Compromise and attraction effects under prevention and promotion focus

There is ample evidence that consumer preferences are context dependent. In particular, they are sensitive to the characteristics of the alternatives present in the choice set. The behavioral decision-making literature refers to the changes in share when another alternative is added to the choice set as 'context effects'. Two types of context effects, 'attraction' and 'compromise', are particularly important and have received considerable attention from decision researchers over the years. The attraction effect refers to the finding that adding an alternative which is inferior to another alternative in the choice set increases the share of the relatively superior alternative. The compromise effect, on the other hand, is observed when an alternative becomes more attractive when it is presented as a middle option in a choice set than when it is presented as an extreme option. Adopting a motivational approach to consumer decision-making, and building on regulatory focus theory, the present thesis hypothesizes that (1) consumers' susceptibility to the compromise effect is greater when the prevention system of self-regulation is activated than when the promotion system is activated; (2) consumers' susceptibility to the attraction effect is greater under promotion focus than under prevention focus; (3) consumers' need to justify their choices will increase their sensitivity to the compromise effect under prevention focus but will decrease it under promotion focus; (4) consumers' need to justify their choices will increase their sensitivity to the attraction effect under promotion focus but will decrease it under prevention focus; and (5) products that are associated with a prevention concern will be more attractive when positioned as compromise options than as asymmetrically dominant options, whereas the opposite is true for products that are associated with a promotion concern. Three experimental studies are conducted to test these hypotheses. The data are analyzed using hierarchical linear and non-linear modeling techniques. The results provide full support for hypotheses 1, 3, 4, and 5, and partial support for hypothesis 2. Theoretical and practical implications of these findings are discussed along with the study's limitations, and considerations for future research

A model of consumer preference for interpersonal information search

This study examines the effect of some potential influencers on consumers' preference for interpersonal information search. A model offering individual and situational predictors of consumer preference was tested using structural equation modeling. The individual variables included people's susceptibility to social influence, their need for cognition, and their self-confidence. The situational variables included respondents' product knowledge, and their perceived risk. A self-administered survey was distributed in English and French to a sample of respondents in the greater Montreal area. All three individual variables influenced significantly consumers' preference for interpersonal information search. As for the situational variables, only product knowledge had a significant effect on the dependent variable. The moderating effect of culture was also tested and yielded non-significant results suggesting that consumers' collectivistic orientation does not moderate the impact of the predictor variables on the dependent variable. The results also suggested that women have a higher preference for interpersonal sources than men and that income is negatively related to consumer preference for interpersonal information search

Compromise and Attraction Effects under Prevention and Promotion Motivations

This article examines the influence of consumers’ motivational orientations on their susceptibilities to context effects. Prevention‐focused consumers were found to be more sensitive to the compromise effect and less sensitive to the attraction effect than promotion‐focused consumers. In addition, the effects of promotion and prevention motivations were amplified when consumers were asked to justify their choices. Finally, we found that products associated with a prevention concern are more attractive when presented as compromise than asymmetrically dominant options, whereas products associated with a promotion concern are more attractive when presented as asymmetrically dominant options than compromise options

Regulatory fit from attribute-based versus alternative-based processing in decision making

This is a post print file as per the journal publisher's requirements.This paper discusses the fit between attribute-based versus alternative-based processing and regulatory focus, and its impact on decision outcome valuation. Attribute-based processing was found to occur more frequently under prevention focus, whereas alternative-based processing occurred more frequently under promotion focus. The fit between prevention/promotion focus and attribute-based/alternative-based processing was found to enhance satisfaction with choices and the perceived monetary value of chosen options. Moreover, the effect of fit on outcome valuation was found to be mediated by ease of processing. Finally, the effects of fit on ease of processing and outcome valuation disappeared when consumers first practiced to process information based on either attributes or alternatives.Ye

Misperception of Multiple Risks in Medical Decision Making

Data and Analysis Script

The influence of country image structure on consumer evaluations of foreign products

Purpose - This study was designed to extend knowledge of cognitive processing of country of origin cues by refining the concept of country image and investigating its role in product evaluations. Design/methodology/approach - Data were collected from residents of a large North American metropolitan. A total of 436 usable questionnaires were returned. Data analysis was conducted using the EQS structural equation modeling software Findings - We found that country image is a three-dimensional concept consisting of cognitive, affective, and conative components. We modeled the relationships among country image, product beliefs, and product evaluations, and found that country image and product beliefs affect product evaluations simultaneously regardless of consumers' level of familiarity with a country's products. Findings also indicated that the structure of country image influences product evaluations both directly and indirectly through product beliefs. Consistent with affect transfer theory, the results showed that when a country's image has a strong affective component, its direct influence on product evaluations is stronger than its influence on product beliefs. Alternatively, when a country's image has a strong cognitive component, its direct influence on product evaluations was smaller than its influence on product beliefs. Research lim