Promotion of prescription drugs may appear to be severely limited in some jurisdictions due to restrictions on direct-to-consumer advertising. However, in most jurisdictions, strategies exist to raise consumer awareness about prescription drugs, notably through the deployment of direct-to-consumer information campaigns that encourage patients to seek help for particular medical conditions. In Canada, DTCI is presented by industry and regulated by Health Canada as being purely informational activities, but their design and integration in broader promotional campaigns raise (...) very similar ethical concerns as those associated with DTCA. Specifically, DTCI can be an effective means of familiarizing the public with the scope and benefits of a particular prescription drug and so, like DTCA, can promote increased patient-consumer demand and thus a problematic rise in the prescribing and use of medications that may be neither the most appropriate nor the most cost-effective. Yet, with DTCI the industry is playing within the existing rules and regulations set by health regulators. To respond appropriately to this regulatory incoherence, we argue that DTCI should be regulated as a type of direct-to-consumer indirect advertising. Even if the case and specific regulations presented here are Canadian, the implications extend to every country that has a partial or total prohibition on DTCA. (shrink)

To address the problem of frequent dishonest transactions by online shopping platform merchants, we developed monopoly and competitive platform pricing models based on two-sided market theory, which introduce consumer information levels. This article analyzes the incentives of the platforms to improve consumer information levels in platform pricing strategies. Monopoly online shopping platforms aim to maximize profits. The higher the consumer information level is, the lower the fees charged to merchants; this can lead to increased (...) platform profits. The charging of consumers depends on cross-network externalities. Competitive online shopping platforms also aim at maximizing profits. Under the circumstance that the number of consumers remains the same, the higher the consumer information level is, the more merchants the platforms will attract. This reduces bilateral user fees, and platform profits will be lower. From the perspective of consumer information level, the article analyzes the impact of monopoly and competitive platforms adopting return measures to improve the level of consumer information on platform pricing, number of bilateral users, and profits. (shrink)

Gamma radioactivity produced by human technology is the most dangerous industrial product to life. Two recent global catastrophic events in which nuclear plants were involved, separated only by 25 years, have confirmed that, independently of the usage of nuclear weapons, achieving the 100% of security in the nuclear energy management was and still is a complete unrealistic idea. Although the guarantee of offering information of food and drink products quality concerning the date of expiry or the ingredients content is (...) nowadays stipulated in laws around many countries, this is not the case of the radiation safety. An important investment to offer information concerning gamma radiation safety conditions in food and drink products offered by markets, which also could help to localize quickly, possible radioactive slight incidents, is here discussed. The implementation of a previous consumer-behaviour experiment in markets is also suggested. (shrink)

The discourse about traceability in food chains focused on traceability as means towards the end of managing health risks. This discourse witnessed a call to broaden traceability to accommodate consumer concerns about foods that are not related to health. This call envisions the development of ethical traceability. This paper presents a justification of ethical traceability. The argument is couched in liberal distinctions, since the call for ethical traceability is based on intuitions about consumer rights to informed choice. The (...) paper suggests that two versions of ethical traceability find justification. The first version of ethical traceability entails that governments ensure that all consumers are provided with foods that respect some threshold level of, e.g., animal welfare that is supported by an overlapping consensus. The second version of ethical traceability entails that food producers provide consumers with products, and sufficient information about these products, that are relevant for reasonable, non-superficial values that are not supported by an overlapping consensus. Governments should facilitate this in the sense that consumers are not provided with misinformation about characteristics of foods that are relevant for reasonable, non-superficial values that are not supported by an overlapping consensus. (shrink)

The Article analyses how one of the basic consumer rights – the right to information – is regulated in the European Commission Proposal for a Directive of the European Parliament and of the Council on consumer rights (hereinafter referred to as the Proposal): the article analyses trends of regulation of the consumers’ right to receive information; problems related to the scope of provided information and the issue of consumer standard that should be used in (...) evaluating the sufficiency of provided information and transparency of contract terms. Furthermore, additional possibilities to improve the consumer right to receive information at the national level are shortly discussed. The regulation of the consumer right to receive information established in the Proposal may imply a new era in the regulation of the B2C relations, where the aim to ensure high common level of consumer protection is opposed against the aim to ensure the balance of interests of consumers and business. Such „slight“ conversion of the aims may impact the application of legal norms regulating consumer right to information and the scope of the disclosure obligation of the business, while reducing the level of the consumer protection. (shrink)

