Journal of Consumer Research Inc. Choice Set Configuration as a Determinant of Preference Attribution and Strength Author(s): Song‐Oh Yoon and Itamar Simonson Source: Journal of Consumer Research, Vol. 35, No. 2 (August 2008), pp. 324-336 Published by: The University of Chicago Press Stable URL: http://www.jstor.org/stable/10.1086/587630 . Accessed: 27/10/2011 01:15 Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at . http://www.jstor.org/page/info/about/policies/terms.jsp JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact [email protected]. The University of Chicago Press and Journal of Consumer Research Inc. are collaborating with JSTOR to digitize, preserve and extend access to Journal of Consumer Research. http://www.jstor.org Choice Set Configuration as a Determinant of Preference Attribution and Strength SONG-OH YOON ITAMAR SIMONSON* Despite the growing consensus that consumer preferences are often constructed when decisions are made, we still know very little about the factors that determine the strength and stability of constructed preferences. We propose that the manner in which preferences are formed has a significant effect on their strength and stability. In particular, we propose that option set configuration, asymmetric dominance versus compromise, drives the decision process and whether consumers (consciously) focus on the chosen option or the context. This, in turn, affects the resulting decision process trace, as reflected in choice stability, confidence, and attribution. The results of five studies support this proposition. Thus, the strength of constructed preferences is a function of choice problem characteristics and the construction process. T here is a growing consensus that consumer preferences are often constructed when decisions are made rather than retrieved from memory (for reviews, see Bettman, Luce, and Payne [1998] and Simonson [1993]). The manner in which preferences are constructed makes them susceptible to a wide range of influences. For example, the asymmetric dominance effect (Huber, Payne, and Puto 1982) and the compromise effect (Simonson 1989) indicate that the configuration of a choice set can significantly affect the choices that consumers make. Similarly, the preference elicitation task and the description or framing of options can affect the construction of preferences (Levin and Gaeth 1988; Tversky, Sattath, and Slovic 1988). Despite the advances in our understanding of factors that affect the construction of preferences, we still know very little about the process of construction and what moderates the strength and stability of the resulting preferences. Are constructed preferences stable and resilient, at least in the short term, in which case the reference to “construction” is appropriate? Or are preferences reconstructed and possibly revised each time a decision needs to be made? These questions are central to the concept of preference construction and to our understanding of the susceptibility of preferences to long-run influences. Furthermore, this subject matter has important practical implications because marketers and marketing researchers often rely on expressed preferences at one time to predict preferences at a later time. Prior research has identified several indicators of the strength of attitudes (Eagly and Chaiken 1995, 1998; Krosnick et al. 1993; Krosnick and Petty 1994), which can also be applied to an analysis of the strength of preferences. In particular, the strength of preferences can be evaluated based on the confidence with which the preferences are held and the stability of preferences over time. In this research, we propose a bottom-up process of preference construction whereby problem characteristics affect the decision process and focus of attention, which in turn affect the decision process trace, including choice stability, confidence, and attribution. In particular, we distinguish between choice problems that make the role of the context transparent and problems that focus attention on the (perceived absolute) attractiveness of the options. The asymmetric dominance and compromise effects are particularly suitable for testing this general proposition. Specifically, prior research has established that the asymmetric dominance effect reflects a case wherein consumers typically do not recognize the impact of the context or set configu- *Song-Oh Yoon is assistant professor of marketing at Korea University Business School, Anam-Dong, Seongbuk-Gu, Seoul 136–701, Korea ([email protected]). Itamar Simonson is the Sebastian S. Kresge Professor of Marketing at the Graduate School of Business, Stanford University, Stanford, CA 94305-5015 ([email protected]). The research is based on the PhD dissertation of the first author, and part of the research was conducted at Singapore Management University while the first author was there as an assistant professor. This research was supported by the Behavioral Research Fund from the Graduate School of Business at Stanford University and by a research grant from Lee Kong Chian School of Business, Singapore Management University. The authors thank the editor, the associate editor, and the reviewers for their helpful comments. John Deighton served as editor and Stephen Nowlis served as associate editor for this article. Electronically published June 3, 2008 324 䉷 2008 by JOURNAL OF CONSUMER RESEARCH, Inc. ● Vol. 35 ● August 2008 All rights reserved. 0093-5301/2008/3502-0011$10.00. DOI: 10.1086/587630 SET CONFIGURATION AND PREFERENCE STRENGTH ration on their preference for the dominating option, which they usually attribute to that option’s attractive attribute values (Dhar and Simonson 2003; Novemsky et al. 2007; Simonson 1989). However, when choosing a middle option, consumers often explicitly refer to that selection as a compromise between conflicting preferences. Dhar and Simonson (2003) labeled the former a “perceptual” effect and the latter a “cognitive” effect. Thus, we propose that choices of asymmetrically dominating options result in constructed preferences that are stronger and more stable than choices of compromise options. Figure 1 contrasts the sequence of “events” hypothesized to occur during and as a result of choosing asymmetrically dominating and compromise options. This process and its indicators are examined in a series of studies. In study 1, we test the prediction that preferences for asymmetrically dominating options are more stable and tend to be more resistant to contextual changes than preferences for compromise alternatives. Study 2 uses choice and context recognition as an indicator of the focus of attention during the process leading to selection of asymmetrically dominating versus compromise options. In study 3, we further examine the decision trace resulting from the process of choosing asymmetrically dominating versus compromise options, focusing on choice confidence and the stated reasons for the choice. In study 4, we test the hypothesized (mis)attributionbased account for each choice type and show that making the context effect transparent decreases the asymmetric dominance effect but not the compromise effect. Finally, in study 5, we explore whether contextual influence can affect the stability of preferences even after actual experience with the selected product. Specifically, we test whether the perceived experience with a given option is more favorable and whether that option is more likely to be purchased after being selected from a set in which it was asymmetrically dominating. We conclude with a discussion of the theoretical and practical implications of this research. 