How do stated attribute cut-off values influence attention and subsequent willingness to pay? Evidence from an eye-tracking food choice experiment

Individuals have cognitive limits and systematically rely upon heuristics when making decisions. One such example is threshold-based heuristics where decision makers use attribute cut-offs to screen and eliminate alternatives from their choice set that do not satisfy their cut-off levels for critical attributes. Failure to account for information on attribute cut-offs can generate biased estimates in choice models. This study addresses stated attribute cut-offs in discrete choice experiments using eye-tracking technology. We assess the relationship between hard stated attribute cut-off levels and visual attention data extracted from eye tracking. We then investigate how incorporating this information into choice models affects willingness to pay. Three main results can be reported: (1) a considerable number of individuals stated that they have attribute cut-offs, (2) attention increased for attributes that individuals stated they have a cut-off for and (3) stated cut-off levels and visual attention independently affected individuals' willingness to pay, with weak interaction effects. We discuss the implications of the results for researchers and business practitioners.