Lena Belogolova - Academia.edu (original) (raw)
Through behavioral economics research as well as through roles in various industries, I use the social sciences to learn from, question and make small tweaks to the forces that influence our day to day decisions. I am passionate about applying this social science lens to optimizing not only consumer products and they way consumers act/feel, in the more traditional A/B test way, but also through traditional research and with in-company + personal tools, behaviors, as well as marketing strategies. Research has shown that the right small changes can make a very BIG positive impact and I try to do that both personally and professionally on a daily basis.
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Marketers and researchers alike typically regard products as differentiated by quality (modeled v... more Marketers and researchers alike typically regard products as differentiated by quality (modeled via vertical differentiation) or taste (modeled via horizontal differentiation). This research examines consumer beliefs about product differentiation. For a wide variety of product pairs, different consumers hold divergent beliefs about whether each pair is a matter of quality (such that one product is objectively better) or taste (such that one product is a better match with their own personal preferences). These beliefs have meaningful consequences. When consumers believe their chosen products are objectively better rather than better matches with their preferences: (1) they are willing to pay more for the chosen product over the alternative ; (2) they self-reference less when explaining their choices; and (3) they are more likely to make transitive inferences from choices across other consumers. Observing others' contradictory choices increases the likelihood of believing those products differ by taste rather than quality. Understanding consumer beliefs about product differentiation has implications for understanding consumer decision delegation and decisions that are made in group contexts and for strategic decisions including customer segmentation, product positioning, and pricing policies. S ome products are better than others. A water filter that removes 99.9% of contaminants is better than one that removes 99%. Other products are matters of individual taste. A lemon popsicle is neither better nor worse than a lime popsicle, yet many consumers prefer one to the other. These two examples anchor the ends of a product differentiation continuum. The water filters differ in quality: the product itself is the source of value, and the superiority of one over the other is a matter of fact. The popsicles differ in taste: the match between the product and the consumer's preferences is the source of value, and the superiority of one over the other cannot be established as a matter of fact. The present research characterizes consumer beliefs about product differentiation—that is, whether the differences between products are matters of quality or taste. Different consumers hold divergent beliefs: across a wide variety of brand pairs, the minority belief regarding whether the differences are matters of quality or taste is held by more than a third of consumers on average. Such discrepancies across consumers are important: we find these beliefs affect willingness to pay and consumers' reasoning about their own choices and those of others. We report five key findings, each one holding constant the set of products. First, for a variety of sets of products, consumers hold divergent beliefs about whether the
Marketers and researchers alike typically regard products as differentiated by quality (modeled v... more Marketers and researchers alike typically regard products as differentiated by quality (modeled via vertical differentiation) or taste (modeled via horizontal differentiation). This research examines consumer beliefs about product differentiation. For a wide variety of product pairs, different consumers hold divergent beliefs about whether each pair is a matter of quality (such that one product is objectively better) or taste (such that one product is a better match with their own personal preferences). These beliefs have meaningful consequences. When consumers believe their chosen products are objectively better rather than better matches with their preferences: (1) they are willing to pay more for the chosen product over the alternative ; (2) they self-reference less when explaining their choices; and (3) they are more likely to make transitive inferences from choices across other consumers. Observing others' contradictory choices increases the likelihood of believing those products differ by taste rather than quality. Understanding consumer beliefs about product differentiation has implications for understanding consumer decision delegation and decisions that are made in group contexts and for strategic decisions including customer segmentation, product positioning, and pricing policies. S ome products are better than others. A water filter that removes 99.9% of contaminants is better than one that removes 99%. Other products are matters of individual taste. A lemon popsicle is neither better nor worse than a lime popsicle, yet many consumers prefer one to the other. These two examples anchor the ends of a product differentiation continuum. The water filters differ in quality: the product itself is the source of value, and the superiority of one over the other is a matter of fact. The popsicles differ in taste: the match between the product and the consumer's preferences is the source of value, and the superiority of one over the other cannot be established as a matter of fact. The present research characterizes consumer beliefs about product differentiation—that is, whether the differences between products are matters of quality or taste. Different consumers hold divergent beliefs: across a wide variety of brand pairs, the minority belief regarding whether the differences are matters of quality or taste is held by more than a third of consumers on average. Such discrepancies across consumers are important: we find these beliefs affect willingness to pay and consumers' reasoning about their own choices and those of others. We report five key findings, each one holding constant the set of products. First, for a variety of sets of products, consumers hold divergent beliefs about whether the