Whereas literature in marketing shows that individuals often use noncompensatory decision rules, existing research on dyadic choice is based on compensatory models. In this paper we present a dyadic consider-then-choose model that investigates both compensatory and noncompensatory aspects of the...

In this paper we define an embedded premium (EP) as an enhancement that involves a social cause added on to a product or service. We characterize EP as a sales promotion strategy and juxtapose it with traditional approaches, such as discounts and rebates. Across three experiments, using a...