325 THE CONTEXT OF CONSTRUCTION AS A DETERMINANT OF PREFERENCE STRENGTH Although there has not been much research regarding the strength and stability of constructed preferences (except for Amir and Levav 2008; Hoeffler and Ariely 1999), there has been a great deal of research in social psychology on the meaning and moderators of attitude strength (Eagly and Chaiken 1995, 1998; Krosnick et al. 1993; Krosnick and Petty 1994). In particular, strong attitudes are characterized by high levels of confidence and stability (Chaiken and Baldwin 1981; Fazio and Zanna 1978; Judd and Johnson 1981; Schuman and Presser 1981). Attitude confidence has been defined as the degree to which an individual is certain that his or her attitude is correct (Budd 1986; Krosnick and Schuman 1988). Beyond confidence, strongly held attitudes are more likely to remain unchanged over time, to persist across different contexts, and to resist persuasion attempts (Eagly and Chaiken 1998; Krosnick et al. 1993; Petrocelli, Tormala, and Rucker 2007). Consistent with past research on attitude strength, we define strong preferences as those that are held with greater confidence, are more stable, and are resistant to change. In particular, strong preferences are less likely to change over time, even when the context that influenced the original choice has changed. An important question that has received little attention in both the attitude and decision literatures refers to contextual factors that affect the strength of constructed attitudes/preferences. In the present research, we argue that the context within which preferences are constructed and, in particular, the choice processes triggered by the set configuration can affect the strength of constructed preferences and the attributions consumers make regarding the causes of their decisions. We expect preferences that are formed under the influence of nontransparent effects (such as the asymmetric dominance effect) to be stronger and more stable than those FIGURE 1 A BOTTOM-UP (MIS)ATTRIBUTION PROCESS MODEL AND RESULTING DECISION TRACE 326 produced under the influence of transparent context effects (such as the compromise effect). Figure 1 outlines a bottom-up process underlying the impact of choice set configuration on the decision processes and the resulting decision trace. We propose that the set configuration, asymmetric dominance or compromise, affects the focus of attention—the focal option versus the choice context—and the manner in which the problem is resolved. These differences, in turn, determine both the resulting choice attribution, confidence, and stability. A set configuration with asymmetric dominance produces a (perceived) choice between two options, one of which seems particularly attractive. Conversely, a compromise configuration calls attention to the context—three options with a middle option that “combines” both attributes. The different attention focus triggered by the problem configuration is expected to affect the resulting decision trace, including the consumer’s attribution regarding the reason for choice, the confidence about the choice, and the stability of the preference for the selected alternative. Regarding choice attribution, preferences for compromise options are likely to be seen as suitable for, and the outcome of, a particular choice problem; that is, it is a context-specific solution. Conversely, preferences for asymmetrically dominating options, which are assumed to reflect the consumer’s underlying preference for an attractive option and not merely the outcome of a particular choice context, are expected to be held more strongly and to be more stable. Consistent with this analysis, prior research has shown that asymmetric dominance and compromise effects differ in their underlying processes and their transparency. Asymmetric dominance is more of a “perceptual effect” (Dhar and Simonson 2003; Simonson 1989), whereby consumers typically fail to recognize the impact of the dominated option on the perceived attractiveness of the dominating option. For example, those choosing the dominating option rarely mention the dominated option in their think-aloud protocols (Simonson 1989). Instead, they tend to explain their choices in terms of their underlying preference for the dominating option (e.g., attribute importance or preference for the option’s absolute attribute values). Furthermore, consistent with the notion that consumers perceive their preference for asymmetrically dominating options to be based on the option’s attractive (absolute) features rather than as a way to resolve difficult choices, Dhar and Simonson (2003) showed that adding the option not to choose any of the alternatives has little (or even a positive) effect on the choice share of dominating options. Conversely, consumers often recognize and explicitly refer to compromise as the reason for their choice of a middle option (e.g., “I’ll take the middle one”; “B is a good compromise”; Simonson 1989), whereas relatively few consumers explain it based on the option’s attractive attribute values. Also, consistent with the notion that choices of compromise (middle) options are often seen as a way to avoid difficult trade-offs (Luce, Payne, and Bettman 1999), the introduction of a “no choice” option significantly diminishes the JOURNAL OF CONSUMER RESEARCH choice share of compromise options (Dhar and Simonson 2003). Furthermore, Novemsky et al. (2007) demonstrate that consumers are more likely to select a compromise option when they have difficulty generating reasons for preferring any particular alternative in the set. This evidence suggests that compromise alternatives are often consciously selected as a means to resolve the conflict arising from the need to make difficult trade-offs. In addition to choice attribution, as shown in figure 1, the tendency to focus on the asymmetrically dominating option or on the context is expected to influence the resulting preference strength. In particular, when the context’s influence on preference construction is transparent, the resulting preferences for the chosen options are expected to be weaker, that is, less stable and associated with lower confidence. Thus, the choice stability, confidence, and attribution are simultaneously determined by the process triggered by the set configuration. The discussion leads to the following hypotheses: H1: Preferences for asymmetrically dominating options are more stable than preferences for compromise options. H2: