Implicit and explicit risk perception, affect, and trust : an investigation of food "traffic lights"

Obesity is a health problem in many developed countries and is a growing problem worldwide. In an effort to improve food choices the "traffic lights" nutritional labelling system has been developed. This system informs consumers of the relative (low, medium, high) levels of fat, saturated fats, sugar, and salt, along with energy information. There is debate over what type of thought processing drives perceptions of affect (or emotion) and risk regarding food products. These are System 1 (quick, intuitive) processing and System 2 (slower, deliberative) processing. In order to capture data on both types of processing, we used explicit and implicit measures (we developed an implicit measure of risk for this study). We also investigated the relationships of risk with affect, and trust. The results showed the presence of food "traffic lights" sometimes influenced both risk and affect perceptions but this was more pronounced for explicit measures. We also found that high risk was associated with negative affect, and low risk with positive affect, with larger effects when the “traffic lights” were present. We concluded that "traffic lights" can influence risk perception at both explicit and implicit levels but the influence was stronger if either the risk information was clear or the person was consciously evaluating the risk. Future research was discussed

Organizing effects of testosterone and economic behavior: not just risk taking

Recent literature emphasizes the role that testosterone, as well as markers indicating early exposure to T and its organizing effect on the brain (such as the ratio of second to fourth finger,D2:D4), have on performance in financial markets. These results may suggest that the main effect of T, either circulating or in fetal exposure, on economic behavior occurs through the increased willingness to take risks. However, these findings indicate that traders with a low digit ratio are not only more profitable, but more able to survive in the long run, thus the effect might consist of more than just lower risk aversion. In addition, recent literature suggests a positive correlation between abstract reasoning ability and higher willingness to take risks. To test the two hypotheses of testosterone on performance in financial activities (effect on risk attitude versus a complex effect involving risk attitude and reasoning ability), we gather data on the three variables in a sample of 188 ethnically homogeneous college students (Caucasians). We measure a D2:D4 digit ratio, abstract reasoning ability with the Raven Progressive Matrices task, and risk attitude with choice among lotteries. Low digit ratio in men is associated with higher risk taking and higher scores in abstract reasoning ability when a combined measure of risk aversion over different tasks is used. This explains both the higher performance and higher survival rate observed in traders, as well as the observed correlation between abstract reasoning ability and risk taking. We also analyze how much of the total effect of digit ratio on risk attitude is direct, and how much is mediated. Mediation analysis shows that a substantial part of the effect of T on attitude to risk is mediated by abstract reasoning ability

Is Simpler Always Better? Consumer Evaluations of Front-of-Package Nutrition Symbols

Consumers of packaged goods products in the United States recently have faced an onslaught of front-of-package (FOP) nutrition symbols and icons, including the controversial “Smart Choices” single summary indicator. In a between-subjects experiment with 520 adult consumers, the authors compare effects of the Smart Choices (SC) icon, the more complex Traffic Light–Guideline Daily Amounts (TLGDAs) icon, and a no-FOP icon control for a nutritionally moderate food that qualifies for the SC icon. Drawing from principles of heuristic processing and halo effects, the authors predict and find that the SC icon can lead to positive (and potentially misleading) nutrient evaluations and product healthfulness when compared with the TL-GDA icon or no-FOP icon control. When the Nutrition Facts Panel is not available, the TL-GDA icon results in substantially greater nutrition accuracy scores than with the SC icon or control. The authors also find that nutrition consciousness is more likely to moderate effects related to the Nutrition Facts Panel than the FOP nutrition icon information. Implications are offered for public health officials, nutrition researchers, and food manufacturers, as the Food and Drug Administration considers FOP nutrition alternatives for use in the United States

