Exploring the boundaries of the framing effect: The moderating roles of disparate expected values and perceived costs of judgmental errors

Framing effects on retail store choice decisions were investigated in four experiments. Subjects preferred the store that guaranteed (a sure option) good prices (experiment 1), product availability (experiment 2), or a rebate (experiment 3) when consequences were framed in terms of gains; subjects preferred the risky option when consequences were framed in terms of losses. Consistent with fuzzy-trace theory, framing effects were reduced when the expected values of options were disparate in a direction that disfavored sure gain or probabilistic loss options (experiment 2) and when the perceived costs of committing a judgmental error were high (experiment 3). Experiment 4 shows that the moderating effects of disparate expected values and costs of judgment errors generalize to within-subject designs.     

Technical nomenclature,everyday language,and consumer inference

Marketing Letters - The use of technical language in marketing communications has more complex effects than what the previous research suggests. Three studies show that the effect of technical...     

Implementation of IFRS for SMEs in Emerging Economies: Stakeholder Perceptions in the Czech Republic,Hungary, Romania and Turkey

This research investigates the perceptions of stakeholders involved in financial reporting in four emerging economies (the Czech Republic, Hungary, Romania, and Turkey) regarding the possible implementation of IFRS for SMEs, in terms of costs, benefits, and strategy of adoption. In‐depth, semi‐structured interviews were conducted with representatives of main stakeholders (preparers, auditors, regulators, professional bodies, and users). We find more support for IFRS for SMEs implementation in these four countries than suggested by the results of the European Commission's 2010 consultation for the European Union. Interviews reveal differences between stakeholder groups and between countries regarding the preferred implementation approach (mandatory adoption, voluntary adoption or convergence of national regulations with IFRS for SMEs). Interviews indicate the most support for the convergence approach. However, users oppose convergence and prefer the adoption of IFRS for SMEs. The convergence approach moves regulators' attention from users' needs to preparers' preferences and preparedness. This finding is relevant in the decision‐making process of national regulators, who should balance the needs of various stakeholders, but also the country's political and economic objectives.     

The Influence of Repetitive Health Messages and Sensitivity to Fluency on the Truth Effect in Advertising

Although merely repeating a product claim does not influence the objective validity of the claim, it often increases the subjective validity of the claim (the truth effect). Research notes that the truth effect plays an important role in health advertising. The present research investigates the moderating role of sensitivity to feelings of fluency (or processing ease) on the truth effect. The truth effect was more pronounced when the need for affect was high rather than low (Study 1) and when consumers were primed to trust their feelings (Study 2). Finally, Study 3 and Study 4 replicate these findings using advertising appeals. Advertisements that encourage consumers to focus on their feelings increase susceptibility to the truth effect.     

Construal-level mind-sets and the perceived validity of marketing claims

Prior research shows that the repetition of unfamiliar statements increases their subjective truthfulness. The present research shows that truth ratings can also be increased without repetition. Several different manipulations of low-construal-level mind-sets increased the perceived validity of a wide variety of marketing claims across a broad spectrum of products and industries. Mismatched construals reduced this effect. The results suggest that concrete construals enhance truth ratings when consumers focus on their intuitive feelings and impressions but not when they process marketing claims analytically.     

Special fonts: The competing roles of difficulty and uniqueness in consumer inference

The use of special fonts in marketing communications may have more complex effects than expected. This study examines multiple effects of special fonts and proposes boundary conditions for the effects. Special fonts are perceived as more unique and difficult to read than regular fonts. Five experimental studies show that whereas the perception of uniqueness decreases the awareness of missing information, leading to more favorable initial judgments but a higher likelihood of regret later, the perception of difficulty has the opposite effects. These competing effects are moderated by contextual cues that vary the salience of uniqueness versus difficulty associated with special fonts. Specifically, consumers are more influenced by the uniqueness of special fonts when they rate the degree of uniqueness before the degree of difficulty or when they evaluate a product category (e.g., a handmade item or a décor) that is generally expected to be unique. On the contrary, they are more influenced by difficulty when they rate difficulty first or when they evaluate a product category (e.g., “a tax preparation service”) that is unexpected to be unique. Implications of the results for understanding the effects of fonts on information processing and consumer inference are discussed.     

Blissful Insularity: When Brands are Judged in Isolation from Competitors

The need to evaluate a single brand in isolation, without explicit comparisons to competitors, is ubiquitous in consumer judgment because competitors are often not readily apparent. Although consumers routinely make such judgments, in this paper we show that when a brand is judged in isolation, the judgment is often overly favorable. Moreover, we explore when and why this tendency occurs. Data from 259 participants across 3 experiments that considered very different product categories, and that were conducted with student and adult consumer samples, converge to show that; (1) isolated brand evaluations on average are characterized by a favorableness bias, (2) this bias results from consumers' selective processing of information about the focal brand, (3) favorableness bias is attenuated if context leads consumers to consider alternatives to a salient focal brand, and (4) the isolated brand judgments of experts are much better calibrated than are those of novices.     

The effect of message credibility,need for cognitive closure,and information sufficiency on thought-induced attitude change

Marketing Letters - Self-generated thought has been shown to have a significant impact on attitude change. Merely thinking about an attitude can result in more extreme attitudes. Although research...     

Using imagine instructions to induce consumers to generate ad-supporting content

Some recent advertisements attempt to increase persuasiveness by directly asking consumers to imagine arguments supporting the ad's message. This research provides a critical test of the effectiveness of this imagine strategy, while also identifying specific situations in which this technique can be most effective in increasing persuasion. Three studies reveal that imagine instructions are most effective when there is a lack of fit between consumers' regulatory orientation and the ad content, when consumers are dispositionally oriented toward a high need for cognitive closure, and when consumers are at a high construal level. These results are consistent with the possibility that the imagine strategy is most effective when used to enhance the motivation level of otherwise unmotivated consumers.