Consumer Bias Research Articles

Influencer-product attractiveness transference in interactive fashion marketing: the moderated moderating effect of speciesism against AI

PurposeFashion marketers are adopting attractive virtual personalities to replace human influencers on social media, but the impact of consumer bias against virtual influencer acceptance is not fully understood. Drawing upon match-up hypothesis, attribution theory and speciesism against artificial intelligence (AI), this research investigates how speciesism shapes the influencer-product attractiveness transference in AI-powered influencer marketing for fashion products.Design/methodology/approachThree studies were conducted (N = 1,385) to test the influencer-product attractiveness transference, the moderating role of influencer type and the moderated moderating role of speciesism against AI.FindingsOur studies validated the attractiveness transference and revealed that influencers’ attractiveness promotes purchase intention via perceived product attractiveness. The adoption of virtual (vs human) influencers weakens the attractiveness transference and attenuates the mediating effect. Low speciesism boosts the effectiveness of virtual influencers, such that attractiveness transference disappears only when high-speciesism consumers react to virtual influencers.Originality/valueOur findings clarify how influencers’ physical appearance, AI application and speciesism together impact interactive fashion marketing, offering practical insights into successful influencer strategies on social media.

Elite Genotypes of Water Yam (Dioscorea alata) Yield Food Product Quality Comparable to White Yam (Dioscorea rotundata)

Water yam (Dioscorea alata), also known as winged yam, is one of the most economically significant yam species, serving as a staple food crop in tropical and subtropical regions. Its widespread cultivation is due to its favorable agronomic characteristics, including high yield, improved tuber storability, and significant nutritional and health benefits. Despite these advantages, water yam often remains underutilized due to consumer biases towards its traditional food product quality, particularly for pounded yam preparations. In this study, we evaluated fifty-eight improved genotypes of water yams grown across three locations to assess their potential to produce superior food qualities comparable to the widely consumed white yams (D. rotundata). Seven white yams, including popular landraces, were used to set thresholds for desirable food quality. Through standardized analysis, yam samples were assessed for their biochemical composition and culinary and sensory texture attributes. The results revealed varying ranges of dry matter (DM), starch, sugar, protein, crude fiber (CF), fat, and amylose, spanning from 20.35 to 35.95 g/100 g, 42.81 to 83.31 g/100 g, 4.76 to 6.95 g/100 g, 4.33 to 6.62 g/100 g, 1.55 to 3.89 g/100 g, 0.32 to 0.53 g/100 g, and 29.27 to 38.52 g/100 g, respectively. The mean values (±SD) were found to be 29.85 ± 4.0 g/100 g (DM), 67.90 ± 44g/100 g (starch), 5.82 ± 0.64 g/100 g (sugar), 6.31 ± 1.31 g/100 g (protein), 2.14 ± 0.57 g/100 g (crude fiber), 0.44 ± 0.08 (fat), and 33 ± 16.43 g/100 g (amylose). Significant effects (p < 0.001) of the planting environments and genotypes on the biochemical composition of the yam samples were observed, except for the sugar content. Furthermore, specific water yam genotypes, such as TDa 0900354, TDa 9801174, TDa 1401619, TDa 1400301, TDa 140091, TDa 0100029, TDa 1100793, TDa 1401249, TDa 1100242, and TDa 1401276, exhibited biochemical properties and culinary and sensory textural attributes akin to the improved white yam genotypes and their landrace counterparts. These findings underscore the potential for promoting selected water yam genotypes to diversify food options and reduce reliance on a limited array of crops, particularly in traditional food-insecure regions of tropical Africa.

Can a mandate be justified by unrealized gains? Evidence from a heating energy transition program in China

Mandatory policies are usually motivated by the desire to correct consumer bias caused by imperfect information or inattention to benefits or costs. However, for consumers whose choices already reflect their true preferences, such policies can lead to a utility loss. Therefore, the policy effects deserve closer scrutiny. Using a large-scale household survey and a choice experiment, this study estimates the welfare effects of a mandatory energy transition program in northern China. Through a discrete choice model, we identify the effect of the mandate on household participation in the transition and simulate the welfare change caused by the mandate. We find that the mandate was not always justified by the unrealized health gains; it may have improved social welfare but at the expense of utility loss for some households, especially for lower-income ones and those in areas with higher transition costs and stricter mandates. These findings shed light on ways to improve the distributional welfare effect when a mandate is adopted, for example, by differentiating policy implementation across income groups and considering both efficiency and equity issues in the long run.

