Responding to Inconsistent Performance Feedback on Multiple Goals: The Contingency Role of Decision Maker's Status in Introducing Changes

Abstract

We advance performance feedback theory by showing how decision makers respond to inconsistent performance feedback on multiple goals, and how status shapes these responses for introducing behavioral changes. We argue that inconsistent performance feedback on primary and secondary goals decrease decision makers' propensity to initiate changes, while their high status operates both as a critical asset that motivates solution search for fixing a performance shortfall on a primary goal and as a resource buffer against self-enhancement beliefs when addressing inconsistent feedback on multiple goals. We test our arguments using a dataset of 107,791 Airbnb properties and find support for our hypotheses. We discuss the contributions of our findings to the performance feedback theory.