Are Consumers Intuitively Bayesian? the Role of Consumer Metacognition

Using a consumer metacognition theoretical framework, we find support for our hypotheses that consumers update their beliefs consistent with Bayes’ theorem for difficult-to-compute numerical data with judgments being conservative than Bayesian predictions in the case of relatively easy-to-compute numerical data. These differential effects arise because consumers use a hypothesis-testing algorithm to process difficult-to-compute numerical data, while in the case of easy-to-compute numerical data, an averaging algorithm is employed. Moreover, these effects are moderated by data distinctiveness.



Citation:

Dipayan Biswas, Guangzhi Zhao, Donald Lehmann, and Dhruv Grewal (2009) ,"Are Consumers Intuitively Bayesian? the Role of Consumer Metacognition", in NA - Advances in Consumer Research Volume 36, eds. Ann L. McGill and Sharon Shavitt, Duluth, MN : Association for Consumer Research, Pages: 691-692.

Authors

Dipayan Biswas, Bentley College, USA
Guangzhi Zhao, University of Kansas, USA
Donald Lehmann, Columbia University, USA
Dhruv Grewal, Babson College, USA



Volume

NA - Advances in Consumer Research Volume 36 | 2009



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