More Than Aesthetic: Visual Boundaries and Perceived Variety

Many online retailers use seemingly innocuous visual boundaries when presenting choice sets to consumers. In contrast to previously studied aspects of information presentation, visual boundaries do not alter underlying information structure. The authors argue that, beyond their aesthetic role, visual boundaries can systematically increase or decrease perceived choice variety but the impact of visual boundaries on variety perceptions depends on consumer cognitive load. Study 1 finds that, by-attribute (vs. alternative) boundaries increase (decrease) perceived variety under high but not low cognitive load. Study 2 further demonstrates that retailer intent moderates the interaction between visual boundaries and cognitive load such that, when cognitive load is high, effects of visual boundaries on perceived variety are strengthened when consumers believe that retailers use boundaries to aid consumer navigation but reversed when they believe retailers use boundaries to persuade consumers to make purchases. Finally, Study 3 rules out attribute order and number of attribute levels as alternative accounts for the effect and enhances generalizability through a different manipulation of cognitive load. This work advances understanding of how simple environmental cues affect consumer behavior, with implications for retail strategy.     

A good way to boost sales? Effects of the proportion of sold-out options on purchase behavior

The present research explores how the proportion of sold-out options in the choice set affects consumer purchase choices. Across five experiments, we find an inverted U-shaped relationship between the proportion of sold-out options in a choice set and consumer purchase choices. Fueling this effect are two competing processes: presence of sold-out options signals the overall quality of products in the choice set, which prompts consumers to purchase available options; while it also evokes psychological reactance, which impedes purchases. The quality signaling effect features a concave shape, whereas the psychological reactance force takes on a convex shape, so in combination, these two forces form an inverted U-shaped relationship. In addition, two boundary conditions were identified: (1) this effect is obtained only when psychological reactance is not induced by other situational factors; and (2) this effect disappears when consumers make purchases for others, not when they make purchases for themselves.     

The brand architecture of grocery retailers: Setting material and symbolic boundaries for consumer choice

This article discusses how the brand architecture of grocery retailers set material and symbolic boundaries for consumer choice, thus limiting consumer sovereignty. The article first discusses previous work on store atmospherics, servicescapes and brand architecture. It is argued that work based on these concepts has taken an internal management perspective on how retailers can manipulate aspects of the retail setting to serve their own interests. Then, we develop an alternative conceptualisation of retailer brand architecture that takes into account that consumers (and other constituents) are active co-constructors of material and symbolic aspects of retail settings. It is discussed how consumers participate in constructing retailer brand architecture and how this concept differs from previous research. Implications for both research and practice are discussed.     

Consumer power and choice deferral: The role of anticipated regret

This paper examines the influence of social power on consumers' propensity to defer choice. Based on the notion that elevated power reduces regret anticipation—the fear of making a wrong choice—it is proposed that power influences the extent of choice deferral by reducing consumers' susceptibility to anticipated regret. Because of the regret-based mechanism, power can increase or decrease consumers' propensity to defer choice, depending upon the situational factors that are associated with anticipated regret, such as salience of regret, outcome reversibility (e.g., return policy), and locus-of-regret (postponing vs. choosing now). Using different manipulations of power, seven studies provide consistent support for the proposed effects and show that situational factors and marketing strategies can induce, turn off, or even reverse the effect of power on deferral. Theoretical contributions and managerial implications are discussed.     

How scolding can encourage consumer engagement with plastic waste issue? The moderating role of consumers’ mindset

Extant literature has reported mixed findings on the effectiveness of praising versus scolding in social marketing messages, such as how to encourage consumer engagement with plastic waste issue. Against this backdrop, this research investigates the moderating role of consumers' mindset in this regard. This research reports two experimental studies and demonstrates that consumers with a growth (vs. fixed) mindset will experience higher levels of outcome efficacy when evaluating a scolding (vs. praising) message. In addition, this research employs different methods of eliciting consumers' mindset and examines different dependent variables (product choice in Study 1 and donation allocations in Study 2). The results of this research thus offer a fresh theoretical perspective on the effectiveness of scolding (vs. praising) in enhancing consumer engagement with plastic waste issue by examining the moderating role of consumers’ mindset and establishing the underlying mechanism.     

