Does provide additional categorical information generate negative utility?

Last registered on August 10, 2023
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Pre-Trial

Trial Information

General Information

Title
Does provide additional categorical information generate negative utility?
RCT ID
AEARCTR-0011875
Initial registration date
August 04, 2023

Initial registration date is when the trial was registered.

It corresponds to when the registration was submitted to the Registry to be reviewed for publication.

First published
August 10, 2023, 1:27 PM EDT

First published corresponds to when the trial was first made public on the Registry after being reviewed.

Locations

Country
Canada
Region

Primary Investigator

Name
Siyu Wang
Affiliation
Wichita State University
Contact Primary Investigator

Other Primary Investigator(s)

PI Name
Tongzhe Li
PI Affiliation
University of Guelph
Contact Investigator

Additional Trial Information

Status
In development
Start date
2023-08-04
End date
2024-05-31
Keywords
Agriculture, Behavior, Environment & Energy
Additional Keywords
Product labeling, framed field experiments, Information
JEL code(s)
D12, L15, O13
Secondary IDs
Prior work
This trial is based on or builds upon one or more prior RCTs.
Abstract
This project investigates whether providing additional categorical information generates negative or positive utility for consumers or people in general. The authors plan to survey the data and content of a few existing studies to understand this research question. Specially, we compare the behavior when the different labels are provided versus when no label is provided.

The (dis)utility people perceive when additional information is provided is of interest to policymakers, product managers, grocery stores, and the scientific community. For example, if people would rather not know whether a product is locally produced or not, this provides strong policy implications. This study precisely investigates the labeling disutility in various environments.
External Link(s)

Registration Citation

Citation
Li, Tongzhe and Siyu Wang. 2023. "Does provide additional categorical information generate negative utility? ." AEA RCT Registry. August 10. https://doi.org/10.1257/rct.11875-1.0
Sponsors & Partners
Experimental Details

Interventions

Intervention(s)
The authors will visit the datasets from the projects and compare the behavior when various labeling of products or categories are provided to when the labeling was not provided.
Intervention Start Date
2023-08-04
Intervention End Date
2024-05-31

Primary Outcomes

Primary Outcomes (end points)
Participant's amount of offer in various experimental treatments and contexts
Primary Outcomes (explanation)

Secondary Outcomes

Secondary Outcomes (end points)
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
This study utilizes a combination of unique datasets collected from field experiments. For example, we would like to explore participant's offers for a set of homogeneous commodities with different labeling. On average, we expect that individuals have a lower WTP for goods with labels compared to goods without labels. Our hypothesis is based on the idea that this discrepancy is a result of the disutility derived from categorization. Although individuals may desire to purchase certain products to uphold a positive social image, they are reluctant to bear the associated costs. Therefore, the scenario is more user-friendly when products are presented without labels.
Experimental Design Details
This study utilizes a combination of unique datasets collected from field experiments. For example, we would like to investigate consumer willingness to pay (WTP) for a set of homogeneous commodities with different labeling, utilizing a unique combination of datasets collected from field experiments. The main focus is to understand how the presence of labels influences individuals' WTP for goods.

On average, we anticipate that individuals may exhibit a lower WTP for goods with labels compared to those without labels. Our hypothesis stems from the concept of disutility derived from categorization. While consumers may have a desire to purchase certain products to maintain a positive social image or adhere to certain societal norms, they may be hesitant to pay the associated costs that come with labeled products. This disutility, resulting from the perceived categorization or social signaling aspects of labeled goods, may lead to a reduced willingness to pay.

The presence of labels can introduce various psychological and behavioral factors that influence consumer choices. The act of labeling a product can create perceived differences and expectations, affecting consumers' perceptions of value. Additionally, individuals might be motivated to make purchase decisions based on social pressures or conformity when dealing with labeled products, which could lead to altered WTP compared to goods without labels.

Through carefully designed field experiments, we aim to shed light on the underlying mechanisms of consumer decision-making regarding labeled goods. By comparing WTP for products with and without labels, we seek to gain insights into how individuals perceive the utility and value of commodities under different labeling conditions.

Understanding consumer behavior and WTP in the context of labeling is not only of theoretical interest but also carries practical implications. For businesses and marketers, these findings can be valuable in crafting pricing and marketing strategies that align with consumers' preferences and behavior. By identifying the factors that influence consumer choices when confronted with labeled goods, businesses can tailor their product offerings and pricing structures to better cater to consumers' needs and expectations.

The methodology of field experiments allows us to observe real-world consumer behavior in a natural setting, avoiding potential biases that could arise in controlled laboratory settings. By collecting data from actual consumers making real purchase decisions, we aim to ensure the external validity and applicability of our findings to real-world scenarios.

In conclusion, this study seeks to deepen our understanding of how the presence of labels influences consumer WTP for homogeneous commodities. By exploring the role of disutility derived from categorization and the impact of social signaling, we hope to contribute valuable insights to the field of consumer behavior and pricing strategies. Through this research, we aim to provide practical implications for businesses looking to optimize their product offerings and marketing strategies in an increasingly competitive market landscape.
Randomization Method
Randomization done by computer in the field.
Randomization Unit
Individual
Was the treatment clustered?
No

Experiment Characteristics

Sample size: planned number of clusters
50+ individuals in each treatment
Sample size: planned number of observations
1000+ individuals
Sample size (or number of clusters) by treatment arms
50+ individuals
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
Supporting Documents and Materials
IRB

Institutional Review Boards (IRBs)

IRB Name
University of Windsor
IRB Approval Date
2017-10-01
IRB Approval Number
REB.MA.R.10.01.2017.
Analysis Plan

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Post-Trial

Post Trial Information

Study Withdrawal

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Intervention

Is the intervention completed?
No
Data Collection Complete
Data Publication

Data Publication

Is public data available?
No

Program Files

Program Files
Reports, Papers & Other Materials

Relevant Paper(s)

Reports & Other Materials