Decoy Effects and Brands

Jungkeun Kim, University of Minnesota
Jongwon Park, Korea University
Gangseog Ryu, Korea University

Title: Decoy Effects and Brands

Jungkeun Kim, University of Minnesota

Jongwon Park, Korea University

Gangseog Ryu, Korea University

 

The relative preference for a target product over a competitor can be increased by providing a third alternative (a decoy) that is clearly inferior to the target but is not necessarily inferior to the competitor. We investigated how these “decoy” effects are influenced by the presence or absence of brand name information and the level of consumer brand knowledge. Results indicated that overall, inclusion of a decoy in the choice set significantly increased the relative preference for the target. However, identifying alternatives with real brand names eliminated this effect when participants possessed an extensive amount of knowledge about the brands, but it did not when participants had a relatively limited amount of knowledge. These results were generally consistent with implications of the category-based processing view about brand name information.
[ to cite ]:
Jungkeun Kim, Jongwon Park, and Gangseog Ryu (2006) ,"Decoy Effects and Brands", in NA - Advances in Consumer Research Volume 33, eds. Connie Pechmann and Linda Price, Duluth, MN : Association for Consumer Research, Pages: 683-687.