Verticality in product labels and shelves as a metaphorical cue to quality

This study investigates how subtle visual cues related to the design of a product's package (i.e., label position) and the context (i.e., shelf orientation) influence consumer evaluation and behavioral intention. Extending research on metaphorical cues, Study 1 shows that consumers perceive a product as more powerful when the label on the package is placed in a higher (vs. lower) vertical position. Extending the focus from package design to the display context of packages, Study 2 shows that consumer perception of a product's power is similarly enhanced when the package is placed on a shelf that is vertically (vs. horizontally) orientated. Across both studies effects of enhanced power perception extend to positively influence product quality inferences and behavioral intentions. These findings add to current knowledge on metaphorical cues in package design and the package's presentation context and offer insights into the underlying mechanism.     

Influence of Soldout Products on Consumer Choice

Consumers often face situations in which information about soldout products is still present in the decision context. This paper demonstrates that the presence of soldout products in the decision environment can prompt consumers to purchase available options and decrease choice deferral. This effect can be explained by two underlying decision processes. First, soldout products may create a sense of urgency for consumers to expedite their purchases, which the authors call an immediacy effect. Second, soldout products may enhance the perceived attractiveness of products similar to the soldout products, which the authors refer to as an informational cascades effect.     

Feeling disconnected from others: The effects of ambient darkness on hedonic choice

This research documents a novel effect of ambient lighting on consumer choice. We propose and find that ambient darkness (vs. brightness) can result in consumers feeling disconnected from others. As a result, consumers become more authentic in their choices and they choose hedonic over utilitarian options because these choices reflect what they truly want (Study 1). Past research had suggested darkness increases hedonic choice by making choice less observable, but we find this effect emerges even when the choice is already anonymous and darkness cannot further increase anonymity. Rather, feeling disconnected from others and less weight to social norms heightened self-authenticity in darker (vs. brighter) surroundings (Study 2). When consumers are reminded of social connection, this difference is attenuated (Study 3). Thus, consumers making hedonic choices regulate their choices when reminded of their social connections. Implications of these findings and possible extensions are discussed.     

Marketing the use of headgear in high contact sports

High contact sports have gained popularity among consumers, who often seek thrills and the feeling of invincibility by risking their well-being. One major health risk associated with these sports is head injuries, including trauma, concussion, and sleep disruption. In this research, we investigate the effect of consumers’ product choice difficulty on their health risk assessments. We illustrate a novel mediating route by documenting how and when choice maximization can help consumers make the optimal choice when faced with the many products available in the market. To aid their decisions, consumers require communication about the health benefits of the product (first-stage boundary condition) but not at the expense of reducing their game-playing enjoyment (second-stage boundary condition). The paper concludes with contributions to and implications for theory and practice and a research agenda to guide future inquiries in this under-researched area.     

The market value for product attribute improvements under price personalization

Personalization of the marketing mix is a topic of much interest to marketing academics and practitioners. Using discrete choice demand theory, we investigate the aggregate market value for product attribute improvements when firms are engaged in personalized pricing. Our results provide a theoretically grounded rule for how to aggregate consumer valuations to assess the overall profitability of attribute improvements under price personalization. Under common pricing, each consumer contributes the same margin. Profitability of an attribute improvement is thus driven by inducing more consumers to buy. Consumers with high choice probabilities are given less weight in the market valuation under common pricing as they are less responsive to attribute improvements. Under personalized pricing, profitability of an attribute improvement is driven by extraction of consumer surplus from high valuation consumers. Consumers with higher valuations, and consequently higher choice probabilities, are given more weight in the market valuation under personalized pricing. Since individual consumers play a more central role in the market valuation under personalized pricing, estimation of consumer-level valuations is of increased importance. Under common pricing, the market valuation for an attribute improvement is robust to extreme estimates of the consumer-level valuations. Through our theoretical and empirical analyses, we demonstrate that this robustness does not hold under personalized pricing.     

