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Luigi Pistaferri, Consumption Inequality and Family Labor Supply

The Presenter's Paradox

Archived Abstract of Former PSC Researcher

Weaver, K., S. Garcia, and Norbert Schwarz. 2012. "The Presenter's Paradox." Journal of Consumer Research, 39(3): 445-460.

This analysis introduces the Presenter's Paradox. Robust findings in impression formation demonstrate that perceivers' judgments show a weighted averaging pattern, which results in less favorable evaluations when mildly favorable information is added to highly favorable information. Across seven studies, we show that presenters do not anticipate this averaging pattern on the part of evaluators and instead design presentations that include all of the favorable information available. This additive strategy ("more is better") hurts presenters in their perceivers' eyes because mildly favorable information dilutes the impact of highly favorable information. For example, presenters choose to spend more money to make a product bundle look more costly, even though doing so actually cheapened its value from the evaluators' perspective (study 1). Additional studies demonstrate the robustness of the effect, investigate the psychological processes underlying it, and examine its implications for a variety of marketing contexts.

DOI:10.1086/664497 (Full Text)

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