The Impact of Outcome Elaboration on Susceptibility to Contextual and Presentation Biases

Journal of Marketing Research, Vol. 46, pp. 764-776, December 2010

14 Pages Posted: 11 Feb 2011

See all articles by Gergana Y. Nenkov

Gergana Y. Nenkov

Boston College - Carroll School of Management

Jeffrey Inman

University of Pittsburgh - Katz Graduate School of Business

John Hulland

University of Western Ontario - Richard Ivey School of Business

Maureen Morrin

Temple University - Fox School of Business and Management; Temple University - Department of Marketing and Supply Chain Management

Date Written: December 1, 2010

Abstract

The authors examine an important anomaly in investment behavior - namely, the tendency to fall prey to the effects of contextual and presentation biases, which emerge when people make different decisions as a function of how information is presented to them. They also identify an important factor that moderates these effects. The results from four studies show that investors with a stronger tendency to engage in pre-decision outcome elaboration are less susceptible to various contextual and presentation biases and are more likely to make consistent investment choices. Furthermore, the authors find that encouraging pre-decision elaboration on both the potential benefits and the potential risks of investing helps investors who tend not to engage in such elaboration become less influenced by peripheral cues, such as information framing and presentation mode. The findings offer implications for decision research and for the design, presentation, and communication of financial products.

Keywords: Elaboration on Potential Outcomes, Context and Framing Effects, Investment Decision Making, Personal Finance, Morningstar Style Box

Suggested Citation

Nenkov, Gergana Y. and Inman, Jeffrey and Hulland, John and Morrin, Maureen, The Impact of Outcome Elaboration on Susceptibility to Contextual and Presentation Biases (December 1, 2010). Journal of Marketing Research, Vol. 46, pp. 764-776, December 2010, Available at SSRN: https://ssrn.com/abstract=1756889

Gergana Y. Nenkov (Contact Author)

Boston College - Carroll School of Management ( email )

140 Commonwealth Avenue
Chestnut Hill, MA 02467
United States

Jeffrey Inman

University of Pittsburgh - Katz Graduate School of Business ( email )

Pittsburgh, PA 15260
United States

John Hulland

University of Western Ontario - Richard Ivey School of Business ( email )

1151 Richmond Street North
London, Ontario N6A 3K7
Canada

Maureen Morrin

Temple University - Fox School of Business and Management ( email )

Philadelphia, PA 19122
United States

Temple University - Department of Marketing and Supply Chain Management ( email )

Philadelphia, PA 19122
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
44
Abstract Views
650
PlumX Metrics