Stimulus Context and the Formation of Consumer Ideals

Abstract

When a choice set consists of a distribution of alternatives with correlated benefits and costs, consumers often exhibit single-peaked preferences-they prefer an alternative having moderate costs and benefits. Theories disagree about how adding additional lower benefit/lower cost or higher benefit/higher cost alternatives to this choice set will affect relative preferences for the initial set of alternatives. Prototype theory predicts that adding alternatives should produce assimilation, whereas multiattribute range-frequency theory predicts that it creates contrast. We reconcile these two theories by assuming that single-peaked preferences reflect a composition of underlying benefit and cost valuations. Moreover, we claim that the correlational structure of the benefit and cost dimensions in the contextual stimuli determines whether these stimuli will exert an assimilation or contrast effect. We show that when benefits and costs are correlated (uncorrelated), adding alternatives that extend the range of offerings produces assimilation (contrast) for preference judgments. We propose a cost-benefit trade-off model that incorporates elements of single-peaked preference theory and range-frequency theory to explain the complex fashion in which contextual stimuli affect consumer ideals.

Learning Group Differences: Implications for Contrast and Assimilation in Stereotyping

“…Contrast of ideals may be described as occurring when the ideal point is displaced away from contextual values. Contrast of ideal-point judgments has been noted rarely in the literature (for exceptions see Cooke, Janiszewski, Cunha, Nasco, & de Wilde, 2004). Wedell et al (2005) explored socially relevant ideal-point judgments of preference for body images in a series of experiments in which participants judged the pleasantness of human figures varying in body width.…”

Financial prospect relativity: context effects in financial decision‐making under risk

“…One is given in a recent paper by Cooke, Janiszewski, Cunha, Nasco, and De Wilde (2004). These authors show one way to combine range-frequency scales to determine preference judgments.…”

Context effects on tempo and pleasantness judgments for Beatles songs

“…The attribute value at which the function peaks is referred to as an ideal point, reflecting the most pleasant attribute value (Coombs, 1964). Research exploring context effects on ideal points has primarily examined preference-related judgments in perceptual domains and has overwhelmingly found that the ideal point shifts toward the values of contextual stimuli Pettibone & Wedell, 2007;Riskey, Parducci, & Beauchamp, 1979;Wedell & Pettibone, 1999;Wedell, Santoyo & Pettibone, 2005; although for an exception, see Cooke, Janiszewski, Cunha, Nasco, & de Wilde, 2004). Panel B of Fig.…”