Direct to consumer (DTC) advertising has attracted significant research attention, yet none has focused on empirical assessments of its overall impact on U.S. consumers nationally, and tying assessment to relevant behavioral outcomes. This paper addresses the ethical issue of DTC advertising providing a balance of product and risk information that is both understandable and believable, and contributes direction to those exploring this phenomenon.

Broad genome-wide testing is increasingly finding its way to the public through the online direct-to-consumer marketing of so-called personal genome tests. Personal genome tests estimate genetic susceptibilities to multiple diseases and other phenotypic traits simultaneously. Providers commonly make use of Terms of Service agreements rather than informed consent procedures. However, to protect consumers from the potential physical, psychological and social harms associated with personal genome testing and to promote autonomous decision-making with regard to the testing offer, we argue that (...) current practices of information provision are insufficient and that there is a place – and a need – for informed consent in personal genome testing, also when it is offered commercially. The increasing quantity, complexity and diversity of most testing offers, however, pose challenges for information provision and informed consent. Both specific and generic models for informed consent fail to meet its moral aims when applied to personal genome testing. Consumers should be enabled to know the limitations, risks and implications of personal genome testing and should be given control over the genetic information they do or do not wish to obtain. We present the outline of a new model for informed consent which can meet both the norm of providing sufficient information and the norm of providing understandable information. The model can be used for personal genome testing, but will also be applicable to other, future forms of broad genetic testing or screening in commercial and clinical settings. (shrink)

Direct to consumer advertising has attracted significant research attention, yet none has focused on empirical assessments of its overall impact on U.S. consumers nationally, and tying assessment to relevant behavioral outcomes. This paper addresses the ethical issue of DTC advertising providing a balance of product and risk information that is both understandable and believable, and contributes direction to those exploring this phenomenon.

Direct to consumer (DTC) advertising has attracted significant research attention, yet none has focused on empirical assessments of its overall impact on U.S. consumers nationally, and tying assessment to relevant behavioral outcomes. This paper addresses the ethical issue of DTC advertising providing a balance of product and risk information that is both understandable and believable, and contributes direction to those exploring this phenomenon.

The success of a piece of behaviour is often explained by its being caused by a true representation (similarly, failure falsity). In some simple organisms, success is just survival and reproduction. Scientists explain why a piece of behaviour helped the organism to survive and reproduce by adverting to the behaviour’s having been caused by a true representation. That usage should, if possible, be vindicated by an adequate naturalistic theory of content. Teleosemantics cannot do so, when it is applied to simple (...) representing systems (Godfrey-Smith 1996). Here it is argued that the teleosemantic approach to content should therefore be modified, not abandoned, at least for simple representing systems. The new ‘infotel-semantics’ adds an input condition to the output condition offered by teleosemantics, recognising that it is constitutive of content in a simple representing system that the tokening of a representation should correlate probabilistically with the obtaining of its specific evolutionary success condition. (shrink)

Broad genome‐wide testing is increasingly finding its way to the public through the online direct‐to‐consumer marketing of so‐called personal genome tests. Personal genome tests estimate genetic susceptibilities to multiple diseases and other phenotypic traits simultaneously. Providers commonly make use of Terms of Service agreements rather than informed consent procedures. However, to protect consumers from the potential physical, psychological and social harms associated with personal genome testing and to promote autonomous decision‐making with regard to the testing offer, we argue that (...) current practices of information provision are insufficient and that there is a place – and a need – for informed consent in personal genome testing, also when it is offered commercially. The increasing quantity, complexity and diversity of most testing offers, however, pose challenges for information provision and informed consent. Both specific and generic models for informed consent fail to meet its moral aims when applied to personal genome testing. Consumers should be enabled to know the limitations, risks and implications of personal genome testing and should be given control over the genetic information they do or do not wish to obtain. We present the outline of a new model for informed consent which can meet both the norm of providing sufficient information and the norm of providing understandable information. The model can be used for personal genome testing, but will also be applicable to other, future forms of broad genetic testing or screening in commercial and clinical settings. (shrink)

