Publication details

Influencing a warranty choice with the introduction of an inferior alternative into the choice set

Authors

ĎURINÍK Michal

Year of publication 2013
Type Article in Proceedings
Conference Sborník příspěvků VI. Mezinárodní vědecké konference doktorandů a mladých vědeckých pracovníků
MU Faculty or unit

Faculty of Economics and Administration

Citation
Field Economy
Keywords asymmetric dominance; decoy; experiment; need for cognition; purchase decision; warranty
Description In a choice set of two options A and B, adding a third option, similar but slightly inferior to A, has been shown to increase the popularity of A. This counterintuitive result is the outcome of the asymmetric dominance effect. This paper examines the effect in a purchase situation where a consumer chooses between different warranty policies for the same product. To investigate this, an experiment with 92 participants has been conducted. This paper also tests for relationship of one’s gender and Need for Cognition score to the aforementioned effect. Adding an inferior alternative was found to be a successful strategy in increasing the proportion of respondents choosing the target product. The success rate, however, differs across groups with different gender and Need for Cognition scores. The importance of these findings for future research and business practice is discussed.
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