Is Extremeness Aversion Driven By Loss Aversion? Contrasting Reference Point Models of Durable Product Choice

Nico Neumann, University of New South Wales, Australia
Ashish Sinha, University of New South Wales, Australia
Ulf Böckenholt, Northwestern University, USA
We investigate how consumers form reference point(s) when choosing from durable products. We find that consumers use a single reference point that is adjusted to the stimuli and choice set presented. Moreover, we present empirical evidence that extremeness aversion depends on the assortment size and works independently of loss aversion.
[ to cite ]:
Nico Neumann, Ashish Sinha, and Ulf Böckenholt (2012) ,"Is Extremeness Aversion Driven By Loss Aversion? Contrasting Reference Point Models of Durable Product Choice", in NA - Advances in Consumer Research Volume 40, eds. Zeynep Gürhan-Canli, Cele Otnes, and Rui (Juliet) Zhu, Duluth, MN : Association for Consumer Research, Pages: 915-916.