scholarly journals Preference Dynamics in Sequential Consumer Choice with Defaults

2020 ◽  
Vol 57 (6) ◽  
pp. 1096-1112
Author(s):  
Bas Donkers ◽  
Benedict G.C. Dellaert ◽  
Rory M. Waisman ◽  
Gerald Häubl
Keyword(s):  
Consumer Choice ◽  
Consumer Preferences ◽  
Spillover Effects ◽  
High Price ◽  
Product Choice ◽  
Sequential Decision ◽  
Induced Changes ◽  
The Impact ◽  
Practical Implications ◽  
Decision Settings

This research examines the impact of defaults on product choice in sequential-decision settings. Whereas prior research has shown that a default can affect what consumers purchase by promoting choice of the preselected option, the influence of defaults is more nuanced when consumers make a series of related choices. In such a setting, consumer preferences may evolve across choices due to “spillover” effects from one choice to subsequent choices. The authors hypothesize that defaults systematically attenuate choice spillover effects because accepting a default is a more passive process than either choosing a nondefault option in the presence of a default or making a choice in the absence of a default. Three experiments and a field study provide compelling evidence for such default-induced changes in choice spillover effects. The findings show that firms’ setting of high-price defaults with the aim of influencing consumers to choose more expensive products can backfire through the attenuation of spillover. In addition to advancing the understanding of the interplay between defaults and preference dynamics, insights from this research have important practical implications for firms applying defaults in sequential choices.

Earning the Right to Indulge: Effort as a Determinant of Customer Preferences toward Frequency Program Rewards

2002 ◽  
Vol 39 (2) ◽  
pp. 155-170 ◽  
Author(s):  
Ran Kivetz ◽  
Itamar Simonson
Keyword(s):  
Alternative Explanation ◽  
Consumer Preferences ◽  
Marketing Mix ◽  
Customer Relationship ◽  
Customer Preferences ◽  
The Individual ◽  
The Right ◽  
The Impact ◽  
Level Of Effort ◽  
Practical Implications

Although frequency programs (FPs) have become ubiquitous in the marketplace and a key marketing-mix tool for promoting customer relationship and loyalty, little is known about the factors that determine how such programs are evaluated by consumers. The authors investigate the impact of the level of effort participants must invest to obtain the reward on the types of rewards they prefer and, consequently, on the decision to join the FP. In particular, the authors propose that higher required effort shifts consumer preferences from necessity to luxury rewards, because higher efforts reduce the guilt that is often associated with choosing luxuries over necessities. A series of studies with approximately 3100 consumers demonstrated that (1) higher program requirements shift preferences in favor of luxury rewards, (2) this effect is also observed when consumers choose between luxury and necessity rewards (of the same value) that they themselves proposed, and (3) the effect of program requirements on reward preferences is stronger among consumers who tend to feel guilty about luxury consumption and among those for whom the effort is invested in the context of work rather than pleasure. In addition, contrary to an alternative explanation based on the notion that higher requirements signal higher value of luxury rewards, the authors show that (1) when the program requirements are held constant but the individual consumer's effort is higher, the shift in preference toward luxuries is still observed and (2) increasing the monetary cost of participating in the FP decreases consumer preferences for luxury rewards. The authors discuss the theoretical implications of this research and the practical implications with respect to the design, targeting, and promotion of FPs.

Study on the importance of wine bottle design on consumer choices

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Antonio Chamorro ◽  
José Manuel García-Gallego ◽  
Hermelinda da Conceição Trindade-Carlos
Keyword(s):  
Consumer Choice ◽  
Consumer Preferences ◽  
Brand Name ◽  
Design Decisions ◽  
Content Type ◽  
Design Elements ◽  
Probabilistic Sampling ◽  
Level Of Knowledge ◽  
Practical Implications ◽  
Wine Bottle

PurposeThe aim of this study is to analyse the importance of bottle design in relation to other purchasing criteria, and also to understand which design elements are most attractive to consumers.Design/methodology/approachA survey of a sample of 437 wine drinkers was carried out in Portugal using non-probabilistic sampling. The technique used was conjoint analysis based on the SPSS conjoint module.FindingsOne of the key findings was the low importance of bottle design in shaping consumer preferences compared to other attributes (origin, price and category of wine). In terms of design elements, the label had the biggest influence on consumer choice, followed by the type of bottle, bottle seal and brand name, in that order. Differences in consumer choice were evident according to the level of knowledge of wine and frequency of consumption.Practical implicationsThe findings of this study provide guidance for Portuguese wineries as regards the marketing and design decisions of their products and packaging.Originality/valueThis study sheds new light on the importance of wine bottle design on consumer preferences. Previous studies in the area have proved to be minimal and heterogeneous.

