Seminar (Dept. of Marketing)

Title: Effort Begets Business:On the Effectiveness of Appreciation Letters in Inducing Repeat Purchase

Speaker: ZheshuaiYang（Zhejiang University）

Time: 10：00-11：30，November 22nd(Wednesday), 2023

Venue: Room 1008, Mingde Business Building

Language: English

Abstract：

Consumers tend to switch frequently between online retailers. To boost repeat purchases, retailers employ a variety of strategies. One readily implementable approach involves enclosing an appreciation letter in the shipping package. This research investigates the effectiveness of this practice. A two-wave laboratory experiment found that handwritten letters significantly increased the likelihood of repeat purchases compared to printed letters or no letters, as they signalled to consumers a higher level of effort from seller. Another experiment further demonstrated the role of perceived seller effort by showing that letters with less-refined calligraphy exerted a stronger influence than aesthetically pleasing ones, because consumers inferred that the former conveyed sellers’ personal effort, while the later appeared to be a professional persuasion tactic and crafted by external hires. The results of a randomized field experiment that tracked the actual purchases of 2000 consumers over six months mirrored the laboratory findings. Handwritten letters, particularly those signalling the seller’s personal effort, effectively boosted repeat purchases.  

Short biography：

Dr. Zheshuai Yang received his Ph.D. in Marketing from the National University of Singapore. He is currently an assistant professor in the Department of Marketing, School of Management, Zhejiang University. His main research areas include individual creativity, customer loyalty, and the application of high technology in marketing. His articles have been published in the Journal of Personality and Social Psychology, and he is currently leading a National Natural Science Foundation of China (NSFC) project entitled "Research on the Impact and Mechanisms of Mobile Payments on Consumer Social Interaction and Purchase Decisions". He also serves on the editorial board of the Journal of Personality and Social Psychology.