Yu-Wei Chang, Master, Graduate Institute of International Business, National Taipei University, No. 151, University Road, Sanhsia District, 23701, New Taipei City, Taiwan, ROC.

Tser-Yieth Chen, Professor and Chairman, Graduate Institute of International Business, National Taipei University, No. 151, University Road, Sanhsia District, 23745, New Taipei City, Taiwan, ROC.

Teng-Tsai Tu, Assistant Professor, Graduate Institute of International Business, National Taipei University, No. 151, University Road, Sanhsia District, 23745, New Taipei City, Taiwan, ROC.

Abstract
The aim of this study is to investigate how consumers react to decoy effect. Decoy effect is a phenomenon that an option added increases the favorable perceptions of similar, but superior, items in the choice set, which indicates that the preference of people can be changed by adding a decoy option. We then want to realize the impact of those factors on decoy effects, and the intensity of effects. We employed quota-sampling method and classified the sample by districts in Taiwan and we collected 404 valid questionnaires by web and finished designed sample structure in spring 2016. Empirical results of this study show that domain knowledge and self-confidence significantly attenuates the intensity of decoy effect. We inference that experts do not need to refer the information provided by choice set, and high self-confidence people more likely to trust their own experience in nature.

Keywords
decoy effect, attraction effect, domain knowledge, personal traits, decision making

Cite this paper
Yu-Wei Chang, Tser-Yieth Chen, Teng-Tsai Tu, The Impacts of Domain Knowledge and Personal Traits on Decoy Effects , SCIREA Journal of Management. Volume 1, Issue 1, October 2016 | PP. 1-21.

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