Wednesday, August 31, 2011
Tuesday, August 30, 2011
Saturday, August 27, 2011
Tuesday, August 23, 2011
Monday, August 22, 2011
Economic Inequality Is Linked To Biased Self-Perception
Economic Inequality Is Linked To Biased Self-Perception
Thursday, August 18, 2011
Ambitious Goals = Satisfaction
Cho and her co-author and Gita Venkataramani Johar, a professor at Columbia University, set up two experiments to compare people who set ambitious goals to those who set conservative goals. They focused on situations in which goals were achieved, and measured the level of satisfaction with the achieved goals.
“The moral of the story is don’t sell yourself short,” Cho said. “Aim high.”
The paper, “Attaining Satisfaction,” has been published online in the Journal of Consumer Research. It will appear in the December issue of the journal.
The paper aimed to answer whether lowering expectations helps manage happiness. The question was answered through two experiments.
In the first one, 134 participants were asked to set a target rate of return that they would be satisfied with and asked to pick from a percentage range of 6, 8, 10, 12, 14, 16, 18 or 20. Low goal setters were defined as those who set the rate at 14 percent of lower. High goal setters were those who set the rate at greater than 14 percent.
Participants were then asked to allocate their $5,400 budget by picking three of 20 fictitious stocks presented to them.
After a 10-minute filler task, participants received the return of their stock portfolio, handwritten by the experimenter so it matched their goal. Participants were led to believe their stock allocation had been entered into a database to get actual returns.
The experimenters then concocted three feedback scenarios.
In the first one, only the stock performance information was provided. This is called the “default” condition of interest. In the second one, the participants were first told the typical return of stocks was 6 percent to 20 percent and then told how their stocks performed. In the last scenario, participants were first reminded what their goal was and then told how their stocks performed. Participants were then asked to rate their satisfaction on 9-point scales.
Of interest is whether all participants, who achieve their goals, are similarly happy. Existing research would predict that those who achieve their goals should be satisfied. Results suggested otherwise.
In the first “default” scenario, high goal setters average satisfaction was 7.85 while low goal setters were at 6.53.
In the third scenario, where the range of possible outcomes was reiterated, a similarly large gap occurred between high-goal setters (8.57) and low goal setters (6.98).
In the second scenario, where participants were reminded of their goal, the gap in happiness level between the two groups disappeared, with high goal setters at 7.72 and low goal setters at 7.46.
This suggested that when people set goals, they don’t necessarily recall this goal to evaluate their performance, but recruit a higher comparison point to do so. This upward comparison process likely negatively impacts their satisfaction with the performance of their portfolio.
A second experiment involving puzzles found similar results.
The paper is one of several about happiness and goals written or planned to be written by Cho, whose research focuses on consumer motivation and satisfaction.o
Ambitious Goals = Satisfaction
Consumers willing to pay for sustainable clothing
Gargi Bhaduri, a doctoral student, and Jung Ha-Brookshire, an assistant professor of textile and apparel management in the College of Human Environmental Sciences at the University of Missouri, surveyed apparel consumers to find out if they were willing to pay a premium for products produced using sustainable and ethical methods. She found that consumers would be willing to pay 15 to 20 percent more for such products. However, she also found that consumers are likely to remain skeptical about apparel companies’ claims of transparency and sustainability.
“While consumers seem willing to support businesses that do practice sustainability and ethics, general distrust in the transparency of all apparel businesses tend to keep consumers from spending money on those businesses with sustainable practices,” Bhaduri said. “To solve this issue, consumers seem to demand a universal standard authorizing agency to verify the claims of the businesses with transparent practices.”
Bhaduri and Ha-Brookshire found that consumer skepticism of corporate transparency stems from the suspicion that sustainability claims are falsified or exaggerated by apparel companies as marketing ploys. Their study suggests that consumers feel the need for authentication of these businesses’ claims from one standardized and objective authority, like the government, whom they can trust.
“The apparel industry is one of the most globalized modern industries,” Bhaduri said. “Multiple countries are involved in manufacturing a single garment, making it almost impossible for consumers to know all the suppliers involved in apparel manufacturing. Because of this, if a business wants to establish a relationship of trust with consumers, it is up to the business to supply finished goods with visible and accessible information concerning the global manufacturing processes.”
Bhaduri and Ha-Brookshire also found that consumers want information regarding product sustainability to be available conveniently. They suggests the use of such as hangtags, care labels, and point-of-purchase tags with clear information about their sustainable business practices so consumers can make an educated purchase decision.o
Consumers willing to pay for sustainable clothing
Decision Making Changes With Age – and Age Helps!
Decision Making Changes With Age – and Age Helps!
Tuesday, August 16, 2011
Brand-conscious consumers take bad news to heart
Brand-conscious consumers take bad news to heart
Monday, August 15, 2011
Friday, August 12, 2011
Social Acceptance and Rejection: The Sweet and the Bitter
Social Acceptance and Rejection: The Sweet and the Bitter
Wikipedia Gender Issue
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Wikipedia Gender Issue
Thursday, August 11, 2011
Relaxed Customers Buy 10 % More
"Relaxed consumers think products are worth more than less–relaxed consumers because relaxed individuals tend to think about the value of products at a more abstract level. For example, when bidding for the camera, relaxed participants focused more on what the camera would enable them to do (e.g., collect memories) and how desirable and advantageous it was to own it, whereas the less–relaxed participants focused more on the concrete features of the camera itself (e.g., the number of megapixels it had, the shutter speed)."
