TITLE:
The Research Review and Prospect of Compromise Effect
AUTHORS:
Xinqian Li
KEYWORDS:
Compromise Effect, Context Effect, Consumer Decision
JOURNAL NAME:
Open Journal of Social Sciences,
Vol.8 No.4,
April
15,
2020
ABSTRACT: The rational choice theory holds that consumers will always choose the
product with the maximum utility, while the context effect emphasizes that
consumers’ choice will change with the change of the situation, and the
rational decision is not always made. As a
model of context effect, the compromise effect points out that when an extreme
option is added to the selection set, the original option will become a
compromise option and become more attractive. On the
basis of a systematic review of the literature related to the compromise
effect, this paper summarizes and prospects the compromise effect. First of
all, this paper introduces the concept of the compromise effect, and the
similarities and differences between the compromise effect, the context effect
and the attraction effect. Secondly, this paper discusses the formation mechanism of compromise
effect from the perspective of reason seeking, loss aversion and rational
decision-making. Third, based on the literature review, this paper discusses
the impact factors of the compromise effect. Finally, this paper puts forward
the enlightenment of the compromise effect to the marketing practice, and
points out the future research direction.