Perceived risk and risk relievers: An empirical investigation

A set of hypotheses related to the importance of four types of perceived risks in nine product classes were examined. Simultaneously the relieving ability of nine risk-reducing strategies was investigated. Brand loyalty for the non-durable experience goods, money-back guarantee and store image for the durable experience goods and shopping for the search goods ranked among the best risk relievers. It was also showed that it is sometimes possible to predict from knowledge of the type of risk that is ranked as highest which risk reliever will be ranked as highest.     

Narrative persuasion by corporate CSR messages: The impact of narrative richness on attitudes and behavioral intentions via character identification,transportation, and message credibility

The current study examines the persuasiveness of narrative richness in messages about acts of corporate social responsibility (CSR). Specifically, we apply theory about narrative persuasion to the domain of corporate communication. Focusing on Coca-Cola’s clean water project, a cross-national experiment (n = 659) was conducted in which the narrative richness and the source cue of a CSR message were manipulated, and the effects on (a) message processing (specifically via character identification, transportation, and credibility), (b) attitude towards the company, and subsequent (c) behavioral intention were measured. Considering the global nature of Coca-Cola, the experiment was simultaneously fielded in the United States and the Netherlands to verify the generalizability of our findings. Robust results in both countries suggest that narratively rich CSR messages can indirectly improve the attitude towards the company and thereby encourage behavioral intentions via character identification and transportation, irrespective of the source cue (company vs. news media). Importantly, message credibility was not compromised by the narrative richness, while being the strongest predictor of company attitude.     

The effects of CSR communication in corporate crises: Examining the role of dispositional and situational CSR skepticism in context

Although consumer skepticism about corporate social responsibility (CSR) is on the rise, research is sparse on the psychological dynamics of this skepticism, particularly when CSR communication serves as a company’s crisis response strategy. Employing two between-subjects design experiments, this study aims to fill this gap by looking at the role consumer CSR skepticism plays in consumer reactions to CSR communications in different types of crises. The study 1 results show that dispositional CSR skepticism did not moderate the effect of crisis type on attitudes and intentions when CSR was used as a post-crisis response strategy. The study 2 findings, however, indicated that situational CSR skepticism significantly mediated the impact of crisis type and CSR motives on purchase intentions only when the crisis stemmed from some accidental rather than preventable circumstance. Theoretical and practical implications are discussed.     

A DYNAMIC EXPLANATION OF THE WILLINGNESS TO PAY AND WILLINGNESS TO ACCEPT DISPARITY

Recent evidence from laboratory experiments suggests that important disparities exist between willingness to pay (WTP) and compensation demanded for the same good. Because a fundamental postulate in neoclassical theory is that with small income effects and many available substitutes, the willingness to accept (WTA) and WTP measures of value for a commodity should be roughly equivalent, this finding has vast implications in both a positive and normative sense. This study advances, and experimentally tests, a new explanation of the WTP/WTA disparity—a dynamic theory based on the presence of commitment costs. Although to date neoclassical models have not explained the observed data patterns well, we find that the commitment cost theory combined with a simple behavioral anomaly is able to lend insights into the causes and severity of the WTA/WTP disparity. Furthermore, we find that market experience attenuates the behavioral anomaly, consistent with the notion that no value disparity exists for agents with sufficient market experience. (JEL Q21, Q26)     

Understanding and knowledge of credit cost and duration: Effects on credit judgements and decisions

Financial capability requires understanding measures of consumer credit cost and using them appropriately in credit judgements and decisions. In three studies, UK adults’ understanding and use of credit cost and duration information were investigated from a bounded rationality perspective. Study 1, part of a representative survey of UK adults (N = 1000), found that when presented with annual percentage rate (APR) participants significantly overestimated the total cost (TC) of a 12-month loan. In Study 2, loan duration and APR were varied in an independent groups experiment (N = 242). Bank customers’ TC estimates were sensitive to both loan duration and APR but TC was again substantially overestimated. Study 3 was an independent groups experiment investigating the effect of APR and TC information on credit decisions (N = 241). APR often influenced decisions between loans varying in duration and monthly repayment, but this effect was moderated by TC information. It was concluded that: (1) people generally misunderstand the relation between APR and TC; and (2) although APR information can have a large effect on credit decisions, its effect is either attenuated or amplified by TC information. The findings are interpreted in terms of a ‘take the best APR’ heuristic and a dual mental account model of instalment credit. Recommendations for improving credit information provision and financial education are offered.     

