The effect of experience on the decision making of expert and novice buyers

Abstract

Expert consumers can base their decisions on a knowledge of product benefits. Novices, with little knowledge of product features, are likely to base their judgement more on what other people think that they should do (i.e. their normative beliefs). It is hypothesized that this is generally found: that experts rely more on perceived benefits and less on normative influence when compared with novices. The relative contribution of expected benefits and normative beliefs in decisions can be measured within Ajzen's (1985) theory of planned behaviour. Evidence is reviewed which shows that the intentions of experts are based more on product benefits compared with novices but two new studies of investor intentions provided conflicting evidence in support of the hypothesis.