Study 1 - Theory

Previously done researches shows that individuals make inferences about the novel attributes
based on the limited information only. As per the cost benefit framework of judgement making,
people make decision based on the weights assigned to the cost and benefit of the task at
hand. In this case also we focus on benefit related inference (Value Inference) and cost related
inference (Learning-cost inference) about novel attributes of products.

Value Inference: Novel attributes are communicated to consumers through various marketing
channels such as advertisements, point-of-purchase, display boards, packagings etc. and then
consumers makes inference of what value/benefit would the product provide them and this is
supported by two researches. First, consumers belief that marketers only advertise in order to
improve their brand attitude in consumers’ minds and hence they percieve introduction of novel
attributes as something which would provide additional value to them. Second, consumers
make positive inference about newly introduced familier attributes even if they are irrelevant to
them.

Learning cost inference: The cost-benefit framework says that consumers can also make
negative inference about novel attributes if the cognitive efforts required to understand the new
novel attributes is high as in case of complex products e.g., computers. The high learning cost
inferences are negatively valenced while the low learning cost inferences are positively
valenced as people are generally averse to the mental efforts.

As consumers make these two types of inferences i.e., Value and Cost inferences, the effect of
novel attributes would be different in both cases. In case of low-complexity products, consumers
make high-value and low-learning cost inference about novel attributes and thus addition of
novel attributes in low-complexity products increases the product evaluation. But in case of
high-complexity products the impact of addition of novel attributes is less clear. As per previous
research in domain of consumer behaviour, the impact of negative information is more than the
positive information. And thus consumers are likely to rely more on the negative learning-cost
inference than the positive value inference about novel attributes in case of high complexity
products consequently reducing the product evaluation.

However, these two inferences might not be the only factors impacting the product evaluation.
After making inferences consumers might search for more information and then finally
compares the initial inferences with new searches and arrive at final conclusion of product
evaluation.
 Study 2 – Theory

This study talks about the effects of novel attributes on product evaluation when consumer has
the benefit information about that product under two conditions:

A. When evidence disconfirms the learning-cost hypothesis

B. When evidence confirms the learning-cost hypothesis

In the former condition i.e., when evidence disconfirms the learning-cost hypothesis then
customers straightforwardly reject the learning-cost hypothesis and accept the value hypothesis
consequently leading to positive effect of addition of novel attributes.

But in latter condition i.e., when evidence confirms the learning-cost hypothesis then there is
conflict between value and cost inferences. And since the evidence information doesn’t provide
relative advantage to any hypothesis, the negative impact of learning-cost hypothesis would
exist dominantly and would lead to negative effect on product evaluation even when customer
has benefit information.

Also, it takes much more information to arrive at a conclusion that product has positive traits but
very less information to conclude that product has negative traits.