Non‐compromise Extreme Effect: Attribute Discriminability and Preference for an Extreme Alternative

In this research, we show that despite a choice set configuration that promotes the compromise effect, consumers do not always prefer the middle alternative but rather choose the extreme option when one of the attributes has higher discriminability than the other. We use findings from the numerical cognition literature to demonstrate why this happens and, more importantly, provide a novel theoretical framework for what we call the "non-compromise extreme effect." The findings are unique to the compromise effect literature, which has consistently shown the effect to be robust. More importantly, the findings show that a brand can successfully compete with a well-established competitor when it performs better on the low performing attribute, which gives a leeway to managers to take share away from the competitor.