Friday 28 September 2012

Study shows how people shift expectations and goals

Study shows how people shift expectations and goals (9/28/2012): Sally and Harry are about to invest in their company's 401(k) plan. Sally chooses the best performing mutual fund, which has high risks but boasts a 25 percent year-to-date return. Harry, after considering the tradeoffs between risks and rewards, opts for a lower performing fund with an 8 percent year-to-date return. When they receive their next quarterly performance reports, both Sally and Harry discover that their funds have met their initial expectations. Are they satisfied? If not, why? And how could their levels of satisfaction be improved?

One might assume that Sally and Harry would be equally pleased, since both have met their expectations. However, new research by Gita Johar, the Meyer Feldberg Professor of Business and senior vice dean of Columbia Business School, and Cecile K. Cho of the University of California, Riverside, shows that this equation is not so simple. Instead of comparing performance to an initial goal, consumers sometimes evoke an entirely different standard. In fact, poor performers tend to compare results to the highest potential results, and are therefore dissatisfied, the authors found. However, if these performers are reminded that they set their own goals-and that these goals were met-they are as satisfied as better performers. 

Visit safety photos

No comments:

Post a Comment