Where Do You Want to Go Skiing? The Effect of the Reference Point and Loss Aversion

GOCMANOVÁ, Zuzana, Jaromír SKORKOVSKÝ, Štěpán VESELÝ a Jan BÖHM. Where Do You Want to Go Skiing? The Effect of the Reference Point and Loss Aversion. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis. 2019, roč. 67, č. 1, s. 243-252. ISSN 1211-8516. Dostupné z: https://dx.doi.org/10.11118/actaun201967010243.

Základní údaje

• Originální název: Where Do You Want to Go Skiing? The Effect of the Reference Point and Loss Aversion
• Autoři: GOCMANOVÁ, Zuzana (703 Slovensko), Jaromír SKORKOVSKÝ (203 Česká republika, domácí), Štěpán VESELÝ (203 Česká republika, domácí) a Jan BÖHM (203 Česká republika, domácí).
• Vydání: Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 2019, 1211-8516.

Další údaje

• Originální jazyk: angličtina
• Typ výsledku: Článek v odborném periodiku
• Obor: 50204 Business and management
• Stát vydavatele: Česká republika
• Utajení: není předmětem státního či obchodního tajemství
• WWW: URL
• Kód RIV: RIV/00216224:14560/19:00109143
• Organizační jednotka: Ekonomicko-správní fakulta
• Doi: http://dx.doi.org/10.11118/actaun201967010243
• Klíčová slova anglicky: prospect theory; reference point; loss aversion; preference shifts; marketing
• Příznaky: Mezinárodní význam, Recenzováno

Anotace

This paper has explored the effect of loss aversion and changes of reference points in a hypothetical choice experiment in microeconomic consumption behavior. We confirm that people tend to prefer alternatives that do not compare unfavorably to other options in the choice set (i.e. people are loss averse). We also confirm that the evaluation of alternatives is reference dependent: by adding different alternatives to a choice set the relative (mutual) attractiveness of the remaining alternatives can be reversed (e.g., A is chosen over B in a choice set including C1, but B is chosen over A in a choice set including C2). The choice tasks we employed were based on real offers from an actual travel agency. This enhances the external validity of our findings that in general the role of the reference point and loss aversion has a significant impact on the consumer’s behavior. Thus, our results suggest the possibility of a relatively simple and practical application of prospect theoretical principles in marketing campaigns. We expect that our findings might be added to a growing body of literature on using the prospect theory for understanding and predicting consumer’s behavior. However, with small sample size, caution must be applied, as the findings might not be transferable to all conditions. Another significant limitation that needs to be considered is the survey method used. The results are not captured from the real marketplace; the only likely choice was made. When making an actual decision, the respondents might act differently than stated in the questionnaire.

Návaznosti

• MUNI/A/1503/2018, interní kód MU: Název: Matematické statistické modelování 3 (Akronym: MaStaMo3)

Investor: Masarykova univerzita, Matematické statistické modelování 3, DO R. 2020_Kategorie A - Specifický výzkum - Studentské výzkumné projekty