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ImportanceFinancial incentives for weight management may increase use of evidence-based strategies while addressing obesity-related economic disparities in low-income populations.ObjectiveTo examine the effects of 2 financial incentive strategies developed using behavioral economic theory when added to provision of weight management resources.Design, Setting, and ParticipantsThree-group, randomized clinical trial conducted from November 2017 to May 2021 at 3 hospital-based clinics in New York City, New York, and Los Angeles, California. A total of 1280 adults with obesity living in low-income neighborhoods were invited to participate, and 668 were enrolled.InterventionsParticipants were randomly assigned to goal-directed incentives, outcome-based incentives, or a resources-only group. The resources-only group participants were given a 1-year commercial weight-loss program membership, self-monitoring tools (digital scale, food journal, and physical activity monitor), health education, and monthly one-on-one check-in visits. The goal-directed group included resources and linked financial incentives to evidence-based weight-loss behaviors. The outcome-based arm included resources and linked financial incentives to percentage of weight loss. Participants in the incentive groups could earn up to $750.Main Outcomes and MeasuresProportion of patients achieving 5% or greater weight loss at 6 months.ResultsThe mean (SD) age of the 668 participants enrolled was 47.7 (12.4) years; 541 (81.0%) were women, 485 (72.6%) were Hispanic, and 99 (14.8%) were Black. The mean (SD) weight at enrollment was 98.96 (20.54) kg, and the mean body mass index (calculated as weight in kilograms divided by height in meters squared) was 37.95 (6.55). At 6 months, the adjusted proportion of patients who lost at least 5% of baseline weight was 22.1% in the resources-only group, 39.0% in the goal-directed group, and 49.1% in the outcome-based incentive group (difference, 10.08 percentage points [95% CI, 1.31-18.85] for outcome based vs goal directed; difference, 27.03 percentage points [95% CI, 18.20-35.86] and 16.95 percentage points [95% CI, 8.18-25.72] for outcome based or goal directed vs resources only, respectively). However, mean percentage of weight loss was similar in the incentive arms. Mean earned incentives was $440.44 in the goal-directed group and $303.56 in the outcome-based group, but incentives did not improve financial well-being.Conclusions and RelevanceIn this randomized clinical trial, outcome-based and goal-directed financial incentives were similarly effective, and both strategies were more effective than providing resources only for clinically significant weight loss in low-income populations with obesity. Future studies should evaluate cost-effectiveness and long-term outcomes.Trial RegistrationClinicalTrials.gov Identifier: NCT03157713

Along the path of struggling to reach their personal and organizational long-term goals, the experience of an initial subgoal failure can lead individuals to feel less committed to their overall goal and even to give up entirely on reaching it. In one field study and four lab studies, we examine the ability of a cost-free nudge to decrease the detrimental impact of subgoal failure on goal attainment. More specifically, we demonstrate that framing goals with emergency reserves, a type of slack, can motivate individuals to persist after subgoal failures, leading to better performance on long-term goals, compared to objectively equivalent goals without slack. After failing to reach a subgoal, we found that individuals with goals framed with emergency reserves felt a greater sense of perceived progress, causing them to feel more committed to their goal, and thus increasing their likelihood of persisting at their goals.

Technological innovations are creating new products, services, and markets that satisfy enduring consumer needs. These technological innovations create value for consumers and firms in many ways, but they also disrupt psychological ownership––the feeling that a thing is “MINE.” The authors describe two key dimensions of this technology-driven evolution of consumption pertaining to psychological ownership: (1) replacing legal ownership of private goods with legal access rights to goods and services owned and used by others and (2) replacing “solid” material goods with “liquid” experiential goods. They propose that these consumption changes can have three effects on psychological ownership: they can threaten it, cause it to transfer to other targets, and create new opportunities to preserve it. These changes and their effects are organized in a framework and examined across three macro trends in marketing: (1) growth of the sharing economy, (2) digitization of goods and services, and (3) expansion of personal data. This psychological ownership framework generates future research opportunities and actionable marketing strategies for firms aiming to preserve the positive consequences of psychological ownership and navigate cases for which it is a liability.

