Conceptual consumption

Movies, stigma and choice: Evidence from the pharmaceutical industry

Do movies reduce stigma, increasing healthcare product choices offered by firms? We provide causal evidence on this question in the context of Indian pharmaceutical markets. For unpacking these effects, we use an exogenous shock to the market due to the release of a Bollywood blockbuster movie - My Name is Khan (MNIK) where the protagonist, superstar Shahrukh Khan, suffers from Asperger's Syndrome (AS). Using a difference-in-differences design, we find a positive and statistically significant effect of MNIK (between 14% and 22% increase in variety sold and prescribed) on product differentiation and choices in the market for antipsychotic medicines used to clinically treat AS. Results are consistent using alternative controls, a placebo treatment-based test and with a variety of other robustness checks. Our findings document likely for the first-time, supply side responses to edutainment and suggests potential associated welfare effects in healthcare markets characterized by sticky demand. Implications for global health and public policy given worldwide concerns around a mental wellness epidemic with Covid-19 are discussed.

Nudges, Norms, or Just Contagion? A Theory on Influences on the Practice of (Non-)Sustainable Behavior

‘Nudging’ symbolizes the widespread idea that if people are only provided with the ‘right’ options and contextual arrangements, they will start consuming sustainably. Opposite to this individual-centered, top-down approach stand observations highlighting the ‘contagiousness’ of thoughts, emotions, and behaviors of reference groups or persons present in a decision-context. Tying in these two lines, this paper argues that nudging may sound promising and easily applicable, yet the social dynamics occurring around it can easily distort or nullify its effects. This argument stems from empirical evidence gained in an exploratory observation study conducted in a Swedish cafeteria (N = 1073), which included a ‘nudging’ treatment. In the study, people in groups almost unanimously all chose the same options. After rearranging the choice architecture to make a potentially sustainable choice easier, people stuck to this mimicking behavior—while turning to choose more the non-intended option than before. A critical reflection of extant literature leads to the conclusion that the tendency to mimic each other (unconsciously) is so strong that attempts to nudge people towards certain choices appear overwhelmed. Actions become ‘contagious’; so, if only some people stick to their (consumption) habits, it may be hard to induce more sustainable behaviors through softly changing choice architectures.

Delayed negative effects of prosocial spending on happiness

Does prosocial behavior promote happiness? We test this longstanding hypothesis in a behavioral experiment that extends the scope of previous research. In our Saving a Life paradigm, every participant either saved one human life in expectation by triggering a targeted donation of 350 euros or received an amount of 100 euros. Using a choice paradigm between two binary lotteries with different chances of saving a life, we observed subjects' intentions at the same time as creating random variation in prosocial outcomes. We repeatedly measured happiness at various delays. Our data weakly replicate the positive effect identified in previous research but only for the very short run. One month later, the sign of the effect reversed, and prosocial behavior led to significantly lower happiness than obtaining the money. Notably, even those subjects who chose prosocially were ultimately happier if they ended up getting the money for themselves. Our findings revealed a more nuanced causal relationship than previously suggested, providing an explanation for the apparent absence of universal prosocial behavior.

Go Pro Bono

Abstract. Crowdfunding enables fundraising of various ventures by collecting money from several donors. We argue that the inclusion of prosocial language contributes to success in this new domain of resource acquisition. In Study 1, we analyzed 164,056 projects from the online crowdfunding platform Kickstarter and found that the higher the percentage of prosocial words employed in a project’s description, the larger the number of investors and the greater the chances of reaching a funding goal. In Study 2 (N = 234), an experimental study, we documented that the use of prosocial words increases the support people thought they would give to a project. Our results indicate that people want to invest their financial resources in ventures that contribute to prosocial goals.

Context-dependency in valuation

In the last few years, work in the nascent field of neuroeconomics has advanced understanding of the brain systems involved in value-based decision making. An important modulator of valuation processes is the specific context a decision maker is facing during choice. Recently, neuroeconomics has made great progress in understanding, on both the brain and behavioral level, how context-dependent perception affects valuation and choice. Here we describe how context-sensitive value coding accounts for choice set effects, differential perceptions of gains and losses, and expectancy effects of external (economic) signals.

'I saw Santa drinking soda!' Advertising and children's food preferences

BACKGROUND

The influence of advertising on children's food preferences is well documented in the research literature. In this study we aim to examine the ways in which food advertising propels children's consumer behaviour and to investigate how food advertising affects the frequency of unhealthy food consumption.

METHODS

Data were drawn from a sample of elementary school children in the region of Thessaly (Greece). Three scales were used to measure children's lifestyle patterns, food consumption frequencies, and their response to advertising. Univariate and inferential statistics were used to answer the research questions.

RESULTS

The analysis revealed that a significant proportion of children (47.4%) frequently consume unhealthy foods. Children who have little understanding of the persuasive intent of advertising rate advertised foods as healthier and more nutritious. The frequency of unhealthy food consumption is influenced by the entertaining dimension of advertising and the level of the motivational arousal after children's exposure to food advertisements.

CONCLUSIONS

Food advertising impels children's consumer behaviour through four different modes. First, advertising engenders expectations, which raise purchase motivation. Second, the purchase of advertised foods is accompanied by positive feelings (happiness, satisfaction). Third, the entertaining dimension of advertising generates pleasant mood, which positively predisposes the evaluation of advertised foods. Fourth, children do not always possess the ability to recognize the persuasive nature of advertising.

