Abstract
In order to lower the cognitive burden of decision making, consumers may apply attribute cut-off values to simplify decision strategies. Products with attributes that do not pass the cut-off values are either not being considered by the individual or are greatly discounted. This study provides new evidence on consumers’ heterogeneous use of attribute cut-offs with a unique focus on the relationship with consumer involvement, a key component in consumer choice theory. Behavioral data from an online choice experiment on beef steak employing shelf simulations are combined with questions defining respondents’ attribute cut-off values and their validated Personal Involvement Inventory (PII). Evidence from the analysis indicates that consumers who are highly involved are more likely to exhibit attribute cut-off values and are less likely to violate their cut-off values. Further investigation using a latent class model identifies several key consumer segments (e.g., a price sensitive group) based on their choice behavior and reveals that the relationship between involvement, cut-off use and cut-off violations is not uniform across consumer segments.
Original language | English (US) |
---|---|
Pages (from-to) | 58-66 |
Number of pages | 9 |
Journal | Journal of Behavioral and Experimental Economics |
Volume | 65 |
DOIs | |
State | Published - Dec 1 2016 |
Keywords
- Beef
- Choice experiment
- Consumer segmentation
- Cut-off value violation
- Decision strategy
- Latent class analysis
ASJC Scopus subject areas
- Applied Psychology
- Economics and Econometrics
- General Social Sciences