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Understanding the mechanism and determinants of compromise effects
Author(s) -
Sheng Shibin,
Parker Andrew M.,
Nakamoto Kent
Publication year - 2005
Publication title -
psychology and marketing
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.035
H-Index - 116
eISSN - 1520-6793
pISSN - 0742-6046
DOI - 10.1002/mar.20075
Subject(s) - compromise , psychology , mechanism (biology) , social psychology , cognitive psychology , epistemology , political science , philosophy , law
In this article, compromise effects are distinguished theoretically from attraction effects, which have received more research attention in the past. This article proposes and tests expected‐loss minimization under decision uncertainty as the underlying mechanism to explain compromise effects. Next, it examines the effects of a consumer's familiarity with the product and attribute‐importance structure on compromise effects. The empirical results demonstrate the negative influences of familiarity and asymmetry of attribute importance on compromise effects, as well as the mediating effect of attribute importance on the familiarity–compromise‐effect relationship. Further research directions are also discussed. © 2005 Wiley Periodicals, Inc.