Is Knowledge Purchasing Power?

Headlines: Data Industry

Ongoing research being conducted at Stanford Business School has upended older research that described a "compromise effect" when shoppers are offered three price point choices for an item, such as a camera. Then, the middle choice was favored. The new study reveals behavior where the most costly choice gains at the expense of the middle one. This seems to represent a shift to consumers favoring products based on "absolute value, their quality". The cause may be the ability of today's shoppers to consult user reviews and online product reference sources such as Amazon. Marketers may now have less direct control over shaping consumer decision making. There are those who think the opposite may be true due to Big Data collection. The new findings are part of a new book to be published in early 2014 called. "Absolute Value: What Really Influences Customers in the Age of (Nearly) Perfect Information"