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Is there a mere categorization effect in investment decisions?

Author

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  • Lewis, David
  • Gill, Tripat

Abstract

This study seeks to replicate and extend the work of Mogilner, Rudnick, and Iyengar (2008) on the mere categorization effect (i.e., placing choice options into categories – even uninformative ones – can increase perceived variety and choice satisfaction among novices). This effect did not extend to the context of investments. We suggest that decision complexity and intangibility are possible boundary conditions such that consumers expend additional cognitive effort rather than rely on heuristics such as perceptual variety cues.

Suggested Citation

  • Lewis, David & Gill, Tripat, 2016. "Is there a mere categorization effect in investment decisions?," International Journal of Research in Marketing, Elsevier, vol. 33(1), pages 232-235.
    • Handle: RePEc:eee:ijrema:v:33:y:2016:i:1:p:232-235
    DOI: 10.1016/j.ijresmar.2016.01.001
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    References listed on IDEAS

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    1. Cassie Mogilner & Tamar Rudnick & Sheena S. Iyengar, 2008. "The Mere Categorization Effect: How the Presence of Categories Increases Choosers' Perceptions of Assortment Variety and Outcome Satisfaction," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 35(2), pages 202-215, June.
    2. Langner, Tobias & Krengel, Martin, 2013. "The mere categorization effect for complex products: The moderating role of expertise and affect," Journal of Business Research, Elsevier, vol. 66(7), pages 924-932.
    3. Cassie Mogilner & Tamar Rudnick & Sheena Iyengar, 2008. "The Mere Categorization Effect: How the Presence of Categories Increases Choosers' Perceptions of Assortment Variety," Economics Working Papers 0070, Institute for Advanced Study, School of Social Science.
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    Cited by:

    1. David R. Lewis, 2018. "The perils of overconfidence: Why many consumers fail to seek advice when they really should," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 23(2), pages 104-111, June.

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