In the US: 30% solar energy federal investment tax credit. In California: $3.3 billion 10 year California Solar Initiative (CSI). Yet we understand very little about the process of diffusion of this technology.
We study the impact of mandatory calorie posting on consumers' purchase decisions, using detailed data from Starbucks. We find that average calories per transaction falls by 6%. The effect is almost entirely related to changes in consumers' food choices-there is almost no change in purchases of beverage calories. There is no impact on Starbucks profit on average, and for the subset of stores located close to their competitor Dunkin Donuts, the effect of calorie posting is actually to increase Starbucks revenue. Survey evidence and analysis of commuters suggest the mechanism for the effect is a combination of learning and salience.
In the past decade, there has been a tremendous increase in the use of neurophysiological methods to better understand marketing phenomena among academics and practitioners. However, the value of these methods in predicting advertising success remains underresearched. Using a unique experimental protocol to assess responses to 30-second television ads, the authors capture many measures of advertising effectiveness across six commonly used methods (traditional self-reports, implicit measures, eye tracking, biometrics, electroencephalography, and functional magnetic resonance imaging). These measures have been shown to reliably tap into higher-level constructs commonly used in advertising research: attention, affect, memory, and desirability. Using time-series data on sales and gross rating points, the authors attempt to relate individual-level response to television ads in the lab to the ads’ aggregate, market-level elasticities. The authors show that functional magnetic resonance imaging measures explain the most variance in advertising elasticities beyond the baseline traditional measures. Notably, activity in the ventral striatum is the strongest predictor of real-world, market-level response to advertising. The authors discuss the findings and their significant implications for theory, research, and practice.
We study the impact of mandatory calorie posting on consumers' purchase decisions using detailed data from Starbucks. We find that average calories per transaction fall by 6 percent. The effect is almost entirely related to changes in consumers' food choices—there is almost no change in purchases of beverage calories. There is no impact on Starbucks profit on average, and for the subset of stores located close to their competitor Dunkin Donuts, the effect of calorie posting is actually to increase Starbucks revenue. Survey evidence and analysis of commuters suggests the mechanism for the effect is a combination of learning and salience. (JEL D12, D18, D83, L83)
This study demonstrates support for policies promoting on-shelf nutrition labels designed according to evidence-informed principles, but policymakers should move forward with caution when investing in such systems until research has confirmed optimal label design, clarified the mechanisms through which dietary intake is improved, and assessed associations with nutrition-related health outcomes.
Variety-seeking is a fundamental aspect of choice. But given circadian rhythms in chronobiology, might variety-seeking vary by time of day? Four studies, including an empirical analysis of millions of purchases, demonstrate diurnal variation in variety-seeking. Variety-seeking is lower in the morning than other times of day. People pick less varied flavors of yogurt, for example, when choosing in the morning. Further, the results demonstrate the underlying role of circadian changes in physiological stimulation and arousal. The effect is mediated by a physiological measure of arousal (i.e., body temperature) and moderated by factors that shape physiological arousal (i.e., sunlight and individual differences in circadian preferences). These findings shed light on drivers of variety-seeking and the biological basis of consumer behavior more generally.
As concerns about pollution and climate change become more mainstream, the belief that shopping with reusable grocery bags is an important environmental and socially conscious choice has gained prevalence. In parallel, firms have joined policy makers in using a variety of initiatives to reduce the use of disposable plastic bags. However, little is known about how these initiatives might alter other elements of consumers' in-store behavior. Using scanner panel data from a single California location of a major grocery chain, and controlling for consumer heterogeneity, the authors demonstrate that bringing one's own bags increases purchases of not only environmentally friendly organic foods but also indulgent foods. They use experimental methods to further explore the expression of these effects and to consider the effects of potential moderators, including competing goals and store policies. The findings have implications for decisions related to product pricing, placement and assortment, store layout, and the choice of strategies employed to increase the use of reusable bags.
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