Illusion of safety: How consumers underestimate manipulation and deception in online (vs. offline) shopping contexts

Online commerce changes how consumers shop for products and services—while also giving firms more control over consumers' shopping experience, more access to their information, and leading more firms to use these platforms to their financial advantage. In this research, I examine consumer perceptions of firms when they shop for products and services online (vs. offline), to determine whether consumers feel firms might use certain kinds of manipulative and deceptive tactics against consumers. Results show consumers believe firms are less likely to use manipulative and deceptive practices to increase consumer spending, when they shop online (vs. offline) for products and services. These findings remain consistent despite key individual differences (in ethnicity, gender, age, and time spent online). This research also demonstrates how certain cues can make consumers more (vs. less) suspicious of firms when they shop online and discusses the implications these findings have for consumer financial welfare.     

Compromising the compromise effect: Brands matter

Consumer behavior research has a long history indicating that preferences are influenced by the relative positions of members of a choice set. The realism of this work, however, is somewhat limited because alternatives are typically labeled with letters rather than with real brand names. We investigate the boundaries of prior research by testing whether preferences for alternatives in compromise and superior positions generalize to a more realistic market scenario that includes choices between real brands. In particular, we conduct two studies that examine if preferences for brands in a choice set are moderated by the inclusion of more or less familiar brand names. We find that consumers prefer extreme brands when compromise brands are relatively less familiar and compromise brands when they are relatively more familiar. In this scenario brand familiarity and not the position of the alternatives determine choice. In situations where a choice alternative is superior, we find no moderation due to brand familiarity.

How background visual complexity influences purchase intention in live streaming: The mediating role of emotion and the moderating role of gender

There is growing evidence that visual complexity plays a crucial role in consumer purchase behavior. However, existing research on background visual complexity’s effect on individuals’ purchase intention in live streaming is limited. This study explores the relationships between live background visual complexity, emotional states, and purchase intention, by drawing on the stimulus-organism-response theory. A 3 × 2 between-subjects online experiment was developed with participants’ emotional and intention data. The results indicate that the background visual complexity of the livestream room influences consumers’ purchase intention positively via the evoked emotional states (pleasure and arousal). Background visual complexity exhibits an inverted U-shaped effect on consumers’ emotions. Additionally, the results reveal a significant moderating effect of gender on the relationship between background visual complexity and purchase intention. Women exhibit an inverted U-shaped effect on emotion and purchase intention, whereas men show a positive linear relationship when faced with complexity.     

Decisions with ChatGPT: Reexamining choice overload in ChatGPT recommendations

This research examines how individuals respond differently to recommendation options generated by ChatGPT, an AI-powered language model, in five studies. In contrast to previous research on choice overload, Studies 1 and 2 demonstrate that people tend to respond positively to a large number of recommendation options (60 options), revealing diverse consumer perceptions of AI-generated recommendations. Studies 3 and 4 further illustrate the moderating effect of recommendation agents and indicate that choice overload elicits distinct patterns of consumer reactions depending on whether the recommendations are from a human or AI agent. Lastly, Study 5 directly measures consumer preferences for recommendation agents, revealing a general preference for ChatGPT, particularly when a large number of options are available. These findings have significant implications for recommendation system design and user preferences regarding AI-powered recommendations.     

The effect of information overload on consumer choice quality in an on‐line environment

As more and more consumers become part of the net population, retailers and manufacturers as well as dot‐com storefronts are touting consumers by providing an ever‐increasing amount of product information. Their long‐term survival and profitability may be determined by how much and how well their product information is presented to and processed by the consumers. By combining both the traditional and structural approaches to the information‐overload phenomenon, this study investigates the impact of Web site information on consumer choice and psychological states in an on‐line environment. Varying the number of alternatives and attributes (traditional measure) and attribute level distribution across alternatives (structural measure), this study asks subjects to choose the best (dominant) CD player in a given set. Their subjective states such as satisfaction, confidence, and confusion are also measured. Results show that the number of attributes and attribute level distribution are good predictors of the effect of information overload on consumer choice. In addition, the study finds that on‐line information overload results in less satisfied, less confident, and more confused consumers. Implications and suggestions for future research are provided. © 2004 Wiley Periodicals, Inc.     

