Department of Marketing

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https://hdl.handle.net/10919/24244

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Browsing Department of Marketing by Subject "business"

Now showing 1 - 5 of 5
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    $29 for 70 Items or 70 Items for $29? How Presentation Order Affects Package Perceptions
    Bagchi, Rajesh; Davis, Derick F. (University of Chicago Press, 2012-06)
    When consumers consider a package (multi- item) price, which presentation order is more appealing, price first ($29 for 70 items) or item quantity first (70 items for $29)? Will this depend on package size (larger [70 items] vs. smaller [7 items]) or unit price calculation difficulty (higher [$29 for 70 items] vs. lower [$20 for 50 items])? Why? Three studies demonstrate how presentation order affects package evaluations and choice under different levels of package size and unit price calculation difficulty. The first piece of information becomes salient and affects evaluations when packages are larger and unit price calculations are difficult (i. e., priceitem [item-price] makes price [items] salient, negatively [positively] affecting evaluations). These effects do not persist with smaller packages or easier unit price calculations. Our findings contribute to several literatures (e. g., numerosity, computational difficulty) but primarily to the order effects literature and have implications for measurement and practice (e. g., pricing).
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    Affective Influences on Evaluative Processing
    Herr, Paul M.; Page, Christine M.; Pfeiffer, Bruce E.; Davis, Derick F. (University of Chicago Press, 2012-02)
    The past three decades have seen considerable debate about affect's influence on judgment. In three experiments, following manipulations of incidental, integral, and cognitively based affect, positive affect results in more efficient processing while negative affect appears to make judgments both less efficient and more effortful. Affect's influence is inferred from the consistency of participants' responses and the pattern of the positive-negative response latency asymmetry reported by Herr and Page, in which positive judgments appear to be relatively effortless and automatic while negative judgments require effortful and controlled processing. Positive affect reduced or eliminated the asymmetry while negative affect exacerbated it. Affect's influence appears consistent with a view of positive affect-induced processing efficiency.
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    The Effect of Red Background Color on Willingness-to-Pay: The Moderating Role of Selling Mechanism
    Bagchi, Rajesh; Cheema, Amar (University of Chicago Press, 2013-02)
    The authors investigate the effect of red backgrounds on willingness-to-pay in auctions and negotiations. Data from eBay auctions and the lab show that a red (vs. blue) background elicits higher bid jumps. By contrast, red (vs. blue) backgrounds decrease price offers in negotiations. An investigation of the underlying process reveals that red color induces aggression through arousal. In addition, the selling mechanism-auction or negotiation-alters the effect of color by focusing individuals on primarily competing against other bidders (in auctions) or against the seller (in negotiations). Specifically, aggression is higher with red (vs. blue or gray) color and, therefore, increases bid jumps in auctions but decreases offers in negotiations.
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    The Presenter's Paradox
    Weaver, Kimberlee; Garcia, Stephen M.; Schwarz, Norbert (University of Chicago Press, 2012-10)
    This analysis introduces the Presenter's Paradox. Robust findings in impression formation demonstrate that perceivers' judgments show a weighted averaging pattern, which results in less favorable evaluations when mildly favorable information is added to highly favorable information. Across seven studies, we show that presenters do not anticipate this averaging pattern on the part of evaluators and instead design presentations that include all of the favorable information available. This additive strategy ("more is better") hurts presenters in their perceivers' eyes because mildly favorable information dilutes the impact of highly favorable information. For example, presenters choose to spend more money to make a product bundle look more costly, even though doing so actually cheapened its value from the evaluators' perspective (study 1). Additional studies demonstrate the robustness of the effect, investigate the psychological processes underlying it, and examine its implications for a variety of marketing contexts.
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    Years, Months, and Days versus 1, 12, and 365: The Influence of Units versus Numbers
    Monga, Ashwani; Bagchi, Rajesh (University of Chicago Press, 2012-06)
    Quantitative changes may be conveyed to consumers using small units (e. g., change in delivery time from 7 to 21 days) or large units (1-3 weeks). Numerosity research suggests that changes are magnified by small (vs. large) units because a change from 7 to 21 (vs. 1-3) seems larger. We introduce a reverse effect that we term unitosity: changes are magnified by large (vs. small) units because a change of weeks (vs. days) seems larger. We show that numerosity reverses to unitosity when relative salience shifts from numbers to units (study 1). Then, arguing that numbers (units) represent a low-level (high-level) construal of quantities, we show this reversal when mind-set shifts from concrete to abstract (studies 2-4). These results emerge for several quantities-height of buildings, time of maturity of financial instruments, weight of nutrients, and length of tables-and have significant implications for theory and practice.