When consumers do not compromise - An Eye Tracking Study!

Banerjee Pronobesh (pbanerjee@iimk.ac.in) and Masters Tamara (tamara.masters@byu.edu)
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Banerjee Pronobesh: Indian Institute of Management Kozhikode
Masters Tamara: Brigham Young University

No 446, Working papers from Indian Institute of Management Kozhikode

Abstract: Compromise effect, or when one chooses the middle alternative, which has moderate values on both the attributes, is one of the most robust findings in the domain of context effect. In this paper, we show that when attributes are rated such that one of the attributes has high values, lying towards the higher end of a scale, while the other attribute has low values, lying towards the lower end of a scale, consumers will prefer an extreme alternative. We use an eye-tracking study to show the underlying process why this will happen.

Pages: 15 pages
Date: 2021-03
New Economics Papers: this item is included in nep-cwa
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