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The compromise effect can be observed in the consumer’s tendency to avoid extreme ends of the available range when making purchasing decisions. In this video, MARKO SARSTEDT investigates the origins of the compromise effect. Describing an experiment that interrogates the effects of a lowering of cognitive capability on purchasing decisions, Sarstedt argues that rather than involving fast or intuitive decision making, the compromise effect is grounded in deliberate and demanding thought processes. The research provides a platform for further work examining the links between other effects (e.g. the attraction effect, the phantom decoy effect) and cognitive depletion.
DOI:
https://doi.org/10.21036/LTPUB10639

Researcher

Marko Sarstedt is Chaired Professor of Marketing at Ludwig-Maximilians-University München and won the 2018 Research Award. He is also an Adjunct Professor at Babeș-Bolyai University, Cluj. Sarstedt has previously worked at the University of Newcastle (Australia) and Ludwig Maximilian University of Munich. His research focuses on consumer behavior and on the improvement of marketing decision making. The winner of five Emerald Citations of Excellence and two AMS William R. Darden awards, in 2020, Sarstedt was judged the second most influential business researcher in Germany, Austria and Switzerland (F.A.Z.-Ökonomenranking).

Institution

Original publication

The Influence of Serotonin Deficiency on Choice Deferral and the Compromise Effect

Lichters Marcel, Brunnlieb Claudia, Nave Gideon, Sarstedt Marko and Vogt Bodo
Journal of Marketing Research
Published in 2016

Reading recommendations

Market Boundaries and Product Choice: Illustrating Attraction and Substitution Effects

Huber Joel and Puto Christopher
Journal of Consumer Research
Published in 1983

Alternative Models for Capturing the Compromise Effect

Kivetz Ran, Netzer Oded and Srinivasan V.
Journal of Marketing Research
Published in 2004

On the Practical Relevance of the Attraction Effect: A Cautionary Note and Guidelines for Context Effect Experiments

Lichters Marcel, Sarstedt Marko and Vogt Bodo
Academy of Marketing Science Review
Published in 2015

How durable are compromise effects?

Marcel Lichters, Holger Müller, Marko Sarstedt and Bodo Vogt
Journal of Business Research
Published in 2016

Choice Based on Reasons: The Case of Attraction and Compromise Effects

Itamar Simonson
Journal of Consumer Research
Published in 1989
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