An Empirical Investigation into the Excessive-Choice Effect

Recent marketing and psychological studies have shown that more choice does not always benefit consumers. This excessive-choice effect (ECE) is examined empirically using food items in four experiments. The first experiment investigates whether people would voluntarily reduce their choice-set size. The second seeks to replicate previous experimental results. The third and fourth experiments employ nonhypothetical Becker-DeGroot-Marschak (BDM) soda auctions and hypothetical ground beef choice experiments to further detect the prevalence of the ECE in alternative settings and explore the role of personality in decision tasks. Results suggest the ECE exists, but is less prevalent than previous studies suggest.     

The effects of multimedia on cognitive aspects of decision-making

Businesses make multimedia presentations, combining film clips and text, which could be made at less cost using a single medium. Extending prior findings that film clips in multimedia presentations can impact affective states (e.g., [Rose J. Behavioral decision aid research: Decision aid use and effects. In Arnold and Sutton, Research Accounting as an Information Systems Discipline (ch 6). Sarasota: AAA; 2002]), our study examines how multimedia presentations affect decision-making cognitively (rather than affectively). Participants performed two types of tasks using information presented to them in two single medium modes (text-only and film-only) and a multimedia mode (combined text/film). Based on theories of presentation modes/modalities, media richness, and information overload research, we hypothesize the effects of different presentation modes (single medium versus multimedia), task familiarity (familiar versus unfamiliar), and information overload (above versus below overload) on decision-makers' consistency with, compliance with, and willingness to apply externally provided information processing rules concerning the solving of various types of tasks. Results provide full to partial support for the predicted effects of task familiarity and information overload on consistency, compliance and willingness. Specifically, multimedia presentations increase the willingness to apply externally provided rules but decrease the consistency with which rules are applied to tasks. Overall, our study suggests that decision-makers are reluctant to use externally provided instructions, instead of their own internally learned rules, especially as their understanding of the task at hand increases. Such understanding is enhanced by high task familiarity, clear presentation formats (i.e., single medium), and low information load. This study has implications for businesses trying to decide how much to invest in multimedia presentations, and also on organizations and society at large as they frequently direct individuals to follow various types of instructions.     

Innovation pathway to profitability: the role of entrepreneurial orientation and marketing capabilities

Drawing from the marketing capabilities and innovation literatures, we identify aprocess by which a firm’s entrepreneurial orientation impacts profits and show that it is dependent on marketing capabilities. Using a half-longitudinal design we integrate survey data with performance metrics over two time periods, from a sample of 190 firms. While the effect of entrepreneurial orientation (EO) on innovation is enhanced by architectural marketing capabilities, the effect of innovation outcomes on profits is enhanced by specialized marketing capabilities. Ultimately, the pathway from EO to performance, mediated by innovation, is positively significant at higher levels of both marketing capabilities. The results uncovered using Bayesian conditional process modeling, are robust to alternate model specifications, endogeneity tests, and provide insights into the capabilities-based understanding of entrepreneurism-marketing interface. We discuss resource allocation implications for managers as they attempt to maximize profits through innovation.     

Market Alternatives, Third Party Intervention, and Third Party Informedness in Negotiation

Negotiation is one possible mechanism for setting transfer prices when no unique transfer price is obviously correct, allowing divisional managers to run their divisions with some degree of autonomy. This study examines the effects of market alternatives, third party intervention and third party informedness in transfer pricing negotiation.Experiment 1 examined the effects of market alternatives in a fully crossed design of buyer and seller's Best Alternatives To a Negotiated Agreement (BATNA) at four levels (no, low, medium, or high). Experiment 2 examined the effects of third party intervention with reference to role (binding vs. nonbinding) and informedness (informed vs. uninformed).Results of Experiment 1 indicated that both the existence and level of market alternatives affected reservation prices, expected profits, aspiration levels, and individual profits. Dyads with unequal BATNAs did not obtain higher joint profits than those with equal BATNAs, while dyads with unequal BATNAs distributed profits more unevenly between negotiators than dyads with equal BATNAs. Results of Experiment 2 indicated that only making the third party's role binding had an effect on joint profits. However, the presence of a third party and both the role and informedness manipulations affected resource distribution.