The Background Contrast Effect occurs when the trade-off value between attributes in a first choice influences subsequent choice. We explore the role of decision-making thoughtfulness in seeking to understand when and why this effect occurs. Experiments 1 and 2 provide evidence that the Background Contrast Effect emerges more under thoughtful than under nonthoughtful conditions. Experiment …
Tag Archives: Behavioral Decision Theory
Raghubir, P., & Srivastava, J. (2002). Effect of face value on product valuation in foreign currencies. Journal of Consumer Research, 29(3), 335-347.
This article examines systematic differences in people’s spending behavior when using foreign currencies. Rather than overspend or underspend in general, we show that individuals’ valuation of a product in an unfamiliar foreign currency is biased toward its nominal value—its face value—with inadequate adjustment for the exchange rate. This leads to underspending when the face value …
Nowlis, S. M., Mandel, N., &McCabe, D. B. (2004). The effect of a delay between choice and consumption on consumption enjoyment. Journal of Consumer Research, 31(3), 502-510.
A consumer choosing a product must often wait before consuming it. In this article, we consider the consequences of waiting on consumption enjoyment. We propose that the effect of a delay on consumption enjoyment depends on both the negative utility of the wait itself and on the positive utility of anticipating a pleasant consumption experience. …
Soman, D. (2001). Effects of payment mechanism on spending behavior: The role of rehearsal and immediacy of payments. Journal of Consumer Research, 27(4), 460-474.
Past expenses have been shown to influence future spending behavior by depleting available budgets. However, a prerequisite for this relationship is the accurate recall of past payments and the experiencing of the full aversive impact associated with them. This article shows that the use of different payment mechanisms influences both these factors and hence moderates …
Liu, W., &Aaker, J. (2008). The happiness of giving: The time-ask effect. Journal of consumer research, 35(3), 543-557.
This research examines how a focus on time versus money can lead to two distinct mind-sets that affect consumers’ willingness to donate to charitable causes. The results of three experiments, conducted both in the lab and in the field, reveal that asking individuals to think about “how much time they would like to donate” (vs. …
Bertini, M., Ofek, E., &Ariely, D. (2009). The impact of add-on features on consumer product evaluations. Journal of Consumer Research, 36(1), 17-28.
The research presented in this article provides evidence that add-on features sold to enhance a product can be more than just discretionary benefits. We argue that consumers draw inferences from the mere availability of add-ons, which in turn lead to significant changes in the perceived utility of the base good itself. Specifically, we propose that …
Carmon, Z., &Ariely, D. (2000). Focusing on the forgone: How value can appear so different to buyers and sellers. Journal of consumer research, 27(3), 360-370.
We propose that buying- and selling-price estimates reflect a focus on what the consumer forgoes in the potential exchange and that this notion offers insight into the well-known difference between those two types of value assessment. Buyers and sellers differ not simply in their valuation of the same item but also in how they assess …
Frederick, S., Novemsky, N., Wang, J., Dhar, R., &Nowlis, S. (2009). Opportunity cost neglect. Journal of Consumer Research, 36(4), 553-561.
To properly consider the opportunity costs of a purchase, consumers must actively generate the alternatives that it would displace. The current research suggests that consumers often fail to do so. Even under conditions promoting cognitive effort, various cues to consider opportunity costs reduce purchase rates and increase the choice share of more affordable options. …