Study on Compromise Effect on Consumers Behavior

2021 ◽  
pp. 68-89
Author(s):  
Markus Surkamta Eric Santosa
Keyword(s):  
2021 ◽  
Author(s):  
Liang Guo

Many phenomena of preference construction demonstrate a violation of the rationality premise in classical economic theories. One of the most well-known examples of preference construction is the compromise effect. This puzzling anomaly can be rationalized by contextual deliberation (i.e., endogenous information retrieval/acquisition that can partially resolve utility uncertainty before choice). In this research, we investigate the empirical validity of this explanation by performing falsification tests for its necessary predictions and identifying it from other potential accounts. We conduct five experiments with more than 1,000 participants and show that the compromise effect can be positively mediated by response time and cannot be eliminated by context information, but it can be moderated by manipulating the level of deliberation (i.e., time constraint, preference articulation, task order). These findings are consistent with the predictions of the theory of contextual deliberation. We also show that, on average, contextual deliberation (as proxied by response time) can uniquely account for about half of the total compromise effect. This paper was accepted by Yan Chen, behavioral economics and decision analysis


Author(s):  
Jonathan Beauchamp ◽  
Daniel J. Benjamin ◽  
David Laibson ◽  
Christopher F. Chabris

2015 ◽  
Vol 3 (5) ◽  
pp. 137-141
Author(s):  
Pei-Hsun Wu ◽  
Mei-Ching Huang ◽  
Yi-Shu Wang

2017 ◽  
Vol 31 (1) ◽  
pp. 325
Author(s):  
Markus Surkamta Eric Santosa

The way consumers think about the products they will buy determines their buying behavior. The decision to buy a particular product is obviously in accordance with the buyer’s attitude. The buyers will also feel more comfortable if their behavior meets with the approval and expectations of the people close to them. While the development of a certain attitude has no effect on subjective judgment, the effect of compromise is likely to make a contribution to its development. Since it is still unclear, this study’s main purposed is to clarify this. In addition, while an attitude is theorized as being a predictor of behavior, through behavioral intention, the study’s secondary purpose is to boost the earlier findings. Likewise, in accordance with the theory of planned behavior, the study will also examine the other predictors of behavioral intention, in relation to the behavioral intention itself. A sample consisting of a 100 respondents was compiled by using the convenience and judgment technique. The data were analyzed using Amos 16.0 and SPSS 16.0. As expected, the compromise effect had a significant influence on whether the customers’ attitude or the subjective norm was the main determinant. Likewise, the customers’ attitude, the subjective norm and perceived behavioral control were confirmed as good predictors of customers’ behavioral intentions.


2007 ◽  
Vol 18 (4) ◽  
pp. 223-236 ◽  
Author(s):  
Francisca Sinn ◽  
Sandra J. Milberg ◽  
Leonardo D. Epstein ◽  
Ronald C. Goodstein
Keyword(s):  

2019 ◽  
Vol 23 (4) ◽  
pp. 1069-1099
Author(s):  
Jonathan P. Beauchamp ◽  
Daniel J. Benjamin ◽  
David I. Laibson ◽  
Christopher F. Chabris

2019 ◽  
Vol 160 (38) ◽  
pp. 1503-1509
Author(s):  
Réka Szabó ◽  
Gergely Farkas ◽  
Mária Keszeg ◽  
Gabriella Eördegh ◽  
Norbert Buzás ◽  
...  

Abstract: Introduction: The compromise effect is a well-known phenomenon in the world of marketing, but it is rarely examined in medical settings. In dental setting, the patient often has to make treatment-related decisions with price as the only available and comprehensible information to help informed choice. Aim: We sought to determine if the compromise effect plays a role in dental treatment choices, and if yes, how the effect is modified by factors such as perceived quality, professional jargon in the explanations, or the importance of keeping one’s own teeth intact. Method: 676 volunteers participated in this questionnaire-based study. The questionnaires were filled in anonymously. Altogether 8 versions of the same questionnaire were generated, in which the following information was given in varying combinations: the names of five different dental treatments from cheap to expensive, their possible prices, and additional information about the treatment. Statistical analysis: The significance of the relationship between the relative frequency of responses and the available additional information was determined by chi-square test and Fisher’s exact test. Results: The respondents did not approach dental treatment-related decisions on a heuristic basis by default, most probably because of their preconceptions and previous experiences in connection with dental treatments. Esthetics turned out to be of utmost importance and expectable lifespan was also information that significantly influenced the choices. Conclusion: Extra information can and does influence informed dental treatment choice on the patient side, provided it is offered in a clear, proper, and intelligible form, which points out the importance of professional communication. Orv Hetil. 2019; 160(38): 1503–1509.


2016 ◽  
Author(s):  
Pia R. Pinger ◽  
Isabel Ruhmer ◽  
Heiner Schumacher
Keyword(s):  

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