Compared to compromise option choosers, choosers of asymmetrically dominating options have a better long-term recognition for the option they chose but a poorer recognition for the options they did not choose. H3: Preferences for asymmetrically dominating options are held with greater confidence than preferences for compromise options. H4: Preferences for asymmetrically dominating options tend to be attributed to the option’s (absolute) attractiveness whereas the role of the choice set context is transparent in the case of compromise choices. STUDY 1 In study 1, we test the prediction that choices of asymmetrically dominating options are more stable than choices of compromise options (hypothesis 1). Specifically, we examine whether preferences for asymmetrically dominating options are more likely to persist even when the same option is evaluated at a later period in a set in which it is not asymmetrically dominating. Thus, in the first experimental session (T1), participants chose from a set with either an asymmetrically dominating or a compromise option (the “target option”). A week later, in the second experimental session (T2), they chose from a set containing just two of the original three options from T1 (i.e., a set containing only the target and the competing option). The likelihood of participants choosing the same target option at T1 and T2 allows SET CONFIGURATION AND PREFERENCE STRENGTH us to contrast the durability of the asymmetric dominance and compromise choice. Method Two hundred and ten undergraduate respondents at Stanford University participated in both sessions and received $10.00 upon completion of the second session. In both week 1 (T1) and week 2 (T2), respondents were asked to choose one option from a provided choice set in three product categories. Two of the three options in both the asymmetric dominance and the compromise choice sets were identical. For example, as shown in figure 2, the attribute values of Phone A (target option) and Phone C (competing option) in the asymmetric dominance choice set were the same as those of Phone B (target option) and Phone C (competing option) in the compromise choice set. Only the third option differed between the two sets so as to create either an asymmetric dominance or a compromise configuration. Respondents made choices in three product categories, including microwave ovens, cordless phones, and automobiles. The choice sets were similar to those used in prior studies of the asymmetric dominance and compromise effects (Dhar and Simonson 2003; Simonson 1989), with options described on 327 two attributes. The market range of each attribute value was explicitly presented in the questionnaire. Respondents were randomly assigned to one of the three conditions that differed only with respect to the choice set at T1: (a) asymmetric dominance, (b) compromise, or (c) control. The control choice set contained only the “core” two-option set consisting of the target and the competing options. At T2, all respondents evaluated the same twooption choice sets, with those in the control group again evaluating the same set they considered in the previous week. In both T1 and T2, the order of the product categories and the order of the options within each product category were randomized and the market range for each attribute value was provided in the questionnaire. Also, to minimize the potential effect of participants’ desire to appear consistent in their choices over time, they were asked to create an ID number at T1, and this was used in both experimental sessions. Results and Discussion We tested hypothesis 1 by comparing the proportions of respondents in each condition who chose the same target option at both T1 and T2 (pooling across the three prod- FIGURE 2 STUDY 1: AN EXAMPLE OF THE THREE VERSIONS OF A PROBLEM JOURNAL OF CONSUMER RESEARCH 328 ucts).1 The results show that there was a significant main effect of the choice set on the consistent choice (x 2 (2) p 7.27, p ! .05). As expected, the proportion of respondents who selected the asymmetrically dominating option at T1 (from a three-option set) and again at T2 (from a two-option set in which it was not dominating) was greater than the corresponding proportion of consistent compromise option choosers (M p 83% vs. M p 60%; z p 3.84, p ! .01). The choice consistency level was similar in the control and the asymmetric dominance groups (M p 90% vs. M p 83%, respectively; z p 1.50, p 1 .10), whereas the consistency level in the compromise group was significantly lower than in the control group (M p 60% vs. M p 90%; z p 5.05, p ! .01). It is noteworthy that the finding of similar (or slightly higher) consistency in the control (two-option set) condition is not surprising considering the lower likelihood of choosing the same option twice from a three-option set as compared to a two-option set. An alternative way to analyze the results is to examine the asymmetric dominance and compromise effects at T1 and separately at T2 by comparing the shares of the target options with the shares of the same options in the control group. At T1, both the asymmetric dominance (M p 66% vs. M p 49%; z p 3.34, p ! .01) and the compromise (M p 67% vs. M p 49%; z p 3.53, p ! .01) effects were statistically significant. However, at T2, the enhanced share of the previously asymmetrically dominating option was still (marginally) evident (M p 62% vs. M p 52% in the control; z p 1.96, p ! .10), whereas the previous compromise option was no longer different from the corresponding control option (M p 48% vs. M p 52%; z p .78, p 1 .10). The time by choice set interaction effect was marginally significant (Wald(2) p 4.85, p ! .10). Again, these findings are consistent with hypothesis 1. However, a potential rival explanation is that the greater stability of asymmetric dominance choice was due to its “extreme” position in the set. That is, the asymmetrically dominating option was always the extreme option at both T1 and T2, whereas the compromise option was necessarily positioned in the middle of the set. Thus, the greater consistency of preferences for asymmetrically dominating options might have reflected a stronger preference for the highest (or lowest) quality/price option rather than a more stable preference for asymmetrically dominating options in general. To test the “extreme position” rival account, we conducted a follow-up study, which, in addition to the existing three choice set conditions, included a condition in which the asymmetrically dominating option was not an extreme option at T1. In this new condition (hereafter referred to as the “non–extreme asymmetric dominance condition”), the target option still asymmetrically dominated another alternative (i.e., the “decoy”), but it was no longer in the “extreme” position (e.g., the highest quality alternative). If preferences for the dominating options in this condition are still 1 We do not find any significant interaction effects involving product category in the analyses reported in this and all other studies (all p’s 1 .10). Thus, we only show the results pooled across product types. more stable than preferences for these (same) options when they are first selected as compromise alternatives, then the rival account based on the extreme position of the dominating option can be rejected. In this follow-up study (n p 160), we observed a similar pattern in the non–extreme group as in the (extreme) asymmetric dominance condition. As expected, the proportion of those selecting the same option at T2 was significantly smaller among the compromise option choosers (M p 56%) than among the extreme (M p 78%; z p 3.34, p ! .01) and non–extreme dominating option (M p 71%; z p 2.00, p ! .05) choosers. Although the consistency rate for the non–extreme dominating option was lower than for the extreme dominating option, this difference was not statistically significant (M p 71% vs. M p 78%; z p 1.06, p 1 .10). In summary, the results of both study 1 and the followup study demonstrate that preferences for asymmetrically dominating options are more stable and more resistant to contextual change than are preferences for compromise options. Specifically, those who chose the dominating option were significantly more likely to choose the same option a week later from a two-option set than those who first selected that option from a set where it was a compromise alternative. In the follow-up study, we also ruled out the rival account based on the extreme position of the dominating option by showing a similar pattern in the choice sets in which the asymmetrically dominating option was not the extreme alternative in terms of its attribute values. STUDY 2 As summarized in figure 1, our analysis indicates that choice sets with asymmetric dominance trigger a focus on the dominating often-selected option, whereas the role of the context (i.e., including the nonchosen options) is more transparent in compromise sets. Accordingly, we expect that, compared to compromise option choosers, choosers of asymmetrically dominating options will have a better longterm recognition for the option they chose but a poorer recognition for the options they did not choose (hypothesis 2). Study 2 tests this prediction. Method Eighty student respondents at Stanford University each received $10.00 after completing two experimental sessions. They made choices in the first week (T1) and were given an option recognition task a week later (T2). This study employed the same within-subject design as study 1, and it also used a similar procedure. Subjects made choices in four product categories: food processors, lawn mowers, portable grills, and binoculars. These four products were chosen because undergraduate subjects are less familiar with these products than they are with the products used in the previous study, and therefore this provides a stronger test of option recognition. About half of the respondents received the asymmetric dominance version, and the other half received the compromise version (with the same two core options). SET CONFIGURATION AND PREFERENCE STRENGTH 329 In each of these product categories, moderately familiar brand names were selected (e.g., KitchenAid, Black and Decker, and Cuisinart for food processors). These brand names were associated with comparable evaluations, based on information provided by the Consumer Reports Buying Guide. The order of the product categories was randomized. To assess recognition level at T2, subjects were given six brand names in each category, including three names that had not been evaluated at T1. They were asked to (a) identify the brand names evaluated in the previous week and (b) identify the brand they had chosen in each category. The presentation order of the six categories and the order of the brand names in each product category were randomized. Results and Discussion We first compared the percentage of people who correctly recognized their previously chosen option when it was an asymmetrically dominating option versus a compromise alternative in the first week. As shown in table 1, consistent with hypothesis 2, pooling across the four products, choosers of asymmetrically dominating options were marginally significantly more likely to correctly identify their earlier choice than were choosers of compromise options (M p 47% vs. M p 34%; z p 1.77, p ! .10). A within-condition comparison shows that the dominating option choosers were able to recognize their previous choices better as compared to those who did not select the dominating options in the asymmetric dominance condition (M p 47% vs. M p 32%; z p 2.00, p ! .05). However, the recognition of the previous choice did not differ significantly among those who selected the compromise versus the noncompromise options in the compromise condition (34% vs. 29%; z p .63, p 1 .10). In contrast to the superior recognition of their previous choice, the mean number of previously unchosen alternatives correctly recognized was actually smaller among those who had chosen the dominating options than among those who had chosen the compromise options (M p 1.31 vs. M p 1.55; t(178) p 2.55, p ! .01). This finding supports hypothesis 2. Comparing the recognition performance of those who selected the focal option versus the nonfocal option within the asymmetric dominance condition, choosing the dominating option was associated with a poorer recognition of unchosen options than was choosing the nondominating option (M p 1.31 vs. M p 1.56; t(158) p 2.52, p ! .05). Conversely, the corresponding difference between the focal option and nonfocal option choosers in the compromise condition was not significant (M p 1.54 vs. M p 1.58; t(146) p .32, p 1 .10). Overall, these recognition patterns are consistent with the disproportional focus on, and the enhanced attractiveness of, the asymmetrically dominating option as compared to preferences for compromise options that tend to be explicitly based on the position of the selected options within the available choice set. In addition, these results are consistent with choice explanations offered by choosers of dominating versus compromise options (Simonson 1989; see also the analysis of reasons in study 3). That is, on the one hand, choosers of asymmetrically dominating options tend to explain their decisions based on the attribute values of their chosen options and are less likely to refer to these options’ relative position in the set. On the other hand, compromise option choosers often consciously and explicitly consider the position of their chosen options in the set. STUDY 3 In study 3 we tested two indicators of the impact of the choice process triggered by each set configuration on the decision process trace: choice confidence and the stated reasons for choice (hypotheses 3 and 4). We again used two choice set configurations, with the focal option asymmetrically dominating another option in one version and a compromise option in the other version. In both conditions, subjects first chose an option and then rated the confidence in their decision. In addition, although the issue has been examined in prior research (Dhar and Simonson 2003; Simonson 1989), we asked respondents to explain each decision, which allowed us to test the hypothesis that individuals who select TABLE 1 STUDY 2: RECOGNITION OF OPTIONS BY ASYMMETICALLY DOMINATION VERSUS COMPROMISE OPTION CHOOSERS Average percentage of correct recognition of their own choice Food processor Lawn mower Grill Binocular Mean Average number of unchosen alternatives correctly recognized Dominating option choosers (n p 87) Compromise option choosers (n p 93) Dominating option choosers (n p 87) Compromise option choosers (n p 93) 54 24 50 53 47 38 10 35 48 34 1.30 1.35 1.31 1.30 1.31 1.62 1.57 1.55 1.48 1.55 NOTE.