Aradhna Krishna

Vital Dimensions in Volume Perception: Can the Eye Fool the Stomach?

Given the number of volume judgments made by consumers, for example, deciding which package is larger and by how much, it is surprising that little research pertaining to volume perceptions has been done in marketing. In this article, the authors examine the interplay of expectations based on perceptual inputs versus experiences based on sensory input in the context of volume perceptions. Specifically, they examine biases in the perception of volume due to container shape. The height of the container emerges as a vital dimension that consumers appear to use as a simplifying visual heuristic to make a volume judgment. However, perceived consumption, contrary to perceived volume, is related inversely to height. This lowered perceived consumption is hypothesized and shown to increase actual consumption. A series of seven laboratory experiments programmatically test model predictions. Results show that perceived volume, perceived consumption, and actual consumption are related sequentially. Furthermore, the authors show that container shape affects preference, choice, and post-consumption satisfaction. The authors discuss theoretical implications for contrast effects when expectancies are is confirmed, specifically as they relate to biases in visual information processing, and provide managerial implications of the results for package design, communication, and pricing.

Do We Care What Others Get? A Behaviorist Approach to Targeted Promotions

Increased access to individual customers and their purchase histories has led to a growth in targeted promotions, including the practice of offering different pricing policies to prospective, as opposed to current, customers. Prior research on targeted promotions has adopted a tenet of the standard economic theory of choice, whereby what a consumer chooses depends exclusively on the prices available to that consumer. In this article, the authors propose that consumer preference for firms is affected not just by prices the consumers themselves are offered but also by prices available to others. This departure from the conventional strong-rationality approach to targeted promotion results in a decidedly different optimal policy. Through a laboratory experiment, calibration of a stochastic model, and game-theoretic analysis, the authors demonstrate that ignoring behaviorist effects exaggerates the importance of targeting switchers as opposed to loyals. This occurs, though with intriguing differences, even when only part of the market is aware of firms’ differing promotional policies. The authors show that both the deal percentage and the proportion of aware consumers affect the optimal strategy of the firm. Furthermore, the authors find that offering lower prices to switchers may not be a sustainable practice in the long run, as information spreads and the proportion of aware consumers grows. The model cautions practitioners against overpromoting and/or promoting to the wrong segment and suggests avenues for improving the effectiveness of targeted promotional policies.

A Meta-Analysis of the Impact of Price Presentation on Perceived Savings

Pricing is one of the most crucial determinants of sales. Besides the actual price, how the price offering is presented to consumers also affects consumer evaluation of the product offering. Many studies focus on “price framing,” i.e., how the offer is communicated to the consumer is the offered price given along with a reference price, is the reference price plausible, is a price deal communicated in dollar or percentage terms. Other studies focus on “situational effects,” e.g., is the evaluation for a national brand or a private brand, is it within a discount store or a specialty store. In this article, a meta-analysis of 20 published articles in marketing examines the effects of price frames and situations on perceived savings. The results reveal many features that significantly influence perceived savings. For instance, while both the percent of deal and the amount of deal positively influence perceived deal savings, deal percent has more impact. Further, the presence of a regular price as an external reference price enhances the offer value of large plausible deal and implausible deals, but not of small plausible deals. Thus, high value deals should announce the regular price, but not low value deals. Overall, the results have several useful insights for designing promotions.

Impact of Bundle Type, Price Framing and Familiarity on Purchase Intention for the Bundle

Bundling of products is very prevalent in the marketplace. For example, travel packages include airfare, lodging, and a rental car. Considerable economic research has focused on the change in profits and consumer surplus that ensues if bundles are offered. There is relatively little research in marketing that deals with bundling, however. In this article we concentrate on some tactical issues of bundling, such as which types of products should be bundled, what price one can charge for the bundle, and how the price of the bundle should be presented to consumers to improve purchase intent. For example, we hypothesize that bundles composed of complements of equally priced goods will result in higher purchase intention. We also hypothesize that price increases will result in larger purchase intention changes than price decreases. Further, we expect that the presentation format for describing the price of the bundle will influence purchase intention in general, and depending on the price level of the bundle, different presentation formats will result in higher purchase intention. Finally, we hypothesize that purchase intention changes associated with different price levels will be higher for subjects who are familiar with the products than for subjects who are less familiar with the products. We used an interactive computer experiment conducted among 83 Master of Business Administration (MBA) students to test our hypotheses. Our findings suggest that: (1) bundles composed of complements have a higher purchase intent than bundles of similar or unrelated products, (2) consumers are more sensitive to a bundle price increase than to a bundle price decrease of equal amounts, (3) different presentation formats for describing the price of the bundle influence purchase intention, and (4) more familiar subjects respond to different presentations of equivalent bundles in different ways than less familiar subjects. We did not find any support for the hypothesis that bundles composed of similarly priced items have higher purchase intent than bundles composed of unequally priced products.

