Understanding heuristics-based financial decision-making using behavioral portfolio strategies

PurposeThrough a portfolio choice model, the study empirically examines the influence of the heuristic simplification through peak-end rule (PER) and the associated neglect of the duration of the experience. The portfolio strategy adopted involves optimizing portfolios to capture the impact of heuristic-driven investors' experience of good and bad states. The study attempts to validate PER in an empirical context and is expected to generate trading rules, which would exploit pricing errors emerging out of the use of heuristics by investors.Design/methodology/approachThe empirical approach adopted in the study primarily examines returns to portfolios sorted according to various hedonic evaluation rules. Behavioral portfolios are constructed using hedonic experiences as conditioning variables.FindingsThe results imply that there is continued investor demand for such assets in the short run. An equal weight portfolio based on a three-month hedonic evaluation earns an average monthly return of 2.77% over the next 12 months.Originality/valueThe authors’ study may perhaps be the first attempt to use the peak-end heuristic in portfolio construction.

How Neuroimaging Is Transforming Our Understanding of Aesthetic Taste

The concept of aesthetic appreciation is a historical construction with a history that traces back to the beginning of the 18th century. It proposes the idea that humans can experience a specific kind of nonutilitarian pleasure when exposed to a distinct set of aesthetic qualities. This chapter surveys findings from recent neuroimaging studies that have cast doubt on this idea. It explains how studies of neural activity associated with aesthetic appreciation have found “aesthetic” liking to engage similar neural structures as utilitarian liking, suggesting that aesthetic appreciation is rooted in computational principles that are common to hedonic evaluation broadly.

The Cogs and Wheels of Authenticity: How Descriptive and Evaluative Beliefs Explain the Unequal Appreciation of Authentic Products

In times of cultural omnivorousness, authentic products are highly valued by high-status consumers. The article scrutinizes the social and individual preconditions for attributing hedonic and economic value to authentic products. Taking the concept of cultural capital as a starting point, it argues that cues indicating a product’s authenticity affect taste and price evaluations only if individuals perceive authenticity cues correctly (descriptive beliefs) and regard authenticity as an important product feature (evaluative beliefs). This interplay of descriptive and evaluative beliefs explains the appreciation of authentic products. The model is tested by combining an experimental tasting of apple juice samples with a survey. We find that cues of authenticity causally influence the hedonic evaluation of products only for consumers with both strong descriptive and evaluative beliefs. Attribution of economic value depends on descriptive beliefs only. In addition, such beliefs are socially structured: descriptive beliefs correlate with higher formal education, whereas evaluative beliefs covary with highbrow cultural practices.

Dishes Adapted to Dysphagia: Sensory Characteristics and Their Relationship to Hedonic Acceptance

Dishes whose texture has been modified for dysphagia undergo changes in other sensory characteristics as well. Therefore, it is necessary to identify these characteristics in adapted dishes and their relationship to hedonic acceptance. In the present work, the sensory characteristics of five dishes adapted to dysphagia associated with cerebral palsy were investigated using the check-all-that-apply method. A hedonic evaluation with a panel of non-dysphagic judges was performed to relate the degree of acceptance with the sensory characteristics of the adapted dishes. The identification of the original non-adapted dish as well as the relationship between the hedonic evaluation by non-dysphagic judges and dysphagic judges were explored. The main attributes of the dishes adapted to dysphagia were “homogeneity” and “easy-to-swallow”. Attributes that increased the hedonic evaluation were “flavorful”, “flavor of the original dish”, “soft texture”, “easy-to-swallow”, and “odor of the original dish”. The attributes that decreased the hedonic evaluation were “thick mash” and “bland”. The fish dish was the only one correctly identified more than 62.5% of the time. The adapted dishes received scores above 4.7 out of 9.0 in the hedonic evaluation. The most accepted dishes were the chicken stew and the chickpea stew. Except for the pasta dish, the test yielded similar results to those obtained with dysphagic judges. The texture-modified dishes were correctly characterized and accepted. This study shows that all the sensory characteristics of the adapted dishes are crucial for acceptance and identification.

Impact of Hedonic Evaluation of Technological Innovations on Revisit Intention in a Store Digitalization Context

The objective of this research is to investigate how hedonic evaluation of technological innovation affects directly store revisit intention and indirectly through the mediation of customer satisfaction and shopping experience. 257 real customers assessed the introduction of four innovative tools (automatic check-out, Internet kiosk, Smartphone and self-scanning) in supermarkets. Structural equation modeling results show that customer hedonic evaluation of technological innovation affects positively store revisit intention. However, while technology pleasantness influences it significantly technology interactivity does not. Furthermore, the authors establish significant mediation effects of customer overall satisfaction and shopping experience on the relationship investigated. FIMIX-PLS segmentation identifies two specific groups (low versus high hedonic technology seekers). This research stresses retail companies to focus on hedonic aspects of innovative technologies and to invest in personnel and accompanying measures that enable a smooth use of technological innovations.

Evaluation of nutritive values and consumer acceptance of sweet corn (Zea mays) juice as a recovery beverage for exercising people

Carbohydrate-protein (CP) drinks have been shown to exert better effect in promoting faster muscle recovery and rehydration in exercising individuals. However, not all active people, particularly Asians can consume milk-based CP drinks that would trigger symptoms of lactose intolerance and discomfort. Thus, this study aimed to assess the feasibility of sweet corn (Zea mays) beverage as an alternative recovery drink for active people due to its high content of carbohydrate and protein as well as lactose-free. The first phase of the study was the formulation of sweet corn juice that match the specific criteria for an effective recovery drink. Next, the study on the acceptance assessment of the new formulated sweet corn juice was conducted. The results show that the product contains high carbohydrate and protein contents which met the criteria for recovery beverage for active people. Besides, the results of sensory and hedonic evaluation demonstrate that the product was well-liked and accepted by majority of the consumers. To conclude, sweet corn juice which is lactose-free may offer extra benefits in such a way that it will provide alternative recovery drink that can be consumed by lactose intolerant active people.