Endowment vs. Previous Preferences: Which Cue Drives Consumer Decision-Making?

2019 ◽  
Author(s):  
Anna Katharina Spälti ◽  
Mark John Brandt ◽  
Marcel Zeelenberg
Keyword(s):  
Decision Making ◽  
Brand Loyalty ◽  
Memory Retrieval ◽  
Endowment Effect ◽  
Decision Makers ◽  
Consumer Decision Making ◽  
Consumer Decision ◽  
Alternative Option ◽  
Main Effects ◽  
The Relationship

Research on the endowment effect has shown that simply endowing people with a good can increase the salience of the good and make it more likely to be chosen over alternatives. Other lines of research suggest that previous preferences are hard to override and may be chronically accessible to decision makers. We investigate the relationship between previous preferences (i.e. brand loyalty and purchasing habits) and the endowment effect in a switching paradigm and measure participants’ memory retrieval orders to assess the salience of choice options. In Experiment 1 (N = 202), participants interacted with a smartphone of a brand either in line with or contradicting their brand loyalty. We find that participants high in brand loyalty are most likely to be influenced by the experimental condition than those low in brand loyalty. In Experiment 2 (N = 486), we endowed participants with a can of Coke or Lipton and measured their purchasing habits of these products. We find main effects of both endowment and purchasing habits. In both experiments, the salience of cues was affected by both previous preferences as well as endowment. We show that the endowment effect is not completely immune to previous preferences: It can be weakened for people with (strong) previous preferences in favor of an alternative option or boosted for people with (high) previous preferences in favor of the endowed option.

Consumer decision-making in a retail store: the role of mental imagery and gender difference

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jung-Hwan Kim ◽  
Minjeong Kim ◽  
Jungmin Yoo ◽  
Minjung Park
Keyword(s):  
Decision Making ◽  
Mental Imagery ◽  
Decision Making Process ◽  
Consumer Decision Making ◽  
Consumer Decision ◽  
Content Type ◽  
Perceived Ownership ◽  
Decision Satisfaction ◽  
The Relationship

PurposeThe purpose of the study is to investigate how mental imagery evoked from sensory in-store experience influences consumer anticipatory emotion, perceived ownership and decision satisfaction which eventually impact positive consumer responses such as behavioural intent. In this study, gender difference is proposed as a moderator to completely understand the role of mental imagery in the in-store decision-making process.Design/methodology/approachUsing a market research agency in South Korea, an online survey was employed to collect data. A total of 455 useable respondents (men = 224 and women = 231) largely living in the two most populous provinces in South Korea (i.e. Seoul and Gyeonggi provinces) completed the survey. A number of path analyses were conducted to test hypotheses.FindingsThe results of the study showed that mental imagery evoked from sensory product experience played a critical part in facilitating the consumer decision-making process by influencing anticipatory emotion and perceived ownership. The relationship among anticipatory emotion, perceived ownership, decision satisfaction and behavioural intent was significant except for the relationship between perceived ownership and behavioural intent. This study further indicated that the way mental imagery influences the in-store decision-making process differs between men and women.Originality/valueThe effect of mental imagery in a physical retail context is largely ignored. This study addressed the crucial role of mental imagery in a physical apparel retail setting and examined its impact on consumer decision-making processes. By exploring how to enhance consumers' in-store sensory shopping experiences through mental imagery to influence their positive shopping outcomes, this study offers vital insights into how retailers operating physical stores can successfully utilize their stores.

Mere Exposure and the Endowment Effect on Consumer Decision Making

2007 ◽  
Vol 141 (2) ◽  
pp. 117-125 ◽  
Author(s):  
Gail Tom ◽  
Carolyn Nelson ◽  
Tamara Srzentic ◽  
Ryan King
Keyword(s):  
Decision Making ◽  
Mere Exposure ◽  
Endowment Effect ◽  
Consumer Decision Making ◽  
Consumer Decision

scholarly journals Research on the Influence of ODM Mode on Consumer Decision

2021 ◽  
Vol 96 ◽  
pp. 04009
Author(s):  
Ming Tian
Keyword(s):  
Decision Making ◽  
Consumer Participation ◽  
Consumer Decision Making ◽  
Regulatory Effect ◽  
Consumer Decision ◽  
Theoretical Support ◽  
Marketing Models ◽  
Huge Impact ◽  
Consumption Model ◽  
The Relationship

As an emerging new consumption model, the ODM e-commerce model accurately locates consumers and uses consumers' shopping needs as the marketing strategy of the e-commerce platform. This is a huge impact on traditional physical sales and existing e-commerce models. In order to explore the relationship between ODM model products and consumer decision-making, this article takes the NetEase selected represented by ODM e-commerce model as the research object. The results found that there is a significant positive correlation between the types of commodities and ODM model and consumer decision-making. Consumer participation has a positive regulatory effect on the relationship between ODM model and consumer decision-making. The research conclusions provide theoretical support for the ODM e-commerce model to increase user stickiness, increase consumer decision-making weight, and expand marketing models.

