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I compare the effect of anonymous social network ratings (Yelp.com) and peer group recommendations on restaurant demand. I conduct a two-stage choice experiment in which restaurant visits in the first stage are informed by online social network reviews from Yelp.com, and visits in the second stage by peer network reviews. I find that anonymous reviewers have a stronger effect on restaurant preference than peers. I also compare the power of negative reviews with that of positive reviews. I found that negative reviews are more powerful compared to the positive reviews on restaurant preference. More generally, I find that in an environment of high attribute uncertainty, information gained from anonymous experts through social media is likely to be more influential than information obtained from peers.
ContributorsTiwari, Ashutosh (Author) / Richards, Timothy J. (Thesis advisor) / Qiu, Yueming (Committee member) / Grebitus, Carola (Committee member) / Arizona State University (Publisher)
Created2013
Description
Unrestricted Mexican exports of sugar into the U.S. is considered the most pressing issue facing the U.S. sugar industry. The goal of this dissertation is to analyze the trade of sugar between Mexico and the U.S. as well as analyze additional primary issues confronting the U.S. sugar industry. Chapters 1 and 2 provide an introduction to the U.S. sugar industry. Chapters 3 through 6 develop trade models which analyze sugar trade between Mexico and the U.S. The trade models estimate how NAFTA, USDA sugar forecast errors and Mexican ownership of twenty percent of the Mexican sugar industry each impact U.S. producer surplus and Mexican welfare. Results validate that U.S. producer surplus and in some instances Mexican welfare were decreased by full implementation of NAFTA. U.S. producer surplus and Mexican welfare were decreased due to USDA sugar production forecasting errors. U.S. producer surplus would be increased if the Mexican government did not own twenty percent of Mexican sugar production. Using an online choice experiment, Chapter 7 assesses U.S. consumers' preferences and willingness to pay (WTP) for imported and genetically modified (GM) labeled sugar and sugar in soft drinks. Results indicate that consumers prefer bags of sugar and soft drinks labeled as "Not GM". Furthermore, consumers prefer sugar from Canada and the U.S. over sugar from Mexico, Brazil and the Philippines. Evidence is also provided that participants are more likely to choose actual products in the choice set rather than the "none of these" options when controlling for hypothetical bias by using consequentiality techniques. A non-hypothetical experimental auction was used in Chapter 8 to determine consumers' WTP for soft drinks labeled with sweetener and calorie information and analyzed the role of taste panels in an experimental auction. Results indicate that sugar is consumers' most preferred sweetener and calorie labeling is ineffective at influencing consumers to choose healthier soft drinks. Including taste in an experimental auction caused significant reductions in consumers' WTP for all soft drinks. Chapter 9 concludes by summarizing the results of this dissertation and discussing the future challenges facing the U.S. sugar industry.
ContributorsLewis, Karen Elizabeth (Author) / Schmitz, Troy (Thesis advisor) / Grebitus, Carola (Committee member) / Manfredo, Mark (Committee member) / Ketcham, Andrea (Committee member) / Arizona State University (Publisher)
Created2014
Description
It is well understood that decisions made under uncertainty differ from those made without risk in important and significant ways. Yet, there is very little research into how uncertainty manifests itself in the most ubiquitous of decision-making environments: Consumers' day-to-day decisions over where to shop, and what to buy for their daily grocery needs. Facing a choice between stores that either offer relatively stable "everyday low prices" (EDLP) or variable prices that reflect aggressive promotion strategies (HILO), consumers have to choose stores under price-uncertainty. I find that consumers' attitudes toward risk are critically important in determining store-choice, and that heterogeneity in risk attitudes explains the co-existence of EDLP and HILO stores - an equilibrium that was previously explained in somewhat unsatisfying ways. After choosing a store, consumers face another source of risk. While knowing the quality or taste of established brands, consumers have very little information about new products. Consequently, consumers tend to choose smaller package sizes for new products, which limits their exposure to the risk that the product does not meet their prior expectations. While the observation that consumers purchase small amounts of new products is not new, I show how this practice is fully consistent with optimal purchase decision-making by utility-maximizing consumers. I then use this insight to explain how manufacturers of consumer packaged goods (CPGs) respond to higher production costs. Because consumers base their purchase decisions in part on package size, manufacturers can use package size as a competitive tool in order to raise margins in the face of higher production costs. While others have argued that manufacturers reduce package sizes as a means of raising unit-prices (prices per unit of volume) in a hidden way, I show that the more important effect is a competitive one: Changes in package size can soften price competition, so manufacturers need not rely on fooling consumers in order to pass-through cost increases through changes in package size. The broader implications of consumer behavior under risk are dramatic. First, risk perceptions affect consumers' store choice and product choice patterns in ways that can be exploited by both retailers and manufacturers. Second, strategic considerations prevent manufacturers from manipulating package size in ways that seem designed to trick consumers. Third, many services are also offered as packages, and also involve uncertainty, so the effects identified here are likely to be pervasive throughout the consumer economy.
