Lay Rationalism and Inconsistency Between Predicted Experience and Decision

Hsee, Christopher K.; Zhang, Jiao; Yu, Frank; Xi, Yiheng

doi:10.1017/cbo9780511618031.030

Cited by 49 publications

(76 citation statements)

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“…These economic factors include both objective and subjective value judgments, which encompass the practical and economic considerations pertaining to purchases. Consumers may choose purchases that represent higher economic value, rather than pleasure and enjoyment, when they rely on logical rules and 'lay rationalism' (Hsee, Zhang, Yu, & Xi, 2003). As such, the 'lay rationalist' may be especially likely to choose those options that encompass material, tangible, and economic gains.…”

Section: Balancing Happiness With Economic Valuementioning

confidence: 99%

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The hidden cost of value-seeking: People do not accurately forecast the economic benefits of experiential purchases

Pchelin

Howell

2014

The Journal of Positive Psychology

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In spite of the experiential advantage, people consume material items in the pursuit of happiness. We conducted three studies to determine if people commit forecasting errors when deciding between purchasing life experiences and material items. Study 1a showed that people expect life experiences to result in more well-being, whereas material items are forecasted to be a better use of money. However, Study 1b demonstrated that people enjoy greater well-being from life experiences and consider them to be a better use of money. Study 2, a four-week longitudinal study, corroborated this economic misforecast. Study 3 demonstrated that seeking to make good use of one's money, compared to prioritizing happiness, is more important during material consumption, and when people attempt to maximize economic value, instead of their happiness, they are more likely to consume material items. We suggest that prioritizing value may encourage people to prefer material items instead of life experiences.

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Section: Balancing Happiness With Economic Valuementioning

confidence: 99%

“…Numerous studies show that a majority of people will forgo enjoyment for higher value (Arkes & Blumer, 1985;Hsee, 1999;Hsee et al, 2003). Ultimately, sacrificing well-being for monetary concerns is not problematic per se as individuals still obtain economic benefits.…”

Section: Balancing Happiness With Economic Valuementioning

confidence: 99%

The hidden cost of value-seeking: People do not accurately forecast the economic benefits of experiential purchases

Pchelin

Howell

2014

The Journal of Positive Psychology

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“…Given the potential of loyalty programs, marketing scholars have investigated their effects on marketing effectiveness. However, most studies have focused on their positive consequences, such as improved brand attitudes, customer satisfaction, and customer loyalty (e.g., Hsee et al 2003;Lemon et al 2002;Sheth and Parvatiyar 1995;Thaler 1985;Van Osselaer et al 2004). This study assumes that loyalty programs also have negative consequences.…”

Section: Introductionmentioning

confidence: 99%

Effects of demotion in loyalty programs on brand-switching intentions

Hwang

Kwon

2015

Serv Bus

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This study explores the effects of demotion in loyalty programs on intentions to switch to competitors. In a survey of 650 individuals, demotion evoked negative emotions, and its effect weakened when the demoted respondents' internal locus of control was high and strengthened when their program involvement was high. Negative emotions had an indirect effect on intentions to switch to competitors; its effect was thus mediated by the demoted respondent's attitudes toward the company. Finally, negative emotions had a direct effect on switching intentions, an effect moderated by prior satisfaction with the company.

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“…Hsee and his co-workers (Hsee & Zhang, 2004;Hsee, Zhang, Yu, & Xi, 2003) have noted that emotional attributes may be underweighed when the task involves prediction of the decision-maker's future emotional responses, as in many consumer purchases. Our concern here is with public policy, where choices affect others and prediction of the emotional responses of those affected would seem to depend largely on the objective consequences (deaths, illnesses, and so on).…”

Section: Introductionmentioning

confidence: 99%

Joint presentation reduces the effect of emotion on evaluation of public actions

Ritov

Baron

2011

Cognition & Emotion

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In four experiments conducted on the world wide web, subjects evaluated the priority of policies presented separately or presented jointly in pairs, and/or reported their emotional responses to the problem that each policy addressed. Strength of emotional responses was more strongly related to priority when policies were presented separately than when they were presented jointly. We found evidence for one mechanism that could produce these results: joint presentation increases the evaluability of the policies, thus increasing the influence of cognitive evaluations of importance on priority judgements, and reducing the relative influence of emotional responses. We also found evidence that importance can affect emotional responses. We found no evidence for other mechanisms in which the emotions evoked by one item spread to the other item in joint presentation. The role of evaluability points to the applied value of evaluating policies in the context of alternatives.

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Lay Rationalism and Inconsistency Between Predicted Experience and Decision

Cited by 49 publications

References 0 publications

The hidden cost of value-seeking: People do not accurately forecast the economic benefits of experiential purchases

The hidden cost of value-seeking: People do not accurately forecast the economic benefits of experiential purchases

Effects of demotion in loyalty programs on brand-switching intentions

Joint presentation reduces the effect of emotion on evaluation of public actions

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