In 1974 an article appeared in Science magazine with the dry-sounding title “Judgment Under Uncertainty: Heuristics and Biases” by a pair of psychologists who were not well known outside their discipline of decision theory. In it Amos Tversky and Daniel Kahneman introduced the world to Prospect Theory, which mapped out how humans actually behave when faced with decisions about gains and losses, in contrast to how economists assumed that people behave. Prospect Theory turned Economics on its head by demonstrating through a series of ingenious experiments that people are much more concerned with losses than they are with gains, and that framing a choice from one perspective or the other will result in decisions that are exactly the opposite of each other, even if the outcomes are monetarily the same. Prospect Theory led cognitive psychology in a new direction that began to uncover other human biases in thinking that are probably not learned but are part of our brain’s wiring.

Thinking fast and slow.

NUDGE: IMPROVING DECISIONS ABOUT HEALTH, WEALTH, AND HAPPINESS by Richard H. Thaler and Cass R. Sunstein Penguin Books, 2009, 312 pp, ISBN 978-0-14-311526-7This book is best described formally as a general explanation of and advocacy for libertarian paternalism, a term coined by the authors in earlier publications. Informally, it is about how leaders, systems, organizations, and governments can nudge people to do the things the nudgers want and need done for the betterment of the nudgees, or of society. It is paternalism in the sense that "it is legitimate for choice architects to try to influence people's behavior in order to make their lives longer, healthier, and better", (p. 5) It is libertarian in that "people should be free to do what they like - and to opt out of undesirable arrangements if they want to do so", (p. 5) The built-in possibility of opting out or making a different choice preserves freedom of choice even though people's behavior has been influenced by the nature of the presentation of the information or by the structure of the decisionmaking system. I had never heard of libertarian paternalism before reading this book, and I now find it fascinating.Written for a general audience, this book contains mostly social and behavioral science theory and models, but there is considerable discussion of structure and process that has roots in mathematical and quantitative modeling. One of the main applications of this social system is economic choice in investing, selecting and purchasing products and services, systems of taxes, banking (mortgages, borrowing, savings), and retirement systems. Other quantitative social choice systems discussed include environmental effects, health care plans, gambling, and organ donations. Softer issues that are also subject to a nudge-based approach are marriage, education, eating, drinking, smoking, influence, spread of information, and politics. There is something in this book for everyone.The basis for this libertarian paternalism concept is in the social theory called "science of choice", the study of the design and implementation of influence systems on various kinds of people. The terms Econs and Humans, are used to refer to people with either considerable or little rational decision-making talent, respectively. The various libertarian paternalism concepts and systems presented are tested and compared in light of these two types of people. Two foundational issues that this book has in common with another book, Network of Echoes: Imitation, Innovation and Invisible Leaders, that was also reviewed for this issue of the Journal are that 1 ) there are two modes of thinking (or components of the brain) - an automatic (intuitive) process and a reflective (rational) process and 2) the need for conformity and the desire for imitation are powerful forces in human behavior. …

Nudge: Improving Decisions about Health, Wealth, and Happiness

체험마케팅(Experiential Marketing)의 오해와 진실

A prototype decision support IT-tool for the food industry was developed in the STARTEC project. Typical processes and decision steps were mapped using real life production scenarios of participating food companies manufacturing complex ready-to-eat foods. Companies looked for a more integrated approach when making food safety decisions that would align with existing HACCP systems. The tool was designed with shelf life assessments and data on safety, quality, and costs, using a pasta salad meal as a case product. The process flow chart was used as starting point, with simulation options at each process step. Key parameters like pH, water activity, costs of ingredients and salaries, and default models for calculations of Listeria monocytogenes, quality scores, and vitamin C, were placed in an interactive database. Customization of the models and settings was possible on the user-interface. The simulation module outputs were provided as detailed curves or categorized as "good"; "sufficient"; or "corrective action needed" based on threshold limit values set by the user. Possible corrective actions were suggested by the system. The tool was tested and approved by end-users based on selected ready-to-eat food products. Compared to other decision support tools, the STARTEC-tool is product-specific and multidisciplinary and includes interpretation and targeted recommendations for end-users.

