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Attribute-value functions as global interpretations of attribute importance

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Attribute-value functions as global interpretations of attribute importance. / van Ittersum, K.; Pennings, J.M.E.

In: Organizational Behavior and Human Decision Processes, Vol. 119, No. 1, 09.2012, p. 89-102.

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@article{5fe42b0288b444a19cbc87ef2bc3a21b,
title = "Attribute-value functions as global interpretations of attribute importance",
abstract = "In order to better understand decision maker's perceptions of the importance of attributes, Goldstein (1990) differentiates between global and local interpretations of attribute importance. While the appreciation for the distinction is growing, research on the relationship between measures of global and local importance is inconclusive. We believe that these inconclusive findings are caused by operationalizing global attribute importance with single-point measures that implicitly assume that the global interpretation of attribute importance linearly depends on the relevant range of context-specific attribute levels. To address this, we propose to operationalize the global interpretation of attribute importance by estimating decision makers' attribute-value functions. Two empirical studies demonstrate that the shape of attribute-value functions changes from concave to convex with global attribute importance. Furthermore, the steepness of these functions increases with global attribute importance while the diminishing sensitivity decreases. Finally, it is demonstrated that the inconclusive findings about the relationship between common, single-point measures of global and local attribute importance is driven by non-linearities in decision makers' attribute-value functions. The results suggest great promise for future research on using decision makers' attribute-value functions for measuring the importance of attributes. Published by Elsevier Inc.",
keywords = "Attribute importance, Validity, Global and local interpretations of attribute importance, Attribute-value functions, LOSS AVERSION, REFERENCE POINTS, DECISION-MAKING, RELATIVE IMPORTANCE, VALUE ELICITATION, REFERENCE PRICES, CONSUMER CHOICE, RISKLESS CHOICE, PREFERENCES, UTILITY",
author = "{van Ittersum}, K. and J.M.E. Pennings",
year = "2012",
month = "9",
doi = "10.1016/j.obhdp.2012.04.002",
language = "English",
volume = "119",
pages = "89--102",
journal = "Organizational Behavior and Human Decision Processes",
issn = "0749-5978",
publisher = "Elsevier Science",
number = "1",

}

RIS

TY - JOUR

T1 - Attribute-value functions as global interpretations of attribute importance

AU - van Ittersum, K.

AU - Pennings, J.M.E.

PY - 2012/9

Y1 - 2012/9

N2 - In order to better understand decision maker's perceptions of the importance of attributes, Goldstein (1990) differentiates between global and local interpretations of attribute importance. While the appreciation for the distinction is growing, research on the relationship between measures of global and local importance is inconclusive. We believe that these inconclusive findings are caused by operationalizing global attribute importance with single-point measures that implicitly assume that the global interpretation of attribute importance linearly depends on the relevant range of context-specific attribute levels. To address this, we propose to operationalize the global interpretation of attribute importance by estimating decision makers' attribute-value functions. Two empirical studies demonstrate that the shape of attribute-value functions changes from concave to convex with global attribute importance. Furthermore, the steepness of these functions increases with global attribute importance while the diminishing sensitivity decreases. Finally, it is demonstrated that the inconclusive findings about the relationship between common, single-point measures of global and local attribute importance is driven by non-linearities in decision makers' attribute-value functions. The results suggest great promise for future research on using decision makers' attribute-value functions for measuring the importance of attributes. Published by Elsevier Inc.

AB - In order to better understand decision maker's perceptions of the importance of attributes, Goldstein (1990) differentiates between global and local interpretations of attribute importance. While the appreciation for the distinction is growing, research on the relationship between measures of global and local importance is inconclusive. We believe that these inconclusive findings are caused by operationalizing global attribute importance with single-point measures that implicitly assume that the global interpretation of attribute importance linearly depends on the relevant range of context-specific attribute levels. To address this, we propose to operationalize the global interpretation of attribute importance by estimating decision makers' attribute-value functions. Two empirical studies demonstrate that the shape of attribute-value functions changes from concave to convex with global attribute importance. Furthermore, the steepness of these functions increases with global attribute importance while the diminishing sensitivity decreases. Finally, it is demonstrated that the inconclusive findings about the relationship between common, single-point measures of global and local attribute importance is driven by non-linearities in decision makers' attribute-value functions. The results suggest great promise for future research on using decision makers' attribute-value functions for measuring the importance of attributes. Published by Elsevier Inc.

KW - Attribute importance

KW - Validity

KW - Global and local interpretations of attribute importance

KW - Attribute-value functions

KW - LOSS AVERSION

KW - REFERENCE POINTS

KW - DECISION-MAKING

KW - RELATIVE IMPORTANCE

KW - VALUE ELICITATION

KW - REFERENCE PRICES

KW - CONSUMER CHOICE

KW - RISKLESS CHOICE

KW - PREFERENCES

KW - UTILITY

U2 - 10.1016/j.obhdp.2012.04.002

DO - 10.1016/j.obhdp.2012.04.002

M3 - Article

VL - 119

SP - 89

EP - 102

JO - Organizational Behavior and Human Decision Processes

T2 - Organizational Behavior and Human Decision Processes

JF - Organizational Behavior and Human Decision Processes

SN - 0749-5978

IS - 1

ER -