The impact of range extension on the attraction effect

Pravesh Kumar Padamwar, Jagrook Dawra and Vinay Kumar Kalakbandi

Journal of Business Research, 2021, vol. 126, issue C, 565-577

Abstract: Using a series of three corroborative studies, this paper reconciles the conflicting results on the relationship between range extension and the attraction effect in extant literature. Prior seminal works on the attraction effect, including those of Huber, Puto, and Payne, have not found any impact of range extension on the intensity of the attraction effect. Some explanatory models of the attraction effect in the extant literature (e.g. the value-shift model), however, predict an amplification of the attraction effect upon range extension. In this work, we resolve this conflict by showing that range extension does significantly change the preference between core alternatives and that it systematically amplifies the attraction effect both in stylized and natural settings. In doing so, this paper furthers the conceptual understanding of the attraction effect. It also contributes to the growing literature exploring the boundary conditions of the attraction effect and provides relevant managerial insights.

Keywords: Preference construction; Attraction effect; Asymmetric dominance; Decoy effect; Choice behavior (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:126:y:2021:i:c:p:565-577

DOI: 10.1016/j.jbusres.2019.12.017

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