Suppose you're trying to impress a loved one with a generous gift this holiday season, says Kimberlee Weaver, assistant professor of marketing in the Pamplin College of Business. One option is to buy them a luxury cashmere sweater. A second option is to add in a $10 gift card.
If their budget allows, most gift givers would choose the second option, as it comprises two gifts — one big, one small, Weaver says. Ironically, however, the gift recipient is likely to perceive the cashmere sweater alone as more generous than the combination of the same sweater and gift card. "The gift giver or presenter does not anticipate this difference in perspectives and has just cheapened the gift package by spending an extra $10 on it."
Weaver is part of a research team that recently discovered, through a series of studies, what the team has called the "Presenter's Paradox." The paradox arises because gift givers and gift recipients have different perspectives, Weaver says. Gift givers follow a "more-is-better" logic; recipients evaluate the overall package.
"People who evaluate a bundle, such as a gift package, follow an averaging strategy, which leads to less favorable judgments when mildly favorable pieces (the gift card) are added to highly favorable pieces (the sweater). The luxury sweater represents a generous 'big' gift. Adding on a 'little' gift makes the total package seems less big."
The same contradictory effect can be found in other situations, says Weaver, whose research article, "The Presenter's Paradox," co-authored with Stephen Garcia and Norbert Schwarz of the University of Michigan, has been accepted for publication in the Journal of Consumer Research.
"People who present a bundle of information assume that every favorable piece adds to their overall case and include it in the bundle they present," she says. However, notes Garcia, associate professor of psychology and organizational studies at the University of Michigan, "this strategy backfires, because the addition of mildly favorable information dilutes the impact of highly favorable information in the eyes of evaluators. Hence, presenters of information would be better off if they limited their presentation to their most favorable information — just as gift givers would be better off to limit their present to their most favorite gift."
Weaver and her co-authors found that the paradox was strongly evident in seven studies across many product domains, from bundles of music to hotel advertisements, scholarships, and even "negative" items such as penalty structures.
When asked to design a penalty for littering, for example, those who were put in charge preferred a penalty that comprised a $750 fine plus 2 hours of community service over a penalty that comprised only the $750 fine. However, perceivers evaluated the former penalty as less severe than the latter, Weaver says. "Adding a couple of hours of community service made the overall penalty appear less harsh and undermined its deterrence value."
The discovery of the Presenter's Paradox sheds new light on how to best present information, says Weaver. "Whether it is a public relations expert pondering which reviews to include on a book jacket, a music producer considering which songs to include in a music album, or a legal team building up arguments for a case, they all face the important task of deciding what information to include in their presentations. So do consumers who apply for a job and homeowners who try to sell their house."
All of them, she says, run the risk of inadvertently diluting the very message they seek to convey by their efforts to strengthen it. "Fortunately, there is a simple remedy: take the perspective of the evaluator and ask yourself how the bundle will appear to someone who will average across its components. Doing so will alert you to the fact that others will not always share your sense that more is better."
"Prompting consumers to consider the overall picture entices them to adopt a holistic perspective, which allows them to correctly anticipate evaluators' judgments," says Schwarz, professor of marketing and psychology at the University of Michigan. "But when left to their own devices, presenters are unlikely to notice that evaluators do not share their more-is-better rule."
Sookhan Ho | EurekAlert!
Rutgers-led innovation could spur faster, cheaper, nano-based manufacturing
14.02.2018 | Rutgers University
New study from the University of Halle: How climate change alters plant growth
12.01.2018 | Martin-Luther-Universität Halle-Wittenberg
For the first time, a team of researchers at the Max-Planck Institute (MPI) for Polymer Research in Mainz, Germany, has succeeded in making an integrated circuit (IC) from just a monolayer of a semiconducting polymer via a bottom-up, self-assembly approach.
In the self-assembly process, the semiconducting polymer arranges itself into an ordered monolayer in a transistor. The transistors are binary switches used...
Breakthrough provides a new concept of the design of molecular motors, sensors and electricity generators at nanoscale
Researchers from the Institute of Organic Chemistry and Biochemistry of the CAS (IOCB Prague), Institute of Physics of the CAS (IP CAS) and Palacký University...
For photographers and scientists, lenses are lifesavers. They reflect and refract light, making possible the imaging systems that drive discovery through the microscope and preserve history through cameras.
But today's glass-based lenses are bulky and resist miniaturization. Next-generation technologies, such as ultrathin cameras or tiny microscopes, require...
Scientists from the University of Zurich have succeeded for the first time in tracking individual stem cells and their neuronal progeny over months within the intact adult brain. This study sheds light on how new neurons are produced throughout life.
The generation of new nerve cells was once thought to taper off at the end of embryonic development. However, recent research has shown that the adult brain...
Theoretical physicists propose to use negative interference to control heat flow in quantum devices. Study published in Physical Review Letters
Quantum computer parts are sensitive and need to be cooled to very low temperatures. Their tiny size makes them particularly susceptible to a temperature...
15.02.2018 | Event News
13.02.2018 | Event News
12.02.2018 | Event News
20.02.2018 | Life Sciences
20.02.2018 | Medical Engineering
20.02.2018 | Physics and Astronomy