Choosing the sure gain and the sure loss: uncertainty avoidance and the reflection effect

• Published in: The Journal of consumer marketing Vol. 31; no. 5; pp. 351 - 359
• Main Authors: Chatterjee, Subimal, Atav, Gizem, Min, Junhong, Taylor, David
• Format: Journal Article
• Language: English
• Published: Santa Barbara Emerald Group Publishing Limited 11.08.2014
• Subjects: Avoidance behavior; Between-subjects design; Decision making; Market research/consumer behaviour; Marketing; Preferences; Probability; Studies; Theory; Risky choice; Prospect Theory; Uncertainty avoidance; Reflection effect

Purpose – The paper aims to investigate the role of uncertainty avoidance (UA) as a moderator of Prospect Theory’s reflection effect (i.e. the simultaneous choice of a sure gain and a risky loss). We expect that higher-UA consumers, seeking certainty, will shun risk across both gains and losses such...