Marketing Seminar（2017-08）

Title: Testing the Role of Contextual Deliberation in the Compromise Effect

Speaker: Liang Guo, Chinese University of Hong Kong

Time: Wednesday, May 3, 13:30-15:00

Place: Room 217, Guanghua Building 2

Abstract

Phenomena of preference construction demonstrate violation of rationality in classical economic theories. One of the most well-known examples of preference construction is the compromise effect. This puzzling anomaly can be rationalized by contextual deliberation (i.e., information-acquisition activities that can partially resolve utility uncertainty before choice). In this research we investigate the theoretical robustness and empirical validity of this explanation. We conduct five experiments with more than one thousand participants, and show that the compromise effect can be positively mediated by response time, cannot be mitigated by context information, but can be moderated by manipulating the level of deliberation (i.e., time pressure, preference articulation, task order). These findings are consistent with the predictions of the theory of contextual deliberation.

Introduction

Liang Guo is a Professor of Marketing at Chinese University of Hong Kong. He received a Ph.D. in Business Administration from University of California at Berkeley, and a B.A. in Economics from Beijing University. His research interests include economics of psychology, marketing strategy, industrial organization, and applied economics. His research work has been accepted for publication at the Journal of Economics and Management Strategy, Journal of Marketing Research, Management Science, Marketing Science, and Productions and Operations Management. He is on the editorial boards of International Journal of Research in Marketing and Marketing Science, and serves as the Associate Editor for Quantitative Marketing and Economics and Management Science. He was named the “MSI Young Scholar” in 2009, and the “Cheung Kong Chair Professor” in 2015.

//www.bschool.cuhk.edu.hk/index.php/schools-departments/marketing/faculty/full-time-faculty?pid=698&sid=778:Guo-Liang

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