Eating With Your Eyes: How Packaging Visual Cues Affect Content Estimation and Self-control in Virtue and Vice Food

This research investigates the effects of visual cues depicted on food packaging on consumers’ estimates of the contained amount and consumers’ self-control intentions. Results from two experiments show that the number of product units shown on the package drives perceptions and behavioral intentions in food categories where product size tends to be quite standardized, supporting the “see more, expect more” effect reported by previous literature, but adding a “see virtue, expect more” effect triggered by product type. Instead, when product size tends to vary across manufacturers, picture size has a greater effect on consumers’ content estimations and self-control intention than the number of product units depicted, suggesting the existence of a “see small, expect more” effect according to which consumers estimate larger content when the package portrays smaller product units. Results stimulate awareness of the effects that can be conveyed by images on packaging, on content estimates and consumer self-control.     

Work and Fun on the Internet: The Effects of Utilitarianism and Hedonism Online

Consumers may act on the spur of the moment, driven by fun and curiosity, or be goal-oriented, task-focused utilitarians. This study investigates the effects of consumers’ hedonic and utilitarian orientation online on price consciousness, frequency of purchase, purchased amount, intention to re-patronize a Web site and expertise with the Internet. It specifically considers purchasing, not mere browsing, basing on data collected on customers of one of the largest Italian online retailers for electronics. The data show significant differences between hedonic and utilitarian orientation online with regard to past purchase frequency, the amount purchased and the intention to re-patronize the Web site in the future. The findings suggest that utilitarianism is strongly present online, and is valuable, thus utilitarian consumers should not be neglected, but hedonism is even more profitable, impacting on the number of items purchased and the intention to come back to the Web site. No differences are found in the level of price consciousness or in the degree of expertise with the Internet.     

On relative performance,remuneration and risk taking of asset managers

We analyze the asset management problem when the manager is remunerated through a scheme based on the performance of the fund with respect to a benchmark and his/her choices are driven by a power utility function. We show that it is not the asymmetric-fulcrum type feature of the scheme that makes the difference in preventing excessive risk taking in case of a poor performance. To prevent gambling when the performance deteriorates, it is important not to provide a fixed fee to the asset manager, and that remuneration is sensitive to a very poor relative performance as in the case of a capital stake or of a management fee with flow funds. We provide empirical evidence on the mutual fund industry showing excessive risk taking in case of a very poor performance and limited risk taking in case of overperformance with respect to the benchmark. These results agree with a remuneration scheme including a fixed fee and a cap.     

Normal utilization as the adjusting variable in Neo‐Kaleckian growth models: A critique

As well‐known, the canonical Neo‐Kaleckian growth model fails to reconcile actual and normal rates of utilization in equilibrium. Some recent contributions revive an old proposal for solving this problem—making the normal rate of utilization an endogenous variable that converges to the actual utilization rate—justifying it with new, micro‐founded premises. We argue that these new justifications for the convergence of normal to actual utilization do not stand closer scrutiny. First, the proposed microeconomic model relies on various restrictive assumptions, some of which are mutually inconsistent. Second, the derivation of the macroeconomic adjustment mechanism from the microeconomic analysis involves a logical leap that can be justified only by a very arbitrary assumption with little economic justification. Finally, we discuss the way in which this mechanism has been incorporated into the Neo‐Kaleckian growth model by proposers of this approach. We show that, even if one puts aside, for the sake of argument, the first two points, the existence of autonomous components of demand is sufficient to invalidate the resulting macroeconomic model.     

Core Organic Taste: Preferences for Naturalness-Related Sensory Attributes of Organic Food Among European Consumers

Consumers’ preferences for organic food have evolved in recent years, moving from altruistic values to more egoistic buying motivations, such as health promoting or nutritional aspects and sensory properties. Hypothesizing that organic consumers have peculiar preferences for naturalness-related sensory attributes, we developed the concept of the “core organic taste” based on the principles of a wholesome nutrition. This article investigates to what extent the “core organic taste” is relevant across different European countries and its potential relevance for food marketing. A sample of 1,798 organic food consumers was interviewed during 2010–2011 in six European countries. Explorative factor analysis, correlation analysis, ANOVA, and post hoc tests were applied to analyze the data. Results show that the “core organic taste” is not applicable for all countries. Indeed, for most countries only single elements seem to be relevant. However, for Germany and Switzerland the “core organic taste”—representing the first “taste style”—has proven its potential value and points at the need for more research in this field. Depending on the country, product developers and marketers could potentially use different elements of the “core organic taste” to better meet organic consumers’ wishes and expectations. Finally, recommendations and suggestions for practitioners and academia are provided.     