Emotionen und Lebenszufriedenheit in der „Erlebnisgesellschaft“

According to sociological diagnoses of present time, in many western countries a postmodern consumer, entertainment, and event culture has emerged. This paper draws especially on Schulze’s volume on the event society (?Erlebnisgesellschaft“, 1992). On a theoretical level, it is argued that people living in a consumer and event society would act more and more inward oriented: They increasingly strive for pleasing experiences, a high level of well-being, and seek positive affects. Furthermore, they ever more regard their emotions as a criterion for the assessment of their own life. By using data from the European Social Survey 2006, this latter assumption is examined in a comparative perspective for 23 European countries. The findings show that in all countries considered previously experienced positive (negative) emotions lead to an increase (decrease) in people’s life satisfaction. Emotions influence a persons’ life satisfaction substantially. However, multilevel analyses demonstrate that this effect varies between countries: The more a society resembles the ideal type of a consumer and event society, the larger is the impact of a person’s previously experienced emotions on the assessment of his or her own life. Hence, in a consumer and event society life satisfaction catches a strong hedonistic shade.     

MEASURING THE WELFARE GAIN FROM PERSONAL COMPUTERS

The welfare gain to consumers from the introduction of personal computers (PCs) is estimated. A simple model of consumer demand is formulated that uses a slightly modified version of standard preferences. The modification permits marginal utility, and hence total utility, to be finite when the consumption of computers is zero. This implies that the good will not be consumed at a high enough price. It also bounds the consumer surplus derived from the product. The model is calibrated/estimated using standard national income and product account data. The welfare gain from the introduction of PCs is 2%–3% of consumption expenditure. (JEL E01, E21, O33, O47)     

Positive affect and pro-environmental behavior: A preregistered experiment

In recent years, correlational evidence has accumulated in support of a positive relationship between positive affect and pro-environmental behavior. In contrast, it remains unclear whether the induction of positive affect can causally promote pro-environmental behavior. Previous attempts to examine the effects of experimental affect induction were constrained by the difficulty to study pro-environmental behavior under controlled laboratory conditions. Here, we address this limitation by examining the effect of a validated affect-induction procedure on a recently validated laboratory measure of pro-environmental behavior. Participants in our preregistered experiment (N = 178) watched and rated video clips pretested to induce either positive or neutral affect before completing 24 trials on the Pro-Environmental Behavior Task (PEBT). Results did not reveal any evidence in support of a positive effect of positive affect on PEBT behavior. This result illustrates the need for further systematic and cumulative research on the complex relationship between affect and pro-environmental behavior.     

Behavioral implications of providing real incentives in stated choice experiments

This paper explores the potential impacts of introducing real economic incentives in choice experiments (CE). While many others have investigated such impacts before, the majority of the literature has focused solely on mitigation of hypothetical bias. We contribute to this literature by widening the scope of research to other behavioral aspects where consumers in CE are often found to deviate from homo economicus. We develop a theoretical model where not only Willingness to pay (WTP) measures but also decision processing can be affected by the introduction of an economic incentive. Specifically, our model allows for differential impacts on attribute processing, depending on the character of the attribute as well as self-image effects. In an empirical CE survey, we find some, though not unequivocal, support of our model. Even though we find no impact on WTP from introducing an economic incentive, we find marked benefits in relation to a number of behavioral aspects that together would favor the use of an economic incentive regardless of hypothetical bias being present or not.     

Image Repair Tactics and Information Subsidies During Fraud Crises

This study proposes a synergistic model of corporate communication strategy (corporate ability strategy, corporate social responsibility strategy, and hybrid strategy) on consumer responses and tests the model using 2 Fortune 500 companies (Kellogg and Motorola). The study found that when a company is well-known to consumers as Motorola and Kellogg used in this study, a CSR strategy is more effective in influencing both consumer corporate ability (CAb) and CSR associations and in turn, company/product evaluations. Additionally, consumers tend to automatically assume a company is good at making reliable products when they associate the company with strong CSR, indicating transferring effects of CSR associations onto CAb associations, and onto company/product evaluations. The study results also suggest that the direct influences of CSR associations differ based on industry type. A company that produces high risk involved products such as Motorola, might not experience as strong CSR associations' effects on consumer responses as a company in other industry type like Kellogg.     

Academicals

Abstract

Category/continuum thinking is measured and the effects of dissonance between thought styles and response formats on the ability to predict behavior from measured attitude are investigated. Dissonance is found to have a substantial effect which is attributable primarily to distortions produced when females who tend toward continuum thinking are forced to respond in categories. Contrary to usual practice, continuum formats are found to be generally more adequate than category formats. The implications of the conclusions for theory and research are discussed.     

