A self-regulatory model of consideration set formation

PurposeDecision aids (DAs) in online retail stores ease consumers' information processing. However, online consumers do not use all decision aids in purchase decision-making. While the literature has documented the effects of individual decision aids or two decision aids at a time, no study has compared the efficacy of multiple decision aids simultaneously. Also, very few studies have looked at the use of decision aids for consumers with maximizing and satisficing tendencies. Hence, this study aims to understand the preferences of maximizers and satisficers towards online decision aids during the choice-making process.Design/methodology/approachThis is an observational study with 60 individuals who were asked to purchase either a search-based or an experience-based product online. Participants' browsing actions and verbalizations during online shopping, were recorded and analysed using NVivo, and later the use of decision aids was mapped along their choice process.FindingsConsumer's preference of decision aids varies across the two stages of the choice process (that is, consideration set formation and evaluation & choice). In their choice formation, maximizers use different decision aids in both stages, that is, filter tool and in-website search tool for search products, and collaborative filtering-based recommender systems and eWOM for experience products. Satisficers used more decision aids as compared to maximizers across the two stages for both product types.Originality/valueThis study is an exploratory attempt to understand how consumers use multiple decision aids present on e-commerce websites.

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Consideration: Review of Research and Prospects for Future Insights

Journal of Marketing Research ◽

10.1177/002224379703400309 ◽

1997 ◽

Vol 34 (3) ◽

pp. 406-410 ◽

Cited By ~ 41

Author(s):

John H. Roberts ◽

James M. Lattin

Keyword(s):

Decision Process ◽

Marketing Research ◽

Additional Insight ◽

Consideration Set ◽

Individual Level ◽

Consumer Decision Process ◽

New Ideas ◽

Level Model ◽

Consideration Set Formation ◽

Insight Into

The authors review the behavioral underpinnings of consideration set formation and revisit the theoretical and empirical evidence that led them to develop an individual level model of consideration. They synthesize the research that has appeared since their 1991 article in the Journal of Marketing Research, examining new ideas, reviewing evolving measurement methodologies, and suggesting several areas for further research that they believe will provide additional insight into the consideration phase of the consumer decision process.

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Consider the forest or the trees? The effects of mindset abstraction on memory-based consideration set formation

10.17077/etd.ogup9nm2 ◽

2013 ◽

Author(s):

Fang-Chi Lu

Keyword(s):

Consideration Set ◽

Consideration Set Formation

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Revealed Preference with Limited Consideration

American Economic Journal Microeconomics ◽

10.1257/mic.20150343 ◽

2018 ◽

Vol 10 (1) ◽

pp. 102-131 ◽

Cited By ~ 2

Author(s):

Thomas Demuynck ◽

Christian Seel

Keyword(s):

Sufficient Conditions ◽

Revealed Preference ◽

Household Consumption ◽

Consideration Sets ◽

Consideration Set ◽

Consumption Choices ◽

Consideration Set Formation ◽

Necessary And Sufficient ◽

Preference Tests ◽

Basic Test

We derive revealed preference tests for models where individuals use consideration sets to simplify their consumption problem. Our basic test provides necessary and sufficient conditions for consistency of observed choices with the existence of consideration set restrictions. The same conditions can also be derived from a model in which the consideration set formation is endogenous and based on subjective prices. By imposing restrictions on these subjective prices, we obtain additional refined revealed preference tests. We illustrate and compare the performance of our tests by means of a dataset on household consumption choices. (JEL D11, D12, M31)

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