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Preference reversals in attraction effect on multistage decision making strategy

Abstract

Attraction effect that increased preference for target alternative when decoy alternative is added between two competitive alternatives can be easily found. However, not only the presented context but also consumer’s processing about the provided context have to be considered carefully because consumers sometimes evaluate alternatives with their own standards and it is possible that standard of selection is changed through additional information prior to purchasing. Therefore, this study will examine strengthened or mitigated attraction effect when attributes are processed through multistage decision making. Result of study 1 demonstrates that the selection of target alternative has declined, and selection of competitive alternative has increased when superior attribute information of target alternative is processed first. This is because shifting of focus to inferior attribute of target alternative after first stage of processing. On the contrary, when inferior attribute information of target is processed before superior attribute, selection of target alternative has increase and selection of competitive alternative has decrease as the result of shifting of focus to superior attribute of target. The Study 2 aims to examine whether it has the same results in price-quality trade-off situation. Result of study 2 shows that budgeting before choice diverts attention to quality, makes people have greater preference for high-quality and high-price alternative.

keywords
attraction effect, multistage decision making, attribute carryover effect, budgeting

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