How can consumers be encouraged to take better care of public goods? Across four studies, including two experiments in the field and three documenting actual behaviors, the authors demonstrate that increasing consumers’ individual psychological ownership facilitates stewardship of public goods. This effect occurs because feelings of ownership increase consumers’ perceived responsibility, which then leads to active behavior to care for the good. Evidence from a variety of contexts, including a public lake with kayakers, a state park with skiers, and a public walking path, suggests that increasing psychological ownership enhances both effortful stewardship, such as picking up trash from a lake, and financial stewardship, such as donating money. This work further demonstrates that the relationship between psychological ownership and resulting stewardship behavior is attenuated when there are cues, such as an attendance sign, which diffuse responsibility among many people. This work offers implications for consumers, practitioners, and policy makers with simple interventions that can encourage consumers to be better stewards of public goods.

IntroductionRobust randomised trial data have shown that routine preoperative (pre-op) testing for cataract surgery patients is inappropriate. While guidelines have discouraged testing since 2002, cataract pre-op testing rates have remained unchanged since the 1990s. Given the challenges of reducing low-value care despite strong consensus around the evidence, innovative approaches are needed to promote high-value care. This trial evaluates the impact of an interdisciplinary electronic health record (EHR) intervention that is informed by behavioural economic theory.Methods and analysisThis pragmatic randomised trial is being conducted at UCLA Health between June 2021 and June 2022 with a 12-month follow-up period. We are randomising all UCLA Health physicians who perform pre-op visits during the study period to one of the three nudge arms or usual care. These three nudge alerts address (1) patient harm, (2) increased out-of-pocket costs for patients and (3) psychological harm to the patients related to pre-op testing. The nudges are triggered when a physician starts to order a pre-op test. We hypothesise that receipt of a nudge will be associated with reduced pre-op testing. The primary outcome will be the change in the percentage of patients undergoing pre-op testing at 12 months. Secondary outcomes will include the percentage of patients undergoing specific categories of pre-op tests (labs, EKGs, chest X-rays (CXRs)), the efficacy of each nudge, same-day surgery cancellations and cost savings.Ethics and disseminationThe study protocol was approved by the institutional review board of the University of California, Los Angeles as well as a nominated Data Safety Monitoring Board. If successful, we will have created a tool that can be disseminated rapidly to EHR vendors across the nation to reduce inappropriate testing for the most common low-risk surgical procedures in the country.Trial registration numberClinicalTrials.gov identifier: NCT04104256.

Uncontrolled hypertension contributes to disparities in cardiovascular outcomes. Patient intervention strategies informed by behavioral economics and social psychology could improve blood pressure (BP) control in disadvantaged minority populations. To assess the impact on BP control of an intervention combining short-term financial incentives with promotion of intrinsic motivation among highly disadvantaged patients. Randomized controlled trial. Two hundred seven adults (98% African American or Latino) aged 18 or older with uncontrolled hypertension attending Federally Qualified Health Centers. Six-month intervention, combining financial incentives for measuring home BP, recording medication use, BP improvement, and achieving target BP values with counseling linking hypertension control efforts to participants’ personal reasons to stay healthy. Primary outcomes: percentage achieving systolic BP (SBP)

Consumers are widely adopting Artificially Intelligent Voice Assistants (AIVAs). AIVAs now handle many different everyday tasks and are also increasingly assisting consumers with purchasing decisions, making AIVAs a rich topic for marketing researchers. We develop a series of propositions regarding how consumer decision-making processes may change when moved from traditional online purchase environments to AI-powered voice-based dialogs, in the hopes of encouraging further academic thinking and research in this rapidly developing, high impact area of consumer-firm interaction. We also provide suggestions for marketing managers and policymakers on points to pay attention to when they respond to the proposed effects of AIVAs on consumer decisions.

The problem of drawing down one’s savings in retirement is known as “decumulation” and is a topic of growing policy importance. This article is devoted to understanding the psychology inherent in decumulation decisions and to identifying policy options that may develop from those findings. We begin by describing key psychological inputs to these decisions, including self-control, temporal discounting, loss aversion, fairness, and psychological ownership. We then briefly review the current evidence testing those processes within particular decumulation domains. Finally, we offer five possible policy approaches for influencing decumulation decisions, including addressing financial literacy, providing defaults, encouraging precommitments, offering disclosures, and building customized decision support systems. These interventions differ according to individuals’ financial sophistication and allow policy makers flexibility in determining the level of support to provide.

