ConstrualMAR 3503

March 1, 2012

False consensus effectRoss, Greene, & House, 1977Raters own choiceEstimated percent ofothers who would:

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6338

3367.5

Wear sign

Don't wear sign

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Wear signDon't wear signSeries 3

Wear63382

Don't wear3367.52

Category 33.51.83

Category 44.52.85

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ConstrualThe way in which a person interprets the world around themThe same situation may produce very different behavior depending on the subjective meaning that is attached to itThis is a fundamental theme in the study of consumer behavior!

Some determinants of construal1. Recency

Some determinants of construal1. Recency2. Frequency/familiarityHow would They ran into the bank be interpreted by a banker? A sailor?

Some determinants of construal1. Recency2. Frequency/familiarity3. Context

Primacy effects in judgmentPerson A isIntelligentIndustriousImpulsiveStubbornCriticalEnviousPerson B isEnviousCriticalStubbornImpulsiveIndustriousIntelligent

A treatIts hot, and youre at the beach. You want a refreshment. How much would you pay for this Hagen Dazs ice cream?

Reactive devaluationProposal offered by the Palestinians on 5/10/93How good is the proposal for Israel (1-7)? minus How good is the proposal for the Palestinians (1-7)?

ParticipantsPutative sourceIsraeli delegationPalestinian delegationIsraeli Jews-0.95-2.45Israeli Arabs0.93-0.01

Party over policyParticipants evaluate a welfare reform billSome participants were told that the bill was written by Republicans, others told it was written by DemocratsPs indicate (on a 1-7 scale) how much they are in favor of the billCohen, 2003

Bill was written byParticipants own affiliationLiberalConservativeDemocrats5.462.69Republicans3.155.49

Some determinants of construal1. Recency2. Frequency/familiarity3. Context4. Motivation

Construal and above average effectEveryone ranks himself high in qualities he values; careful drivers give weight to care, skillful drivers give weight to skill, and those who think that, whatever else they are not, at least they are polite, give weight to courtesy, and come out high on their own scale. This is the way that every child has the best dog on the block. Thomas Schelling

Construal and above average effectDunning, Meyerowitz, & Holzberg (1989)

More of an above average effect on ambiguous traits (e.g., sensible) than unambiguous traits (e.g., punctual)Less of an above average effect when asked to make ratings based on specific criteria supplied by someone else

Some determinants of construal1. Recency2. Frequency/familiarity3. Context4. Motivation5. Temporal perspective

Construal levelBeing social awkwardORStanding aloneAchieving a goalORWearing a medalBeing a voter ORGoing to the polls

Temporal construal theoryPeople adopt higher level construals when considering distant as opposed to near future events

High-level construalsLow-level construalsAbstractConcreteSimpleComplexStructured, coherentUnstructured, incoherentDecontextualizedContextualizedPrimary, coreSecondary, surfaceSuperordinateSubordinate

Temporally distant = higher levelWhen people are asked to list events they expect to experience during a good day or bad day in the near or distant future:The near-future events are more variable in valence (SD of ratings)The distant-future events are more extreme in valence (mean ratings)People are more likely to code near-future events in terms of how and distant-future events in terms of whyDoes locking the door mean putting a key in the lock or securing the house?

Temporal construal theoryImplications for preference, choice, and behavior:

Getting away from it all versus buying food, assembling gear, getting permits, etc.

Cheating on an exam versus peeking at my neighbors exam to compare answers

The big messageThe broader message of construals is that we may think that our memories, feelings, and knowledge are set and reflect reality, but

Instead, our knowledge and preferences are constructed

What is reframing?Its presenting the same option in different formatsThis can change peoples opinions, choices, and preferencesBoth formats are accurate, and convey the same informationThe meaning of that information is what differsREFRAMING: Our new fan uses 50% less energy than our old fan! versus Our old fan uses twice as much energy as our new fan!NOT REFRAMING: Our new fan uses 50% less energy than our old fan! versus Our new fan uses twice as much energy as our old fan!