The Effect of Forced Choice on Choice

2003 ◽  
Vol 40 (2) ◽  
pp. 146-160 ◽  
Author(s):  
Ravi Dhar ◽  
Itamar Simonson
Keyword(s):  
Consumer Preferences ◽  
Forced Choice ◽  
Attraction Effect ◽  
Compromise Effect ◽  
Implicit Assumption ◽  
Industry Studies ◽  
General Proposition ◽  
The Impact ◽  
Choice Option ◽  
Practical Implications

Whereas most academic and industry studies of consumer preferences and decision making involve forced choice (i.e., participants are told to choose one of the presented product or service alternatives), buyers usually also have the option not to select any alternative. An implicit assumption in the experimental practice of forcing choice is that the no-choice option draws proportionately from the various available alternatives, such that the qualitative conclusions are unaffected. However, the authors propose that the no-choice option competes most directly with alternatives that buyers tend to select when they are uncertain about their preferences. Building on this general proposition, the authors show that the introduction of the no-choice option strengthens the attraction effect, weakens the compromise effect, and decreases the relative share of an option that is “average” on all dimensions. They also examine the mechanisms underlying the impact of having the option not to choose and the conditions under which the no-choice option is likely to affect relative option shares. The results are consistent with the notion that the no-choice option provides an alternative way of resolving difficult choices that is not available when subjects are forced to choose. The authors discuss the theoretical and practical implications of this research.

Innovative startups in Italy. Managerial challenges of knowledge spillovers effects on employment generation

2020 ◽  
Vol 24 (10) ◽  
pp. 2573-2596 ◽  
Author(s):  
Gustavo Barboza ◽  
Alessandro Capocchi
Keyword(s):  
Cluster Formation ◽  
Spillover Effects ◽  
Knowledge Spillover ◽  
Economic Sectors ◽  
Employment Level ◽  
Content Type ◽  
Industry Competition ◽  
Employment Generation ◽  
The Impact ◽  
Practical Implications

Purpose This paper aims to investigate the impact of knowledge spillover effects (KSE) on employment levels using a sample of 245 Italian Innovative startup companies created as a result of the legislative changes of Law Decree 179/12 introduced in Italy in 2012. Design/methodology/approach This study uses a parsimonious model with the employment level as the dependent variable. The paper tests for the impact that the measures of industry competition, specialization and diversity have on the level of employment in the Innovative Startup sector in Italy. The data uses a sample of 245 firms, across 20 geographic regions in Italy for three economic sectors at the 2-Dig NAICS classification. Findings The empirical results provide evidence in favor of regional specialization as the main force to create and transfer knowledge resulting in increased employment; while higher levels of competition and a more diverse regional production bases result in lower firm employment levels. Employment levels for these firms are also time-dependent, and thus mainly determined at the time of the firm’s creation. This study also found a lack of technological convergence across regions, that are inherent regional differences are not bridged by knowledge spillover effects. Research limitations/implications This paper is based on a sample of Italian Innovative Startups and consequently, further research with a potentially larger sample and, perhaps, a sample across countries could also shed some light on the issues relating to KSE and their effects on employment generation and firm formation. Practical implications From a practical point of view, the results indicate that regional disparity and limited transmission of KSE across regions remain an impediment to the flow of knowledge. This in turn may limit the development of entrepreneurial activities and further development of new firms. Practical implications regarding knowledge management indicate that firms face time and spatial challenges when developing, transferring and acquiring knowledge. In sum, the evidence points out in favor of existent and persistent regional heterogeneity in terms of economic and technological specialization as sources of employment. Originality/value This research adds to the empirical evidence focusing on the effects of knowledge spillover effects in the Innovative Startup segment of the economy. This research highlights the applicability of knowledge spillover effects accounting for levels of industry competition, specialization and diversity. We also provide a measure of cluster formation and concentration at the sectoral and regional levels. Thus, the research provides a better understanding under which conditions knowledge is more likely to have positive or negative effects on employment generation.

