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Consumer decision making and variety of offerings: the effect of attribute alignability

Herrmann, Andreas, Heitmann, Mark, Morgan, Robert E., Henneberg, Stephan C. and Landwehr, Jan 2009. Consumer decision making and variety of offerings: the effect of attribute alignability. Psychology and Marketing 26 (4) , pp. 333-358. 10.1002/mar.20276

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Abstract

In recent years, many companies have considerably increased their number of offering varieties. The underlying rationale for such product strategies is substantiated by the belief that assortment proliferation would better satisfy customers' diverse preferences. However, empirical evidence exists suggesting that if there are too many varieties to choose from, customers sometimes either refrain from making a purchase at all, or else resort to simple selection heuristics. This article approaches the issue of assortment variety from a decision-theoretical perspective, by positing circumstances under which expanding the number of varieties will positively or negatively affect consumer behavior. Herein, the concept of attribute alignability provides explanatory potential. Two experimental studies are presented which analyze the effect of the number of product varieties on customers' decision-making behavior by means of manipulating the choice settings in a virtual car configurator. It can be shown that whether the product attributes in question are alignable or nonalignable is the decisive factor in explaining customer decision making under variety. Furthermore, “pseudo-alignability”is achieved easily via the relabeling of product options. These findings yield concrete managerial insights for the customer-oriented design of product lines consisting of a basic product and several varieties derived from it.

Item Type: Article
Date Type: Publication
Status: Published
Schools: Business (Including Economics)
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HG Finance
Publisher: Wiley-Blackwell
ISSN: 0742-6046
Last Modified: 04 Jun 2017 03:12
URI: http://orca.cf.ac.uk/id/eprint/17979

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