Shunning Uncertainty: The Neglect of Learning Opportunities

Financial, managerial, and medical decisions often involve alternatives whose possible outcomes have uncertain probabilities. In contrast to alternatives whose probabilities are known, these uncertain alternatives offer the benefits of learning. In repeat-choice situations, such learning brings value. If probabilities appear favorable (unfavorable), a choice can be repeated (avoided). In a series of experiments involving bets on the colors of poker chips drawn from bags, decision makers often prove to be blind to the learning opportunities offered by uncertain probabilities. Such decision makers violate rational decision making and forgo significant expected payoffs when they shun uncertain alternatives in favor of risky ones. Worse, when information is revealed, many make choices contrary to learning. A range of factors explain these violations. The results indicate that priming with optimal strategies offers little improvement.

Interpretation of a Regularity in the Behavior of M2

macroeconomics

Investigating consumer confusion from a cultural perspective : evidence from the Saudi Arabian smartphone market

This thesis was previously held under moratorium from 3rd December 2019 until 3rd December 2021.With the increase of digital media, there is an excess of information about products and services in the marketplace. In addition, products are becoming more complex. These factors are contributing to consumer confusion, which is an uncomfortable psychological experience caused by exposure to marketing information that could be similar, misleading, ambiguous, or unnatural. Such a problem could increase in the future, as rapid developments in technology are contributing to multiply sources of information. In recent years, many studies have concluded that consumer confusion proneness, as it has several influences on behavioural outcomes, is a topic in need of ongoing investigation. With this in mind, the present study seeks to shed light on the phenomenon of consumer confusion in the Saudi Arabian smartphone market by identifying and analysing the cultural factors contributing to consumer confusion. The overall aim of this thesis is to explore the impact of cultural dimensions on consumer confusion in the Saudi Arabian smartphone market. Furthermore, the research objectives of this study are fourfold: (1) to explore the aspects of consumer confusion influencing consumers in the Saudi Arabian smartphone market; (2) to investigate the effect of consumer confusion proneness on three behavioural outcomes: customer satisfaction, word-of-mouth behaviour, and brand loyalty among consumers in the Saudi Arabian smartphone market; (3) to examine the moderating role of cultural dimensions on the relationship between consumer confusion proneness and its consequences; and (4) to identify the main strategies for minimising consumer confusion based on cultural factors. A conceptual model based on consumer confusion and the culture literature was developed in order to form hypotheses to predict the causality between the selected variables. A quantitative research approach was adopted in this research, reflecting a postpositivist philosophical framework. A self-administrated questionnaire was generated to collect the data, and the analysis technique employed to test the research hypotheses was structural equation modelling (SEM). As one of this first studies in this area to examine a Middle East society, it was found that incertitude confusion (overload/ambiguity) is the most influential aspect on consumer confusion for consumers purchasing smartphones in Saudi Arabia. The findings also highlight that customers in Saudi Arabia do not perceive the similarity of smartphones as contributing towards confusion. In addition, customers prone to incertitude confusion are likely to be dissatisfied and engage less in word-of-mouth behaviour, but they are more likely to display brand loyalty. The findings outline a role for previously unexplored cultural variables, i.e. social interaction, language barriers, and risk aversion, and their probable moderating influences on consumer confusion proneness and its behavioural consequences. This study has responded to previous calls for research to explore the cultural elements impacting on the construct of consumer confusion (Shukla, Banerjee and Adidam, 2010; Walsh et al., 2016) and to establish the cultural variables influencing consumers proneness to confusion while purchasing smartphones. By exploring the role of cultural dimensions in consumer confusion and its consequences, this research provides key managerial implications as well as theoretical contributions by extending the understanding of consumer confusion in relation to the role of cultural variables, thus enriching the construct of consumer confusion. Consequently, a number of theoretical, marketing, and consumer implications have been identified from this study’s empirical results. This thesis also opens the door for fellow researchers to expand upon the concept of consumer confusion by calling for future consumer confusion-based research from the perspective of other cultural dimensions, B2B consumer confusion, or the impact of social media.With the increase of digital media, there is an excess of information about products and services in the marketplace. In addition, products are becoming more complex. These factors are contributing to consumer confusion, which is an uncomfortable psychological experience caused by exposure to marketing information that could be similar, misleading, ambiguous, or unnatural. Such a problem could increase in the future, as rapid developments in technology are contributing to multiply sources of information. In recent years, many studies have concluded that consumer confusion proneness, as it has several influences on behavioural outcomes, is a topic in need of ongoing investigation. With this in mind, the present study seeks to shed light on the phenomenon of consumer confusion in the Saudi Arabian smartphone market by identifying and analysing the cultural factors contributing to consumer confusion. The overall aim of this thesis is to explore the impact of cultural dimensions on consumer confusion in the Saudi Arabian smartphone market. Furthermore, the research objectives of this study are fourfold: (1) to explore the aspects of consumer confusion influencing consumers in the Saudi Arabian smartphone market; (2) to investigate the effect of consumer confusion proneness on three behavioural outcomes: customer satisfaction, word-of-mouth behaviour, and brand loyalty among consumers in the Saudi Arabian smartphone market; (3) to examine the moderating role of cultural dimensions on the relationship between consumer confusion proneness and its consequences; and (4) to identify the main strategies for minimising consumer confusion based on cultural factors. A conceptual model based on consumer confusion and the culture literature was developed in order to form hypotheses to predict the causality between the selected variables. A quantitative research approach was adopted in this research, reflecting a postpositivist philosophical framework. A self-administrated questionnaire was generated to collect the data, and the analysis technique employed to test the research hypotheses was structural equation modelling (SEM). As one of this first studies in this area to examine a Middle East society, it was found that incertitude confusion (overload/ambiguity) is the most influential aspect on consumer confusion for consumers purchasing smartphones in Saudi Arabia. The findings also highlight that customers in Saudi Arabia do not perceive the similarity of smartphones as contributing towards confusion. In addition, customers prone to incertitude confusion are likely to be dissatisfied and engage less in word-of-mouth behaviour, but they are more likely to display brand loyalty. The findings outline a role for previously unexplored cultural variables, i.e. social interaction, language barriers, and risk aversion, and their probable moderating influences on consumer confusion proneness and its behavioural consequences. This study has responded to previous calls for research to explore the cultural elements impacting on the construct of consumer confusion (Shukla, Banerjee and Adidam, 2010; Walsh et al., 2016) and to establish the cultural variables influencing consumers proneness to confusion while purchasing smartphones. By exploring the role of cultural dimensions in consumer confusion and its consequences, this research provides key managerial implications as well as theoretical contributions by extending the understanding of consumer confusion in relation to the role of cultural variables, thus enriching the construct of consumer confusion. Consequently, a number of theoretical, marketing, and consumer implications have been identified from this study’s empirical results. This thesis also opens the door for fellow researchers to expand upon the concept of consumer confusion by calling for future consumer confusion-based research from the perspective of other cultural dimensions, B2B consumer confusion, or the impact of social media

