Contingencies
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Page 1 - B&T11220_ERIM_Omslag_DeLanghe_11apr11 CONTINGENCIES 236 BART DE LANGHE LEARNING NUMERICAL AND EMOTIONAL ASSOCIATIONS IN AN UNCERTAIN WORLD The ability to learn about the relation or covariation between events happening in the world is probably the most critical aspect of human cognition. This dissertation examines Contingencies how the human mind learns numerical and emotional relations and explores consequences BART DE LANGHEBART - Contingencies for managerial and consumer decision making. First, we study how uncertainty in the environment affects covariation learning and Learning Numerical and Emotional Associations explore the consequences for consumers’ price-quality inferences and product valuation. in an Uncertain World Second, we examine how different types of accountability (process versus outcome) and analytical intelligence affect learning and judgment. We highlight the implications for employee performance management. Third, building on associative models of memory, we show that bilingual consumers perceive advertising messages in their native language (L1) to be more emotionally intense than advertising messages in their second language (L2). Finally, we explore the consequences of a greater perceived emotionality in L1 for international marketing research. The practical implications of this dissertation are of interest for professionals working ERIM in the area of pricing, branding, marketing research, and human resources. From a theoretical point of view, this dissertation relates to the fields of judgment and decision making under uncertainty and cognitive psychology. Design & layout: B&T Ontwerp en advies (www.b-en-t.nl) Print: Haveka (www.haveka.nl) Design & layout: B&T Ontwerp en advies (www.b-en-t.nl) ERIM The Erasmus Research Institute of Management (ERIM) is the Research School (Onder - zoek school) in the field of management of the Erasmus University Rotterdam. The founding participants of ERIM are Rotterdam School of Management (RSM), and the Erasmus School of Econo mics (ESE). ERIM was founded in1999 and is officially accre dited by the Royal Netherlands Academy of Arts and Sciences (KNAW). The research under taken by ERIM is focused on the management of the firm in its environment, its intra- and interfirm relations, and its busi ness processes in their interdependent connections. The objective of ERIM is to carry out first rate research in management, and to offer an ad vanced doctoral programme inResearch in Management. Within ERIM, over three hundred senior researchers and PhD candidates are active in the different research pro- grammes. From a variety of acade mic backgrounds and expertises, the ERIM community is united in striving for excellence and working at the forefront of creating new business knowledge. Erasmus Research Institute of ManagementErasmus Research - ERIM PhD Series Research in Management Erasmus Research Institute of Management - ERIM Tel. +31 10 408 11 82 ERIM Rotterdam School of Management (RSM) Fax +31 10 408 96 40 Erasmus School of Economics (ESE) E-mail [email protected] P.O. Box 1738, 3000 DR Rotterdam Internet www.erim.eur.nl The Netherlands Contingencies Learning Numerical and Emotional Associations in an Uncertain World Contingencies Learning numerical and emotional associations in an uncertain world Contingenties Het leren van numerieke en emotionele associaties in een onzekere wereld Thesis to obtain the degree of Doctor from the Erasmus University Rotterdam by command of the rector magnificus Prof.dr. H.G. Schmidt and in accordance with the decision of the Doctorate Board. The public defense shall be held on Friday June 10, 2011 at 11:30 hours by Bart de Langhe born in Leuven, Belgium Doctoral Committee Promotors: Prof.dr.ir. B. Wierenga Prof.dr. S.M.J. van Osselaer Other members: Prof.dr.ir. G.H. van Bruggen Prof.dr. H. Baumgartner Prof.dr. D.H.R.V. Smeesters Erasmus Research Institute of Management – ERIM The joint research institute of the Rotterdam School of Management (RSM) and the Erasmus School of Economics (ESE) at the Erasmus University Rotterdam Internet: http://www.erim.eur.nl ERIM Electronic Series Portal: http://hdl.handle.net/1765/1 ERIM PhD Series in Research in Management, 236 ERIM reference number: EPS-2011-236-MKT ISBN 978-90-5892-278-6 © 2011, Bart de Langhe Design: B&T Ontwerp en advies www.b-en-t.nl This publication (cover and interior) is printed by haveka.nl on recycled paper, Revive®. The ink used is produced from renewable resources and alcohol free fountain solution. Certifications for the paper and the printing production process: Recycle, EU Flower, FSC, ISO14001. More info: http://www.haveka.nl/greening All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from the author. To Anneleen Acknowledgements First of all, I would like to express my deepest gratitude to my advisors, Stijn van Osselaer and Berend Wierenga. I feel blessed to have been their student. I thank Stijn for adivising me to aim high; for being there whenever I needed support; for his no- nonsense approach; and for his sharp and humorous one-liners about rats, s***, and walls. Berend must be one of the nicest people in academia. He has taught me the importance of keeping in mind the bigger picture while looking at things in close-up. Rotterdam School of Management is a wonderful place to work. Many thanks go to all marketing professors at Rotterdam School of Management. In particular, I would like to thank Stefano Puntoni, for his continuous support, generosity, honesty, and intelligence. Not only have I found the best possible mentor in him, he is also a fantastic co-author and close friend. I love the projects we are working on and feel excited about the road ahead. Warm thanks go to my fellow students in the Ph.D. program. In particular, I would like to thank Steven Sweldens and Daniel Fernandes. Steven has taught me countless things, but I especially appreciate his honest and analytical brain. From Daniel I have learned that everything is possible and that anything can be done if you just try hard enough. A huge thank you to Annette and Jolanda, the secretaries at the marketing department, for helping me with everything and anything. I gratefully acknowledge the financial support from the Erasmus Research Institute of Management and the Erasmus Trustfonds. Among the many talented and generous people I was lucky to meet in academia, I would like to mention Ann McGill. Her human and intellectual capabilities are a great example for me. I would like to thank my family and friends in Belgium for their constant love and support. I owe them everything. In particular, a very special thank you goes to my parents for their unconditional love, support, and belief in my abilities. Finally, I fall short of words to express how grateful I feel to my wife, Anneleen. My time in Rotterdam has had a huge impact on her life. She created space and time to develop and supported me through thick and thin. I love love love her humor and common sense. I feel secure knowing we are walking side by side. I dedicate my dissertation to her and our future together. Table of Contents Chapter 1. Introduction ............................................................................................. 1 Chapter 2. The Effect of Homoscedastic versus Heteroscedastic Uncertainty on Cue-Outcome Learning ................................................................. 5 2.1 Theory ............................................................................................................................. 6 2.1.1 Local Correlation ............................................................................................................. 9 2.1.2 The Influence of Homo- vs. Heteroscedasticity on Perceived Local Correlation ..................................................................................................................... 10 2.1.3 The Influence of Homo- vs. Heteroscedasticity on Perceived Overall Correlation ..................................................................................................................... 13 2.1.4 The Influence of Homo- vs. Heteroscedasticity on Outcome Predictions .............. 13 2.1.5 Summary of Studies ...................................................................................................... 15 2.2 Empirical Studies......................................................................................................... 15 Study 1 .............................................................................................................................. 15 Study 2 .............................................................................................................................. 18 Study 3 .............................................................................................................................. 21 Study 4 .............................................................................................................................. 22 Study 5 .............................................................................................................................. 24 Study 6 .............................................................................................................................. 28 Study 7 .............................................................................................................................