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Numeracy skills hinder a consumer’s ability to meet nutrition and calorie consumption guidelines. This study extends the literature on nutritional labelling by investigating how a calorie counter, which displays the total amount of calories consumers add to a shopping basket, aids them in making food choices. This study aims to ascertain whether the calorie counter affects food choices and also how individual and situational factors moderate this effect.

To test the developed hypotheses, the authors designed an online shopping experiment and administered it to a national panel of British consumers. This included a sub-sample from the general population who did not report any food-related health conditions (n = 480) and a separate sub-sample from the same population who had reported a food-related health condition or lived with someone who had one (n = 250).

The results of this study show that the calorie counter leads to a large and statistically significant reduction in calories purchased when compared to the no nutritional information condition and a small (but statistically insignificant) reduction in the number of calories chosen by consumers when compared to the nutritional information only condition. The main effect is moderated by individual factors such as whether or not the person has a health condition and shopping situations which involve time pressure.

Although the main effect of the calorie counter was not statistically significant when compared to the nutrition information only condition, the effect was in the correct direction and was statistically significant for consumers who had a food-related health condition. The conceptualisation and findings of this study are not only largely consistent with Moorman’s (1990) nutrition information utilisation process but also suggest that situational factors should be considered when understanding nutrition information processing.

The findings from this study provide the first evidence to suggest that aggregating calorie information through a calorie counter can be a useful way to overcome consumer numeracy biases, particularly for those with existing health conditions and who are most motivated to use nutritional information. Based on the descriptive statistics, the main effect was comparable to the UK’s sugar tax in its impact and the authors estimate this would lead to a reduction in calories consumed of about 5,000 per year, even for consumers who did not report a health condition. Further testing is required with different formats, but these results are encouraging and are worthy of further research.

To the best of the authors’ knowledge, this is the first study to investigate how consumers react to aggregated nutritional information for a basket of products, mimicking a real shopping situation. Such information has the potential to become more relevant and useful to consumers in the context of their overall diets. As technology advances rapidly, there is a need to explore alternative ways of presenting nutritional information, so it connects more easily with consumers. These results point very much to a more targeted and personally relevant approach to information provision, in contrast to existing mass communications approaches.

Cause-related marketing (CRM) is a sales strategy that is used to improve the success of a product by including a donation to a charitable cause in its price. While marketers can present CRM donations to consumers as either absolute amounts or percentages, the predominant practice in marketing is to use the latter. As the influence of such presentation formats is not well understood, the purpose of this paper is to systematically examine their effects while taking into account the numerical ability (numeracy) of the consumers.

In two experiments, the presentation format of the donation amounts (absolute vs percentage) were manipulated and individual differences in numeracy were measured. The product type (hedonic vs utilitarian) and sales price were varied. We found this effect for high and low price levels and for hedonic and utilitarian products.

The results of both experiments consistently supported the hypothesis presented in this paper that for people with lower numeracy, their purchase intentions were higher when absolute donation amounts were presented. We found this effect for high and low price levels and for hedonic and utilitarian products.

The present paper shows that the current practice of presenting donations in percentages is inferior to presenting donations in absolute amounts because a large number of consumers have trouble interpreting percentages appropriately. Therefore, it indicates that the default option for marketing managers should be to present donations in absolute amounts for hedonic and utilitarian products with low and high prices.

This study examined subjective numeracy and its relationship with accounting judgements on probability issues.

A subjective numeracy scale (SNS) questionnaire was distributed to 231 accounting students to measure self-evaluated numeracy. Modified Bayesian reasoning tasks were applied in an accounting-related probability estimation, manipulating presentation formats.

The study revealed a positive relationship between self-evaluated numeracy and performance in accounting probability estimation. The findings suggest that switching the format of probability expressions from percentages to frequencies can improve the performance of participants with low self-evaluated numeracy.