Consumer aliteracy

A large and growing segment of global society is comprised of capable but unwilling readers. Despite the proliferation of aliteracy and extant research on illiterate consumers, the topic of consumer aliteracy is unexplored. To address the issue, an eight‐item unidimensional measure of the construct is developed and validated. This consumer aliteracy scale captures reading attitudes and behaviors across a variety of written marketing materials. Results indicate that consumer aliteracy is predictive of how consumers approach written versus visual marketing information and the amount of time devoted to these information formats in a choice setting. Understanding the phenomenon of consumer aliteracy is essential for researchers studying consumer responses to a wide variety of written marketing materials. In addition, consideration of consumer aliteracy may help research that employs written marketing messages as stimuli to better detect other processing effects.     

How much to give? — The effect of donation size on tactical and strategic success in cause-related marketing

In cause-related marketing (CM), companies promise a donation to a cause every time a consumer makes a purchase. We analyze the impact of the size of this donation on brand choice (tactical success) and brand image (strategic success). Our results reveal different effects of donation size on these success measures. For brand choice, the effect of donation size is moderated by a financial trade-off for consumers, whereas the effect on brand image is moderated by donation framing. Specifically, we show that donation size has a positive effect on brand choice if consumers face no financial trade-off; i.e., if they do not have to choose between triggering a donation or saving money. The effect is negative if a trade-off exists such that higher donations come at higher costs. Brand image is enhanced by larger donations if the framing is nonmonetary (e.g., the campaign promises the provision of vaccinations), whereas donation size has a negative effect if donation framing is monetary (e.g., the campaign states the Euro amount). If campaigns use a combination of both frames, the effect of donation size on brand image has an inverted U shape. Our results suggest that CM enhances tactical and strategic success only if firms select the right donation size, taking into account donation framing and financial trade-offs.     

Profiling the reference price consumer

Researchers in marketing have devoted considerable attention to understanding how price impacts the purchase decision. Some individuals, termed memory-based reference price (MBR) consumers, take into account price expectations developed from past purchase behavior when making a current choice. Other individuals, termed stimulus-based reference price (SBR) consumers, make choices by constructing a reference point from the currently observed distribution of prices. Using a latent class model of structural heterogeneity applied to purchase histories from the toilet tissue category, we classify households in terms of the pricing mechanism used in buying decisions. We find strong evidence that memory-based (internal) reference price consumers are more price sensitive than other consumers. Moreover, we find that variables associated with the accessibility of price information are predictive of consumer use of memory-based reference prices. Managerial implications of these results are discussed.     

A demonstration of anomalies in evaluations of bundling

The paper investigates the premise that bundling prompts consumers to purchase more than they ordinarily would. Two theoretical justifications for increased purchasing with bundling are reviewed, and an experiment regarding consumer evaluation of bundling is reported. Anomalies in the experimental results demonstrate that bundles appear to create contexts that influence evaluation and choice, and some support for increased purchasing was found. Further research is needed to understand more fully the bundle context, the effects created and the process evoked.I thank Robert J. Dolan and Peter H. Farquhar for their many contributions. I also thank Billur Dowse and Mark Indelicado for their helpful research assistance.     

Online Repurchasing: The Role of Information Disclosure,Hope, and Goal Attainment

The emergence of online purchasing has changed the relationship between consumers and brands. Our research focuses on online information disclosure and consumer hope in an online shopping environment. Two studies are undertaken to test the theoretically derived hypotheses. Study 1 evaluates the causal relationship between information disclosure and hope via an experiment in an online shopping context. Study 2 involves an online survey to test the nomological network presented in this research. The models identify the moderating effect of consumer product knowledge on online information disclosure and consumer hope. For academics, this research advances knowledge of how consumers' confidence in sharing personal information develops hope, consequently enabling them to attain their goals and repeat their purchases. For practitioners, it offers a better understanding of how investments are successful in aiding consumers to attain their goals and generate repeat purchase intentions in an online shopping environment.