Buying group choice: The effect of individual group member's prior decision frame

This article reports the results from two experiments that tested decision‐framing effects on choices made by simulated organizational buying groups. The first experiment showed that the choice of suppliers by buying groups varied depending on the nature of the decision frame. Moreover, group influence seemed to intensify the effect of the loss decision frame. The second experiment tested whether mixed‐frame groups used a lexicographic strategy to make multidimensional supplier choice decisions. Buying groups faced with a choice between two suppliers that differed with respect to price and quality chose the supplier that was best on the most important attribute—quality. Also, the decision frame associated with the important attribute affected the buying groups' choices. © 2002 John Wiley & Sons, Inc.     

Consumer decision making and variety of offerings: The effect of attribute alignability

In recent years, many companies have considerably increased their number of offering varieties. The underlying rationale for such product strategies is substantiated by the belief that assortment proliferation would better satisfy customers' diverse preferences. However, empirical evidence exists suggesting that if there are too many varieties to choose from, customers sometimes either refrain from making a purchase at all, or else resort to simple selection heuristics. This article approaches the issue of assortment variety from a decision‐theoretical perspective, by positing circumstances under which expanding the number of varieties will positively or negatively affect consumer behavior. Herein, the concept of attribute alignability provides explanatory potential. Two experimental studies are presented which analyze the effect of the number of product varieties on customers' decision‐making behavior by means of manipulating the choice settings in a virtual car configurator. It can be shown that whether the product attributes in question are alignable or nonalignable is the decisive factor in explaining customer decision making under variety. Furthermore, “pseudo‐alignability”is achieved easily via the relabeling of product options. These findings yield concrete managerial insights for the customer‐oriented design of product lines consisting of a basic product and several varieties derived from it. ©2009 Wiley Periodicals, Inc.     

Compromise and attraction effects in food choice

Food choices are being implicated as a key driver in the rising rates of obesity, as well as associated with other health problems that impact both individuals and society as a whole (Cawley and Meyerhoefer). Calorie listings, whether provided on menus or packaged goods, increase consumer's awareness of the calories in potential food choices and, as a result, make consumers more likely to evaluate a product relative to others in the choice set based on this attribute (e.g. choosing a higher or lower calorie option). In this research, we explore whether the provision of calorie information, when presented in the context of other food options, will result in (1) compromise effects, whereby individuals select intermediate (or middle) options in a choice set, and (2) attraction effects, whereby individuals gravitate towards items that are similar to others but also dominate these items in the choice set. In two experimental studies we find evidence for the compromise effect and the attraction effect. These findings extend work demonstrating that the context in which food decisions occur can impact choice, and builds on existing knowledge regarding the consequences of providing calorie information for food items. Although most work has shown that making calories salient has a beneficial impact on the accuracy of consumer calorie estimates and food choice, in this work we show that the compromise and attraction effects – two well‐established findings in decision‐making literature – can actually shift consumers to either higher or lower calorie options. This carries important implications for consumers making choices in information‐rich choice environments.     

To Choose or to Reject: The Effect of Decision Frame on Food Customization Decisions

Food retailers increasingly allow consumers to customize their food by either choosing items from available options or rejecting items from a pre-prepared set of options. In this study, we examine the effect of these two decision frames (choose vs. reject) on consumers’ food customization decisions. Specifically, we depart from the previous literature's focus on the quantity of items and examine the effect of decision frames on the nature of items included in the customized food. The results of a series of studies show that decision frames influence the relative number of healthy versus unhealthy items included in the customized food, and that this influence is further contingent upon the valence of the food to be customized (e.g., “healthy” salad or “unhealthy” pizza).     

Perceived assortment and consideration of customized products

Customization in the marketplace has become much more commonplace as information technology and flexible manufacturing systems continue to evolve. Consumer research into customization decisions has subsequently examined the implications of customization as compared to traditional assortment product offerings, finding that customization yields both positive implications for consumer preference matching as well as higher evaluations of retailers, chosen products, and even the process itself. The present research examines the implications that customization of products has on consumers’ decision processes, and on their perceptions of assortment and how they consider products. Two experimental studies suggest that customization decisions may negatively affect consumers’ perceptions of assortment, while also reducing the number of alternatives they consider, and that this in turn may have implications for their evaluation of, and willingness-to-pay for, customized products.     

