Against Inefficacy Objections: The Real Economic Impact of Individual Consumer Choices on Animal Agriculture

When consumers choose to abstain from purchasing meat, they face some uncertainty about whether their decisions will have an impact on the number of animals raised and killed. Consequentialists have argued that this uncertainty should not dissuade consumers from a vegetarian diet because the “expected” impact, or average impact, will be predictable. Recently, however, critics have argued that the expected marginal impact of a consumer change is likely to be much smaller or more radically unpredictable than previously thought. This objection to the consequentialist case for vegetarianism is known as the “causal inefficacy” (or “causal impotence”) objection. In this paper, we argue that the inefficacy objection fails. First, we summarize the contours of the objection and the standard “expected impact” response to it. Second, we examine and rebut two contemporary attempts (by Mark Budolfson and Ted Warfield) to defeat the expected impact reply through alleged demonstrations of the inefficacy of abstaining from meat consumption. Third, we argue that there are good reasons to believe that single individual consumers—not just individual consumers taken as an aggregate—really do make a positive difference when they choose to abstain from meat consumption. Our case rests on three economic observations: (i) animal producers operate in a highly competitive environment, (ii) complex supply chains efficiently communicate some information about product demand, and (iii) consumers of plant-based meat alternatives have positive consumption spillover effects on other consumers

Social Influence Bias in Online Ratings: A Field Experiment

The aim of this paper is to study the empirical phenomenon of rating bubbles, i.e. clustering on extremely positive values in e-commerce platforms and rating web sites. By means of a field experiment that exogenously manipulates prior ratings for a hotel in an important Italian tourism destination, we investigate whether consumers are influenced by prior ratings when evaluating their stay (i.e., social influence bias). Results show that positive social influence exists, and that herd behavior is asymmetric: information on prior positive ratings has a stronger influence on consumers’ rating attitude than information on prior mediocre ratings. Furthermore, we are able to exclude any brag-or-moan effect: the behavior of frequent reviewers, on average, is not statistically different from the behavior of consumers who have never posted ratings online. Yet, non-reviewers exhibit a higher influence to excellent prior ratings, thus lending support to the social influence bias interpretation. Finally, also repeat customers are affected by prior ratings, although to a lesser extent with respect to new customers

Sequential Voting Promotes Collective Discovery in Social Recommendation Systems

One goal of online social recommendation systems is to harness the wisdom of crowds in order to identify high quality content. Yet the sequential voting mechanisms that are commonly used by these systems are at odds with existing theoretical and empirical literature on optimal aggregation. This literature suggests that sequential voting will promote herding---the tendency for individuals to copy the decisions of others around them---and hence lead to suboptimal content recommendation. Is there a problem with our practice, or a problem with our theory? Previous attempts at answering this question have been limited by a lack of objective measurements of content quality. Quality is typically defined endogenously as the popularity of content in absence of social influence. The flaw of this metric is its presupposition that the preferences of the crowd are aligned with underlying quality. Domains in which content quality can be defined exogenously and measured objectively are thus needed in order to better assess the design choices of social recommendation systems. In this work, we look to the domain of education, where content quality can be measured via how well students are able to learn from the material presented to them. Through a behavioral experiment involving a simulated massive open online course (MOOC) run on Amazon Mechanical Turk, we show that sequential voting systems can surface better content than systems that elicit independent votes.Comment: To be published in the 10th International AAAI Conference on Web and Social Media (ICWSM) 201

Unwillingness to pay for privacy: A field experiment

We measure willingness to pay for privacy in a field experiment. Participants were given the choice to buy a maximum of one DVD from one of two online stores. One store consistently required more sensitive personal data than the other, but otherwise the stores were identical. In one treatment, DVDs were one Euro cheaper at the store requesting more personal information, and almost all buyers chose the cheaper store. Surprisingly, in the second treatment when prices were identical, participants bought from both shops equally often. -- Wir messen die Zahlungsbereitschaft für Datenschutz in einem Feldexperiment. Die Teilnehmer konnten maximal eine DVD bei einem von zwei Online-Shops kaufen. Einer der beiden Läden verlangte immer mehr sensitive Daten als der andere, aber abgesehen davon waren die Läden gleich. Im ersten Treatment waren alle DVDs genau einen Euro günstiger bei dem Laden, der mehr sensitive Daten abfragte, und fast alle Käufer wählten diesen günstigeren Laden. In einem zweiten Treatment mit identischen Preisen bei beiden Läden kauften die Teilnehmer überraschenderweise bei beiden Läden gleich häufig.privacy,willingness to pay,field experiments

