Marko Sarstedt How are Purchasing Decisions Impacted by the Compromise Effect?
© Otto von Guericke Universität Magdeburg
Otto-von-Guericke University Magdeburg (Otto-von-Guericke-Universität Magdeburg)Magdeburg, Germany
Founded in 1993, the Otto von Guericke University Magdeburg is one of the youngest universities in Germany. As a catalyst and driver of innovation, both in the region and well beyond, the Otto von Guericke University Magdeburg pursues innovative strategies for reinforcing the transfer of technology and knowledge in regional and international enterprises. The university’s main focus of expertise is in the traditional areas of engineering, the natural sciences and medicine. It also views economics and management and the social sciences and humanities as essential disciplines for a modern university in the information age. The key areas of research transfer are automotive, digital engineering, medical technology, and renewable energies. (more)
Consumer Research Group
The Consumer Research group (CoRe) at the Otto von Guericke University Magdeburg seeks to generate insights about different consumer groups, their preferences, and the mechanisms that trigger certain behaviors. Numerous examples from management practice such as Apple, Google, and Uber show that consumer-centric management is the key to company success. However, successfully managing consumer relationships requires developing a thorough understanding of their varying needs and wants. Specifically, marketers now recognize that consumer behavior is a dynamic process, which goes well beyond what happens at the point-of-sale. The analysis of consumer behavior covers the entire consumption process and requires a holistic multi-method approach. Following this concept, researchers at CoRe conduct and disseminate rigorous research in the fields of choice anomalies, the physiology of consumer behavior, and research methodology. Regular publications in internationally renowned scientific journals are proof of the outstanding research work conducted at CoRe. Several of these publications are among the most frequently cited articles in the social sciences. (more)
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.
LT Video Publication DOI: https://doi.org/10.21036/LTPUB10639
The Influence of Serotonin Deficiency on Choice Deferral and the Compromise Effect
- Marcel Lichters, Claudia Brunnlieb, Gideon Nave, Marko Sarstedt and Bodo Vogt
- Journal of Marketing Research
- Published in 2016