The Library
The effect of overconfidence and underconfidence on consumer value
Tools
Razmdoost, Kamran, Dimitriu, Radu and Macdonald, Emma K. (2015) The effect of overconfidence and underconfidence on consumer value. Psychology & Marketing, 32 (4). pp. 392-407. doi:10.1002/mar.20787 ISSN 0742-6046.
Research output not available from this repository.
Request-a-Copy directly from author or use local Library Get it For Me service.
Official URL: http://dx.doi.org/10.1002/mar.20787
Abstract
Although the effect of knowledge miscalibration (i.e., the inaccuracy in subjective knowledge relative to objective knowledge) on consumer purchase decisions has been investigated, its effect in the usage stage of consumption is little understood. This paper examines the effect of knowledge miscalibration in terms of both overconfidence (i.e., when subjective knowledge is inflated) and underconfidence (i.e., when subjective knowledge is deflated) on the dimensions of consumer value (i.e., efficiency, excellence, play, and aesthetics). The paper makes the case that overconfidence and underconfidence should be treated separately as they trigger different consumption consequences. Several hypotheses are tested through two studies: a covariance‐based study (Study 1) and an experimental study (Study 2). In Study 1, overconfidence and underconfidence are measured, while in Study 2 they are experimentally manipulated. Findings of both studies show that underconfidence negatively influences efficiency, excellence, and aesthetics, and overconfidence negatively influences play. Also, Study 1 finds a negative effect of underconfidence on play and Study 2 finds a negative effect of overconfidence on excellence and aesthetics. Findings reveal that knowledge miscalibration negatively impacts consumers’ usage experiences. This implies that in designing product or service experiences suppliers benefit from ensuring that consumers achieve a reduced level of knowledge miscalibration.
Item Type: | Journal Article | ||||
---|---|---|---|---|---|
Divisions: | Faculty of Social Sciences > Warwick Business School | ||||
Journal or Publication Title: | Psychology & Marketing | ||||
Publisher: | British Psychological Society | ||||
ISSN: | 0742-6046 | ||||
Official Date: | April 2015 | ||||
Dates: |
|
||||
Volume: | 32 | ||||
Number: | 4 | ||||
Page Range: | pp. 392-407 | ||||
DOI: | 10.1002/mar.20787 | ||||
Status: | Peer Reviewed | ||||
Publication Status: | Published | ||||
Access rights to Published version: | Open Access (Creative Commons) |
Request changes or add full text files to a record
Repository staff actions (login required)
View Item |