CONSUMER UNDERSTANDING AND USE OF HEALTH INFORMATION ON PRODUCT LABELS: MARKETING IMPLICATIONS FOR FUNCTIONAL FOOD

In recent years, the numbers of functional foods being developed and subjected to scientific evaluation have increased substantially. The main characteristic of functional foods that distinguishes them from conventional foods is the potential health benefit, which can be considered to be a credence attribute of product quality. Because this characteristic cannot be easily assessed even after consumption, an asymmetric information environment for health benefits has emerged where producers have more information than consumers. Thus the government intervenes by regulating the provision of health information on product labels in order to avoid potential market failures. The Food and Drug Administration (FDA) recently amended the way health claims on labels of conventional food and dietary supplements are managed. The new policy on qualified health claims allows claims to be made based on different levels of supporting scientific evidence. The policy goal is to encourage firms to make accurate, science-based claims about the health benefits of their products while helping consumers prevent disease and improve their health through sound dietary decisions using nutrition information. This marks a break from the previous environment where a lengthy approval process was argued to provide a road block for food firms wanting to market functional foods based on emerging evidence of diet to health links. This study has two objectives. First, to determine how consumers use health and nutrition information on food labels to form judgments about product quality, using the Elaboration Likelihood Model (ELM) as a theoretical framework. Second, to examine whether consumers can differentiate various levels of health claims, specifically the new qualified language, approved by FDA in 2003. It is interesting to determine whether consumers understand the different levels of scientific evidence supporting such claims and whether they can distinguish between the disclaimer languages used. Understanding how consumers use health and nutrition information on product labels has implications for both public policy and food manufacturers who use health claims as tools to market their products e.g., functional foods. This study used a still hypothetical functional food product a wheat cracker containing soy protein. It has been shown that soluble fiber and isoflavones, which can be found in wheat and soy products, respectively, independently help prevent the risk of several maladies including cancer and heart disease. A 5 (claim information on the front label a control condition and the four levels of qualified health claim) x 2 (information on Nutrition Facts) between-subjects factorial design was applied. Five versions of claim information were manipulated, including a control condition and four levels of qualified health claim. Each claim contained explicit relationships between nutrients and diseases i.e., isoflavones - heart disease and soluble fiber - cancers, but had different disclaimers explaining the level of scientific evidence supporting the claim. A report card was also included to inform consumers about the various claim levels, ranging from level A to D. Information on the Nutrition Facts panel was manipulated representing a "healthy" and an "unhealthy" version. Three hundred and seventy-two undergraduate students participated in the study, receiving extra credit for a Marketing class. Several multi-item scales are used as dependent variables, including attitude toward the product, buying intention, strength of evaluation about scientific studies to support claim, confidence about claim statement, perception of product's health benefit, and information search. A univariate analysis of variance (ANOVA) is conducted to test main and interaction effects among independent variables on a dependent variable. The results of this study suggest that consumers pay attention to information from all sources including the front label and Nutrition Facts panel. Even though it is shown that consumers react more positively to versions with health claims, there is no evidence to support the first hypothesis that consumers are more careful in evaluating product quality when health and nutrition information is present on the front package. Nevertheless, consumers are able to differentiate healthy products from unhealthy products, regardless of the presence of health and nutrition information on the front label. This study examines whether consumers understand and can distinguish various levels of qualified health claims. Although evidence suggests that consumers react differently to various claim levels, it is not clear whether people understand differences in the scientific support of these claims, as described in the disclaimer. Despite an increasing trend in attitude and purchase intention from the weakest claim (level D) to the strongest claim (level A), there is no statistically significant difference among claim levels when using measures of evaluation of strength of scientific studies, confidence about claim information, and perception of product's health benefit. From the public policy perspective, the results of this study can help determine how consumers evaluate health and nutrition information. It is shown that consumers do not overlook information from other parts of the label specifically the Nutrition Facts panel and that the presence of health and nutrition information on the front label is not likely to mislead consumers. The key issue here that needs further investigation is how to effectively provide information on the front label to consumers. FDA's goal is to permit the use of more, better, easily understood, and up-to-date scientific information about how dietary choices can affect consumers' health on food labels. It is important to identify optimal levels of qualified health claims, perhaps only two levels instead of four levels, so that consumers can distinguish and understand differences in terms of the scientific support for the claims and product benefits. As for the food industry, the results of this study can help food manufacturers decide what level of health and nutrition information they should provide to consumers. In addition to understanding the petitioning procedures for different claims, food firms must determine which, how, and when consumers understand and use health information in order to find the most efficient marketing communication channels.Health Economics and Policy,

An empirical investigation of the determinants influencing consumers' planned choices of eco-innovative materials