Shunning Uncertainty: The Neglect of Learning Opportunities

Financial, managerial, and medical decisions often involve alternatives whose possible outcomes have uncertain probabilities. In contrast to alternatives whose probabilities are known, these uncertain alternatives offer the benefits of learning. In repeat-choice situations, such learning brings value. If probabilities appear favorable (unfavorable), a choice can be repeated (avoided). In a series of experiments involving bets on the colors of poker chips drawn from bags, decision makers often prove to be blind to the learning opportunities offered by uncertain probabilities. Such decision makers violate rational decision making and forgo significant expected payoffs when they shun uncertain alternatives in favor of risky ones. Worse, when information is revealed, many make choices contrary to learning. A range of factors explain these violations. The results indicate that priming with optimal strategies offers little improvement

Privacy Risks in Digital Markets: The Impact of Ambiguity Attitudes on Transparency Choices

Transparency is viewed as an essential prerequisite for consumers to make informed privacy decisions in digital markets. However, it remains an open research question whether and when individuals actually prefer transparency about privacy risks when given a chance to avoid it. We investigate this question with a randomized controlled online experiment based on an Ellsberg-type design, where subjects repeatedly choose between risk and ambiguity while facing the threat of an actual disclosure of their personal data. We find empirical support for ambiguity attitudes as a novel behavioral mechanism underlying people\u27s transparency choices in privacy contexts. In particular, we find that most individuals avoid ambiguity and prefer transparency for low likelihood privacy losses. However, this pattern reverses for high likelihood losses and when subjects perceive data disclosure as a gain. Most notably, a significant share of people seek ambiguity and thus prefer to avoid transparency when facing high likelihood privacy risks