Framing effectsPro-life versus pro-choiceLiberal versus progressiveTerrorists versus freedom fightersCash discounts versus credit card surcharges

Framing effectsImagine that the country is preparing for the outbreak of an unusual disease, which is expected to kill 600 people. Two programs have been proposed.If program A is adopted, 200 people will be savedIf program B is adopted, there is a 1/3 chance that 600 people will be saved, and a 2/3 chance that no one will be savedImagine that the countryIf program C is adopted, 400 people will dieIf program D is adopted, there is a 1/3 chance that nobody will die, and a 2/3 chance that 600 will dieTversky & Kahneman, 1981

Prospect theoryPeople are risk averse when choosing among gains, and risk seeking when choosing among lossesLoss aversion: losses loom larger than gainsConsider a gamble where you have a 50% chance of winning $1000 and a 50% chance of losing $1000Gains often need to be twice as big as losses for people to be willing to take the bet

Prospect theory

Mental accountingImagine that you have decided to see a play and paid the admission price of $20 per ticket. As you enter the theater, you discover that you have lost the ticket. The seat was not marked and the ticket cannot be recovered.Would you pay $20 for another ticket?

Tversky & Kahneman, 1984

Mental accountingImagine that you have decided to see a play where admission is $20 per ticket. As you enter the theater, you discover that you have lost a $20 billWould you still pay $20 for a ticket to the play?

Tversky & Kahneman, 1984

Mental accountingWhy are people generally willing to buy a ticket after having lost $20, but not willing to buy another ticket after having lost their previous ($20) ticket?It matters what mental account you file the loss under:If you lose the ticket and buy another, you have just increased the price of the play to $40But if you lose $20 and then buy a ticket, the price of the play is still only $20

Sunk costsImagine that you and a loved one have paid $50 for two seats to the theater for tonights show. You were really looking forward to seeing it, but are not in the mood to go tonight. Youre feeling tired because you didnt sleep well last night, and thunderstorms are predicted for tonight. You really want to spend the evening on the couch, cozy and warm. What would you do in this situation?

Imagine you spent $500 on a ski trip to Michigan that promises to be pretty funThen you find a great deal for a $250 ski trip to Wisconsin, which should be awesomeBut after you spend the money, it turns out the two trips overlap, and you cant get your money back for either, due to the special dealWhich trip do you go on?Sunk costsArkes & Blumer, 1985

Sunk costsSunk costs are payments, investments or costs that cant be recoveredWith the sunk cost fallacy, people treat sunk costs as if they werent sunk, but instead they could still get their moneys worthThis leads them to:Clean their plates even when theyre fullComplete costly and unwanted public works projectsPersevere in wars and conflicts so soldiers wont have died in vain

Reason-based choiceWhy do some people who would grant Parent B custody also choose to deny Parent B custody?People need to have reasons for their choices, and mixed bag options usually provide more reasons both in favor of an against that optionSo which way a person chooses in these kinds of situations is very much influenced by what question they are trying to answer

Construal and healthPs were 84 housekeepers from a variety of hotels in the Boston area, recruited for a study on how to increase health and happiness in the hotel industry Half were told that their work constituted exercise, half were notThe amount of exercise they got and a number of markers of health were measuredFour weeks after the initial recruitment, they were re-interviewed and re-examinedCrum & Langer, 2007

Crum & Langer, 2007

Overarching lessonIt is not the objective situation that is so powerful in determining thought and behavior, it is the subjective situation it is how people interpret the world that mattersSo next time you see choices or behavior that surprise you, think about what situation the person thought he/she was confronting

SummaryConstrual influences our preferences, perception, and satisfactionSeveral determinants of construalRecencyFrequency/familiarityContextMotivationTemporal perspective

Next time

Predicting preferences and satisfaction

***********The Concorde fallacy*