The Effects of Herding and Word of Mouth in a Two-Period Advertising Signaling Model

In the context of increasing globalization, a new product may be sequentially released into markets in different countries and regions. The behavior of consumers in the market where a new product is first launched may have a huge impact on the purchasing behavior of consumers in later markets through the effects of herding and word of mouth (WOM). We suggest that these effects may significantly influence advertising when new products with short life cycles, such as movies, books, games, and music, are sequentially launched and not repeatedly purchased by consumers. Using a two-period advertising signaling model, this study theoretically demonstrates that the effects of herding and WOM affect the existence of separating (signaling quality) and pooling (hiding quality information) equilibria, but the number of potential consumers in different markets has no impact. Importantly, we investigate the firm\u27s strategic choices by comparing the profits generated under different equilibria and find that if the strength of WOM or the unit advertising cost increases, or if the herding effect decreases, a pooling equilibrium is likely to be the best, and a win-win, strategy before a new product is first released and consumed; otherwise, a separating equilibrium dominates. We also find that the cost of signaling decreases as WOM increases, whereas it increases with the herding effect or the mass of consumers in Period 1. Our findings provide several managerial implications relating to releasing product quality information for those industries in which products without repeat purchase are sequentially released in different markets

Maintaining the Integrity of Organic Milk

The meteoric growth of organic dairying is one of the rare success stories found in agriculture today. The business has been built over the past two decades and nurtured by family farmers collaborating with consumers hungry for organic food.For those farmers involved in dairying, organics has been a true lifeline. Those able to make the difficult three-year transition to organics have been rewarded by top commodity prices at the farmgate and a living wage -- something that stands in stark contrast to the intense price squeeze that has driven many of their conventional neighbors from the business. In addition, organic dairy farmers are enjoying explosive growth in demand for their products.Consumers have been willing to pay premium prices in the market for certified organic dairy products with the understanding that the food has been raised in a sustainable, environmentally sound manner and that they are helping support and keep family farmers on the land. Many consumers assume that humane animal husbandry practices are employed by organic farmers and they may believe that their food is more nutritious.Organic dairy products are also a "gateway" food to other organic products. Consumers recognize such familiar products as milk and cheeses, frequently sampling organic varieties first before moving on and experimenting with other organic commodities.But this success story is now at risk; it is threatened by powerful economic interests that covet their share of the organic pie and who are willing to twist, manipulate and even ignore federal organic regulations in their rush to cash in. Some agribusiness giants are depending on consumers not knowing the difference between their product and those produced with ethics and integrity.This report aims to pull back the veil and allow consumers to easily identify those organic dairy products that have been produced with the best organic practices. By using the Web-based rating tool found on our Web page (www.cornucopia.org), you will be able to identify the brands and products found in your region and examine their ranking, score, and how well they meet key criteria covering organic management practices. The survey rates 68 different organic dairy brands and private label products found across the country.The good news that we can report is that the vast majority of all name-brand organic dairy products are produced from milk from farms that follow accepted legal and ethical standards.However, consumers should also recognize that an increasing amount of milk used in certain organic dairy products is coming from factory farms that are employing suspect practices that skirt organic regulations and impact nutrition and livestock. A growing number of new factory farms -- housing thousands of cows in confinement conditions -- are in development because of strong organic commodity prices, growing consumer demand, a shortage of certified organic milk, and a reluctance by federal regulators to enforce the current organic rules.This report will help consumers make purchasing decisions separate from industry chaff and PR

