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Article
Publication date: 24 September 2018

Carola Grebitus and Jutta Roosen

The purpose of this research is to test how varying the numbers of attributes and alternatives affects the use of heuristics and selective information processing in…

Abstract

Purpose

The purpose of this research is to test how varying the numbers of attributes and alternatives affects the use of heuristics and selective information processing in discrete choice experiments (DCEs). The effects of visual attribute and alternative non-attendance (NA) on respondent choices are analyzed.

Design/methodology/approach

Two laboratory experiments that combined eye tracking and DCEs were conducted with 109 and 117 participants in the USA. The DCEs varied in task complexity by the number of product attributes and alternatives.

Findings

Results suggest that participants ignore both single attributes and entire alternatives. Increasing the number of alternatives significantly increased attribute NA. Including NA in choice modeling influenced results more in more complex DCEs.

Research limitations/implications

The current experiments did not test for choice overload. Future studies could investigate more complex designs. The choice environment affects decision-making. Future research could compare laboratory and field experiments.

Practical implications

Private and public sectors often use DCEs to determine consumer preference. Results suggest that DCEs with two alternatives are superior to DCEs with four alternatives because NA was lower in the two-alternative design.

Originality/value

This empirical research examined effects of attribute and alternative NA on choice modeling using eye tracking and DCEs with varying degrees of task complexity. Results suggest that accounting for NA reduces the risk of over- or understating the impact of attributes on choice, in that one avoids claiming significance for attributes that might not truly be preferred, and vice versa.

Details

European Journal of Marketing, vol. 52 no. 9/10
Type: Research Article
ISSN: 0309-0566

Keywords

Open Access
Article
Publication date: 27 August 2020

Dieter Koemle and Xiaohua Yu

This paper reviews the current literature on theoretical and methodological issues in discrete choice experiments, which have been widely used in non-market value…

4900

Abstract

Purpose

This paper reviews the current literature on theoretical and methodological issues in discrete choice experiments, which have been widely used in non-market value analysis, such as elicitation of residents' attitudes toward recreation or biodiversity conservation of forests.

Design/methodology/approach

We review the literature, and attribute the possible biases in choice experiments to theoretical and empirical aspects. Particularly, we introduce regret minimization as an alternative to random utility theory and sheds light on incentive compatibility, status quo, attributes non-attendance, cognitive load, experimental design, survey methods, estimation strategies and other issues.

Findings

The practitioners should pay attention to many issues when carrying out choice experiments in order to avoid possible biases. Many alternatives in theoretical foundations, experimental designs, estimation strategies and even explanations should be taken into account in practice in order to obtain robust results.

Originality/value

The paper summarizes the recent developments in methodological and empirical issues of choice experiments and points out the pitfalls and future directions both theoretically and empirically.

Details

Forestry Economics Review, vol. 2 no. 1
Type: Research Article
ISSN: 2631-3030

Keywords

Article
Publication date: 5 May 2015

Linhai Wu, Hongsha Wang and Dian Zhu

The purpose of this paper is to reveal the actual consumer demand for traceable pork by investigating consumer preferences for pork with combined levels of traceability…

Abstract

Purpose

The purpose of this paper is to reveal the actual consumer demand for traceable pork by investigating consumer preferences for pork with combined levels of traceability information based on differences in individual consumer preferences, in order to support the government in decision making regarding the gradual construction of safe food markets.

Design/methodology/approach

Combinations of four types of traceability information, including farming, slaughter and processing, distribution and sales, and government certification, with price were randomly designed. To identify consumer preferences for these attribute combinations of traceable pork, 215 consumers in Wuxi, Jiangsu Province were investigated using a real choice experiment and the mixed logit model.

Findings

Significant heterogeneity was observed in consumer preferences for traceable pork. The information of farming, slaughter and processing, distribution and marketing, and government certification could significantly improve consumer utility. Moreover, consumers had the highest preference for government certification information.

Originality/value

Although numerous studies have been performed on consumer preferences for food safety attributes using a real choice experiment, almost none of them focus on Chinese consumers. Therefore, this study is an attempt to fill this gap. The conclusions of this study can serve as a reference for the Chinese government in developing safe food consumption policies. Although Chinese consumers have cried out for improvement of pork safety, they have different preferences for traceability information; thus, the government must promote traceable food step-by-step, using consumer preferences as a starting point.

Details

China Agricultural Economic Review, vol. 7 no. 2
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 17 April 2020

Tommy Gärling, Dawei Fang, Martin Holmen and Patrik Michaelsen

The purpose of this paper is to investigate how social comparison and motivation to compete account for elevated risk-taking in fund management corroborated by asset…

Abstract

Purpose

The purpose of this paper is to investigate how social comparison and motivation to compete account for elevated risk-taking in fund management corroborated by asset market experiments when performance depends on rank-based incentives.

