Cumulative impact neglect in processing sequential changes

We demonstrate that decision contexts that involve sequential numerical changes over time can lead to suboptimal consumer choices in both incentivized and hypothetical studies. This is because, for such changes, an earlier outcome has a cumulative effect on the final total, which consumers tend to ignore. We document the prevalence of consumers' tendency to neglect this cumulative impact when processing sequential rent increases and price discounts as consumers focus on the naïve totals and trends formed by the consecutive price changes and choose economically inferior options. We propose a nudge that helps alert consumers about the cumulative effects and decrease their tendency to fall prey to this bias. We discuss the theoretical contributions as well as the implications for consumers, managers, and policymakers.     

In Defense of Consciousness: The Role of Conscious and Unconscious Inputs in Consumer Choice

Although the argument that unconscious inputs are often key determinants of consumer decision making is compelling, it may be overstated, particularly with respect to choice. A comparison of the effect of conscious inputs (e.g., the attributes of options in the choice set) and unconscious inputs (e.g., a seemingly irrelevant observation or task) indicates that the former have a significant advantage. In particular, the impact of conscious inputs is supported by choice task norms and is less susceptible to being lost in the “noise” that is characteristic of most natural consumer environments (e.g., stores). Indeed, although consumers often have limited insight into influences and processes producing their choices, the assumption that consumers base their choices on conscious, willful evaluation of task‐relevant inputs has been quite successful in explaining a wide range of phenomena. It is expected that future research will put greater emphasis on the interactions between conscious and unconscious influences on decision making.     

Asserting your mind: Interruptions extremize consumer choices

Interruptions prevail in the retail environment, especially during consumer decision-making. However, scant research has examined whether and how interruptions that suspend decisions affect consumer choices. We posit that interruptions heighten the consumers' preference certainty, which leads to a choice extremity effect—consumers choose their preferred products even more and their unpreferred products even less. Six experiments provide convergent evidence for the choice extremity effect and the underlying process. Study 1a shows that interruptions lead to choice extremity with a vice product (i.e., chips). Study 1b confirms the effect in the context of incentive-compatible choices. Study 2 replicates the choice extremity effect with a virtue product (i.e., yogurts). Study 3 further tests the robustness of the effect with a decision-related interruption. Study 4 shows that preference certainty mediates the effect of interruptions on choice extremity and rules out the level of arousal and task involvement as alternative accounts. Using a moderation approach, Study 5 shows that the choice extremity effect disappears when consumers have high self-concept clarity. The present study contributes to research on interruptions, preference certainty, and consumer choices and provides implications for marketers.     

Go big or go home: Risk seeking for experiential choices

In decision making under risk, do consumers evaluate intangible, experiential options in a choice set in the same way they evaluate tangible, material options? Prior research on prospect theory, typically using either monetary or material objects as choice options, demonstrates that consumers are risk averse for choices involving gains, with a fairly robust tendency to favor a more certain outcome even when that outcome is less desirable. The present research focuses on decision making under risk for experiential options (from movies to concert tickets to hotel stays)—identifying choices between experiential options as a realm in which prospect theory's pattern of risk aversion is weakened and sometimes reversed. Across six studies, this research demonstrates that consumers are more risk seeking for experiential choices and thus more likely to prefer more desirable options, even options that are less certain. Further, the stronger personal connection fostered by experiential (vs. material) choice options mediates risk‐seeking preferences. This work demonstrates a moderator for prospect theory and investigates the tendency toward increased risk seeking among experiential options, in this paper termed a “go big or go home” strategy. Conversely, consistent risk aversion is evidenced for choices involving material options (from clothing to accessories and furniture).     

Exerting Self‐Control ≠ Sacrificing Pleasure

Self‐control is a prominent topic in consumer research, where it is often conceptualized as the abstinence from hedonic consumption. We examine whether this conceptualization accurately captures consumers’ experiences of self‐control conflicts/failures in light of seminal self‐control theories in economics and psychology. Rejecting that notion, we argue that self‐control failures are choices in violation of superordinate long‐term goals accompanied by anticipated regret, rather than choices of hedonic over utilitarian consumption. This conceptualization has important methodological, theoretical, and practical implications. Methodologically, it highlights the need for experimental paradigms with higher construct validity. Theoretically, it helps elucidate how self‐control is distinct from impatience and self‐regulation. Practically, it provides a rich set of implications for deducing interventions on the individual and public policy level to help consumers exert self‐control.     