The success of choice architecture, including its adoption in government policy and practice, has prompted questions of whether choice architecture design decisions are sufficiently transparent and publicly acceptable. We examined whether disclosing to decision-makers that a particular choice architecture is in place reduces its effectiveness and whether an understanding of the effectiveness of choice architecture design decisions increases their acceptability. We find that disclosure of the design decision does not reduce its effectiveness and that individuals perceive the effectiveness of specific designs to be higher for others than for themselves. Perceived effectiveness for self increases when individuals have actually experienced the effect of a design decision rather than having it simply described to them. Perceived effectiveness for oneself and others increases the acceptability of the designs. We also find that the intentions of the source matter more than who the source actually is. Important for policy-makers, then, is that disclosure of design decisions does not reduce their effectiveness, and their acceptability depends on their perceived effectiveness and the inferred motivations of the design architect.

Marketers of programs that are designed to help consumers reach goals face dual challenges of making the program attractive enough to encourage consumer signup while still motivating consumers to reach desirable goals and thus stay satisfied with the program. The authors offer a possible solution to this challenge: the emergency reserve, or slack with a cost. They demonstrate how an explicitly defined emergency reserve not only is preferred over other options for goal-related programs but can also lead to increased persistence. Study 1 demonstrates that consumers prefer programs with emergency reserves to programs that do not have them, and Study 2 further clarifies that consumers' preference for an emergency reserve depends on the presence of a superordinate goal. Study 3 reveals that consumers prefer goals with emergency reserves because they perceive them to have both higher attainability and value than other goals. Study 4 demonstrates that reserves can lead to increased goal persistence in a realistic task that involves persistence over time. Finally, Studies 5 and 6 reveal that consumers persist more with reserve goals because they want to avoid using the “emergency” reserve.

Author(s): Bakr, Omar; Afsar-Manesh, Nasim; Raja, Naveen; Dermenchyan, Anna; Goldstein, Noah J; Shu, Suzanne B; May, Folasade P | Abstract: IntroductionColorectal cancer (CRC) is a major cause of cancer-related morbidity and mortality in the United States. Although various interventions have improved screening rates, they often require abundant resources and can be difficult to implement. Social psychology and behavioral economics principles offer an opportunity for low-cost and easy-to-implement strategies but are less common in clinical settings.MethodsWe randomized 2,000 patients aged 50-75 years eligible for CRC screening to one of the 2 mailed interventions: a previously used text-based letter describing and offering fecal immunochemical testing (FIT) and colonoscopy (usual care arm); or a letter leveraging social psychology and behavioral economics principles (e.g., implied scarcity and choice architecture), minimal text, and multiple images to offer FIT and colonoscopy (intervention arm). We compared total screening uptake, FIT uptake, and colonoscopy uptake at 1-month intervals in each group.ResultsThere were 1,882 patients included in the final analysis. The mean age was 69.3 years, and baseline characteristics in the 2 groups were similar. Screening completion at 26 weeks was 19.5% in the usual care arm (16.3% FIT vs 3.2% colonoscopy, P l 0.01) and 24.1% in the intervention arm (22.1% FIT vs 2.0% colonoscopy, P l 0.01) (P = 0.02).DiscussionAmong primary care patients aged 50-75 years in an academic setting, mailed CRC outreach employing social psychology and behavioral economics principles led to a higher participation in CRC screening than usual care mailed outreach.Translational impactMailed interventions to increase CRC screening should incorporate social psychology and behavioral economics principles to improve participation.