/pdf/the-startec-decision-support-tool-for-better-tradeoffs-2ldpfabpbi.pdf

The STARTEC Decision Support Tool for Better Tradeoffs between Food Safety, Quality, Nutrition, and Costs in Production of Advanced Ready-to-Eat Foods

https://www.econstor.eu/bitstream/10419/194470/1/1-s2.0-S2212977413000331-main.pdf

Online, face-to-face and telephone surveys—Comparing different sampling methods in wine consumer research

Purpose – This paper aims to offer an in‐depth analysis of Generation Y's choices concerning the consumption of wine and other alcoholic drinks by examining the consumption situations in a traditional wine‐producing country.Design/methodology/approach – The study applied the multinomial logit model involving a sample of Generation Y alcohol consumers in a city in Northern Italy. Choice sets were constructed using the Bayesian efficient design, and each choice set included four consumption situations: at bars or pubs, at discos, at home and at restaurants or pizzerias.Findings – Generation Y is aware of the different functions of alcoholic beverages in different consumption situations. Further, the type of company they keep influences their choice of beverage. Wine is the preferred drink in situations or occasions of conviviality or hospitality. However, this result only partly follows the traditional model of wine consumption. Segmentation elements are highlighted by considering gender and age.Practical i...

Generation Y's perception of wine and consumption situations in a traditional wine‐producing region

Purpose – The purpose of this paper is to identify and discuss the web-marketing behavioural models adopted in the wine industry using as case studies several leading Italian wineries. It aims to propose a new methodology to evaluate the impact of web marketing strategies on online brand visibility and image. Design/methodology/approach – The paper is based on literature review and case study approach. The study uses six leading Italian wineries as case studies, selected by taking into account six strategic profiles: business size, business management, corporate brand reputation, competitive strategy, marketing orientation and marketing budget. Findings – The proposed structured methodology highlights new key elements that could be implemented in a marketing plan. The research results propose a conceptual three-dimension approach that integrates a business's strategic orientation with its digital-marketing strategy and its social media tactics. It also includes specific evaluation criteria to measure the ...

Social media strategies and corporate brand visibility in the wine industry: Lessons from an Italian case study

Purpose – In 2012, the European food industry was hit by a food fraud: horsemeat was found in pre-prepared foods, without any declaration on the package. This is commonly referred to as the “horsemeat scandal”. The purpose of this paper is to investigate consumers’ preferences across Europe for a selected ready meal, ready to heat (RTH) fresh lasagne, to consider whether the effects of potential food frauds on consumers’ choices can be mitigated by introducing enhanced standards of RTH products. Design/methodology/approach – An online survey was administered to 4,598 consumers of RTH lasagne in six European countries (Republic of Ireland, France, Italy, Spain, Germany and Norway), applying discrete choice experiments to estimate consumers’ willingness to pay for enhanced food safety standards and highlight differences between countries. Findings – Many similarities across countries emerged, as well as some differences. Consumers in Europe are highly concerned with the authenticity of the meat in ready mea...

/pdf/food-fraud-and-consumers-choices-in-the-wake-of-the-kzzojp3rep.pdf

Food fraud and consumers' choices in the wake of the horsemeat scandal

Purpose – The purpose of this paper is to advance the understanding of the decision-making process of consumers from novice markets facing the choice of a complex product like wine, explaining the determinants of their consumption intention and behaviour. It also aims to understand the link between product attributes and consumption intention and behaviour, analysing the role played by intrinsic and extrinsic cues. Design/methodology/approach – This study applies the theory of planned behaviour considering that individuals do not always have complete control of wine consumption behaviour, especially when they come from a novice market. A questionnaire survey, preceded by an exploratory phase, was conducted in St Louis, Missouri, a novice market for wine. Findings – This study identifies a novice consumer whose choice of a complex product is driven by experiential attitude towards the product more than the conditioning of referents, and even more than the perceived behavioural control and the interconnecte...

Behind intention and behaviour: factors influencing wine consumption in a novice market

By estimating the demand for imported wine in China, this study investigates Chinese consumer choices in terms of wines and countries of origin, as well as the competition among suppliers. The Restricted Source Differentiated Almost Ideal Demand System (RSDAIDS) model is applied. Three goods (still bottled, bulk and sparkling wines) imported from the main exporting countries (France, Italy, Australia and Chile) and from the rest of the world are analysed. The model also includes socio-economic variables and seasonality. The results show that price sensitivities are different: inelasticity for sparkling wines, elasticity for bulk wines and different degrees of responsiveness for still bottled wines. France plays the role of market leader, and competitive interdependence emerges among its followers. The estimation of import expenditure is characterised by the widening of the wine portfolio. The minor followers generate high competitive dynamism. Relationships of substitutability or complementarity between w...

Lara Agnoli

Papers

Generation Y's perception of wine and consumption situations in a traditional wine‐producing region

Social media strategies and corporate brand visibility in the wine industry: Lessons from an Italian case study

Food fraud and consumers' choices in the wake of the horsemeat scandal

Behind intention and behaviour: factors influencing wine consumption in a novice market

Chinese import demand for wine: evidence from econometric estimations