Dissertation
Increased subjective knowledge through ownership and the familiarity bias: A study on the German automobile market
University of the Sunshine Coast, Queensland
Doctor of Philosophy, University of the Sunshine Coast, Queensland
2023
DOI:
https://doi.org/10.25907/00727
Abstract
This thesis focuses on the effects of ownership and the familiarity bias on subjective knowledge in the German automobile market. It is located at the point of intersection of classical economic decision-making theory and behavioural economics. With increasing computational capacity and advancement in medical as well as psychological fields, behavioural economics offers ways to improve classic decision-making models. This research uses data from 467 participants that have answered a questionnaire on their decision-making behaviour for extended warranties in the German automobile market. It assesses the effect of previous ownership of an extended warranty on the feeling of familiarity by measuring participants’ subjective knowledge.
The thesis starts with explaining the current status of research on purchase decision making, consumer knowledge, and the familiarity effect. It explains the research used to create the model used for this study, specifically subjective and objective knowledge. A questionnaire was developed to gather the data necessary for evaluating the model. This research uses the technique of structural equation modeling (SEM) to assess the effect of product-related experience on subjective and objective knowledge as well as the effect on the willingness to pay.
The data of 467 participants was analyzed using the previously explained SEM. The empirical results suggest a high influence of product-related experience on subjective knowledge. The influence of product-related experience on objective knowledge is not significant for the data assessed. The data was then divided into two groups of non-possessors and possessors to analyze the effect of possession on subjective and objective knowledge. The empirical results suggest that previous possession has a significant influence on subjective knowledge, while the influence on objective knowledge is not statistically significant. The data does not suggest an influence of previous ownership on the willingness to pay.
This research provides several valuable contributions to the literature. First, it is the first study to be conducted on a real-world purchase decision-making situation for a consumer good. Second, it connects the findings of classical economic decision-making theory with the latest research in behavioural economics to improve the validity of the decision-making models. Third, it provides valuable knowledge on the effects of previous ownership on subjective and objective knowledge, the built-up of schemas and its influence on the
willingness to pay that can be used as starting point for further research.
Details
- Title
- Increased subjective knowledge through ownership and the familiarity bias: A study on the German automobile market
- Authors
- Martin Lichtenstern - University of the Sunshine Coast, Queensland, School of Business and Creative Industries
- Contributors
- Sajid Anwar (Supervisor) - University of the Sunshine Coast, Queensland, Indigenous and Transcultural Research Centre - Legacy
- Awarding institution
- University of the Sunshine Coast, Queensland
- Degree awarded
- Doctor of Philosophy
- Publisher
- University of the Sunshine Coast, Queensland
- DOI
- 10.25907/00727
- Organisation Unit
- School of Business and Creative Industries; Indigenous and Transcultural Research Centre; University of the Sunshine Coast, Queensland
- Language
- English
- Record Identifier
- 99703398802621
- Output Type
- Dissertation
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