Multiple Reference Points in Sequential Hedonic Evaluation: An Empirical Analysis

Abstract

Marketers frequently offer a variety of communications, brands, and service encounters that customers evaluate sequentially. When customers make these evaluations, their previous experiences in the sequence influence their current evaluation. The authors propose that these prior experiences serve as multiple reference points against which the target stimulus is judged, creating rival co-occurring comparison effects. Using real-world and experimental data, they find that assimilation and contrast effects occur simultaneously: there is assimilation to the first score within a sequence and contrast with the immediate predecessor as well as with extremes experienced earlier in the sequence. The authors document the moderating effects of extreme first stimuli, domain similarity, and individual factors of mood and expertise. They provide different recommendations for sequence construction on the basis of whether the marketer's goal is fairness, accuracy, or influencing choice. This research is unique in (1) showing how several preceding evaluations can each have an impact on a subsequent evaluation at the same time and (2) using real-world data to do so.

Customer experience management: toward implementing an evolving marketing concept

“…This mindset captures the sequential character of CE perceptions, with experiential responses evolving over time (see Ghoshal et al 2014;Verhoef et al 2009)-the verb form of the term experience. As the consulted marketing director of a home appliance manufacturer and retailer (ID 6) asserted:…”

“…A main advantage of a touchpoint journey orientation is the ability to manage all touchpoints in the marketplace together and, thus, to more easily address important moments of truth along that journey (Ghoshal et al 2014). The direction to extend core touchpoints along a brand theme that promises customers to realize a certain lifestyle or activity with the help of multiple touchpoints…”

Reference points in consumer choice models: A review and future research agenda

“…They may use different reference points on different occasions or may use multiple reference points at the same time in a certain context (Kenney, 2016; Kumar et al., 1998; Mayhew &Winer, 1992; Terzi et al., 2016). For instance, decision makers may resort to multiple reference points due to the complexity of the decision‐making process (Ghoshal et al., 2014; Ordó Ez et al., 2000). By using latent class model, Moon et al.…”

Seller reputation and buyer feedback.

“…We employ empirical data from China's largest online market-Taobao.com, with nearly 4 See De Bondt & Thaler (1985, 1986, Puto (1987), Klein & Oglethorpe (1987), Lant (1992), La Porta (1996), Ghoshal, Yorkston, Nunes, and Boatwright (2014). 5 In markets with many sellers, such as Taobao, market competitiveness is strongly influenced by potential entrants, and barriers to entry can lead to noncompetitive pricing and excess firm profits.…”

“…4See De Bondt & Thaler (1985, 1986), Puto (1987), Klein & Oglethorpe (1987), Lant (1992), La Porta (1996), Ghoshal, Yorkston, Nunes, and Boatwright (2014).…”