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“Silly Humans Can't Count: The 29% Effect”

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“Silly Humans Can’t Count: The 29% Effect”
By Paul Kedrosky

“From a new study
in the “Journal of Consumer Research,” how humans can’t count:
“Consumers often have a distorted view when they compare information
that involves numbers, according to a new study in the Journal of
Consumer Research.  “As a consumer, would your preference for a
dishwasher depend on whether its warranty level is expressed in months
rather than years?” write authors Mario Pandelaere (Ghent  University,
Belgium), Barbara Briers (Tilburg University, the Netherlands), and
Christophe Lembregts (Ghent University, Belgium).
 
To most consumers, the answer
is “yes.” The difference between an 84-month and a 108-month warranty
looks bigger than the difference between a seven-year and a nine-year
warranty, despite the fact that both differences are exactly the same.
 
“Qualitative information can
usually be specified in alternative units,” the authors write. “In many
cases, however, the specific unit in which information is described is
arbitrary. For instance, product quality ratings may be expressed on a
scale from 0 to 10 or on a scale from 0 to 100,” the authors write.
“People typically fail to realize that the unit of quantitative
information is arbitrary. They just focus on the number of scale units
used to express a certain difference.” As a result, higher numbers seem
to represent bigger quantities. This “unit effect” is the reason why
consumers perceive a bigger difference between ratings 90 and 95 out of
100 than they do between a 9 or 9.5 out of 10.”


Source: http://coyoteprime-runningcauseicantfly.blogspot.com/2013/09/silly-humans-cant-count-29-effect.html



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