Special Session Summary Consumer Decision Making: Strategies For Minimizing Regret, Encouraging Decadence, and Maximizing Warm Glow

Citation:

Michal Strahilevitz (1995) ,"Special Session Summary Consumer Decision Making: Strategies For Minimizing Regret, Encouraging Decadence, and Maximizing Warm Glow", in E - European Advances in Consumer Research Volume 2, eds. Flemming Hansen, Provo, UT : Association for Consumer Research, Pages: 90.

European Advances in Consumer Research Volume 2, 1995      Page 90

SPECIAL SESSION SUMMARY

CONSUMER DECISION MAKING: STRATEGIES FOR MINIMIZING REGRET, ENCOURAGING DECADENCE, AND MAXIMIZING WARM GLOW

Michal Strahilevitz, University of Illinois

The purpose of this special session was to present recent work that examines the decision making process in the context of consumer choice. Each of the papers focuses on a unique aspect of consumer decision making.

The first paper by Klaus Wertenbroch and Ziv Carmon examines the phenomenon of consumer choice among desirable product alternatives (e.g., selecting one of two possible desserts such as cheese cake and chocolate mousse). The authors discuss the presence of a "The grass is greener effect" and show how particular characteristics in the choice environment can cause consumers to experience post-decision regret as a result of foregoing the other option. Possible marketing methods that could be used to minimize such post purchase conflicts are also discussed.

The second paper by Ravi Dhar explores how consumers go about deciding whether or not to purchase a variety of luxury goods. The paper focuses on identifying the factors in the choice environment that can encourage/discourage individuals to choose a luxury good over a more standard functional or less decadent product. In addition to discussing the theoretical implications of this research, Dhar also explores its implications for setting pricing and communication policies.

The final paper by Michal Strahilevitz focuses on some of the factors mediating the decision to allocate funds among charities. Strahilevitz shows how in giving to charity, the utility derived by donors includes both the good feelings associated with knowing that a worthy cause is being supported (analogous to acquisition utility) and the warm glow derived from being the one to make that donation (analogous to transaction utility). The author demonstrates how marketers can use various strategies to manipulate the expectations of potential donors regarding the intensity of both these components.

The discussant, Alice Isen, offers her own insights on the papers presented and suggests several directions for future research in the area.

----------------------------------------