Past research has shown the robustness of egocentric anchoring or false consensus effects (e.g., Naylor, Lamberton, and Norton; Ross, Greene, and House) primarily in situations where consumers adopt a cooperative or neutral stance toward one another. However, competition among consumers is a...

This research explores how loyal customers, those who have invested relatively high amounts of effort with a firm in the form of past purchases, respond to randomly determined marketing outcomes (e.g., winning a prize in a random drawing). Across five studies, participants exhibit a “lucky...

Previous theories have suggested that consumers will be happier if they spend their money on experiences such as travel as opposed to material possessions such as automobiles. We test this experience recommendation and show that it may be misleading in its general form. Valence of the outcome...