The impact of the opinions of others on variety‐seeking behavior

One reason for consumer variety‐seeking behavior is interpersonal motivation. Building on previous theories, we suggest that the different information types of interpersonal sources influence the variety‐seeking behavior of individuals. Two laboratory experiments are conducted to examine the influence of the opinions of others on such behavior. The results support the author's contention that to derive more enjoyment from a shared product, an individual will make choices congruent with the opinions of others in online information. The managerial implications and study limitations are also discussed.     

Ceding and Succeeding: How the Altruistic Can Benefit from the Selfish in Joint Decisions

We examine how the interplay of two partners’ interpersonal orientations (selfish vs. altruistic) in a decision‐making dyad impacts the extent to which the joint decision matches each partners’ individual a priori preferences. Two experiments, in which we manipulate and measure interpersonal orientations, as well as examine real consumption decisions, demonstrate the benefit of mismatching interpersonal orientations (selfish‐altruistic) in dyadic decisions. Specifically, altruistic and selfish consumers reach joint decisions that better reflect their individual preferences when working with a partner who has the opposite interpersonal orientation (heterogeneous dyad) versus a matching one (homogeneous dyad). Initial evidence suggests that this effect occurs because homogeneous dyads are more prone to engage in negotiation (communication that involves departure from one's initial position to a mutually serving position) than heterogeneous dyads. This leads homogeneous dyads to focus more on equally preferred options than on their own most preferred options, which pushes them further down both partners’ preferences lists. This research contributes to the literature on joint decision making and has important implications for consumer well‐being.     

How valuable is a well‐crafted design and name brand?: Recognition and willingness to pay

Preferences for similarly designed consumer products, evaluated blind and branded and also with and without prices, were tested in a consumer setting. The consumer's perceptual experience led to preference of the well‐crafted high‐priced option. This preference was enhanced by priming consumers with background information about the brand, perhaps causing the subjects to guess which choice was the well‐known brand before evaluation. Preferences for that choice increased again when brand names were visible during evaluation. When actual prices were added to the evaluations, preferences for the well‐known brand were very robust to high prices, indicating the strength of the brand name. Using the least preferred option and the lowest price as an anchor, the consumers' price threshold to pay for the preferred design and the brand name was computed. Attempts to explain and predict individual differences of choices using measures of inherent design acumen, prior experience, and purchasing behavior were largely unsuccessful. Copyright © 2011 John Wiley & Sons, Ltd.     

质量还是价格?折衷产品缺货情境下的消费者选择

基于情境效应和决策冲突理论, 通过三个实验探讨折衷产品选项的不可得如何影响消费者对余下可得产品的偏好。研究结果表明, 折衷商品不可得对余下商品的吸引力呈现非对称性的影响。以质量和价格产品属性的购买情境为例, 中等价格中等质量商品的不可得将显著提升低价格商品的吸引力(实验1), 其原因在于折衷方案不可得显著提高了消费者的决策冲突, 高水平的决策冲突导致决策者偏好具有确定性优势的选项, 规避优势存在模糊性的选项。随着质量属性模糊性的降低(提供专家评价, 实验2; 消费者专业知识较强, 实验3)或提高(质量存在波动范围, 实验2), 折衷商品不可得效应相应减弱或加强。     

The Sounds of Silence: Inferences from the Absence of Word‐of‐Mouth

While past work has explored some of the reasons why people themselves may remain silent in a group, almost no research has examined the mirror image of this question: How do consumers construe the silence of others? Do they project the opinions of the speakers in a conversation onto the silent individuals, assuming that silence signals agreement? Do they have a usual or “default” naïve theory of silence that they use to explain it across multiple contexts—i.e., “silence usually signals disagreement?” Or does silence act as a mirror, reflecting observers’ own opinions back at them? Three experiments contrasted perceivers’ estimates of conversational silence with their estimates of unknown opinions outside the conversation. Estimates of opinions outside the conversation generally followed an agreement‐with‐the‐speakers rule—the more an opinion was expressed in the group, the more consumers assumed others would support it too. In contrast, silence inside the conversation was interpreted very differently, serving as a mirror for participants’ own thoughts, even when the vocal majority favored the opposite position. Results suggest a process whereby observers project the reason they personally would have been silent in the group (given their opinion) onto silence, leading to an inference that the silents agree with the self.     

