IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

The Effect of Local Consideration Sets on Global Choice Between Lower Price and Higher Quality

  • Itamar Simonson

    (Stanford University)

  • Stephen Nowlis

    (University of California at Berkeley)

  • Katherine Lemon

    (University of California at Berkeley)

Registered author(s):

    A set of alternatives under consideration is often divided into subsets (or local sets) by some external (e.g., product display format at the store) or internal (e.g., a decision rule) factor. We propose that the manner in which a global set of alternatives varying in price and quality is divided into local sets can have a systematic effect on consumer choice between a lower price alternative and a higher quality alternative. Three such effects are investigated: (1) Consumers who first choose from pairs of products ({A, B}, {B, C}, {A, C}) and then choose from the set of all three products ({A, B, C}) are more likely to prefer the cheapest alternative than consumers who only choose from the complete set; (2) The choice share of a low-price, low-quality brand is greater when alternatives varying in price, quality, and features are displayed by brand (i.e., each display presents different models of one brand) as compared to a display by feature level (i.e., each display presents comparable models of different brands); and (3) Consumers considering a pair of two-option local sets, each consisting of different brands and feature levels (e.g., a feature enhanced model of a low quality brand vs. a basic model of a high quality brand), are more likely to select a feature enhanced model from the global set (of four options) than those who consider the same alternatives in other local set configurations or consider only the global set. These predictions were supported in seven studies, which also provided insights into the boundaries of the effects (focusing on the paired-comparison effect). We discuss the theoretical and practical implications of the findings.

    If 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.

    File URL: http://dx.doi.org/10.1287/mksc.12.4.357
    Download Restriction: no

    Article provided by INFORMS in its journal Marketing Science.

    Volume (Year): 12 (1993)
    Issue (Month): 4 ()
    Pages: 357-377

    as
    in new window

    Handle: RePEc:inm:ormksc:v:12:y:1993:i:4:p:357-377
    Contact details of provider: Postal: 7240 Parkway Drive, Suite 300, Hanover, MD 21076 USA
    Phone: +1-443-757-3500
    Fax: 443-757-3515
    Web page: http://www.informs.org/
    Email:


    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:inm:ormksc:v:12:y:1993:i:4:p:357-377. See general 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: (Mirko Janc)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.