Download the article by clicking here.
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Relaxed Customers Buy 10 % More
Study reveals how the quality of a good and the assortment of choices available influences consumers
A forthcoming paper in the American Marketing Association’s Journal of Marketing Research by Professor Sheena Iyengar, S.T. Lee Professor of Business, Management; Marco Bertini, Assistant Professor of Marketing at London Business School; and Luc Wathieu, Associate Professor at McDonough School of Business, Georgetown University, provides evidence on the impact of the size and quality of an assortment has on a consumer when they make purchasing decisions. When consumers are confronted with a proliferation of options, they will sharpen their appreciation of quality, and a switch to superior products will become more enticing. Subsequently, a switch to inferior products will become less tolerable. The research was inspired by the phenomenon that for many upscale goods, such as wine, while variety available to consumers has increased, prices have also increased – contrary to economic models that find competition leads to lower prices. This is the first paper to illustrate the effect of choice and quality on a consumer’s willingness to pay.
The researchers conducted three controlled experiments and observed one natural experiment to come to their findings. In one of the controlled experiments, two different groups of participants were shown displays of different dark chocolates. The researchers distorted a single factor, assortment density, in this study. One group saw a selection of 21 chocolates, the other just five. Participants were told that the chocolates were ordered from left to right according to their "premium rating" used in the industry to gauge quality. A small label indicating the name and rating accompanied each piece. Consumers were asked what they were willing to pay for one of the chocolates, and on a scale of 1 to 7, how much they agreed with the statement: "Buying good quality is always important, but it is particularly important when it comes to chocolate."
The researchers found that participants offered the greater choice set were prepared to pay 40 percent more for high-quality chocolate than their counterparts who bid on the same piece in the sparse assortment. Those presented with more choices also reported higher scores on the importance of quality in their purchase decision. Further, the group with 21 choices offered to pay 33 percent less for a low-quality chocolate than the group with five choices. The researchers conducted an additional experiment with wine to rule out the possibility that the relationship between density and willingness to pay was caused by different perceptions of the range of qualities offered or by a simple demand effect. Consistent with the outcome of the first study, participants presented with 27 alternatives were prepared to spend significantly less on a Sauvignon Blanc picked from the cheapest price tier than their counterparts presented with 9 alternatives. The same group of participants, however, were prepared to spend significantly more on a Sauvignon Blanc picked from the average price tier.
Sheena Iyengar explains the significance of the study’s findings. “When the product is desirable instead of functional, consumers flooded with a range of choices will focus on quality, and not price. The choice set size should not be dictating what you are willing to pay, and yet it does. To avoid paying more just because the assortment is large, think about what it is you're going to be using the product for, and then decide what is more important – quality or price – in that specific case.”
The researchers found supporting evidence of this conclusion in the field through the auction market. They examined 63 wine auctions conducted by a leading global auctioneer in London between January 2006 and June 2009. Multiple wine bottles were auctioned off at each event, although the exact number varied from event to event. The researchers found that at events with a denser assortment of wine, people paid more for the bottles with high appraisals and less for the ones with lower appraisals. Furthermore, participants started bidding more for the high-end wines and offering lower prices for lesser vintages when a catalog contained 40 or more different price categories.
Study reveals how the quality of a good and the assortment of choices available influences consumers
Wednesday, August 10, 2011
Why Do Consumers Think Hard-to-Get Babes and Products Are Worth the Extra Effort?
Why Do Consumers Think Hard-to-Get Babes and Products Are Worth the Extra Effort?
Why Do Consumers Think Hard-to-Get Babes and Products Are Worth the Extra Effort?
Why Do Consumers Think Hard-to-Get Babes and Products Are Worth the Extra Effort?
Consumer Self-Esteem While Shopping: Maybe Good-Looking Clerks Shouldn’t Wear the Store Brands?
Consumer Self-Esteem While Shopping: Maybe Good-Looking Clerks Shouldn’t Wear the Store Brands?
New Study Says It’s Time to Stop Assuming Buyers and Salespeople Are in “Relationships”
New Study Says It’s Time to Stop Assuming Buyers and Salespeople Are in “Relationships”
Pulling a Fast One: How Do Consumers React to Zippy Disclaimers?
Pulling a Fast One: How Do Consumers React to Zippy Disclaimers?
Tuesday, August 9, 2011
Growing while Cutting Costs
Slashing prices was an essential tool to help companies survive the recession. But as growth comes back onto the agenda, a more integrated approach that balances cost and price according to market segment is going to be needed in the quest for high performance. New Accenture research explores the issues and points to areas of improvement. Download the paper by clicking here.o
Growing while Cutting Costs
Social Class as Culture
Social Class as Culture
Monday, August 8, 2011
Sunday, August 7, 2011
Wednesday, August 3, 2011
Getting to The Heart of The Appeal of Videogames
Getting to The Heart of The Appeal of Videogames