The Effects of Alternative Labels on Decision Behavior: The Case of Corporate Site Selection Decisions

Abstract

The influence of alternative labels on decision processes and outcomes were examined in a multidimensional decision task with realistic decision information and experienced decision makers. Based on prior research, it was predicted that labels would influence selection and ratings of decision alternatives, as well as the extent of information search and the information search strategies. Subjects (n = 26) experienced in making and/or aiding business relocation decisions completed two computer controlled site selection tasks: one with labeled locations and one with unlabeled locations. Results indicated that labeling influenced both decision processes and location ratings. An interaction between order of task completion and labeling suggested that labeling effects on decision making may be minimized if an unlabeled task is completed prior to a labeled task. Implications and limitations are discussed in terms of labeling effects and decision quality.