Marketing Letters

, Volume 13, Issue 4, pp 335–344 | Cite as

A Tale of Two Pizzas: Building Up from a Basic Product Versus Scaling Down from a Fully-Loaded Product

  • Irwin P. Levin
  • Judy Schreiber
  • Marco Lauriola
  • Gary J. Gaeth
Article

Abstract

Consumers in the U.S. and Italy were asked to either build up from a consumable base product (pizza) by adding components or scale down from a fully-loaded product by subtracting components. In each country consumers ended up with significantly more ingredients, and a pizza for a higher cost, in the Scale Down Condition than in the Build Up Condition. Results are discussed in terms of the principle of “loss aversion” underlying phenomena such as “the endowment effect,” marketing implications of this effect, and future research needs.

endowment effect framing loss aversion 

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Copyright information

© Kluwer Academic Publishers 2002

Authors and Affiliations

  • Irwin P. Levin
    • 1
  • Judy Schreiber
    • 2
  • Marco Lauriola
    • 3
  • Gary J. Gaeth
    • 2
  1. 1.Department of Psychology and Department of MarketingThe University of IowaIowa City
  2. 2.The University of IowaIowa City
  3. 3.The University of Rome “La Sapienza,”Italy

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