Are There Cognitive Dissonance Segments?

Cognitive Dissonance has interested consumer researchers for many years. Until recently, however, there has not been an accepted consumer dissonance scale. Using a recently developed scale, the present study examined the presence of dissonance segments in two customer samples, in which a significant minority of respondents experienced dissonance. Similar segments were found in both clusters, suggesting they may be common across a number of purchase contexts. Further investigation found some background differences, although a number of suggested relationships (e.g. price would affect dissonance) were not supported. Given the potential negative effects of dissonance, managers need to give this construct their attention.

[1]  Roger B. Myerson,et al.  Optimal Auction Design , 1981, Math. Oper. Res..

[2]  Gordon D. Richardson,et al.  The Voluntary Inclusion of Forecasts in the MD&A Section of Annual Reports , 1994 .

[3]  K. A. Ericsson,et al.  Verbal reports as data. , 1980 .

[4]  Gregory B. Waymire Earnings Volatility And Voluntary Management Forecast Disclosure , 1985 .

[5]  Currency and Interest-Rate Derivatives Use in US Firms , 1998 .

[6]  Robert H. Porter,et al.  Collusion in Auctions , 1989 .

[7]  Christopher C. Geczy,et al.  Why Firms Use Currency Derivatives , 1996 .

[8]  F. Menezes,et al.  An Experimental Investigation of a Hybrid Auction . ¤ , 2000 .

[9]  Randolph P. Beatty,et al.  INVESTMENT BANKING, REPUTATION, AND THE UNDERPRICING OF INITIAL PUBLIC OFFERINGS* , 1986 .

[10]  P. Klemperer Auction Theory: A Guide to the Literature , 1999 .

[11]  E. Harmon-Jones,et al.  Cognitive dissonance: Progress on a pivotal theory in social psychology. , 1999 .

[12]  G. Soutar,et al.  Consumer perceived value: The development of a multiple item scale , 2001 .

[13]  M. Bradbury,et al.  Derivative Financial Instrument Use in Australia , 2002 .

[14]  Stephen P. King,et al.  Contestability, Complementary Inputs and Contracting: The Case of Harbour Towage , 2003 .

[15]  W. H. Cummings,et al.  Cognitive Dissonance and Consumer Behavior: A Review of the Evidence , 1976 .

[16]  Roger G. Ibbotson,et al.  INITIAL PUBLIC OFFERINGS , 1988 .

[17]  Peter Tufano,et al.  Who Manages Risk? An Empirical Examination of Risk Management Practices in the Gold Mining Industry , 1996 .

[18]  Mary Jo Bitner,et al.  Servicescapes: The Impact of Physical Surroundings on Customers and Employees: , 1992 .

[19]  Anthony D. Miyazaki,et al.  Consumer Perceptions of Privacy and Security Risks for Online Shopping , 2001 .

[20]  Steven Furnell,et al.  Security implications of electronic commerce: a survey of consumers and businesses , 1999, Internet Res..

[21]  Stephen L Taylor,et al.  Prospectus Earnings Forecasts: Evidence And Explanations , 1993 .

[22]  A. Parasuraman,et al.  Alternative scales for measuring service quality: A comparative assessment based on psychometric and diagnostic criteria , 1994 .

[23]  L. Festinger,et al.  A Theory of Cognitive Dissonance , 2017 .

[24]  Clifford W. Smith,et al.  On the Determinants of Corporate Hedging , 1993 .

[25]  Joanne W. Rockness AN ASSESSMENT OF THE RELATIONSHIP BETWEEN US CORPORATE ENVIRONMENTAL PERFORMANCE AND DISCLOSURE , 1985 .

[26]  Richard E. Quandt,et al.  Nonlinear Methods in Econometrics. , 1973 .

[27]  B. Moldovanu,et al.  Auctions with Downstream Interaction Among Buyers , 2000 .

[28]  H. Demsetz The Structure of Ownership and the Theory of the Firm , 1983, The Journal of Law and Economics.

[29]  M. Harris,et al.  ALLOCATION MECHANISMS AND THE DESIGN OF AUCTIONS , 1981 .

