Effects of knowledge types on choice quality and perceptions of choice performance

Two types of knowledge used in making choices are examined: knowledge of product‐specific information and knowledge of a choice strategy. Product‐specific information comprises information about available alternatives, including features and their importance. Strategy information includes knowing an appropriate strategy for integrating and evaluating information about alternatives, as well as knowing how to implement the strategy. The effects of these knowledge types, both singly and jointly, upon choice quality and perceptions of choice quality are examined in two studies. The results of the first study indicate that the knowledge types are differentially beneficial, and that subjects tend to be more overconfident about the perceived quality of their choices when they have product‐specific information than when they have choice strategy information. The hypothesis that this difference is due to subjects' greater awareness of produce‐specific information, rather than strategy information, is examined and supported in the second study. Implications for marketing and public policy are discussed. © 1996 John Wiley & Sons, Inc.