Subjective Expected Utilities Theory

Subjective expected utilities (SEU) theory is one of the oldest attempts to explain how people make decisions. The theory is based on the intuitively simple proposition that people make decisions to maximize positive outcomes and minimize negative ones. Persuasion theory pursues insights to understand how people make decisions. The assumption behind this line of inquiry is that once researchers and practitioners know how people make decisions, messages can be used to strategically influence the decisions people make. That premise, for instance, is the basic assumption underlying marketing communication, including promotion and publicity. It also has ethical implications that arise from the fear that practitioners can manipulate attitudes and behaviors.

SEU theory is closely connected to learning theory explanations of the process of persuasion. Learning theory reasons that people learn to make rewarding decisions, which are preferred to those with negative consequences. To that end, people acquire information they use to form attitudes and develop motivations that lead toward positive outcomes and away from negative ones. Advocates of learning theory know that people acquire attitudes through learning experiences rather than responding to motives based on innate drives. The assumptions of this theory are essentially timeless. Philosophy, the predecessor of persuasion theorists, has long argued that people seek positive outcomes and avoid negative ones. The problem, at times, with philosophical analysis of these choices is that people make decisions that are too narrow or shortsighted. Thus, for instance, although a decision might appear to maximize rewards at the moment, it leads to negative consequences for the long run. Consequently, children would rather play than do homework. Play leads to enjoyment, a positive outcome. However, if children only learn to play and do not study and acquire knowledge, they may be cut off from a lifetime of increased enjoyment.

For reasons such as this, SEU theory is alluring in its simplicity but devilishly difficult to use to make predictions that are subjected to careful research and thoughtful applications of strategic communication. For instance, we know that even though television advertising purveys a wide array of appealing products with promises of a nice and enjoyable life, not every viewer buys all of the available products. Therefore, we know intuitively that the fundamental premise of SEU theory is both true and too much of a generalization. People simply don't opt for all that is presented as positive. They make more complex decisions.

The term subjective in the theory suggests that individuals make calculations based on available data of what choices are best. The theory assumes that two individuals may make substantially or marginally different choices based on their individual subjective calculations of outcomes. In this sense, we know that individuals make decisions that are perceived and predicted to be best for them. People like to hold useful attitudes, those that foster satisfying decisions. For this reason, they acquire information and fine-tune the decision they make. They can even try out the decision, such as purchase a [Page 828]product or give to a charity, to see in their own judgment whether the choice is productive. We also know that people can differ substantially in what they find appealing. Some tastes, such as eating hot peppers, have to be acquired and cultivated. But, the underlying premise is that the choices, however cultivated, form attitudes that lead to motivations that have positive consequences.

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