f3badd75_trepreneurship___Bauer_College__Topic
[Date] March 11 [Speaker] Neeraj Arora Wisconsin-Madison [Topic] 
"Non-Compensatory Dyadic Choices" Click here to read Abstract While literature in marketing shows that individuals often use non-compensatory decision rules, existing research on dyadic or group choice is exclusively based on compensatory models. In this paper the authors present a dyadic choice model that helps investigate both compensatory and non-compensatory aspects of the joint decision process. Based on this modeling framework the authors present a set of dyadic decision processes (DDPs) to capture contexts where dyad members are in concordance or discordance about which alternatives to consider. They empirically investigate the implications of different DDPs on outcomes such as decision efficiency and dyadic welfare. The methodological approach merges choice experiments with Bayesian statistical models to uncover nuances of the non-compensatory dyadic choice process. Data were collected using a multi-phase nationwide study of 265 husband and wife dyads purchasing three different consumer electronics products: flat-panel televisions, digital cameras, and laptop computers. Results across the three categories indicate that both concordant and discordant dyads exist. Among concordant dyads, the non-compensatory dyads make quicker decisions that result in higher dyadic welfare than compensatory dyads. Among discordant dyads, those that restrict their consideration set make quicker decisions that result in higher dyadic welfare than those that expand their consideration set. Interestingly, product knowledge and experience are found to be inextricably related to dyadic screening patterns. These findings have important implications for both buyers and sellers.
Spring 11 Seminars - Dept. of Marketing & Entrepreneurship | Bauer College
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