Article
Consumer Protection

When a Sequence of Decisions Leads to Unfavorable Outcome: The Conflicting Roles of Perceived Control

Date: 2013
Author: Maggie Y. Chu, Robert S. Wyer, Jr., Lisa C. Wan
Contributor: eb™ Research Team

Consumers make numerous decisions every day. These decisions may form a causal sequence in which earlier decisions influence subsequent ones. For example, a decision of which restaurant to go to is a precondition of what to order from the restaurant’s menu. The decision outcome might be either delightful or a disaster. In either case, consumers’ overall evaluation of the experience is influenced not only by the outcome but also the actions that lead up to it. These considerations are particularly important when the outcome of the decision sequence is unfavorable. Extant literature suggests that the negative impact of an unfavorable experience can be attenuated when people have control over their decision to engage in them (Hui and Bateson 1991, Mills and Krantz 1979, Averill 1973). Thus, perceived control over the decision might enhance the evaluation of the entire consumption experience (despite a negative outcome). At the same time, attribution research suggests that the more control people have over their behavior, the more likely they are to regret when the outcome is negative (Roese and Olson 1995, Simonson 1992; Wortman 1976). The regret that one experiences over the bad outcome may undermine the entire experience. In this research, we attempt to resolve this ambiguity. More specifically, we consider situations in which a negative outcome is preceded by a series of decisions and consumers’ control over each of these decisions varies. We postulate that the effect of control at each point in the sequence depends on the control the individual has over other decisions in the sequence.