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For this learning activity, I do an in-class replication of a classic research finding: the accuracy/effort trade-off in consumer choice. In essence, I run a within-subject experiment with two conditions (restricted effort and high effort). I pass out a form for students to use in marking their choices during the learning activity. As shown here, I establish a consumption scenario that is relevant to the students (candy for final exam week). I create a choice set that includes a few brands of candy that students are unlikely to have tried. I then create a restricted-effort condition by severely limiting the time in which students can make the decision. Based on experience, I have learned that requiring students to make a choice within three seconds of seeing the consideration set is a procedure that reliably produces low-accuracy choices. After a few more choices in other consumption scenarios (which I use for purposes other than those described here), I create a high-effort condition. In this condition, I use the same consumption scenario as the restricted-effort condition, but I emphasize that students now must make the perfect choice for that choice scenario. As part of the manipulation, I say "You sometimes hear about the idea of 'perfect information.' Well, for this choice, I need you to get as close to 'perfect information' as possible. For example, I suspect there are some candies on that list that you have never tried. Is that right? For this exercise, I need you to make a perfectly accurate choice, so I need you to taste the candies. I have brought samples of each candy [small Halloween-sized pieces], and I need you to try each of them." I also add, "If you don't eat candy, or if you're a 'conscientious objector' for some other reason, that's okay. You'll just need to play along. But if you're willing to eat candy, I need you to sample each of these candies." (I have tried this exercise with other product categories such as root beer and fruit juice, but I have never found any product that everyone would try.) I must manage the class carefully at this point, lest the group move too far into a 'class party' atmostphere. I typically need to announce the following a few times: "Remember, this isn't just fooling around. This is work. I need you to make the perfect choice for your consumption scenario. Taste it, read the wrapper for nutritional information, read some online reviews, or gather whatever information you like to make sure you're making the perfect choice for you." After all their choices have been made, I tally the study's results while I stand in front of the class. The aspect of the exercise that is relevant to the effort/accuracy trade-off is the proportion of students whose restricted-effort choice was different from their high-effort choice. The proportion of students with different choices in the two conditions is very high -- usually about 50% of the class. I ask students to explain the reason for their changes in preference, and they often mention they had never tried one of the options, and by trying it they discovered they liked the taste. After exploring the specifics of their choices, I generalize the effect for students by labeling the high-effort choice as "truth." As I explain, "That's as close to 'truth' as we're going to get. I gave you plenty of time to make the choice. I asked you to get any information you liked. I even let you taste it. As near as we can tell, your choice with perfect information was 'truth.' Therefore, anything different from 'truth' would be an inaccurate choice." I then develop the effort/accuracy trade-off with constant reference to the inaccuracy demonstrated in the difference between the restricted-effort choices and the high-effort choices. I also develop the reasons that consumers frequently exert very little effort (e.g., self-imposed limits on decision-making effort rather than an artificial three-second time limit). I find that integrating the lecture component and this learning activity together in a side-by-side manner is effective at "driving home" the concept of the accuracy/effort trade-off. |
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