When two plus two is not equal to four: Errors in processing multiple percentage changes

Journal of Consumer Research

Volumn 34, Issue 3, 2007, Pages 327-340

  Chen, Haipeng ^a   Rao, Akshay R ^b,c  

^a TEXAS A AND M UNIVERSITY   (United States)

^b Department of Marketing ^*  (United States)

^c UNIVERSITY OF MINNESOTA   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 35348925879     PISSN: 00935301     EISSN: None     Source Type: Journal    
DOI: 10.1086/518531     Document Type: Article

References (46)

1. Adkins, Natalie and Julie Ozanne (2005), "The Low Literate Consumer," Journal of Consumer Research, 32 (June), 93-105.
2. Ashcraft, Mark H. (1992), "Cognitive Arithmetic: A Review of Data and Theory," Cognition, 44 (August), 75-106.
3. Behr, Merlyn J., Thomas R. Post, and Ipke Wachsmuth (1986), "Estimation and Children's Concept of Rational Number Size," in National Council of Teachers of Mathematics Yearbook, ed. Harold L Schoen and Marilyn J. Zweng, Reston, VA: National Council of Teachers, 103-11.
4. Behr, Merlyn J., Ipke Wachsmuth, and Thomas R. Post (1985), "Construct a Sum: A Measure of Children's Understanding of Fraction Size," Journal for Research in Mathematics Education, 16 (March), 120-31.
5. Bettman, James R., Eric J. Johnson, and John W. Payne (1990), "A Componential Analysis of Cognitive Effort in Choice," Organizational Behavior and Human Decision Processes, 45 (1), 111-39.
6. Bezuk, Nadine and Kathleen Cramer (1989), "Teaching about Fractions: What, When, and How?" in National Council of Teachers of Mathematics Yearbook, ed. Paul R. Trafton and Albert P. Shulte, Reston, VA: National Council of Teacher of Mathematics, 156-67.
7. Burton, Scot and Donald R. Lichtenstein (1988), "The Effect of Ad Claims and Ad Content on Attitude toward the Advertisement," Journal of Advertising, 17 (1), 3-11.
8. Chase, William G. (1978), "Elementary Information Processing," in Handbook of Learning and Cognitive Processes, Vol. 5, Human Information Processing, ed. W. K. Estes, Hillsdale, NJ: Erlbaum, 19-90.
9. Chatterjee, Subimal, Timothy Heath, Sandra Milberg, and Karen France (2000), "The Differential Processing of Price in Gains and Losses: The Effect of Frame and Need for Cognition," Journal of Behavioral Decision Making, 13 (1), 61-75.
10. Chen, Haipeng (Allan) and Akshay R. Rao (2002), "Close Encounters of Two Kinds: False Alarms and Dashed Hopes," Marketing Science, 21 (2), 178-96.
11. Chen, Shih-Fen S., Kent B. Monroe, and Yung-Chein Lou (1998), "The Effects of Framing Price Promotion Messages on Consumers' Perceptions and Purchase Intentions," Journal of Retailing, 74 (3), 353-72.
12. Cosmides, Leda and John Tooby (1996), "Are Humans Good Intuitive Statisticians after AU? Rethinking Some Conclusions from the Literature on Judgment under Uncertainty," Cognition, 58 (1), 1-73.
13. Davis, Robert B. (1988), "Is 'Percent' a Number?" Journal of Mathematical Behavior, 7 (3), 299-302.
14. De Graff, John, David Wann, and Thomas H. Naylor (2001), Affluenza: The All Consuming Epidemic, San Francisco: Berrett-Koehler.
15. DeRosia, Eric (2000), "e-Experiment (v2.1) Documentation: Software for Creating True Experiments on the Web," Working Paper 99-021, Marketing Department, University of Michigan Business School, Ann Arbor..
16. Dewdney, A. K. (1993), 200% of Nothing: An Eye-Opening Tour through the Twists and Turns of Math Abuse and Innumeracy, New York: Wiley.
17. Fisher, Linda C. (1988), "Strategies Used by Secondary Mathematics Teachers to Solve Proportion Problems," Journal of Research in Mathematics Education, 19 (2), 157-68.
18. Gallistel, Charles R. and Rochel Gelman (1992), "Preverbal and Verbal Counting and. Computation," Cognition, 44 (August), 43-74.
19. Gay, Susan A. and Douglas B. Aichele (1997), "Middle School Students' Understanding of Number Sense Related to Percent," School Science and Mathematics, 1 (January), 27-36.