Competition and Cognition in the Market for Online News

ABSTRACT Does it pay to appear unbiased in an attention-based economy where bias sells? We study this question in light of increased consumer partisan polarization and biases alongside greater technology usage and partisanship in journalism. Using a game-theoretic framework that captures the essential properties of the online news market, we show that polarization with biases may constrain neutral and partisan news websites’ engagement-enhancing strategies differently; and online news providers can strategically exploit consumer perceptions to maximize engagement-driven revenues. Our analysis suggests that neutral news outlets depend on polarization imbalance and perceptions of neutrality. Moreover, increased search costs and consumer bias toward partisan outlets can lessen the echo chamber effect in online news consumption. Our work advances discussions on online news neutrality, providing fresh insights into the “marketplace of ideas” view and source versus content neutrality in the face of increasing affective polarization.

Exploring the Impact of Visual Perception and Taste Experience on Consumers’ Acceptance of Suboptimal Fresh Produce

Consumers’ tendency to avoid purchasing cosmetically “suboptimal” fruits and vegetables has been widely recognized as a significant contributor to food waste. However, the mechanisms that shape and influence this tendency remain largely unknown. The current study evaluates the impact of visual perception and taste experience on willingness to purchase and quality perceptions of fresh produce, focusing on two types of suboptimality: small size and abnormal shape. The study employed a 3 × 2 between-subjects factorial design in which participants indicated their perceived quality and willingness to purchase suboptimal tomatoes and sweet peppers in three informational conditions: viewing the vegetable picture (no taste), view then taste (participants tasted a slice after viewing the vegetable picture), and taste then view. The results revealed that, as expected, the abnormally shaped vegetable was judged less favorably than the normal one. The small-sized vegetable was judged more favorably than the regular one, in contrast to the current size regulations applied by retailers. Tasting significantly increased people’s willingness to purchase the abnormally shaped produce, but had no effect on the willingness to purchase the abnormally sized produce, nor did it impact the perceived quality of the abnormal products. This study highlights consumer bias towards aesthetic qualities and suggests that direct taste experiences can alter perceptions towards accepting visually imperfect produce, thereby contributing to sustainability and food-waste reduction efforts.

Cricket Protein Isolate Extraction: Effect of Ammonium Sulfate on Physicochemical and Functional Properties of Proteins.

Crickets are known to be a promising alternative protein source. However, a negative consumer bias and an off-flavor have become obstacles to the use of these insects in the food industry. In this study, we extracted the protein from commercial cricket powder by employing alkaline extraction-acid precipitation and including ammonium sulfate. The physicochemical and functional properties of the proteins were determined. It was found that, upon including 60% ammonium sulfate, the cricket protein isolate (CPI) had the highest protein content (~94%, w/w). The circular dichroism results indicated that a higher amount of ammonium sulfate drastically changed the secondary structure of the CPI by decreasing its α-helix content and enhancing its surface hydrophobicity. The lowest solubility of CPI was observed at pH 5. The CPI also showed better foaming properties and oil-holding capacity (OHC) compared with the cricket powder. In conclusion, adding ammonium sulfate affected the physicochemical and functional properties of the CPI, allowing it to be used as an alternative protein in protein-enriched foods and beverages.

How can we manage biases in artificial intelligence systems – A systematic literature review

Artificial intelligence is similar to human intelligence, and robots in organisations always perform human tasks. However, AI encounters a variety of biases during its operational process in the online economy. The coded algorithms helps in decision-making in firms with a variety of biases and ambiguity. The study is qualitative in nature and asserts that AI biases and vulnerabilities experienced by people across industries lead to gender biases and racial discrimination. Furthermore, the study describes the different types of biases and emphasises the importance of responsible AI in firms in order to reduce the risk from AI. The implications discuss how policymakers, managers, and employees must understand biases to improve corporate fairness and societal well-being. Future research can be carryout on consumer bias, bias in job automation and bias in societal data.

