RELATIVITY OF CHOICE Nick Chater Behavioural Science Group Warwick Business School
OVERVIEW <ul><li>EVERYTHING IS RELATIVE </li></ul><ul><li>COMPARISON AND CONSUMPTION </li></ul>
EVERYTHING IS RELATIVE
WHICH IS BRIGHTER, A OR B?
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) comfo...
EVERYTHING IS RELATIVE... 2 nd  class: £164.10 Business: £325.10    Second: £108.30 First: £229.90 How much would you pay ...
SO RANGE OF OPTIONS IS CRUCIAL Sharpe, K. M., Staelin, R., & Huber, J. (2008). Using extremeness aversion to fight obesity...
Choice of Drink Affected by Options
Some results: “ low” range “ high” range 15% more consumption!
IF ALL WE HAVE IS COMPARISON... <ul><li>Perhaps the most powerful source of comparison is  other people </li></ul><ul><li>...
WE EVALUATE OURSELVES BY COMPARISON WITH OTHERS <ul><li>People estimate their own weight, BMI etc </li></ul><ul><li>What p...
EVALUATION BY  LOCAL  COMPARISON <ul><li>Judgements of own alcohol consumption (weight, income) made by: </li></ul><ul><ul...
IMPLICATION: THE SAMPLE IS CRUCIAL
IMPLICATION: THE SAMPLE IS CRUCIAL
SUMMARY <ul><li>EVERYTHING IS RELATIVE </li></ul><ul><ul><li>From perception onwards </li></ul></ul><ul><li>COMPARISON AND...
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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

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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

    1. 1. RELATIVITY OF CHOICE Nick Chater Behavioural Science Group Warwick Business School
    2. 2. OVERVIEW <ul><li>EVERYTHING IS RELATIVE </li></ul><ul><li>COMPARISON AND CONSUMPTION </li></ul>
    3. 3. EVERYTHING IS RELATIVE
    4. 4. WHICH IS BRIGHTER, A OR B?
    5. 5. WHICH IS BRIGHTER, A OR B?
    6. 6. WHICH IS BRIGHTER, A OR B?
    7. 7. A UNIFORM GREY STRIP?
    8. 8. A UNIFORM GREY STRIP?
    9. 9. A UNIFORM GREY STRIP?
    10. 10. A UNIFORM GREY STRIP?
    11. 11. WHICH ORANGE CIRCLE IS BIGGER?
    12. 12. WHICH ORANGE CIRCLE IS BIGGER?
    13. 13. COMPARISON AND CONSUMPTION
    14. 14. PAYING VERY DIFFERENT AMOUNTS FOR VERY SIMILAR THINGS... £2 per cup 5p per cup
    15. 15. EVERYTHING IS RELATIVE... How much would you pay for 1 h of sitting (more) comfortably? Or 4h 50m of sitting (more) comfortably?
    16. 16. 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
    17. 17. 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.
    18. 18. Choice of Drink Affected by Options
    19. 19. Some results: “ low” range “ high” range 15% more consumption!
    20. 20. IF ALL WE HAVE IS COMPARISON... <ul><li>Perhaps the most powerful source of comparison is other people </li></ul><ul><li>E.g., how we perceive our own weight </li></ul>Wood and Brown (in preparation)
    21. 21. WE EVALUATE OURSELVES BY COMPARISON WITH OTHERS <ul><li>People estimate their own weight, BMI etc </li></ul><ul><li>What predicts their estimates? </li></ul><ul><li>Not actual BMI </li></ul><ul><li>But rank BMI measured against friends </li></ul>
    22. 22. EVALUATION BY LOCAL COMPARISON <ul><li>Judgements of own alcohol consumption (weight, income) made by: </li></ul><ul><ul><li>(a) Construct mental sample (mostly friends, colleagues) </li></ul></ul><ul><ul><li>(b) Count who weighs, drinks earn less than me? </li></ul></ul><ul><ul><li>(c) Count who weighs, drinks earn more than me? </li></ul></ul><ul><ul><li>(d) Compare the two numbers </li></ul></ul><ul><li>This is the “Decision-by-Sampling” model </li></ul><ul><li>(Stewart, Chater, & Brown, Cognitive Psychology, 2006) </li></ul>
    23. 23. IMPLICATION: THE SAMPLE IS CRUCIAL
    24. 24. IMPLICATION: THE SAMPLE IS CRUCIAL
    25. 25. SUMMARY <ul><li>EVERYTHING IS RELATIVE </li></ul><ul><ul><li>From perception onwards </li></ul></ul><ul><li>COMPARISON AND CONSUMPTION </li></ul><ul><ul><li>Eliciting the right comparison set is crucial </li></ul></ul><ul><ul><ul><li>Other products </li></ul></ul></ul><ul><ul><ul><li>Own past experiences </li></ul></ul></ul><ul><ul><ul><li>Other people </li></ul></ul></ul><ul><ul><li>And this is a crucial objective of marketing, advertising, and behaviour change </li></ul></ul>

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