Context Effects

Supervisors:

Dr. ir. M.C. Willemsen (1st supervisor)Dr. J.R.C. Ham (2nd supervisor)

The moderating role of consumers’ need for uniqueness on context-dependent choice:

‘The high-quality-focus’

2Industrial Engineering & Innovation Sciences

Theoretical frameworkIntroduction Hypothesis Research Results Conclusions/ discussion Literature

The moderating role of consumers’ need for uniqueness on context-dependent choice

Simonson and Nowlis (2000):The role of explanations and need for uniqueness in consumer decision making: Unconventional choices based on reasons

‘Need for uniqueness’ (NFU) Context dependent choice




Tian, Bearden and Hunter (2001):‘Consumer Need for Uniqueness’ (CNFU)

Ruvio, Shoham and Brenčič (2008):‘Consumer Need for Uniqueness Short-form’ (CNFU-S)

Snijder and Fromkin (1977):‘Need for Uniqueness’ (NFU)Examples CNFU-S Dutch version:

Als het gaat om producten die ik koop en de situaties waarin ik ze gebruik, dan heb ik ongewone gebruiken en regels.

Hoe gangbaarder een product of merk is onder de bevolking, des te minder geïnteresseerd ik ben in het kopen ervan.

Ik houd ervan om de heersende smaak van mensen die ik ken uit te dagen/ te prikkelen, door het kopen van dingen die zij niet zouden accepteren.




A

B

Attribute 1 (-Price)

Attr

ibut

e 2

(Qua

lity)

Indifference curve





Attr

ibut

e 2

(Qua

lity)

Extra vergine

Delicato




Classico‘Decoy’

Attraction effect




Attraction effect




16%

0%

84%

68%

32%

Attraction effect

A

B


Attr

ibut

e 2

(Qua

lity)




C1

C2

Compromise effect


Attr

ibut

e 2

(Qua

lity)

(€31,- /month)

(€23,- /month)




(€17,- /month)

Compromise effect




Compromise effect




Indifference curve




%100

CB, A;CA, B;

CA, B;AB;

AB;AB;B

PPPP

PPP

C

C

Based on Mourali, Böchenholt and Laroche (2007):




Interpretation from Simonson and Nowlis (2000) Oudenhooven and Willemsen (2009)

The ‘high-quality-focus’




H1: People with high CNFU prefer ‘quality’ to ‘price’, relative to people with low CNFU.

H2a: On average, people with high CNFU show a smaller compromise effect than people with low CNFU.

H2b: People with high CNFU show a smaller compromise effect after the addition of a high quality alternative (ABC1), than after the addition of a low quality alternative (ABC2).

H2c: According to the high-quality-focus, the relative difference in choice shares between the high and low quality options of a compromise set is larger for HCNFU than for LCNFU, in favour of the high quality alternative.

H3: For people with high CNFU the attraction effect is reduced when a decoy targets the low quality alternative.

H4: People with high CNFU, choosing the high quality option, pay less attention to attribute information than those choosing the low quality option, relative to people with low CNFU.




Choice options:

Product category: Attribute: A B C1 C2 D1 D2

TFT wide screen(product cat.1)

Price € 150,- € 183,- € 216,- € 117,- € 193,- € 160,-

Size (inch) 22,0 24,0 26,0 20,0 23,4 21,4

Mobile internet(product cat.2)

Price (per month) € 31,- € 37,- € 43,- € 25,- € 39,- € 33,-

Download speed (Mb/sec) 1,7 2,3 2,9 1,1 2,1 1,5

Projector(product cat.3)

Price € 950,- € 1070,- € 1190,- € 830,- € 1110,- € 990,-

Image quality (1-10) 7,0 8,0 9,0 6,0 7,7 6,7

Folding bike(product cat.4)

Price € 152,- € 200,- € 248,- € 104,- € 217,- € 169,-

Weight (kg) 12,0 9,0 6,0 15,0 10,1 13,1

Food processor(product cat.5)

Price € 210,- € 240,- € 270,- € 180,- € 250,- € 220,-

Quality (1-10) 7,0 8,0 9,0 6,0 7,7 6,7




Setup designed with MouselabWEB (Willemsen & Johnson, 2008)




low quality high quality

choice

Choice set AB

H1: People with high CNFU prefer ‘quality’ to ‘price’, relative to people with low CNFU.

χ2 (1)= 0,752, ns.

Ftime (1,136)= 1,017, ns. Ffrequency (1,136) = 3,485, p < 0,1tTFT-screen (143) = 3,22, p < 0,05




Choice set AB


choice

H2a: On average, people with high CNFU show a smaller compromise effect than people with low CNFU.

Choice set AB


choice

low quality target high quality

choice


choice

Choice set ABC2Choice set ABC1

Average ΔPLCNFU = 4,8Average ΔPHCNFU = -4,1




H2b: People with high CNFU show a smaller compromise effect after the addition of a high quality alternative (ABC1), than after the addition of a low quality alternative (ABC2).

Choice set AB


choice


choice


choice

Choice set ABC2Choice set ABC1

ΔPLCNFU = 4,7ΔPHCNFU = -8,9

ΔPLCNFU = 4,8ΔPHCNFU = 0,7




H2c: According to the high-quality-focus, the relative difference in choice shares between the high and low quality options of a compromise set is larger for HCNFU than for LCNFU, in favour of the high quality alternative.

Relative shares high quality alternative ABC1

LCNFU: 51,2 %HCNFU: 52,1%

Relative shares high quality alternative ABC2

LCNFU: 61,0 %HCNFU: 61,5%




H3: For people with high CNFU the attraction effect is reduced when a decoy targets the low quality alternative.

low quality target decoy

choice

decoy target high quality

choice

Choice set ABD1 Choice set ABD2

χ2 ABD1(1)= 0,341, ns. χ2

ABD2(1)= 0,890, ns.




Choice set ABC2Choice set ABC1 Choice set ABC2Choice set ABC1

Ffrequency (1,85)= 0,076, ns. Ffrequency (1,85) = 1,936, ns.Ftime (1,85)= 1,336, ns. Ftime (1,85) = 6,300, p < 0,05

H4: People with high CNFU, choosing the high quality option, pay less attention to attribute information than those choosing the low quality option, relative to people with low CNFU.




For people with high CNFU the context effects are reduced

The existence high-quality-focus is not confirmed

Absolute reference point for compromise sets (for people with HCNFU)

Applying CNFU for adaptive websites




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Documents

Context Effects