Trying hard or hardly trying: An analysis of context effects in choice

Several studies have shown that consumer choice is often influenced by the context or the set of alternatives under consideration. Context effects have largely been explained in terms of constructive preferences that are consistent with 2 theoretical accounts - effort minimization and perceptual contrast - that emphasize different underlying motivations. We propose that the effect of time pressure on context effects can be used as a moderating variable to determine which of the 2 motives is supported. Specifically, if context effects bias preferences due to effort minimization, time pressure should increase the magnitude of such effects. In contrast, if context effects arise due to an excessive focus on the relational characteristics of the alternatives provided, time pressure should reduce the magnitude of such effects. We examine this proposition in relation to the compromise effect and a choice between an extreme and an all-average option. We find that the compromise effect and the preference for an all-average alternative are both reduced under time pressure. A study using Mouselab provides additional support for the underlying decision mechanisms. We discuss the theoretical implications of this research and explore its consequences for marketers.