The Framing of Buying Decisions

Research in behavioral decision theory suggests that people use reference points as the basis for judging/comparing the value of decision alternatives, but there has been little research addressing how decision reference points are formed. This paper posits and empirically demonstrates a conceptual framework of the reference point formation process for buying decisions. The basic concepts in the framework are supported, and the resulting reference points are shown to influence choice in a manner consistent with prospect theory.

[1]  Arch G. Woodside,et al.  An Inductive Model of Industrial Supplier Choice Processes , 1984 .

[2]  Baruch Fischhoff,et al.  Response Mode, Framing and Information-processing Effects in Risk Assessment , 1988 .

[3]  A. Tversky,et al.  The framing of decisions and the psychology of choice. , 1981, Science.

[4]  B. Fischhoff,et al.  Behavioral Decision Theory , 1977 .

[5]  John W Payne.  Contingent Decision Behavior: A Review and Discussion of Issues. , 1982 .

[6]  H. Helson,et al.  Adaptation-level theory , 1964 .

[7]  Y. Wind,et al.  Industrial buying and creative marketing , 1967 .

[8]  P. Schoemaker.  The Expected Utility Model: Its Variants, Purposes, Evidence and Limitations , 1982 .

[9]  A. Tversky,et al.  Prospect Theory : An Analysis of Decision under Risk Author ( s ) : , 2007 .

[10]  J. Bentham.  An Introduction to the Principles of Morals and Legislation , 1945, Princeton Readings in Political Thought.

[11]  R. Hogarth,et al.  BEHAVIORAL DECISION THEORY: PROCESSES OF JUDGMENT AND CHOICE , 1981 .

[12]  Duncan Delbert J. , 1968 .

[13]  Preferences Scientific.  Kahneman, Daniel, and Amos Tversky. , 1982 .

[14]  John W. Payne,et al.  Translation of Gambles and Aspiration Level Effects in Risky Choice Behavior , 1980 .

[15]  Stephen E. Fienberg,et al.  Discrete Multivariate Analysis: Theory and Practice , 1976 .

[16]  J. Shepard.  Technology, Division of Labor, and Alienation , 1973 .

[17]  E. Hanushek.  Statistical methods for social scientists , 1977 .

[18]  S. Siegel,et al.  Level of aspiration and decision making. , 1957, Psychological review.

[19]  H. Simon,et al.  A Behavioral Model of Rational Choice , 1955 .

[20]  Yoram Wind,et al.  Industrial Source Loyalty , 1970 .

[21]  G. Pitz,et al.  Judgment and decision: theory and application. , 1984, Annual review of psychology.

[22]  John W. Payne,et al.  Contingent decision behavior. , 1982 .