Unobserved Heterogeneity as an Alternative Explanation for 'Reversal' Effects in Behavioral Research

  title={Unobserved Heterogeneity as an Alternative Explanation for 'Reversal' Effects in Behavioral Research},
  author={J. Wesley Hutchinson and Wagner A. Kamakura and John G. Lynch},
  journal={MKTG: Methodological Issues in Consumer Research (Topic)},
Behavioral researchers use analysis of variance (ANOVA) tests of differences between treatment means or chi-square tests of differences between proportions to provide support for empirical hypotheses about consumer behavior. These tests are typically conducted on data from “between-subjects” experiments in which participants were randomly assigned to conditions. We show that, despite using internally valid experimental designs such as this, aggregation biases can arise in which the… 

BANOVA: Bayesian Analysis of Experiments in Consumer Psychology

This article introduces Bayesian extension of ANOVA for the analysis of experimental data in consumer psychology. The approach, called BANOVA, addresses some common challenges that consumer

Environments, unobserved heterogeneity, and the effect of market orientation on outcomes for high-tech firms

The interaction between market orientation and facets of the environment is theoretically compelling and is hence the primary interaction studied in market orientation literature. Yet empirical

Editorial: Errors in the Variables, Unobserved Heterogeneity, and Other Ways of Hiding Statistical Error

One research function is proposing new scientific theories; another is testing the falsifiable predictions of those theories. Eventually, sufficient observations reveal valid predictions. For the

Alternative Models

The compromise effect denotes the finding that brands gain share when they become the intermediate rather than an extreme option in a choice set (Simonson 1989). Despite the robustness and importance


Computing the average 'effect', the difference in means of the dependent variable between conditions, is by far the most common way of analyzing experimental data. In many settings, however, the

Heterogeneity in the Consistency of Best–Worst Scale Responses

Theory and external validity

Winer (1999 [this issue]) proposes that external validity concerns require more attention in theoretical research. The author argues that one cannot “enhance” external validity by choosing one method

Cognition and Individual Differences in the Newsvendor Problem : Behavior Under Dual Process Theory

Previous research has shown that individuals systematically and persistently deviate from the profit maximizing quantity when solving a newsvendor problem. This research posits that Dual Process

Mean and Variability Effects in Decision Framing

Framing a decision as a rejection can lead consumers to form preferences that are different from those that they would form if that same decision were framed as a choice. These differences in



Within-subjects designs: To use or not to use?

This article considers the several factors pertinent to deciding whether a withinor between-subjects design should be employed for a research application. A general principle favoring within-subjects

Hypothesized and Confounded Explanations in Theory Tests: A Bayesian Analysis

Traditional views of research methodology hold that little, if any, useful information can be obtained from one or more confounded studies, unless the results from one study rule out or falsify an

Uniqueness Issues in the Decompositional Modeling of Multiattribute Overall Evaluations: An Information Integration Perspective

The author reviews how methods developed within the information integration paradigm can be used to study consumers’ overall evaluations of choice alternatives. Methods are presented for determining

The Choice Theory Approach to Market Research

This paper surveys economic choice theory, stressing developments that permit use of data from psychometric and conjoint experiments to produce market demand forecasts. Alternatives to the widely

The Role of External Validity in Theoretical Research

Calder, Phillips, and Tybout (1982) have criticized my analysis of the role of external validity in theoretical consumer research (Lynch 1982). In particular, they disputed my argument that

A Rational Reconstruction of the Compromise Effect: Using Market Data to Infer Utilities

This article explores the possibility that consumers use market data to make inferences about product utilities. The argument is made by means of an example based on the "compromise effect" found in

Investigating Heterogeneity in Brand Preferences in Logit Models for Panel Data

In analyzing panel data, the issue of heterogeneity across households is an important consideration. If heterogeneity is present but is ignored in the analysis, it will result in biased and

Self-generated validity and other effects of measurement on belief, attitude, intention, and behavior.

Drawing from recent developments in social cognition, cognitive psychology, and behavioral decision theory, we analyzed when and how the act of measuring beliefs, attitudes, intentions, and behaviors

Asymmetric Decoy Effects on Lower-Quality versus Higher-Quality Brands: Meta-analytic and Experimental Evidence

Prior research demonstrates that adding decoys to choice sets can increase choice shares of brands similar to decoys while reducing shares of brands dissimilar to decoys. Such effects have been