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Preference Dynamics in Sequential Consumer Choice with Defaults.

Bas Donkers, Benedict G C Dellaert, Rory M Waisman

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    This summary is machine-generated.

    Defaults in sequential choices reduce how one choice affects future decisions. Setting high-price defaults can backfire by weakening these preference spillover effects for consumers.

    Keywords:
    behavioral decision theorychoice spilloverdefaultsfield studypreference constructionproduct customizationsequential consumer choice

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    Area of Science:

    • Consumer Behavior
    • Decision Science
    • Marketing

    Background:

    • Defaults influence product choice by promoting preselected options.
    • Consumer preferences can evolve in sequential decisions due to spillover effects.
    • The nuanced impact of defaults on evolving preferences in series of choices remains underexplored.

    Purpose of the Study:

    • To investigate how defaults affect choice spillover effects in sequential-decision settings.
    • To test the hypothesis that defaults attenuate spillover effects due to passive acceptance.
    • To provide practical insights for firms utilizing defaults in sequential choices.

    Main Methods:

    • Conducted three experiments and one field study.
    • Analyzed consumer choices in sequential-decision scenarios.
    • Examined the influence of default options on preference dynamics and spillover.

    Main Results:

    • Defaults systematically attenuate choice spillover effects.
    • Accepting a default is a more passive process than active choice.
    • High-price defaults can backfire by reducing spillover, contrary to firm intentions.

    Conclusions:

    • Defaults alter preference dynamics in sequential choices by dampening spillover effects.
    • Firms must consider the unintended consequences of default settings on consumer decision-making.
    • Understanding default-induced changes in choice spillover is crucial for effective marketing strategies.