IntroductionObesity is a major public health challenge and exacerbates economic disparities through employment discrimination and increased personal health expenditures. Financial incentives for weight management may intensify individuals’ utilisation of evidence-based behavioural strategies while addressing obesity-related economic disparities in low-income populations. Trials have focused on testing incentives contingent on achieving weight loss outcomes. However, based on social cognitive and self-determination theories, providing incentives for achieving intermediate behavioural goals may be more sustainable than incentivising outcomes if they enhance an individual’s skills and self-efficacy for maintaining long-term weight loss. The objective of this paper is to describe the rationale and design of the Financial Incentives foR Weight Reduction study, a randomised controlled trial to test the comparative effectiveness and cost-effectiveness of two financial incentive strategies for weight loss (goal directed vs outcome based) among low-income adults with obesity, as well as compared with the provision of health behaviour change resources alone.Methods and analysisWe are recruiting 795 adults, aged 18–70 years with a body mass index ≥30 kg/m2, from three primary care clinics serving residents of socioeconomically disadvantaged neighbourhoods in New York City and Los Angeles. All participants receive a 1-year commercial weight loss programme membership, self-monitoring tools (bathroom scale, food journal and Fitbit Alta HR), health education and monthly check-in visits. In addition to these resources, those in the two intervention groups can earn up to $750 over 6 months for: (1) participating in an intensive weight management programme, self-monitoring weight and diet and meeting physical activity guidelines (goal-directed arm); or (2) a ≥1.5% to ≥5% reduction in baseline weight (outcome-based arm). To maximise incentive efficacy, we incorporate concepts from behavioural economics, including immediacy of payments and framing feedback to elicit regret aversion. We will use generalised mixed effect models for repeated measures to examine intervention effects on weight at 6, 9 and 12 months.Ethics and disseminationHuman research protection committees at New York University School of Medicine, University of California Los Angeles (UCLA) David Geffen School of Medicine and Olive-View–UCLA Medical Center granted ethics approval. We will disseminate the results of this research via peer-reviewed publications, conference presentations and meetings with stakeholders.Trial registration numberNCT03157713.

BackgroundPreexposure prophylaxis (PrEP) has emerged as a human immunodeficiency virus (HIV) prevention tool for populations at highest risk for HIV infection. Current US Centers for Disease Control and Prevention (CDC) guidelines for identifying PrEP candidates may not be specific enough to identif

Low incomes, limited financial literacy, fraud, and deception are just a few of the many intractable economic and social factors that contribute to the financial difficulties that households face today. Addressing these issues directly is difficult and costly. But poor financial outcomes also result from systematic psychological tendencies, including imperfect optimization, biased judgments and preferences, and susceptibility to influence by the actions and opinions of others. Some of these psychological tendencies and the problems they cause may be countered by policies and interventions that are both low cost and scalable. We detail the ways that these behavioral factors contribute to consumers' financial mistakes and suggest a set of interventions that the federal government, in its dual roles as regulator and employer, could feasibly test or implement to improve household financial outcomes in a variety of domains: retirement, short-term savings, debt management, the take-up of government benefits, and tax optimization.

Geosocial networking phone applications (GSN apps) used to meet sexual partners have become popular in the men who have sex with men (MSM) communities of the USA since 2009. Previous studies have shown greater incidence of gonorrhea and chlamydia and lower testing frequency for HIV testing among GSN app users when compared to non-users. The present study aims to determine the type, number, and frequency of apps used, as well as the association between dispositional self-control and health-related behaviors. Participants (n = 146) were recruited from Amazon's Mechanical Turk program to respond to a brief GSN app marketing survey. Multivariate regression was used to determine differences in app priorities, length of app use, and number of sexual partners between high self-control and low self-control participants. A majority of the participants reported using Grindr (78%) followed by Scruff (19%), Growlr (12%), and Jack'd (12%). Most individuals used one app only (58%), but a significant proportion reported using two apps (28%) or three or more apps (14%). Respondents with low self-control were more likely to report a higher number of hours using GSN apps and a higher number of sexual partners, controlling for race/ethnicity, education, employment, and HIV status. Given the popularity of this burgeoning communication medium, these findings have important implications for developing prevention resources for different segments of GSN app users.

Life annuities can be a valuable component of the decumulation stage of wealth during retirement. While economists argue that most retirees should annuitize, actual demand in the marketplace is low. We analyze data from two studies to determine how measurable individual differences among consumers affect their interest in annuities. We find that a relatively high percentage of respondents dislike all annuities. Demographic factors are not predictive of which individuals dislike annuities, and individual factors predicted by economic models to be important (such as beneficiaries) have small or even opposite effects. The strongest individual differences we measured that predicts liking of annuities is the respondent’s perception of product fairness. We discuss implications of our findings for financial planners hoping to help their customers with these decumulation challenges.