—The n-size represents the target option choosers in each condition pooled across the four products. 330 compromise options are more likely to rely on contextual factors than are choosers of asymmetrically dominating alternatives. Method Study participants were 120 students at Stanford University; each received $2.00 for participation. Participants were randomly assigned to one of the two conditions that differed only with respect to the choice set: asymmetric dominance or compromise set. Similar to the sets tested in the earlier studies, two of the three options in both the asymmetric dominance and compromise choice sets were identical. Respondents made choices in three product categories: microwave ovens, cordless phones, and automobiles (with provided attribute value range). After indicating each choice, respondents rated on a 7-point scale the degree to which they were confident that the option they selected was the best option among the alternatives in the set (1 p not at all confident, 7 p very confident; Budd 1986; Krosnick et al. 1993). Finally, respondents were asked to write down the most important reason for their choice. Results and Discussion The confidence scores for the choice of the target options (i.e., the asymmetrically dominating options in the asymmetric dominance condition and the compromise options in the compromise condition) were aggregated across the three products. The mean choice confidence rating was significantly higher when respondents chose the asymmetrically dominating alternatives as compared to the compromise alternatives (M p 5.86, SD p 1.04 vs. M p 4.76, SD p 1.25; t(198) p 5.73, p ! .01). Thus, consistent with hypothesis 3, choices of asymmetrically dominating options were associated with greater confidence than choices of compromise options (holding the target options constant). Next, the thought protocols of choice explanations were analyzed by two independent judges who were blind to the hypotheses. Provided explanations were classified as referring to (a) attribute importance, (b) specific attribute values of the chosen options, (c) other alternatives in the set, (d) the chosen option’s relative position in the set, or (e) “other.” Also, to investigate a potential difference in the attribute on which choosers of the dominating and compromise options focused, responses were further coded based on the attribute highlighted in the choice explanation. The average interjudge reliability was 76%, and disagreements were resolved by a third independent judge. A greater number of reasons were listed on average by dominating option choosers as compared to compromise option choosers (M p 1.46 vs. M p 1.24; t(153) p 2.60, p ! .05). However, there was no significant difference in the number of reasons referring to the specific dimensions (e.g., quality vs. price). More important, while the average frequency of explanations based on attribute importance did not differ significantly between the two groups (e.g., “I don’t JOURNAL OF CONSUMER RESEARCH care about price; quality is the most important factor,” Mdominating p .41 vs. Mcompromise p .45; z p .50, p 1 .10), dominating option choosers were more likely to mention their chosen option’s specific attribute values than were compromise option choosers (e.g., “150 ft. range is a reasonable distance,” M p .67 vs. M p .45; z p 2.74, p ! .01). We observed this effect regardless of whether the chosen option’s superior dimension was price or quality. Furthermore, consistent with prior research, the frequency of references to the chosen option’s position (e.g., “It is a compromise option”) was significantly higher among the compromise option choosers than among the dominating option choosers (M p .24 vs. M p .10; z p 2.28, p ! .05). Although it did not reach statistical significance, compromise option choosers also tended to mention other options in the set more frequently than did the dominating option choosers (e.g., “I chose option A because it is a better deal compared to B,” M p .36 vs. M p .28; z p 1.06, p 1 .10). Consistent with prior evidence (Dhar and Simonson 2003; Simonson 1989), these results suggest that choices of the dominating options are misattributed to the overall attractiveness of the option, whereas compromise choices are often correctly attributed to the option’s intermediate position in the set. Also, in line with our analysis, we found that the average confidence score was significantly greater among respondents who mentioned specific attribute values as their reasons for the choice than among those who did not (M p 5.42, SD p 1.22 vs. M p 4.97, SD p 1.48; t(354) p 3.12, p ! .01). This finding further supports the notion that preferences that are presumed to be based on noncontextual reasons tend to be associated with a higher level of preference confidence. In the next study, we further examine the impact of the decision processes triggered by asymmetric dominance and compromise problems on choice attribution. Specifically, as an additional test of hypothesis 4, we investigate whether a procedure that makes the context effect more transparent has a greater effect on the propensity to select dominating versus compromise options. STUDY 4 Our analysis indicates that preferences constructed under the influence of asymmetric dominance often fail to recognize the effect of the particular choice set context on their preferences, which are attributed instead to the attractive (absolute) attribute values of the options. Conversely, the context dependency of preferences for compromise options is often transparent. This analysis suggests that, if the (absolute) attribute values of the dominating options can be separated from the relative position of that option in the set, the asymmetric dominance effect will be attenuated. Thus, once both the asymmetric dominance and compromise positions are attributed to the manner in which the set was constructed, the attributions and the corresponding impact of the set configuration should be symmetric. In particular, if consumers know that the asymmetric dominance relation in the set was SET CONFIGURATION AND PREFERENCE STRENGTH 331 created by adding a dominated option, the impact of asymmetric dominance becomes transparent and the tendency to select the asymmetrically dominating option should be diminished. By contrast, the popularity of the compromise option should not decrease and