Sustainability labelling as a challenge to legitimacy: spillover effects of organic Fairtrade coffee on consumer perceptions of mainstream products and retailers

2015 ◽  
Vol 32 (6) ◽  
pp. 422-431 ◽  
Author(s):  
Angela Anagnostou ◽  
Paul T.M. Ingenbleek ◽  
Hans C.M. van Trijp
Keyword(s):  
Design Methodology ◽  
Spillover Effects ◽  
Consumer Perceptions ◽  
Content Type ◽  
Organic Products ◽  
The Impact ◽  
Practical Implications

Purpose – This study aims to better understand the impact of norm-challenging products on consumers’ perceptions of mainstream products and retailers. By showing that sustainable market offerings are feasible, products with sustainability labels, such as Fairtrade and organic products, implicitly question the legitimacy of mainstream brands in the market. Design/methodology/approach – This paper uses an experiment, based on scenarios that portray the consumer in a shopping situation for their usual coffee brand when they encounter an organic Fairtrade coffee. The paper distinguishes a situation in which the sustainable and the mainstream products compete, from a situation in which the two brands collaborate. Findings – The results show that norm-challenging products deteriorate perceptions of mainstream products and the companies that produce them but improve the image of retailers that include these products in their assortment. If labelled products are sold under the heading of mainstream brands, they still spill over negatively to other products of that brand but positively to the brand company. Practical implications – The spillover effects of norm-challenging products to mainstream companies are an incentive for mainstream firms to enhance the sustainability of their activities. Originality/value – Whereas much literature has focused on the first steps of creating awareness among consumers for sustainability, this paper is the first that tries to understand how typical consumers of mainstream brands develop preferences for products that are more sustainable.

scholarly journals Healthy Taste of High Status: Signaling Status at Restaurants

2019 ◽  
Vol 61 (1) ◽  
pp. 40-52
Author(s):  
Joongwon Shin ◽  
Anna S. Mattila
Keyword(s):  
Consumer Preferences ◽  
High Status ◽  
Common Belief ◽  
Healthy Foods ◽  
Freedom Of Choice ◽  
Luxury Goods ◽  
Status Signaling ◽  
The Impact ◽  
Positive Effect ◽  
Practical Implications

Despite the prevalence of a common belief associating healthy eating with high status, the effect of such an intuitive association on consumer behavior remains unexamined. To fill this void, this research explores status signaling in a restaurant context. Two studies were conducted to examine the impact of consumers’ need for status on their preferences for healthy dining options. Results from Study 1 show that need for status has a positive effect on consumer preferences for a restaurant with a healthy (vs. less healthy) menu. These results indicate that although dining out can be a means to convey high status, such a symbolic role is limited to restaurants with healthy (vs. less healthy) options. Results from Study 2 demonstrate that need for status has a positive effect on anticipated satisfaction with healthy dining options when consumers’ choice is unconstrained (vs. constrained). These results indicate that restaurants offering healthy foods can inadvertently lose their status-signaling value by limiting consumers’ freedom of choice. This research adds to the hospitality literature by illuminating an unexamined facilitator of healthy dining: need for status. It also extends the literature by demonstrating that consumers may derive status-signaling value not only from luxury goods but also from more mundane hospitality experiences. Additional theoretical and practical implications are discussed.

Does impact of price endings differ for the non-green and green products? Role of product categories and price levels

2018 ◽  
Vol 35 (2) ◽  
pp. 143-156 ◽  
Author(s):  
Avinash Tripathi ◽  
Neeraj Pandey
Keyword(s):  
High Price ◽  
Green Products ◽  
Content Type ◽  
Product Categories ◽  
Price Levels ◽  
Price Endings ◽  
Product Appeal ◽  
Price Ending ◽  
The Impact ◽  
Practical Implications

Purpose The discount image associated with odd-ending prices has led to its extensive use by retailers. The purpose of this study is to assess the impacts and applications of nine-ending vs round-ending prices on the purchase of green and non-green products at different price levels and under different purchase motivations. Design/methodology/approach Three experiments are conducted. The first experiment is a 2 (price ending: nine-ending vs round-ending) × 2 (product appeal: green vs non-green) between-subjects study; the second experiment is a 2 (price ending: nine-ending vs round-ending) × 2 (price level: low price vs high price) × 2 (product appeal: green vs non-green) between-subjects study; and the third experiment examined buyers’ preferences of price endings regarding the purchase of green products having either utility (utilitarian) or pleasure (hedonic) motivation. Findings This research highlights that consumers prefer zero-ending prices for green products and pleasure motivation products, but they prefer odd endings for low-priced and utilitarian products. These results support the increased reception of round-ending prices. Accordingly, this study contributes to the literature by providing a boundary condition for odd-ending prices. Specifically, the study finds that the effect of nine-ending prices becomes weaker as the price of the product increases. Practical implications The findings of this study have practical implications for managers, as the results indicate that pricing green products and high-quality perception products using round digits and pricing low-priced and utility perception products using odd digits will increase consumers’ purchase intentions. Moreover, pricing the products using round-ending prices will reduce the perception of low quality and deter brand loyalty emanating from a low-priced/discount image of a product. Originality/value This research contributes to theoretical and practical aspects of behavioural pricing literature. This research uncovers the buyers’ distinct preferences for zero-ending prices and odd-ending prices when purchasing different products based on different motivations and varied price levels. This is the first research of its kind to explore and compare the impact of psychological pricing on green products. The study also resolves a contradiction in past literature regarding the use of nine-ending prices by providing boundary conditions.

