Track 10: Judgment & Decision Making II
Ryan Hamilton (Emory University)

10B. Experience Effects

Saturday, March 5
11:15am – 12:45pm EST
Discussant: Alix Barasch (New York University / INSEAD)
MC: Gabriela Tonietto (Rutgers University)
Calendar Invite: Add to calendar
Student Coordinator: Donald Gaffney (Vanderbilt University) (donald.r.gaffney@Vanderbilt.Edu)

Competitive Papers

Noise Increases Anchoring Effects
Authors: Chang-Yuan Lee (Boston University), Carey Morewedge (Boston University)
Presenting Author: Chang-Yuan Lee (Boston University)
We introduce a theoretical framework distinguishing between anchoring effects, anchoring bias, and judgmental noise. Anchoring effects require anchoring bias, but noise modulates their size. We test it by manipulating stimulus magnitudes. As magnitudes increase, psychophysical noise due to scalar variability widens the perceived range of plausible values for the stimulus. This increased noise, in turn, amplifies the influence of anchoring bias on judgments. In eleven preregistered experiments, anchoring effects increased with stimulus magnitude for point estimates of a variety of stimuli (e.g., reservation prices for hotels, calories in French fries). Our findings identify a stimulus feature predicting the size and replicability of anchoring effects––stimulus magnitude.
Reference Quantity and Hedonic Decline: How Increasing Sequence versus Decreasing Sequence Influences Consumption Experience
Authors: Jinwoo Kim (Carnegie Mellon University), Jeff Galak (CMU)
Presenting Author: Jinwoo Kim (Carnegie Mellon University)
The unfortunate fact of consumption is that a once enjoyable stimulus becomes less so with repetition, which is termed hedonic decline. We proposed a novel factor mitigating hedonic decline: increasing sequences and decreasing sequences. The increasing sequence refers to circumstances that consumption amount grows with repetition (post with 1 picture – post with 2 pictures – post with 3 pictures), whereas the decreasing sequence is the opposite in which consumption amount diminishes with repetition (post with 3 pictures – post with 2 pictures – post with 1 picture). Five experiments (N=1,606) showed that decreasing sequences attenuated hedonic decline, holding the total consumption quantity constant. This effect was mediated by subjective quantity and moderated by manipulating reference quantity.
The Attentional Deprioritization Effect: How Attentional Overload Reduces Online Purchases
Authors: Jeffrey Kang (Cornell University), Manoj Thomas (Cornell University), Dinesh Gauri (University of arkansas)
Presenting Author: Jeffrey Kang (Cornell University)
Six studies document how subtle changes in spatial layout of online information can have not-so-subtle effects on their purchase decisions. Online shoppers are often prompted to buy accessories, such as extended warranty, along with durables. We demonstrate that merely presenting the warranty decision on the same webpage as the durable (versus on a separate webpage) can reliably reduce shoppers’ purchase decisions. Presenting the warranty decision on the same webpage with the durable (versus a separate webpage) leads to attentional overload and causes shoppers to deprioritize the warranty purchase decision. This attentional deprioritization reduces purchases of the accessory product without shoppers’ awareness.
Differential Effects of Minimalist Visual Branding on Expected Utilitarian and Hedonic Capacity
Authors: Linda Hagen (University of Southern Californi)
Presenting Author: Linda Hagen (University of Southern Californi)
Minimalist aesthetics are popular—but are they universally beneficial? We find that equally attractive aesthetically minimalist (vs. complex) packaging design leads consumers to expect products to be superior on utilitarian dimensions, but inferior on hedonic dimensions. This pattern is driven by inferences about the product’s focus on essentials and its potential to stimulate, respectively. Accordingly, utilitarian (vs. hedonic) purchase goals boost choice of products with minimalist (vs. complex) packaging design. Likewise, ads are better liked when utilitarian (vs. hedonic) messages are paired with product featuring minimalist (vs. complex) packaging design.

Flash Talks

Exploring the Attentional Dilution Effect in Consumer Choices
Authors: Song Dai (Warwick Business School, University of Warwick), Daniel Read (Warwick Business School, University of Warwick), Timothy L. Mullett (Warwick Business School, University of Warwick)
Presenting Author: Song Dai (Warwick Business School, University of Warwick)
When choosing between product options, a consumer can be indifferent between two dissimilar alternatives. If one option is then offered bundled with a small additional add-on feature, individuals clearly identify this as better than the original option but often remain indifferent between this enhanced product and the dissimilar alternative. This asymmetry finding of item’s value discounting is contrary to the value-based theory but in line with our newly proposed context effect: attentional dilution effect. We showed this effect in two consumer choice experiments, where we employed the random order delayed compensation method (DCM) and constructed a novel valuation method to examine this effect. Two experiments demonstrated evidence for “attentional dilution”: when options differ on a few attributes attention is focused narrowly leading to overweighting of a small difference (or add-on), but when options differ on many attributes, attention is spread proportional to the number of different features.
Price Expectations and Spontaneous Opportunity Cost Consideration
Authors: Nicholas Herzog (University of Chicago Booth School of Business), Dan Bartels (The University of Chicago Booth School of Business)
Presenting Author: Nicholas Herzog (University of Chicago Booth School of Business)
Previous research finds that opportunity costs are sometimes ignored when consumers are deciding whether to purchase a focal option. Behavioral theories suggest that opportunity cost consideration becomes more likely when spending constraints are salient. Our research finds that a salient feature of a focal option itself—namely, the price relative to expectations—can also influence opportunity cost consideration. Across three thought-listing experiments, unexpectedly high prices increased spontaneous opportunity cost consideration relative to expected prices, while the reverse pattern emerged for unexpectedly low prices.

