Do Customers Learn from Experience?
Vardit Landsman, Itai Ater
New research suggests that a specific type of customer experience can systematically lead to worse, not better, choices by consumers.
Most evidence from economic theory suggests that experienced consumers make better choices. Even when we display the behavioural biases that lead us to less optimal economic outcomes, studies show that experience can ameliorate these initial biases and steer us back towards better choices. But does this principle hold true of all experiences?