An investigation of utility-directed cutoff selection

Article Abstract:

Although the use of cutoffs in heuristic decision strategies has been widely discussed, few studies have attempted to identify which cutoffs will be used in a particular decision. In this article it is proposed that decision makers choose cutoffs that maximally discriminate retained and rejected alternatives in terms of utility. Thus, cutoff selection is influenced by the utility structures that the decision maker has for salient attributes of the alternatives. A model is tested in which cutoffs are assumed to be positioned where the difference in utility between the two attribute levels that span the cutoff is greatest. Utilities are measured by conjoint analysis and cutoffs are identified by concurrent protocols. The proposed relationships are generally supported; however, the nature of the errors in the model's predictions suggests a modification in which cutoff placement is more conservative. A second model with more conservative cutoffs is shown to work well in specific decisions, but does not generally predict cutoffs better than the original model. In addition, the outcomes from heuristic choice processes were often optimal. Decision makers who use cutoffs may select them rationally, with the expectation of making the best choice as well as simplifying a decision. (Reprinted by permission of the publisher.)

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Effects of quality and quantity of information on decision effectiveness

Article Abstract:

Providing attribute information about alternatives can both help and hinder consumers evaluate products. We separate attribute information into two components: information quality and information quantity. We hypothesize, all else being equal, that the former component improves decision effectiveness while the latter component decreases decision effectiveness. The results of an experimental investigation designed to estimate the marginal effects of these factors were compatible with these premises. In addition, evaluations were also found to suffer in situations where high levels of information quality were made available. Insights into these and other observed effects are suggested after exploring thee process by which subjects used the available information. (Reprinted by permission of the publisher.)

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Nutrition information in the supermarket

Article Abstract:

Nutritional information given in a supermarket to consumers will affect their decision to buy various products only if it is presented in a certain way. Two alternative ways of presenting information were tested using a matrix format and a summary format. Results indicate that the summary format with its hierarchical ordering had a much greater impact on consumers. The conclusion of this research is that for information displays to affect behavior patterns, the information must be displayed in manner that reduces the consumers' effort at deciphering the data. Effort-reducing displays are the most effective.

Services, Marketing, Information services, Advertising, Consumer preferences

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