WBS Mentoring Programme- 11 Feb 2011 - Relativity of choice - Professor Nick Chater
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WBS Mentoring Programme- 11 Feb 2011 - Relativity of choice - Professor Nick Chater

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WBS Mentoring Programme 2011- Professor Nick Chater- presentation on Relativity of choice about consumer behaviours

WBS Mentoring Programme 2011- Professor Nick Chater- presentation on Relativity of choice about consumer behaviours

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  • Department of Psychology, University of Warwick 03/01/11 Applied Cognitive Science, Lecture 1
  • Department of Psychology, University of Warwick 03/01/11 Applied Cognitive Science, Lecture 1
  • Department of Psychology, University of Warwick 03/01/11 Applied Cognitive Science, Lecture 1 Nte that the icnetive fro manufactuters is different

WBS Mentoring Programme- 11 Feb 2011 - Relativity of choice - Professor Nick Chater WBS Mentoring Programme- 11 Feb 2011 - Relativity of choice - Professor Nick Chater Presentation Transcript

  • RELATIVITY OF CHOICE Nick Chater Behavioural Science Group Warwick Business School
  • OVERVIEW
    • EVERYTHING IS RELATIVE
    • COMPARISON AND CONSUMPTION
  • EVERYTHING IS RELATIVE View slide
  • WHICH IS BRIGHTER, A OR B? View slide
  • WHICH IS BRIGHTER, A OR B?
  • WHICH IS BRIGHTER, A OR B?
  • A UNIFORM GREY STRIP?
  • A UNIFORM GREY STRIP?
  • A UNIFORM GREY STRIP?
  • A UNIFORM GREY STRIP?
  • WHICH ORANGE CIRCLE IS BIGGER?
  • WHICH ORANGE CIRCLE IS BIGGER?
  • COMPARISON AND CONSUMPTION
  • PAYING VERY DIFFERENT AMOUNTS FOR VERY SIMILAR THINGS... £2 per cup 5p per cup
  • EVERYTHING IS RELATIVE... How much would you pay for 1 h of sitting (more) comfortably? Or 4h 50m of sitting (more) comfortably?
  • EVERYTHING IS RELATIVE... 2 nd class: £164.10 Business: £325.10   Second: £108.30 First: £229.90 How much would you pay for 1 h of sitting (more) comfortably? Or 4h 50m of sitting (more) comfortably? London to Edinburgh, return In each case, double the basic price: comparison in action
  • SO RANGE OF OPTIONS IS CRUCIAL Sharpe, K. M., Staelin, R., & Huber, J. (2008). Using extremeness aversion to fight obesity: Policy implications of context dependent demand. Journal of Consumer Research, 35, 406-422.
  • Choice of Drink Affected by Options
  • Some results: “ low” range “ high” range 15% more consumption!
  • IF ALL WE HAVE IS COMPARISON...
    • Perhaps the most powerful source of comparison is other people
    • E.g., how we perceive our own weight
    Wood and Brown (in preparation)
  • WE EVALUATE OURSELVES BY COMPARISON WITH OTHERS
    • People estimate their own weight, BMI etc
    • What predicts their estimates?
    • Not actual BMI
    • But rank BMI measured against friends
  • EVALUATION BY LOCAL COMPARISON
    • Judgements of own alcohol consumption (weight, income) made by:
      • (a) Construct mental sample (mostly friends, colleagues)
      • (b) Count who weighs, drinks earn less than me?
      • (c) Count who weighs, drinks earn more than me?
      • (d) Compare the two numbers
    • This is the “Decision-by-Sampling” model
    • (Stewart, Chater, & Brown, Cognitive Psychology, 2006)
  • IMPLICATION: THE SAMPLE IS CRUCIAL
  • IMPLICATION: THE SAMPLE IS CRUCIAL
  • SUMMARY
    • EVERYTHING IS RELATIVE
      • From perception onwards
    • COMPARISON AND CONSUMPTION
      • Eliciting the right comparison set is crucial
        • Other products
        • Own past experiences
        • Other people
      • And this is a crucial objective of marketing, advertising, and behaviour change