To buy or how much to buy? Partition dependence in purchase-quantity decisions

Tavassoli, Nader T.; Visentin, Matteo

doi:10.1007/s11002-021-09596-2

Cited by 3 publications

(2 citation statements)

References 27 publications

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“…Link 1 (standardized coefficient = 0.352; p < 0.001, one tailed) represents the negative affect derived from the negatively-toned details (Elliott et al , 2013), and the coefficient shows that the negatively-toned details (Detail Tone) increase investor perceptions of the severity of the individual parts of the weakness (Individual Severity). Link 2 represents the test of partition dependence theory (Xing et al , 2020) and whether the negatively-toned details lead investors to create more partitions and perceive the parts of the weakness to be more separate, distinct problems (Kousta et al , 2009; Tavassoli and Visentin, 2022). In support of this theory, the coefficient on Link 2 shows Individual Severity has a positive effect on Distinct Problems (standardized coefficient = 0.332; p < 0.001, one tailed), which means that participants perceive there to be more distinct problems in the company’s ICFR as their perceptions of the severity of the parts of the weakness increase.…”

Section: Resultsmentioning

confidence: 99%

“…For example, Xing et al (2020) found that students’ allocation of financial aid to income groups depended on how the income groups were divided insomuch that students allocated more financial aid to the below $75,000 income group when that group was presented with more distinct income categories than when that income group was only presented as a single category. Tavassoli and Visentin (2022) found that increasing the number of distinct choice partitions provided to consumers increased their purchase intentions of a product. Most of the studies in the partition dependence literature manipulate the number of distinct partitions in the event space presented to participants.…”

Section: Theory and Hypothesis Developmentmentioning

confidence: 99%

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The impact of tone management on investor judgments: evidence from ICFR reports

Starliper

2023

ARJ

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Purpose In preparing company financial statements, management is required to evaluate internal controls and disclose any material weaknesses in the internal control over financial reporting (ICFR) report. This study aims to examine how the tone of the details management provides to describe a material weakness in its ICFR report impacts investors’ perceptions of the severity of the material weakness and the desirability of the company as a potential investment. Design/methodology/approach This study uses an experimental design that manipulates whether the company’s ICFR report includes a negatively-toned detail to describe a material weakness disclosed in the report. Participants read the report and answer questions concerning their perceptions of the desirability of the company as an investment and the severity of the material weakness. Findings This study finds that using negatively-toned details to describe a material weakness, as opposed to an absence of those details, decreases investment desirability due to an increase in the perceived severity and number of distinct problems in ICFR. Originality/value This study extends prior research by showing that the tone of details used to describe a material weakness, not just the quantity of details, impacts investors’ decision-making. This study shows that management can carefully construct their ICFR report to avoid tone and potentially mitigate the negative effect of disclosing ineffective ICFR.

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Section: Resultsmentioning

confidence: 99%

Section: Theory and Hypothesis Developmentmentioning

confidence: 99%

The impact of tone management on investor judgments: evidence from ICFR reports

Starliper

2023

ARJ

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Giving Suggestions: Using Quantity Requests to Increase Donations

Moon

VanEpps

2022

Journal of Consumer Research

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Across seven studies (N = 9,028), we provide evidence that quantity requests, wherein people consider multiple choice options of how much to donate (e.g., $5, $10, or $15), increase contributions compared to open-ended requests. Specifically, quantity requests encourage greater donations (Study 1), even when respondents can passively choose not to donate (Study 2) and even when the donation is directed toward a less popular cause (Study 3). This increase in donations holds for quantity requests that start with both lower (e.g., $1) or higher (e.g., $10) donation amount options (Study 4). Quantity requests also outperform other requests with multiple non-quantity donation options (e.g., multiple options of when to donate or to which charity branch to direct a donation; Study 5). We offer evidence that quantity requests are effective because they simplify donation decisions by communicating normative donation magnitudes (Studies 6-7). This clarified norm of donation magnitude boosts donation rates, which in turn leads to greater total donations. Our findings offer new conceptual insights into how quantity requests increase contributions as well as practical implications for charitable organizations to optimize contributions by leveraging the use of quantity requests.

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Should I Give or How Much Should I Give? Continuous (versus Discrete) Requests Increase Likelihood of Prosocial Engagement

Moon

VanEpps

2017

SSRN Journal

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To buy or how much to buy? Partition dependence in purchase-quantity decisions

Cited by 3 publications

References 27 publications

The impact of tone management on investor judgments: evidence from ICFR reports

The impact of tone management on investor judgments: evidence from ICFR reports

Giving Suggestions: Using Quantity Requests to Increase Donations

Should I Give or How Much Should I Give? Continuous (versus Discrete) Requests Increase Likelihood of Prosocial Engagement

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