[30]  David M. Mount,et al.  The analysis of a simple k-means clustering algorithm , 2000, SCG '00.

[31]  Myeong-Hyeon Cho,et al.  Ownership structure, investment, and the corporate value: an empirical analysis , 1998 .

[32]  F. Finn,et al.  The performance of unseasoned new equity issues-cum-stock exchange listings in Australia☆ , 1988 .

[33]  W. L. Beedles Asymmetry in Australian Equity Returns , 1986 .

[34]  Community Satisfaction with Policing: The Western Australian Experience , 1995 .

[35]  Joel E. Urbany,et al.  Difficulty of Pre-Purchase Quality Inspection: Conceptualization and Measurement , 1991 .

[36]  Assessing the use of derivatives as part of a risk-management strategy , 1999 .

[37]  Kenneth A. Froot,et al.  Risk Management: Coordinating Corporate Investment and Financing Policies , 1992 .

[38]  W. Guay The impact of derivatives on firm risk: An empirical examination of new derivative users 1 I gratefu , 1999 .

[39]  M. Bradbury,et al.  Empirical Evidence on the Corporate Use of Derivatives , 1996 .

[40]  Economics Letters , 2022 .

[41]  James S. Ang,et al.  The Administrative Costs of Corporate Bankruptcy: A Note , 1982 .

[42]  Hussein A. Warsame,et al.  Managing Public Impressions: Environmental Disclosures in Annual Reports , 1998 .

[43]  Roger J. Calantone,et al.  The Stability of Benefit Segments , 1978 .

[44]  Kenneth J. Martin,et al.  Executive stock ownership and performance tracking faint traces , 1997 .

[45]  Janice C. Y. How,et al.  PRELIMINARY: DO NOT QUOTE OR REPRODUCE WITHOUT CONSENT OF THE AUTHORS Ownership and Productive Efficiency: Evidence from Estonia* by , 1999 .

[46]  J. Asker,et al.  Bidding Rings , 2022 .

[47]  Stephen L Taylor,et al.  Australian IPO pricing in the short and long run , 1996 .

[48]  A. Shleifer,et al.  Management Ownership and Market Valuation: An Empirical Analysis , 1988 .

[49]  Kevin F. Rock Why new issues are underpriced , 1986 .

[50]  Jillian C. Sweeney,et al.  Cognitive Dissonance after Purchase: A Multidimensional Scale. , 2000 .

[51]  A. Elliot,et al.  On the motivational nature of cognitive dissonance: Dissonance as psychological discomfort. , 1994 .

[52]  J. F. Engel Are Automobile Purchasers Dissonant Consumers? , 1963 .

[53]  Sandeep Dayal,et al.  How to Build Trust Online , 2003 .

[54]  Hoa Nguyen,et al.  On The Determinants of Derivative Usage by Australian Companies , 2002 .

[55]  Elliot Aronson,et al.  The Theory of Cognitive Dissonance: A Current Perspective1 , 1969 .

[56]  R. Perloff,et al.  Influence of Product Preference on Dissonance Reduction , 1967 .

[57]  H. Winklhofer,et al.  Index Construction with Formative Indicators: An Alternative to Scale Development , 2001 .

[58]  Alexander Ljungqvist,et al.  Going Public: The Theory and Evidence on How Companies Raise Equity Finance , 2001 .

[59]  G. Monroe,et al.  Differential Information and the Underpricing of Initial Public Offerings: Australian Evidence , 1995 .

[60]  Cognitive Dissonance and Consumer Behavior , 1965 .

[61]  Paul R. Milgrom,et al.  Good News and Bad News: Representation Theorems and Applications , 1981 .

[62]  J. Drury,et al.  Self-image - is it in the bag? A qualitative comparison between "ordinary" and "excessive" consumers , 2000 .

[63]  René M. Stulz,et al.  Optimal Hedging Policies , 1984, Journal of Financial and Quantitative Analysis.

[64]  Sung-joon Yoon,et al.  The antecedents and consequences of trust in online-purchase decisions , 2002 .

