Dipankar Chakravarti

Information-Presentation Format and Learning Goals as Determinants of Consumers' Memory Retrieval and Choice Processes

Subjects learned product Information presented in various formats, either expecting a subsequent recall task or incidental to making a choice. They then retrieved information from memory or made a choice based on it. Analysis of concurrent verbal protocols showed significantly different processing patterns in both memory-retrieval and choice stemming from the experimental manipulations.

Consumers' Use of Memory and External Information in Choice: Macro and Micro Perspectives

Eight issues concerning how consumers use memory and external information to make a brand choice are examined. Some subjects made a choice using external information only, whereas others had some of the information in differentially accessible memory stores. Protocol analysis showed that subjects making memory-based choices used a larger number and variety of processing operations. However, these subjects used less complex operations and also compartmentalized their processing of external and memory information. Memory accessibility was related to choice differences. The findings form the basis for a set of propositions about memory processes in consumer choice.

Information Accessibility as a Moderator of Consumer Choice

Subjects acquired brand information in memory either incidental to making a choice or under directed learning instructions. Then they were given additional information (more brands and a new attribute for all brands) and asked to choose the best brand using both the external information and the prior information in memory. Differences in the accessibility of prior information in memory induced by the learning goal manipulation significantly affected brand choice outcomes.

Brand Equity, Consumer Learning and Choice

The aim of this paper is to explore the links between brand equity, consumer learning and consumer choice processes in general and considering two recent trends in the market place: store brands and the Internet. We first review the advances that have occurred in brand equity research in marketing in the past decade, with particular emphasis on integrating the separate streams of research emanating from cognitive psychology and information economics. Brand equity has generally been defined as the incremental utility with which a brand endows a product, compared to its non-branded counterpart. We amplify this definition: we propose that brand equity be the incremental effect of the brand on all aspects of the consumers evaluation and choice process. We propose an agenda of research based on this amplified definition.

Partitioned Presentation of Multicomponent Bundle Prices: Evaluation, Choice and Underlying Processing Effects

Firms may choose to present the price of a multicomponent product bundle in partitioned (separate price for each mandatory component) or consolidated (single, equivalent price) fashion. In this article, we report on 2 experiments that examined the effects of such presentations on evaluations and choices as well as the underlying processing effects. In Experiment 1, consistent with a mental accounting analysis, a multicomponent product bundle was evaluated more favorably and chosen more often when its components were presented with partitioned (vs. consolidated) prices. The effects were, however, moderated by the component partitioned. In particular, it appeared that partitioning prices altered attention paid to the components partitioned and related product features. In Experiment 2, we found that different splits of the bundle price influenced evaluations and choices depending on how the focal product price related to that of a comparison option. These price-split effects were also moderated by the component partitioned, suggesting attention effects similar to Experiment 1. The findings show that although the effects of price partitioning were consistent with mental accounting principles, they were moderated by information processing effects related to the partitioned component.

A Process Analysis of the Effects of Humorous Advertising Executions on Brand Claims Memory

We report 2 studies that examined how the strength of humorous advertising executions and their relevance to the brand claims in the advertisement influence consumer memory for the claims. We infer the underlying memory processes by testing claims memory using recall, recognition, and indirect tests following incidental exposure to advertisements manipulating humor strength and claims relevance. Memory for the humor component was checked as corroborating evidence. We also validated these inferences by contrasting these effects on claims and humor memory with those under instructed elaboration. Study 1 shows that for humor of low claims relevance, brand claims memory is an inverted U-shaped function of humor strength. Compared to both nonhumor and high-strength humor, moderate humor facilitates both encoding and retrieval of the claims. The patterns of humor memory and instructed elaboration effects suggest that low-relevance humor is not spontaneously linked to the claims even when processing resources are available. Study 2 shows that when strong humor is made more relevant, brand claims memory improves even during incidental exposure. Corresponding humor memory and instructed elaboration effects imply that relevance encourages the formation of humor-claims links that facilitate encoding and retrieval of the claims. The results show that although strong humor inhibits the processing received by the brand claims, enhancing its claims relevance can compensate for such inhibition.

Auctions: Research Opportunities in Marketing

Despite growing interest in traditional and Internet auctions, the marketing literature on auctions is sparse. This paper outlines selected aspects of the research opportunity. We provide a brief description of the major auction mechanisms, outline key concepts and results from the economic analysis of auctions, and summarize the key findings in empirical tests of auction theory. We then identify areas for future research on auction markets, particularly those of interest to marketers in the new contexts created by the Internet.

The effects of concurrent verbalization on choice processing.

Subjects made an initial choice using external product information. Some concurrently verbalized this choice, whereas others did not. Next, they received more information on new brands and a new at...

Channel Negotiations with Information Asymmetries: Contingent Influences of Communication and Trustworthiness Reputations

This article reports three experiments that examine how communication types (informational, relational, and coercive messages) and mutual trustworthiness reputations influence sequential bargaining between an uncertain manufacturer and an informed distributor in a marketing channel. In Experiment 1, bargainers use informational and relational messages to establish a positive social tenor in the interaction. Compared with when bargainers communicate only through offers and counteroffers, explicit communication produces quicker and more efficient agreements. The effects are stronger when manufacturer uncertainty is relatively high. In Experiment 2, mutual reputations of high (versus low) trustworthiness also produce quicker and more efficient agreements. In both studies, the larger extracted surplus increases manufacturer profits without affecting distributor profits. However, contrary to economic intuition, the gains from communication accrue asymmetrically to the uninformed manufacturer. Experiment 3 shows the effects of communication type are contingent on the prevailing level (high or low) of trustworthiness reputations in the dyad. Compared with no communication, relational messages elicit the most positive (negative) outcomes when trustworthiness reputations are high (low). Informational messages have a smaller but positive impact on bargaining outcomes in both trustworthiness conditions and appear to build trust.

Experiences with the Bettman-Park Verbal-Protocol Coding Scheme

Issues and problems that emerged in using the Bettman-Park coding scheme for verbal “think-aloud” protocols are discussed, and ways to resolve them are suggested.