Accuracy, Confidence, and Calibration of Consumer Knowledge

This dissertation sought to apply the construct of knowledge calibration to the domain of consumer research. Product involvement, product type, and general self-efficacy were postulated to influence calibration of consumer knowledge. Need for cognition was proposed as a moderator to the relationships between (a) product involvement and calibration, and (b) product type and calibration. Calibration, in turn, was proposed to affect decision-making accuracy. The proposed model was informed by research in the streams of psychology and consumer behavior. Insurance and music were chosen as the two product categories based on pretests. The questionnaire, measuring the constructs under study, was developed based on literature review, expert interviews, and pretests among knowledgeable respondents. Data was collected from 332 students enrolled in undergraduate business courses. Regression analysis was used to test the proposed effects. Moderation was examined using subgroup analysis. Results show that four of the ten hypotheses were supported at the .05 level of significance. One hypothesis was partially supported (linear effect instead of the proposed curvilinear effect). The key result of the study is the empirical validation of the calibration – decision-making relationship. It was also found that significant proportions of consumers are underconfident in their knowledge. As an early examination of knowledge calibration in the consumer domain, the findings are promising. Several avenues of possible research have been highlighted.