ContributorsYonezawa, Koichi (Author) / Richards, Timothy J. (Thesis advisor) / Grebitus, Carola (Committee member) / Park, Sungho (Committee member) / Arizona State University (Publisher)
Created2014
Description
Private labels command a growing share of food retailers' shelf space. In this dissertation, I explain this phenomenon as resulting from "umbrella branding," or the ability of a single brand to reach across categories. Conceptually, I define umbrella branding as a behavioral attribute that describes a shopper's tendency to ascribe a performance bond to a brand, or to associate certain performance characteristics to a private label brand, across multiple categories. In the second chapter, I describe the performance bond theory in detail, and then test this theory using scanner data in the chapter that follows. Because secondary data has limitations for testing behavioral theories, however, I test the performance bond theory of umbrella branding using a laboratory experiment in the fourth chapter. In this chapter, I find that households tend to transfer their perception of private label performance across categories, or that a manifestation of umbrella branding behavior can indeed explain private labels' success. In the fifth chapter, I extend this theory to compare umbrella branding in international markets, and find that performance transference takes its roots in consumers' cultural backgrounds. Taken together, my results suggest that umbrella branding is an important behavioral mechanism, and one that can be further exploited by retailers across any consumer good category with strong credence attributes.
ContributorsTheron, Sophie (Author) / Richards, Timothy J. (Thesis advisor) / Grebitus, Carola (Committee member) / Hughner, Renee (Committee member) / Arizona State University (Publisher)
Created2014
Description
Designing a hazard intelligence platform enables public agencies to organize diversity and manage complexity in collaborative partnerships. To maintain the integrity of the platform while preserving the prosocial ethos, understanding the dynamics of “non-regulatory supplements” to central governance is crucial. In conceptualization, social responsiveness is shaped by communicative actions, in which coordination is attained through negotiated agreements by way of the evaluation of validity claims. The dynamic processes involve information processing and knowledge sharing. The access and the use of collaborative intelligence can be examined by notions of traceability and intelligence cohort. Empirical evidence indicates that social traceability is statistical significant and positively associated with the improvement of collaborative performance. Moreover, social traceability positively contributes to the efficacy of technical traceability, but not vice versa. Furthermore, technical traceability significantly contributes to both moderate and high performance improvement; while social traceability is only significant for moderate performance improvement. Therefore, the social effect is limited and contingent. The results further suggest strategic considerations. Social significance: social traceability is the fundamental consideration to high cohort performance. Cocktail therapy: high cohort performance involves an integrative strategy with high social traceability and high technical traceability. Servant leadership: public agencies should exercise limited authority and perform a supporting role in the provision of appropriate technical traceability, while actively promoting social traceability in the system.
ContributorsWang, Chao-shih (Author) / Van Fleet, David (Thesis advisor) / Grebitus, Carola (Committee member) / Wilson, Jeffrey (Committee member) / Shultz, Clifford (Committee member) / Arizona State University (Publisher)
Created2015
Description
This dissertation offers three essays that investigate consumers’ health-related food choices and behaviors from three different, yet complementary, angles. The first essay uses an eye-tracking experiment to examine consumers’ visual attention to the Nutrition Facts Panels for healthy and unhealthy products. In this essay, I focus on how involvement and familiarity affect consumers’ attention toward the Nutrition Facts panel and how these two psychological factors interact with new label format changes in attracting consumers’ attention. In the second essay, I demonstrate using individual-level scanner data that nutritional attributes interact with marketing mix elements to affect consumers’ nutrition intake profiles and their intra-category substitution patterns. My findings suggest that marketing-mix sensitivities are correlated with consumers’ preferences for nutrient attributes in ways that depend on the “healthiness” of the nutrient. For instance, featuring promotes is positively correlated with “healthy” nutritional characteristics such as high-protein, low-fat, or low-carbohydrates, whereas promotion and display are positively correlated with preferences for “unhealthy” characteristics such as high-fat, or high-carbohydrates. I use model simulations to show that some marketing-mix elements are able to induce consumers to purchase items with higher maximum-content levels than others. The fourth chapter shows that dieters are not all the same. I develop and validate a new scale that measures lay theories about abstinence vs. moderation. My findings from a series of experiments indicate that dieters’ recovery from recalled vs. actual indulgences depend on whether they favor abstinence or moderation. However, compensatory coping strategies provide paths for people with both lay theories to recover after an indulgence, in their own ways. The three essays provide insights into individual differences that determine approaches of purchase behaviors, and consumption patterns, and life style that people choose, and these insights have potential policy implications to aid in designing the food-related interventions and policies to improve the healthiness of consumers’ consumption profiles and more general food well-being.
