Booth Research Reveals Dominance of Snap Judgement, and More – Chicago News
Let’s explore some of the most interesting stories that have emerged from Chicago business schools this week amidst the Polar Vortex (stay warm, everyone).
Why People Make up Their Minds Sooner Than They Realize – Chicago Booth News
More information does not necessarily lead to more informed decisions. New research from the University of Chicago Booth School of Business finds that people assume they can and will use more information in making decisions, despite the contrary evidence. Often, people make snap judgement without awareness and most collected information goes unused.
Ed O’Brien, Chicago Booth Associate Professor and co-author of “People Use Less Information Than They Think to Make Up Their Minds,” asserts, “In our studies, participants thought they would withhold judgment and await a lot of evidence before making up their minds but in reality, they cast judgment right when the evidence came in.”
Researchers note that the data suggests a gap between information seekers and information providers.
“For example, people who go online to research a topic or take part in a debate may only access a small fraction of what is available before making a decision while providers of that information may assume the seekers are taking in all the information and hear them ‘loud and clear.'”
You can read more about Ed O’Brien’s research here.
Why We Can’t All Get Away with Wearing Designer Clothes – Kellogg Insight
While luxury brands are a surefire way to indicate status, a new series of experiments reveal the surprising downsides of luxury consumption.
According to a new paper by Northwestern University Kellogg School of Management Professor of Marketing Derek Rucker and Ph.D. candidate Christopher Cannon, luxury consumers may find themselves at a disadvantage in the hiring process. This instance is even more particular when the job involves interpersonal warmth. Rucker and Cannon’s research explores how consumers who wear luxury goods are viewed more negatively and perceived as “cold.”
Cannon notes, “We don’t find evidence in this work that the effects are driven by envy. We find evidence that luxury consumption can lead people to infer certain motives. Specifically, when people assume that someone has donned luxury goods in order to show off, this can lead them to see that person as less warm.”
Despite the obvious social appeal, Cannon and Rucker’s new research suggests that luxury brands, like Gucci, tend to create an impression that appears interpersonal.
Cannon and Rucker point out the importance of evaluating the situation before donning your Gucci. “We’ve shown situations exist where luxury consumption produces positive outcomes, such as when filling the corporate publicist role in the experiment. Rather than luxury always being good or always being bad, it depends on whether status or warmth is more important.”
You can read more about the luxury research here.
Howe Teaches Students How to be Professional Leaders – Gies School of Business News
Alan Howe (BADM ’82), a professional board director, has served across multiple industries—including enterprise software, wireless, telecom, composite materials, and IT services—specializing in “turnaround” situations. He recently returned to the University of Illinois Gies College of Business to share his expertise with the next generation of business leaders.
“I tell students that what they think they’re going to be doing in the next three years is probably radically different than what they’ll be doing in 10 to 15 years, so get ready for change. Be adaptable because you never know where the next opportunity may come from,” Howe asserts in a recent profile.
In the interview, Howe further explains what makes a great business leader:
“The best characteristic is humility. You can’t ‘big dog’ in a corporate setting or talk about how smart you are. Lead with humility. Also listen and learn from people around you.”
You can read more from the Howe interview here.
LBS Alumni Spotlight: The Retail Industry & Holiday Trends
Unlike the consulting, finance and technology sectors, retail has always been regarded as a safe industry for employment. That’s because no matter how bad the economy gets, the retail industry will never cease to exist as long as people still make purchases. And that’s especially true for the holidays.
Each year during the holidays, on average, UK households spend £794.39 and US households spend $752.00. It’s not a small chunk of change. There’s no doubt that it’s a busy time of year, and many retail companies go all out to bring in new customers and grab the largest percentage of sales. But does that mean it’s a good industry to work in? Continue reading…