Design/methodology/approach

In two laboratory experiments, university students (n1 = 240/n2 = 120) make choices between risky and certain outcomes of hypothetical sums of money. Both experiments investigate in which direction risky choices in an individual condition (individual risk preference) are shifted when participants compare their performance to another participant's performance (social comparison), being instructed or not to outperform the other (incentive to compete).

Findings

In the absence of incentives to compete, participants tend to minimize the differences between expected outcomes to themselves and to the other, but when provided with incentives to compete, they tend to maximize these differences. An independent additional increase in risk-taking is observed when participants are provided with incentives to compete.

Originality/value

Original findings include that social comparison does not evoke motivation to compete unless incentives are offered and that increases in risk-taking depend both on what the other chooses and the incentives.

Details

Review of Behavioral Finance, vol. 13 no. 2
Type: Research Article
ISSN: 1940-5979

Keywords

Article
Publication date: 6 March 2017

Alexander Schjøll and Frode Alfnes

The purpose of this paper is to illustrate and discuss methodology issues in menu-labelling experiments in commercial full-service restaurants, and to investigate how the…

1415

Abstract

Purpose

The purpose of this paper is to illustrate and discuss methodology issues in menu-labelling experiments in commercial full-service restaurants, and to investigate how the menu description and price affects customers’ choice of an organic veal entrée in a Norwegian restaurant.

Design/methodology/approach

A menu-labelling experiment was conducted in a fine-dining restaurant during ordinary opening hours over a period of two weeks. The menu description of an organic veal entrée was altered repeatedly and the effect of these changes on the sales of this entrée was investigated.

Findings

Adding words to the menu description, such as “organic”, or describing animal welfare had a very limited effect on customers’ choices in the restaurant.

Research limitations/implications

The research illustrates the use of a natural field experiment in a commercial full-service restaurant and discusses strengths and weaknesses of the methodology.

Originality/value

Few experiments have been performed on the effect on credence attributes in commercial full-service restaurants and there is little knowledge about research challenges in menu-labelling experiments. This paper contributes to the knowledge on both issues by conducting a natural field experiment in a fine-dining restaurant.

Details

British Food Journal, vol. 119 no. 3
Type: Research Article
ISSN: 0007-070X

Keywords

Abstract

Details

Travel Survey Methods
Type: Book
ISBN: 978-0-08-044662-2

Article
Publication date: 14 July 2022

Millie Elsen and Jorna Leenheer

This research examines how the design of the online energy label can be improved to stimulate consumer choice of energy-efficient household products in Web stores. Based…

Abstract

Purpose

This research examines how the design of the online energy label can be improved to stimulate consumer choice of energy-efficient household products in Web stores. Based on general evaluability theory, the authors propose new label formats that aim to improve the evaluability of the label information for consumers and test their influence during two distinct stages in the online decision-making process: consideration set formation and final choice.

Design/methodology/approach

Two large-scale controlled online experiments are conducted with over 10,000 consumers in 10 European countries. The experiments test label alternatives in simulated online store environments, mimicking the two distinct decision stages, for four product categories to enhance generalizability. The data are analyzed using random-intercept linear and logistic regression models to account for their multi-level structure.

Findings

The results show that the impact of the online energy label on consumers’ online decision-making depends on both the label format and the decision stage (consideration vs choice), but in a different way than expected. The findings reveal that the current online energy label is significantly outperformed by a label that provides reference information by incorporating the scale range. This alternative label is particularly effective in the consideration set formation stage, and among consumers who consider energy efficiency a relatively unimportant choice criterion.

Research limitations/implications

Online energy labels encourage consumers to consider and choose more energy-efficient products, especially if scale range information is included. The present results stress the importance of presenting this information early on in the online decision process. They also show that, particularly at this early stage and particularly for consumers who find energy efficiency a relatively unimportant choice criterion, label format matters.

Practical implications

The present findings provide important input for policymakers in the context of the ongoing revision of the EU energy label. They also help online retailers make decisions about when and how to present product information on their websites.

Originality/value

This study contributes to the literature on product labelling by examining the effects of relatively unexplored types of reference information in two distinct stages of the consumer decision-making process. To the best of the authors’ knowledge, this study is the first to test the effectiveness of the online energy label.

Details

European Journal of Marketing, vol. 56 no. 8
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 21 September 2012

Zein Kallas and José Maria Gil

This paper seeks to analyze consumer preferences toward fresh rabbit meat and obstacles and interest in consuming the product.

Abstract

Purpose

This paper seeks to analyze consumer preferences toward fresh rabbit meat and obstacles and interest in consuming the product.

