies, 46(5), 1942-1959.
Henderson, P., & Peterson, R. (1992). Mental accounting and categorization. Organizational Behavior and Human Decision Processes, 51, 92-117. Retrieved from https://doi.org/10.1016/0749-5978(92)90006-S
Ho, C.-I., Liu, Y., & Chen, M.-C. (2022). Factors influencing watching and purchase intentions on live streaming platforms: From a 7Ps marketing mix perspective. Information, 13(5), 239.
Investerplace. (2022). New Oriental Education (EDU) stock is jumping on live streaming news. Retrieved from https://investorplace.com/2022/06/why-is-new-oriental-education-edu-stock-up-again-today/
John, D. (2008). Behavioral finance and mental accounting. Retrieved from https://www.marottaonmoney.com/behavioral-finance-mental-accounting/
Köylüoğlu, S., Gümrah, A., & Saliha, U. (2020). Analysis of the effect of expectation theory on consumer behavior with the mental accounting dimension. Journal of Euromarketing, 1-2, 56-71.
Lee, E. (2022). New oriental finds success in e-commerce. Retrieved from https://technode.com/2022/06/13/chinese-education-giant-new-oriental-finds-new-success-in-livestream-e-commerce/
Lee, J. S. H., & Lee, J.-E. (2015). Moderating impacts of transaction utility on relationships among price, quality, and value. Journal of Foodservice Business Research, 18, 341-357. Retrieved from https://doi.org/10.1080/15378020.2015.1068671
Lehenkari, M. (2009). The hedonic editing hypothesis: Evidence from the Finnish stock market. The Journal of Behavioral Finance, 10, 9-18. Retrieved from https://doi.org/10.1080/15427560902719497
Lin, L. (2022). The impact of double reduction policy on K12 education and training enterprises: Case studies of new oriental and tomorrow advancing life. 2022 2nd International Conference on Enterprise Management and Economic Development (ICEMED 2022). Dalian, China.
Liu, Y. (2015). Marketing analysis for New Oriental Education & Technology Group Inc. (Bachelor’s thesis, UAS, 2015).
Liu, Z., Liu, T., & Mu, S. (2017). Mental accounting in decision-making for self versus others. Journal of Neuroscience, Psychology, and Economics, 10(2-3), 81-94. Retrieved from https://doi.org/10.1037/npe0000074
Luo, Y. (2022). The response of Chinese private education organizations to the “Double Reduction” policy: Evidence from New Oriental and TAL. 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022). Zhuhai, China.
Monga, A., Zor, O., & Siddiqui, R. A. (2022). The role of time in consumer psychology. In APA handbook of consumer psychology (pp. 413-428). Retrieved from https://doi.org/10.1037/0000262-017
Muehlbacher, S. (2019). Individual differences in mental accounting. Frontiers in Psychology. Retrieved from https://doi.org/10.3389/fpsyg.2019.02866
Muehlbacher, S., Kirchler, E., & Kunz, A. (2011). The impact of transaction utility on consumer decisions: The role of loss aversion and acquisition utility. Zeitschrift für Psychologie/Journal of Psychology, 219, 217-223. Retrieved from https://doi.org/10.1027/2151-2604/a000075
Oresky, M. (2019). Pricing of consumers and possibilities of using the theory of mental accounting in marketing. Retrieved from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3412049
Oriental, N. (2022). Fourth fiscal quarter report. Retrieved from https://investor.neworiental.org/static-files/00e9af05-6530-4cf9-b89e-a928f4d7fc3e
Osseiran, A. (2017). Mental accounting and public choice (Ph.D. thesis, University of Warwick, 2017).
Puspita, M., & Wardani, B. (2022). Mental accounting and business decision-making within SMEs: A COVID-19 pandemic phenomenon. Journal of Accounting and Strategic Finance, 5, 151-177. Retrieved from https://doi.org/10.33005/jasf.v5i1.228
Qiu, S., Wu, L., Yang, Y., & Zeng, G. (2022). Offering the right incentive at the right time: Leveraging customer mental accounting to promote prepaid service. Annals of Tourism Research, 93, 103367.
Rizal, S. (2017). Use of mental accounting in purchase decision making with reference to demographic characteristics of consumer. Retrieved from https://doi.org/10.13140/RG.2.2.30692.27520
Roy, S. (2021). A study on mental accounting: Its’ role in personal financial planning of households’. Academic Exhibition at Serampore College. Serampore College.
Sajeesh, S., & Song, S.-Y. (2017). Transaction utility and quality choice. Review of Marketing Science, 15. Retrieved from https://doi.org/10.1515/roms-2016-0030
Shukla, S. (2020). Prevalence of mental accounting in financial decisions: A literature survey. Amity Business Review, 21(2).
Sui, L., Sun, L., & Geyfman, V. (2021). An assessment of the effects of mental accounting on overspending behaviour: An empirical study. International Journal of Consumer Studies, 45(2), 221-234.
Thaler, R. (1983). Transaction utility theory. Advances in Consumer Research, 10, 229-232.
Thaler, R. (1985). Mental accounting and consumer choice. Marketing Science, 4(3), 199-214.
Thaler, R. H. (1999). Mental accounting matters. Journal of Behavioral Decision Making, 12(3), 183-206.
Thaler, R. H. (2008). Commentary—Mental accounting and consumer choice: Anatomy of a failure. Marketing Science, 27(1), 12-14.
Volkman, E. (2022). Why New Oriental education rose to fame on an awful day for the market. Retrieved from https://www.fool.com/investing/2022/06/13/why-new-oriental-education-rose-on-an-awful-day-fo/
Wang, F., & Wu, H.-B. (2019). Current situation analysis and development strategy research on educational live broadcasting technology based on SWOT theory in post-MOOC era. 2019 10th International Conference on Information Technology in Medicine and Education (ITME). Qingdao, China.
Wu, L. (2022). Dynamic pricing for dual-channel supply chain considering consumers with double-entry mental accounting. Mathematical Problems in Engineering, 2022, 1-13.
Xia, X. (2020). Network technology, teaching quality and learning interaction impacting learning satisfaction in New Oriental Online Education. Bangkok University. http://dspace.bu.ac.th/jspui/bitstream/123456789/4710/1/Xiaoqiong%20Xia%20IS-BU.pdf
Xiao, J. J., & O’Neill, B. (2018). Mental accounting and behavioural hierarchy: Understanding consumer budgeting behaviour. International Journal of Consumer Studies, 42(4), 448-459.
Yang, Y. (2019). Research on the relationship between product architecture and pricing: Take New Oriental Education & Technology Group as an example. 5th Annual International Conference on Social Science and Contemporary Humanity Development (SSCHD 2019). Wuhan, China.
Yuan, R., Liu, M., & Blut, M. (2022). What’s in it for you? Examining the roles of consumption values and Thaler’s acquisition—Transaction utility theory in Chinese consumers’ green purchase intentions. European Journal of Marketing, 56, 1065-1107. Retrieved from https://doi.org/10.1108/EJM-08-2020-0609
Zhang, C. Y., & Sussman, A. B. (2017). The role of mental accounting in household spending and investing decisions. In Client psychology (Chapter 6). New York: Wiley, Chicago Booth Research Paper (19-07).
Zhou, A. (2021). Effect of live streaming on consumer impulsive purchase behavior. Tourism Management and Technology Economy, 4(2), 44-48.