[65]  Mary Jo Bitner,et al.  Services Marketing: Integrating Customer Focus Across the Firm , 1996 .

[66]  Geoffrey N. Soutar,et al.  A Benefit Segmentation of the Financial Planning Market , 1991 .

[67]  Tim Loughran,et al.  Why Don't Issuers Get Upset About Leaving Money on the Table in Ipos? , 2000 .

[68]  Baruch Lev,et al.  Some economic determinants of time-series properties of earnings , 1983 .

[69]  L. Parker,et al.  Corporate Social Reporting: A Rebuttal of Legitimacy Theory , 1989 .

[70]  Peter E. Earl,et al.  The Elgar Companion to Consumer Research and Economic Psychology , 1998 .

[71]  G. Soutar,et al.  The Role of Perceived Risk in the Quality-Value Relationship: A Study in a Retail Environment , 1999 .

[72]  William Vickrey,et al.  Counterspeculation, Auctions, And Competitive Sealed Tenders , 1961 .

[73]  G. Soutar,et al.  Determinants of Pro-Environmental Consumer Purchase Behaviour: Some Australian Evidence , 1994 .

[74]  R. Oliver Satisfaction: A Behavioral Perspective On The Consumer , 1996 .

[75]  R. Kohn,et al.  Nonparametric regression using Bayesian variable selection , 1996 .

[76]  S. Hunt Post-transaction Communications and Dissonance Reduction , 1970 .

[77]  Marc R. Reinganum Misspecification of capital asset pricing : Empirical anomalies based on earnings' yields and market values , 1981 .

[78]  D. W. Schumann,et al.  Comparing Consumers' Recall of Prepurchase and Postpurchase Product Evaluation Experiences , 1994 .

[79]  K. B. Murray,et al.  The impact of services versus goods on consumers’ assessment of perceived risk and variability , 1990 .

[80]  J. Riley Ex Post Information in Auctions , 1988 .

[81]  Gerald D. Bell The Automobile Buyer after the Purchase , 1967 .

[82]  Pradeep K. Korgaonkar,et al.  An Experimental Study of Cognitive Dissonance, Product Involvement, Expectations, Performance and Consumer Judgement of Product Performance , 1982 .

[83]  Roger G. Ibbotson,et al.  "Hot Issue" Markets , 1975 .

[84]  Benjamin E. Hermalin,et al.  The Effects of Board Composition and Direct Incentives on Firm Performance , 1991 .

[85]  Aroldo Rodrígues,et al.  The theory of cognitive dissonance: a current perspective , 1970 .

[86]  F. Hahn The Economics of missing markets, information, and games , 1990 .

[87]  Robert E. Verrecchia Endogenous proprietary costs through firm interdependence , 1990 .

[88]  P. Green,et al.  A preliminary study of optimal variable weighting in k-means clustering , 1990 .

[89]  J. Young,et al.  The aftermarket performance of small firm initial public offerings , 1988 .

[90]  Paul G. Patterson,et al.  Services marketing : an Asia-Pacific perspective , 2001 .

[91]  A. Parasuraman,et al.  The Behavioral Consequences of Service Quality , 1996 .

[92]  S. Oshikawa Consumer pre-decision conflict and post-decision dissonance. , 1970, Behavioral science.

[93]  G. W. Milligan,et al.  A NOTE ON PROCEDURES FOR TESTING THE QUALITY OF A CLUSTERING OF A SET OF OBJECTS , 1980 .

[94]  J. Wiseman,et al.  An evaluation of environmental disclosures made in corporate annual reports , 1982 .

[95]  Sang Uk Lee,et al.  Integrated Position Estimation Using Aerial Image Sequences , 2002, IEEE Trans. Pattern Anal. Mach. Intell..

[96]  Tim Loughran,et al.  Initial public offerings: International insights , 1994 .

[97]  Girish N. Punj,et al.  Cluster Analysis in Marketing Research: Review and Suggestions for Application , 1983 .

[98]  R. Peterson,et al.  PRACTICAL SIGNIFICANCE AND PARTITIONING VARIANCE IN DISCRIMINANT ANALYSIS , 1976 .

