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The influence of suggestions of reference groups in the compromise effect

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  • Chuang, Shih-Chieh
  • Cheng, Yin-Hui
  • Hsu, Chun-Ting
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    Abstract

    Context effect researchers who have examined the mechanism underlying the compromise effect suggest that justification is a critical factor leading people to select the compromise option, thus implying the importance of interpersonal influence on consumer choice. However, little research has empirically investigated the link between the compromise effect and interpersonal influence. This study addresses that gap in the literature by analyzing whether reference group suggestions determine the strength of the compromise effect. Three experiments test the associated hypotheses. The results show that suggestions made by reference group members have a significant influence on the magnitude of the compromise effect.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0167487011001681
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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Economic Psychology.

    Volume (Year): 33 (2012)
    Issue (Month): 3 ()
    Pages: 554-565

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    Handle: RePEc:eee:joepsy:v:33:y:2012:i:3:p:554-565

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    Web page: http://www.elsevier.com/locate/joep

    Related research

    Keywords: Reference group; Compromise effect; Context effect;

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    1. Aimee Drolet & Mary Frances Luce & Itamar Simonson, 2009. "When Does Choice Reveal Preference? Moderators of Heuristic versus Goal-Based Choice," Journal of Consumer Research, University of Chicago Press, vol. 36(1), pages 137-147, 06.
    2. Xinshu Zhao & John G. Lynch & Qimei Chen, 2010. "Reconsidering Baron and Kenny: Myths and Truths about Mediation Analysis," Journal of Consumer Research, University of Chicago Press, vol. 37(2), pages 197-206, 08.
    3. Bettman, James R & Luce, Mary Frances & Payne, John W, 1998. " Constructive Consumer Choice Processes," Journal of Consumer Research, University of Chicago Press, vol. 25(3), pages 187-217, December.
    4. Burnkrant, Robert E & Cousineau, Alain, 1975. " Informational and Normative Social Influence in Buyer Behavior," Journal of Consumer Research, University of Chicago Press, vol. 2(3), pages 206-15, December.
    5. Shih-Chieh Chuang & HsiuJu Yen, 2007. "The impact of a product’s country-of-origin on compromise and attraction effects," Marketing Letters, Springer, vol. 18(4), pages 279-291, December.
    6. Park, C Whan & Lessig, V Parker, 1977. " Students and Housewives: Differences in Susceptibility to Reference Group Influence," Journal of Consumer Research, University of Chicago Press, vol. 4(2), pages 102-10, Se.
    7. Simonson, Itamar, 1989. " Choice Based on Reasons: The Case of Attraction and Compromise Effects," Journal of Consumer Research, University of Chicago Press, vol. 16(2), pages 158-74, September.
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