Herd Behavior In Global Online Shopping Carnival

We have witnessed the magnificent power of herd behavior exhibited by the frantic crowd during the Alibaba’s global online shopping carnival (OSC) which has made 9 Ginness world’s records within 24 hours. This study explores the cognitive herding process and the critical factors facilitating herd behavior in OSC. Meanwhile, applying the theory of carnival, this study identifies three OSC behaviors which spread through the OSC herd. Using 473 samples from OSC participants, the hypotheses are supported by the empirical results. Information incentive (e.g. promotion motivation and review information) and social influence (e.g. peer mimicry and endorsement influence) are two crucial preconditions for herd behavior; participation, interaction and playfulness capture the essence of OSC behavior. The results provide insights to: (1). the cognitive process of herd behavior; (2). the critical factors facilitating herd behavior in OSC; (3) the important OSC behavior imitated during the herding process

Book selection behavior in the physical library: implications for ebook collections

Little is known about how readers select books, whether they be print books or ebooks. In this paper we present a study of how people select physical books from academic library shelves. We use the insights gained into book selection behavior to make suggestions for the design of ebook-based digital libraries in order to better facilitate book selection behavior

Nonmonetary incentives in online purchase decisions : An exploratory research on Finnish consumers’ purchase behavior in the 2020s

The popularity of B2C e-commerce among Finns has continuously increased as consumers have gained access to a vast network of web shops globally. The proliferation of web shops has resulted in a more competitive market which has also attracted the attention of multinational online marketplaces. As a result, smaller e-tailers have been forced to counteract the unrivaled pricing and business model of large multinational corporations to regain a lucrative and sustainable foothold on the market. This thesis investigates potential countermeasures by exploring nonmonetary incentives that influence the purchase decisions of Finnish consumers shopping online. Sub-questions are concerned with the motivation of selecting a web shop for purchasing, the role of nonmonetary incentives in purchase decisions and how Finns give value to them and why. The theoretical framework is based on findings in prior research regarding consumer perceptions in online shopping, the utilitarian and hedonic purchase behavior, herd behavior and impulse purchasing. The selected qualitative research approach studies Finnish e-shoppers of the most active age category through a semi-structured pilot interview and focus group interview. The collected nonmonetary incentives form eight main categories in the research data, comparable with six factors identified in the theoretical background. Both categorizations acknowledge and exclude an additional group related to monetary incentives which are not the focus of this thesis. The results present a multifold of nonmonetary incentives that emphasize the importance of swift and extensive customer service, the scope and quality of product selection and information, along with a streamlined purchase process and a personalized shopping experience. In addition, ambiguous or suspicious communication of the web shop operations cause uncertainty and mistrust which may deter potential customers. A cumbersome or incomprehensible web shop structure may result in a similar outcome. The findings provide a notable foundation for future research which may focus on specific incentives to describe them in greater detail, or to verify their relative influence on purchase decisions in Finland or other contexts. A larger sampling may also generate further information on the prevalence of utilitarian and hedonic characteristics among respondents.Kuluttajaverkkokaupan suosio suomalaisten keskuudessa on kasvanut jatkuvasti ja kuluttajien käytettävissä onkin jo globaali valikoima verkkokauppoja. Kauppojen lisääntyminen on johtanut yhä kiristyvään kilpailuun, johon myös monikansallisten markkinapaikkojen on ollut helppo liittyä. Samalla pienemmät verkkokaupat ovat joutuneet uudistamaan strategiaansa menestyäkseen suurten yritysten ylivoimaisen hinnoittelun ja liiketoimintamallin rinnalla. Tämä tutkielma perehtyy mahdollisiin kilpailukeinoihin ei-rahallisissa kannustimissa, jotka vaikuttavat suomalaisten kuluttajien ostopäätöksiin verkossa. Tutkimuksen alakysymyksinä tutustutaan motivaatiotekijöihin verkkokauppavalinnoissa, ei-rahallisten kannustimien vaikutuksiin ostopäätöksissä sekä suomalaisten arvonmääritykseen ostotilanteissa. Teoria käsittelee aikaisempia tutkimuksia kuluttajien kokemuksista sekä utilitarista ja hedonistista ostokäyttäytymistä, laumakäyttäytymistä ja impulssiostamista. Tässä kvalitatiivisessa tutkimuksessa paneudutaan aktiivisimpaan verkko-ostajien ikäryhmään Suomessa puolistrukturoidun pilottihaastattelun ja ryhmähaastattelun keinoin. Tutkimuksessa muodostetaan kahdeksan ei-rahallisiin kannustimiin pohjautuvaa pääkategoriaa, jotka vastaavat kuutta teoreettisesta viitekehyksestä havaittua tekijää. Lisäksi molemmat ryhmittelyt tunnistavat ja tarkoituksellisesti erottelevat yksittäiset rahallisiin kannustimiin keskittyneet ryhmät, jotka eivät ole tutkimuksen päätavoitteita. Tuloksissa esitellään monipuolinen kokoelma ei-rahallisia kannustimia, jotka korostavat nopeaa ja laajaa asiakaspalvelun tasoa, tuotevalikoiman ja tiedon kattavuutta sekä johdonmukaista ostoprosessia, jossa on huomioitu henkilökohtainen kokemuksellisuus. Lisäksi verkkokaupan monitulkintaisen tai epäilyttävän viestinnän koetaan lisäävän epävarmuutta ja horjuttavan kaupan uskottavuutta, mikä saattaa karkottaa potentiaalisia asiakkaita. Kömpelöllä ja hankalasti ymmärrettävällä verkkokaupparakenteella havaitaan samankaltaisia seurauksia. Tutkimuksen havainnot koostavat merkittävän pohjan tulevaisuuden tutkimukselle, joka voi keskittyä valittujen kannustimien tarkempaan kuvailuun tai niiden suhteellisen merkityksen varmentamiseen kuluttajien ostopäätöksissä Suomessa ja muissa yhteyksissä. Laajemmalla otannalla voidaan myös paremmin kuvata utilitaristisen ja hedonistisen ostokäyttäytymisen esiintyvyyttä ja vaikuttavuutta vastaajien keskuudessa

