Explaining the use of attribute cut-off values in decision making by means of involvement

Anne O. Peschel, Carola Grebitus, Gregory Colson, Wuyang Hu

Research output: Contribution to journalArticlepeer-review

7 Scopus citations

Abstract

In order to lower the cognitive burden of decision making, consumers may apply attribute cut-off values to simplify decision strategies. Products with attributes that do not pass the cut-off values are either not being considered by the individual or are greatly discounted. This study provides new evidence on consumers’ heterogeneous use of attribute cut-offs with a unique focus on the relationship with consumer involvement, a key component in consumer choice theory. Behavioral data from an online choice experiment on beef steak employing shelf simulations are combined with questions defining respondents’ attribute cut-off values and their validated Personal Involvement Inventory (PII). Evidence from the analysis indicates that consumers who are highly involved are more likely to exhibit attribute cut-off values and are less likely to violate their cut-off values. Further investigation using a latent class model identifies several key consumer segments (e.g., a price sensitive group) based on their choice behavior and reveals that the relationship between involvement, cut-off use and cut-off violations is not uniform across consumer segments.

Original languageEnglish (US)
Pages (from-to)58-66
Number of pages9
JournalJournal of Behavioral and Experimental Economics
Volume65
DOIs
StatePublished - Dec 1 2016

Keywords

  • Beef
  • Choice experiment
  • Consumer segmentation
  • Cut-off value violation
  • Decision strategy
  • Latent class analysis

ASJC Scopus subject areas

  • Applied Psychology
  • Economics and Econometrics
  • Social Sciences(all)

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