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Understanding the mechanism and determinants of compromise effects

โœ Scribed by Shibin Sheng; Andrew M. Parker; Kent Nakamoto


Publisher
John Wiley and Sons
Year
2005
Tongue
English
Weight
124 KB
Volume
22
Category
Article
ISSN
0742-6046

No coin nor oath required. For personal study only.

โœฆ Synopsis


Abstract

In this article, compromise effects are distinguished theoretically from attraction effects, which have received more research attention in the past. This article proposes and tests expectedโ€loss minimization under decision uncertainty as the underlying mechanism to explain compromise effects. Next, it examines the effects of a consumer's familiarity with the product and attributeโ€importance structure on compromise effects. The empirical results demonstrate the negative influences of familiarity and asymmetry of attribute importance on compromise effects, as well as the mediating effect of attribute importance on the familiarityโ€“compromiseโ€effect relationship. Further research directions are also discussed. ยฉ 2005 Wiley Periodicals, Inc.


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