Consumer Decision-Making
Marketing Management
New Product Development
The principle of loss aversion is thought to explain a wide range of anomalous phenomena involving tradeoffs between losses and gains. In this article, I show that the anomalies loss aversion was introduced to explain - the risky bet premium, the endowment effect, and the status quo bias - are characterized not only by a loss/gain tradeoff, but by a tradeoff between the status quo and change; and, that a propensity towards the status quo in the latter tradeoff is sufficient to explain these phenomena. Moreover, I show that two basic psychological principles - (1) that motives drive behavior; and (2) that preferences tend to be fuzzy and ill-defined - imply the existence of a robust and fundamental propensity of this sort. Thus, a loss aversion principle is rendered superfluous to an account of the phenomena it was introduced to explain.
Consumption experiences typically involve inputs from multiple sensory modalities. However, consumer research has seldom investigated how multiple sensory inputs may interact to affect such experiences. This research examines whether inputs from one sensory modality can influence the experience of a stimulus in another sensory modality. In a series of experiments, we find that shapes (jagged versus rounded) or lighting (bright versus dim) presented in temporal proximity to a gustatory stimulus influences participants’ taste judgments as well as consumption. These findings suggest a correspondence between sensory stimuli that are typically thought to belong to categorically distinct sensory modalities.
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Teaching Materials
Course Syllabus Marketing 465 Winter 2008-2009
This course counts toward the following majors: Entrepreneurship & Innovation, Marketing, Marketing Management
This course answers the manager's question: "What do I need to know and do as a marketer in order to develop a successful new product?" Students will gain a firm understanding of the steps necessary to bring a new product from concept to successful launch. The course covers fundamental marketing principles that are as valuable in developing and marketing the newest microchip as they are for the latest chili-flavored tortilla potato chip. The course is case-based and example driven. Illustrations and discussions will encompass consumer packaged goods, high tech and consumer electronics, biotechnology, agribusiness, entertainment, B2B, international and many other industries, in contexts that range from garage startups to Fortune 100 companies. The course content will help those pursuing careers in brand management, marketing, project management, marketing research, new product and service consulting, venture capital, and entrepreneurial ventures. The emphasis on specific techniques and application settings varies somewhat by instructor; students are encouraged to request a copy of the course syllabus from the instructor prior to registering.
Prerequisite: MKTG-430.
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