With the development of the economy, family wealth continues to accumulate, and more and more consumers participate in financial management affairs. As an important way to improve financial knowledge, informal financial education is vital to consumer financial capability. Utilizing data from the 2012, 2015, and 2018 US National Financial Capability Study and the approaches of ordinary least squares and ordered probit regression are employed to produce more accurate estimates. Meanwhile, the study also explores the mediating effects of financial knowledge (...) between informal financial education and consumer financial capability. The results show that informal financial education has a positive effect on the improvement of consumer financial capability. Besides, financial knowledge partially mediates the nexus between informal financial education and consumer financial capability. Therefore, policymakers are encouraged to formulate measures to promote financial education programs not only in schools and universities but also in workplaces or communities. Companies also should offer more opportunities for their employees to receive financial education and further enhance their financial capability. Consumers should be aware of the importance of financial education and actively learn financial knowledge to improve financial capability and further enhance financial satisfaction. (shrink)

In this paper we present arguments for and against the disclosure of genetic information to the insurance companies. One of the main issues which emerges from these arguments is the question of who should be responsible for the health insurance costs of the individuals who are most likely to be affected by the disclosure of genetic information. The results of a resident opinion survey related to the above question are presented and public policy alternatives related to the survey (...) findings are discussed at the end of this paper. (shrink)

This research investigates how consumers’ ethical brand perceptions are affected by differentially valenced information. Drawing on literature from person-perception formation and using a sequential, mixed method design comprising qualitative interviews and two experiments with a national representative population sample, our findings show that only when consumers perceive their judgment of a brand’s ethicality to be pertinent, do they process information holistically and in line with the configural model of impression formation. In this case, negative information functions as (...) a diagnostic cue to form an unethical brand perception, irrespective of other positive information at hand. However, in the case where processing relevance of the un/ethical information provided is low, brand perception formation is algebraic, in which case positive information can counterbalance and neutralize the detrimental impact of brand misbehavior. Our findings extend existing research on consumer perceived ethicality as well as consumer reactions to corporate social responsibility and sustainability initiatives, which has so far assumed the asymmetric impact of negative information on ethical perceptions and consumer attitudes to be prevalent. We derive a range of academic and managerial implications and present a number of important avenues for future research. (shrink)

This article presents an economic analysis of information good pricing and consumer welfare, and discusses the implications of price discrimination in the information economy. It argues that network externalities, coupled with information asymmetry, enable a dominant marketer to price unequally, extracting late adopters surplus to compensate for the loss from early adopters. In the short term, the minority early adopters benefit by paying less, but in the long term, the majority late adopters suffer by paying more. (...) Considering that late adopters are likely to be at a disadvantage in resources, this discriminatory pricing amounts to the poor subsidizing the rich. Based on this analysis, implications for consumer welfare are discussed. (shrink)

The increasing debate on corporate ethics raises the question of whether consumers are willing to reward and punish corporate behaviour based on its ethicality. In this context, this article investigates the direct effect on consumers' willingness to pay. Price response to product-related ethical information is explored in an experiment dealing with social issues in sportswear and environmental issues in consumer electronics. It is shown that in both areas, consumers demonstrate an increased willingness to pay for ethically produced goods. (...) However, the response is subject to a negativity bias. In contrast to prior research that used abstract stimulus measures, a ratio for quantifying this bias is suggested based on consumers' willingness to pay and their price expectations. This measure allows us to analyse a consumer's individual bias. (shrink)

