What Counts Most?

How Price, Country of Origin and Nationality Dynamically Affect Consumer Preference

Dalia Bagdziunaite, Anne Strande Jensen, Julie Auning-Hansen, Jesper Clement, Thomas Z. Ramsøy

Research output: Contribution to journalConference abstract in journalResearchpeer-review

Abstract

Framing is a well-established research method in neuroeconomics and consumer neuroscience. Framing effects of price, country of origin (CoO), and brands have all been demonstrated in many different conditions. However, our knowledge of framing effects woefully lacks any understanding of the relative strength of these effects, and how they may dynamically interact. To abate this problem, we conducted an experiment in which we recruited participants from three regions (Italy, France and rest of world), to undergo wine testing and rating of wine taste preference, and willingness to pay (WTP) while being exposed to the CoO and price of each wine. Unbeknownst to the participants, they all tasted the same wine. To provide a better understanding of the underlying mechanisms of the observed effects, emotional arousal was assessed using pupillometry. Using a linear regression model, our results demonstrate that price and CoO individually have a significant effect on the hedonic experience of wine (R² = 0.11, p<0.0001). Two-way interactions demonstrate that price has a differential effect on preference depending on CoO. Here, we also find that preference is highly correlated with subjects' WTP for the wine. Finally, we show that WTP is differentially affected by price and CoO depending on nationality. By studying the relationship between arousal and WTP, we find that during framing, pupil dilation is positively related to subsequent WTP, while during product evaluation; this relationship was negative. Taken together, our results demonstrate that branding effects can have both individual and dynamic effects that may depend on the recipient's background. Furthermore, our results suggest that framing is related to a dynamic response that is different for the framing and product evaluation time points. This provides hints for how framing effects can be studied and managed in both academic and commercial settings.
Original languageEnglish
JournalNeuroPsychoEconomics Conference Proceedings
Volume10
Pages (from-to)39
ISSN1861-8243
Publication statusPublished - 2014
EventThe 2014 NeuroPsychoEconomics Conference - Ludwig Maximilian University, München, Germany
Duration: 29 May 201430 May 2014
Conference number: 10
http://www.jnpe.org/front_content.php?idart=57

Conference

ConferenceThe 2014 NeuroPsychoEconomics Conference
Number10
LocationLudwig Maximilian University
CountryGermany
CityMünchen
Period29/05/201430/05/2014
Internet address

Cite this

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title = "What Counts Most?: How Price, Country of Origin and Nationality Dynamically Affect Consumer Preference",
abstract = "Framing is a well-established research method in neuroeconomics and consumer neuroscience. Framing effects of price, country of origin (CoO), and brands have all been demonstrated in many different conditions. However, our knowledge of framing effects woefully lacks any understanding of the relative strength of these effects, and how they may dynamically interact. To abate this problem, we conducted an experiment in which we recruited participants from three regions (Italy, France and rest of world), to undergo wine testing and rating of wine taste preference, and willingness to pay (WTP) while being exposed to the CoO and price of each wine. Unbeknownst to the participants, they all tasted the same wine. To provide a better understanding of the underlying mechanisms of the observed effects, emotional arousal was assessed using pupillometry. Using a linear regression model, our results demonstrate that price and CoO individually have a significant effect on the hedonic experience of wine (R² = 0.11, p<0.0001). Two-way interactions demonstrate that price has a differential effect on preference depending on CoO. Here, we also find that preference is highly correlated with subjects' WTP for the wine. Finally, we show that WTP is differentially affected by price and CoO depending on nationality. By studying the relationship between arousal and WTP, we find that during framing, pupil dilation is positively related to subsequent WTP, while during product evaluation; this relationship was negative. Taken together, our results demonstrate that branding effects can have both individual and dynamic effects that may depend on the recipient's background. Furthermore, our results suggest that framing is related to a dynamic response that is different for the framing and product evaluation time points. This provides hints for how framing effects can be studied and managed in both academic and commercial settings.",
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What Counts Most? How Price, Country of Origin and Nationality Dynamically Affect Consumer Preference . / Bagdziunaite, Dalia; Jensen, Anne Strande; Auning-Hansen, Julie; Clement, Jesper; Ramsøy, Thomas Z.

