Neural correlates of the affect heuristic during brand choice

In this working paper it is investigated how affect and cognition interact in consumer decision making. The research framework is multidisciplinary by applying a neuroscientific method to answer the question which information is processed during brand choice immediately when the decision is computed in the test person’s brain. In a neuroscientific experiment test persons perform binary decision-making tasks between different brands of the same product class. The results suggest that the presence of the respondent’s first choice brand leads to a specific modulation of the neural brain activity, which can be described as neural correlate of Slovic’s affect heuristic concept.Neuroeconomics, brand choice, cognition, affect

The Effectiveness of Advertising Matching Purchase Motivation

Several authors have proposed frameworks to help advertisers predict and plan advertising effectiveness. Rossiter and Percy's advertising grid (1997) recommends that the ad appeal should match the purchase motivation or attitude base. They suggest that for utilitarian brands informational advertising is more effective than transformational advertising. Likewise, for hedonic brands transformational advertising is more effective than informational advertising. These recommendations were tested in an experiment with different products and different ads. Advertising effectiveness was measured by brand and ad evaluations.In contrast with Rossiter and Percy, we find that advertising that mismatches rather than matches the motivation for the brand is more effective. Our finding can be explained in two ways. Firstly, schema theory suggests that a moderate degree of incongruity between advertising and brand perceptions and unexpected but relevant information in the mismatching ad results in favorable evaluations, as compared with a matching ad. Secondly, research on attitudes and persuasion suggests that, if typical product category ads are associated with negative affect, the particular ad functions as a counterattitudinal message, which is more persuasive in the case of a mismatch rather than a match with the category ads. We find evidence for both explanations.advertising;advertising grid;brand perception;matching hypothesis;purchase motivation

The Effectiveness of Advertising Matching Purchase Motivation

Several authors have proposed frameworks to help advertisers predict and plan advertising effectiveness. Rossiter and Percy's advertising grid (1997) recommends that the ad appeal should match the purchase motivation or attitude base. They suggest that for utilitarian brands informational advertising is more effective than transformational advertising. Likewise, for hedonic brands transformational advertising is more effective than informational advertising. These recommendations were tested in an experiment with different products and different ads. Advertising effectiveness was measured by brand and ad evaluations. In contrast with Rossiter and Percy, we find that advertising that mismatches rather than matches the motivation for the brand is more effective. Our finding can be explained in two ways. Firstly, schema theory suggests that a moderate degree of incongruity between advertising and brand perceptions and unexpected but relevant information in the mismatching ad results in favorable evaluations, as compared with a matching ad. Secondly, research on attitudes and persuasion suggests that, if typical product category ads are associated with negative affect, the particular ad functions as a counterattitudinal message, which is more persuasive in the case of a mismatch rather than a match with the category ads. We find evidence for both explanations

Tests of Graphic Visuals and Cigarette Package Warning Combinations: Implications for the Framework Convention on Tobacco Control

The World Health Organization recently adopted the Framework Convention on Tobacco Control, a groundbreaking public health treaty that will require that warning information in the form of text, pictures, or a combination of these two forms cover at least 30% of the front and back of cigarette packages. In three studies using smokers from the United States and Canada, the authors examine the effects of specific graphic visuals in the context of current U.S. verbal warnings. The findings indicate that including both graphic visual warnings, such as those used in Canada, and warning statements currently used in the United States can decrease the perceived attractiveness of the package and create higher levels of negative affect, such as fear or anxiety. The results also show that the addition of the specific visual warnings examined to the U.S. statements increases smokers’ perceived intentions of quitting smoking compared with warning statements alone. The authors offer implications for public policy and public health and provide suggestions for further research

Bioprospect Theory

Conventional wisdom treats biodiversity and biotechnology as rivalrous values. The global south is home to most of earth\u27s vanishing species, while the global north holds the capital and technology needed to develop this natural wealth. The south argues that intellectual property laws enable pharmaceutical companies and seed breeders in the industrialized north to commit biopiracy. By contrast, the United States has characterized calls for profit-sharing as a threat to the global life sciences industry. Both sides magnify the dispute, on the apparent consensus that commercial exploitation of genetic resources holds the key to biodiversity conservation. Both sides of this debate misunderstand the relationship between biodiversity and biotechnology. Both sides have overstated the significance of bioprospecting. It is misleading to frame the issue as whether intellectual property in the abstract can coexist with the international legal framework for preserving biodiversity. As a matter of legal gymnastics, any lawyer can reconfigure intellectual property to embrace all of the intangible assets at stake, including raw genetic resources, advanced agricultural and pharmaceutical research, and ethnobiological knowledge

Can Mixed Emotions Peacefully Co-Exist?