The increasing debate on corporate ethics raises the question of whether consumers are willing to reward and punish corporate behaviour based on its ethicality. In this context, this article investigates the direct effect on consumers' willingness to pay. Price response to product‐related ethical information is explored in an experiment dealing with social issues in sportswear and environmental issues in consumer electronics. It is shown that in both areas, consumers demonstrate an increased willingness to pay for ethically produced goods. (...) However, the response is subject to a negativity bias. In contrast to prior research that used abstract stimulus measures, a ratio for quantifying this bias is suggested based on consumers' willingness to pay and their price expectations. This measure allows us to analyse a consumer's individual bias. (shrink)

On June 3, 2003, the European Council of health ministers rejected a proposal from the European Commission to allow drug manufacturers to advertise directly to particular groups of patients; the proposal had already been rejected by the European Parliament subsequent to a heated public debate in which consumer and patient groups almost unanimously argued that it was not the role of drug companies to provide information to patients. The pilot scheme suggested by the Commission would only have applied (...) to patients with three chronic diseases, AIDS, diabetes, and asthma, and would, it was argued, not undermine an overall ban. Drug companies would have been required to abide by a special code of conduct and clear any information given to patients—on web sites or in specialized publications—with national authorities. (shrink)

Irrational debt decisions at the individual level may harm collective welfare. For this reason, regulators are committed to encourage information-based behaviours in order to enhance likelihood of appropriate indebtedness. We analyse, with a diff-in-diff estimator, the Italian case offered by the Legislative Decree that reformed the consumer credit market adopting European Directive 2008/48/ec, and that reinforced the mandatory information acquisition, jointly asked to lenders and borrowers, before granting/receiving consumer credit. By using micro-data on 60.000 consumer (...) credit borrowers, in total, randomly sampled from the most relevant Italian Credit Bureau, our findings support that, in the medium term, the new consumer credit regulation has improved borrowers’ repayment ability, enhancing the quality of credit distribution. Nevertheless, a simplistic ‘better information-better behaviour’ relationship cannot be assured. This success is likely due to conjunct adaptation of behaviours, with shared responsibilities experienced on both the demand and offer side of the consumer credit marketplace. (shrink)

BackgroundIn the 1970s, the Federal Trade Commission declared that allowing medical providers to advertise directly to consumers would be “providing the public with truthful information about the price, quality or other aspects of their service.” However, our understanding of the advertising content is highly limited.ObjectiveTo assess whether direct-to-consumer medical service advertisements provide relevant information on access, quality and cost of care, a content analysis was conducted.MethodTelevision and online advertisements for medical services directly targeting consumers were collected in (...) two major urban centres in Nevada, USA, identifying 313 television advertisements and 200 non-duplicate online advertisements.ResultsBoth television and online advertisements reliably conveyed information about the services provided and how to make an appointment. At the same time, less than half of the advertisements featured insurance information and hours of operation and less than a quarter of them contained information regarding the quality and price of care. The claims of quality were substantiated in even fewer advertisements. The scarcity of quality and cost information was more severe in television advertisements.ConclusionThere is little evidence that medical service advertising, in its current form, would contribute to lower prices or improved quality of care by providing valuable information to consumers. (shrink)

Drawing on the influence of primacy and recency effects in processing information about corporate social responsibility, the authors examine how internal and external factors impact the consumer-firm relationship in the presence of contradictory CSR information. Evaluating these factors provides a more comprehensive understanding of how consumers react to unethical and socially irresponsible actions. Contrary to recent research that suggests a reactive CSR communication strategy to be best due to recency effects, the present findings show that past customer (...) experiences with the firm facilitate a ‘primacy effect’. Thus, when corporate social irresponsibility occurs, a customer’s prior experiences mitigate negative consequences. Conversely, a firm’s positive CSR reputation may provide goodwill, although it does not guarantee that consumers will process CSR information differently. Therefore, firms cannot build a strong CSR reputation and expect to be immune from the consequences of CSI. Given these new findings of how consumers process contradictory CSR information, firms should implement a strategic and deliberate communication plan that delivers different messages to different stakeholders. Specifically, these findings suggest that firms benefit most from a proactive communication strategy with their current customers and a reactive communication strategy with the general public. (shrink)

Courts in the United States are finding that recipients can be bound by fine-print terms if they had notice of them. Without directly confronting the overarching normative question whether notice can cause contractual obligation, this Article takes notice seriously by focusing on how psychological characteristics of “HUMANs” suggest rethinking of when effective notice is likely to occur.

