Aspiration and compromise effect
Shih-Chieh Chuang1, Danny T Kao, Pei-Hsun Wu
1Department of Business Administration, National Chung Cheng University, Taiwan.
Psychological Reports
|March 26, 2008
Summary
Consumer aspiration for product quality influences choices. When product quality fell below expectations, the compromise effect was reduced, impacting consumer decision-making.
Area of Science:
- Consumer Psychology
- Behavioral Economics
Background:
- Consumer choices are influenced by reference points, including aspirations for product quality.
- Understanding these reference points is crucial for marketing and product development.
Purpose of the Study:
- To investigate the impact of consumer quality aspiration on the compromise effect.
- To determine how unmet quality expectations affect consumer decision-making.
Main Methods:
- Two experiments were conducted involving 722 participants (309 men, 413 women).
- Participants' quality aspirations and responses to product choices were measured.
Main Results:
- The compromise effect, a common consumer behavior, was found to decrease when product quality was below participants' aspiration levels.
- This suggests that unmet quality expectations alter how consumers make choices between options.
Conclusions:
- Consumer quality aspirations play a significant role in moderating the compromise effect.
- When quality falls short of aspirations, traditional compromise effects may be diminished, leading to different consumer choices.
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