We examine how perceived similarity between sequential risks affects individuals' risk-taking intentions. Specifically, in six studies we find that in sequential choice settings individuals exhibit significant positive state dependence in risk-taking preferences, such that they are more likely to take a risk when it is similar to a previously taken risk than when it is dissimilar. For example, if an individual has previously taken a health/safety risk, that individual is more likely to take a second health/safety risk than a second risk that is in the financial domain. Since similarity between risks is malleable and can be determined by situational and contextual variables, we show that we can change subsequent risk-taking intentions in a predictable manner by manipulating similarity through framing. Finally, we establish that increased feelings of self-efficacy and self-signaling through the prior risk-taking experience drive state dependent risk-taking preferences. We further show that the effe...

Policy makers have long intuitively realized the benefit of encouraging strong psychological ownership toward social programs. For example, Franklin D. Roosevelt in the 1930s purposely designed the Social Security program to include a high feeling of ownership by workers, to generate a sense of responsibility and protection from future legislation. Recent research suggests that this sense of ownership continues to be an important part of the SSA program and is a significant predictor of when retirees claim their benefits. Strong feelings of ownership also exist for other programs (e.g., Medicare) and financial services (e.g., investments), and there are significant implications of that psychological ownership on consumers’ decisions and behavior around these programs. Policy makers and marketers may wish to consider the role of interventions that affect consumers’ psychological ownership, along with feelings of trust and fairness, for such products.

Publicly owned or shared items can often suffer from a lack of stewardship due to a diffusion of responsibility, a dilemma sometimes known as the tragedy of the commons. We propose that even when an item is publicly rather than privately owned (e.g., a local pond or community park), there can still be high levels of psychological ownership. The benefit of high psychological ownership for public goods is that the individual then takes a stronger responsibility for care (stewardship) of the object, thus reducing the tragedy of the commons. We discuss interventions designed to increase ownership for shared and public goods, including the use of social identity to drive engagement, and offer experimental evidence for such approaches.

How many positive claims should firms use to produce the most positive impression of a product or service? This article posits that when consumers know that the message source has a persuasion motive, the optimal number of positive claims is three. Increasing the number of claims improves consumer perceptions until the fourth claim, at which point consumers’ persuasion knowledge causes them to view all the claims with skepticism. The studies herein establish and explore this pattern, which the authors refer to as the “charm of three.” An initial experiment indicates that impressions peak at three claims for sources with a persuasion motive but not for sources without a persuasion motive. The second experiment indicates that this effect occurs for attitudes and impressions and that increased skepticism at four or more claims explains the effect. Two final experiments examine the mental process by which the charm of three occurs by investigating how cognitive load and sequential claims influence the effect.

Research has shown self-affirmation to be a powerful tool for increasing openness to arguments. However, prior examinations of its effects involved manipulations with limited applicability outside the laboratory. Building on recent work suggesting that choice of highly aesthetic products can be a form of affirmation, we proposed and tested whether merely affiliating people with high aesthetics can affirm their sense of self and thus encourage openness to arguments advocating selection of one option over another. In 3 experiments we examined this effect in financial and consumer decisions in which choices varied in their inherent risk. Across the experiments, after affiliating people with high (vs. low) aesthetics, they were more likely to select the advocated option--whether that option was the riskier or less risky option. This occurred using actual annual reports and a sample of experienced investors (Experiment 1), when the aesthetic affiliation and the choice tasks were in entirely unrelated areas (Experiment 2) and was driven by greater openness to arguments (Experiment 3). Together these studies offer a self-affirmation manipulation that is relevant and easily used by practitioners in a variety of fields. They also provide novel insights on the link between aesthetics, self-affirmation, openness, and risk taking.

