The devil you know: The effect of brand recognition and product ratings on consumer choice

Previous research on the role of recognition in decision-making in inferential choice has focussed on the Recognition Heuristic (RH), which proposes that in situations where recognition is predictive of a decision criterion, recognized objects will be chosen over unrecognized ones, regardless of any other available relevant information. In the current study we examine the role of recognition in preferential choice, in which subjects had to choose one of a pair of consumer objects that were presented with quality ratings (positive, neutral, and negative). The results showed that subjects' choices were largely based on recognition, as the famous brand was preferred even when additional star ratings rendered it as less attractive. However, the additional information did affect the proportion of chosen famous items, in particular in the cases when star ratings for the recognised brand were negative. This condition also resulted in longer response times compared to neutral and positive conditions. Thus, the current data do not point to a simple compensatory mechanism in preferential choice: although choice is affected by additional information, it seems that recognition is employed as an initial important first step in the decision-making process.