On the money: characterizing banking and lending in the California cannabis industry

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zoë Plakias ◽  
Margaret Jodlowski ◽  
Taylor Giamo ◽  
Parisa Kavousi ◽  
Keith Taylor
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Fixed Effects ◽  
Spillover Effects ◽  
Banking Regulation ◽  
Content Type ◽  
Extensive And Intensive Margins ◽  
Quantitative Results ◽  
The Impact ◽  
Practical Implications

Purpose Despite 2016 legalization of recreational cannabis cultivation and sale in California with the passage of Proposition 64, many cannabis businesses operate without licenses. Furthermore, federal regulations disincentivize financial institutions from banking and lending to licensed cannabis businesses. The authors explore the impact of legal cannabis business activity on California financial institutions, the barriers to banking faced by cannabis businesses, and the nontraditional sources of financing used by the industry.Design/methodology/approach The authors use a mixed methods approach. The authors utilize call data for banks and credit unions headquartered in California and state cannabis licensing data to estimate the impact of the extensive and intensive margins of licensed cannabis activity on key banking indicators using difference-and-difference and fixed effects regressions. The qualitative data come from interviews with industry stakeholders in northern California's “Emerald Triangle” and add important context.Findings The quantitative results show economically and statistically significant impacts of licensed cannabis activity on banking indicators, suggesting both direct and spillover effects from cannabis activity to the financial sector. However, cannabis businesses report substantial barriers to accessing basic financial services and credit, leading to nontraditional financing arrangements.Practical implications The results suggest opportunities for cannabis businesses and financial institutions if regulations are eased and important avenues for further study.Originality/value The authors contribute to the nascent literature on cannabis economics and the literature on banking regulation and nontraditional finance.

Drug Induced Changes in Cell Organelles

1968 ◽  
Vol 26 ◽  
pp. 110-111
Author(s):  
Sarah A. Luse
Keyword(s):  
Clinical Medicine ◽  
Cell Organelles ◽  
Riboflavin Deficiency ◽  
Drug Induced ◽  
New Era ◽  
Health And Disease ◽  
In The Beginning ◽  
Cellular Pathology ◽  
Induced Changes ◽  
The Impact

In the mid-nineteenth century Virchow revolutionized pathology by introduction of the concept of “cellular pathology”. Today, a century later, this term has increasing significance in health and disease. We now are in the beginning of a new era in pathology, one which might well be termed “organelle pathology” or “subcellular pathology”. The impact of lysosomal diseases on clinical medicine exemplifies this role of pathology of organelles in elucidation of disease today.Another aspect of cell organelles of prime importance is their pathologic alteration by drugs, toxins, hormones and malnutrition. The sensitivity of cell organelles to minute alterations in their environment offers an accurate evaluation of the site of action of drugs in the study of both function and toxicity. Examples of mitochondrial lesions include the effect of DDD on the adrenal cortex, riboflavin deficiency on liver cells, elevated blood ammonia on the neuron and some 8-aminoquinolines on myocardium.

Information and Communication Technology and Cultural Change

2012 ◽  
Vol 43 (4) ◽  
pp. 222-231 ◽  
Author(s):  
Nina Hansen ◽  
Tom Postmes ◽  
Nikita van der Vinne ◽  
Wendy van Thiel
Keyword(s):  
Cultural Values ◽  
Information And Communication Technology ◽  
Communication Technology ◽  
Cultural Change ◽  
Control Group ◽  
Self Construal ◽  
Information And Communication ◽  
The Impact ◽  
Ict For Development ◽  
Practical Implications

This paper studies whether and how information and communication technology (ICT) changes self-construal and cultural values in a developing country. Ethiopian children were given laptops in the context of an ICT for development scheme. We compared children who used laptops (n = 69) with a control group without laptops (n = 76) and a second control group of children whose laptop had broken down (n = 24). Results confirmed that after 1 year of laptop usage, the children’s self-concept had become more independent and children endorsed individualist values more strongly. Interestingly, the impact of laptop usage on cultural values was mediated by self-construal (moderated mediation). Importantly, modernization did not “crowd out” traditional culture: ICT usage was not associated with a reduction in traditional expressions (interdependent self-construal, collectivist values). Theoretical and practical implications are discussed.

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