We explore the issue of media content and corporate social responsibility by considering three questions:1. Why is this issue becoming so salient to a variety of stakeholders across the political spectrum at this time?2. What are the ethical issues that companies and policy makers should be concerned about with regard to media content?3. How can media-related companies and industries either better self-regulate or enhance consumer choice to respond to legitimate concerns about access tocontent?

As consumer lifestyles have changed over recent decades, people have increasingly turned to meals prepared away from home. A major consequence of this shift in eating patterns has been a concomitant rise in obesity rates worldwide. Research has consistently documented that consumers tend to make less healthy choices when purchasing prepared meals away from home. In part, this can be attributed to inadequate information at the time of purchase; both nutrition experts and lay consumers tend, for example, to (...) underestimate calories in food purchased away from home and thus portion sizes tend to be larger. Thus, by requiring restaurants and other purveyors of prepared foods to provide the calorie content and other nutrition information at the point of purchase, consumers should be able to make more informed decisions and public health should be improved. The often maligned Affordable Care Act (i.e., “Obamacare”) addressed this issue in a mandate calling for compulsory nutrition labeling of prepared foods at the point of sale. In response to this effort, conservatives in Congress introduced the “Common Sense Nutrition Disclosure Act” (CSNDA) which, if enacted, would have effectively eviscerated the menu labeling provisions mandated by the Affordable Care Act. The stated rationale behind this legislation: to protect small business and prevent job loss resulting from overly‐burdensome federal regulations. This article provides a historical look at the evolution of federally mandated menu labeling in the United States with particular emphasis on opposition to its passage. The position is taken such that this legislation is beneficial, warranted, and long overdue, and its opposition, as reflected in the CSNDA, points to the need for new metrics when evaluating public policy. (shrink)

While environmental claims are increasingly used by companies to appeal consumers, they also attract greater scrutiny from independent parties interested in consumer protection. Consumers are now able to compare corporate environmental claims against external, often disconfirming, information to form their brand attitudes and purchase intentions. What remains unclear is how the level of information specificity of both the environmental claims and external disconfirming information interact to influence consumer reactions. Two experiments address this gap in the (...) CSR communication literature. When specific claims are countered by specific external information, consumers report more negative brand attitudes and lower purchase intentions. The effect is serially mediated by skepticism toward the claims and lack of corporate credibility. We conclude by discussing strategies that firms can utilize to avoid information dilution and ensure that external disconfirming information percolates to consumers as specific. (shrink)

This article is incorrectly classified as Review Paper in the online and print publication. The correct classification for this article is Original Paper. The publisher apologizes for the inconvenience caused.

Stone & Wang collate the nascent research examining the mnemonic consequences associated with social media use. In particular, they highlight two important factors in understanding how social media use shapes the way individuals and groups remember the past: the type of information (personal vs. public) and the role (producer vs. consumer) individuals undertake when engaging with social media. Stone and Wang investigate those two features in relation to induced forgetting for personal information and false memories/truthiness for public (...) information. (shrink)

Direct-to-consumer genetic testing is a growing phenomenon, fuelled by the notion that knowledge equals control. One ethical question that arises concerns the proband’s duty to share information indicating genetic risks in their relatives. However, such duties are unenforceable and may result in the realisation of anticipated harm to relatives. We argue for a shift in responsibility from proband to provider, placing a duty on test providers in the event of identified actionable risks to relatives. Starting from Parker and (...) Lucassen’s 'joint account model', we adapt Kilbride’s application of the rule of rescue and balance it against the relative’s right not to know, placing responsibility on the providers of direct-to-consumer genetic testing. Where the risk of disease to a relative is actionable, we argue providers ought to share results even in the face of the proband’s objections. Confidentiality issues are navigated by a pre-emptive consent model, whereby consumers agree to the sharing of certain information with their relatives ahead of testing and as a condition of testing. When a relative is informed, the proband’s privacy is protected by maximal deidentification, and the rights of the relative are met by a stepwise approach to informing that allows them to decide how much information they receive. (shrink)

