Distinguishing Two Forms of Consumer Uncertainty

Gülden Ülkümen, University of Southern California, USA
David Tannenbaum , University of California Los Angeles, USA
Craig Fox , University of California Los Angeles, USA
We show that consumers reliably distinguish epistemic (knowledge-based) uncertainty from aleatory (stochastic) uncertainty in their rating of events. These ratings predict evaluations of credit/blame and luckiness/unluckiness for good/bad outcomes and mediate hindsight bias. Moreover, consumers tend to make higher budget estimates concerning epistemic uncertainty, especially when they feel more knowledgeable.
[ to cite ]:
Gülden Ülkümen, David Tannenbaum , and Craig Fox (2013) ,"Distinguishing Two Forms of Consumer Uncertainty", in NA - Advances in Consumer Research Volume 41, eds. Simona Botti and Aparna Labroo, Duluth, MN : Association for Consumer Research.