The Amplifier - v. 4, no. 2

in this issue...Gem State Jamboree, Mineral Club, Pan American Company, Ed Simonich, Sigma Rho, Student Council, Alumni Association, basketball

The devaluation effect: activating a need devalues unrelated objects

It is commonly assumed that an object capable of satisfying a need will be perceived as subjectively more valuable as the need for it intensifies. For example, the more active the need to eat, the more valuable food will become. This outcome could be called a valuation effect. In this article, we suggest a second basic influence of needs on evaluations: that activating a focal need (e.g., to eat) makes objects unrelated to that need (e.g., shampoo) less valuable, an outcome we refer to as the devaluation effect. Two existing studies support the existence of a devaluation effect using manipulations of the need to eat and to smoke and measuring attractiveness of consumer products and willingness to purchase raffle tickets. Furthermore, the evidence suggests that consumers are not aware of the devaluation effect and its influence on their preferences.

How Should Consumers’ Willingness to Pay Be Measured? An Empirical Comparison of State-of-the-Art Approaches

This study compares the performance of four commonly used approaches to measure consumers’ willingness to pay with real purchase data (REAL): the open-ended (OE) question format; choicebased conjoint (CBC) analysis; Becker, DeGroot, and Marschak’s (BDM) incentive-compatible mechanism; and incentive-aligned choice-based conjoint (ICBC) analysis. With this five-in-one approach, the authors test the relative strengths of the four measurement methods, using REAL as the benchmark, on the basis of statistical criteria and decision-relevant metrics. The results indicate that the BDM and ICBC approaches can pass statistical and decision-oriented tests. The authors find that respondents are more price sensitive in incentive-aligned settings than in non-incentive-aligned settings and the REAL setting. Furthermore, they find a large number of “none” choices under ICBC than under hypothetical conjoint analysis. This study uncovers an intriguing possibility: Even when the OE format and CBC analysis generate hypothetical bias, they may still lead to the right demand curves and right pricing decisions.

Money Smart Week April 25-29, 2016

Join us the week of April 25-29, 2016 to celebrate Money Smart Week 2016. We have great guest speakers from the financial institutions around the region come to talk about finances. Be present for each event and be entered into a drawing to receive $500 towards your student loan balance! A variety of food will be provided at each event too. The event is 4pm -5pm Monday to Friday at Inman E. Page Library.

Asia and the Americas.

Mode of access: Internet.

MURA summer study reports on design and utilization of high-energy accelerators.

Abstracts in English.

A standard juvenile court act.

"The brief which appears as comment following each section was prepared by Francis H. Hiller"--foreward.

Compendium of water pollution laws.

Cover title.