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Consumers' budgets are influenced by the temporal frame used for the budget period. Budgets planned for the next month are much lower than recorded expenses , while those for the next year are closer to recorded expenses (study 1). The difficulty of estimating budgets for the next year imparts low confidence and leads to upward adjustment. When consumers'(More)
We argue that people intuitively distinguish epistemic (knowable) uncertainty from aleatory (random) uncertainty and show that the relative salience of these dimensions is reflected in natural language use. We hypothesize that confidence statements (e.g., “I am fairly confident,” “I am 90% sure,” “I am reasonably certain”) communicate a subjective(More)
P eople view uncertain events as knowable in principle (epistemic uncertainty), as fundamentally random (aleatory uncertainty), or as some mixture of the two. We show that people make more extreme probability judgments (i.e., closer to 0 or 1) for events they view as entailing more epistemic uncertainty and less aleatory uncertainty. We demonstrate this(More)
People view uncertain events as either knowable in principle (epistemic uncertainty), as fundamentally random (aleatory uncertainty), or as some mixture of the two. We show that people make more extreme probability judgments (i.e., closer to 0 or 1) for events they view as entailing more epistemic uncertainty and less aleatory uncertainty. We demonstrate(More)
In one laboratory study and one field study conducted with a large, representative sample of respondents, we show that seemingly innocuous questions that precede a conjoint task, such as demographic and usage-related screening questions can alter the price sensitivities recovered from the main conjoint task. The findings demonstrate that whether these prior(More)
their helpful comments on earlier versions of the manuscript. 3 Changes in consumers' category width (the level of coarseness-fineness with which people categorize objects) alter their decision making processes, which in turn alter their categorizing and purchasing behavior. Participants manipulated to be broad categorizers base their decisions on fewer,(More)
Explicit suggestions by retailers or implicit contextual factors can highlight either similarities or differences in product comparisons. In five laboratory studies, the authors demonstrate that these highlighted comparison frames do not single-handedly dictate consumer's attention to similarities versus differences. The authors identify a key factor,(More)