This article explores the phenomenon of “hyperopia,” or an aversion to indulgence, as introduced by Kivetz and Simonson (2002) and Kivetz and Keinan (2006). We first develop a measure to capture hyperopia as an individual difference. Three empirical studies use this measure to demonstrate...

By 2011, approximately 83% of Fortune 500 companies were using some form of social media to connect with consumers (Hameed 2011). Further, surveys suggest that consumers are increasingly relying on social media to learn about unfamiliar brands. However, best practices regarding the use of social...

In the present paper, we conceptualize and investigate customers' preference for and responses to surprise offerings – products and services for which one or more core attributes are uncertain and unknown to the buyer at the time of purchase. We propose that an important motivation that...

Pigovian taxes are time-honored responses to negative externalities in the commercial world: firms that pollute must pay the costs of the damage they do to their broader community. Such localization of costs to those who create them seems rational and fair. But when Pigovian taxes are applied to...

The inability to accurately predict our emotions has been implicated as the root of numerous problems in consumer well-being. For marketers, consumers' poor affective forecasting can drive the choice of ill-suited products, unreliable survey responses, or post-purchase dissatisfaction. But can...

Considerable research demonstrates a “compromise effect” showing preference for “middle” options. Yet, in the context of bundles, the “middle” option in a choice set can be composed in multiple ways. First, a bundle may include only purely moderate options (e.g., individual stocks...

We show that formats used by retailers to organize assortments into subcategories can enhance or encumber consumers’ learning and satisfaction. For more knowledgeable consumers, unexpected subcategory formats provide a newness cue, thereby increasing effort, learning and satisfaction with the...

This article explores the effects of two distinct retail choice architectures — those that organize assortments by attributes and those that organize items by benefits. Relative to attribute-based organizations, benefit-based organizations lead to more abstract construal and heighten...