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Kilo what? Default units increase value sensitivity in joint evaluations of energy efficiency

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  • Herberz, Mario
  • Brosch, Tobias
  • Hahnel, Ulf J. J.

Abstract

The unit in which numerical information is presented can have a strong influence on how decision makers evaluate and choose between available choice options. The present work examines the influence of frequently used default units on judgments and decisions of energy efficiency. Across three experiments (Ntotal = 497), our results provide evidence that value sensitivity increases by about 25% in joint evaluation mode when a product attribute is presented in the default unit versus a non-default unit. As a result, presenting an attribute in the default unit led to more favorable evaluations of superior products and less favorable evaluations of inferior products. This result was robust to changes in the numerical magnitude of the non-default unit. Moreover, when joint evaluation was performed across different units, products described using the default unit were evaluated more favorably than products described using a non-default unit. More favorable evaluations based on the default unit translated into a higher willingness to pay for efficiency advantages. We discuss the theoretical and practical implications of default units to guide informed consumer judgments and effective energy efficiency labeling.

Suggested Citation

  • Herberz, Mario & Brosch, Tobias & Hahnel, Ulf J. J., 2020. "Kilo what? Default units increase value sensitivity in joint evaluations of energy efficiency," Judgment and Decision Making, Cambridge University Press, vol. 15(6), pages 972-988, November.
  • Handle: RePEc:cup:judgdm:v:15:y:2020:i:6:p:972-988_7
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