When should I have it?: the effect of representation and processing concreteness on consumer impatience

Consumers frequently make decisions about when to consume a product and what costs to incur to obtain sooner consumption. Prior research has demonstrated that consumers show decreasing levels of impatience as the length of delay for consumption gets longer (i.e., present-biased preferences or hyperbolic discounting). In this dissertation, I explore the roots of decreasing consumer impatience and identify factors that lead to differential sensitivity to time horizon. In two essays, I show that the concreteness of mental representation and of processing are two possible mechanisms behind present-biased preferences. I hypothesize that present-biased preferences are observed when mental representations and processing are concrete, and that this effect is attenuated when consumers think more abstractly. In essay 1, I examine the role of representational concreteness by making use of two temporal frames (delay and expedite) that differ in their associated degree of concreteness. I show that (1) defer and expedite frames are associated with different patterns of discounting, (2) the two frames are associated with differential levels of outcome concreteness, and (3) this variation in outcome concreteness can explain the difference in present bias. In essay 2, I explore the role of processing concreteness (e.g., focusing on the big picture or on the details) in consumers' present bias. I hypothesize and show that consumers who think more concretely will be more prone to hyperbolic-like discounting compared to those who think abstractly - even when processing concreteness is manipulated using an unrelated task. Taken together, this dissertation provides a better understanding of the psychological mechanisms driving intertemporal preferences in general and present-biased preferences in specific. I examine the cognitive underpinnings of present-biased preferences and use temporal framing (Essay 1) and prior decisions (Essay 2) to establish concreteness of outcomes and processing as potential sources of decreasing impatience. The results reported in this dissertation extend the current theorization in intertemporal choice, temporal framing, mental construal, and sequential decisions. These findings suggest that conceptualizing concreteness at multiple levels helps explain not only hyperbolic discounting, but also adds to the understanding of several related consumer behavior phenomena

Between a Rock and a Hard Place: Desirability Based Attenuation of the Attraction Effect

Many important decisions involve choosing between options that are undesirable -the proverbial "lesser of two evils." Five studies show that attraction effect is observed in desirable domains, but not in undesirable domains. We further demonstrate that a processing shift in desirable domains is the main driver of this asymmetric effect. [to cite]

Unstuck from the concrete: Carryover effects of abstract mindsets in intertemporal preferences. Organizational Behavior and Human Decision Processes, 113, 112–126. Packer et al

a b s t r a c t Prior research has demonstrated that individuals show decreasing levels of impatience as the delay of consumption gets longer (i.e., present-bias). We examine the psychological underpinnings of such present-biased preferences by conceptualizing timing decisions as part of a series of judgments. We propose that shifts in the abstractness of processing (focusing on details vs. broad aspects) triggered by aspects of an earlier (related or unrelated) decision systematically influence the degree of present-bias in subsequent decisions. The results of five studies show that the processing mindset (concrete vs. abstract) evoked in previous related and unrelated decisions influences the level of construal evoked in subsequent decisions and moderates the extent of present-bias without changes in affect. We further show the default mindset is concrete (displaying high present-bias) and thus the effect of construal is eliminated when the subsequent intertemporal task is inherently more abstract. Published by Elsevier Inc

Unstuck from the concrete: Carryover effects of abstract mindsets in intertemporal preferences

Prior research has demonstrated that individuals show decreasing levels of impatience as the delay of consumption gets longer (i.e., present-bias). We examine the psychological underpinnings of such present-biased preferences by conceptualizing timing decisions as part of a series of judgments. We propose that shifts in the abstractness of processing (focusing on details vs. broad aspects) triggered by aspects of an earlier (related or unrelated) decision systematically influence the degree of present-bias in subsequent decisions. The results of five studies show that the processing mindset (concrete vs. abstract) evoked in previous related and unrelated decisions influences the level of construal evoked in subsequent decisions and moderates the extent of present-bias without changes in affect. We further show the default mindset is concrete (displaying high present-bias) and thus the effect of construal is eliminated when the subsequent intertemporal task is inherently more abstract.Intertemporal preferences Mindset abstraction Present-bias Discounting Decision-making

How behavioral decision research can enhance consumer welfare: From freedom of choice to paternalistic intervention

Behavioral decision research, Consumers, Interventions,