assistance of students who participated in data collection and analysis. 2 The Effect of Stating ... more assistance of students who participated in data collection and analysis. 2 The Effect of Stating Expectations on Customer Satisfaction and Shopping Experience Customers ’ expectations are key determinants of their consumption experiences, satisfaction, and loyalty. The authors examine alternative theoretical predictions regarding the impact of stating expectations before purchase on post-purchase perceptions of the shopping experience and the firm. In particular, the authors suggest that asking customers to articulate their expectations can backfire and lead to lower post-purchase evaluations of the shopping and consumption experience. A series of field experiments indicate that, compared to a control group, stating prepurchase expectations leads customers to focus on negative aspects of the shopping experience and perceive the same performance more negatively. The tendency to rate shopping experiences less favorably produced by stating pre-purchase expectations is inconsistent with...
This paper investigates the processes underlying consumers' memory-based store price judgments. T... more This paper investigates the processes underlying consumers' memory-based store price judgments. The numerosity heuristic implies that the greater the number of relatively lower priced products at a store that consumers can recall, the lower will be their overall price image of the store. That is, people use the number of recalled low-price products to judge the overall store price image. We show that this expectation holds only for knowledgeable consumers. Instead, less knowledgeable consumers use the ease with which low-price products are recalled (i.e., the availability heuristic) as a cue to make store price judgments. Therefore, the fewer low-price products they recall, the easier their recall task, and the lower their price perceptions of the store. Field studies using different manipulations tested and confirmed these predictions. Managerial implications for retailers are offered. Theoretical implications for behavioral price perceptions, memory-based judgments, and the use of heuristic cues are also discussed.
This research investigated contextual effects on consumer cue-utilization policies in making judg... more This research investigated contextual effects on consumer cue-utilization policies in making judgments under uncertainty. Two studies suggested that the utilization of base and case information varied as a function of the numerical values of the cues and covaried with the changes in the perceived relevance of each cue. The second study showed that individual subjects employed different cue-utilization policies in problems that were formally identical but differed in surface detail. A third study experimentally manipulated two factors that influence perceived relevance and explored their effects on cue utilization. All three studies revealed evidence inconsistent with previous research on underutilization of base-rate information.
Page 1. 11 Pririncr-TJnnrinwiìr ■' \^KS I %/\SII VI/X** \rì Tioht rivi... more Page 1. 11 Pririncr-TJnnrinwiìr ■' \^KS I %/\SII VI/X** \rì Tioht riviri коиплпгпгпI Models CHEZY OFIR and RUSSELL S. WINER Introduction A major focus of academic research in marketing has been on what have traditionally been referred to as the marketing mix variables. ...
This research illustrates the power of reputation, such as that embodied in brand names, demonstr... more This research illustrates the power of reputation, such as that embodied in brand names, demonstrating that names can enhance objective product efficacy. Study participants facing a glaring light were asked to read printed words as accurately and as quickly as they could, receiving compensation proportional to their performance. Those wearing sunglasses tagged Ray-Ban made fewer errors, yet read more quickly, than those wearing the identical pair of sunglasses when tagged Mango (a less prestigious brand). Similarly, ear-muffs blocked noise more effectively, and chamomile tea improved mental focus more, when otherwise identical target products carried more reputable names.
Journal of Personality and Social Psychology, 1989
ABSTRACT In two experiments using "Bayesian" probability judgment tasks, we exa... more ABSTRACT In two experiments using "Bayesian" probability judgment tasks, we examined the effects of numerical values of base rates and case cues, the degree of consistency in these values, and the narrowness of the populations to which these cues are pertained. Both experiments showed that the "base-rate fallacy" is observed only when (a) one combines base and case cues that lead to dissimilar judgments when each is considered alone, and (b) the case cue is high in numerical value, reflecting high diagnosticity of the case source. We obtained similar results in within- and between-subjects versions of the first experiment and in a second between-subjects experiment using a different problem. We conclude that in tasks such as those studied, the base-rate fallacy is far less general than has been suggested. The appearance of such a fallacy is produced when the numerical value of the case cue is held constant at high levels, as is typical in most published research on this topic. However, the observed insensitivity to base rates disappears when the value of the case cue is held constant at low levels. (PsycINFO Database Record (c) 2012 APA, all rights reserved)
This paper investigates the processes underlying consumers' memory-based store price judgmen... more This paper investigates the processes underlying consumers' memory-based store price judgments. The numerosity heuristic implies that the greater the number of relatively lower priced products at a store that consumers can recall, the lower will be their overall price image of the store. That is, people use the number of recalled low-price products to judge the overall store price image. We show that this expectation holds only for knowledgeable consumers. Instead, less knowledgeable consumers use the ease with which low-price products are recalled (i.e., the availability heuristic) as a cue to make store price judgments. Therefore, the fewer low-price products they recall, the easier their recall task, and the lower their price perceptions of the store. Field studies using different manipulations tested and confirmed these predictions. Managerial implications for retailers are offered. Theoretical implications for behavioral price perceptions, memory-based judgments, and the u...
