Choice Research: A Wealth of Perspectives

This article is a navigation guide to the twenty papers that emerged from the workshops conducted at the Sixth Invitational Choice Symposium (Estes Park, Colorado, June 2004). The papers are categorized into three broad sets that focus respectively on choice modeling issues, on providing interdisciplinary perspectives on choice, and on relating choice research to real world concerns. Within each category, we offer provide brief integrative overviews linking subsets of papers.     

Imperfect Information and Opportunism

Information is a scarce resource. It is inherently available only in a limited form to decision-makers. Limited or imperfect information is caused by uncertainty — both ontologic and epistemic, limitations in cognitive capabilities or bounded rationality, hidden information, and information asymmetries. This has fundamental implications for the manner in which the self-interested behavior of agents will manifest itself. The article argues that in the context of imperfect information, self-interest can function in a manner quite different from what standard approaches assume. This has been demonstrated by the recent financial crisis. However, there has been limited consideration in mainstream models, both of the neoclassical and institutional type, as to what the exact nature of self-interestedness is, and how this affects the market behavior of agents. The nature of self-interest, therefore, needs to be modeled explicitly to improve the explanatory power of economic theories.     

Brand Equity, Consumer Learning and Choice

The aim of this paper is to explore the links between brand equity, consumer learning and consumer choice processes in general and considering two recent trends in the market place: store brands and the Internet. We first review the advances that have occurred in brand equity research in marketing in the past decade, with particular emphasis on integrating the separate streams of research emanating from cognitive psychology and information economics. Brand equity has generally been defined as the incremental utility with which a brand endows a product, compared to its non-branded counterpart. We amplify this definition: we propose that brand equity be the incremental effect of the brand on all aspects of the consumer's evaluation and choice process. We propose an agenda of research based on this amplified definition.     

It is different than what I saw online: Negative effects of webrooming on purchase intentions

Webrooming is a two-stage shopping process that begins with examining product options online followed by making a purchase at an offline store. In four experiments, we investigate webrooming effects on product evaluation and purchase intentions. The results suggest that webrooming (vs. non-webrooming) has negative impacts on (1) perceived product performance vis-à-vis expectations and (2) purchase intentions for the products offline. Our moderated-mediation analyses show that webrooming leads to lower perceived product performance, which in turn results in lower purchase intentions, and participants’ Need for Touch (NFT) moderates the negative mediation effect, which is stronger with instrumental NFT than autotelic NFT. However, this moderated-mediation effect is attenuated when products are searched across multiple categories. These findings contribute to the marketing literature by providing a more nuanced understanding of how two-stage, webrooming behavior affects consumers’ cognitions and purchase decisions. They also provide several managerial implications that when controlling for time intervals between the stages, (1) webrooming may adversely affect retailers’ business outcomes when webrooming within a single (e.g., blankets), related (e.g., baby products), and unrelated product categories; (2) thus, creating an integrated online-to-offline cross-channel customer experiences is critical to minimize the negative webrooming effects on final sales.