Marketing Publications

Extreme Opponents of Genetically Modified Foods Know the Least But Think They Know the Most

Anonymous — Wed, 29 Apr 2020 20:29:14 +0000

Extreme Opponents of Genetically Modified Foods Know the Least But Think They Know the Most Anonymous (not verified) Wed, 04/29/2020 - 14:29

There is widespread agreement among scientists that geneti-cally modified foods are safe to consume and have the potential to provide substantial benefits to humankind3. However, many people still harbour concerns about them or oppose their use4,5. In a nationally representative sample of US adults, we find that as extremity of opposition to and con-cern about genetically modified foods increases, objective knowledge about science and genetics decreases, but per-ceived understanding of genetically modified foods increases. Extreme opponents know the least, but think they know the most. Moreover, the relationship between self-assessed and objective knowledge shifts from positive to negative at high levels of opposition. Similar results were obtained in a paral-lel study with representative samples from the United States, France and Germany, and in a study testing attitudes about a medical application of genetic engineering technology (gene therapy). This pattern did not emerge, however, for attitudes and beliefs about climate change.

Marketing: Fernbach, P. M., Light, N., Scott, S. E., Inbar, Y., & Rozin, P. (2019). Extreme opponents of genetically modified foods know the least but think they know the most. Nature Human Behaviour

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Fernbach, P. M., Light, N., Scott, S. E., Inbar, Y., & Rozin, P. (2019).

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Kids, Caregivers, and Cartoons: The Impact of Licensed Characters on Food Choices and Consumption

Anonymous — Wed, 15 Apr 2020 21:23:08 +0000

Kids, Caregivers, and Cartoons: The Impact of Licensed Characters on Food Choices and Consumption Anonymous (not verified) Wed, 04/15/2020 - 15:23

This research examines effects of on-package licensed characters on children’s and caregivers’ choices of healthy and indulgent food and children’s consumption amount. The authors propose that food liking exerts the greatest influence on children’s choices and consumption, such that the impact of on-package characters will be limited to choices between equally liked options. Caregivers’ choices are primarily influenced by their food goals for their children; thus, the impact of characters will likewise be limited to caregivers’ within-category choices. Two experiments show that a character influences children’s choices between two same-category options but not between indulgent and healthier options. A third experiment reveals that food liking influences amount consumed, while the presence of a character influences neither amount consumed nor food liking. Two additional experiments show that characters influence caregivers’ choice between the same foods, but not between different food types or intention to purchase a food. The expanded framework for the effects of licensed characters—taking into account choice versus consumption, children versus caregivers, and healthy versus unhealthy foods—enhances understanding for consumers, practitioners, and policy makers.

Leonard, Bridget, Margaret C. Campbell, and Kenneth Manning (2019), “Kids, Caregivers and Cartoons: The Impact of Licensed Characters on Food Choices and Consumption,” Journal of Public Policy & Marketing, 38(2): 214-231. doi: 10.1177/0743915619827919

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Leonard, Bridget, Margaret C. Campbell, and Kenneth Manning (2019)

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Circle of Incompetence: Sense of Understanding as an Improper Guide to Investment Risk

Anonymous — Thu, 15 Aug 2019 02:54:18 +0000

Circle of Incompetence: Sense of Understanding as an Improper Guide to Investment Risk Anonymous (not verified) Wed, 08/14/2019 - 20:54

Consumers incorrectly rely on their sense of understanding of what a company does to evaluate investment risk. In three correlational studies, greater sense of understanding was associated with lower risk ratings (Study 1) and with prediction distributions of future stock performance that had lower standard deviations and higher means (Studies 2 and 3). In all studies, sense of understanding was unassociated with objective risk measures. Risk perceptions increased when the authors degraded sense of understanding by presenting company information in an unstructured versus structured format (Study 4). Sense of understanding also influenced downstream investment decisions. In a portfolio construction task, both novices and seasoned investors allocated more money to hard-to-understand companies for a risk-tolerant client relative to a risk-averse one (Study 5). Study 3 ruled out an alternative explanation based on familiarity. The results may explain both the enduring popularity and common misinterpretation of the “invest in what you know” philosophy.

Long, A. R., Fernbach, P. M., & De Langhe, B. (2018). Circle of incompetence: Sense of understanding as an improper guide to investment risk. Journal of Marketing Research, 55(4), 474-488. doi:10.1509/jmr.16.0429

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Long, A. R., Fernbach, P. M., & De Langhe, B. (2018)

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Judgments Based on Stocks and Flows: Different Presentations of the Same Data Can Lead to Opposing Inferences

Anonymous — Thu, 15 Aug 2019 02:49:59 +0000

Judgments Based on Stocks and Flows: Different Presentations of the Same Data Can Lead to Opposing Inferences Anonymous (not verified) Wed, 08/14/2019 - 20:49

Time-series data—measurements of a quantity over time—can be presented as stocks (the quantity at each point in time) or flows (the change in quantity from one point in time to the next). In a series of six experiments, we find that the choice of presenting data as stocks or flows can have a consequential impact on judgments. The same data can lead to positive or negative assessments when presented as stocks versus flows and can engender optimistic or pessimistic forecasts for the future. For example, when employment data from 2007 to 2013 are shown as flows (jobs created or lost), President Obama’s impact on the economy during his first year in office is viewed positively, whereas when the same data are shown as stocks (total jobs), his impact is viewed negatively. The results highlight a challenge that accompanies the growing reliance on data and analytics for decision making within organizations: seemingly benign choices—such as that between two informationally equivalent data presentations—can substantively impact how data are interpreted and used, even though the underlying information is the same.