might even increase when the manner in which the set was constructed is transparent because this information will further enhance the perception of the middle option as an intermediate option that represents a compromise whereas the “extreme” (noncompromise) options may appear to be even more extreme. We are planning to conduct a study of consumer decision making and we need your assistance in preparing the choice problems that will be given to participants in that study. Specifically, we have already decided on the product categories in which we will ask participants in that study to make choices, and we also selected two options in each choice category. However, we want to add a third option to each choice set, so that participants in that study can choose among three options instead of just two. In each case, we already identified two candidates for the “third option” that might be added. Your job is to select which of these two options you think would be better as the third option to be added to the choice set. To indicate which option we should add, simply cross out the one option you believe we should NOT add. Method The respondents in study 4 were 313 students at Singapore Management University, each of whom received S$5.00 for participation. These respondents made choices in four product categories: microwave ovens, digital camcorders, laser printers, and automobiles. The study employed a 2 (third option inclusion: respondent-selected vs. given) # 2 (choice set: asymmetric dominance vs. compromise set) # 2 (location of the third option) between-subjects design. The first factor indicates whether the third option was added to the choice set by respondents (“respondent-selected”) or by the experimenter beforehand (“given”). That is, in the respondent-selected groups, the construction of each set was made transparent by first asking respondents to choose a third option to add to a set of two preselected (core) options; as explained below, we later asked respondents to choose from the set of three options that they helped construct. We first gave these respondents the following instructions: As illustrated in figure 3, respondents in the respondentselected conditions were asked to choose between options 3a and 3b to add to a core set, with the two candidate additions being on opposite sides of the core set (designed to make the selection task more meaningful). After completing the third-option addition task in all four problems, respondents were asked to assume that the third option they had selected for each set was indeed added to the set and to indicate the choice they would make from the complete three-option set. In the “given” condition, respondents were not asked to participate in the construction of the set. They received a complete three alternatives set (either option 1, option 2, and option 3a or option 1, option 2, and option 3b; see fig. 4) and indicated the choices they would make in each category. FIGURE 3 STUDY 4: AN EXAMPLE OF THE COMPROMISE CHOICE SET IN THE “RESPONDENT-SELECTED” CONDITION JOURNAL OF CONSUMER RESEARCH 332 FIGURE 4 STUDY 4: THE GRAPHICAL ILLUSTRATION OF EACH CHOICE SET CONFIGURATION As indicated, we predicted that self-selection (vs. given) would have a different impact on the choice share of the core option for each choice set. Specifically, self-selecting the clearly inferior option was expected to decrease the share of the dominating option, whereas self-selecting the straight trade-off extension was expected to have no effect or to increase the share of the compromise (adjacent core) option. We made no predictions regarding the effect of self-selecting the mildly inferior third options, which were somewhat inferior to the adjacent core option while also making it appear more like a compromise. Results and Discussion We first performed an overall test, using a logistic regression with participants’ choice of the relevant core option as a dependent variable. The following variables were included as independent variables: (a) choice set (0 p compromise, 1 p asymmetric dominance set); (b) third-option inclusion (0 p given, 1 p respondent-selected); (c) thirdoption location (0 p 3a, 1 p 3b); (d) two-way and higher order interaction terms. The results (see table 2 and fig. 5) show a pattern consistent with our expectations: pooling across the four products, we observed a marginally significant three-way interaction effect (Wald(1) p 2.82, p ! .10). Further analyses reveal different outcome patterns for each choice set configuration. Specifically, in the asymmetric dominance set, NOTE.—Options 3a and 3b in the compromise set indicate compromise extensions. Options 3a and 3b in the asymmetric dominance set represent clearly inferior and mildly inferior options, respectively. The second and third design factors referred to the location of the third option (fig. 4). Specifically, the third option was either inferior relative to the adjacent core option (asymmetric dominance set) or it extended the set in a way that made the adjacent core option a compromise (compromise set). In addition, in the case of the inferior third options (relating to the asymmetric dominance test), the option was either clearly inferior (3a) or mildly inferior (3b) relative to the adjacent core option. Third options that extended the set along the same trade-off slope (relating to the compromise test) were on either side of the core set. Thus, the third option was in one of four positions (see fig. 4): clearly inferior, mildly inferior, or a straight extension on either side of the core set. To make certain that the various third-option positions were perceived as intended, we ran a pilot study with 58 respondents from the same student population. Respondents rated the relevant core option and adjacent third option in terms of overall attractiveness. The results of the pilot study confirmed that the attractiveness of the core option relative to the third option was significantly greater in the case where the third option was designed to be clearly inferior as compared to the third option that was designed to be mildly inferior (in all cases, the differences were significant at p ! .05, or, in one case, p ! .10). FIGURE 5 STUDY 4: THE CHOICE SHARE OF THE TARGET OPTION IN EACH CHOICE SET CONDITION SET CONFIGURATION AND PREFERENCE STRENGTH TABLE 2 STUDY 4: THE CHOICE SHARE OF THE OPTIONS IN EACH CONDITION Choice share (%) Choice set Attraction: Third-option 3a inclusion: Given (n p 34) Respondent-select (n p 51) Third-option 3b inclusion: Given (n p 34) Respondent-select (n p 38) Compromise: Third-option 3a inclusion: Given (n p 35) Respondent-select (n p 41) Third-option 3b inclusion: Given (n p 35) Respondent-select (n p 46) Option Option Option Option 3a 1 2 3b 17 25 25 24 62 51 20 24 45 24 39 55 57 61 18 15 45 23 33 44 333 the share of the core option was higher in the self-selected third-option group than in the given third-option group was when the third option was clearly inferior. In other words, when respondents participate in and recognize the manner in which the asymmetric dominance relation was formed (i.e., the fact that they added the dominated option), the effect is eliminated, consistent with our misattribution-based analysis. Conversely, the self-addition of a third option that extends the trade-off line and makes the compromise position of the adjacent core option more salient tends to enhance that option’s choice share. STUDY 5 16 21 22 33 NOTE.