[99]  Del I. Hawkins,et al.  A Field Test of the Relationship between Cognitive Dissonance and State Anxiety , 1978 .

[100]  Shorey Peterson,et al.  The Modern Corporation and Private Property. , 1933 .

[101]  P. Arabie,et al.  Cluster analysis in marketing research , 1994 .

[102]  Robert J. Holloway,et al.  An experiment on Consumer Dissonance , 1967 .

[103]  H. Servaes,et al.  Analyst Following of Initial Public Offerings , 1997 .

[104]  John Mcconnell,et al.  Additional evidence on equity ownership and corporate value , 1990 .

[105]  Joel B. Cohen,et al.  The Dissonance Model in Post-Decision Product Evaluation , 1970 .

[106]  J. D. Brown Understanding research in second language learning : a teacher's guide to statistics and research design , 1989 .

[107]  Paul E. Green,et al.  A Computational Study of Replicated Clustering with an Application to Market Segmentation , 1991 .

[108]  Jesse A. Schwartz,et al.  Collusive Bidding in the FCC Spectrum Auctions , 2001 .

[109]  Russell J. Lundholm,et al.  CROSS- SECTIONAL DETERMINANTS OF ANALYST RATINGS OF CORPORATE DISCLOSURES , 1993 .

[110]  P. Cramton,et al.  Why Every Economist Should Learn Some Auction Theory * , 2000 .

[111]  J. Krishnan,et al.  The Differentiation of Quality among Auditors: Evidence from the Not‐for‐Profit Sector , 2000 .

[112]  J. Laffont,et al.  A Theory of Incentives in Procurement and Regulation , 1993 .

[113]  R. Ball,et al.  Risk and Return from Equity Investments in the Australian Mining Industry: January 1958 — February 1979 , 1980 .

[114]  H. Demsetz,et al.  Ownership Structure and Corporate Performance , 2001 .

[115]  Dennis E. Logue,et al.  ON THE PRICING OF UNSEASONED EQUITY ISSUES: 1965-1969 , 1973 .

[116]  Douglas J. Skinner WHY FIRMS VOLUNTARILY DISCLOSE BAD-NEWS , 1994 .

[117]  Geoffrey N. Soutar,et al.  Information Search for a Professional Service , 1995 .

[118]  F. Menezes Auctions of Identical Objects with Single-Unit Demands: a Survey , 1998 .

[119]  Maureen F. McNichols,et al.  Discretionary Disclosure and External Financing , 1995 .

[120]  René M. Stulz,et al.  The Determinants of Firms' Hedging Policies , 1985, Journal of Financial and Quantitative Analysis.

[121]  Peter M. Clarkson,et al.  Evidence That Management Discussion and Analysis (MD&A) is a Part of a Firm's Overall Disclosure Package* , 1999 .

[122]  S. Thompson,et al.  Preferences for involvement in medical decision-making: situational and demographic influences. , 1993, Patient education and counseling.

[123]  Marc S. Robinson,et al.  Collusion and the Choice of Auction , 1985 .

[124]  Roger B. Myerson,et al.  Game theory - Analysis of Conflict , 1991 .

[125]  G. Phillips,et al.  Financing Policy, Basis Risk, and Corporate Hedging: Evidence from Oil and Gas Producers , 2000 .

[126]  Michael J. Brusco,et al.  A Simulated Annealing Heuristic for a Bicriterion Partitioning Problem in Market Segmentation , 2002 .

[127]  G. Gannon,et al.  Ownership Structure and Corporate Performance: Australian Evidence , 2007 .

[128]  Flavio M. Menezes,et al.  Corruption And Auctions , 2001 .

[129]  P. Tufano HBS-JFE conference volume: complementary research methods , 2001 .

[130]  H. Demsetz,et al.  The Structure of Corporate Ownership: Causes and Consequences , 1985, Journal of Political Economy.

[131]  P. Klemperer What Really Matters in Auction Design , 2001 .

[132]  B. Lev,et al.  VOLUNTARY FORECAST DISCLOSURE, NONDISCLOSURE, AND STOCK-PRICES , 1990 .