Spiller, S. A., Reinholtz, N., & Maglio, S. J. (2019). Judgments based on stocks and flows: Different presentations of the same data can lead to opposing inferences. Management Science, doi:10.1287/mnsc.2019.3284

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Reinholtz, N., Spiller, S., & Maglio, S. (2016)

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The Charm of Behavior-Based Pricing: When Consumers’ Taste is Diverse and the Consideration Set is Limited.

Anonymous — Thu, 15 Aug 2019 02:37:05 +0000

The Charm of Behavior-Based Pricing: When Consumers’ Taste is Diverse and the Consideration Set is Limited. Anonymous (not verified) Wed, 08/14/2019 - 20:37

Technology is making it easier for firms to track consumers’ purchase history and leverage the information when setting prices. This article explores the practice of behavior-based pricing (BBP) in a horizontally differentiated market where consumers’ taste is diverse and the consideration set is limited. The analysis identifies a novel mechanism that can help firms earn more profits with BBP than without it. Prior research shows that BBP intensifies price competition for new consumers. The authors show that if consumer valuation is low, the lower price can help expand sales to consumers for whom only the second preferred product is available, and the resulting increase in revenue more than offsets the loss in revenue because of the intensified price competition. The opposite result occurs if product valuation is high. Moreover, the difference in the price charged for old and new consumers under BBP decreases with the diversity in consumers’ taste if consumer valuation is low. The result, however, is reversed if consumer valuation is high.

Amaldoss, W., & He, C. (2019). The charm of behavior-based pricing: When consumers’ taste is diverse and the consideration set is limited. Journal of Marketing Research, 2224371983494. doi:10.1177/0022243719834945

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Amaldoss, W., & He, C. (2019)

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A Model of Customer Reward Programs With Finite Expiration Terms

Anonymous — Thu, 15 Aug 2019 02:19:47 +0000

A Model of Customer Reward Programs With Finite Expiration Terms Anonymous (not verified) Wed, 08/14/2019 - 20:19

A little-understood phenomenon of customer reward programs is the prevalent use of finite reward expiration terms. We develop a theoretical framework to investigate the economic rationale behind this phenomenon and the trade-off between short and long expiration terms. In our model, a monopolistic firm sets the expiration term, along with the price and reward size, and interacts with consumers over an infinite horizon. Consumers are heterogeneous in shopping probabilities and product valuations and forward-looking in making purchase decisions. We find that a customer reward program with a finite expiration term can increase firm profits when (i) the valuation difference within the consumer population is intermediate and (ii) the shopping probabilities and valuations are negatively correlated among consumers. Several model extensions confirm the robustness of these results. Finally, we conduct an empirical investigation on the reward program practice of the top 100 U.S. retailers, which provides directional support for several key theoretical predictions.

Sun, Y., & Zhang, D. (2019). A model of customer reward programs with finite expiration terms. Management Science, doi:10.1287/mnsc.2018.3115

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Sun, Y., & Zhang, D. (2019).

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Conceptualizing Consciousness in Consumer Research: A Brief Summary

Anonymous — Sun, 17 Jun 2018 13:45:07 +0000

Conceptualizing Consciousness in Consumer Research: A Brief Summary Anonymous (not verified) Sun, 06/17/2018 - 07:45

When consumers think about explaining the actions of themselves and others, it is very common for them to look first at the relationship between their thoughts and those actions. They often assume that the thoughts and images they have in mind (a.k.a., the contents of consciousness) actually cause action (for example, someone might say to herself, “I thought about buying this dress, then I bought the dress. Therefore, the thought caused me to buy the dress”). In this paper, Williams and Poehlman argue that consumer behavior researchers make the same mistake and that the vast majority of research on consumer behavior assigns too big of a role of conscious thoughts as the most important causes of behavior.

The authors argue that instead of starting by examining the conscious thoughts that consumers associate with their behavior, researchers should “consider consciousness second,” in order make sure that they take the time to identify causes of behavior that are less obvious and more difficult to measure than simply asking people about their thoughts. If “bad” consumer behavior is caused by conscious thinking, then changing that behavior can be as simple as modifying thoughts. Much public policy aimed at helping consumers make better decisions takes this tack. However, if bad behavior is caused by deeper, more bodily factors, then it could be more effective to modify those influences directly (for example, by prescribing probiotics, changing diets, and breaking habits by changing the physical surroundings that trigger habits), than simply changing what people think.

Williams, L. E., & Poehlman, T. A. (2016). Conceptualizing consciousness in consumer research. Journal of Consumer Research, 44(2), 231-251.

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Lawrence E. Williams and T. Andrew Poehlman Journal of Consumer Research (2017)

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