Do Consumers Prefer Offers that are Easy to Compare? An Experimental Investigation

39 Pages Posted: 21 Sep 2012 Last revised: 11 May 2015

See all articles by Paolo Crosetto

Paolo Crosetto

Grenoble Applied Economics Laboratory

Alexia Gaudeul

Joint Research Center of the European Commission

Multiple version iconThere are 3 versions of this paper

Date Written: September 20, 2012

Abstract

Firms can exploit consumers' mistakes when facing complex purchasing decision problems but Gaudeul and Sugden (2012) argue that if at least some consumers disregard offers that are difficult to compare with others then firms will be forced into adopting common ways to present their offers and thus make choice easier. We design an original experiment to check whether consumers’ indeed favor those offers that are easy to compare with others in a menu. A sufficient number of subjects do so with sufficient intensity for offers presented in common terms to generate higher revenues than offers that are expressed in an idiosyncratic way.

Keywords: Bounded Rationality, Cognitive Limitations, Standards, Consumer Choice, Experimental Economics, Heuristics, Pricing Formats, Spurious Complexity

JEL Classification: C91, D18, D83, L13

Suggested Citation

Crosetto, Paolo and Gaudeul, Alexia, Do Consumers Prefer Offers that are Easy to Compare? An Experimental Investigation (September 20, 2012). Available at SSRN: https://ssrn.com/abstract=2149615 or http://dx.doi.org/10.2139/ssrn.2149615

Paolo Crosetto

Grenoble Applied Economics Laboratory ( email )

BP 47
38040 Grenoble
France

Alexia Gaudeul (Contact Author)

Joint Research Center of the European Commission ( email )

Via E. Fermi 2749
Brussels, B-1049
Belgium

HOME PAGE: http://https://knowledge4policy.ec.europa.eu/behavioural-insights/about_en

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