Examining the Mediating Role of Commitment on Brand Herding: An Empirical Study in a Virtual Community of Consumption

Consumer social interaction is one of the most influential factors affecting people’s consumption-related decision making (Y. Chen, Wang, & Xie, 2011). When making product choice, particularly, consumers apt to follow the action of the crowd in many circumstances (Bonabeau, 2004). Referred to as herding in literature, such behavior-based social influence among market participants has long been studied (Banerjee, 1992; Hirshleifer & Hong Teoh, 2003; Raafat, Chater, & Frith, 2009). With the rise of online social platforms, other people’s actions are getting increasingly more observable, as consumers usually share with each other their product-related use experiences, opinions, and purchase decisions (Liu, Brass, Lu, & Chen, 2015). As such, behaviorbased social influence plays a critical role in shaping and affecting consumers’ choice (Duan, Gu, & Whinston, 2009). Meanwhile, research on herd behavior has grown significantly and continues to grow. Empirical research examines herd behavior in a wide range of contexts, including online purchase (C. M. K. Cheung, Xiao, & Liu, 2014; Huang & Chen, 2006), technology adoption (Sun, 2013; Walden & Browne, 2009), online auction (Simonsohn & Ariely, 2008), contribution to open source projects (Oh & Jeon, 2007), etc. While it is generally held that no single reason can explain the behavioral convergence of consumers, literature in economics, marketing, and IS (information systems) disciplines primarily highlight two utility-based mechanisms behind herding (Bikhchandani, Hirshleifer, & Welch, 1992; Y.-F. Chen, 2008; Duan et al., 2009; Huang & Chen, 2006; Langley, Hoeve, Ortt, Pals, & van der Vecht, 2014; Zhang & Liu, 2012). These mechanisms are informational cascades (i.e., ignore one’s own information and make a choice based on other’s choice due to uncertainty when making decision, see (Bikhchandani et al., 1992) and positive network externalities (i.e., additional users of a good increase the value of that good, (Kauffman, McAndrews, & Wang, 2000). Despite a wealth of literature on herd behavior, there has been little work discusses the convergent behavior occurs among customers who are already the patrons of certain brands. This setting is unique in that, available choices in the market (i.e., current brand vs. alternatives) are not in the same position from the standpoint of consumers. Empirical studies do show that the popularity of a brand, per se, positively impacts its customers’ loyalty (Raj, 1985) and favorable cost-benefit evaluation (Deval, Mantel, Kardes, & Posavac, 2013; He & Oppewal, 2018; Li, 2004). These key components, in turn, encourage the existing customers of the brand continue their patronage (Aaker, 2009). By this process, a product’s popularity establishes a hinderance to its customers’ attrition by cementing brand-customer relationship (Aaker, 2009). However, it remains uncertain how and to what extent that customers’ continuance intention (as opposed to migrating to alternative brands) is affected by the crowd’s choice. Note: in some occasions, indeed, brand popularity is negatively associated with one’s brand choice. Need for uniqueness (Tian, Bearden, & Hunter, 2001) and negative network externalities (Hellofs & Jacobson, 1999) are two common mechanisms. The former occurs primarily in the market of self-expressive products, such as luxury goods, apparels, and the like (Steinhart, Kamins, Mazursky, & Noy, 2014); whereas a typical context of the latter is that the quality of certain services being worsen off due to high service popularity (Hellofs & Jacobson, 1999). Obviously, the understanding of brand patrons’ behavioral convergence has significant implications on both theory and