Consumer bias against evaluations received by artificial intelligence: the mediation effect of lack of transparency anxiety

PurposeWill consumers accept artificial intelligence (AI) products that evaluate them? New consumer products offer AI evaluations. However, previous research has never investigated how consumers feel about being evaluated by AI instead of by a human. Furthermore, why do consumers experience being evaluated by an AI algorithm or by a human differently? This research aims to offer answers to these questions.Design/methodology/approachThree laboratory experiments were conducted. Experiments 1 and 2 test the main effect of evaluator (AI and human) and evaluations received (positive, neutral and negative) on fairness perception of the evaluation. Experiment 3 replicates previous findings and tests the mediation effect.FindingsBuilding on previous research on consumer biases and lack of transparency anxiety, the authors present converging evidence that consumers who got positive evaluations reported nonsignificant difference on the level of fairness perception on the evaluation regardless of the evaluator (human or AI). Contrarily, consumers who got negative evaluations reported lower fairness perception when the evaluation was given by AI. Further moderated mediation analysis showed that consumers who get a negative evaluation by AI experience higher levels of lack of transparency anxiety, which in turn is an underlying mechanism driving this effect.Originality/valueTo the best of the authors' knowledge, no previous research has investigated how consumers feel about being evaluated by AI instead of by a human. This consumer bias against AI evaluations is a phenomenon previously overlooked in the marketing literature, with many implications for the development and adoption of new AI products, as well as theoretical contributions to the nascent literature on consumer experience and AI.

The paradox of technology: Negativity bias in consumer adoption of innovative technologies

AbstractInnovative technologies often feature inherently conflicting properties. This poses a challenge for marketers because negative properties not only weigh heavily on consumers' technology adoption decisions but potentially do more so than positive ones. To shed light on the paradox of technology and its underlying processes, the present research develops a conceptual model drawing on technology adoption and valence perception theories about the prevalence of negativity bias in consumers' technology adoption decisions with its unique effect through the serial chain of consumers' perceptions of risk and trust regarding the technology. Results of three studies (N = 1309) demonstrate that the effect of negative valence consistently outperforms that of positive valence in consumers' technology adoption intentions (Studies 1–2) and decisions (Study 3). Furthermore, results show that the disproportionate effect of negative (vs. positive) valence can be explained by the proposed serial causal chain through consumers' perception of risk of the technology and trust in the technology (Studies 2–3) while ruling out company trust and consumer knowledge as alternative drivers of the effects (Study 3). These findings contribute to the pertinent literature on consumer psychology in decisions to adopt novel technologies in that they quantify and explain the potential outcome stemming from the ambiguous properties of novel technology. Moreover, this study finds negativity bias to be an often overlooked consumer bias with implications for marketing practice and useful for understanding and lowering resistance towards artificial intelligence technology.

Financial fraud and individual investment behavior

We show that, after the revelation of financial fraud in a major pension fund manager, two-thirds of affected investors fail to divest. Inert investors are on average younger, of lower SES and more influenced by default options. The majority of those who divest move their money to the only state-run option on the fund menu. The revelation of fraud also induces a small movement of investors from non-fraudulent private investment funds to the state alternative. We further show that most fraud victims end up in underperforming high-fee funds through their prior affiliation with a subscription-based financial advisor. Our analysis is based on the remarkable events surrounding the expulsion of Allra from the Swedish Premium Pension, and administrative, individual-level data on mutual fund choices and background characteristics. Our results illustrate that fraudulent fund managers may exploit widespread consumer biases in choice-oriented pension plans, and that information interventions by the government are important but far from fully effective in nudging victimized investors to take the right action. Pension plans may be characterized by investor inertia even under extreme circumstances such as fraud.

Price dynamics of Swedish pharmaceuticals

This paper investigates price patterns of off-patent pharmaceuticals in Sweden. I show that price dynamics are dependent on the number of competitors in the market. The price patterns follow predictions from a model of dynamic price competition in which the demand for pharmaceuticals incorporates the known biases of consumers: habit persistence and brand preferences. Using the regulated market of Swedish pharmaceuticals, I show that price dynamics may help in identifying possible tacit collusion by manufacturers in markets where consumers experience behavioral frictions.

Consumer biases in the perception of organizational greed

AbstractThis article extends current models of how consumers judge or perceive organizations as greedy using the theoretical framework of motivated moral reasoning. We show that inherent features of an organization (size and ‘black sheep’ status) and its behaviour (relative frequency) bias consumer perceptions of organizational greed. We use an experimental methodology, present subjects with vignettes describing different scenarios, validate our questionnaire using confirmatory factor analysis, and test our hypotheses using a general linear model with covariates. Our findings suggest that consumer perceptions of organizational greed are subject to three effects: the underdog effect (Study 1, n = 496), the black sheep effect (Study 2, n = 229) and the ‘common is moral’ heuristic (Study 3, n = 249). This is the first study to investigate greed under a motivated reasoning paradigm and to show that perceptions of organizational greed are subject to socio‐psychological biases. This study also provides advice on branding and positioning strategies that appeal to the underdog status of an organization or its local origins.