The pursuit of optimal distinctiveness and consumer preferences

He, L., Cong, F., Liu, Y. & Zhou, X. (2010). The pursuit of optimal distinctiveness and consumer preferences. Scandinavian Journal of Psychology, 51, 411–417. This article investigates the effect of optimal distinctiveness on consumer product consumption. The authors argue that consumers acquire and display material possessions to restore their optimal levels of distinctiveness. Results showed that placing consumers in a state of low distinctiveness increased desire to acquire distinctive products, whereas perceptions of high distinctiveness reduced desire to acquire such products. Consumers’ desire for distinctiveness‐related products held true for various consumer choices, including willingness to pay more for limited‐edition products and preference for unpopular gifts. This finding has implications for understanding consumer choice in expressing identity.     

Guess Who Buys Cheap? The Effect of Consumers’ Goal Orientation on Product Preference

The current research examines how goal orientation affects consumer preference among products with different prices. We argue that a less expensive product may have not only lower perceived quality but also greater perceived quality variability. This greater perceived variability provides the opportunity for optimistic, promotion‐oriented consumers to overestimate the quality of the less expensive product. This effect is weaker, however, for a more expensive product that consumers perceive to have less quality variability and which thus provides less room for quality overestimation. As a result, we hypothesize that promotion‐oriented consumers, as compared to prevention‐oriented consumers, will demonstrate a stronger preference for a less expensive product. In a field study and two laboratory experiments, we obtain empirical support both for the hypothesized effect of consumers’ goal orientation on their product preference and for its underlying process. We conclude with a discussion of the theoretical and practical implications of our results.     

Using the Internet to investigate consumer choice spaces

Traditional investigations of consumer choice processes include a matrix of alternatives described by attributes. The researcher-createdmatrix presents a product option space for the participant. In this article, we propose an alternative methodological approach to consumer choice processes. Specifically, we investigate choice processes when a participant creates his/her own product space. We describe a Web-based program and methodology used to collect data for three customizable products. Empirical results indicate that consumers are willing and able to make choices from their own product space. This research provides a new avenue for exploring choice processes.     

Brand (in)fidelity: When Flirting with the Competition Strengthens Brand Relationships

We document the existence and consequences of brand flirting: a short‐lived experience in which a consumer engages with and/or indulges in the alluring qualities of a brand without committing to it. We propose that brand flirting is exciting, and that when consumers flirt with a brand other than their typically preferred brand in the same product category, they can transfer this excitement to their preferred brand—resulting in even greater love and desire for it. Consistent with this conceptual account, we demonstrate that this brand flirting effect is mediated by excitement. Moreover, the brand flirting effect is most likely to emerge under conditions that facilitate arousal transfer: when consumers are highly committed to their preferred brand, and when the brand with which consumers flirt is similar to their preferred brand.     

An ethnographic study of consumer financial sophistication

Existing research profiling consumer financial sophistication has examined specific decision errors that consumers may make in financial matters. While these errors have been replicated in multiple studies over the years, most have emerged from highly controlled experimental settings or through consumer surveys that measure only specific categories of financial behavior. This paper extends existing research on financial sophistication by utilizing an ethnographic study conducted over a 5‐year time period. Results indicate that while some of the traditional categories of decision errors defined in earlier research affect consumers, decision errors not thoroughly examined in previous academic studies can have a notable and growing effect on consumers' financial decisions. Emerging categories of financial decision errors are identified, and shifts in consumers' financial behavior resulting from the financial crisis are profiled. Copyright © 2014 John Wiley & Sons, Ltd.     

The Phantom Decoy Effect in Perceptual Decision Making

A phantom decoy is an alternative that is superior to another “target” option but is unavailable at the time of choice. In value‐based decisions involving phantom decoys (e.g., consumer choices), individuals often show increased preference for the similar, inferior target option over a non‐dominated competitor alternative. Unlike value‐based decisions that are driven by subjective goals, perceptual decisions typically have an outside criterion that defines the goal of the task (e.g., target is present or absent). Despite their obvious differences, past research has documented a number of commonalities between both types of decisions. In a set of three experiments, we examine the influence of phantom options on simple perceptual decisions and point out a critical difference between perceptual and value‐based decisions. Our results show that in perceptual choice, participants prefer competitor options to target options, the opposite of the pattern typically found in consumer choice. We use the results of the experiments to examine the predictions of four different models of context effects including loss aversion and dynamic, preference accumulation models. We find that accumulation models provide the best explanation for our results as well as being able to generalize to other context effects. Copyright © 2015 John Wiley & Sons, Ltd.     