managerial practice. However, none of the aforementioned utility-based mechanisms of herding (i.e., informational cascades and positive network externalities) provides a satisfactory explanation in this context. One reason for this theoretical lacuna is related to the implicit assumption in the herding literature (i.e., available choices in the market are of the same position), which is not the case in the research context of business retention/switching. A second reason deals with the overwhelming emphasis on the economic utility as the underlying mechanisms. As pointed out by Bikhchandani et al. (1992), herding could also be induced by noneconomic factors, such as the decision-maker’s conformity with others (Jones, 1984), avoiding sanctions due to disobedience (Bendor & Mookherjee, 1987), and so on. Building upon the prior research on customer retention, we introduce customer commitment — the key construct in business relationship literature, into the understanding of brand patrons’ behavioral convergence. It is widely held that commitment plays the central role in people’s persistence of behavior (Newman & Sabherwal, 1996). Particularly, customer commitment involves not only the state of mind that binds a customer with the present business relationship (Kelley & Davis, 1994), but also the structural conditions that prevent her from making a change (Becker, 1960). Therefore, we contend that the perspective of commitment offers an integrative understanding of the behavioral convergence induced by both psychological and utility-based mechanisms. This research adopts the three-component commitment model (TCM) — a widely used conceptualization of commitment (Meyer, Stanley, Herscovitch, & Topolnytsky, 2002). According to TCM, people choose to maintain the current business relationship Tang The 18th International Conference on Electronic Business, Guilin, China, December 2-6, 2018 822 because they feel they want to (affective commitment), ought to (normative commitment), or need to (calculative commitment) (Meyer, Allen, & Smith, 1993). By introducing TCM into the study of herding phenomenon, this research takes a holistic and novel view for understanding the interplay between product popularity and consumers’ continuance. In particular, we ask, how do affective commitment, normative commitment, and calculative commitment mediate the effects of product popularity on customers intention of brand continuance? In this research, we attempt to answer the research question in the settings of virtual communities of consumption (VCC), which are online groups explicitly centered on consumption-related interests (De Valck, 2005). VCCs provide plentiful of informative cues about brands’ relative popularity and consumers’ choices (C. M. K. Cheung et al., 2014), hence constitute an ideal research environment of our study. This study potentially contributes to the literature at the following perspectives. First, despite the voluminous research on herding, it remains uncertain how group mimicking behavior affect customer retention or migration. The current research adds to the literature by expanding research on herding to a domain in which, to the best of our knowledge, very little scholarly effort has been devoted. Second and more importantly, this research theorizes and empirically tests the central role of commitment components underlying the herd behavior of brand patrons. This perspective provides insights into an alternative mechanism of how herding takes effect in the context of customer migration, thus adds to both the herding and customer retention literature. In addition, our exploration of the heterogeneous roles of various popularity cues in customer retention sheds lights on marketing practice about the most effective way to retain patrons and attract potential customers