ContributorsXie, Yi (Author) / Richards, Timothy (Thesis advisor) / Mandel, Naomi (Committee member) / Grebitus, Carola (Committee member) / Arizona State University (Publisher)
Created2018
Description
Consumers can purchase local food through intermediated marketing channels, such as grocery stores, or through direct-to-consumer marketing channels, for instance, farmers markets. While the number of farms that utilize direct-to-consumer outlets keeps increasing, the direct-to-consumer sales remain lower than intermediated sales. If consumers prefer to purchase local food through intermediated channels, then policies designed to support direct channels may be misguided. Using a variety of experiments, this dissertation investigates consumer preferences for local food and their demand differentiated by marketing channel. In the first essay, I examine the existing literature on consumer preferences for local food by applying meta-regression analysis to a set of eligible research papers. My analysis provides evidence of statistically significant willingness to pay for local food products. Moreover, I find that a methodological approach and study-specific characteristics have a significant influence on the reported estimates for local attribute. By separating the demand for local from the demand for a particular channel, the second essay attempts to disentangle consumers’ preferences for marketing channels and the local-attribute in their food purchases. Using an online choice experiment, I find that consumers are willing to pay a premium for local food. However, they are not willing to pay premiums for local food that is sold at farmers markets relative to supermarkets. Therefore, in the third essay I seek to explain the rise in intermediated local by investigating local food shopping behavior. I develop a model of channel-selection in a nested context and apply it to the primary data gathered through an online food diary. I find that, while some consumers enjoy shopping at farmers markets to meet their objectives, such as socialization with farmers, the majority of consumers buy local food from supermarkets because they offer convenient settings where a variety of products can be bought as one basket. My overall results suggest that, if the goal is to increase the sales of local food, regardless of the channel, then existing supply-chain relationships in the local food channel appear to be performing well.
ContributorsPrintezis, Iryna (Author) / Richards, Timothy J. (Thesis advisor) / Grebitus, Carola (Committee member) / Schmitz, Troy (Committee member) / Arizona State University (Publisher)
Created2018
Description
It is well understood that innovation drives productivity growth in agriculture. Innovation, however, is a process that involves activities distributed throughout the supply chain. In this dissertation I investigate three topics that are at the core of the distribution and diffusion of innovation: optimal licensing of university-based inventions, new variety adoption among farmers, and consumers’ choice of new products within a social network environment.
University researchers assume an important role in innovation, particularly as a result of the Bayh-Dole Act, which allowed universities to license inventions funded by federal research dollars, to private industry. Aligning the incentives to innovate at the university level with the incentives to adopt downstream, I show that non-exclusive licensing is preferred under both fixed fee and royalty licensing. Finding support for non-exclusive licensing is important as it provides evidence that the concept underlying the Bayh-Dole Act has economic merit, namely that the goals of university-based researchers are consistent with those of society, and taxpayers, in general.
After licensing, new products enter the diffusion process. Using a case study of small holders in Mozambique, I observe substantial geographic clustering of new-variety adoption decisions. Controlling for the other potential factors, I find that information diffusion through space is largely responsible for variation in adoption. As predicted by a social learning model, spatial effects are not based on geographic distance, but rather on neighbor-relationships that follow from information exchange. My findings are consistent with others who find information to be the primary barrier to adoption, and means that adoption can be accelerated by improving information exchange among farmers.
