What you are confident of determines your choices in context: Confidence in yourself versus in your ability

Abstract

The notion that consumers' preference is constructed by decision context is well established. Two of such salient manifestations are compromise effect and attraction effect. Although literature has explored the moderators of these effects from the perspective of a decision maker, little is known about whether a significant difference exists between the effects of individual differences as a situational state and as a stable personality. This article approaches this question by examining how specific self‐confidence and general self‐confidence shape consumer's preference for context options. Four studies find that compromise effect is greater for consumer with high specific self‐confidence, whereas attraction effect is greater for consumer with low specific self‐confidence. The two context effects are greater for consumers with low general self‐confidence only in the presence of social influence. In addition, low (vs. high) general self‐confidence strengthens (vs. weakens) the impact of specific self‐confidence on context effects under this condition. This article concludes by discussing the theoretical and practical implications of the findings.