When consumers follow their feelings: The impact of affective or cognitive focus on the basis of consumers' choice

The authors assumed that automatic preferences based on lower‐order affective processes have a greater impact on choice when people focus on their affective response to choice options (affective focus) than when they try to find reasons for their preferences (cognitive focus). They further supposed that the impact of the focus during decision making is less important when the cognitive resources of consumers are constrained. In an experiment, participants had to choose between two options while the cognitive or affective focus and processing resources were manipulated. Measures of automatic preferences correlated with choice under an affective, but not under a cognitive, focus. In contrast to expectations, this effect of focus was not moderated by the manipulation of processing resources. Interest‐ingly, the automatic measures contributed to the prediction of choice under an affective focus independently and apart from self‐report measures. © 2006 Wiley Periodicals, Inc.     

Charitable maximizers: The impact of the maximizing mindset on donations to human recipients

The majority of donations are dedicated to helping human recipients. Building on prior literature that demonstrates the role of downward social comparisons between donors and donation recipients in elevating willingness to help those in need, we propose that a maximizing mindset increases such downward social comparisons, which in turn promote donations to human recipients. A set of seven studies, including online and field experiments and a secondary dataset, provides convergent support for the effect of the maximizing mindset (whether measured as an inherent individual difference or activated as a temporary mindset) on donations and the mediating role of downward social comparisons. This research enriches the understanding of donations to human recipients by showing that donations can be enhanced by a maximizing mindset. Our findings offer important insights to donation-raising agencies. Specifically, activating the maximizing mindset among prospective donors—by embedding certain words in donation appeals or encouraging donors to think about their best choices in everyday life—could benefit charities and social-cause platforms in their efforts to raise donations to support the needy.     

Is “getting started” an effective way for people to overcome the depletion effect?

Whereas most research on depletion focuses on its effect on the overall performance of a subsequent task requiring self‐control, we examine the effect of depletion on self‐control after performance has begun. Across different manipulations of depletion and using different measures of self‐control (e.g., overriding an automatic behavioural tendency, enduring on a physically demanding task, and making healthy consumption choices), the results of three studies show that when self‐control has been initiated, the effect of depletion has little influence on subsequent behaviour also requiring self‐control: in other words, “getting started” on a self‐control task attenuates the depletion effect. The results also show that the way in which self‐control starts—that is, whether people choose to regulate, or whether this choice is forced—appears irrelevant. This research clarifies an effective way to facilitate self‐control after depletion, while providing a better understanding of the process underlying depletion. Copyright © 2015 ASAC. Published by John Wiley & Sons, Ltd.     

Food choice: student consumers' decision‐making process regarding food products with limited label information

Food label information theoretically facilitates consumer decision‐making and food choice, but the extent to which consumers actually use this information during decision‐making is a subject of considerable debate. Therefore, this study focused on the importance of label information in student consumers' decision‐making process when exposed to limited label information food in a cafeteria environment. Because of a paucity of research in this area, a qualitative research approach that was exploratory in nature was used, accompanied by semi‐structured interviewing and a vignette. Undergraduate students from the North‐West University, Potchefstroom Campus, in South Africa served as the target population. The findings suggest that internal and product‐related strategies are applied when food choices are made whereby the importance of label information only features in the latter strategy. Student consumers with a label interest were more inclined to use label information strategies in the absence of complete label information to base food choice on. Those with a lack of label interest made use of alternative strategies using product and personal‐related information, such as freshness and product knowledge to make decisions. The decision‐making process was more complex because of insufficient label information and product appearance, and thus previous experiences and habitual purchasing became more important to participants. Student consumers should be supported to make healthier food choices through food manufacturers supplying cafeteria products with more complete label information and by providing students with the knowledge to use label information correctly through educational programmes.     

Feature-based attributes and the roles of consumers' perception bias and inference in choice

This paper considers decision contexts wherein consumers make choices among alternatives that contain a manifest feature-based attribute: i.e., a discrete, salient and important attribute that describes a dichotomous quality, such as “genetically modified”, “organic”, or “locally grown”. We propose a choice model that can explicitly account for a) perception bias with respect to such an attribute when its information is present, and b) inference formation if this attribute information is missing for some alternatives. The impact of different information presentation formats on consumers' perception bias and inference formation is then examined by applying theories from social psychology. Our model outperforms standard Random Utility models that omit explicit representation of these phenomena. Consistent with theories considered, we find significant evidence of perception bias and inference in the choice data. Our results also provide insights on how consumers may infer the quality of a missing attribute in different competitive framing contexts. Finally, our welfare estimates show that consumers may benefit simply from the information improvement regarding government labeling policies.     

