WBS Mentoring Programme 2011- Professor Nick Chater- presentation on Relativity of choice about consumer behaviours

1. RELATIVITY OF CHOICE Nick Chater Behavioural Science Group Warwick Business School

3. EVERYTHING IS RELATIVE

4. WHICH IS BRIGHTER, A OR B?

5. WHICH IS BRIGHTER, A OR B?

6. WHICH IS BRIGHTER, A OR B?

7. A UNIFORM GREY STRIP?

8. A UNIFORM GREY STRIP?

9. A UNIFORM GREY STRIP?

10. A UNIFORM GREY STRIP?

11. WHICH ORANGE CIRCLE IS BIGGER?

12. WHICH ORANGE CIRCLE IS BIGGER?

13. COMPARISON AND CONSUMPTION

14. PAYING VERY DIFFERENT AMOUNTS FOR VERY SIMILAR THINGS... £2 per cup 5p per cup

15. EVERYTHING IS RELATIVE... How much would you pay for 1 h of sitting (more) comfortably? Or 4h 50m of sitting (more) comfortably?

16. EVERYTHING IS RELATIVE... 2 nd class: £164.10 Business: £325.10 Second: £108.30 First: £229.90 How much would you pay for 1 h of sitting (more) comfortably? Or 4h 50m of sitting (more) comfortably? London to Edinburgh, return In each case, double the basic price: comparison in action

17. SO RANGE OF OPTIONS IS CRUCIAL Sharpe, K. M., Staelin, R., & Huber, J. (2008). Using extremeness aversion to fight obesity: Policy implications of context dependent demand. Journal of Consumer Research, 35, 406-422.

18. Choice of Drink Affected by Options

19. Some results: “ low” range “ high” range 15% more consumption!

23. IMPLICATION: THE SAMPLE IS CRUCIAL

24. IMPLICATION: THE SAMPLE IS CRUCIAL