Is self-disclosure of negative information a viable strategy for a company to lessen the damage done to consumer responses? Three experiments assessed whether self-disclosing negative information in itself lessened the damaging impact of this information compared to third-party disclosure of the same information. Results indicated that mere self-disclosure of a negative event positively affected consumers’ choice behavior, perceived company trustworthiness, and company evaluations compared to third-party disclosure. The effectiveness of the self-disclosure strategy was moderated by (...) the initial reputation of a company, such that its impact was only observed for companies that had a poor reputation at the outset. For them, self-disclosure considerably lessened the impact of negative information compared to third-party disclosure. For companies that enjoyed a positive reputation, type of disclosure did not affect consumer responses. Mediation analysis showed that perceptions of company trustworthiness underlie the effects of the self-disclosure strategy on consumer judgment. (shrink)

Due to extensive product differentiation and the personalized aesthetic needs of consumers, modern enterprises need different expressions of information to attract consumers’ interest and improve their purchase intention. This study draws from the elaboration likelihood model, anchoring theory, and media richness theory to explore how the expression of advertised information can be effectively matched to the product type to enhance consumers’ purchase intention. The mediating effect of information-processing fluency and moderating effect of consumers’ personal involvement on this (...) relationship is also explored. Data from experiments and questionnaires involving 1,292 participants were analyzed. The results show that direct expression of advertised information is more suitable for advertising search products, while metaphorical expressions of advertised information are more suitable for advertising experience products. These combinations of product type and expression of advertised information can effectively improve consumers’ purchase intention. Meanwhile, the main combined effect of the product type and expression of advertised information is mediated by consumers’ information-processing fluency, and moderated by consumers’ personal involvement positively. (shrink)

This paper focuses on extant approaches to counteract the consumption of fake news online. Proponents of structural approaches suggest that our proneness to consuming fake news could only be reduced by reshaping the architecture of online environments. Proponents of educational approaches suggest that fake news consumers should be empowered to improve their epistemic agency. In this paper, we address a question that is relevant to this debate: namely, whether fake news consumers commit mistakes for which they can be criticized and (...) that they could easily avoid by reforming their doxastic conduct. Proponents of structural approaches, like R. Rini and B. Millar, have defended in different ways a negative answer to this question. In this paper, we criticize their views and suggest that individual users could improve on their epistemic practice by widening their information diet. (shrink)

A consumer health information system must be able to comprehend both expert and non-expert medical vocabulary and to map between the two. We describe an ongoing project to create a new lexical database called Medical WordNet (MWN), consisting of medically relevant terms used by and intelligible to non-expert subjects and supplemented by a corpus of natural-language sentences that is designed to provide medically validated contexts for MWN terms. The corpus derives primarily from online health information sources targeted (...) to consumers, and involves two sub-corpora, called Medical FactNet (MFN) and Medical BeliefNet (MBN), respectively. The former consists of statements accredited as true on the basis of a rigorous process of validation, the latter of statements which non-experts believe to be true. We summarize the MWN / MFN / MBN project, and describe some of its applications. (shrink)