The Effects of Advertising Copy on Sensory Thoughts and Perceived Taste

We propose that advertisement (ad) content for food products can affect taste perception by affecting sensory cognitions. Specifically, we show that multisensory ads result in higher taste perceptions than ads focusing on taste alone, with this result being mediated by the excess of positive over negative sensory thoughts. Since the ad effect is thoughts-driven or cognitive, restricting cognitive resources (imposing cognitive load) attenuates the enhancing effect of the multiple-sense ad. Our results are exhibited across three experiments and have many implications for cognition and sensory perception research within consumer behavior, as well as several practical implications.

The “Visual Depiction Effect” in Advertising: Facilitating Embodied Mental Simulation through Product Orientation

This research demonstrates that visual product depictions within advertisements, such as the subtle manipulation of orienting a product toward a participant’s dominant hand, facilitate mental simulation that evokes motor responses. We propose that viewing an object can lead to similar behavioral consequences as interacting with the object since our minds mentally simulate the experience. Four studies show that visually depicting a product that facilitates more (vs. less) embodied mental simulation results in heightened purchase intentions. The studies support our proposed embodied mental simulation account. For instance, occupying the perceptual resources required for embodied mental simulation attenuates the impact of visual product depiction on purchase intentions. For negatively valenced products, facilitation of embodied mental simulation decreases purchase intentions.

Interaction of Senses: The Effect of Vision versus Touch on the Elongation Bias

We highlight the role of interacting senses on consumer judgment. Specifically, we focus on the role of the visual and haptic (touch) senses on the elongation bias, which predicts that the taller of two equivolume objects will appear bigger. We show that sensory modality will affect the extent (and even direction) of the elongation bias—with visual cues alone and with bimodal “visual and haptic cues” (seeing and handling the objects), we obtain the elongation bias; however, with haptic cues alone (handling the objects blindfolded) and in bimodal judgments with visual load, we obtain a reversal of the elongation bias.

Product Scent and Memory

Scent research has focused primarily on the effects of ambient scent on consumer evaluations. We focus instead on the effects of product scent on consumer memories. For instance, if a pencil or a facial tissue is imbued with scent (vs. not), recall for the brands other attributes increases significantly-with the effects lasting as much as 2 weeks after exposure. We also find that product scent is more effective than ambient scent at enhancing memory for product information. We suggest that this may be because, with product (ambient) scent, scent-related associations are focused on a single object (are diffused across multiple objects) in the environment. In support, we find that the memory effects are driven by the number of product/scent-related associations stored in long-term memory. The results suggest that, although ambient scent has received the bulk of attention from researchers and managers in recent years, greater focus on product scent is warranted. (c) 2009 by JOURNAL OF CONSUMER RESEARCH, Inc..

Cause Marketing: Spillover Effects of Cause-Related Products in a Product Portfolio

The number of firms carrying a cause-related product has significantly increased in recent years. We consider a duopoly model of competition between firms in two products to determine which products a firm will link to a cause. We first test the behavioral underpinnings of our model in two laboratory experiments to demonstrate the existence of both a direct utility benefit to consumers from cause marketing (CM) and a spillover benefit onto other products in the portfolio. Linking one product in a product portfolio to a cause can therefore increase sales both of that product and, via a spillover effect, of other products in the firms portfolio. We construct a CM game in which each firm chooses which products, if any, to place on CM. In the absence of a spillover benefit, a firm places a product on CM if and only if it can increase its price by enough to compensate for the cost of CM. Thus, in equilibrium, firms either have both products or neither product on CM. However, with the introduction of a spillover benefit to the second product, this result changes. We show that if a single firm in the market links only one product to a cause, it can raise prices on both products and earn a higher profit. We assume each firm has an advantage in one product and show that there is an equilibrium in which each firm links only its disadvantaged product to a cause. If the spillover effect is strong, there is a second equilibrium in which each firm links only its advantaged product to a cause. In each case, firms raise their prices on both products and earn higher profits than when neither firm engages in CM. We also show that a firm will never place its entire portfolio on CM. Overall, our work implies that, by carrying cause-related products, companies can not only improve their image in the public eye but also increase profits.

Language Choice in Advertising to Bilinguals: Asymmetric Effects for Multinationals versus Local Firms

We examine the role of language choice in advertising to bilinguals in global markets. Our results reveal the existence of asymmetric language effects for multinational corporations (MNCs) versus local firms when operating in a foreign domain, such that the choice of advertising language affects advertising effectiveness for MNCs but not local companies. Also, different language formats (e.g., the local language vs. English or a mix of the two languages) are shown to vary in their advertising effectiveness for different types of products (luxuries vs. necessities). Our results indicate that language choice for advertisements is an important decision for MNCs. Also, MNCs cannot mimic local companies in their choice of advertising language.