Change in your wallet, change your choice: The effect of the change-matching heuristic on choice

Published on Jul 1, 2019in Journal of Retailing and Consumer Services
· DOI :10.1016/J.JRETCONSER.2019.03.008
Yin-Hui Cheng3
Estimated H-index: 3
(National Taichung University of Education),
Shih-Chieh Chuang2
Estimated H-index: 2
(CCU: National Chung Cheng University)
+ 1 AuthorsWan-Ting Lai1
Estimated H-index: 1
(CCU: National Chung Cheng University)
Source
Abstract
Abstract Having change in our wallet is quite common when we pay cash when shopping. This study examines the phenomenon whereby people choose to buy a product with a price that matches the amount of change they have in their wallets. The study uses a series of experiments to investigate whether this “change-matching heuristic” helps customers make purchase decisions. The findings confirm that the change-matching heuristic increases consumers’ processing fluency. The findings also confirm that the compromise and attraction conditions may dilute the influence of the change-matching heuristic.
📖 Papers frequently viewed together
12 Citations
1 Citations
References81
Newest
#1David A. Hensher (USYD: University of Sydney)H-Index: 106
#2Camila Balbontin (USYD: University of Sydney)H-Index: 8
Last. Andrew T. Collins (USYD: University of Sydney)H-Index: 12
view all 3 authors...
There is an increasing interest, in the discrete choice modelling literature, in alternative behavioural paradigms that represent ways in which individuals make choices when faced with a choice set of alternatives. We see an increasing number of studies using process heuristics such as attribute non-attendance, relative advantage maximisation, extremeness aversion and value learning. With some exceptions, the study of each heuristic has been undertaken in isolation from other candidate heuristic...
4 CitationsSource
#1Chao-Feng Lee (CCU: National Chung Cheng University)H-Index: 1
#2Shih-Chieh Chuang (CCU: National Chung Cheng University)H-Index: 4
Last. Kuo-Hao Lan (CCU: National Chung Cheng University)H-Index: 1
view all 4 authors...
Research in psychology finds strong context effects in consumer behavior and help consumer make up their mind from choice set when none of each option better than the others in all aspects. Context effect signifies that when evaluating a focal option, individuals take into consideration characteristics of other comparative alternatives rather than only the features of that focal alternative, complicating the decision-making process. The compromise effect and attraction effect (known together as ...
3 CitationsSource
#1Lucas Bremer (UHH: University of Hamburg)H-Index: 2
#2Mark Heitmann (UHH: University of Hamburg)H-Index: 16
Last. Thomas F. Schreiner (UHH: University of Hamburg)H-Index: 4
view all 3 authors...
Many consumer markets are becoming increasingly complex. In particular, as variety of products and product features proliferate, choosing is becoming a time consuming task for consumers. In response, consumers apply simplifying screening heuristics. However, established choice-based conjoint methods are challenged when consumers follow such decision rules. In particular, individual-level estimates of hierarchical Bayesian techniques (CBC-HB) cannot fully account for all possible heuristics appli...
5 CitationsSource
#1Hidehito Honda (UTokyo: University of Tokyo)H-Index: 5
#2Toshihiko Matsuka (Chiba University)H-Index: 10
Last. Kazuhiro Ueda (UTokyo: University of Tokyo)H-Index: 13
view all 3 authors...
Some researchers on binary choice inference have argued that people make inferences based on simple heuristics, such as recognition, fluency, or familiarity. Others have argued that people make inferences based on available knowledge. To examine the boundary between heuristic and knowledge usage, we examine binary choice inference processes in terms of attribute substitution in heuristic use (Kahneman & Frederick, 2005). In this framework, it is predicted that people will rely on heuristic or kn...
7 CitationsSource
#1Luke Greenacre (UniSA: University of South Australia)H-Index: 10
#2James Martin (UniSA: University of South Australia)H-Index: 2
Last. Victoria Jaeger (UniSA: University of South Australia)H-Index: 2
view all 4 authors...
Horizontal centrality bias has been found to influence what products consumers pay attention to and what products they choose to purchase. Such bias offers substantial competitive advantage to brands that know about it and display their products so as to capitalize on it. Atalay et al. (2012) identified the key components of this horizontal centrality effect: initial fixation bias, gaze cascade bias, and subsequent choice bias. In this paper, we re-examine their study under two new conditions: t...
4 CitationsSource
#1Pia Pinger (University of Bonn)H-Index: 10
#2Isabel Ruhmer-Krell (UMA: University of Mannheim)H-Index: 1
Last. Heiner Schumacher (Katholieke Universiteit Leuven)H-Index: 6
view all 3 authors...
The compromise effect refers to individuals' tendency to choose intermediate options. Its existence has been demonstrated in a large number of hypothetical choice experiments. This paper uses field data from a specialties restaurant to investigate the existence and strength of the compromise effect in a natural environment. Despite the presence of many factors that potentially weaken the compromise effect (e.g., a very large choice set, the opportunity to choose familiar options), we find eviden...
9 CitationsSource
2 CitationsSource
#1Cristina del Campo (Complutense University of Madrid)H-Index: 6
#2Sandra Pauser (University of Vienna)H-Index: 2
Last. Rudolf Vetschera (University of Vienna)H-Index: 21
view all 4 authors...
Simple heuristics can be efficient ways of decision making and literature has shown that they are widely used in actual decision situations. Although many types of heuristics have been found and analyzed, there is only scarce research on factors that lead to the use of a particular heuristic. In the present paper, we describe an experiment to analyze whether the usage of a particular heuristic like recognition or take-the-best depends on individual decision making styles as identified by Scott a...
19 CitationsSource
#1Keith S. Coulter (SPbU: Saint Petersburg State University)H-Index: 18
#2Anne L. Roggeveen (Babson College)H-Index: 26
This research investigates how the relationships among pieces of numerical information in a price promotional offer (i.e., regular price, sale price, absolute discount, and relative discount) affect deal processing fluency. Across four studies (including a field study involving purchase data collected from an online group-buying website), the authors show that when the numbers constitute an approximation sequence or are multiples of one another, deal processing fluency is increased, which influe...
28 CitationsSource
#1Shih Chieh Chuang (CCU: National Chung Cheng University)H-Index: 1
#2Yin Hui Cheng (National Taichung University of Education)H-Index: 1
Last. Yu Ting Chiang (CCU: National Chung Cheng University)H-Index: 1
view all 4 authors...
This research reports an investigation into whether the personality aspect of self-confidence affects the compromise effect. We hypothesize that highly self-confident people have greater certainty in making decisions and are more attracted to risk-taking, which makes them less likely to choose the safe or middle option in a large choice set. The three studies involved are conducted using between- and within-subjects experimental designs. Various product categories are used to generalize the find...
28 CitationsSource
Cited By2
Newest
Source
#1Ahmad Jamal (Cardiff University)H-Index: 23
#2Hatice Kizgin (Swansea University)H-Index: 10
Last. Yogesh K. Dwivedi (Swansea University)H-Index: 84
view all 5 authors...
Abstract This study examines the extent to which acculturation and enculturation orientations affect online political participation, political involvement and voting intentions among a sample of Turkish-Dutch immigrants. The study uses data from Turkish-Dutch participants. Structural Equations Modelling (SEM) is employed for assessing the relationships in the conceptualized model. The findings show that enculturation and acculturation influence online participation and involvement, which in turn...
8 CitationsSource