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Article Summary

Effects of Novel Attributes


on Product Evaluation
Group 8:
Manoj Kumar 20PGP158
Riya Bundela 20PGP161
Richa 20PGP172
Nilesh Kumar 20PGP184
Supreet Kler 20PGP187
Darshit Makwana 20PGP200
Research Question
• What effect will the addition of
novel attributes have on
consumer judgement and
choice?
• It focuses on two variables
product complexity and attribute
information discovered during
search
Introduction

New technological innovations introduces attributes that


are novel or unknown to consumers.

Though it is believed that addition of new


attributes improves product evaluation, but it is so only
in case of low-complexity products.

In case of high-complexity products addition of novel


attributes reduces the product evaluation due to negative
learning-cost

Negative effect of these attributes can remain even after


the consumers are given all information regarding benefits
of these attributes
Study 1: Theory

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.

Value Inference:
Novel attributes are communicated to consumers through various marketing channels and
then consumers makes inference of what value/benefit would the product provide them, and
this is supported by two researches.
1. consumers belief that marketers only advertise in order to improve their brand attitude in
consumers’ minds and hence they perceive introduction of novel attributes as something
which would provide additional value to them.
2. consumers make positive inference about newly introduced familiar attributes even if
they are irrelevant to them.
Study 1: Theory continued...

Learning cost inference:


• 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.
• high learning cost inferences are negatively valanced while the low learning
cost inferences are positively valanced as people are generally averse to the mental
efforts.

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 conclusion of product evaluation.
Study 1-Hypothesis
Presence of novel attributes in low complexity products improve
product evaluation, whereas product evaluation reduces in case of high
complexity products

Consumers encountering novel attributes in low complexity pay heed


to positive information encountered during search

Positive effects of novel attributes on low complexity products while be


more after the customers are exposed to ambiguous information
during search

Consumers encountering novel attributes in high complexity pay heed


to negative information encountered during search

Negative effects of novel attributes on high complexity products


while be more after the customers are exposed
to ambiguous information during search
Study 2: Theory

Examination the effect of novel attributes on the evaluation of high-complexity


products when benefit information is provided.

Benefit Information is coupled with evidence dis-conforming the learning cost


hypothesis
• Confirms the value hypothesis Disconfirms the competing learning-cost hypothesis
• Accept the value hypothesis and discard the learning-cost hypothesis.

Hypothesis:
the negative effect of novel attributes on the evaluation of high-complexity products will
be reversed by explicit benefit information.
Study 2: Theory continued...

Benefit Information is coupled with evidence conforming the learning


cost hypothesis
• Conflict between value and learning cost
• Negative effect of novel attributes on product evaluation will persist in the face
of explicit benefit information

Hypothesis:
the negative effect of novel attributes on the evaluation of high-complexity products
will persist in the face of explicit benefit information.
Study 2-Hypothesis

When data opposes learning cost, explicit


benefit information can reverse the
negative effect of novel
attributes on evaluation of high complexity
products.

When the data supports leaning


cost, explicit benefit information will have
no effect on the negative effect of
novel attributes on the evaluation of high-
complexity products
• The past studies suggest that the introduction of novel
attributes enhances product evaluation.
• However, the studies cite that the introduction of novel
attributes has a positive impact only in the case of low
Results complexity products.
• In High complexity products, the addition leads to a
and reduction in the evaluation as it is associated with
learning costs. Additionally, even if there is explicit
General information available the negative effect persists.
• The learning cost inferences can considerably reduce
Discussion the value inference aspect thereby reducing the
product evaluation.
• Through technological innovations, the complexity is
increased and as a result, the high risk associated
engenders extensive research activities, thus
increasing the level of technophobia. It can be
mitigated two ways.
Limitations and
Future Research
• Within-Subjects design was used to investigate the effect of
search, hence subjects were asked twice to rate the product
leading to greater elaboration of information.
• Due to this received inflated polarization effect.
• In future research the time period of the experiment
can extended such that double presentation of the product is
less salient.
• Several other avenues of research can be:
a) First that the future research value investigate
whether product experiences can prime value and
learning cost inferences.
b) Second , that the presentation of benefit information was
temporarily separated from the initial presentation of
novel attribute
c) Third, Invalid inferences can be corrected by concurrent
disclosures only under high-capacity conditions
THANK YOU

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