Ziv Carmon

Focusing on the Forgone: How Value Can Appear So Different to Buyers and Sellers

We propose that buying- and selling-price estimates reflect a focus on what the consumer forgoes in the potential exchange and that this notion offers insight into the well-known difference between those two types of value assessment. Buyers and sellers differ not simply in their valuation of the same item but also in how they assess the value. Buyers tend to focus on their sentiment toward what they forgo (typically, the expenditure), and buying prices are thus heavily influenced by variables such as salient reference prices. By the same token, sellers tend to focus on their sentiment toward surrendering the item, and selling prices are hence more heavily influenced by variables such as benefits of possessing the item. Four studies examining buying- and selling-price estimates of tickets for National Collegiate Athletic Association basketball games offer consistent support for these ideas. The studies show that naturally occurring differences among respondents in attitudes relating to the tickets that sellers forgo (e.g., significance of the game) corresponded more closely to variation in selling prices than in buying prices. Conversely, measures relating to the expenditure (e.g., respondents’ concern with money) corresponded more closely to buying prices than to selling prices. Using controlled manipulations we then showed that changes in aspects relating to the game (e.g., expected climate in the stadium) affected selling prices more than buying prices, but changes relating to the expenditure (e.g., list price of the ticket) influenced buying prices more than selling prices. We also showed that drawing attention to the benefits of possessing a ticket before asking for the price estimates influenced buying prices more than selling prices, supporting our claim that otherwise these benefits are naturally more salient to sellers than buyers. Similarly, drawing attention to alternative uses of money before asking for price estimates influenced selling prices more than buying prices.

Option Attachment: When Deliberating Makes Choosing Feel Like Losing

A belt transporting device includes a belt; first and second adjustment members provided at two respective ends of a tension roller in a belt width direction orthogonal to a direction of rotation of the belt, the first and second adjustment members each being movable by receiving a force from the belt; and a link member that interlocks the movement of the first adjustment member and the movement of the second adjustment member. If the belt is laterally shifted in the belt width direction, one of the first and second adjustment members moves by receiving a force from the belt while the other is moved by the link member such that the tension roller is tilted with respect to a driving roller.

Gestalt characteristics of experiences: the defining features of summarized events

In this paper we take stock of recent research on how people summarize and evaluate extended experiences. Summary assessments do not simply integrate all the components of the evaluated events, but tend to focus on only a few features (gestalt characteristics). Examples of these defining features include the rate at which the transient state components of the experience become more or less pleasant over its duration, and the intensity of the state at key instances, in particular the most intense (peak) and the final (end) moments. It is not yet suAciently clear which specific gestalt characteristics dominate summary assessments of experiences, nor how this diAers across types of experiences or measurement approaches. To address some of these issues, we describe new research in this area, discuss potential methodological diAculties, and suggest directions for future research. Copyright # 2000 John Wiley & Sons, Ltd.

Consumer Control and Empowerment: A Primer

This paper introduces consumer empowerment as a promising research area. Going beyond lay wisdom that more control is always better, we outline several hypotheses concerning (a) the factors that influence the perception of empowerment, and (b) the consequences of greater control and the subjective experience of empowerment on consumer satisfaction and confidence.

Good Parameters and Implementations for Combined Multiple Recursive Random Number Generators

Combining parallel multiple recursive sequences provides an efficient way of implementing random number generators with long periods and good structural properties. Such generators are statistically more robust than simple linear congruential generators that fit into a computer word. We made extensive computer searches for good parameter sets, with respect to the spectral test, for combined multiple recursive generators of different sizes. We also compare different implementations and give a specific code in C that is faster than previous implementations of similar generators.

For Whom Is Parting With Possessions More Painful? Cultural Differences in the Endowment Effect

The endowment effect—the tendency for owners (potential sellers) to value objects more than potential buyers do—is among the most widely studied judgment and decision-making phenomena. However, the current research is the first to explore whether the effect varies across cultures. Given previously demonstrated cultural differences in self-construals and self-enhancement, we predicted a smaller endowment effect for East Asians compared with Westerners. Two studies involving buyers and sellers of a coffee mug (Study 1a) and a box of chocolates (Study 1b) supported this prediction. Study 2 conceptually replicated this cultural difference by experimentally manipulating independent and interdependent self-construals. Finally, Study 3 provided evidence for an underlying self-enhancement mechanism: Cultural differences emerged when self-object associations were made salient, but disappeared when self-object associations were minimized. Thus, the endowment effect may be influenced by the degree to which independence and self-enhancement (vs. interdependence and self-criticism) are culturally valued or normative.

Indeterminacy and Live Television

Why would consumers prefer live television, even when tape-delayed broadcasts provide the same sensory experience? We propose that indeterminacy is a key reason. Indeterminate consumption experiences (such as watching sports competitions live on television) unfold in ways that are not decided ex ante. This makes them more exciting than equivalent determinate experiences (such as watching recorded broadcasts). We offer empirical evidence for this proposition: independently of other differences between live and taped broadcasts, the indeterminacy of events made watching them live more exciting and correspondingly preferable. We conclude by discussing implications of the indeterminacy concept for consumer research.

Ruminating About Placebo Effects of Marketing Actions

In Shiv, Carmon, and Ariely (2005), the authors demonstrate that marketing actions such as price promotions and advertising evoke consumer expectations, which can alter the actual efficacy of the marketed product, a phenomenon they call ”placebo effects of marketing actions.” In this rejoinder, they build on the preceding commentaries and refine their framework to account more fully for factors that may influence this placebo effect, and they describe directions for further research in this new topic area.

The Dissociation Between Monetary Assessment and Predicted Utility

We study the dissociation between two common measures of value—monetary assessment of purchase options versus the predicted utility associated with owning or consuming those options, a disparity that is reflected in well-known judgment anomalies and that is important for interpreting market research data. We propose that a significant cause of this dissociation is the difference in how these two types of evaluations are formed—each is informed by different types of information. Thus, dissociation between these two types of measures should not be interpreted as failure to map utility onto money, as such mapping is not really attempted. We suggest that monetary assessment tends to focus on the transaction in which the purchase alternative would be acquired or forgone (e.g., how fair the transaction seems), failing to adequately reflect the purchase alternative itself (e.g., the expected pleasure of owning or consuming it), which is what informs predicted utility judgments. We illustrate the value of this idea by deriving and testing empirical predictions of disparities in the impact of different types of information and manipulations on the two types of value assessment.

Warnings of Adverse Side Effects Can Backfire Over Time

Warnings that a promoted product can have adverse side effects (e.g., smoking cigarettes can cause cancer) should dampen the product’s allure. We predicted that with temporal distance (e.g., when an ad relates to future consumption or was viewed some time earlier), this common type of warning can have a worrisome alternative consequence: It can ironically boost the product’s appeal. Building on construal-level theory, we argue that this is because temporal distance evokes high-level construal, which deemphasizes side effects and emphasizes message trustworthiness. In four studies, we demonstrated this phenomenon. For example, participants could buy cigarettes or artificial sweeteners after viewing an ad promoting the product. Immediately afterward, the quantity that participants bought predictably decreased if the ad they saw included a warning about adverse side effects. With temporal distance (product to be delivered 3 months later, or 2 weeks after the ad was viewed), however, participants who had seen an ad noting the benefits of the product but warning of risky side effects bought more than those who had seen an ad noting only benefits.