Decisions about life annuities are an important part of consumer decumulation of retirement assets, yet they are relatively underexplored by marketing researchers studying consumer financial decision making. In this article, the authors propose and estimate a model of individual preferences for life annuity attributes using a choice-based stated-preference survey. Annuities are presented in terms of consumer-relevant attributes such as monthly income, yearly adjustments, period certain guarantees, and company financial strength. The authors find that these attributes directly influence consumer preferences beyond their impact on the annuity's expected present value. The strength of the direct influence depends on how annuities are described: when annuities are represented only through basic attributes, consumers undervalue inflation protection, and preferences are not monotonically increasing in duration of period certain guarantees. When descriptions of annuities are enriched with cumulative payment information, consumers no longer undervalue inflation protection, but nonlinear preferences for period certain options remain. The authors find that among annuities with the same expected payout but different annual increases and period certain guarantees, the proportion of consumers who choose the annuity over self-management can vary by more than a factor of 2.

Life expectations are essential inputs for many important personal decisions. We propose that longevity beliefs are responses constructed at the time of judgment, subject to irrelevant task and context factors, and leading to predictable biases. Specifically, we examine whether life expectancy is affected by the framing of expectations questions as either live-to or die-by, as well as by factors that actually affect longevity such as age, gender, and self-reported health. We find that individuals in a live-to frame report significantly higher chances of being alive at ages 55 through 95 than people in a corresponding die-by frame. Estimated mean life expectancies across three studies and 2300 respondents were 7.38 to 9.17 years longer when solicited in a live-to frame. We are additionally able to show how this framing works on a process level and how it affects preference for life annuities. Implications for models of financial decision making are discussed.

Despite a revolution in therapeutics, the ability to control chronic diseases remains elusive. We present here a conceptual model of the potential role of behavioral tools in chronic disease control. Clinicians implicitly accept the assumption that patients will act rationally to maximize their self-interest. However, patients may not always be the rational actors that we imagine. Major behavioral barriers to optimal health behavior include patients’ fear of threats to health, unwillingness to think about problems when risks are known or data are ambiguous, the discounting of risks that are far in the future, failure to act due to lack of motivation, insufficient confidence in the ability to overcome a health problem, and inattention due to pressures of everyday life. Financial incentives can stimulate initiation of health-promoting behaviors by reducing or eliminating financial barriers, but may not produce long-term behavior change without additional interventions. Strategies have been developed by behavioral economists and social psychologists to address each of these barriers to better decision-making. These include: labeling positive behaviors in ways consistent with patient life goals and priorities; greater focus on more immediate risks of chronic diseases; intermediate subgoals as steps to a large health goal; and implementation of specific plans as to when, where, and how an action will be taken. Such strategies hold promise for improving health behaviors and disease control, but most have not been studied in medical settings. The effectiveness of these approaches should be evaluated for their potential as tools for the clinician.

The way a choice is presented influences what a decision-maker chooses. This paper outlines the tools available to choice architects, that is anyone who present people with choices. We divide these tools into two categories: those used in structuring the choice task and those used in describing the choice options. Tools for structuring the choice task address the idea of what to present to decision-makers, and tools for describing the choice options address the idea of how to present it. We discuss implementation issues in using choice architecture tools, including individual differences and errors in evaluation of choice outcomes. Finally, this paper presents a few applications that illustrate the positive effect choice architecture can have on real-world decisions.

This research proposes that the concept of emotional attachment, and specifically the independent constructs of psychological ownership and affective reaction, can help explain many of the endowment effect findings documented in the literature. We define these constructs and then test them across a set of nine studies in which we both replicate previous and generate new endowment effect findings, and then show that psychological ownership and affective reaction can mediate the effects. In doing so, we offer direct empirical support for the idea of emotional attachment as a driver of loss aversion while also providing practitioners and future endowment effect researchers with new insights about the psychological processes that underlie the endowment effect.

We observe the influence of aesthetic design on consumer behavior involving financial products—an area where financial decision-makers say they do not take aesthetics into account. In a series of three studies we find that the look of a document in hypothetical investment decisions impacts stock valuation and behavior in some but not all situations. Specifically, our results show that calling attention to the influence of design on behavior moderates the effect, including the paradoxical finding that the effect of design is attenuated when investments involve entities for which aesthetics is of intrinsic value.

