Psychological ownership in egocentric categorization theory

Abstract

Egocentric categorization theory proposes that thinking of a product as owned (vs. unowned) influences consumer response to the product by systematically changing the way consumers mentally represent that product. Consumers who become owners of an item mentally classify it in the category of self, whereas those who remain non-owners mentally classify the item outside of that category. Categorization principles suggest that the way people perceive and respond to items they classify in a category differs from the way they perceive and respond to items they classify as external to that category. Therefore, thinking of a product as owned (vs. unowned) should lead people to make different judgments and decisions about the same product in ways that align with categorization principles. This chapter provides a brief overview of egocentric categorization theory (or ECT); positions its contribution relatively to two pertinent theories, specifically social categorization and possession attachment; and explores ECT's implications for ownership in product judgment and consumer choice. The chapter then highlights empirical evidence for the role of psychological ownership in ECT and outlines how ECT principles can be used to amend adverse selection problems through induction of psychological ownership.