Branding Placebos: Brand Prestige Can Improve Product Efficacy Moty Amar School of Business, Ono ... more Branding Placebos: Brand Prestige Can Improve Product Efficacy Moty Amar School of Business, Ono Academic College, and Duke University Dan Ariely Duke University Maya Bar-Hillel The Hebrew University Ziv Carmon INSEAD Chezy Ofir The Hebrew University Page 2. ...
Http Dx Doi Org 10 1509 Jmkr 38 2 170 18841, May 29, 2013
Customers' evaluations of quality and satisfaction are critical inputs in the development of ... more Customers' evaluations of quality and satisfaction are critical inputs in the development of marketing strategies. Given the increasingly common practice of asking for such evaluations, buyers of products (e.g., cars) and services (e.g., hotels, educational programs/courses) often know in advance that they subsequently will be asked to provide their evaluations. In a series of field and laboratory studies, the authors demonstrate that expecting to evaluate leads to less favorable quality and satisfaction evaluations and reduces customers' willingness to purchase and recommend the evaluated services. The negative bias of expected evaluations is observed when actual quality is either low or high, and it persists even when buyers are told explicitly to consider both the positive and negative aspects. The authors examine three possible explanations for this systematic bias, which are referred to as negativity enhancement, role expectation, and vigilant processing. The findings are most consistent with the negativity enhancement account, indicating that unless buyers begin the evaluation task with low expectations, they tend to focus during consumption primarily on negative aspects of product/service quality. The article concludes with a discussion of the theoretical and practical implications of this research.
assistance of students who participated in data collection and analysis. 2 The Effect of Stating ... more assistance of students who participated in data collection and analysis. 2 The Effect of Stating Expectations on Customer Satisfaction and Shopping Experience Customers ’ expectations are key determinants of their consumption experiences, satisfaction, and loyalty. The authors examine alternative theoretical predictions regarding the impact of stating expectations before purchase on post-purchase perceptions of the shopping experience and the firm. In particular, the authors suggest that asking customers to articulate their expectations can backfire and lead to lower post-purchase evaluations of the shopping and consumption experience. A series of field experiments indicate that, compared to a control group, stating prepurchase expectations leads customers to focus on negative aspects of the shopping experience and perceive the same performance more negatively. The tendency to rate shopping experiences less favorably produced by stating pre-purchase expectations is inconsistent with...
This paper investigates the processes underlying consumers' memory-based store price judgments. T... more This paper investigates the processes underlying consumers' memory-based store price judgments. The numerosity heuristic implies that the greater the number of relatively lower priced products at a store that consumers can recall, the lower will be their overall price image of the store. That is, people use the number of recalled low-price products to judge the overall store price image. We show that this expectation holds only for knowledgeable consumers. Instead, less knowledgeable consumers use the ease with which low-price products are recalled (i.e., the availability heuristic) as a cue to make store price judgments. Therefore, the fewer low-price products they recall, the easier their recall task, and the lower their price perceptions of the store. Field studies using different manipulations tested and confirmed these predictions. Managerial implications for retailers are offered. Theoretical implications for behavioral price perceptions, memory-based judgments, and the use of heuristic cues are also discussed.
This research investigated contextual effects on consumer cue-utilization policies in making judg... more This research investigated contextual effects on consumer cue-utilization policies in making judgments under uncertainty. Two studies suggested that the utilization of base and case information varied as a function of the numerical values of the cues and covaried with the changes in the perceived relevance of each cue. The second study showed that individual subjects employed different cue-utilization policies in problems that were formally identical but differed in surface detail. A third study experimentally manipulated two factors that influence perceived relevance and explored their effects on cue utilization. All three studies revealed evidence inconsistent with previous research on underutilization of base-rate information.