Affective and cognitive factors that hinder the banking relationships of economically vulnerable consumers

PurposeThe aim of this paper is to explore the affective and cognitive factors that condition banking relationships for economically vulnerable consumers and how these factors contribute to increasing financial difficulties and exclusion. This research, performed on a set of focus groups, bases its findings on a combination of experimental and discourse analysis methods.Design/methodology/approachFinancial decisions are not rational and can be biased by affective and cognitive factors. Behavioural finance has focused very little on analysing how consumer biases influence relationships with banking institutions. Additionally, these relationships are affected by the digitalization and transformation of banking business. Thus, in the case of economically vulnerable consumers, who are not profitable for the increasingly competitive banking industry and lack financial abilities, their risk of financial exclusion is increasing.FindingsThe results show that distrust and shame lead to financial difficulties in economically vulnerable consumers. Distrust generates problems of access and self-exclusion, while shame generates difficulties of use. This lack of trust makes them more rational when dealing with machines than with people, showing greater banking difficulties for consumers with a “person-suspicious” profile.Originality/valueThis finding can help regulators establish limits on banking behaviour, require banks to incorporate affective and cognitive factors in their convenience tests and detect new variables that can help them improve their insolvency ratios and reputations.

Personalizing Consumer Interventions Through Leveraging Behavioral Economics

The success of a product is largely based on its customers’ perceived value, which itself is heavily influenced by their beliefs and behavioral biases during the product's lifecycle. Traditional marketing analytics solutions seldom account for such biases and hence yield only suboptimal results. While the field of behavioral economics (BE) has much to offer in identifying human biases in decision making, bias models tailored to specific business problems are hard to come by. Understanding and shaping customer behavior for promoting sustainable products is even more challenging because research on consumer valuation of such products is still in its infancy. Even when interventions recommended by a BE model can be effective at the level of a population, it may not provide desired results at the individual customer level. In this work, we frame our optimal business intervention problem as a reinforcement learning problem, leveraging BE to design the action-space which consists of intervention types that account for consumer biases. Our solution is driven by a use case that aims to promote a new energy storage product based on repurposed EV battery cells. Empirically, we show not only can we achieve substantially better (55%) business outcomes by optimizing our intervention policies, but we can further improve (extra 13%) these outcomes by personalizing these policies using additional customer demographic features.

The Philosophy of Electronic Word of Mouth and Consumer Buying Behavior in Modern Era

Electronic word of mouth (eWoM) is gaining a lot of importance during this era of digitalization. The aim of this study is to explore how different dimensions of eWoM are translated through the biases that are a component of each individual consumer’s mindset and psychology, eventually resulting in a positive or negative purchase behaviour by the consumer. There has been a lot of literature related to the basic model of communication in a marketing context. In most of the studies of the communication model, the characteristics of the sender and the channel have been explored, but the receiver dynamics still remain a relatively less explored area of the marketing communication literature. Data was collected through a Google Doc-based questionnaire. An encouraging response of 81% was received from the respondents. Before examining the final procedures of analysis, reliability and validity are established through Cronbach’s Alpha, discriminant and convergent validities. Results show that eWoM has a strong impact on consumer buying behavior. Lastly, our results indicate that consumer bias moderates the relationship between eWoM and consumer buying behaviours. There are several practical implications of this research study. Brands must practice marketing strategies that enable value creation, which ultimately results in positive eWoM.

Visual Size Matters: The Effect of Product Depiction Size on Calorie Estimates.

Consumers’ calorie estimates are often biased and inaccurate. Even the presence of relevant nutritional information may not suffice to prevent consumer biases in calorie estimation. The current work demonstrates across two studies that visual cues given by larger product depictions lead to increased calorie estimates. Further, it demonstrates that these effects occur even when consumers are given, and notice, information about product quantity. The findings thus shed light on a novel biasing effect on consumer calorie evaluation, and, more generally, the findings provide evidence for the importance of visual inputs over textual ones in consumers’ nutritional assessment of food products. In this, the current research provides insights relevant to helping nutritional literacy via awareness of biasing influences on caloric assessment. In the same manner, the research also provides insights that may assist the regulator protecting consumers by highlighting factors biasing nutritional assessment.

