The Color of Choice: The Influence of Presenting Product Information in Color on the Compromise Effect

Consumers often find themselves challenged by the conflicting desires to seek uniqueness versus conformity, and thus seek some degree of balance. In a series of six studies we show that presenting each options’ product-related information in a unique color, as opposed to all product-related information presented in black-on-white, partially satiates the desire for uniqueness, thus amplifying the compromise effect. Consumers facing color presentation formats choose the middle, conforming option more often, yet perceive their choice as more unique. This color effect is not realized if each option's attributes are presented in different colors, but all options use a consistent color scheme, as is often the case in on-line retailing sites such as Amazon.com. Having to justify one's choice moderates the color effect. The practical take-away is that consumers’ choices can be influenced by using unique colors to present option-related product information, a variable that is entirely independent of the options’ performance characteristics. Two field studies confirm this finding, one using a plain background versus a colored background in a product display and the other using product containers that are either in plain white or wrapped in unique colors.     

The influence of graphical versus numerical information representation modes on the compromise effect

The current research examines how different types of information representation mode (graphical vs. numerical) influence the compromise effect. We posit that the compromise effect will be relatively stronger in the graphical versus numerical information presentation mode. Four empirical studies reported in this research provide the following: (1) support for these predictions, (2) the moderating role of time pressure, and (3) the moderating role of explicit relational information for the above prediction. The empirical results reveal that individuals employ different kinds of information processing and judgments, depending on the type of information representation mode.     

Consumer–brand relationship quality: When and how it helps brand extensions

Two studies demonstrate that strong brand relationship quality (BRQ) enhances consumer judgments about brand extensions. Different methods (survey vs. experiment), participants (real consumers vs. college students), and cultural contexts (Korea vs. Canada) demonstrate that this effect generalizes. Study results suggest that this effect only occurs for two moderately-low-fit extensions: the extension and the parent are similar product categories with inconsistent attributes, or dissimilar product categories with consistent attributes. Two different cognitive processes underlie the BRQ effects depending on these conditions.     

Artificial Intelligence and Declined Guilt: Retailing Morality Comparison Between Human and AI

Journal of Business Ethics - Several technological developments, such as self-service technologies and artificial intelligence (AI), are disrupting the retailing industry by changing consumption...     

Effects of physical cleansing on subsequent unhealthy eating

Over five experiments, we demonstrate that physical cleansing (e.g., handwashing) can reduce consumers’ unhealthy eating in subsequent unrelated contexts, by decreasing their choice of vice food (e.g., chocolate cake) versus virtue food (e.g., fruit salad) and their preferred amount vice food for consumption. This effect generalizes over different food stimuli and different operationalizations of physical cleansing (i.e., actual cleansing, visualized cleansing, and vicarious cleansing). Further, an analogous effect occurs for consumers’ unethical choice in a non-food domain, thus increasing the generalizability of the cleansing effect. Finally, one potential mechanism of the effect based on the metaphorical associations between physical cleanliness and moral purity and between vice food and immoral consumption is suggested.     

The influence of hedonic versus utilitarian consumption situations on the compromise effect

This article reports the influence of two specific consumption situations—hedonic and utilitarian—on the magnitude of the compromise effect. Based on the literatures of different valuation processes (valuation by calculation vs. valuation by feeling) and hedonic versus utilitarian consumption, the authors suggest that the compromise effect will be stronger under the utilitarian (vs. hedonic) consumption situation due to different valuation processes. Three experimental studies were conducted, and the results have supported the prediction. In addition, the authors successfully excluded alternative explanations such as differences in willingness to pay, justification, and attribute importance. The authors concluded with a discussion of the theoretical and managerial implication of this research.     

Search for the underlying mechanism of framing effects in multi-alternative and multi-attribute decision situations

This paper extends previous research on the framing effect from single-alternative and single-attribute to multi-alternative and multi-attribute situations. Two experimental studies demonstrate that attribute framing and goal framing influence consumer decision-making in multi-attribute and multi-alternative situations. The results indicate that attribute framing influences only the perceived evaluation of the specific alternatives along a framed attribute, in that the perceived evaluation of the framed attribute is higher in the positive attribute framing condition than in the negative. On the other hand, goal framing influences only the weight of a framed attribute. Specifically, the weight of the framed attribute becomes more important in the positive goal framing condition than in the negative. Further, the results suggest that the attribute framing effects are attributable to the changes in mental representation in the encoding stage of the decision, rather than in the judgment stage.     

Effects of cognitive resource availability on consumer decisions involving counterfeit products: The role of perceived justification

In four experiments, participants made a purchase decision about a counterfeit product under either constrained or unconstrained cognitive resource conditions. Participants were less likely to purchase the counterfeit when their cognitive resources were constrained than when they were not. However, this difference was evident only when individuals had strong (vs. weak) moral beliefs, or when they had low (vs. high) accountability for their decisions. These and other results suggest that the effect of cognitive resource availability on counterfeit purchase was mediated by participants’ perceptions of justification about the purchase.     

The ownership distance effect: the impact of traces left by previous owners on the evaluation of used goods

This article examines how salient traces left by previous owners on used goods influence product evaluations. Based on the concept of psychological ownership, we propose the ownership distance effect in the context of buying used goods. We argue that when there are salient traces left by previous owners on a used good, it will widen the ownership distance between the potential buyers and the product. As a consequence, buyers will tend to evaluate the product less positively. Four experimental studies were conducted, and the results support this prediction. Buyers preferred used goods with salient traces left by a previous owner less (studies 1 and 2) due to the ownership distance effect. In addition, perceived psychological ownership mediates the ownership distance effect (studies 2 and 4). However, this negative effect decreased when specific situations (e.g., free housecleaning service) lessened the ownership distance, or when people believed that a previous owner’s trace would benefit them in obtaining their consumption goal (studies 3 and 4). The analysis of actual transactions from eBay.com also confirms this effect (study 5). We conclude with a discussion of the substantive theoretical and managerial implications of this research.     

The impact of COVID-19 on consumer evaluation of authentic advertising messages

This study investigates the relationship between the COVID-19 threat and consumer evaluation of a product with authenticity appeals in advertisements. We propose that threatening situations like COVID-19 motivate consumers to lower their uncertainty and increase their preference for products with authentic advertising messages. Because individuals react differently to threatening environments according to their early-life experiences, commonly reflected in childhood socioeconomic status, we examined whether childhood socioeconomic status moderates the relationship between threat and consumer evaluation of authenticity in advertisements. First, secondary data from Google Trends provided empirical support for our predictions. In additional experimental studies, participants evaluated different target products in four studies that either manipulated (Studies 2 and 3) or measured (Studies 4 and 5) COVID-19 threat. Our results provide converging evidence that consumers positively evaluate products with authentic advertising messages under the COVID-19 threat. Consumers' motivation to lower their uncertainty underlies the effect of COVID-19 threat on their evaluation of authentic messages (Study 3). This attempt to reduce uncertainty is more likely to occur for consumers with relatively higher childhood socioeconomic status (Studies 4 and 5). These findings suggest that using authenticity appeals during a pandemic could effectively reduce consumers' perceived uncertainty and generate positive consumer evaluations.