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How to Make a 29% Increase Look Bigger: Numerosity Effects in Option Comparisons

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  • M. PANDELAERE
  • B. BRIERS

Abstract

Consumers prefer quantitative to qualitative information, yet the same quantitative information can appear as different numbers (e.g., 7-year warranty = 84-month warranty). The current paper demonstrates that consumers focus more on the number of units (7 versus 84) than on the type of units (year versus month), which implies a unit effect. The same attribute difference expressed as a higher number of units induces a perception of being larger (Study 1). When consumers receive the same information on different scales, the unit effect disappears (Study 2). Because differences in quality for the various options appear inflated due to the use of a scale with more units, consumers may switch away from a lower quality option when the quality ratings employ many units (Study 3). Finally, the unit effect implies that consumers are more sensitive to proportional differences and ratios of attribute levels when the attribute expression relies on many units rather than a few units (Study 4).

Suggested Citation

  • M. Pandelaere & B. Briers, 2011. "How to Make a 29% Increase Look Bigger: Numerosity Effects in Option Comparisons," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 11/712, Ghent University, Faculty of Economics and Business Administration.
  • Handle: RePEc:rug:rugwps:11/712
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    File URL: http://wps-feb.ugent.be/Papers/wp_11_712.pdf
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    14. Jonathan W. Leland & Mark Schneider & Jonathan Leland, 2016. "Axioms for Salience Perception," Working Papers 16-15, Chapman University, Economic Science Institute.
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    17. Michal Mijal, 2012. "Computer games in the organization - psychological determinants (Gry komputerowe w organizacji - uwarunkowania psychologiczne)," Problemy Zarzadzania, University of Warsaw, Faculty of Management, vol. 10(38), pages 262-270.
    18. Andrea H. Tangari & Scot Burton & Cassandra Davis, 2014. "Do They Have Your Number? Understanding the Moderating Role of Format Effects and Consumer Numeracy for Quantitative Front-of-Package Nutrition Claims," Journal of Consumer Affairs, Wiley Blackwell, vol. 48(3), pages 620-633, October.
    19. Cadario, Romain & Parguel, Béatrice & Benoit-Moreau, Florence, 2016. "Is bigger always better? The unit effect in carbon emissions information," International Journal of Research in Marketing, Elsevier, vol. 33(1), pages 204-207.
    20. Lembregts, Christophe & Pandelaere, Mario, 2014. ""A 20% income increase for everyone?": The effect of relative increases in income on perceived income inequality," Journal of Economic Psychology, Elsevier, vol. 43(C), pages 37-47.
    21. Jonathan W. Leland & Mark Schneider, 2016. "Salience, Framing, and Decisions under Risk, Uncertainty, and Time," Working Papers 16-08, Chapman University, Economic Science Institute.
    22. Huang, Wen-Hsien & Cheng, Yi-Ching, 2015. "Threshold free shipping policies for internet shoppers," Transportation Research Part A: Policy and Practice, Elsevier, vol. 82(C), pages 193-203.
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    24. Yao, Jun & Oppewal, Harmen, 2016. "Unit Pricing Increases Price Sensitivity Even When Products are of Identical Size," Journal of Retailing, Elsevier, vol. 92(1), pages 109-121.

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