Decision-makers with ideal candidates already in mind often extend search beyond optimal endpoints when searching for the best option among a sequential list of alternatives. Extended search is investigated here using three laboratory experiments; individuals in these tasks exhibit future-bias, delaying choice beyond normative benchmarks. Searchers' behavior is consistent with setting high thresholds based on a focal ideal outcome without full attention to its probability or the value of second-best alternatives; the behavior is partially debiased by manipulating which outcomes are in the searchers' focal set. Documenting future-bias in sequential search tasks offers new insights for understanding self-control and intertemporal choice by providing a situation in which thresholds may be set too high and myopic behavior does not prevail. Copyright © 2008 John Wiley & Sons, Ltd.

The use of scarcity and reference price techniques in 13,594 retail newspaper display advertisements across four major U.S. cities was evaluated in terms of frequency and usage strategies using framing and information‐processing perspectives. One or both of these techniques were found in 22.4% of the ads. Scarcity was used more frequently than reference pricing, and was strongly associated with the use of reference pricing. Limited time availability was found to dominate the use of scarcity tactics. Scarcity and reference pricing were also strongly associated with the use of other attention and persuasion tactics, such as color ads, larger ads, and “Sale” announcements. Given the extensive use of reference pricing and scarcity appeals, their association with each other, and their further association with other commonly recognized advertising tactics, additional research on the use of multiple influence strategies appears warranted. The authors thank Tiffani Oltmanns and Daniel Taraba for their assistance ...

It is well established that people perceive streaks where they do not exist. However, little is known about what constitutes a streak in the mind of an observer. This paper proposes that the third repeat event in a sequence is pivotal to the subjective belief that a streak is occurring. In five studies, we find direct and indirect evidence that perceived streakiness plateaus with the third repeat outcome in a sequence. The evidence to support this rule of three comes from various domains, including: observation of randomly determined probabilistic outcomes, investment decisions in response to performance histories, and basketball shooting percentages.

How many positive claims should be used to produce the most positive impression of a product or service? This article posits that in settings where consumers know that the message source has a persuasion motive, the optimal number of positive claims is three. More claims are better until the fourth claim, at which time consumers’ persuasion knowledge causes them to see all the claims with skepticism. The studies in this paper establish and explore this pattern, which is referred to as the charm of three. An initial experiment finds that impressions peak at three claims for sources with persuasion motives but not for sources without a persuasion motive. Experiment 2 finds that this occurs for attitudes and impressions, and that increases in skepticism after three claims explain the effect. Two final experiments examine the process by investigating how cognitive load and sequential claims impact the effect.

Expectations about how long one will live are essential for making informed choices about many important personal decisions. We propose that beliefs (expectations) about longevity are a response constructed at the time of judgment, subject to irrelevant task and context factors, and leading to predictable biases. Specifically, we examine whether life expectancy is affected by the framing of expectations questions, as well as by factors that actually affect longevity such as the age, gender, and self-reported health status of the respondent. One frame asks people to provide probabilities of living to a certain age or older; the other frame asks people to provide probabilities of dying by a certain age or younger. These two answers should be complements, but we find that estimated probabilities differ significantly in the two conditions. People in the live-to frame report that they have a 55% chance of being alive at age 85, whereas people in the die-by frame report that they have a 68% chance of being dead at age 85. Overall, estimated mean life expectancies, across three studies and over 2300 respondents were between 7.29 to 9.17 years longer when solicited in the live-to frame. We compare estimated life expectancies with Social Security Administration (SSA) life tables and find that the judgments of individuals in the live-to frame were closer to actual life expectancies for ages 65 and 75, while in the die-by condition, the respondents were more accurate for older ages, e.g., age 95. On a process level, we show that the framing effect on judgments is partially mediated by the relative number of thoughts in favor of being alive at that age. Finally, we find that individual differences in life expectancies relate to differences in stated preference for life annuities, a product that provides insurance against outliving one’s savings. The implications of “constructed” life expectancies for models of financial decision making, and for improving financial decision making are discussed.

This research finds that merely touching an object results in an increase in perceived ownership of that object. For nonowners, or buyers, perceived ownership can be increased with either mere touch or with imagery encouraging touch. Perceived ownership can also be increased through touch for legal owners, or sellers of an object. We also explore valuation of an object and conclude that it is jointly influenced by both perceived ownership and by the valence of the touch experience. We discuss the implications of this research for online and traditional retailers as well as for touch research and endowment effect research.