Processing Graphical Information: Perceptual Illusions of Risk and Return

This paper examines how consumers process graphical information. Aspects examined include: digital versus graphical information (Studies 1 and 2); X-axis choices (Studies 3, 5, and 6), presence of reference indices (Studies 4, 5 and 6), and the salience of local maxima and minima (Studies 7-9). Results converge to a theory that consumers process visual graphical information by sampling salient data points to assess the trend and noise of a price series which biases estimates of risk and return. Theoretical implications for the processing of visual information, and practical implications for the communication of financial products and consumer welfare are discussed.


Priya Raghubir and Sanjiv Das (2008) ,"Processing Graphical Information: Perceptual Illusions of Risk and Return", in NA - Advances in Consumer Research Volume 35, eds. Angela Y. Lee and Dilip Soman, Duluth, MN : Association for Consumer Research, Pages: 198-200.


Priya Raghubir, University of California, Berkeley
Sanjiv Das, University of Santa Clara


NA - Advances in Consumer Research Volume 35 | 2008

Share Proceeding

Featured papers

See More


On Politics, Morality, and Consumer Response to Negative Publicity

Chethana Achar, University of Washington, USA
Nidhi Agrawal, University of Washington, USA

Read More


In Pursuit of Imperfection: How Flawed Products Can Reveal Valuable Process Information

Erin P Carter, University of Maine
Peter McGraw, University of Colorado, USA

Read More


The Role of Expectations About Changes in Wealth in Discounting Decisions

Abigail Sussman, University of Chicago, USA
Oleg Urminsky, University of Chicago, USA
Shweta Desiraju, University of Chicago, USA

Read More

Engage with Us

Becoming an Association for Consumer Research member is simple. Membership in ACR is relatively inexpensive, but brings significant benefits to its members.