Knowing Where They Stand: The Role of Inferred Distributions of Others in Misestimates of Relative Standing
AbstractPeople often estimate how they compare to other consumers when they make purchase decisions. Unfortunately, they tend to err in this task, and this can lead to negative consequences in their choices. Previous literature has largely argued that these errors in estimates of relative standing are due to underweighting or ignoring the reference group. Using a novel measure of people’s perception of the reference group, we show that consumers do attend to that information but err in their estimates of relative standing because they tend to overestimate the dispersion of others’ performances and attributes. Three studies support this argument and provide insights that enable marketers to alter consumers’ relative assessment process in formerly discounted ways. We demonstrate straightforward tools that can change consumers’ impressions of others and thus change relative assessments and purchase decisions.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by University of Chicago Press in its journal Journal of Consumer Research.
Volume (Year): 38 (2011)
Issue (Month): 3 ()
Pages: 407 - 419
Contact details of provider:
Web page: http://www.journals.uchicago.edu/JCR/
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Journals Division).
If references are entirely missing, you can add them using this form.