Defection from a service based on payment plan. Service providers often offer supplementary products related to their ongoing services (e.g., fitness centers offering fitness smartwatches for purchase). Are you more likely to defect from the service if you make a one-time lump sum payment or if you choose a multiple payment plan? Several designed studies to answer this question were presented in the Journal of Marketing Research (October 2019). In one study, 202 MBA students were told to assume they had enrolled in an 18-month cellular service plan that offered a $450 handset. Half were informed that they made a lump sum payment of $450 and half were informed that they are making multiple payments of $25 per month. Each MBA student reported their intentions to defect from the service on a 7-point Likert Scale, ranging from 1 (“not at all”) to 7 (“very much”). Summary statistics on the intention to defect scores are displayed in the table. n x s Single, lump sum payment 101