O efeito país de origem e o comportamento do consumidor em relação a vinhos

A presente pesquisa analisou o efeito do país de origem sobre a qualidade percebida, a intenção de compra e a disposição de preço a pagar dos consumidores de Caxias do Sul (RS) em relação a vinhos. Para tanto, foi implementada uma pesquisa de caráter experimental na qual foram distribuídas amostras de um mesmo vinho para três grupos diferentes que o avaliaram através de degustação e, posteriormente, responderam a um questionário. A única diferença entre os três grupos diz respeito às informações sobre o país de origem do vinho recebido para a degustação. Os resultados mostraram que o grupo que recebeu o vinho pensando este ser produzido no Chile (grupo 1) apresentou médias mais altas em relação à qualidade percebida do produto, à intenção de compra e à disposição de preço a pagar, quando comparado ao grupo de controle (sem informações sobre o país de origem do produto) (grupo 3) e ao grupo que recebeu o vinho com informação de que se tratava de um vinho chinês (grupo 2).

Preference-based serial decision dynamics: your first sushi reveals your eating order at the sushi table

In everyday life, we regularly choose among multiple items serially such as playing music in a playlist or determining priorities in a to-do list. However, our behavioral strategy to determine the order of choice is poorly understood. Here we defined 'the sushi problem' as how we serially choose multiple items of different degrees of preference when multiple sequences are possible, and no particular order is necessarily better than another, given that all items will eventually be chosen. In the current study, participants selected seven sushi pieces sequentially at the lunch table, and we examined the relationship between eating order and preference. We found two dominant selection strategies, with one group selecting in order from most to least preferred, and the other doing the opposite, which were significantly different from patterns generated from a random strategy. Interestingly, we found that more females tended to employ the favorite-first rather than favorite-last strategy. These two choice sequences appear to reflect two opposing behavioral strategies that might provide selective advantages in their own right, while also helping to provide solutions to otherwise unconstrained problems.

Potential: the valuation of imagined future achievement

The concept of potential is central to a number of decisions, ranging from organizational hiring, to athletic recruiting, to the evaluation of artistic performances. While potential may often be valued for its future payoffs, the present studies investigate whether people value potential even when making decisions about goods and experiences that can only be consumed in the present. Experiment 1 demonstrates that potential makes people more likely to consume inferior performances in the present. Experiment 2 manipulated temporal focus and demonstrates that focusing on the present (vs. the future) attenuates the effect of potential on enjoyment. Experiment 3 demonstrates that merely moving the performance into the past negates the effect of potential. And, Experiment 4 demonstrates that potential increases valuation only when value is tied to abstract, hedonic dimensions, but not when it is tied to concrete, utilitarian dimensions.

Explaining Michigan: developing an ex post theory of a quality improvement program

CONTEXT

Understanding how and why programs work-not simply whether they work-is crucial. Good theory is indispensable to advancing the science of improvement. We argue for the usefulness of ex post theorization of programs.

METHODS

We propose an approach, located within the broad family of theory-oriented methods, for developing ex post theories of interventional programs. We use this approach to develop an ex post theory of the Michigan Intensive Care Unit (ICU) project, which attracted international attention by successfully reducing rates of central venous catheter bloodstream infections (CVC-BSIs). The procedure used to develop the ex post theory was (1) identify program leaders' initial theory of change and learning from running the program; (2) enhance this with new information in the form of theoretical contributions from social scientists; (3) synthesize prior and new information to produce an updated theory.

FINDINGS

The Michigan project achieved its effects by (1) generating isomorphic pressures for ICUs to join the program and conform to its requirements; (2) creating a densely networked community with strong horizontal links that exerted normative pressures on members; (3) reframing CVC-BSIs as a social problem and addressing it through a professional movement combining "grassroots" features with a vertically integrating program structure; (4) using several interventions that functioned in different ways to shape a culture of commitment to doing better in practice; (5) harnessing data on infection rates as a disciplinary force; and (6) using "hard edges."

CONCLUSIONS

Updating program theory in the light of experience from program implementation is essential to improving programs' generalizability and transferability, although it is not a substitute for concurrent evaluative fieldwork. Future iterations of programs based on the Michigan project, and improvement science more generally, may benefit from the updated theory present here.

Incentives for health

This article discusses incentives to help make healthy choices the easy choices for individuals, operating at the levels of the individual, producers and service providers, and governments. Whereas paying individuals directly to be healthier seems to have a limited effect, offering financial incentives through health insurance improves health. Changing the environment to make healthier choices more accessible acts as an incentive to improve health. Employers can provide incentives to improve the health of their employees. Producers and service providers can take voluntary action to make their products less harmful, and they can be nudged into marketing healthier products within a regulatory environment. International agreements and monitoring systems can incentivize governments to do more for health. Lessons from climate change adaptation suggest that multilevel governance and policy integration are greater obstacles to policy change and implementation than knowing what has to be done. Policy change and implementation are triggered by many drivers, many of which are side effects of other policy pressures rather than of the direct policy goal itself. Effective action to reduce noncommunicable diseases will require leveraging social networks into a new ways of thinking about health; making better health prestigious and aspirational, and giving health and wellness a brand that encourages positive behavior change.