‘Shopping for Change’: <Emphasis Type="Italic">World Vision Canada</Emphasis> and Consumption-Oriented Philanthropy in the Age of Philanthrocapitalism

According to Charity Intelligence Canada, in 2014, at least 21 Canadian non-profits published a gift catalogue featuring a range of “products”^a that donors could “purchase” for people in need. These charity gift catalogues, along with other shopping-inspired fundraising initiatives, represent a significant shift in the philanthropic arena towards philanthrocapitalism. Using two World Vision Canada campaigns as exemplars, this article offers a critical analysis of what the author calls “consumption-oriented philanthropy”^b—a class of charitable giving that is heavily guided by market principles without involving a consumer product. Unlike purchase-triggered donation campaigns (in which a charitable donation is made when a consumer product is purchased), consumption-oriented philanthropy does not require the purchase of a for-profit commodity; instead, consumption-oriented philanthropy reformulates aid recipients or charitable aid itself into symbolic commodities. By re-framing charitable aid as a pseudo-shopping experience, however, consumption-oriented philanthropy ushers in an entirely different set of values, expectations, and logic that shapes the way in which donors understand and engage in philanthropic giving.     

Argument-inconsistency in charity appeals: Statistical information about the scope of the problem decrease helping toward a single identified victim but not helping toward many non-identified victims in a refugee crisis context

It is known that both the characteristics of the victims one can help and the existence of victims one cannot help influence economic helping decisions in suboptimal ways. The aim of this study was to systematically test if these two aspects interact with each other. In Studies 1 and 2, we created hypothetical charity appeals related to the Syrian refugee crisis and factorially manipulated characteristics of victims possible to help (one identified child/nine non-identified children) and presence of statistical information about the scope and nature of the problem (information-box absent/present). We found a significant interaction effect both when using self-rated helping intention (Study 1), and when using actual donation behavior as the dependent variable (Study 2). Statistical information decreased helping intentions toward a single identified child but had no, or even a small positive effect on helping nine non-identified children. In Study 3, non-student participants reading a charity appeal with both a story about one identified child and statistical information donated less often than participants reading appeals with either only a story about one identified child or only statistical information. We suggest that both emotional arguments (e.g., a story and picture of an identified child in need) and analytical arguments (e.g., detailed statistical information about the scope and nature of the problem) can make us more motivated to help refugees, but that mixing different argument-types can make charity appeals internally inconsistent and decrease donations.     

Employee reactions to positive action policies in the United Kingdom: Does the organization’s justification matter?

Affirmative action remains a contentious topic in both research and practice. While advocates suggest that such action is necessary to overcome demographic imbalances in the labor market, some research shows that these policies can prompt undesirable employee reactions that negate their value. While positive discrimination (i.e., recruiting or promoting solely based on a protected characteristic) remains illegal in the United Kingdom, organizations have increasingly begun adopting positive action measures (i.e., measures aimed at alleviating disadvantage or under-representation based on protected characteristics). However, there is little research looking at how these policies specifically affect employee attitudes or how different organizational rationales for positive action might moderate these effects. This lack of research is even more notable in the UK context. In two experimental studies of UK professionals (N = 353) we find that perceived organizational justice explained the relationship between positive action and affective commitment / turnover intention. However, evidence supporting the effect of organizational rationale was limited.     

Revealing the elusive effects of vividness: a meta-analysis of empirical evidences assessing the effect of vividness on persuasion

Despites decades of research, past studies focusing on the effects of vividness on persuasion found mixed and contradictory results. In order to solve this conflicting issue, a meta-analysis was conducted on empirical studies assessing the impact of vivid (vs. pallid) communications on attitude and/or behavioral intention. Overall, 27 articles (k = 43; N = 7575) were included. Our results showed that vividness yielded significant small-to-medium effect on both attitude (d₊ = .31) and behavioral intention (d₊ = .39). Furthermore, meta-regression analyses indicated that memory recall, cognitive elaboration, and topic valence moderated these effects, whereas vividness/argument congruency was not significantly related to the variations of effects sizes. Finally, theoretical implications of theses finding will be discussed.     

How the Experience of Emotion is Modulated by Facial Feedback

The facial feedback hypothesis states that facial actions modulate subjective experiences of emotion. Using the voluntary facial action technique, in which the participants react with instruction induced smiles and frowns when exposed to positive and negative emotional pictures and then rate the pleasantness of these stimuli, four questions were addressed in the present study. The results in Experiment 1 demonstrated a feedback effect because participants experienced the stimuli as more pleasant during smiling as compared to when frowning. However, this effect was present only during the critical actions of smiling and frowning, with no remaining effects after 5 min or after 1 day. In Experiment 2, feedback effects were found only when the facial action (smile/frown) was incongruent with the presented emotion (positive/negative), demonstrating attenuating but not enhancing modulation. Finally, no difference in the intensity of produced feedback effect was found between smiling and frowning, and no difference in feedback effect was found between positive and negative emotions. In conclusion, facial feedback appears to occur mainly during actual facial actions, and primarily attenuate ongoing emotional states.     

