How Context Affects Choice

Abstract

Due to its origins in the literature on judgment and decision-making, context effects in marketing are construed exclusively in terms of how choices deviate from utility maximization principles as a function of how choices are presented (e.g., framing, sequence, composition). This limits our understanding of a range of other relevant context effects on choice. This paper broadens the scope of context effects to include social (e.g., with friends or family) and situational factors (e.g., location (home/store), time, weather).We define contexts as any factor that has the potential to shift the choice outcomes by altering the process by which the decision is made. We use this lens to integrate the psychology literature on habitual choice, System I and II decision-making, and a recent stream of empirical work that involves social and situational effects into the scope of context effects. We distinguish between exogenous and endogenous context effects, based on whether the decision-maker chooses the context. We then discuss issues of empirically identifying context effects when using either experimentally generated data or naturally occurring secondary data. We conclude with a discussion of trends and opportunities for new research on context effects.

Moving the Customer Experience Field Forward: Introducing the Touchpoints, Context, Qualities (TCQ) Nomenclature

“…Further, while qualitative research pointed at contextual influences (see Table 5), these influences are not well-understood. New technologies are opening many possibilities for data fusion from various offline and online sources (Thomadsen et al 2018). Mobile and smart technologies enable the capture and collection of contextual data through myriad sensors and trackers, which enables firms to gain insight into the individual, social, environmental, and market context in a reliable and objective manner (Verhulst et al 2019).…”

“…Hence, significant opportunities remain to consider how the large set of contextual factors impact CX. These opportunities will continue to expand as big data and new technologies are enabling brands/firms to have more information than ever before about the context in which the customer journey is embedded at each of the four levels (Thomadsen et al 2018). While practitioner-oriented work increasingly recognizes that brands/firms may profit from contextual insights (e.g., Siggelkow and Terwiesch 2019), much still remains unknown on how and in what way contextual information may transform business practices.…”

Crowdsourcing sensitive data using public displays—opportunities, challenges, and considerations

“…Depending on the context in which one finds himself, (be it situational, environmental, social, etc. ), one's decision may differ [53]. Most participants agreed with this line of thought, providing examples of situations or moods that may affect their willingness to donate data.…”

Untangling perceptions around indicators for biodiversity conservation and ecosystem services

“…But more research is necessary in this regard, since one would expect invasive species to have a negative effect on wellbeing. We asked respondents to make their choices within a context of six biodiversity attributes; context can alter the process by which choices are made and hence shift the choice outcomes (Thomadsen et al, 2018). In our case study, dealing with the complex concept of biodiversity, the configuration of the biodiversity indicators could be interpreted as the key elements of the choice context.…”