Preference Refinement After a Budget Contraction

Gretchen Ross, Pennsylvania State University, USA
Kurt Carlson, Georgetown University, USA
Margaret Meloy, Pennsylvania State University, USA
Across seven studies, we show that the trade-offs required to reconcile a budget contraction (of time, money or space) yield preference refinements that persist when the budget re-expands. We rule out anchoring and under-adjustment as a cause and discuss implications for brand loyalty.
[ to cite ]:
Gretchen Ross, Kurt Carlson, and Margaret Meloy (2017) ,"Preference Refinement After a Budget Contraction", in NA - Advances in Consumer Research Volume 45, eds. Ayelet Gneezy, Vladas Griskevicius, and Patti Williams, Duluth, MN : Association for Consumer Research, Pages: 852-853.