THE WELFARE EFFECTS OF THIRD‐DEGREE PRICE DISCRIMINATION IN A DIFFERENTIATED OLIGOPOLY

This article examines the welfare effects of third‐degree price discrimination under oligopolistic competition with horizontal product differentiation. We derive a necessary and sufficient condition for price discrimination to improve social welfare: the degree of substitution must be sufficiently greater in the “strong” market (where the discriminatory price is higher than the uniform price) than in the “weak” market (where it is lower). It is verified, however, that consumer surplus is never improved; social welfare improves solely owing to an increase in the firms' profits in the case of linear demands. (JEL D43, L11, L13)     

Effects of Pilates method in physical fitness on older adults. A systematic review

Pilates method is employed for physical and mental conditioning. Elderly people could be benefited from a patterned and regulated conditioning work based on Pilates method. We performed a systematic review to assess the evidence on the effects of Pilates method in physical fitness on older adults. Our search included the following databases: MEDLINE-PubMed, Scopus and CINAHL Plus with Full Text via EBSCO and SPORTDiscus databases (up to April 2014). A summary of the results was performed using a best evidence synthesis and was reported according to the systematic review method proposed by Preferred Reporting Items for Systematic reviews and Meta-Analyses (PRISMA) statement. The Physiotherapy Evidence Database (PEDro) scale was used to assess the methodology quality of selected studies. Seventeen experimental studies were included in this review. Fourteen were randomized controlled trials (RCT) and three clinical controlled trials (CCT). Quality scores according to PEDro indicate low quality of the included studies (range 1–6, mean 3.8?±?1.2). The most studied components related to physical fitness were neuromotor fitness (n?=?11), muscle strength (n?=?8), cardiorespiratory endurance (n?=?4), body composition (n?=?4) and flexibility (n?=?4). Results indicate that Pilates method seems to present positive effects in neuromotor fitness, especially in static and dynamic balance. Related to the other components of physical fitness (cardiorespiratory endurance, muscle strength, body composition and flexibility), contradictory results were observed. The Pilates method indicates to be an appropriate exercise modality in order to improve balance on older adults. Nevertheless, more intervention research is needed to build a solid knowledge base about the health benefits of Pilates method on older people, especially regarding the other components of physical fitness.     

On price data elicitation: A laboratory investigation

There is abundant literature in experimental research on decision making under risk, which compares, and ranks subjects’ preferences on the basis of some elicitation method. The present paper performs a similar analysis in order to compare them. Since pricing data lead in many cases to some anomalies (i.e. status quo bias, endowment effect) we examine three mechanisms to elicit price preferences: willingness-to-pay in a second-price auction, willingness-to-accept in a second-price auction, and certainty equivalent elicited with BDM. A Bayesian interpretation of our results suggests that it is not possible to state ex ante the more appropriate elicitation method for a particular subject: for 1/3 of our sample WTP is preferred, for 1/3 of our sample WTA is preferred, and for the remaining 1/3 BDM is preferred.     

Subtle priming of subtraction versus addition: a spill-over effect of math / La inducción sutil de sumar vs. restar: un efecto indirecto de las matemáticas

Abstract

Studies on bias correction have often used blatant inductions to motivate people to reduce the mental impact of perceived biases. In the current research, we test a relatively unexplored, subtle way of inducing bias correction based on the activation of different calculative mindsets. Across two studies, participants were exposed to an advertisement introducing a new consumer product delivered by a credible or non-credible source. Then, as part of an ostensibly unrelated study, participants completed mathematical operations that involved subtracting or adding. Study 1 revealed that when participants were primed with an addition calculative mindset, an expert source elicited more favourable attitudes towards the product than a non-expert source. This pattern illustrates the traditional effect of source credibility on persuasion. In contrast, within the subtraction calculative mindset condition, persuasion was no different between an expert and a non-expert source. These results were obtained exclusively under high thinking conditions (e.g., for participants high in Need for Cognition). This finding can be interpreted as if the effect of source credibility was subtracted from the evaluative judgement. Study 2 replicated this two-way interaction using different materials and inductions. The present research has implications for bias correction, procedural priming, persuasion and beyond.