Preference Shifts After Loss

Author:

Wilroy, Gretchen

Graduate Program:

Business Administration

Degree:

Doctor of Philosophy

Document Type:

Dissertation

Date of Defense:

February 25, 2020

Committee Members:

Margaret Grace Meloy, Dissertation Advisor/Co-Advisor
Margaret Grace Meloy, Committee Chair/Co-Chair
Hans Baumgartner, Committee Member
Lisa Elizabeth Bolton, Committee Member
Karen Gasper, Outside Member
Margaret Grace Meloy, Program Head/Chair

Keywords:

preferences
budgets
downsizing
contractions
loss

Abstract:

My dissertation research focuses specifically on how preferences change after experiencing a loss. I investigate not only the loss itself, but also the ensuing outcomes associated with experiencing the loss/constraint. Though prior work has investigated how people deal with loss or contractions, the research has been silent on how people change as a result and how the context these contractions occur in might affect preferences. In this dissertation, I explore the loss of time, money, and space, and the downstream consequences that occur after experiencing such a loss. My first essay shows that a budget contraction (of time, space, and money) is sufficient to begin the process of preference refinement. When the budget is fully restored, those preferences have been altered and downstream choices are affected. Mediation results show that experiencing a budget contraction causes consumers to prioritize what they value. Thus, when the budget is restored, consumers allocate their resources to fewer categories of consumption. My second essay studies loss through a different lens. In this research I ask what is the best way to downsize and reduce? Consumers generally believe that they should start by organizing their items (i.e., tidying) and then determine what to get rid of (i.e., reject) when faced with the need to reduce. I show that the best strategy is to focus on what items to keep (i.e., select) from a disordered (i.e., messy) set. The dissertation concludes by discussing the implications of coping with loss and possible future research directions.