This research sheds insight on the psychological impact of mixed emotions on attitudes. In three experiments, we show that persuasion appeals that highlight conflicting emotions (e.g., both happiness and sadness) lead to less favorable attitudes for individuals with a lower propensity to accept duality (e.g., Anglo Americans, younger adults) relative to those with a higher propensity (e.g., Asian Americans, older adults). The effect appears to be due to increased levels of felt discomfort that arise for those with a lower, but not higher, propensity to accept duality when exposed to mixed emotional appeals. Theoretical implications regarding boundary conditions of emotional dissonance and distinctions between emotional and cognitive dissonance are discussed

Who's Thinking? A Push for Human-Centered Evaluation of LLMs using the XAI Playbook

Deployed artificial intelligence (AI) often impacts humans, and there is no one-size-fits-all metric to evaluate these tools. Human-centered evaluation of AI-based systems combines quantitative and qualitative analysis and human input. It has been explored to some depth in the explainable AI (XAI) and human-computer interaction (HCI) communities. Gaps remain, but the basic understanding that humans interact with AI and accompanying explanations, and that humans' needs -- complete with their cognitive biases and quirks -- should be held front and center, is accepted by the community. In this paper, we draw parallels between the relatively mature field of XAI and the rapidly evolving research boom around large language models (LLMs). Accepted evaluative metrics for LLMs are not human-centered. We argue that many of the same paths tread by the XAI community over the past decade will be retread when discussing LLMs. Specifically, we argue that humans' tendencies -- again, complete with their cognitive biases and quirks -- should rest front and center when evaluating deployed LLMs. We outline three developed focus areas of human-centered evaluation of XAI: mental models, use case utility, and cognitive engagement, and we highlight the importance of exploring each of these concepts for LLMs. Our goal is to jumpstart human-centered LLM evaluation.Comment: Accepted to CHI 2023 workshop on Generative AI and HC

Save, Gamble, or Both? The Relationship between Premium Bond Sales and Lottery Sales in the United Kingdom

Four out of every ten Americans are unable to pay for an unexpected $400 bill out of their savings accounts. To ameliorate this problem, one policy to incentivize saving is a Prize-Linked Savings Account (PLSA). Unlike a traditional savings account that pays out a consistent rate of return, a PLSA pools the interest on all deposits and distributes the returns in randomly drawn prizes (similar to a lottery). However, PLSAs remain illegal in many areas due to a concern that the introduction of a private or public PLSA could cannibalize revenue from an existing state-sponsored lottery, thus restricting the state’s ability to generate revenue for “good causes” like infrastructure and education. This undergraduate research article focuses on the relationship between Premium Bond sales, a PLSA run by the United Kingdom, and lottery sales in the UK. The empirical results reveal that Premium Bonds and lottery sales have no statistical or economic relationship, which implies that a state may be able to legalize PLSAs to incentivize saving without experiencing a reduction in state lottery revenue. This research provides important policy implications for the state of Mississippi, which battles high poverty and has also recently introduced a state lottery

Assessing Progress In Advertising-Related Scale Development & Usage

An awareness in the advertising industry of the inadequacy of current practices in copy testing led to the development of  PACT (Positioning Advertising Copy Testing), a statement of fundamental copy testing principles developed by  twenty-one of the world's leading advertising agencies.  A primary concern of this coalition was that too much reliance had been placed on single-item measures to assess the performance of ads, with a concurrent lack of validation of the measures being used.  Subsequently, few studies have followed up on the PACT recommendations, resulting in little in the way of objective data to assess the progress made in the development and use of multi-item scales.  This study offers an initial examination of the progress made in response to the PACT recommendations by developing an inventory and evaluation of advertising-related scales.  Insights from this analysis lead to specific observations regarding the state of the art in advertising research as well as recommendations for future scale research