Adding objective numeracy measurements could enhance results. Future numeracy research could add objective numeracy items and assess whether this influences participants' self-perceived numeracy. Based on this sample population of accounting students, the findings may not apply to large populations of accounting-information users.

Investors' ability to exercise sound judgement depends on the accuracy of their probability estimations. Manipulating the format of probability expressions can improve probability estimation performance in investors with low self-evaluated numeracy.

This study identified a significant performance gap among participants in performing accounting probability estimations: those with high self-evaluated numeracy performed better than those with low self-evaluated numeracy. The authors also explored a method other than additional training to improve participants' performance on probability estimation tasks and discovered that frequency formats enhanced the performance of participants with low self-evaluated numeracy.

The purpose of this paper is to review evidence related to the factors that influence people's understanding of health information and how miscommunication of health information can jeopardize people's health.

A literature review was conducted of English language articles, cited in major literature databases from the last 40 years, which describe factors related to comprehension of health information. A total of 93 articles were included.

The paper finds that health communication should take into consideration the role of the following factors on the processing and interpretation of health information: health literacy, format presentation of information, and human cognitive biases and affective/personal influences.

Health communication is a major component of health care. Every health care encounter involves exchange of information, which is intended to enhance people's knowledge in order to assist them to make an informed decision about their health care. However, the mere act of providing information does not guarantee comprehension. People's comprehension of information depends on several factors, including health literacy and numeracy skills, the format presentation of health information and human cognitive biases in the information processing and interpretation. Ineffective health communication can result in a wide range of direct and indirect health consequences including failure to understand and comply with treatment, poorer health status, increased risk of injuries, increased hospitalization, and decreased use of preventive services.

This paper provides health professionals and educators with an overview of important issues related to health communication and highlights strategies that facilitate effective communication to help people to make informed decisions about their health care.

The paper aims to critically examine overconfidence in numeracy among higher education (HE) graduates and its impact on their employability. The paper discusses the extent to which graduates, because of higher qualifications, overstate their numerical abilities.

The paper is a review of the academic literature examining the theoretical significance of overconfidence in HE. The review subsequently draws on practice and policy reports that evidence graduates' overconfidence in numeracy and basic skills.

The article shows a significant interaction between the level of qualification and overstatement of numerical abilities. The analysis found that graduates do not always have an important basic skill such as numeracy whose impact on work performance is significant.

The findings are momentous for rethinking HE curricula, employee development in organisations and government skills strategy. The article advocates more inclusive and interpretive research for a greater understanding of the issues and offers useful data to policymakers and HE institutions in preparing graduates for work and decision-making. Further research in the field is required to enable the formulation of more authoritative conclusions.

A critical contribution of this reflection is to have linked the evidence from the academic literature with employer surveys about graduate basic skills to draw the attention to a vital issue affecting national and organisational productivity, thus substantiating anecdotal evidence about graduate overconfidence. This reinforces the value of systematic literature review in research, as it provides an opportunity for more informed policy formulation as well as extending the body of research.

The purpose of this article is to develop a theoretical explanation – financial numeracy – for consumer proficiency with financial services. With sufficient financial numeracy, consumers benefit fully from financial services and make competent choices in regard to financial management.

The article builds theory by combining consumer cognitive capacity and customer knowledge theories with findings from prior studies of consumer difficulties with financial services to introduce a comprehensive model of the antecedents and consequences of financial numeracy with testable propositions for many psychographic and cultural influences and moderators.

Financial numeracy demands that consumers possess sufficient financial information processing capacity and ability as well as sufficient prior knowledge of financial concepts. Although partly a function of individual cognitive ability, it can be enhanced through appropriate experience with financial instruments and familiarity through personal financial materials when consumers are motivated to process them. Financial numeracy directly affects financial management outcomes related to borrowing, saving, and taxes. It indirectly affects higher‐order financial consequences, such as a consumer's credit score, interest rates charged on subsequent loans, net worth, likelihood of bankruptcy, and size of inheritance.