Wood-polymer composites (WPCs) are eco-innovative materials combining wood and plastics. Due to the novelty, little is known about consumer acceptance. Investigating the drivers of consumers’ WPC choices reveals consumers’ perception of the materials’ advantages over competing ones. The predictors of WPC acceptance were examined within a theory of planned behaviour (TPB; Ajzen, 1991) framework. An online survey (N = 357), varying material x appearance within and product category between subjects, was conducted in Germany. Structural equation modelling revealed that the attitudes towards environmental and innovative product aspects and the subjective norm explain the intention to buy WPC products (R² = 0.56). Consumers’ choice behaviour was assessed with a choice-based conjoint analysis (CBCA) and predicted by the behavioural intention and perceived behavioural control (PBC) (R² = 0.39). Hence, the present study identifies important drivers of WPC acceptance that could be useful for deriving certain marketing implications, potentially fostering more eco-friendly consumption

The Role of Trust in Explaining Food Choice: Combining Choice Experiment and Attribute Best−Worst Scaling

This paper presents empirical findings from a combination of two elicitation techniques—discrete choice experiment (DCE) and best–worst scaling (BWS)—to provide information about the role of consumers’ trust in food choice decisions in the case of credence attributes. The analysis was based on a sample of 459 Taiwanese consumers and focuses on red sweet peppers. DCE data were examined using latent class analysis to investigate the importance and the utility different consumer segments attach to the production method, country of origin, and chemical residue testing. The relevance of attitudinal and trust-based items was identified by BWS using a hierarchical Bayesian mixed logit model and was aggregated to five latent components by means of principal component analysis. Applying a multinomial logit model, participants’ latent class membership (obtained from DCE data) was regressed on the identified attitudinal and trust components, as well as demographic information. Results of the DCE latent class analysis for the product attributes show that four segments may be distinguished. Linking the DCE with the attitudinal dimensions reveals that consumers’ attitude and trust significantly explain class membership and therefore, consumers’ preferences for different credence attributes. Based on our results, we derive recommendations for industry and policy

A Survey of Literature on Genetically Modified Crops: Economics, Ethics and Society

This paper reports on a review of literature in the form of academic papers and published research on ethical and consumer issues for GM crops in North America, with particular emphasis on GM wheat. The issues raised in these papers and the findings and arguments posed by the authors are outlined. A general conclusion that can be drawn from this overview is that public attitudes toward GM foods are diverse and sometimes quite strongly held. The strong negative views of GM food held by some appear to be mainly grounded in individuals’ ethical or moral values. Ethical and risk assessment issues have not been fully explored in the existing literature. There is a general consensus in the applied economics literature that GM crops result in economic benefits, although benefits to individual consumers may not be great enough to overcome perceived risk. Carefully planned provision of credible information informing members of the public of benefits and related issues of concern or costs associated with agricultural biotechnology may have benefits for farm and industry groups, but maintenance of trust in information sources and content is vital to credibility. The discovery and use of genomic techniques that express explicit consumer benefits may lead to more favourable attitudes by many consumers.Crop Production/Industries, Research and Development/Tech Change/Emerging Technologies, I00, Q16, Q18,

Country of origin effect on products from Mainland China in Hong Kong

This study examines the effect of the country of origin cue on Hong Kong consumers’ purchasing of products from the two countries—China and Japan. The research findings suggest that the country of origin and brand image are the important evaluative criteria for Hong Kong consumer. There are three main objectives in the report. First is to explore the overall image of Mainland Chinese products in Hong Kong market. The other is to assess the impact of the country of origin on Mainland Chinese products in Hong Kong market. Last, we make some suggestions for improving the image of Mainland Chinese products in Hong Kong market. The literature review and survey give the picture of the image of Mainland Chinese products in other markets. Overall, Mainland Chinese products have a negative image in those markets. The country of origin effect influences the country image so much, there has a negative image towards China. Hong Kong people view Mainland Chinese products as old-fashioned, cheap and unattractive. To alleviate that, the Chinese businesses could improve their marketing strategies in Hong Kong, especially the marketing mix. They could change the product designs and packages with good brand names, put more emphasis on promotions and advertising, and improving the advertisements to adapt to the tastes of Hong Kong consumers. In addition, they could increase the number of retail channels that are more convenient for consumers to get information and easier to find the products. The low price of China brand products in Hong Kong gives people “cheap” and “low-class” impression. So, Mainland Chinese firms should raise the quality of products in order to set a higher price in Hong Kong market