—The target options for the 3a and 3b third-option conditions are option 1 and option 2, respectively. there is a significant third-option inclusion by third-option location interaction effect (Wald(1) p 10.84, p ! .01), which indicates that the impact of self-selection on the subsequent choice of the target option depends on the characteristic of the third option. As predicted, the choice share of the dominating target option (option 1) decreased substantially when the clearly dominated third option (option 3a) was selected by the respondents as compared to when it was given by the experimenter (M p 51% vs. M p 62%; z p 2.00, p ! .05). Conversely, such an effect of selfselecting the third option was not observed for the added/ given third option (option 3b) that was only mildly dominated by the adjacent core option (option 2). In fact, the choice share of the target option increased when the third option was self-selected versus given (M p 55% vs. M p 39%; z p 2.71, p ! .01). That is, while the self-selection of the clearly inferior third option had a negative impact on the choice of the adjacent target option, selfselection of only mildly inferior third options actually helped to increase the choice share of the adjacent core option. This result might be due to the fact that the mildly inferior third option made the adjacent core option appear to be a compromise alternative. For the compromise choice sets, there was a (marginally) significant third-option inclusion main effect (Wald(1) p 3.10, p ! .10), reflecting an increase in the share of the core option (in the self-selection group), and no significant thirdoption inclusion by location interaction effect (Wald(1) p .84, p 1 .10). On average, the share of the core (compromise) option was only 7% higher in the “self-selected” (M p 52%) as compared to the “given” (M p 45%) group. This result is consistent with our prediction, considering that selfselecting the extreme option was likely to make the compromise position of the adjacent core more salient. In sum, the above findings show that the only case where A key conclusion from the above studies is that context effects in which the resulting preferences are attributed to the selected option’s absolute attribute values (e.g., asymmetric dominance) tend to be stronger than preferences that are known to have been influenced by the context (e.g., compromise). However, putting the comparison to preferences for compromise options aside, how can we assess the impact, if any, of the strong preferences for options that were selected from sets in which they were asymmetrically dominating? We examine this question in study 5 by testing whether the mere fact that a selected option was asymmetrically dominating can also affect the perceived actual experience with that option. Prior research has shown that prior beliefs can influence the perceived experience with a product (Levin and Gaeth 1988; Shiv, Carmon, and Ariely 2005). However, we are not aware of any existing evidence that choice context effects, such as asymmetric dominance, can affect perceived product efficacy. In particular, showing that asymmetric dominance enhances the perceived efficacy of a product even after actual usage will be an indicator of the strength of preferences constructed under the influence of such an effect. As described next, after making a choice, respondents in this study used and then evaluated the product they chose. In addition, they were given the option to pay $2.00 in order to keep that product. Method Participants were 176 students at Stanford University, each of whom received $10.00 for participation. Participants were told that they would also have the option of purchasing a small gift at a discounted price. They were then presented with a set of either two or three candidate gifts. The control group evaluated two products: a target pen (Pilot Pen: retail price p $2.75) and a plastic folder (retail price p $2.50). Participants assigned to the asymmetric dominance group saw an additional (decoy) pen (BIC: retail price p $.95). We pretested the option set with 45 students who did not participate in the main study. The attractiveness ratings showed that the Pilot Pen and the folder were perceived as equally attractive (M p 5.73, SD p .96 vs. M p 5.66, SD p .72; t(28) p .22, p 1 .10) and as having a similar store price (M p $3.07, SD p .60 vs. M p $2.97, SD p JOURNAL OF CONSUMER RESEARCH 334 .52; t(28) p .53, p 1 .10). By contrast, the BIC pen was perceived as less attractive (M p 2.10, SD p .92) and as less expensive (M p $1.00, SD p .29) than both the Pilot Pen and the folder (all p’s ! .01). After participants indicated their choice from the set, those who selected a pen received it and were asked to scribble with it on a piece of paper for 2 minutes. They then evaluated the pen on three items: (a) overall quality of the pen (1 p very bad, 7 p very good), (b) smoothness of the pen (1 p not at all smooth, 7 p very smooth), and (c) overall satisfaction with the pen (1 p not at all satisfied, 7 p very satisfied). Those who chose the folder completed a similar evaluation task. Next, participants completed an unrelated questionnaire for about 10 minutes and were then asked if they wanted to purchase the pen in exchange for $2.00 (out of their compensation). Results The asymmetric dominance effect was marginally statistically significant, with 75% choosing the Pilot Pen when it was dominating as compared to 63% choosing it when it was not (z p 1.72, p ! .10). More important, compared to those who chose that pen from the two-option set, participants who used that pen after selecting it from the set in which it was dominating evaluated its overall quality as higher (M p 5.76, SD p .80 vs. M p 5.25, SD p 1.13; t(120) p 2.86, p ! .01) and were more satisfied with it (M p 5.63, SD p 1.00 vs. M p 5.14, SD p 1.44; t(120) p 2.23, p ! .05). The difference in terms of writing smoothness, though not statistically significant, was in the expected direction (M p 5.75, SD p .84 vs. M p 5.46, SD p 1.04; t(120) p 1.41, p p .16). The smaller effect on ratings of writing smoothness might be due to the relatively more concrete and objectively verifiable nature of this attribute as compared to the overall quality and satisfaction judgments. A similar pattern was observed with respect to the likelihood of purchasing the pen for $2.00. In the group that selected the asymmetrically dominating Pilot Pen, 24.2% of the respondents chose to exchange the pen for $2.00 as compared to 10.7% of those who had selected it from the two-option set (z p 2.03, p ! .05). These results demonstrate that choices of asymmetrically