Presenting time‐series data as absolute versus relative changes impacts judgments and choices

Abstract

AbstractWe examined how different ways of presenting time‐series data affect consumer judgments and behaviors. Specifically, we compared the use of absolute terms (e.g., actual dollar change) versus relative terms (e.g., annual percentage change) in charts. Our findings revealed that absolute charts tend to have a more positive visual slope than relative charts, leading consumers to extrapolate these trends and expect faster growth in quantities. In Study 1, participants who viewed COVID‐19 data in absolute charts, as opposed to relative charts, donated more money to a COVID‐19‐related charity and were less inclined to challenge quarantine advisories throughout the day. In Study 2, we observed that participants preferred investing in a country when its GDP was presented in an absolute chart, and visual trends were found to drive this effect. Study 3 demonstrated that individuals placed greater emphasis on absolute charts depicting population growth, particularly when the unit of measurement was more meaningful. Overall, the choice to represent data in absolute versus relative terms has a far reaching impact on judgments and choices.