20. Gourville, John T. and Dilip Soman (1998), "Payment Depreciation: The Behavioral Effects of Temporally Separating Payments from Consumption," Journal of Consumer Research, 25 (September), 160-74.
21. _ (1946), "Difficulties Encountered in Percentage by College Freshmen," Journal of Educational Research, 40 (1), 81-95.
22. Heath, Timothy, Subimal Chatterjee, and Karen R. France (1995), "Mental Accounting and Changes in Price: The Frame Dependence of Reference Dependence," Journal of Consumer Research, 22 (June), 90-97.
23. Hoz, Ron and Malka Gorodetsky (1989), "Cognitive Processes in Reading and Comparing Pure and Metric Decimal Rational Numbers," in Journal of Structural Learning, 10 (1), 53-71.
24. Huff, Darrell (1954), How to Lie with Statistics, New York: Norton.
25. Hunting, Robert P. and Christopher F. Sharpley (1988), "Preschoolers' Cognitions of Fraction Units," British Journal of Educational Psychology, 58 (2), 172-83.
26. Kahneman, Daniel and Amos Tversky (1979), "Prospect Theory: An Analysis of Decision under Risk," Econometrica, 47 (2), 263-91.
27. Linville, Patricia W. and Gregory W. Fischer (1991), "Preferences for Separating and Combining Events," Journal of Personality and Social Psychology, 60 (January), 5-23.
28. Mix, Kelly S., Susan Cohen Levine, and Janellen Huttenlocher (1999), "Early Fraction Calculation Ability," Developmental Psychology, 35 (5), 164-74.
29. Morwitz, Vicki G., Eric A. Greenleaf, and Eric J. Johnson (1998), "Divide and Prosper: Consumers' Reactions to Partitioned Prices," Journal of Marketing Research, 35 (4), 453-63.
30. Parker, Melanie (1994), "Instruction in Percent: Moving Prospective Teachers under Procedures and beyond. Conversions," PhD diss., University of Pittsburgh, Dissertation Abstracts International, 55 (10), 3127A.
31. _ (1997), "The Ups and Downs of Percent (and Some Interesting Connections)," School Science and Mathematics, 97 (8), 6-12.
32. Parker, Melanie and Gaea Leinhardt (1995), "Percent: A Privileged Proportion," Review of Educational Research, 65 (4), 421-81.
33. Paulos, John Allen (1988), Innumeracy: Mathematical Illiteracy and Its Consequences, New York: Hill & Wang.
34. Payne, John W., James R. Bettman, and Eric J. Johnson (1993), The Adaptive Decisions Maker, Cambridge: Cambridge University Press.
35. Pelham, Brett W., Tin Tin Sumarta, and Laura Myaskovsky (1994), "The Easy Path from Many to Much: The Numerosity Heuristic," Cognitive Psychology, 26 (2), 103-33.
36. Prelec, Drazen and George Loewenstein (1998), "The Red and the Black: Mental Accounting of Savings and Debt," Marketing Science, 17 (1), 4-28.
37. Saxe, Geoffrey B. (1981), "Body Parts as Numerals: A Developmental Analysis of Numeration among Remote Oksapmin Village Population in Papua New Guinea," Child Development, 52 (1), 306-16.
38. Smith, John P., III (1995), "Competent Reasoning with Rational Numbers," Cognition and Instruction, 13 (1), 3-50.
39. Thaler, Richard (1980), "Toward a Positive Theory of Consumer Choice," Journal of Economic Behavior and Organization, 1 (1), 39-60.
40. _ (1985), "Mental Accounting and Consumer Choice," Marketing Science, 4 (3), 199-214.
41. _ (1999), "Mental Accounting Matters," Journal of Behavioral Decision Making, 12 (3), 183-206.
42. Thaler, Richard and Eric Johnson (1990), "Gambling with the House Money and Trying to Break Even: The Effects of Prior Outcomes on Risky Choice," Management Science, 36 (6), 643-60.
43. Tobias, Sheila (1995), Overcoming Math Anxiety, New York: Norton.
44. Venezky, Richard L. and William S. Bregar (1988), "Different Levels of Ability in Solving Mathematical Word Problems," Journal of Mathematical Behavior, 7 (2), 111-34.
45. Viswanathan, Madhubalan, Jose Antonio Rosa, and James Edwin Harris (2005), "Decision Making and Coping of Functionally Illiterate Consumers and Some Implications for Marketing Management," Journal of Marketing, 69 (1), 15-31.
46. Wynn, Karen (1997), "Competence Models of Numerical Development," Cognitive Development, 12 (3), 333-39.