The influence of suggestions of reference groups in the compromise effect

Context effect researchers who have examined the mechanism underlying the compromise effect suggest that justification is a critical factor leading people to select the compromise option, thus implying the importance of interpersonal influence on consumer choice. However, little research has empirically investigated the link between the compromise effect and interpersonal influence. This study addresses that gap in the literature by analyzing whether reference group suggestions determine the strength of the compromise effect. Three experiments test the associated hypotheses. The results show that suggestions made by reference group members have a significant influence on the magnitude of the compromise effect.