When a picture’s worth a thousand words: The effects of visual construal priming on information acquisition and choice

Individuals acquire information in an attribute- or alternative-based way depending on the construal level of the choice situation. This research contributes to the literature by showing that different information acquisition strategies can emerge not only as a function of the psychological distance from the object of evaluation but also through situational cues unrelated to the evaluation task, such as a visual priming. Furthermore, results show that which pattern of information acquisition is adopted in turn affects individual choices. While the literature has already found a direct effect of construal levels on choices, the present analysis supports the existence also of an indirect effect, mediated by the information acquisition pattern. Consequently, managers can implement simple tools, such as visual stimuli alongside the presentation of product-related information, to display information consistently with individuals’ construal levels, bearing in mind that the way consumers acquire information is a predictor of their choices.     

Export behavior of Italian food firms: Does product quality matter?

Using firm-level data we investigate the export behavior of Italian food firms, focusing on the link between total factor productivity (TFP), product quality, and export across heterogeneous destinations. We test the main predictions of an international trade model based on firm heterogeneity in product quality and non-homothetic preferences in consumption. In this setting, the firm’s export intensity should be increasing in the per-capita income of foreign destinations, and the effect should be largely driven by firms’ heterogeneity in product quality. Using different measures of revenue-TFP, and different proxies for product quality, we find strong support for the main model predictions. Moreover, consistent with the Alchian–Allen effect, we find a positive relationship between the quality of exported products and the distance of destination countries.     

Small,young, and exporters: New evidence on the determinants of firm growth

This work investigates how the export status of the firm influences the patterns of employment growth at different age classes. We address this research question resorting to a novel set of data that links together the universe of Italian firms and detailed data on export transactions. We find that the positive relationship between export status and growth declines with firm age. Further, we also find that, even when accounting for the role of age, the negative size-growth relationship does not disappear, contrary to some recent evidence. These results suggest a positive signaling role of the export status that is stronger for young exporters or born globals. Exploiting the product-country level dimension of the customs data, we also provide, for the first time, evidence on differences in exchange rates pass-through between young and experienced exporters. In particular, we find that early exporters appear to be better equipped than established firms to face exchange rates variations as their exports decrease less following a currency appreciation.     

The (lack of) international harmonization of EU standards: import and export effects in developed versus developing countries

This article studies the effect of the lack of international harmonization in agri-food standards on international trade flows focusing on the European Union (EU). The EU is characterized by high level of protectionism, which makes it an ideal case study. We measure the differences in countries’ level of ‘protectionism’ by applying an index of aggregation of non-tariff measures to data on maximum residue levels on pesticides and veterinary drugs allowed by countries on agri-food products. The restrictiveness of countries standards’ is compared with the one imposed by the Codex Alimentarius, which is considered as non-protectionist. The EU emerges as the most rigorous standards setter. The higher standards imposed by the EU affect in particular imports from developing countries, while it facilitates its exports, irrespective of the level of development and standard restrictiveness set by the importing countries.     

In search of a useful measure of technological innovation (to make economists happy without) discontenting technologists)

This article presents an exploration of the methology and measurement of technological innovation. It is based upon already available surveys and especially upon the SPRU data bank of innovations in Britain. The methodology proposed could be applied to the joint CNR-ISTAT survey being carried out on innovation diffusion in the Italian manufacturing industry. It is suggested that the empirical investigations already available or in progress should be exploited in order to develop a satisfactory theory of technological innovation. The article is also a contribution to the OECD move debate in order to reach aninternational standardization of methodologies and classifications of innovative activity.The author introduces a distinction between the objects and the subjects of technological change, and on this basis he makes a comparison between the two approaches, which emphasize alternatively “evolutionary” or “revolutionary” characteristics of technological change. It is argued that many of the present-day controversies arise from misunderstandings between those working in this field on the concepts and measurement methods employed. As a consequence, the debate has been continuing on different and noncomparable topics.It is argued that a standarization and a more accurate methodological precision on measuring technological innovation could have the salutory effect of removing the suspicion of heresy, which has so far kept the economics of technological change out of thoroughbred economic theory.It would be absolutely superflous to state the nature and number of the advantages of an instrument so excellent for the observation on both land and sea. But, leaving aside earthly considerations, I turned to heavenly speculation; and clearly saw the moon as near as though but two earthly radii distant. After this, to my spirit's incredible delight, I many times observed both the fixed and wandering stars. Since I saw they were very thick, I began to study a way to measure thier distance, which I finally found. On this point it is well that all those wishing to devote themselves to similar observations should be forewarned. In the first place, it is necessary to prepare a most accurate telescope, which represents the objects clearly and distinctly, not covered by any haze, […] in fact, if the instruments is not so, one will try in vain to see all the things I saw in the heavens.