The Impact of Other’S Opinions on Decision-Making: Role of Extreme Prediction Rate

Ashesh Mukherjee, McGill University
Andrew Gershoft, Columbia University
ABSTRACT - Past research indicates that individuals often use the overall prediction rate, or the overall match percentage between past opinions of the source and target consumer, to assess the usefulness of the source’s future opinions. In this paper, we identify extreme prediction rate, or the match between the source and target on extremely evaluated items only, as an important additional factor in the acceptance of external source opinions. Specifically, we show that extreme prediction rate has a significant effect on source opinion acceptance when individuals have a consummatory motive, and when opinion information is presented in a low complexity format. In conclusion, the paper discusses marketing implications of these findings especially for Internet retailers such as Amazon.com, and also identifies promising avenues for future research.
[ to cite ]:
Ashesh Mukherjee and Andrew Gershoft (2001) ,"The Impact of Other’S Opinions on Decision-Making: Role of Extreme Prediction Rate", in NA - Advances in Consumer Research Volume 28, eds. Mary C. Gilly and Joan Meyers-Levy, Valdosta, GA : Association for Consumer Research, Pages: 250.

Advances in Consumer Research Volume 28, 2001     Page 250

THE IMPACT OF OTHER’S OPINIONS ON DECISION-MAKING: ROLE OF EXTREME PREDICTION RATE

Ashesh Mukherjee, McGill University

Andrew Gershoft, Columbia University

ABSTRACT -

Past research indicates that individuals often use the overall prediction rate, or the overall match percentage between past opinions of the source and target consumer, to assess the usefulness of the source’s future opinions. In this paper, we identify extreme prediction rate, or the match between the source and target on extremely evaluated items only, as an important additional factor in the acceptance of external source opinions. Specifically, we show that extreme prediction rate has a significant effect on source opinion acceptance when individuals have a consummatory motive, and when opinion information is presented in a low complexity format. In conclusion, the paper discusses marketing implications of these findings especially for Internet retailers such as Amazon.com, and also identifies promising avenues for future research.

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