Increasing choice satisfaction through goal-based labeling

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Increasing choice satisfaction through goal-based labeling Frank Goedertier & Kristof Geskens & Maggie Geuens & Bert Weijters

Published online: 28 June 2011 # Springer Science+Business Media, LLC 2011

Abstract Business practitioners increasingly seem to believe in the power of goalbased labels (i.e., labels that link assortment items to consumption goals). While previous literature has focused on feature-based approaches to increase choice satisfaction, we introduce goal-based labeling as a consumer-based approach to increase choice satisfaction. Since goal-based labels (e.g., a “Family Trip” camera versus a “Professional” camera) relate choice alternatives directly to consumption goals, they allow consumers to bypass translating product attributes into goal attainment. Quantitative and qualitative results of an experimental study indicate that novice consumers, but not experts, benefit from goal-based labeling in multiple ways. Novice consumers use goal-based labels as an important cue in their decision making. This can significantly increase their chances at making an optimal choice. Choosing from a goal-based labeled assortment also has a positive effect on the choice satisfaction of novices. Mediation analyses show that a decrease in the choice uncertainty drives the positive effect of goal-based labeling on choice satisfaction. Novices apparently do not blindly follow the labels that are provided but try to understand the link between labels and attributes. Hence, among novices, inaccurately labeled assortments not only result in suboptimal choice but also in higher uncertainty and lower satisfaction. For experts, goal-based labeling is largely irrelevant, as it does not have an effect on their choice satisfaction, nor on their likelihood to make an optimal choice. F. Goedertier (*) : K. Geskens : M. Geuens : B. Weijters Department of Marketing, Vlerick Leuven Gent Management School, Vlamingenstraat 83, 3000 Leuven, Belgium e-mail: [email protected] M. Geuens : B. Weijters Department of Marketing, Ghent University, Tweekerkenstraat 2, 9000 Ghent, Belgium M. Geuens : B. Weijters Department of Marketing, Vlerick Leuven Gent Management School, Reep 1, 9000 Ghent, Belgium

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Mark Lett (2012) 23:119–136

Keywords Goal-based choice . Goals . Consumer expertise . Satisfaction . Uncertainty

1 Introduction Imagine you want to buy a mountain bike (MTB) to start participating in recreational tours in the dunes near your place. Most of the MTB brands you encounter offer an assortment of bikes with fancy but rather meaningless labels. For example, the brand Cannondale has MTBs that are labeled Flash, Jekyll or Claymore, and Scott offers models such as Spark, Scale, or Genius. One brand uses labels that reflect specific usage goals related to mountain biking such as Muddy Woods or Sandy Beach. Being new to the category, which brand would you choose and with which brand would you be most satisfied? Business practitioners increasingly seem to believe in the power of goal-based labels (i.e., labels that link as