Decision delegation: A conceptualization and empirical investigation

This paper examines a purchase context in which consumers, instead of deciding on their own, delegate either a part of or the entire purchase decision to a surrogate. A path model linking the antecedent variables and delegation is tested in the context of personal computer purchases. It was found that the factors that ensure decision quality emanating from the surrogate's expertise differentials, trustworthiness, accountability, and willingness to customize increase the likelihood of decision delegation. In addition to its direct positive effect on delegation, trustworthiness mediates the effect of expertise difference, surrogate accountability, and customization on delegation. Perceived loss of control inhibits delegation, but only at the stage when the final choice decision is made. Also, if a decision task is repeatable, the high return on effort has a negative effect on delegation, but only at attribute set and choice set delegations. Contributions of the study and directions for future research are discussed. © 2008 Wiley Periodicals, Inc.     

The relative importance of time and dollar values in new product introduction decisions

This study investigates managerial sensitivity to timing differences in new product introduction decisions. Using a case scenario as the research setting, the study finds that in managerial decisions involving a choice between two-attribute alternatives (dollar value and time), respondents shifted their emphasis between attributes when they were personally affected by the decision outcome. Specifically, it was found that an additive constant manipulation (adding a constant to the dollar amount of each alternative) caused respondents to place more emphasis on the time attribute, and a multiplicative constant manipulation (multiplying the dollar amount of each alternative by a constant) caused them to place more emphasis on the dollar-value attribute.The study asks 108 subjects to assume the role of product manager in a case scenario and choose from among three two-attribute alternatives proposed by the case. The personal relevance of the decision was manipulated by telling respondents that the CEO in the decision scenario had stated publicly that the career of the decision maker would be (would not be) affected. The results show that the additive constant and multiplicative constant effects were only found when the decision outcomes would affect the respondents' career.     

Ecological rationality and entrepreneurship: How entrepreneurs fit decision logics to decision content and structure

During new venture creation, entrepreneurs make decisions in a variety of areas from seeking funding to hiring employees. When and why entrepreneurs use effectual or causal logics to make such decisions is poorly understood. In this study, we integrate ecological rationality theory and effectuation theory to examine how the nature of decisions influences entrepreneurs' use of decision logics. In a qualitative study with 41 entrepreneurs across 290 decisions, we explore how decision content (what the decision is about) and decision structure (what information about a decision is represented in the decision-maker's mind) influence entrepreneurs' use of effectual or causal logics. We extend our findings in an experiment with 224 entrepreneurs where we manipulate decision structure. Our results suggest that decision content influences entrepreneurs' mental representations of decision structure. In turn, the combination of two elements of decision structure — decision complexity and the perceived costs of implementing different options — drives entrepreneurs' use of decision logics. We contribute to the effectuation literature by integrating it with ecological rationality theory, introducing the concept of decision fit as a driver of decision logics, and developing our understanding of hybrid decision-making (the simultaneous use of effectuation and causation).     

How e-WOM recommendations influence product consideration and quality of choice: A motivation to process information perspective

A laboratory experiment examines the effects of electronic word-of-mouth (e-WOM) on consumer consideration and choice of an experience product. Specifically, we manipulated the number of consumer recommendations and the optimality of the recommended product in a realistic online shopping environment. The results indicate that e-WOM is likely to result in more time considering the recommended product. For consumers more motivated to process information, e-WOM recommendations lead to more time spent on the choice task overall. Further, consumers with less motivation to process information make suboptimal decisions based on e-WOM recommendations. Consumers with a high motivation to process information are willing to accept recommendations and switch from declared attribute preferences, but choose only optimal products.     

Understanding the role of parental support for IT career decision making using the theory of self‐authorship

Women's representation in the information technology (IT) workforce has declined to an all time low of 18.5% in the last 8 years. In order to support women to become interested in, enter and remain in the IT field, this study uses the theory of self‐authorship and path analysis to investigate the role of parental support in influencing IT career choice and interest for a sample of 954 US high school and college women. A 167‐item, paper and pencil Career Decision‐Making Survey was developed, containing 11 four‐point Likert type scales (Cronbach's alpha = 0.58–0.80) designed to measure levels of parental support and a number of factors related to how students consider information in the process of making a career choice. Results document that when all other things are considered, interactions with others, such as counsellors and teachers, about career options did not have a significant effect on career interest that overrode the direction provided by parents. Women were significantly more likely than men to seek input about careers, but encountered developmental dissonance when that advice conflicted with advice provided by trusted others. Implications from this study reveal the need for more parental education in understanding the role of self‐authorship in providing career decision‐making support to young women.     

