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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 discrete…

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 analysis, such…

9337

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 market…

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 menu…

1536

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

Article
Publication date: 23 August 2023

Achilleas Vassilopoulos, Lydia Papadaki and Phoebe Koundouri

Storytelling through virtual reality (VR) combines the strengths of cutting-edge technology with traditional informational campaigns. As a tool for climate change mitigation, VR…

Abstract

Purpose

Storytelling through virtual reality (VR) combines the strengths of cutting-edge technology with traditional informational campaigns. As a tool for climate change mitigation, VR has been shown to educate individuals and stimulate both emotional and cognitive responses that promote pro-environmental behavior. This paper aims to investigate whether these benefits extend to the field of green investing through an experiment conducted with a sample of small business entrepreneurs.

Design/methodology/approach

The experimental design involved making choices between bonds varying in maturity dates, annual interest and environmental classification (regular versus green). To identify potential impacts of the immersive experience on investment decisions, these choices were made both before and after exposure to VR videos illustrating the devastating effects of climate change. A multiple price list was employed to elicit subjects' risk preferences, enabling the joint estimation of the treatment effect and the risk and time preference parameters.

Findings

The findings indicate that, when risk and time preference parameters are controlled for, a VR experience can nudge toward green investment choices. This effect is more profound among those who already exhibit a greater propensity to opt for green investments.

Originality/value

Previous research shows that negative emotions, such as guilt, affect pro-environmental intentions, as well as actions, while message vividness through immersive experiences is effective in nudging greener behavior. Since analogous results in the framework of financial investments are not currently available, this paper seeks to test whether VR videos depicting the adverse effects of climate change can generate negative emotions associated with experiencing these effects and make them salient in subsequent investment decisions made by small business entrepreneurs.

Details

Review of Behavioral Finance, vol. 16 no. 2
Type: Research Article
ISSN: 1940-5979

Keywords

Article
Publication date: 24 November 2023

Toritseju Begho and Shuainan Liu

People often look to the opinions and actions of others to guide their food choices, especially when they are uncertain or unfamiliar with a particular food. This influence can be…

Abstract

Purpose

People often look to the opinions and actions of others to guide their food choices, especially when they are uncertain or unfamiliar with a particular food. This influence can be positive or negative depending on the context and can have an impact on food consumption and health outcomes.

Design/methodology/approach

The paper analysed data from 500 young adult consumers in China and employed a multi-study design to examine various aspects of social proof and herd behaviour in food choices. Experiment 1 examined the influence of testimonials from an influential person on buying decisions and eating behaviour. Experiment 2 explored whether herd behaviour drives food options. Experiment 3 assessed the influence of social proof on food choices. Chi-square tests of independence were conducted to examine the relationship between social proof and food choice, as well as herd behaviour and food decision-making. Several logit regression analyses were performed to identify the factors that drive consumers' susceptibility to social proof and herding.

Findings

The results indicated that the source of feedback, whether from an influential person or a family member, did not have a statistically significant effect on the likelihood of following the food guide recommendations. The preference for a healthier food option was stronger than following the herd. In contrast, social proof in the form of reviews and ratings influenced participants' choices. The paper highlights the usefulness for stakeholders and policymakers seeking to promote healthier eating habits.

Originality/value

The originality lies in its comprehensive approach, combining multiple experiments and analytical methods.

Details

British Food Journal, vol. 126 no. 3
Type: Research Article
ISSN: 0007-070X

Keywords

Open Access
Article
Publication date: 9 February 2024

Thomas Koerber and Holger Schiele

This study aims to examine decision factors for global sourcing, differentiated into transcontinental and continental sourcing to obtain insight into locational aspects of…

Abstract

Purpose

This study aims to examine decision factors for global sourcing, differentiated into transcontinental and continental sourcing to obtain insight into locational aspects of sourcing decisions and global trends. This study analyzed various country perceptions to reveal their influence on sourcing decisions. The country of origin (COO) theory explains why certain country perceptions and images influence purchasing experts in their selection of suppliers.

Design/methodology/approach

This study used a two-study approach. In Study 1, the authors conducted discrete choice card experiments with 71 purchasing experts located in Europe and the USA to examine the importance of essential decision factors for global sourcing. Given the clear evidence that location is a factor in sourcing decisions, in Study 2 the authors investigated purchasers’ perceptions and images of countries, adding country ranking experiments on various perceived characteristics such as quality, price and technology.

Findings

Study 1 provides evidence that the purchasers’ personal relationship with the supplier plays a decisive role in the supplier selection process. While product quality and location impact sourcing decisions, the attraction of the buying company and cultural barriers are less significant. Interestingly, however, these factors seem as important as price to respondents. This implies that a strong relationship with suppliers and good quality products are essential aspects of a reliable and robust supply chain in the post-COVID-19 era. Examining the locational aspect in detail, Study 2 linked the choice card experiments with country ranking experiments. In this study, the authors found that purchasing experts consider that transcontinental countries such as Japan and China offer significant advantages in terms of price and technology. China has enhanced its quality, which is recognizable in the country ranking experiments. Therefore, decisions on global sourcing are not just based on such high-impact factors as price and availability; country perceptions are also influential. Additionally, the significance of the locational aspect could be linked to certain country images of transcontinental suppliers, as the COO theory describes.

Originality/value

The new approach divides global sourcing into transcontinental and European sourcing to evaluate special decision factors and link these factors to the locational aspect of sourcing decisions. To deepen the clear evidence for the locational aspect and investigate the possible influence of country perceptions, the authors applied the COO theory. This approach enabled authors to show the strong influence of country perception on purchasing departments, which is represented by the locational effect. Hence, the success of transcontinental countries relies not only on factors such as their availability but also on the purchasers’ positive perceptions of these countries in terms of technology and price.

Details

Journal of Business & Industrial Marketing, vol. 39 no. 13
Type: Research Article
ISSN: 0885-8624

Keywords

Open Access
Article
Publication date: 6 April 2023

Nguyen Quoc Viet, Sander de Leeuw and Erica van Herpen

This paper investigates the impact of sustainability information disclosure on consumers' choice of order-to-delivery lead-time in relation to consumers' sustainability concern.

2782

Abstract

Purpose

This paper investigates the impact of sustainability information disclosure on consumers' choice of order-to-delivery lead-time in relation to consumers' sustainability concern.

Design/methodology/approach

Based on two choice experiments with participants from the Netherlands (n = 348) and the United Kingdom (n = 1,387), the impact of sustainability information disclosure was examined in connection with consumers' concerns for environmental and social sustainability. Information on environmental impact (carbon emission) and social impact (warehouse workers and drivers' well-being) was considered and compared.

Findings

Disclosing sustainability impact information significantly increased consumers' preference and choice for longer delivery times, with equivalent effects for environmental and social impact information. Consumers' relevant (environmental or social) sustainability concern as personality traits enhanced effects on preferences, as did priming of environmental concern.

Research limitations/implications

Future research may consider differences between product categories or e-commerce companies' reputation in sustainability activities.

Practical implications

The findings provide opportunities for online retailers to influence consumer choice of delivery time, especially through disclosing environmental and/or social sustainability information.

Originality/value

This study fills a gap in the literature on sustainability information disclosure to actively steer consumer choice of delivery time, particularly regarding the effect of social sustainability impact information in comparison to its environmental counterpart.

Details

International Journal of Physical Distribution & Logistics Management, vol. 53 no. 11
Type: Research Article
ISSN: 0960-0035

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

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