Is the Implicit Association Test a Valid and Valuable Measure of Implicit Consumer Social Cognition?

This article discusses the need for more satisfactory implicit measures in consumer psychology and assesses the theoretical foundations, validity, and value of the Implicit Association Test (IAT) as a measure of implicit consumer social cognition. Study 1 demonstrates the IAT's sensitivity to explicit individual differences in brand attitudes, ownership, and usage frequency, and shows their correlations with lAT‐based measures of implicit brand attitudes and brand relationship strength. In Study 2, the contrast between explicit and implicit measures of attitude toward the ad for sportswear advertisements portraying African American (Black) and European American (White) athlete–spokespersons revealed different patterns of responses to explicit and implicit measures in Black and White respondents. These were explained in terms of self‐presentation biases and system justification theory. Overall, the results demonstrate that the IAT enhances our understanding of consumer responses, particularly when consumers are either unable or unwilling to identify the sources of influence on their behaviors or opinions.     

The Consequences of Individual Consumption: A Defence of Threshold Arguments for Vegetarianism and Consumer Ethics

As a moral foundation for vegetarianism and other consumer choices, act consequentialism can be appealing. When we justify our consumer and dietary choices this way, however, we face the problem that our individual actions rarely actually precipitate more just agricultural and economic practices. This threshold or individual impotence problem engaged by consequentialist vegetarians and their critics extends to morally motivated consumer decision‐making more generally, anywhere a lag persists between individual moral actions taken and systemic moral progress made. Regan and others press just this point against Singer's utilitarian basis for vegetarianism; recently Chartier criticizes act‐consequentialist vegetarianism by identifying many factors weakening the connection between individual meat purchases and changes in animal production. While such factors are relevant to act‐consequentialist moral reasoning, I argue, they need not defeat the act‐consequentialist case for vegetarianism and consumer ethics. This is shown by offering a probabilistic account of the threshold issue and discussing the positive and negative role‐modelling effects of our morally motivated dietary and consumer choices.     

The Aggregated Extremes Effect: Not All Routes to “Balanced” Bundles are Equally Appealing

Prior research establishes that consumers are averse to extreme options, but what does a “moderate” option look like in the context of choices among bundles of items, such as investment portfolios or product assortment packs? We propose that for bundles, two paths to creating risk and reward balance exist: a “bundle‐of‐pure‐moderation” with all moderate‐risk–moderate‐reward (moderate RR) components and a “bundle‐of‐extremes,” composed of equal numbers of extreme high‐risk–high‐reward (high RR) and low‐risk–low‐reward (low RR) components. We show that consumers have stronger preference for the balanced bundle when composed of a bundle‐of‐extremes rather than a bundle‐of‐pure‐moderation, even when equated on expected value, a phenomenon we term “the aggregated extremes effect.” This effect occurs across different choice set configurations and across multiple domains. Additionally, this effect is eliminated among consumers who view the high RR and low RR components as incompatible, as this undermines the perceived attractiveness of the bundle‐of‐extremes. Finally, this effect is also eliminated by exposing consumers to a depiction of potential outcomes, such that consumers can better perceive the risk reduction upside of a bundle‐of‐pure‐moderation.     

Social representation and social identity in the black sheep effect

This study tests a new integration of central core theory with subjective group dynamics theory. Specifically, we hypothesized that the type of opinions shared within a group (central vs. peripheral; i.e. central core theory) can moderate the typical processes of the black sheep effect (i.e. subjective group dynamics theory). Our study focused on students expressing opinions with regard to their social representation of studying. We predicted that an in‐group member expressing an opinion against central opinions of the group (but not against peripheral ones) would be judged more negatively than an out‐group member expressing the same opinion. In line with central core theory, the results showed that central opinions, but not peripheral opinions, lead to the typical processes of the black sheep effect. Our findings show that the central elements of a social representation are key to defining the social identity of a group. Future research should thus focus on understanding the socio‐representational nature of cognitions involved in intra‐group and inter‐group relations.