The Role of Bias in Economic Models of Law

AbstractBehavioral economics has highlighted the impact of various biases on economic outcomes. This essay reviews how biases have been incorporated into economic models of the law and the resulting implications for the assessment of different legal rules and policies. It focuses on two contexts. The first concerns biases that affect consumer purchases of risky products. Using a standard accident model that incorporates various forms of consumer bias, we discuss how bias can affect the efficient assignment of liability for product-related accidents. The second context concerns biases that affect the administration of law, particularly regarding the adjudication of guilt, the lawmaking function of trials, and criminal sentencing. We examine procedural rules like precedent and sentencing guidelines, both of which are aimed at curtailing judicial bias.

Competition law and digital ecosystems: Learning to walk before we run

Abstract The paper analyzes the challenges faced by competition authorities with respect to the digital sector. Borrowing insights from the business policy literature and from the economic literature, the paper first analyzes the specificities of digital firms (multi-sided platforms and ecosystems) with respect to their development and competitive strategies. Building on this foundation the paper explores some of the challenges of applying traditional competition analysis to competition in the business sector. We then discuss a number of issues relevant to competition law enforcement in the digital sector starting with the role of data, competition within ecosystems and between ecosystems, consumer biases, and the role of gatekeepers. We conclude with a research agenda for economists and competition authorities.

Foreign Product Preference among Indian Consumers: The Role of Product Reviews, Word of Mouth and Quality of Shared Information

Decades post 1990 have seen rapid globalisation and technological advancement in the field of e-commerce, exposing consumers in emerging economies to an earlier unavailable wider range of foreign products and brands. Although the preference for both foreign and domestic products largely depends on consumer biases, studies show that shared information can influence consumer decision-making. This study aims to investigate the Indian consumers’ intentions towards foreign brands for apparel products. Using the theoretical foundation of the Theory of Planned Behaviour (TPB) and Social Exchange Theory (SET), the collected primary survey of 204 Indian consumers across a single product category (apparel) was analysed using Structural Equation Modelling (SEM). The study determined that both “product reviews” and “informal word-of-mouth” discussions have a positive and significant impact on consumer’s preference towards foreign brands. Further, the quality of information shared also plays a significant role in foreign brand preference. We also found evidence that an increase in income positively influences behaviour, however, the level of education has a negative influence. The findings of the study might serve as a roadmap for any foreign apparel brand looking to establish itself in an emerging market like India.

Rohvi

Study level/applicability This case was successfully taught in a second-year MBA marketing course on the science of behavior change. It would be suitable for first-year MBA and executive education programs. The material would work well on courses on women in business, women as leaders and women in data science. The female protagonist creates a tech platform and uses a data-driven model. Subject area Marketing – it was used in a module around leveraging existing insights and creating new ones in marketing strategies. The course is structured around a “pathway to behavior change” framework. This case focuses on the analysis segment of the model, introduces targeted behavioral challenge(s) and lends itself to identifying consumer insights, biases and behaviors. It uses that analysis to learn about the market, competition and gaps to fill. Case overview This case uses a startup in the retail industry to explore the leverage of behavioral science to enrich a business model and structure a marketing campaign. The material unfolds the testing of an innovative process and use of persuasion to align business practices with human behavior and scale. In addition, it gives the opportunity to discuss how a minimal tech solution could bring in market data and provide a test platform to larger clients.The founder of Rohvi, Sara Whiffen, created a platform that allowed shoppers to buy clothing items from local retail stores, use them and after a few wears, return the items for partial store credit. The business model was based on Whiffen’s experience in the automobile industry with used cars. Following her first few years in the business, Whiffen had to make some decisions around engaging clients on two sides – retailers and consumers. How can an innovative startup leverage behavioral science to persuade multiple stakeholders? Expected learning outcomes • Learn marketing concepts in material and a tech platform featuring a female protagonist and team; • practice evaluating a product and capturing value using behavioral science; • understand consumer/business biases and practice forming and delivering a persuasive message; • learn to leverage and create new insights to aid behavior change in business-to-consumer (B2C) and business-to-business (B2B) contexts; • analyze behavioral insights to identify new opportunities in a competitive marketplace; • unfold a framework to explore consumer motivation in recommerce; and • explore the use of experimentation in changing consumer behavior and improving decision-making. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes. Social implications Females need to be represented in core business education curriculum such as data analysis in addition to classes focused on social equity and business. This all female executive team pursued an innovative process built on a technology platform using a data-driven model to gain enterprise clients. The material offers an opportunity to explore sustainability. Subject code CSS 8: Marketing