Comparison Neglect in Upgrade Decisions

Abstract

To properly evaluate a potential product upgrade, consumers should compare the upgraded option with the product they already own in order to assess the upgrade’s added utility. However, although consumers explicitly and spontaneously acknowledge the importance of comparing the upgrade to the status quo, we find that they often fail to do so. Consequently, they often buy product upgrades that they would not have bought had they followed their own advice. Five experiments, involving both real and hypothetical upgrade decisions, show that even when the status quo option is represented in the decision context, if consumers are not explicitly prompted to reflect on it or compare it to the upgraded option, they often do not compare it to the upgrade and consequently show an elevated likelihood of upgrading. The experiments suggest that this “comparison neglect” increases upgrade likelihood by making people overlook the similarities between the upgraded and status quo options and that it persists even when deliberation effort is high. The findings have important implications for theory, marketing practice, and consumer welfare.

Keywords: status quo bias, comparison, product upgrades, consumerism, focalism