PurposeWithin a larger mandate of reviewing the key global trends concerning consumer protection in the electronic commerce (e-commerce) literature, this study aims to study the legal framework concerning e-commerce and consumer protection in the Sultanate of Oman and to analyse the current regulations concerning e-commerce and consumer protection.Design/methodology/approachThis study followed the normative legal research approach and resorted to the desk research process to facilitate content analysis of literature containing consumer protection legislation and regulatory provisions in Oman (...) in particular and the rest of the world in general.FindingsThe study reveals that consumer protection initiatives in Oman are well entrenched for offline transactions, but are relatively new and limited for e-commerce. In spite of the promulgation of consumer protection laws, electronic transaction law and cybercrime law, consumer protection measures for e-commerce in Oman do not address a large number of the global concerns necessary to build consumer confidence and trust in the online environment.Research limitations/implicationsThere is a dearth of information concerning Oman on this topic in the extant literature. The research also witnessed the lack of empirical data on the issue of consumer protection and e-commerce in Oman that offer a detailed database of consumer complaints and associated outcomes.Practical implicationsThe mechanism of consumer protection in electronic transactions is not robust in many countries. Because of the lack of comprehensive and robust legislation, consumers remain vulnerable in the online contractual purchase process. Moving beyond the fragmented legislation, many countries are currently mulling an all-comprehensive e-commerce law, implications of this paper will help the policymakers in identifying the focus areas.Social implicationsConsumer protection is a burning global issue in this era of consumerism. It is important to build consumer trust, transparency and integrity of transactions to reduce the risk and uncertainties of purchase.Originality/valueConsumer protection studies conducted in the context of Oman, hitherto, deal more with data protection and dispute resolution mechanisms, and less with legal provisions, regulations and consumer confidence. The study shares newer insights based on a systematic review of legal and business databases. It is the first study of its kind in the context of Oman and the Middle East in general. (shrink)

Research examining consumer responses to the provision of nutritional information as part of restaurant menus has produced mixed results. In light of pending legislation requiring the provision of nutritional information, the authors examine the how corporate social responsibility impacts consumer service evaluation of restaurants. Findings from three studies demonstrate that the relationship between consumer attitudes toward the disclosure of nutrition information and their subsequent evaluation of the food provider is impacted by CSR-related initiatives. Studies (...) one and two find that consumer evaluations are enhanced when the firm has an existing reputation for CSR and when the firm includes healthy product options as part of the introduction of the nutritional information. Study 3 finds these effects are particularly strong with fast-food restaurants. Overall, the findings suggest that, for some firms, the introduction of the legislation provides an opportunity to strengthen relationships with customers and gain advantage over some competitors. (shrink)

The use of biotechnology in food productiongives rise to consumer concerns. The term ``consumerconcern'' is often used as a container notion. Itincludes concerns about food safety, environmental andanimal welfare consequences of food productionsystems, and intrinsic moral objections againstgenetic modification. In order to create clarity adistinction between three different kinds of consumerconcern is proposed. Consumer concerns can be seen assigns of loss of trust. Maintaining consumer trustasks for governmental action. Towards consumerconcerns, governments seem to have limitedpossibilities for public (...) policy. Under current WTOregulations designed to prevent trade disputes,governments can only limit their policies to 1) safetyregulation based upon sound scientific evidence and 2)the stimulation of a system of product labeling. Ananalysis of trust, however, can show that ifgovernments limit their efforts in this way, they willnot do enough to avoid the types of consumer concernsthat diminish trust. The establishment of a technicalbody for food safety – although perhaps necessary –is in itself not enough, because concerns that relatedirectly to food safety cannot be solved by ``pure''science alone. And labeling can only be a good way totake consumer concerns seriously if these concerns arerelated to consumer autonomy. For consumer concernsthat are linked to ideas about a good society,labeling can only provide a solution if it is seen asan addition to political action rather than as itssubstitution. Labeling can help consumers take uptheir political responsibility. As citizens, consumershave certain reasonable concerns that can justifiableinfluence the market. In a free-market society, theyare, as buyers, co-creators of the market, andsocietal steering is partly done by the market.Therefore, they need the information to co-create thatmarket. The basis of labeling in these cases, however,is not the good life of the individual but thepolitical responsibility people have in their role asparticipants in a free-market. Then, public concernsare taken seriously. Labeling in that case does nottake away the possibilities of reaching politicalgoals, but it adds a possibility. (shrink)

