Mean and variability effects in decision framing
Date
2015
Authors
Greenacre, L.
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Journal article
Citation
Contemporary Management Research, 2015; 12(3):303-336
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Abstract
Framing a decision as a rejection can lead consumers to form different preferences than they would if that same decision were framed as a choice. These differences in preferences are called preference reversals. This paper extends research in this area,using a sequence of five studies to show that framing can change both mean preference and preference variability. The first study uses Discrete Choice Experiments to demonstrate the effects of framing a decision as a choice or rejection on decision outcomes. Study 2 uses eye-tracking to highlight that differences in information gathering during the experiment are unlikely to account for this difference. Studies 3 through 5demonstrate that differences in framing can be reduced through increasing task familiarity. A lack of familiarity with the task of rejecting leads consumers to change their mean preferences and also increases their preference variability for high- and low preferred products, compared to when they are choosing. These changes in preferences cease to occur when familiarity with rejecting increases, but only when that familiarity is specific to the product context under examination. This demonstrates that framing can beused to influence consumer preferences in two ways.