Refine
Document type
- Bachelor Thesis (3)
Language
- English (3)
Is part of the Bibliography
- No (3)
Keywords
- Extremeness aversion (3) (remove)
Course of studies
- IBW - Internationale Betriebswirtschaft (3) (remove)
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.
Important prior studies regarding customers purchasing behaviour proved that customers tend to avoid products showing extreme deflections in attributes and feel more comfortable purchasing articles with a balance in attributes (compromise option). Hence, for marketers, supermarket chains etc., it can be of an advantage knowing whether this effect can also be measured or even be amplified in where the spatial middle of a shelf is occupied with the compromise option. We hypothesized that the tendency towards the compromise option, eventually even higher in the spatial middle position, can also be observed in an in-store experiment with real-life circumstances. In order to fulfil our study, we worked with a hardware store in southern Germany. In total, we sold 610 items consisting of 5 different products with each 3 alternatives. The result corroborated our hypothesis partly as it showed in some cases, the compromise option was indeed preferred when in the middle of a choice set. Nevertheless, in many cases, products on extreme position with “extreme” attributes were preferred. Leading to the conclusion that other factors like the brand may have higher importance in purchasing decisions.
Prior research on choice in context demonstrated extremeness aversion to be very effective on consumers’ purchasing behaviour. However, it seems that previous studies have neglected to investigate the impact of the spatial arrangements of choice architectures on consumers purchasing behaviour. Based on indications of prior research, we pursued to demonstrate in this study that consumers who are uncertain regarding their
preferences tend to search for alternatives in the middle of a choice architecture. Therefore, we hypothesized that an alternative, positioned in the middle of a choice architecture, will present a relatively higher choice share. To research this hypothesis we conducted an online survey mainly in Central Europe, which involved a total number of
901 respondents at the age between 15 and 95. The study’s results demonstrate that the decision making of the majority of the participants is heavily influenced by a choice architecture’s spatial arrangement. It became evident that the choice share of one
alternative was higher when presented in the middle of a choice architecture than when presented in the periphery.