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"Consumer preferences"
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The Value of Multidimensional Rating Systems: Evidence from a Natural Experiment and Randomized Experiments
2018
Online product ratings offer information on product quality. Scholars have recently proposed the potential of designing multidimensional rating systems to better convey information on multiple dimensions of products. This study investigates whether and how multidimensional rating systems affect consumer satisfaction (measured by product ratings), based on both observational data and two randomized experiments. Our identification strategy of the observational study hinges on a natural experiment on TripAdvisor when the website started to allow consumers to rate multiple dimensions of the restaurants, as opposed to only providing an overall rating, in January 2009. We further obtain rating data on the same set of restaurants from Yelp, which controls for the unobserved restaurant quality over time and allows us to identify the causal effect using a difference-in-differences approach. Results from the econometric analyses show that ratings in a single-dimensional rating system have a downward trend and a higher dispersion, whereas ratings in a multidimensional rating system are significantly higher and convergent. Findings from two randomized experiments suggest that the multidimensional rating system helps consumers find products that better fit their preferences and increases the confidence of their choices. We also show that the observed results cannot be explained by the priming effect due to rating system interface or a list of other alternative explanations. The combined evidence from the natural experiment and randomized experiments support the view that the multidimensional rating system enhances rating informativeness and provide implications for designing online rating systems that help consumers match their preferences with product attributes.
Data and the online appendix are available at
https://doi.org/10.1287/mnsc.2017.2852
.
This paper was accepted by Anandhi Bharadwaj, information systems.
Journal Article
Influence of consumer preference and government subsidy on prefabricated building developer’s decision-making: a three-stage game model
2023
Consumer preference and government subsidies are two of the key influencing factors in the decision-making of building developers, which plays a leading role in the development of prefabricated building market. However, the majority of the existing efforts only used empirical research methods to identify the barriers of prefabricated construction, and failed to quantitatively study the interaction mechanism, process, and trends among the influencing factors. To address this knowledge gap, this study aims to analyze and quantify the dynamic and interactive relationships among the three major stakeholders in the prefabricated building industry – the government, building developers, and consumers. A three-stage game model was developed, and an analysis of two numerical simulations was conducted. The results provided equilibrium solutions for the optimal selling price and optimal assembly rate for the building developers, as well as the optimal minimum assembly rate for government subsidy. This study provides a better understanding of the interactive behaviors among the major stakeholders, and offers meaningful insights for policy design and strategic planning for promoting the development of prefabricated buildings.
Journal Article
Supply chain carbon emission reductions and coordination when consumers have a strong preference for low-carbon products
by
Anwar, Sajid
,
Liu, Mei-lian
,
Li, Zong-huo
in
Aquatic Pollution
,
Atmospheric Protection/Air Quality Control/Air Pollution
,
Carbon
2021
Owing to the rising concerns about environmental degradation worldwide, firms in several developed and developing countries are pursuing carbon emission reduction targets. In addition, in recent years, there is evidence of a shift in consumer preferences in favour of low-carbon products. Using a theoretical model, where the shift in consumer preferences is explicitly incorporated, we evaluate the impact of carbon emission reduction cost-sharing on supply chain profit. In our model, consumers are willing to pay a higher price for low-carbon products and hence the retailer considers sharing the cost of carbon emission reduction with the manufacturer. Our model also includes a carbon trading mechanism. We identify a range of carbon emission reduction cost-sharing such that both supply chain enterprises are better-off. We find that, while achieving the aim of carbon emission reduction, consumer preference for low-carbon products can benefit both supply chain enterprises. Numerical simulations show that carbon emission reduction cost-sharing increases the retailer’s order quantity as well as the profit and hence there is an incentive for the two supply chain enterprises to cooperate.
Journal Article
Impact of consumer preference on the decision-making of prefabricated building developers
2022
Customers’ preferences for prefabricated building or conventional cast-in-situ building directly affect the decision-making process for strategic selection of building developers. This study utilizes a Hotelling model integrating game theory, including the market share function, product price function, and profit function of duopoly building developers to contribute a new approach to assist decision makers in their selection of developers for their projects. By analyzing different strategy combinations and the income matrix, we obtained the strategy combinations of duopoly building developers and the income matrix strategies, market share, optimal price and maximum profit. Managerial implications were discussed for government and building developers. Finally, we presented the research contribution as well as future research direction.
Journal Article
Consumers’ Preferences and Attitudes towards Plant-Based Milk
2023
Plant-based milk (PBM) has become increasingly popular due to its environmental sustainability, health benefits, ingredient abundance, and unique taste. This study aims to identify the main factors that affect consumer preferences and attitudes towards PBM, and to examine the effect of consumer attitudes including environmental awareness, health consciousness, and food neophobia on WTP. We use the double-bounded dichotomy choice (DBDC) method to calculate consumers’ willingness to pay (WTP) for PBM. We find that the appearance, taste, nutritional value, and environmental benefits of PBM significantly increase consumers’ WTP for it. Consumers with high environmental awareness are more likely to perceive PBM as environmentally friendly and are willing to pay a higher price for it. Consumers with high health consciousness tend to value the environmental benefits of PBM and prioritize purchase convenience, as it aligns with their health-conscious lifestyle, leading to a higher WTP for PBM. The results of our study can help design effective strategies to market plant-based milk and develop sustainable and healthy food systems.