Tweets to escape: intercultural differences in consumer expectations and risk behavior during the COVID-19 lockdown in three European countries

This study aims to understand the extent to which a time of emergency, (e.g. the COVID-19 pandemic), impacts consumer behaviour in terms of risk and expectations. The methodology involves the systematic content analysis of 15,000 tweets collected from three countries (UK, Italy and Spain) in April 2020. The results suggest that the top-of-mind expectation by consumers deals with escaping from home and enjoying freedom, either by having a good meal (UK), drinking alcoholic beverages (Spain), or travelling (Italy). They also suggest that the high levels of risk individuals were exposed to during the pandemic will not influence behavior in the long-term post- lockdown. Instead, they suggest consumers are willing to restore their consumption levels especially of activities that contribute to the sense of escapism. Finally, results provide evidence of the cultural differences emerging from consumers from different countries during the pandemic. Implications for international marketers and retailers are provided

A Transaction cost Perspective on the Influence of Standards on Product Development Examples from the Fruit and Vegetable Market

In this paper I argue that quality standards, products standards, and quality classes influence the priority that firms give to different product developments. These standards may be viewed as institutions in the sense of shared rules of behavior or codes. They have become shared because there are increasing returns to their use. These increasing returns apply both to their functions as means of reducing the costs of specifying and communicating product quality and to their functions as means of reducing buyers' costs of comparing the quality of different products - both of which are part of transaction costs. When reliable and extensively used standards exist, transaction costs are reduced. But these positive consequences to individual firms of adhering to the same standards create a sort of inertia in product development. This is because developments which are in line with existing standards will not introduce new transaction costs, while developments which break with the conformity of the standards will. In order for the latter kinds of product developments to be profitable, both development costs and transaction costs have to be overcome.Transaction costs, product development standards

Gender differences towards risk and ambiguity environments: an experiment

Treball Final de Grau en Economia. Codi: EC1049. Curs acadèmic 2015-2016Gender differences can be found in different social domains. Particularly, the present project is focused on the study of gender differences towards risk and ambiguity environments. The majority of the literature suggests, in the first place, that gender differences can be found under risk condition, being males more risk prone than females. Secondly, gender differences are not significant under ambiguity condition. In this paper, takes place an experimental study measuring gender differences through both conditions. The results show -as the majority of the literature propose- that females tend to be more risk averse than men. Nevertheless, the results also suggest that despite there is not correlation between the different attitudes measured for both conditions, there is a high correlation between subjects classified as risk consistent and ambiguity consistent

FACTORS INFLUENCING THE PURCHASE OF YOGURTS AND DAIRY DESSERTS OF PRIVATE LABEL

Private labels play a key role in Marketing strategy and they have been studied by several researchers. In order to respond to adaptations to the market, private labels are fundamental to the retailers’ strategies. These brands overlap with those of the manufacturers, as they are vital to improving the value proposition in terms of price, image and quality. With this research, focused on the private labels and the category of yogurt and desserts, we try to understand the factors that influence the purchase of yogurts and desserts. The study uses the Focus Group technique for the collection and treatment of data analysis of content. It was concluded that the category of yogurt and dairy desserts is at a crossroads because there are antagonistic factors influencing the purchase and consumption. The category appears to be positively driven by the promotional pace and the greater capacity to assume as a substitute for milk at some moments of consumption. On the other hand, the category is also being pressured by unfavorable communicational and opinionated phenomena related to the drawbacks associated with milk consumption. The marks of reference seem to have reduced or stabilized the competitiveness of the private labels by the effect of the permanent promotional cycles

VALUING AMBIGUITY: THE CASE OF GENETICALLY ENGINEERED GROWTH ENHANCERS

A split-valuation method is developed and implemented to elicit the willingness to pay to consume- or avoid consuming- a product of ambiguous quality. The split-valuation method uses experimental auction markets to separate and value the positive and negative attributes of the ambiguous good. The results show that the method can be used to successfully value a good ambiguous quality. Our application reveals that for a sample of students at a midwestern land-grant institution, the average respondent is willing to pay a premium for meat produced with the use of a genetically engineered growth enhancer that has 30% to 60% fewer calories and is 10% to 20% leaner.Consumer/Household Economics,