Profits and halos: The role of firm profitability information in consumer inference

Three experiments investigated the consequences of the presence of information that a manufacturing firm is profitable on consumers' judgments of the firm and the consequences for perceptions of advertising, products, and choice intention. When profitability is present in the advertising context, consumers form more favorable advertiser judgments, which drive perceptions of greater advertisement credibility, which lead to more favorable product inferences, and ultimately stronger purchase intentions. The third experiment additionally shows that profitability information interacts with a warranty to drive judgments and choice. The implication of our findings is that firms should consider highlighting their profitability to enhance advertising effectiveness.     

Selective versus comparative processing

Simonson et al. (forthcoming) propose a new theory of comparison selection that explains which particular alternatives will be considered in a wide variety of judgment and choice tasks. Comparison selection depends on the latitude of acceptance, comparison fluency, and the interaction between these factors. Importantly, these factors integrate a wide variety of seemingly unrelated variables, and the theory is useful for generating novel hypotheses. However, because comparative processing occurs relatively infrequently, it is important to take a step back and specify the conditions under which comparative processing is likely to occur. Comparative processing is likely only when the motivation and the opportunity to process information carefully are high, when consumers lack knowledge about distributional standards, or when stimulus-based judgment is likely. The two types of processes have different antecedents, consequences, and implications for debiasing.     

Contextual Influences on Omission Neglect in the Fault Tree Paradigm

Fault trees are used to organize potential causes of a problem to facilitate better judgments about potential problem solutions. However, fault trees can lead to biased judgments because decision makers tend to overestimate the likelihood of problem causes that are explicitly mentioned in the fault tree and underestimate the likelihood of problem causes that are not. In this research, we examined the impact of context information and need for cognitive closure on these estimates. In 2 experiments, participants with a low need for cognitive closure used the informational content of experimenter provided and self‐generated context information as a basis for making likelihood estimates. In contrast, participants with a high need for closure did not use experimenter provided context information at all but used the ease of producing self‐generated context information (rather than informational content) as a basis for their likelihood estimates.     

Comparative Advertising: Effects of Structural Alignability on Target Brand Evaluations

Structural alignability refers to the readiness with which the attributes of one brand can be mapped on to those of another brand. Across three experiments, we show that as alignability in comparative advertising decreases, advertising‐induced target brand evaluations also decrease. This effect is explained by the extent to which assumptions about attribute comparisons are needed. We further show that the effect of alignability on evaluation is moderated by the need for cognitive closure, an individual difference variable that influences preferences for easy comparison and less ambiguity. Although prior research has treated alignability as a dichotomous variable (present or absent), the research presented here suggests that there are different types of (non)alignability comparisons.     

A Multistage,Multiprocess Analysis of Consumer Judgment: A Selective Review and Conceptual Framework

Although numerous dual‐process models have been brought to bear on the cognitive operations that underlie consumer judgment, they are typically limited in their ability to capture the processes that occur at different stages of cognitive activity and to specify how these processes interface. In many (if not most) cases, a mix of both automatic and controlled processes underlies judgments and decisions. We suggest a theoretical framework that potentially provides an integration of these processes and review representative research and theory that might be conceptualized in terms of this framework.     

The Less the Public Knows the Better? The Effects of Increased Knowledge on Celebrity Evaluations

Celebrities are figures that people like a lot but know little about. Two experiments investigated how celebrity evaluations are affected by increased knowledge. In Experiment 1, heightened knowledge of the political orientation, faith, and social attitudes of two prominent actors led to less favorable evaluations and greater differentiation in the evaluations of the actors along political and gender lines. In Experiment 2, increasing participants' cognizance of their limited knowledge of popular entertainers led to less positive evaluations and diminished credibility of the celebrities as spokespersons. The findings suggest that increasing knowledge and meta-knowledge of celebrities may diminish their marketability.     

The role of idiosyncratic attribute evaluation in mass customization

The growing use of mass customization necessitates an understanding of consumers' evaluations of mass customization platforms. We hypothesize that consumers' objective and subjective knowledge of the customized product moderate the influence of idiosyncratically evaluated (i.e., personalizable) attributes on satisfaction with a customization platform. Consistent with our theoretical framework, results from three experiments show that offering greater variety in idiosyncratically evaluated attribute options increases consumers' satisfaction to a greater extent for: (1) novices than experts (2) consumers with more subjective knowledge, and (3) miscalibrated consumers whose subjective knowledge does not match their objective knowledge, than calibrated consumers whose subjective and objective knowledge match.     

Consumer Inference: A Review of Processes,Bases, and Judgment Contexts

Because products are rarely described completely, consumers often form inferences that go beyond the information given. We review research on the processes, bases, and the judgment contexts in which inferences are formed. The most basic processes are induction (inferences from specific instances to general principles) versus deduction (inferences from general principles to specific instances). Stimulus‐based inferences are formed on‐line (as information is encountered) using situationally available information, whereas memory‐based (or theory‐based) inferences are formed using prior knowledge and experience. Inferences can pertain to a single product judged in isolation (a singular judgment context) or to multiple products considered in relation to one another (a comparative judgment context). This 2x2x2 (Induction vs. Deduction x Stimulus‐Based vs. Memory‐Based x Singular vs. Comparative Judgment) theoretical framework suggests that there are 8 different types of inferences that consumers may form. Based on this framework, we identify gaps in the literature and suggest directions for future research.     

Activating a mental simulation mind-set through generation of alternatives: Implications for debiasing in related and unrelated domains

Encouraging people to consider multiple alternatives appears to be a useful debiasing technique for reducing many biases (explanation, hindsight, and overconfidence), if the generation of alternatives is experienced as easy. The present research tests whether these alternative generation procedures induce a mental simulation mind-set (cf. Galinsky & Moskowitz, 2000), such that debiasing in one domain transfers to debias judgments in unrelated domains. The results indeed demonstrated that easy alternative generation tasks not only debiased judgments in the same domain but also generalized to debias judgments in unrelated domains, provided that participants were low in the need for structure. The alternative generation tasks (even when they were easy to perform) showed no evidence of activating a mental simulation mind-set in individuals high in need for structure, as these individuals displayed no transfer effects. Implications of the results for understanding the role of the need for structure, ease of generation, and mental simulation mind-set activation for debiasing are discussed.