In: NeuroPsychoEconomics Conference Proceedings, Vol. 10, 2014, p. 39.

Research output: Contribution to journalConference abstract in journalResearchpeer-review

TY - ABST

T1 - What Counts Most?

T2 - How Price, Country of Origin and Nationality Dynamically Affect Consumer Preference

AU - Bagdziunaite, Dalia

AU - Jensen, Anne Strande

AU - Auning-Hansen, Julie

AU - Clement, Jesper

AU - Ramsøy, Thomas Z.

PY - 2014

Y1 - 2014

N2 - Framing is a well-established research method in neuroeconomics and consumer neuroscience. Framing effects of price, country of origin (CoO), and brands have all been demonstrated in many different conditions. However, our knowledge of framing effects woefully lacks any understanding of the relative strength of these effects, and how they may dynamically interact. To abate this problem, we conducted an experiment in which we recruited participants from three regions (Italy, France and rest of world), to undergo wine testing and rating of wine taste preference, and willingness to pay (WTP) while being exposed to the CoO and price of each wine. Unbeknownst to the participants, they all tasted the same wine. To provide a better understanding of the underlying mechanisms of the observed effects, emotional arousal was assessed using pupillometry. Using a linear regression model, our results demonstrate that price and CoO individually have a significant effect on the hedonic experience of wine (R² = 0.11, p<0.0001). Two-way interactions demonstrate that price has a differential effect on preference depending on CoO. Here, we also find that preference is highly correlated with subjects' WTP for the wine. Finally, we show that WTP is differentially affected by price and CoO depending on nationality. By studying the relationship between arousal and WTP, we find that during framing, pupil dilation is positively related to subsequent WTP, while during product evaluation; this relationship was negative. Taken together, our results demonstrate that branding effects can have both individual and dynamic effects that may depend on the recipient's background. Furthermore, our results suggest that framing is related to a dynamic response that is different for the framing and product evaluation time points. This provides hints for how framing effects can be studied and managed in both academic and commercial settings.

AB - Framing is a well-established research method in neuroeconomics and consumer neuroscience. Framing effects of price, country of origin (CoO), and brands have all been demonstrated in many different conditions. However, our knowledge of framing effects woefully lacks any understanding of the relative strength of these effects, and how they may dynamically interact. To abate this problem, we conducted an experiment in which we recruited participants from three regions (Italy, France and rest of world), to undergo wine testing and rating of wine taste preference, and willingness to pay (WTP) while being exposed to the CoO and price of each wine. Unbeknownst to the participants, they all tasted the same wine. To provide a better understanding of the underlying mechanisms of the observed effects, emotional arousal was assessed using pupillometry. Using a linear regression model, our results demonstrate that price and CoO individually have a significant effect on the hedonic experience of wine (R² = 0.11, p<0.0001). Two-way interactions demonstrate that price has a differential effect on preference depending on CoO. Here, we also find that preference is highly correlated with subjects' WTP for the wine. Finally, we show that WTP is differentially affected by price and CoO depending on nationality. By studying the relationship between arousal and WTP, we find that during framing, pupil dilation is positively related to subsequent WTP, while during product evaluation; this relationship was negative. Taken together, our results demonstrate that branding effects can have both individual and dynamic effects that may depend on the recipient's background. Furthermore, our results suggest that framing is related to a dynamic response that is different for the framing and product evaluation time points. This provides hints for how framing effects can be studied and managed in both academic and commercial settings.

M3 - Conference abstract in journal

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JO - NeuroPsychoEconomics Conference Proceedings

JF - NeuroPsychoEconomics Conference Proceedings

SN - 1861-8243

ER -