Ultimately, innovation is only useful when adopted by end consumers. Consumers’ choices of new products are determined by many factors such as personal preferences, the attributes of the products, and more importantly, peer recommendations. My experimental data shows that peers are indeed important, but “weak ties” or information from friends-of-friends is more important than close friends. Further, others regarded as experts in the subject matter exert the strongest influence on peer choices.
University researchers assume an important role in innovation, particularly as a result of the Bayh-Dole Act, which allowed universities to license inventions funded by federal research dollars, to private industry. Aligning the incentives to innovate at the university level with the incentives to adopt downstream, I show that non-exclusive licensing is preferred under both fixed fee and royalty licensing. Finding support for non-exclusive licensing is important as it provides evidence that the concept underlying the Bayh-Dole Act has economic merit, namely that the goals of university-based researchers are consistent with those of society, and taxpayers, in general.
After licensing, new products enter the diffusion process. Using a case study of small holders in Mozambique, I observe substantial geographic clustering of new-variety adoption decisions. Controlling for the other potential factors, I find that information diffusion through space is largely responsible for variation in adoption. As predicted by a social learning model, spatial effects are not based on geographic distance, but rather on neighbor-relationships that follow from information exchange. My findings are consistent with others who find information to be the primary barrier to adoption, and means that adoption can be accelerated by improving information exchange among farmers.
Ultimately, innovation is only useful when adopted by end consumers. Consumers’ choices of new products are determined by many factors such as personal preferences, the attributes of the products, and more importantly, peer recommendations. My experimental data shows that peers are indeed important, but “weak ties” or information from friends-of-friends is more important than close friends. Further, others regarded as experts in the subject matter exert the strongest influence on peer choices.
ContributorsFang, Di (Author) / Richards, Timothy J. (Thesis advisor) / Bolton, Ruth N (Committee member) / Grebitus, Carola (Committee member) / Manfredo, Mark (Committee member) / Arizona State University (Publisher)
Created2015
Description
Private label growth in emerging markets has not kept pace with the growth in private labels elsewhere. For instance, in Europe and North America, private labels now constitute an average of 35% of total retail market share, compared to emerging markets, where market shares vary between 1% and 8 %. This dissertation examines the possibility that differences in private-label performance between developed and emerging economies is not driven by one mechanism, but arises from a variety of sources, both structural, and behavioral. Specifically, I focus on manufacturers’ market power, retailers’ private label portfolio strategies, and consumers’ perceptions of private labels. In most emerging economies, national brand manufacturers tend to be the sole producers of private labels. As a result, manufacturers have inherent market power and can deter retailers from pursuing aggressive private label strategies, which results in low private label market shares. Moreover, some retailers in emerging economies now carry their private labels as part of a multi-tiered portfolio. However, a small price-gap between the quality tiers results in high intraportfolio competition leading to cannibalization and lower private label market shares. Last, private label market shares in emerging economies may be smaller than in developed economies because low-income households prefer higher priced national brands. This counterintuitive phenomenon is driven by two interrelated factors. First, social influence implies that low-income households are upward-comparing, they contrast themselves with high-income households whom they believe are better-off. Because higher-income households purchase national brands, upward-comparisons lead to a preference for national brands. Second, low income households are unknowledgeable about private label advancements hence they prefer national brands.
ContributorsPasirayi, Simbarashe (Author) / Richards, Timothy J. (Thesis advisor) / Morales, Andrea (Committee member) / Grebitus, Carola (Committee member) / Arizona State University (Publisher)
Created2016
Description
This study explored the consumer response and behavioral patterns in relation to sustainability marketing on food packaging. Following a global trend towards sustainability, there has been a recent explosion in the amount of sustainability labels consumers can find on product packaging, though it is not necessarily an indicator of growth of sustainable products in terms of market share. Many marketing factors, such as, price or quality, can influence dietary decisions individuals are making for their households. In the same way, labels that advertise qualities, including ethical production or minimal environmental impact may persuade consumers to buy a product, regardless of whether or not certifications are accurate. The question arises whether individuals are more likely to buy a product that has a sustainability label. More specifically, does this still hold, even if they do not know what that label actually represents? During this study, a variety of household shoppers were surveyed to gather data on consumer awareness, intentions, and overall attitudes towards the credibility and importance of these labels.
ContributorsRichardson, Rylee (Author) / Grebitus, Carola (Thesis director) / Villacis Aviega, Alexis (Committee member) / Hughner, Renee (Committee member) / Barrett, The Honors College (Contributor) / School of Sustainability (Contributor)
Created2023-05