Posters

Flexibility a Matter of Culture? Development of the Consumer’s Cognitive Flexibility Scale
Authors: Nadine Benninger (Technical University of Munich, TUM School of Management, Chair of Marketing and Consumer Research, Germany), Jutta Roosen (Technical University of Munich, TUM School of Management, Chair of Marketing and Consumer Research, Germany)
Presenting Author: Nadine Benninger (Technical University of Munich, TUM School of Management, Chair of Marketing and Consumer Research, Germany)
This study discusses the concept of cognitive flexibility in consumer research to investigate cultural differences in the acceptance of innovative products. Therefore, a new scale the Consumer’s Cognitive Flexibility Scale was created and tested in Germany and Japan. The results led to a reliable and valid CCFS measuring the same three facets of Consumer’s Cognitive Flexibility in both cultures. Results show that the individual level of cognitive flexibility helps explaining innovation acceptance in both cultures. Still, Germans are more open to innovative products compared to Japanese, which needs to be considered by marketers launching products in these cultures.
“Zebra” is Probably More Memorable than “Tick,” How Accurate are People When Making Memorability Predictions?
Authors: Ada Aka (The Wharton School, University of Pennsylvania), Sudeep Bhatia (University of Pennsylvania), John McCoy (The Wharton School, University of Pennsylvania)
Presenting Author: Ada Aka (The Wharton School, University of Pennsylvania)
We examine how good people are at making predictions about which words others are likely to remember, why some words are more memorable in reality, and the reasons tAda Aka (The Wharton School, University of Pennsylvania), Sudeep Bhatia (University of Pennsylvania), John McCoy (The Wharton School, University of Pennsylvania)hat may lead to inaccurate memorability predictions. We built a machine learning model that identifies the semantic (e.g. themes like family) and psycholinguistic (e.g. word frequency) determinants of memorability in a data-driven manner and accurately predicts memorability. While psycholinguistic variables have different effects across recognition and recall, we show the key semantic determinants of memorability are task-independent. Overall, our approach sheds light on why human’s memorability predictions may be inaccurate.
The Efficacy of Pain Promotion: How Need for Closure Shapes Positive and Negative Inferences of Pain in Self-Improvement Products
Authors: Alberto Barchetti (University of Cincinnati), Joshua Clarkson (University of Cincinnati), Ashley Otto (Baylor University)
Presenting Author: Alberto Barchetti (University of Cincinnati)
"Self-improvement products are part of a billion-dollar industry that aims to help people better themselves. A perhaps paradoxical aspect to this industry is the belief that consumers better themselves through the experience of pain. We propose that the efficacy of the explicit promotion of pain in self-improvement products varies as a function of consumers’ need for closure. Two experiments show that the use of pain in the promotion of self-improvement products can either undermine or enhance the products' credibility and thus persuasiveness depending on consumers’ need for closure. Though preliminary, these findings offer insight into the competing inferences associated with pain and the role of need for closure in shaping the efficacy of pain promotion for self-improvement products. Future research aims to better understand the underlying mechanism/s and boundary conditions of this intriguing phenomenon. "
Familiarity Attracts Consumer Attention: Methods to Objectively Measure Consumer Brand Familiarity
Authors: Ursa Bernardic (University of Geneva, GSEM), Benjamin Scheibehenne (Karlsruhe Institute of Technology)
Presenting Author: Ursa Bernardic (University of Geneva, GSEM)
Brand familiarity is an important and frequently used concept in marketing research and practice. Existing measures of brand familiarity typically rely on subjective self-reports and Likert scales. Here we develop and empirically test two implicit measures to quantify brand familiarity. Based on research in visual attention and computer image processing, observers in a first visual search task are incentivized to quickly find a target brand among varying numbers of competitor brands. In the second approach, we measure the speed at which observers can identify a target brand that is gradually revealed. Both approaches are validated in four preregistered experiments. Results show that reaction times predict brand familiarity on an individual level beyond conventional self-reports, even when controlling for “bottom-up” visual features of the brand logo. Our findings offer an innovative way to objectively measure brand familiarity and contribute to the understanding of consumer attention.
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