Decision-Making Research Provides Key Insights for Real Estate Industry

Ann Mirabito

Dr. Ann Miribito, author of "Show Me the Number: Communicating Probabilities and Tradeoffs in Real Estate Transactions," featured in the September 2013 issue of the Keller Center Research Report.

The Keller Center for Research recently published an article on decision-making conducted by Hankamer School of Business' Assistant Professor of Marketing, Dr. Ann Mirabito. "Show Me the Number: Communicating Probabilities and Tradeoffs in Real Estate Transactions," featured in the September 2013 issue of the Keller Center Research Report, discusses key implications of decision-making research for real estate professionals.

Mirabito submitted the article to the Keller Center Research Report, which translates academic research from a variety of disciplines for a practitioner audience, because she values the positioning and goals of the journal.

"Academic research involves discovery of solutions to important, vexing problems. It can make people's lives better. The Keller Center Research Report makes academic research accessible. That way, people can do more good with it," she said.

Mirabito's original research focuses on how consumers interpret information when the outcomes are uncertain. "Oftentimes, we have to make decisions with incomplete information. A patient might have to choose between two drugs; one is more effective but it has bigger side effects. Or a homebuyer has to decide whether to buy a house today and lock in lower interest rates, or hold off in anticipation that the seller might cut the price" she said.

Specifically, Mirabito wanted to understand the psychological processes people use when they're evaluating numerical or graphical information. Using an experimental research design, Mirabito and her associates presented research participants with a scenario involving a tradeoff to see how information format affects choice, comprehension, and accuracy. Some subjects received information in numerical form, some in graphical form, and others received a mix of numerical and graphical information.

"We thought numerical information would help improve accuracy, and that graphical information would improve comprehension. Our assumption was not actually true; we found numerical information actually improves comprehension," Mirabito said.

While the Keller Center Research Report features work from authors around the globe, the journal enjoys the opportunity to feature articles from Baylor faculty members in each issue.

"Our marketing department produces top-notch insight through research. Some of our faculty's research involves consumer behavior, while others focus on managerial issues shaping go-to-market strategies. Dr. Mirabito's research concerning how consumers process complex information can help real estate professionals decide how to present information to clients," Keller Center Research Report Editor Andrea Dixon said.

The Keller Center for Research at Baylor University is a trusted source for leading-edge, academic research positioned for the real estate industry. The Center's team of Faculty, Staff, and Graduate Assistants engage with academics and consultants from around the globe to highlight the latest research in the areas of Marketing and Sales, Management, Technology, and Ethics, among others, with implications for today's real estate professionals.

For more information on the Keller Center for Research, visit
https://www.baylor.edu/business/kellercenter.