When it's better to compromise.(Brief Article)

When consumers make decisions, they do not always have an obvious choice. This means they may have to consider the context around the focal decision, to help compare and contrast the alternatives. The compromise effect is one kind of context and describes the way that consumers tend to choose the middle or compromise option when the other two positions appear much the same. The reason that consumers choose the compromise option is because they want to minimise their expected loss. This is different from the attraction effect, where one option is superior on desirable attributes. Then there is no need for compromise.

Consumers who experience higher decision anxiety are …