Research Article
Choice as Loss: Diversity Seeking in Sequential Multiple Product Choices to Reduce the Loss of Unchosen Alternatives
Hankuk University of Foreign Studies
Published: January 2016 · Vol. 45 No. 6 · pp. 1901-1928
DOI: https://doi.org/10.17287/kmr.2016.45.6.1901
Full Text
Abstract
Previous research on choice variety has focused on sequential multiple product selections aimed at reducing anticipated changes in preferences or satiation, leaving unexplored the influence of the relative loss perceived by consumers regarding non-chosen alternatives on variety in sequential multiple product selection. Accordingly, this study approached the size of available alternatives from the concept of loss and sought to examine choice variety as a decision-making strategy to reduce the perceived loss arising from non-chosen alternatives. Through three experiments, it was confirmed that as the discrepancy between the target quantity and the size of the choice set increased, consumers focused more on non-chosen alternatives and made sequential decisions aimed at reducing the loss that would arise from those non-chosen alternatives. Additionally, it was found that loss perception regarding non-chosen alternatives decreased as the target quantity available for selection increased. Finally, it was confirmed that loss perception regarding non-chosen alternatives is triggered not only by the quantitative size of the alternatives but also by qualitative structural differences among alternatives, and consequently, consumers make diverse choices to reduce the loss from non-chosen alternatives. This study has academic significance in extending prior research, which explained the basis of choice variety through anticipated satiation or preference changes, by offering an explanation based on loss recovery from non-chosen alternatives. Furthermore, the findings of this study have practical applicability in designing multiple purchase inducement strategies such as "pick and fill" or "2+2" promotions, particularly in determining the target purchase quantity and the size and structure of alternatives to be presented.