Page 1. 11 Pririncr-TJnnrinwiìr ■' \^KS I %/\SII VI/X** \rì Tioht rivi... more Page 1. 11 Pririncr-TJnnrinwiìr ■' \^KS I %/\SII VI/X** \rì Tioht riviri коиплпгпгпI Models CHEZY OFIR and RUSSELL S. WINER Introduction A major focus of academic research in marketing has been on what have traditionally been referred to as the marketing mix variables. ...
This research illustrates the power of reputation, such as that embodied in brand names, demonstr... more This research illustrates the power of reputation, such as that embodied in brand names, demonstrating that names can enhance objective product efficacy. Study participants facing a glaring light were asked to read printed words as accurately and as quickly as they could, receiving compensation proportional to their performance. Those wearing sunglasses tagged Ray-Ban made fewer errors, yet read more quickly, than those wearing the identical pair of sunglasses when tagged Mango (a less prestigious brand). Similarly, ear-muffs blocked noise more effectively, and chamomile tea improved mental focus more, when otherwise identical target products carried more reputable names.
Journal of Personality and Social Psychology, 1989
ABSTRACT In two experiments using "Bayesian" probability judgment tasks, we exa... more ABSTRACT In two experiments using "Bayesian" probability judgment tasks, we examined the effects of numerical values of base rates and case cues, the degree of consistency in these values, and the narrowness of the populations to which these cues are pertained. Both experiments showed that the "base-rate fallacy" is observed only when (a) one combines base and case cues that lead to dissimilar judgments when each is considered alone, and (b) the case cue is high in numerical value, reflecting high diagnosticity of the case source. We obtained similar results in within- and between-subjects versions of the first experiment and in a second between-subjects experiment using a different problem. We conclude that in tasks such as those studied, the base-rate fallacy is far less general than has been suggested. The appearance of such a fallacy is produced when the numerical value of the case cue is held constant at high levels, as is typical in most published research on this topic. However, the observed insensitivity to base rates disappears when the value of the case cue is held constant at low levels. (PsycINFO Database Record (c) 2012 APA, all rights reserved)
This paper investigates the processes underlying consumers' memory-based store price judgmen... more This paper investigates the processes underlying consumers' memory-based store price judgments. The numerosity heuristic implies that the greater the number of relatively lower priced products at a store that consumers can recall, the lower will be their overall price image of the store. That is, people use the number of recalled low-price products to judge the overall store price image. We show that this expectation holds only for knowledgeable consumers. Instead, less knowledgeable consumers use the ease with which low-price products are recalled (i.e., the availability heuristic) as a cue to make store price judgments. Therefore, the fewer low-price products they recall, the easier their recall task, and the lower their price perceptions of the store. Field studies using different manipulations tested and confirmed these predictions. Managerial implications for retailers are offered. Theoretical implications for behavioral price perceptions, memory-based judgments, and the u...
Branding Placebos: Brand Prestige Can Improve Product Efficacy Moty Amar School of Business, Ono ... more Branding Placebos: Brand Prestige Can Improve Product Efficacy Moty Amar School of Business, Ono Academic College, and Duke University Dan Ariely Duke University Maya Bar-Hillel The Hebrew University Ziv Carmon INSEAD Chezy Ofir The Hebrew University Page 2. ...
Http Dx Doi Org 10 1509 Jmkr 38 2 170 18841, May 29, 2013
Customers' evaluations of quality and satisfaction are critical inputs in the development of ... more Customers' evaluations of quality and satisfaction are critical inputs in the development of marketing strategies. Given the increasingly common practice of asking for such evaluations, buyers of products (e.g., cars) and services (e.g., hotels, educational programs/courses) often know in advance that they subsequently will be asked to provide their evaluations. In a series of field and laboratory studies, the authors demonstrate that expecting to evaluate leads to less favorable quality and satisfaction evaluations and reduces customers' willingness to purchase and recommend the evaluated services. The negative bias of expected evaluations is observed when actual quality is either low or high, and it persists even when buyers are told explicitly to consider both the positive and negative aspects. The authors examine three possible explanations for this systematic bias, which are referred to as negativity enhancement, role expectation, and vigilant processing. The findings are most consistent with the negativity enhancement account, indicating that unless buyers begin the evaluation task with low expectations, they tend to focus during consumption primarily on negative aspects of product/service quality. The article concludes with a discussion of the theoretical and practical implications of this research.
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