Are interactive decision aids better than passive decision aids? A comparison with implications for information providers on the internet

While much has been made of the ocean of information available on the Internet, much less emphasis has been placed on how Web surfers might actually be able to process it. This article compares an interactive (user-inputted attribute importance weights) linear computer–assisted decision aid (CADA) format with three passive CADA formats in two studies. The decision environments for these tests are difficult, involving 20 to 30 brands rated on 6 attributes, one of which is negatively correlated with the others. Because the Linear CADA rank order is based on user-inputted attribute weights, it is expected to be more in concordance with the user's preference and hence is predicted to offer higher decision quality and be better liked than the passive formats. Contrary to expectations, however, a passive Equal Weight format performed as well or better than the Linear format on all objective and subjective comparison criteria, while the other two passive formats were not significantly worse on several decision quality criteria. The implications of these findings for information providers on the Internet are also discussed.     

How the number of options affects prosocial choice

Are potential contributors more likely to support a prosocial cause when presented with few contribution options or with many options? Across four studies—an analysis of archival contribution data from the crowdfunding site Kickstarter, a field experiment conducted in cooperation with a grocery store and a snack bar company, and two controlled laboratory experiments—we consistently find that when a fundraiser offers more options to potential contributors, the likelihood of contribution initially decreases and then increases. The result is a U-shaped relationship between the number of contribution options and contribution likelihood. We do not find such an effect for non-prosocial choices. With a fifth study, we offer a preliminary and tentative theoretical explanation for the U-shaped relationship, suggesting that the type of information processing by the decision maker (intuitive rather than deliberate) underlies this effect.     

Perceived product creativity and mental contrasting: Desired future on consumers’ product replacement decisions

Consumers often imagine what it would be like to own a new product. Does engaging in such thoughts on desired future impact consumers’ purchase intentions, and if so, what is the underlying process? This study sets out to investigate the posed questions by assessing self‐regulatory strategies consumers employ upon pondering on a desired future. Based on Oettingen’s fantasy realization model, the authors take a comparative approach of two modes on desired future—mental contrasting and indulging—en route to purchase intentions. In mental contrasting, an individual juxtaposes a desired future with his/her present reality, whereas, indulging is simply envisioning a desired future. Contingent upon the perceived likelihood of fantasy realization, consumers in the mental‐contrasting condition adjust their level—that is, high (low) for high (low) feasibility case—in goal commitment as well as in energization to achieve the desired future. In contrast, consumers in the indulging condition engage in moderate level of goal commitment—irrespective of the likelihood of fantasy realization. In a series of experiments, this study scrutinizes the fantasy realization model in context of attribute alignability/nonalignability, uncertainty in attribute meaningfulness and novelty, technological and psychological obsolescence en route to affecting the consumers’ product purchase/upgrade intentions. Conceptually, this study is the first to adapt the fantasy realization model to the marketing context, and the authors provide managerial implications of their key findings.     

Social influence: The role of self‐monitoring when making social comparisons

The self‐monitoring construct (Snyder, 1987) may prove to be useful when examining who individuals choose when making social comparisons. In Study 1, the self‐monitoring propensity of individuals who provide social comparison information and the self‐monitoring propensity of individuals who use such information were examined. Results supported the hypothesis that high self‐monitors have advisors (i.e., individuals to whom they first turn for advice) that are high in self‐monitoring, whereas low self‐monitors have advisors that are low in self‐monitoring. In Study 2, high and low self‐monitors identified their advisors as experts and generalists. Results supported the hypothesis that high self‐monitors have more expert advisors than low self‐monitors. The findings are discussed in terms of the implications for consumer decision making. © 2006 Wiley Periodicals, Inc.     

Statistical formats to optimize evidence-based decision making: A behavioral approach

Statistical information is crucial for managerial decision making. The decision-making literature in psychology and mathematical cognition documents how different statistical formats can facilitate certain types of decisions. The present analysis is the first of its kind to assess the impact of statistical formats in the presentation of data from market research on both the optimality of market decisions and the time required to perform the decision-making process. An economic experiment provides the data for this study. The experiment presents statistical information in simple frequencies and relative frequencies using numerical and pictorial representations in the context of different informational environments. The key findings are that statistical information presented in terms of relative frequency formats gives rise to more accurate decision making than data presented in terms of simple frequencies, independently of the informational environments. When time is the relevant variable, numerical formats lead to a faster interpretation than pictorial ones. Since the number of factors defining the four statistical formats and the different informational environments is quite large, an orthogonal design offers a suitable experimental design. This design keeps the experiment manageable without substantially reducing its analytical power.