Are Advice Takers Bayesian? Preference Similarity Effects on Advice Seeking and Taking

Hang Shen, University of California Riverside, USA
Ye Li, University of California Riverside, USA
Consumers increasingly depend on online reviews to inform purchase decisions. We show that they make two systematic errors that are in offsetting directions in utilizing advice to make a “probabilistic affective forecasting”. People underestimate the degree of “preference matching” with reviewers, whereas overweigh their advice compared to a Bayesian criterion.
[ to cite ]:
Hang Shen and Ye Li (2015) ,"Are Advice Takers Bayesian? Preference Similarity Effects on Advice Seeking and Taking", in NA - Advances in Consumer Research Volume 43, eds. Kristin Diehl and Carolyn Yoon, Duluth, MN : Association for Consumer Research, Pages: 122-126.