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Extremeness aversion: Position effects in retail, in terms of spatial vs. numerical choice architecture

  • The objective of this paper is to build on well-established theories like extremeness aversion and extend those to a spatial context. Extremeness aversion occurs as disadvantages loom larger than advantages. Therefore decision-makers tend to avoid the extremes and choose the middle alternative, implying that a product that becomes the intermediate alternative becomes more attractive. However, a vast majority of literature seems to neglect spatial aspects. Therefore, we propose that positioning a product in the middle of a choice architecture will lead to a relative increase in likelihood of its being chosen. In a six-week field experiment in a retail market, we displayed three choice sets of different categories. Results are inconsistent with previous research, as there was no increase in choice for the product positioned in the middle of the choice architecture.

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Author:Yara Sophia Alves Trindade
Advisor:Kai-Markus Müller
Document Type:Bachelor Thesis
Year of Completion:2021
Granting Institution:Hochschule Furtwangen
Date of final exam:2021/08/31
Release Date:2022/01/20
Tag:Choice architecture; Compatibility effect; Context effect; Extremeness aversion
Page Number:31
Degree Program:IBW - Internationale Betriebswirtschaft
Functional area:Andere/Other
Licence (German):License LogoUrheberrechtlich geschützt