Willingness to pay for advice: The role of rational and experiential processing

Everyday, millions of decision makers receive advice from one or more sources. Although research has addressed some of the issues concerning how people take and use advice that they are given, less is known about the psychological processes that underlie decision makers’ willingness to pay for advice. In the present research, we explore the important role that mode of information processing and decision-specific knowledge have on willingness to pay for advice. In a pretest and two experiments, we use a priming procedure to induce either a rational or experiential mode of processing. We find that people processing information rationally are willing to pay substantially more for advice than those who are processing information experientially, and that this effect is moderated by the individual’s decision-specific knowledge.