The psychophysics of spending

Several theories of decision making are based, in part, upon the principles of psychophysics (Kahneman and Tversky, 1979; Thaler, 1985). For example, due to the psychophysics of quantity, the difference between $10 and $20 seems greater than the difference between $110 and $120. To determine whether psychophysics influences consumers' decisions, subjects in four studies made real or hypothetical purchases. It was predicted that as the size of the purchase increased, subjects would be more willing to buy additional smaller items. Small extra purchases should seem like minor expenditures when they follow larger purchases. Results of the four studies supported our hypothesis. In addition, it was found that subjects responded not only to actual changes in purchase size but also to changes in the presentation or framing of a purchase.     

Preference for Human (vs. Robotic) Labor is Stronger in Symbolic Consumption Contexts

Advances in robotics, automation, and artificial intelligence increasingly enable firms to replace human labor with technology, thereby fundamentally transforming how goods and services are produced. From both managerial and societal points of view, it is therefore important to understand demand‐side incentives for firms to employ human labor. We begin to address this question by examining for which products and services consumers are more likely to favor human (vs. robotic) labor. In six studies, we demonstrate that consumers prefer human (vs. robotic) labor more for products with higher (vs. lower) symbolic value (e.g., when expressing something about one's beliefs and personality is of greater importance). We theorize that this is because consumers have stronger uniqueness motives in more (vs. less) symbolic consumption contexts (and associate human labor more strongly with product uniqueness). In line with this account, we demonstrate that individual differences in need for uniqueness moderate the interaction between production mode and symbolic motives and that a measure of uniqueness motives mediates the effect of consumption context on preferences for human (vs. robotic) production.     

How category advertising norms and consumer counter‐conformity influence comparative advertising effectiveness

Surprisingly little research examines whether and how category advertising norms influence the effectiveness of comparative advertising. To address this void, the present research investigates if the persuasiveness of a particular comparative advertisement depends on whether or not it is viewed as a typical tactic that conforms to category advertising norms. Results from experiments 1 and 2 indicate that a comparative advertisement used in violation of category norms results in a persuasion penalty that is evidenced by a reduction in the ad's impact on brand attitudes. This effect of category norms on persuasion is shown to be mediated by evaluations of the comparative advertisement's appropriateness in the product category. A final experiment confirms this persuasion penalty with respect to consumers holding conformity-based motives. However, this penalty is found to be reversed for individuals seeking counter-conformity in the marketplace, who respond more favorably to a comparative advertisement when it violates rather than conforms to category norms.     

Why brands should fear fearful consumers: How attachment style predicts retaliation

In two surveys of adult consumers, we find that attachment styles predict consumers' reactions after brand relationships end. Specifically, ‘fearful’ consumers—those high in both attachment anxiety and avoidance—are most likely to complain to third parties, to obsess about harming the brand, and to report seeking payback against brands. Two factors mediate the effect of attachment on reactions: threats to consumers' self-image and the loss of benefits from their relationship. This is consistent with the explanation we propose: specifically, fearful individuals invest in and depend more on consumption relationships and, therefore, lose more when such relationships end.     

When less is more: Consumer aversion to unused utility

A series of experiments demonstrates that consumers exhibit aversion to waste during forward-looking purchase. These experiments further reveal that such behavior is driven by distaste for unused utility, a reaction that is shown to be distinct from an aversion to squandering money. Waste aversion is especially pronounced when consumers anticipate future consequences and deprivation is salient. In addition to demonstrating robustness across consumers and marketing contexts, the results also demonstrate how waste aversion can lead to self-defeating behavior in which consumers forego desired utility. Finally, the present research demonstrates and discusses the implications of waste aversion for a variety of marketing issues, including buy-rent markets, bundling, and the fundamental distinction between goods and services.     

Building trust to increase purchase intentions: The signaling impact of low pricing policies

We examine the differential signaling impact of two low pricing policies, Price Matching Guarantees and Everyday Low Prices, on consumers' trusting beliefs and purchase intentions. We demonstrate that both PMG and EDLP pricing policies signal stores' ability to offer lower prices. However, whether these sellers were perceived as benevolent, and—consequently—consumers' purchase intentions, varied critically depending upon price uncertainty. Perceived benevolence and purchase intentions were significantly higher [lower] for sellers offering PMG than EDLP when price dispersion was high [low]. Our findings offer insights into whether and under what conditions firms should adopt these low pricing policies.     

Consumer decisions in relationships

Most research on consumer choice assumes that decisions are usually made by individuals, and that these decisions are based on an individual's personal attitudes, beliefs, and preferences. Yet, much consumer behavior—from joint decisions to individual choices—is directly or indirectly shaped by people with whom we have some relationship. In this target article, we examine how each member in a relationship can affect how consumer decisions are made. After reviewing foundational work in the area, we introduce a powerful and statistically sophisticated methodology to study decisions within relationships—a dyadic framework of decision-making. We then discuss how the study of consumer decisions in relationships can be informed by different theories in the relationships field, including attachment, interdependence, social power, communal/exchange orientations, relationship norms, and evolutionary principles. By building on the seminal foundations of prior joint-decision making research with theories and methods from contemporary relationship science, we hope to facilitate the integration of the consumer and relationships literature to better understand and generate novel hypotheses about consumer decisions in relationships.     

The universality of warmth and competence: A response to brands as intentional agents

Considerable effort has been devoted towards the understanding of the ways in which people interact with brands. However, little attention has been paid to the personal differences that may impact these interactions. The framework for brands as intentional agents by Kervyn, Fiske, and Malone (this issue) is the groundbreaking application of almost three decades of research on warmth and competence as predictors of interpersonal stereotypes to the realm of brands. Our paper argues that demographic differences impact interactions with brands and offer additional explanatory power to the framework. Findings support conclusions of Kervyn et al., but they also suggest the importance of age, education, and income on warmth and competence evaluations.     

Particle swarm optimised analysis of investment decision

A portfolio forecasting model based on particle swarm optimization (PSO) algorithm with automatic factor scaling is proposed in this Article to effectively improve the accuracy of related analysis model in portfolio application. Firstly, the portfolio problem is analyzed and a hybrid constraint portfolio model is obtained by improving portfolio model with consideration of general portfolio model and combination of market value constraint and upper bound constraint according to Markowitz's theory. Secondly, PSO algorithm is introduced during analysis on portfolio model and solution is found with the hybrid constraint portfolio model of PSO on portfolio. In addition, in order to further improve the performance of PSO in model solution, automatic factor scaling is used for adaptive learning on parameters associated with PSO, to improve convergence of the algorithm. At last, simulation experiments show that the algorithm proposed can obtain a more ideal investment portfolio scheme, thereby reducing investment risks and obtaining greater investment returns.     

The Name Game: How Naming Products Increases Psychological Ownership and Subsequent Consumer Evaluations

Naming products is quite prevalent in American culture; however, we are not aware of any consumer research that explores the effects of this phenomenon. Across three studies, we demonstrate that when consumers name products, their evaluations of those products increase (e.g., attitudes, purchase intentions, and willingness to accept). We find that name fit and creativity as well as subsequent psychological ownership drive this effect. We also demonstrate that the naming effect is quite robust—replicating across multiple products, presentation formats, and populations as well as persisting over time. These results contribute to consumer research by opening up a new substantive line of inquiry into the effects of naming products.