Effects of Quality and Quantity of Information on Decision Effectiveness

Abstract

Providing attribute information about alternatives can both help and hinder consumers evaluate products. We separate attribute information into two components: information quality and information quantity. We hypothesize, all else being equal, that the former component improves decision effectiveness while the latter component decreases decision effectiveness. The results of an experimental investigation designed to estimate the marginal effects of these factors were compatible with these premises. In addition, evaluations were also found to suffer in situations where high levels of information quality were made available. Insights into these and other observed effects are suggested after exploring the process by which subjects used the available information.