Consumers around the world are increasingly experiencing difficulties with financial services. To advance research in financial services marketing beyond documenting troublesome financial behaviours of consumers, this conceptual model provides insights to help increase consumer proficiency in comprehending and managing financial services based on knowledge about consumer information processing, learning, memory and the cultural and psychographic influences on these internal processes.

Research on biases in investment decision-making is indubitably important; however, studies in this context are relatively scarce. Unpacking bias has received attention in the psychological literature yet very little attention from management accounting research. This bias suggests that the perceived probability that an event will occur generally increases when the event's description is unpacked into a disjunction of subevents. The authors hypothesize that for a capital investment decision context, managers' judgement of the probability of a future event depends on whether the event is described as one packed event or is unpacked into several disjoint subevents. Additionally, the authors propose that altering the format of the description of an event's occurrence from percentage values to relative frequencies reduces unpacking bias.

To test the study’s hypotheses, the authors conducted two experiments based on a 3 × 2 mixed experimental design in which manager participants were asked to estimate the failure probabilities of technical systems in the context of an investment decision.

The authors provide evidence that unpacking bias occurs in an investment scenario, which can be characterized as a high-stakes decision context. Changing the format in which probabilities are presented from percentage values to relative frequencies significantly reduces the bias.

Additional instructions did not further reduce unpacking bias.

For investment decisions under uncertainty, performance indicators in management templates should be presented in relative frequencies to improve managerial decision-making. The fact that the authors could not show an additional effect of instructions in management accounting reports indicates that it is challenging for management accountants to reduce the biased decision-making of managers by “teaching” them through the provision of instructions.

The authors contribute to accounting research by illustrating unpacking bias and by deriving a debiasing mechanism in a capital investment decision context.

The purpose of this paper is to address the role of cognitive skills and extent of skill use at work in explaining the immigrant–native wage gap in Europe. The study targets immigrant–native disparities in literacy and numeracy cognitive skills, as important, yet not exhaustive factor behind immigrants’ wage penalty.

The research relies on the Program of International Assessment of Adult Competencies data for 15 European countries. The empirical analysis employs multivariate regression analysis and incorporates the full set of plausible values for each skill domain, to correctly measure cognitive skills. To estimate standard errors, the authors employ Jackknife replication methodology with 80 replication weights and final population weight.

The authors document that, on average, immigrants achieve substantially worse scores in literacy and numeracy test domains. Only highly educated immigrants tend to improve their skills over time in host countries. The results of wage gap analysis indicate that having cognitive skills, demographic profile and occupation category comparable to natives does not yield comparable wage rate. The remaining wage gap results from the systematic differences in skills application at work, as immigrants use their skills to lower extent, relative to natives.

The research employs a novel measure of productive human capital, which accounts for cognitive skills in literacy and numeracy domains, and frequencies of skill use at work. It allows to more precisely evaluate the immigrant–native disparity in human capital application and its reflection on the wage rate.

The subjective interpretation of numerical information can induce the so-called unit effect, i.e. the scale and unit chosen to quantify such information might influence a person's judgment. Although this bias is well-known, until now, it has been difficult to obtain an overview of the respective research. There are a variety of versions of the unit effect, different terms are used for the same kind of effect and proposals for grouping such effects lack a straightforward typology.

A literature review is conducted using a systematic literature search design. We address the following questions: (1) What knowledge exists about the unit effect? (2) What is a suitable concept for structuring the findings? (3) What ideas can be deduced for future research focusing on performance management?

A total of 11 versions of the unit effect and 27 moderating variables are identified and grouped into four contexts in which the effects occur. Structured according to these contexts, research ideas are depicted. They include suggestions for studies adapted to the field of performance management to scrutinize the main effects and moderators addressed in the literature to date as well as to consider additional potential moderators.

Few publications explicitly address the unit effect from the perspective of performance management. As one of the core objectives of this business function is to enable rational decision-making based on numerical information, it can be assumed that corresponding research will be very fruitful.