Executive summary of “Effects of intuitive judgments on consumer assortment evaluations”

Executive summary of “Effects of intuitive judgments on consumer assortment evaluations”

Article Type: Executive summary and implications for managers and executives From: Journal of Consumer Marketing, Volume 32, Issue 3

This summary has been provided to allow managers and executives a rapid appreciation of the content of the article. Those with a particular interest in the topic covered may then read the article in toto to take advantage of the more comprehensive description of the research undertaken and its results to get the full benefit of the material present.

Product variety is regarded as a critical factor in the success of retail establishments. Retailers therefore generally acknowledge the need to offer an assortment rich in the number of both product types and brands. Consumers desire flexibility, and their preferences are unlikely to remain stable over time. The existence of variety-seeking tendencies among some consumers further emphasizes that product assortment is a critical issue. According to certain researchers, the key for retailers is to find an optimum level of assortment that offers variety without reaching a point where the consumer feels overwhelmed by the amount of choices available.

Constraints on the retailer and environmental factors are seen as helping to determine assortment decisions. Some analysts differentiate between real and perceived variety and argue that consumer perceptions are likely to be even more significant in this respect. Several earlier studies deemed that three factors determine how a product assortment is perceived. To be viewed favorably by consumers, options included in the assortment must be seen to be distinctive and consistent. How an assortment is organized is likewise important. The crucial element here is consumer belief that the products and brands are displayed in a logical manner. Piris and Guibert conclude from these and other studies that organization combines with variety to have the strongest impact on consumer evaluation of assortments.

It is consequently purported that ascertaining which individual consumer dimensions most influence these perceptions is of great importance. Identification of such cues can provide valuable insight of how their attitudes and purchase intentions regarding a specific assortment are formed.

Work in this area has forwarded various suggestions. Familiarity within a certain product category is regarded as impacting on perceptions. Some observers use comparable terms like previous knowledge and expertise to make a similar point. It is argued that relevant experience enables a consumer to perceive a greater degree of variety in an assortment.

Perceptions of a product assortment might also be influenced by the “thinking mode” of consumers. However, the authors point out the dearth of relevant investigations in this area. It has been suggested previously that consumer decisions are less “optimal and rational” and more the result of using “biases and heuristics”. The same author subsequently identified two distinct modes of thinking:

1. Intuitive, whereby decisions are made swiftly without any serious contemplation or effort. People adopting this approach tend to rely on appropriate skills or capabilities. Intuition can be based on heuristics and expertise.

2. Deliberative: In this form, consumers are normally more measured and analytical. They exert greater effort and take longer before reaching their decision.

Different interpretations of intuitive processing prevail. The view of certain scholars holds that intuition is a consequence of learning and developing the necessary abilities to some degree. Some use the term “recognition memory” to describe an important element of “intuitive expertise”. The example of leading chess players having the capacity to consider a multitude of potential positions during games is cited to illustrate the point.

Based on current evidence, Piris and Guibert believe that it may be possible to identify the thinking mode adopted by a consumer by the time taken to choose and their level of expertise in the product category. The authors purport that:

• high expertise combined with short perceived time suggests an expertise-based intuitive thinking style;

• consumers probably engage in intuitive thinking based on heuristics when expertise is low and time short; and

• a long perceived time likely signifies a deliberative thinking mode, whatever their expertise level.

The authors thus propose that an individual’s normal mode of thinking will shape their attitude toward product assortments in retail outlets.

For the current study, 168 consumers were shown three pictures of supermarket product assortments for rice, tea and dishwashing liquids. These categories were chosen on the assumption that frequent purchasing of such items was likely to involve different decision modes. Intuition was thought likely to be evident in situations where people needed to spend less time shopping. Conducting the experiment in a real shopping environment was felt impractical due to probable distractions and the lower likelihood of shoppers being willing to participate in the survey.

Respondents were asked to choose a product within each assortment and then complete a questionnaire containing items relating to variety perceptions, organization perceptions, attitude toward the assortment, expertise, perceived time spent choosing the product and purchase intention. Answers were used to categorize subjects into the three decision mode groups detailed above.

Scrutiny of the data revealed that:

• attitude positively impacts on purchase intention;

• the impact of both variety and organization perceptions on attitude was positive;

• consumers pay greater attention to how an assortment is organized than to its variety when engaging in deliberative and heuristic-based intuitive thinking; and

• attitude towards an assortment is based equally on perceptions of variety and organization for consumers using expertise-based intuitive thinking.

Further analysis considered product category familiarity, category involvement and brand loyalty, as these variables are often used in assortment research. Key findings include:

• familiarity with the category was lower among consumers using expertise-based intuition;

• those relying on expertise-based intuition were less involved in the product category; and

• brand loyalty was lower among respondents using a deliberative mode of thinking.

The authors conclude that consumer attitudes are shaped by consumer perceptions of both the variety of an assortment and how it is organized. Manufacturers and retailer are thus urged to increase their understanding of these perceptions and the thinking styles of consumers to optimize selection and presentation. It is recommended that proportionate attention is paid to variety and organization depending on the specific product category. Piris and Guibert use the example of rice investigated in the present study to illustrate their point. Most subjects used either heuristic-based intuition or deliberative thinking to make their selection in this category. They consequently suggest that less variety and better organization would help increase consumer purchase intention and lower retailer costs.

Finding the ideal balance between variety and organization is regarded as potentially even more important in online retail environments where consumers typically have to navigate multiple screens when viewing an assortment. Ascertaining types of thinking can help retailers achieve the desired ratio. Acquiring greater knowledge of factors which shape consumer learning is also encouraged. Expertise determines the importance of variety among intuitive consumers.

Researchers might in future examine additional variables such as favorite brands and different levels of expertise. Another option is to consider luxury items or products deemed to be of greater complexity. Such analysis might lead to additional distinctions between the respective thinking modes utilized by consumers.

To read the full article enter 10.1108/JCM-10-2014-1189 into your search engine.

(A précis of the article “Effects of intuitive judgments on consumer assortment evaluations”. Supplied by Marketing Consultants for Emerald.)