Joint versus Separate Modes of Evaluation

Zhang, Jiao

doi:10.1002/9781118468333.ch7

Cited by 8 publications

(13 citation statements)

References 97 publications

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“…While giving these instructions, the experimenter pointed to both the $1 bill and the stack of two $1 bills. Because a $2 reward could appear larger when one compares it to $1 (Ariely, Loewenstein, and Prelec 2003;Hsee and Zhang 2010;Hsee et al 2009Hsee et al , 2013Zhang 2014), we let participants in both conditions see the $2 reward with the $1 reward as a reference. In a pretest (N p 76) that used the same presentation formats, the subjective evaluation of the $2 reward did not vary across two reward conditions (on a 7-point scale of reward attractiveness: M uncertain p 5.27, SD uncertain p 1.35; M certain p 5.30, SD certain p 1.24; t !…”

Section: Methodsmentioning

confidence: 99%

The Motivating-Uncertainty Effect: Uncertainty Increases Resource Investment in the Process of Reward Pursuit

2015

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Can a reward of an uncertain magnitude be more motivating than a reward of a certain magnitude? This research documents the motivating-uncertainty effect and specifies when this effect occurs. People invest more effort, time, and money to qualify for an uncertain reward (e.g., a 50% chance at $2 and a 50% chance at $1) than a certain reward of a higher expected value (e.g., a 100% chance at $2). This effect arises only when people focus on the process of pursuing a reward, not when they focus on the outcome (the reward itself ). When the focus is on the process of reward pursuit, uncertainty generates positive experience such as excitement and hence increases motivation. Four studies involving real rewards lend support to the motivating-uncertainty effect. This research carries theoretical implications for research on risk preference and motivation and practical implications for how to devise cost-efficient consumer incentive systems.C onsumers often invest resources such as effort, time, or money toward a reward of an uncertain magnitude. We seek to answer a foundational question in consumer psychology: how reward uncertainty affects resource investment. Does uncertainty increase or decrease motivation?Previous research offers contradictory answers. On the one hand, both normative theories (e.g., Expected-Utility

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Section: Methodsmentioning

confidence: 99%

The Motivating-Uncertainty Effect: Uncertainty Increases Resource Investment in the Process of Reward Pursuit

2015

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“…Outcome uncertainty invites resolution, and as study 2 demonstrates, resolution does contribute to the reinforcing-uncertainty effect. Outcome variety introduces a list of alternative explanations: (a) hedonic adaptation (that varied outcomes are more resistant to hedonic adaptation than fixed ones; Frederick and Loewenstein 1999;Kahneman and Thaler 1991); (b) the contrast effect or reference-dependent preferences (that a good outcome appears better when a not-so-good outcome serves as the reference point; Hsee 1996;Morewedge et al 2009;Tversky and Kahneman 1991;Zhang 2015); and (c) variety seeking (that varied outcomes may be seen as more valuable than fixed outcomes; Fishbach, Ratner, and Zhang 2011;McAlister and Pessemier 1982;Simonson 1990). Do any of these "variety" explanations contribute to the reinforcing-uncertainty effect?…”

Section: Study 3: Ruling Out Alternative Explanationsmentioning

confidence: 99%

The Fun and Function of Uncertainty: Uncertain Incentives Reinforce Repetition Decisions

Shen

Hsee

Talloen

2018

Journal of Consumer Research

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This research studies repetition decisions-namely, whether to repeat a behavior (e.g., a purchase) after receiving an incentive (e.g., a discount). Can uncertainty drive repetition? Four experiments, all involving real consequences for each individual participant, document a counterintuitive reinforcing-uncertainty effect: individuals repeat a behavior more if its incentive is uncertain than if it is certain, even when the certain incentive is financially better. This effect is robust; it holds in both lab and field settings and at both small and large magnitudes. Furthermore, the experiments identify two theory-driven boundary conditions for the reinforcing-uncertainty effect: the effect arises (a) only if the uncertainty is resolved immediately and not if the resolution of uncertainty is delayed, and (b) only after, not before, one has engaged in repetitions. These results support a resolution-as-reward account and cast doubt on other explanations such as reference-dependent preferences. This research reveals the hidden value of uncertain incentives and sheds light on the delicate relationship between incentive uncertainty and repetition decisions.

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“…This proposition stems from general-evaluability theory (Hsee, 1996; Hsee, Loewenstein, Blount, & Bazerman, 1999; Hsee, Yang, Li, & Shen, 2009; Hsee & Zhang, 2010; Shen, Hsee, Wu, & Tsai, 2012; Zhang, 2016). According to this theory, when the value of a low-evaluability attribute appears in isolation (i.e., in the single-evaluation mode), people are sensitive to its sign (whether the value is positive or negative) but insensitive to its size (how large the value is), because sign is easy to evaluate independently, but size is hard to evaluate independently.…”

Section: Theorymentioning

confidence: 99%

Numerical Nudging: Using an Accelerating Score to Enhance Performance

Shen

Hsee

2017

Psychol Sci

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People often encounter inherently meaningless numbers, such as scores in health apps or video games, that increase as they take actions. This research explored how the pattern of change in such numbers influences performance. We found that the key factor is acceleration-namely, whether the number increases at an increasing velocity. Six experiments in both the lab and the field showed that people performed better on an ongoing task if they were presented with a number that increased at an increasing velocity than if they were not presented with such a number or if they were presented with a number that increased at a decreasing or constant velocity. This acceleration effect occurred regardless of the absolute magnitude or the absolute velocity of the number, and even when the number was not tied to any specific rewards. This research shows the potential of numerical nudging-using inherently meaningless numbers to strategically alter behaviors-and is especially relevant in the present age of digital devices.

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Joint versus Separate Modes of Evaluation

Cited by 8 publications

References 97 publications

The Motivating-Uncertainty Effect: Uncertainty Increases Resource Investment in the Process of Reward Pursuit

The Motivating-Uncertainty Effect: Uncertainty Increases Resource Investment in the Process of Reward Pursuit

The Fun and Function of Uncertainty: Uncertain Incentives Reinforce Repetition Decisions

Numerical Nudging: Using an Accelerating Score to Enhance Performance

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