Analyzing the Effect of Information Format and Task on Cutoff Search Strategies

Abstract

An analytical framework is presented that specifies optimal search strategies when consumers use cutoff decision rules when information is formatted by brand or attribute and when the task is either screening alternatives or choosing the first acceptable alternative. The results show that formatting effects determine optimal processing strategies for screening but not for satisficing choice tasks. A laboratory experiment was conducted to test the validity of the analytical results. Most results were validated. However, under certain conditions, consumers use brand processing in choice tasks even when the analytical model predicts attribute processing. Results from a follow‐up study suggest that this deviation occurs because brand processors have different subjective search costs than attribute processors.

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