dominating options are associated with strong, far-reaching preferences, as reflected in the subsequent effect on (perceived) actual experience with the product as well as on the willingness to pay $2.00 for that product. GENERAL DISCUSSION Our view of preferences has evolved over the past decades, moving from the dominant economic assumption that people generally have well-established tastes and preferences captured by their indifference curves (Stigler and Becker 1977) to the current view of preferences that are often constructed on the fly for a particular decision. The growing consensus that preferences are constructed for a particular decision has relied primarily on various context and task effects (Bettman et al. 1998; Huber et al. 1982; Nowlis and Simonson 1997), such as the attraction and compromise effects. At the same time, there are many situations in which preferences and habits are well established and stable and, if anything, appear overly resistant to change and reconsideration. So, the relevant question is not whether consumer preferences are stable and fixed or merely constructed for a particular task but what factors moderate the strength of preferences and consumers’ understanding of the impact of context on their preferences. In the present research, we examined a key moderator of preference attribution and strength, namely, the characteristics of the problem and of the associated decision process. In particular, building on prior research (Dhar and Simonson 2003), we contrasted an asymmetric dominance set configuration with a compromise configuration, representing situations in which the decision process focuses on the selected choice option or the context, respectively. As we proposed, the results indicate that the decision processes triggered by these problems generate different choice processes and decision traces. Specifically, under the influence of the asymmetric dominance configuration, the decision process focuses on the chosen option that is perceived to be attractive regardless of the context. As a result, the preference is attributed to the selected option’s attractive absolute, contextindependent attribute values, and that option is better recognized subsequently. Furthermore, as a reflection of the (attractive) option-centered decision process, the resulting option preference is stronger—it is associated with higher confidence and stability. Conversely, when the role of the context is salient and transparent, the resulting option preference is weaker—it is associated with lower confidence, stability, and subsequent recognition. Thus, because of the context-based attribution and weaker preference trace, consumers are less likely to repeat making choices that were originally attributed to the context (e.g., “I’ll take the compromise option”) when considering that option again in a different context. Conversely, an option that was presumably selected for its inherent attractiveness and that is now associated with a stronger preference is likely to be selected again even if it is evaluated at a later time in a different context. In fact, as shown in study 5, an asymmetrically dominating option tends to be perceived as providing better performance even after the participant has had actual experience with that product (e.g., after writing with a pen). This is also reflected in a higher willingness to buy that product. This finding is consistent with the notion that higher perceived option attractiveness at the time the choice is made generates higher expectations, which consumers tend to confirm. Relatedly, enhanced preference fluency associated with the selection of an asymmetrically dominating option (Novemsky et al. 2007) might affect the subsequent perceived experience with that option. The present research was limited to a situation in which two choices were made 1 week apart, and it is likely that even the more stable preferences constructed under the in- SET CONFIGURATION AND PREFERENCE STRENGTH fluence of the asymmetric dominance effect will not endure for an extended period. However, to the extent that similar options are encountered periodically, a preference constructed on a particular occasion may generate strong change-resistant preferences. Indeed, repeated choices tend to be less vulnerable to contextual influence and to build more on past evaluation of the option (Cox and Grether 1996; Hoeffler and Ariely 1999; Wright 1975). Future research could examine other moderators of the strength and stability of constructed preferences. For example, Yoon and Simonson (forthcoming) find that individuals who express their preferences through a joint, as compared to a separate, evaluation mode (e.g., choice between options vs. separate ratings of each option), tend to perceive the task as easier and to hold their expressed preference with greater confidence. Also, individuals whose preferences were elicited by a joint, as opposed to a separate, response mode, were more consistent in choosing the same options again at a later time. The difference in preference stability was observed both when the response mode remained the same in both periods and when the response mode was changed in the second period. These findings are consistent with the notion that joint evaluations rely on more comparable and easy-to-justify dimensions (Hsee 1996; Nowlis and Simonson 1997). One of the benefits of gaining a better understanding of the moderators of the strength of constructed preferences is the enhancement of our ability to predict consumer choices based on measured preferences. Models of consumer choice have begun to incorporate context effects, relaxing the assumption of value maximization (Kivetz, Netzer, and Srinivasan 2004; Tversky and Simonson 1993). However, the validity of any measure or model designed to predict consumer choices depends on the stability of the preferences being measured. The current research suggests that the predictive validity of models that incorporate context effects is moderated by the type of effect influencing the measured preferences. Specifically, our findings suggest that accounting for asymmetric dominance effects in measures of consumer preferences may make a particularly pronounced contribution to their ability to predict accurately future choices. In addition, the current findings suggest that the effectiveness of attempts to influence consumer choices through context effects depends on the particular set configuration used. Prior research indicates that, under certain conditions, people can intuitively recognize the ability of using asymmetric dominance or compromise relations in the offered set to influence others’ choices (Hamilton 2003). However, as was shown in this research, although both asymmetric dominance and compromise effects might be equally influential in constructing momentary preferences, the former effect is likely to produce a more durable change in preferences and might even affect consumers’ subsequent product satisfaction. 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