A consumer might respond to a negative incentive because it could be a chance to:

A consumer might respond to a negative incentive because it could be a chance to:

a. purchase a very popular item.

b. avoid additional charges.

c. buy a good at a cheap price.

d. take advantage of a sale.

Answer: b. avoid additional charges.

Negative incentive is therefore a term indicating a kind of repellent or a discouragement to a specific type of action. In the framework of consumer motivations, negative incentive might refer to a service charge, extra charge, penalty or something similar that is charged from the consumer in the event of exercising a certain action or in case the certain conditions are not met.

A consumer might have a negative incentive because it simply gives them an opportunity to avoid and spare themselves from further costs. For instance, a consumer may wish to avoid a late payment fee and thus make a payment on time or maybe avoid paying a paper statement fee by doing away with a paper statement. This way by responding to the negative incentive the consumer is able to avoid additional costs to her or his budget and as a result the consumer’s goal of reducing costs and maximizing savings is attained.