©Society for Business and Management Dynamics Sunk Cost Effects on Consumer Choice

This research reports results from an experiment on the effect of sunk costs and brand violations on consumer choice. Participants were randomly assigned to one of six hypothetical scenarios where sunk cost magnitude, consumer-brand relationship violation, and availability of product alternatives were experimentally manipulated. Consumer choice, consumer loyalty, and consumer-brand relationship strength were assessed upon completion of the manipulation. There was evidence that high sunk cost manipulations resulted in attitudinal and behavioral change across the consumer-brand relationship and product alternative dimensions. This research adds to a literature on factors influencing consumer decision making and the consumer-brand relationship. Future directions are discussed.