Adapting to the Euro: Evidence from bias reduction

Mussweiler, Thomas; Englich, Birte

doi:10.1016/s0167-4870(03)00015-1

Cited by 49 publications

(59 citation statements)

References 21 publications

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“…Further, [22] examined the effects of anchoring on price estimates in Germany during the transition from the deutsche mark to the euro. They found that before the transition, German participants were more susceptible to anchoring when judging prices in euros (with which they were less familiar) than when judging prices in deutsche marks.…”

Section: Anchoring and Knowledgementioning

confidence: 99%

Knowledge and Anchoring: Verification of Three Circumstances in Which Knowledge Does Not Interfere with Anchoring

Tang¹,

Lin²

2017

JSS

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Many researchers have demonstrated that those people with higher knowledge are less subject to the impact of a given anchor. In real life, however, a situation might be quite complicated and not simply a question of an existing high (or low) anchor. We have designed four tests to demonstrate the relation between knowledge and anchoring. We hold that only in general situations can knowledge interfere with the anchoring effect. Study 1 was used to demonstrate this hypothesis. The research result in turn served as the foundation for our follow-up studies. Based on this foundation, we conducted three experiments to demonstrate that, when faced with a complicated and difficult estimation that must be completed within a short period of time (Study 2), when the source of information possesses a high degree of reliability (Study 3), and when practical experience is lacking (Study 4), the anchoring effect will still exert influences on people with higher knowledge.

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Section: Anchoring and Knowledgementioning

confidence: 99%

Knowledge and Anchoring: Verification of Three Circumstances in Which Knowledge Does Not Interfere with Anchoring

Tang¹,

Lin²

2017

JSS

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“…To the extent that a consumer becomes familiar with a foreign currency, this difference disappears (Marques and Dehaene 2004). For example, shortly after the introduction of the euro, consumers' price perceptions exhibited a face-value effect, but it dissipated rather rapidly (Mussweiler and Englich 2003;Wakker, Köbberling, and Schwieren 2007). One may wonder to what extent familiarity may also eliminate the unit effect.…”

Section: Further Research and Implicationsmentioning

confidence: 99%

How to Make a 29% Increase Look Bigger: The Unit Effect in Option Comparisons

Pandelaere¹,

Briers²,

Lembregts³

2011

Journal of Consumer Research

115

141

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JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org. Quantitative information can appear in different units (e.g., 7-year warranty p 84-month warranty). This article demonstrates that attribute differences appear larger on scales with a higher number of units; expressing quality information on such an expanded scale makes consumers switch to a higher-quality option. Testifying to its practical importance, expressing the energy content of snacks in kilojoules rather than kilocalories increases the choice of a healthy snack. The unit effect occurs because consumers focus on the number rather than the type of units in which information is expressed (numerosity effect). Therefore, reminding consumers of alternative units in which information can be expressed eliminates the unit effect. Finally, the unit effect moderates relative thinking: consumers are more sensitive to relative attribute differences when the attribute is expressed on expanded scales. The relation with anchoring and implications for temporal discounting and loyalty programs are discussed. The University of Chicago Press

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“…Susceptibility to this bias is higher in situations of uncertainty, and this would have led participants to use their familiar reference prices in the former national currency as anchors to judgments made in euros (Jonas et al, 2002). Moreover, Mussweiler and Englich (2003) in a study involving data collection before and after the introduction of the euro coins and banknotes (all other studies mentioned were done before January 2002) showed that susceptibility to this bias was higher for anchors in euros as compared with anchors in German marks (DM) in Winter 2001, but this was reversed by Summer 2002. Mussweiler and Englich only used one item (the price of a new German midsize car), which seems a very limited (and maybe biased) set to conclude for a rapid adaptation to the new currency.…”

mentioning

confidence: 99%

Developing Intuition for Prices in Euros: Rescaling or Relearning Prices?

Marques¹,

Dehaene²

2004

Journal of Experimental Psychology: Applied

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This article examines how numerical intuition for prices develops after a major change in currency. University students in Portugal (Study 1) and Austria (Study 2) made price estimates for 40 different items from November 2001 to June 2002, surrounding the time at which these countries switched to the euro. Overall results are more in accordance with a relearning hypothesis, considering that price estimates become progressively more accurate by a process that is related to buying frequency and, hence, is faster for frequently bought items. An alternative global rescaling hypothesis received mixed support. Results also suggest that price estimations in euros have not yet reached a level of accuracy comparable with estimations in the former national currency.

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Adapting to the Euro: Evidence from bias reduction

Cited by 49 publications

References 21 publications

Knowledge and Anchoring: Verification of Three Circumstances in Which Knowledge Does Not Interfere with Anchoring

Knowledge and Anchoring: Verification of Three Circumstances in Which Knowledge Does Not Interfere with Anchoring

How to Make a 29% Increase Look Bigger: The Unit Effect in Option Comparisons

Developing Intuition for Prices in Euros: Rescaling or Relearning Prices?

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