Understanding the Link between Consumer Decision Making Style and Perceived Risk in Online Business

2011 ◽  
Vol 204-210 ◽  
pp. 1082-1085
Author(s):  
Wei Wei Yu ◽  
Kun Feng Fu ◽  
Gao Fang Cao ◽  
Ji Hong Li ◽  
Bin Xu ◽  
...  
Keyword(s):  
Decision Making ◽  
Perceived Risk ◽  
Online Shopping ◽  
The Other ◽  
Consumer Decision Making ◽  
Consumer Decision ◽  
Daily Lives ◽  
Other Hand ◽  
Online Business ◽  
The Relationship

online shopping is becoming more and more common in our daily lives. There are many studies in this field, in which perceived risk is proved to be a very important factor when people considering online business. But the relationship between perceived risk and consumer decision making style has not been studied yet. We use SEM to find out the link between perceived risk and consumer decision making style. As a result, we found fashion and brand style can reduce perceived risk, on the other hand perfect and customary style can increase perceived risk.

scholarly journals The Effect of Brand Value on Consumers' Purchasing Decisions: An Application in Turkey

2021 ◽  
pp. 79-92
Author(s):  
Şerife Keskin ◽  
Yakup Durmaz
Keyword(s):  
Decision Making ◽  
Brand Loyalty ◽  
Perceived Quality ◽  
Brand Awareness ◽  
Brand Value ◽  
Consumer Decision Making ◽  
Purchasing Decisions ◽  
Consumption Decisions ◽  
Brand Values ◽  
The Relationship

The purpose of this research is to determine the relationship between the purchasing decisions of consumers and their brand values depending on the factors that affect their wishes, desires, and needs while purchasing a product. Another purpose of the study is to determine whether the demographics of the participants change the opinions of the participants on purchasing decisions and brand values. In order to collect data 5-Point Likert type Consumer Decision-Making, Brand Loyalty, Perceived Quality, Brand Awareness and Brand Connotations Scales consisting of 22 questions, and 9 dimensions in addition to the Brand Value Scale including 19 items and 4 sub-dimensions were conducted on 400 consumers living in the Diyarbakır province of Turkey. The research is important both for consumers and businesses in terms of explaining how consumers are affected by brand value and make their consumption decisions.

Visual Positioning and the Relationship to Consumer Decision Making

1996 ◽  
Author(s):  
Bennett Cherry ◽  
Lisa D. Ordonez ◽  
Susan Heckler ◽  
Barry Sheppard
Keyword(s):  
Decision Making ◽  
Consumer Decision Making ◽  
Consumer Decision ◽  
Visual Positioning ◽  
The Relationship

Thai consumers’ purchase decisions and private label brands

2015 ◽  
Vol 10 (1) ◽  
pp. 102-121 ◽  
Author(s):  
Kandapa Thanasuta
Keyword(s):  
Decision Making ◽  
Private Label ◽  
Consumer Decision Making ◽  
Consumer Decision ◽  
Content Type ◽  
Product Categories ◽  
Value Consciousness ◽  
Private Label Brands ◽  
The Relationship ◽  
Private Label Products

Purpose – Private label brands have achieved double-digit growth in the Thai market. To expand market share, private label brands need to identify clearly what triggers consumer purchases. The purpose of this paper is to investigate the relationship between consumer decision-making styles and actual purchases of private label products in a Thai market context, using price consciousness, quality consciousness, brand consciousness, value consciousness, and risk perception as factors for investigation. Design/methodology/approach – Responses from a total of 240 respondents from four product categories were collected through mall intercepts in five hypermarkets and supermarkets in Bangkok, and a regression-based model was employed to identify the associations. Findings – The results indicate a significant relationship between price-conscious and brand-conscious consumers, and private label purchases and show that the relationship between quality-conscious, value-conscious, and risk-adverse consumers and private label purchases is insignificant. It concludes that price-conscious consumers are the ones most likely to purchase private label products in low-differentiation categories. An opposite relationship prevails for consumers who are brand conscious in low-differentiation, high-risk, and low-risk categories. Research limitations/implications – The outcomes of this research suggest that private label brands should maintain a low-price strategy while striving for continuous improvement in quality to capture additional quality- and value-conscious consumers. It also suggests that national brands invest in brand-building strategies rather than competing on price. Originality/value – This study enhances an understanding of consumer decision-making characteristics for actual private label purchases rather than the intention to purchase and is useful in suggesting an alternative to socio-economic factors as a method of identifying private label purchasers.

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