Journal Article
Does Allulose Appeal to Consumers? Results from a Discrete Choice Experiment in Germany
by
Schulze, Maureen
,
Spiller, Achim
,
Haarhoff, Theresa
in
Calories
,
Chemical properties
,
Consumer preferences
2022
Reducing the sugar content in food is an important goal in many countries in order to counteract obesity and unhealthy eating. Currently, many consumers eat a number of foods with too much sugar content. However, mankind has an innate preference for sweet foods, and thus one strategy is to have food products which taste sweet but consist of a reduced calorie and sugar content. Allulose is a rare monosaccharide and is considered a safe ingredient in foods, for example in the US, Japan, Singapore, and Mexico, while in Europe, it is in the approval process as a novel food. Thus, it is relevant to find out how consumers perceive the different attributes of allulose in comparison to other sweeteners. Therefore, an online survey consisting of a choice experiment was conducted in Germany to find out consumer preferences of sweeteners. The survey data were analyzed using a mixed logit model. The results reveal that taste is the most important attribute for sweeteners, which explains about 40% of the choice. In the attribute level, a typical sugar taste is preferred. As allulose has a typical sugar taste, the likelihood that it appeals to consumers is high. The second most important attribute is the base product.
Journal Article
Information Sharing with Uncertain Consumer Preferences for Store Brands
2025
Information asymmetry between manufacturers and online retailers regarding consumer preferences for store brands profoundly influences operational strategy. By leveraging information technology, online retailers can collect valuable consumer data, creating a strategic dilemma: whether to share this information with manufacturers and, if so, with which manufacturer (national or third-party). This study aims to explore an online retailer’s strategic decisions regarding sharing information with manufacturers, filling a gap in the literature on store brands and consumer preferences. Using game theory, we analyze the interactions among an online retailer, a national manufacturer, and a third-party manufacturer, incorporating the Hotelling model to capture consumer preference and product differentiation. Our findings reveal that information sharing does not consistently benefit the online retailer or manufacturers. Notably, without side payment, the online retailer is unwilling to share information with either manufacturer, and manufacturers do not always gain more from receiving such information—a result that challenges conventional wisdom. However, when side payment is introduced, the online retailer’s willingness to share information depends on key factors: the probability of low brand loyalty (low-type) consumers, the proportion of comparison shoppers, the side payment, and the degree of information uncertainty. These findings provide innovative insights for operations managers, highlighting the critical role of information management in shaping strategic decisions and enhancing the efficacy and financial outcomes of information sharing in the context of store brands.
Journal Article
Traceability Decisions and Coordination Contracts in Agricultural Supply Chains Under Different Power Structures
2025
Recent frequent food safety incidents have heightened consumer concern about agricultural product traceability, driving companies to build more robust supply chain traceability systems. However, enhancing traceability level is not only driven by consumer preferences but is also profoundly shaped by supply chain power structures and coordination mechanisms. In this study, we investigate how consumer preferences, power structures, and contractual mechanisms jointly shape traceability investment and coordination in agricultural supply chains. Using a two-tier supplier–retailer game-theoretic model, we compare traceability levels, pricing, and profit allocation under three governance structures: vertical Nash, supplier-led, and retailer-led. We also evaluate the effectiveness of cost-sharing and revenue-sharing contracts. The results reveal several key insights. First, consumer preference for traceable products serves as a critical market-driven force that enhances traceability investment across supply chain tiers. Second, power structures fundamentally determine traceability outcomes through threshold-dependent mechanisms: when consumer preference is weak, vertical Nash structures yield superior traceability via balanced cost-sharing; however, once preference intensity surpasses critical thresholds, retailer-led structures dominate in responsiveness, profit distribution, and capability building. In contrast, supplier-led structures deliver the weakest outcomes, as concentrated cost burdens suppress investment incentives, particularly in supply chains composed of small and medium-sized suppliers. Third, coordination contracts exhibit structure-specific efficacy. Cost-sharing contracts achieve full optimization in vertical Nash contexts and yield Pareto improvements in supplier-led chains, whereas traditional contracts exert minimal influence in retailer-led settings. These findings enrich our theoretical understanding of traceability governance and provide practical guidance for differentiated traceability design and contract formulation.
Journal Article
Consumer Acceptance and Preference for Olive Oil Attributes—A Review
by
Bimbo, Francesco
,
Corallo, Angelo
,
Latino, Maria Elena
in
Attitudes
,
Color
,
consumer behavior
2022
Olive oil is largely produced in southern European countries. It encompasses a mix of search (e.g., price, color, packaging features), experience (e.g., taste), and credence attributes (e.g., organic, health claim). The importance of these attributes on consumers’ attitudes and preferences for Olive oil has been explored quite extensively in the past. However, a recent body of literature has focused on product nutritional information and health claims in shaping consumers’ attitudes and preferences for Olive oil. This work aims to offer an updated review of consumers’ acceptance and preferences for Olive oil features. Applying the Systematic Literature Review method, a sample of 47 studies published over the last 20 years was reviewed through descriptive and content analysis. The following attributes, grouped in search, experience, and credence categories, were discussed: origin, sustainability, brand, health and safety, the production process, packaging, color, taste and flavor, and product features. The discussion of marketing and research implications closes the study. The study provides an overview of the literature background of consumer behaviors of Olive Oil, investigating the recent literature focused on product nutritional information and health claims.
Journal Article