Design/methodology/approach

The paper uses the dual response choice experiment (DRCE) design which allows for analyzing forced and unforced options in choice experiments using the same sample. The heteroscedastic extreme‐value (HEV) model is used due to its relaxation of the restrictive assumption made in the multinomial logit model regarding the identically distributed error term across alternatives. The empirical analysis uses consumer‐level questionnaires to elicit information regarding consumer attitudes toward rabbit meat in Catalonia (Spain).

Findings

The results demonstrate a higher preference for rabbit meat from “Catalan” origin followed by higher quality certification information. Convenience and “ready‐to‐eat” products made from rabbit meat may help bolster increased consumption. An effective communication campaign is needed to educate individuals regarding the health characteristics of rabbit compared to other types of meat. Furthermore, results demonstrate that the ordering of attributes is not significantly different from forced and non‐forced choices obtained from the DRCE design. However, significant differences on the magnitude of the preferences for some attributes' levels are found.

Research limitations/implications

From a methodological point‐of‐view, the study follows a similar design to the dual response choice experiments. However, the study is differentiated by asking consumers whether they are willing to buy the product. More emphasis is made on the purchasing context of the task leading consumers to focus more on their budget constraints by considering the price. The study uses the DRCE design as an alternative of the traditional single stage choice experiments. Owing to budgets constraint, the study could be improved by comparing results from both designs. At the empirical level, it would be interesting to extend the study to other geographical parts in Spain.

Social implications

The study can help policy makers in stimulating demand for rabbit meat. Rabbit meat farmers in Catalonia were forced to abandon their farms due to the lack of demand. Consumption has decreased dramatically. As recommended in the paper, high quality labelling of the meat, improving the carcass format and its presentation and the healthiest characteristic of the meat could be a good way to promote and stimulate demand.

Originality/value

From the empirical point‐of‐view, this study, to the authors' knowledge, is the first application of CE and CV to analyze consumers' preferences towards rabbit meat. Furthermore, it is the first paper that applies the HEV model in agro‐food economics and specifically towards rabbit meat.

Details

British Food Journal, vol. 114 no. 10
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 2 December 2021

Seda Erdem

The aim is to explore the impact of new menu labels on consumers' actual meal purchases with a field experiment undertaken in a local restaurant.

Abstract

Purpose

The aim is to explore the impact of new menu labels on consumers' actual meal purchases with a field experiment undertaken in a local restaurant.

Design/methodology/approach

The author used a field experiment in a natural eating environment at a restaurant to investigate the effect of restaurant menu labelling on consumers' meal choices and opinions on the use of nutritional labels on menus. The experiment included control and treatment conditions in which we offered customers unlabelled and labelled menus, respectively. After individuals' dining experience, the data on meal choices and attitudes to menu labelling was collected via a brief questionnaire. The author then performed inferential statistical analysis to test differences between the control and treatment conditions and logistic regression analysis to explore further what predicts the probability of labels being influential on meal choice.

Findings

The study finds that the information provided to the consumers on restaurant menus matters. The more useful the information is perceived by consumers, the more likely the labels will influence their choices. Calorie content and the walking minutes to burn those calories on labels were considered the most useful aspect of the menu labels.

Originality/value

The study contributes to a better understanding of the impact of menu labelling on actual meal purchases, as well as the best way to communicate calorie and nutrient information to consumers. The author also shares her experience designing a field experiment with a restaurateur for future research.

Details

British Food Journal, vol. 124 no. 11
Type: Research Article
ISSN: 0007-070X

Keywords

Book part
Publication date: 3 June 2008

Susan K. Laury and Charles A. Holt

This paper reports a new experimental test of the notion that behavior switches from risk averse to risk seeking when gains are “reflected” into the loss domain. We…

Abstract

This paper reports a new experimental test of the notion that behavior switches from risk averse to risk seeking when gains are “reflected” into the loss domain. We conduct a sequence of experiments that allows us to directly compare choices under reflected gains and losses where real and hypothetical payoffs range from several dollars to over $100. Lotteries with positive payoffs are transformed into lotteries over losses by multiplying all payoffs by –1, that is, by reflecting payoffs around zero. When we use hypothetical payments, more than half of the subjects who are risk averse for gains turn out to be risk seeking for losses. This reflection effect is diminished considerably with cash payoffs, where the modal choice pattern is to exhibit risk aversion for both gains and losses. However, we do observe a significant difference in risk attitudes between losses (where most subjects are approximately risk neutral) and gains (where most subjects are risk averse). Reflection rates are further reduced when payoffs are scaled up by a factor of 15 (for both real and hypothetical payoffs).

Details

Risk Aversion in Experiments
Type: Book
ISBN: 978-1-84950-547-5

1 – 10 of over 40000