Michele Graffeo

Individual differences in competent consumer choice: the role of cognitive reflection and numeracy skills

In this paper, we investigate whether cognitive reflection and numeracy skills affect the quality of the consumers’ decision-making process in a purchase decision context. In a first (field) experiment, an identical product was on sale in two shops with different initial prices and discounts. One of the two deals was better than the other and the consumers were asked to choose the best one and to describe which arithmetic operations they used to solve the problem; then they were asked to complete the numeracy scale (Lipkus et al., 2001). The choice procedures used by the consumers were classified as “complete decision approach” when all the arithmetic operations needed to solve the problem were computed, and as “partial decision approach” when only some operations were computed. A mediation model shows that higher numeracy is associated with use of the complete decision approach. In turn, this approach is positively associated with the quality of the purchase decision. Given that these findings highlight the importance of the decision processes, in a second (laboratory) experiment we used a supplementary method to study the type of information search used by the participants: eye-tracking. In this experiment the participants were presented with decision problems similar to those used in Experiment 1 and they completed the Lipkus numeracy scale and the Cognitive Reflection Test (CRT; Frederick, 2005). Participants with a high CRT score chose the best deal more frequently, and showed a more profound and detailed information search pattern compared to participants with a low CRT score. Overall, results indicate that higher levels of cognitive reflection and numeracy skills predict the use of a more thorough decision process (measured with two different techniques: retrospective verbal reports and eye movements). In both experiments the decision process is a crucial factor which greatly affects the quality of the purchase decision.

To make people save energy tell them what others do but also who they are: a preliminary study

A way to make people save energy is by informing them that “comparable others” save more. We investigated whether, one can further improve this nudge by manipulating Who the “comparable others” are. We asked participants to imagine receiving feedback stating that their energy consumption exceeded that of “comparable others” by 10%. We varied Who the “comparable others” were in a 2 × 2 design: they were a household that was located either in the same neighborhood as themselves or in a different neighborhood, and its members were either identified (by names and a photograph) or unidentified. We also included two control conditions: one where no feedback was provided, and one where only statistical feedback was provided (feedback about an average household). We found that it matters Who the “comparable others” are. The most effective feedback was when the referent household was from the same neighborhood as the individuals and its members were not identified.

On the evaluation of public goods: cognitive and emotional aspects

Purpose – The purpose of this paper is to provide a theoretical framework for the assessment of subjective value of public goods. Public goods are not traded, so they do not have market prices, even if they may be of great importance for the well-being of citizens (e.g. green spaces, urban air). A procedure used to estimate the economic value of a public good is the contingent evaluation method: people are asked to state how much they are willing to pay to preserve or restore a public good. Many studies report that the subjective evaluation of public goods is affected by factors that, according to standard economics, should be irrelevant, such as the manipulation of frame and prime. On the other hand, factors that should be relevant, such as the magnitude of the expected benefit, are neglected. It appears that the evaluation of a public good cannot be reduced to a mere cost–benefit tradeoff evaluation. On the contrary, it seems that the subjective value of a public good is constructed. The authors argue t...

The effects of incidental scents in the evaluation of environmental goods: The role of congruity.

We investigated whether pleasant ambient scents influence hypothetical and real money contributions toward environmental goods. We hypothesized that they would increase such contributions more when they were congruent with the target goods than when they were incongruent or when no scent was released. The results supported this congruity hypothesis. We offer a mental accessibility account: Pleasant scents that are congruent with a target good make positive information about that good more accessible and thus promote prosocial behavior.