Itamar Simonson

Choice in Context: Tradeoff Contrast and Extremeness Aversion

Consumer choice is often influenced by the context, defined by the set of alternatives under consideration. Two hypotheses about the effect of context on choice are proposed. The first hypothesis, ...

Choice Based on Reasons: The Case of Attraction and Compromise Effects

Building on previous research, this article proposes that choice behavior under preference uncertainty may be easier to explain by assuming that consumers select the alternative supported by the best reasons. This approach provides an explanation for the so-called attraction effect and leads to the prediction of a compromise effect. Consistent with the hypotheses, the results indicate that (1) brands tend to gain share when they become compromise alternatives in a choice set; (2) attraction and compromise effects tend to be stronger among subjects who expect to justify their decisions to others; and (3) selections of dominating and compromise brands are associated with more elaborate and difficult decisions.

Reason-based choice

This paper considers the role of reasons and arguments in the making of decisions. It is proposed that, when faced with the need to choose, decision makers often seek and construct reasons in order to resolve the conflict and justify their choice, to themselves and to others. Experiments that explore and manipulate the role of reasons are reviewed, and other decision studies are interpreted from this perspective. The role of reasons in decision making is considered as it relates to uncertainty, conflict, context effects, and normative decision rules.

Earning the Right to Indulge: Effort as a Determinant of Customer Preferences Toward Frequency Program Rewards

Although frequency programs (FPs) have become ubiquitous in the marketplace and a key marketing-mix tool for promoting customer relationship and loyalty, little is known about the factors that determine how such programs are evaluated by consumers. The authors investigate the impact of the level of effort participants must invest to obtain the reward on the types of rewards they prefer and, consequently, on the decision to join the FP. In particular, the authors propose that higher required effort shifts consumer preferences from necessity to luxury rewards, because higher efforts reduce the guilt that is often associated with choosing luxuries over necessities. A series of studies with approximately 3100 consumers demonstrated that (1) higher program requirements shift preferences in favor of luxury rewards, (2) this effect is also observed when consumers choose between luxury and necessity rewards (of the same value) that they themselves proposed, and (3) the effect of program requirements on reward preferences is stronger among consumers who tend to feel guilty about luxury consumption and among those for whom the effort is invested in the context of work rather than pleasure. In addition, contrary to an alternative explanation based on the notion that higher requirements signal higher value of luxury rewards, the authors show that (1) when the program requirements are held constant but the individual consumers effort is higher, the shift in preference toward luxuries is still observed and (2) increasing the monetary cost of participating in the FP decreases consumer preferences for luxury rewards. The authors discuss the theoretical implications of this research and the practical implications with respect to the design, targeting, and promotion of FPs.

The Effect of Purchase Quantity and Timing on Variety-Seeking Behavior

Two consumer strategies for the purchase of multiple items from a product class are contrasted. In one strategy (simultaneous choices/sequential consumption), the consumer buys several items on one...

The Effect of Forced Choice on Choice

Whereas most academic and industry studies of consumer preferences and decision making involve forced choice (i.e., participants are told to choose one of the presented product or service alternatives), buyers usually also have the option not to select any alternative. An implicit assumption in the experimental practice of forcing choice is that the no-choice option draws proportionately from the various available alternatives, such that the qualitative conclusions are unaffected. However, the authors propose that the no-choice option competes most directly with alternatives that buyers tend to select when they are uncertain about their preferences. Building on this general proposition, the authors show that the introduction of the no-choice option strengthens the attraction effect, weakens the compromise effect, and decreases the relative share of an option that is “average” on all dimensions. They also examine the mechanisms underlying the impact of having the option not to choose and the conditions under which the no-choice option is likely to affect relative option shares. The results are consistent with the notion that the no-choice option provides an alternative way of resolving difficult choices that is not available when subjects are forced to choose. The authors discuss the theoretical and practical implications of this research.

Determinants of Customers’ Responses to Customized Offers: Conceptual Framework and Research Propositions

Marketers have been challenged by proponents of individual (one-to-one) marketing to shift from focusing on market segments to making individually customized offers. Building on current knowledge regarding the construction of customers’ preferences, the author examines the basic assumptions underlying individual marketing and presents a process model of customers’ responses to customized offers. The model addresses (1) preference development, (2) evaluation of customized offers, (3) likelihood of purchasing the customized offers, and (4) maintenance of relationships with one-to-one marketers. The analysis leads to specific propositions regarding determinants of customers’ responses to customized offers. The author discusses future research directions and managerial implications.

Self‐Control for the Righteous: Toward a Theory of Precommitment to Indulgence

Prior research has examined consumers’ use of self‐control to avoid hedonic (myopic) temptations, such as overspending and smoking. In this research we investigate the opposite form of self‐control, whereby consumers force themselves to indulge and avoid default forms of spending on utilitarian necessities and/or savings. In particular, consumers who have difficulty choosing items that are perceived as indulgences or luxuries (e.g., a cruise) over necessities (e.g., saving for college education) and cash in everyday decisions may use precommitments to indulgence, especially when the psychological cost of such commitments is less concrete. These propositions were tested in a series of studies involving real and hypothetical choices as well as process measures. The results indicate that a substantial segment of consumers choose hedonic luxury rewards over cash of equal or greater value; consumers typically explain such choices based on the need to precommit to indulgence, to make sure that the award does no...

The Role of Explanations and Need for Uniqueness in Consumer Decision Making: Unconventional Choices Based on Reasons

This research investigates the interaction between a very common task, explaining decisions, and an individual difference, need for uniqueness (NFU), on buyer decision making. We propose that explaining (or providing reasons for) decisions shifts the focus from the choice of options to the choice of reasons. Furthermore, buyers who explain their decisions and have high NFU tend to select unconventional reasons and are, consequently, more likely to make unconventional choices. These predictions were supported in a series of studies involving choices between conventional and less‐conventional options, such as whether to switch to a brand on sale, whether to select a compromise option, and whether to accept a gamble with a possible loss. The findings also indicate that the effects of providing reasons are not due to attempts to act rationally or to concerns about being evaluated. Three boundary conditions on the generalization that high NFU consumers who provide reasons tend to make unconventional choices we...

Attribute-Task Compatibility as a Determinant of Consumer Preference Reversals

The authors propose that consumers’ preferences are systematically affected by whether they make direct comparisons between brands (e.g., a choice task) or evaluate brands individually (e.g., purch...