An Evaluation Cost Model of Consideration Sets
Jay Hauser,Birger Wernerfelt +1 more
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In this article, the authors provide analytical expressions for these decision criteria and present four aggregate implications of the model: distributions of consideration set sizes, order-of-entry penalties, dynamic advertising response, and competitive promotion intensity.Abstract:
If utility (net of price) varies by consumption occasion, the consideration set of a rational consumer will represent trade-offs between decision costs and the incremental benefits of choosing from a larger set of brands. If evaluating a brand decreases biases and uncertainty in perceived utility, the decision to evaluate a brand for inclusion in a consideration set is different from the decision to consider an evaluated brand. The decision to consume is, in turn, different from the decision to consider. This article provides analytical expressions for these decision criteria and presents four aggregate implications of the model: (1 ) distributions of consideration set sizes, (2) order-of-entry penalties, (3) dynamic advertising response, and (4) competitive promotion intensity.read more
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An examination of selected marketing mix elements and brand equity
TL;DR: The authors explored the relationship between selected marketing mix elements and the creation of brand equity and found that frequent price promotions, such as price deals, are related to low brand equity, whereas high advertising spending, high price, good store image, and high distribution intensity are associated with high brand equity.
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When choice is demotivating: Can one desire too much of a good thing?
Sheena S. Iyengar,Mark R. Lepper +1 more
TL;DR: The authors found that people are more likely to purchase gourmet jams or chocolates or to undertake optional class essay assignments when offered a limited array of 6 choices rather than a more extensive array of 24 or 30 choices.
Interactive home shopping: Consumer, retailer, and manufacturer incentives to participate in
John G. Lynch,Joseph W. Alba +1 more
TL;DR: In this paper, the authors examine the implications of electronic shopping for consumers, retailers, and manufacturers, assuming that near-term technological developments will offer consumers unparalleled opportunities to locate and compare product offerings.
Journal ArticleDOI
Interactive Home Shopping: Consumer, Retailer, and Manufacturer Incentives to Participate in Electronic Marketplaces:
Joseph W. Alba,John G. Lynch,Barton A. Weitz,Chris Janiszewski,Richard J. Lutz,Alan Sawyer,Stacy Wood +6 more
TL;DR: In this article, the authors examine the implications of electronic shopping for consumers, retailers, and manufacturers, and they assume that near-term technological developments will offer consumers unparalleled oppo...
References
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Book ChapterDOI
Prospect theory: an analysis of decision under risk
Daniel Kahneman,Amos Tversky +1 more
TL;DR: In this paper, the authors present a critique of expected utility theory as a descriptive model of decision making under risk, and develop an alternative model, called prospect theory, in which value is assigned to gains and losses rather than to final assets and in which probabilities are replaced by decision weights.
Book
Judgment Under Uncertainty: Heuristics and Biases
Amos Tversky,Daniel Kahneman +1 more
TL;DR: The authors described three heuristics that are employed in making judgements under uncertainty: representativeness, availability of instances or scenarios, and adjustment from an anchor, which is usually employed in numerical prediction when a relevant value is available.
Journal Article
The magical number seven, plus or minus two: some limits on our capacity for processing information
TL;DR: The theory of information as discussed by the authors provides a yardstick for calibrating our stimulus materials and for measuring the performance of our subjects and provides a quantitative way of getting at some of these questions.
Book
The magical number seven plus or minus two: some limits on our capacity for processing information
TL;DR: The theory provides us with a yardstick for calibrating the authors' stimulus materials and for measuring the performance of their subjects, and the concepts and measures provided by the theory provide a quantitative way of getting at some of these questions.
Journal ArticleDOI
Information and Consumer Behavior
TL;DR: In this article, the authors argue that consumers lack full information about the prices of goods, but their information is probably poorer about the quality variation of products simply because the latter information is more difficult to obtain.