The response of consumers to a firm’s ethical behavior and the underlying factors influencing/forming each consumer’s response outcome is analyzed in this article based on information obtained through interviews. The results indicate that, in the Chinese context, the responding outcome can be boiled down to five types, namely, resistance, questioning, indifference, praise, and support. Additionally, consumers’ responses were mainly influenced by the specific consumer’s ethical consciousness, ethical cognitive effort, perception of ethical justice, motivation judgment, institutional rationality, and (...) corporate social responsibility–corporate ability (CSR–CA) belief. Based on these results, a generalized framework of consumer’s ethical responses is developed which provides a number of insightful suggestions upon how to motivate a consumer’s support of a firm’s ethical behavior and to transfer this kind of support into truly positive purchasing behavior. (shrink)

Consumers can have difficulty expressing their buying intentions on an explicit level. The most common explanation for this intention-action gap is that consumers have many cognitive biases that interfere with decision making. The current resource-rational approach to understanding human cognition, however, suggests that brain environment interactions lead consumers to minimize the expenditure of cognitive energy. This means that the consumer seeks as simple of a solution as possible for a problem requiring decision making. In addition, this resource-rational approach to (...) decision making emphasizes the role of the principle of Occam’s Razor, inductive inference, and Bayesian reasoning by illuminating the human-environment relationship. This paper introduces the Consumer Contextual Decision-Making Model (CCDMM). Based on the CCDMM, two hypothetical strategies of consumer decision making will be presented. First, the SIMilarity-Strategy (SIMS) is one in which most of a consumer’s decisions in a real-life context are based on prior beliefs about the role of a commodities specific to real-life situation being encountered. Because beliefs are based on previous experiences, consumers are already aware of the most likely consequences of their actions. At the same time, they do not waste time on developing contingencies for what, based on previous experience, is unlikely to happen. Second, the What-is-Out-there-in-the-World-Strategy (WOWS) is one in which prior beliefs do not work in a real-life situation, requiring consumers to update their beliefs. The principle argument being made is that most experimental consumer research describes decision making based on the WOWS, when participants cannot apply their previous knowledge and situation-based strategy to problems. The article analyses sensory and cognitive biases described by behavioral economists from a CCDMM perspective, followed by a description and explanation of the typical intention-action gap based on the model. Prior to a section dedicated to discussion, the neuroeconomic approach will be described along with the valuation network of the brain, which has evolved to solve problems that the human has previously encountered in an information-rich environment. The principles of brain functions will also be compared to CCDMM. Finally, different approaches and the future direction of consumer research from a contextual point of view will be presented. (shrink)

Decision-making regarding healthcare expenditure hinges heavily on an individual's health status and the certainty about the future. This study uses data on propensity of general health exam (GHE) spending to show that despite the debate on the necessity of GHE, its objective is clear—to obtain more information and certainty about one’s health so as to minimise future risks. Most studies on this topic, however, focus only on factors associated with GHE uptake and overlook the shifts in behaviours and attitudes (...) regarding different levels of cost. To fill the gap, this study analyses a dataset of 2068 subjects collected from Hanoi (Vietnam) and its vicinities using the baseline-category logit method. We evaluate the sensitivity of Vietnamese healthcare consumers against two groups of factors (demographic and socioeconomic-cognitive) regarding payment for periodic GHE, which is not covered by insurance. Our study shows that uninsured, married and employed individuals are less sensitive to cost than their counterparts because they value the information in reducing future health uncertainty. The empirical results challenge the objections to periodic health screening by highlighting its utility. The relevance of behavioural economics is further highlighted through a look at the bounded rationality of healthcare consumers and private insurance companies in using and providing the service, respectively. (shrink)

Name der Zeitschrift: Semiotica Jahrgang: 2015 Heft: 204 Seiten: 253-290.

Nearly all studies of consumers’ willingness to engage in ethical or socially responsible purchasing behavior is based on unconstrained survey response methods. In the present article we ask the question of how well does asking consumers the extent to which they care about a specific social or ethical issue relate to how they would behave in a more constrained environment where there is no socially acceptable response. The results of a comparison between traditional survey questions of “intention to purchase” and (...) estimates of individuals willingness-to-pay for social attributes in products reveal that simple survey questions are too “noisy” to provide operationally meaningful information and overstate intentions to a considerable extent. (shrink)