Learning From Mixed Feedback: the Biased Processing of Store Price Comparisons

ABSTRACT - People learn about the quality of their decisions by comparing their obtained outcomes to alternative outcomes. Often, feedback is mixed: the chosen option performs better than one alternative but worse than another. We examine how people’s reaction to mixed price comparisons is influenced by their motivation to learn from these comparisons. Our results indicate that people who are motivated to evaluate their choices selectively search for opportunities to improve, leading them to overemphasize unfavorable comparisons and underestimate the value of their current selection.

Citation:

Tom Meyvis and Alan Cooke (2003) ,"Learning From Mixed Feedback: the Biased Processing of Store Price Comparisons", in E - European Advances in Consumer Research Volume 6, eds. Darach Turley and Stephen Brown, Provo, UT : Association for Consumer Research, Pages: 375.

European Advances in Consumer Research Volume 6, 2003      Page 375

LEARNING FROM MIXED FEEDBACK: THE BIASED PROCESSING OF STORE PRICE COMPARISONS

Tom Meyvis, New York University, USA

Alan Cooke, University of Florida, USA

ABSTRACT -

People learn about the quality of their decisions by comparing their obtained outcomes to alternative outcomes. Often, feedback is mixed: the chosen option performs better than one alternative but worse than another. We examine how people’s reaction to mixed price comparisons is influenced by their motivation to learn from these comparisons. Our results indicate that people who are motivated to evaluate their choices selectively search for opportunities to improve, leading them to overemphasize unfavorable comparisons and underestimate the value of their current selection.

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