Monthly Archives: February 2025

UTEP Study Reveals Dust Storms and Wind Erosion Result in $154 Billion Annual Damages

While the annoyance of a dusty, windy day might only seem to extend to spoiling your car wash and leaving dirt scattered throughout your home, a new study published in the journal Nature Sustainability by researchers from The University of Texas at El Paso (UTEP), George Mason University, and the U.S. Department of Agriculture suggests far more severe implications. According to their findings, the societal costs of wind erosion and blowing dust are astronomical, estimated at approximately $154 billion annually across the United States, transcending mere inconvenience to pose a significant economic burden.

Dr. Thomas Gill, a professor of earth, environmental, and resource sciences at UTEP and co-author of the study, emphasized the surprising impact of such seemingly minor natural phenomena. “The figures might be startling,” he remarked, “but they underscore the extensive societal and economic damages inflicted by dust. It’s a clear signal that we cannot ignore the broader implications of dust storms.” This study positions the economic impacts of dust events on equal footing with major natural disasters like hurricanes, underscoring the critical need for effective dust mitigation strategies.

Despite wind erosion being a natural process, Gill pointed out that human activities, land use changes, ongoing droughts, and diminishing water resources have intensified its effects, making the U.S. increasingly vulnerable to dust-related issues. The study meticulously calculated the economic toll of wind erosion across various sectors, including healthcare, transportation, agriculture, renewable energy, and residential areas, concluding that the $154 billion figure might even be an underestimation.

Irene Feng, the study’s lead author and a doctoral student from George Mason University, explained that the 2017 data provided a reliable baseline for their analysis, which accounted for inflation and offered a timely overview of the economic impacts. “Our findings not only highlight the severe financial consequences but also offer a pivotal foundation for enhancing data collection and understanding the full scope of wind erosion’s effects,” Feng stated.

The study detailed how dust storms contribute to serious health issues in the healthcare sector by dispersing ultra-fine particles that can exacerbate respiratory conditions like asthma and bronchitis. Focusing specifically on Valley Fever, a fungal infection prevalent in the U.S. Southwest, the study estimated its annual medical costs at about $2.7 billion, not accounting for additional economic losses such as reduced productivity due to illness.

The transportation industry also suffers considerably, with dust storms causing visibility issues that lead to accidents and fatalities. In 2017 alone, these incidents had a financial impact of at least $250 million. The agricultural sector faces losses exceeding $10 billion due to reduced soil quality affecting crop yields. In contrast, the renewable energy sector loses efficiency in solar and wind operations due to dust accumulation, costing about $4 billion annually.

Residential impacts are also significant, with $40 billion in damages reported in 2017 due to dust infiltrating homes and affecting landscaping. Given the increasing frequency and intensity of dust storms since the 1990s, this figure is expected to rise.

The researchers advocate for robust dust mitigation measures, such as adopting conservation agricultural practices like reduced or no-till farming. These techniques stabilize the soil, retain nutrients, and prevent erosion, potentially offering substantial economic benefits. Dr. Gill drew parallels to the 1930s Dust Bowl, a catastrophic event driven by poor land management and severe drought, as a historical warning of the potential consequences of inadequate responses to environmental challenges.

This study quantifies the extensive financial repercussions of dust storms and wind erosion and highlights the importance of strategic interventions to mitigate these impacts. As dust-related challenges grow in scale and severity, the urgency for comprehensive and sustainable solutions becomes ever more apparent, underscoring the need for immediate action to safeguard both the environment and the economy.

More information: Irene Feng et al, Economic costs of wind erosion in the United States, Nature Sustainability. DOI: 10.1038/s41893-024-01506-4

Journal information: Nature Sustainability Provided by University of Texas at El Paso

Proposals to Amend Food VAT for Promoting Healthier and More Sustainable Eating Habits

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A recent study spearheaded by researchers from UCL suggests that reforming Value Added Tax (VAT) rates based on health and environmental considerations could significantly encourage healthier and more sustainable diets. Published in Nature Food, the research involved a comprehensive analysis of VAT rates applicable to various food items within the UK and the European Union (EU). By integrating economic, environmental, and health assessments, the researchers estimated the potential impacts of modifying these tax rates.

Professor Marco Springmann, the lead author from the UCL Institute for Global Health and the University of Oxford, highlighted the inadequacy of current tax systems in the EU and the UK in addressing the pressing health and environmental challenges posed by the food system. He advocated for a modernised tax framework that could function as a no-loss policy while offering benefits for public health, environmental conservation, and government revenue streams.

In the existing tax structure of the UK, staple foodstuffs such as raw meats, fish, vegetables, fruits, cereals, nuts, and pulses are exempt from VAT (rated at 0%). The study proposes maintaining this zero rating for fruits and vegetables but suggests increasing VAT on meat and dairy products to the full rate of 20%. Such a change is expected to reduce these products’ consumption, promoting healthier eating habits. Specifically, the study projects reduced meat and dairy consumption by one serving per week in EU countries and by two servings per week in the UK.

The implications of reduced meat and dairy intake are significant, with potential reductions in diet-related diseases such as heart disease, stroke, cancer, and diabetes. The researchers estimate that these dietary changes could prevent approximately 170,000 deaths across the UK and EU combined, with over 2,000 deaths averted in the UK alone due to decreased meat and dairy consumption.

Moreover, the environmental benefits of such dietary shifts are notable. Decreased demand and production of beef and milk would lead to substantial reductions in climate-warming gases—equivalent to the combined emissions of Scotland and Northern Ireland. In the UK alone, the emission reductions would be comparable to half of London’s emissions. The study also anticipates a significant decrease in the demand for agricultural land, equivalent to the area between the Republic of Ireland and Scotland, including a freeing up of land the size of Wales within the UK and a reduction in water pollution by ten per cent.

From an economic perspective, the researchers found that the proposed changes would preserve affordability for consumers—who are likely to substitute higher-priced meats and dairy with more cost-effective fruits and vegetables—and generate increased government revenues. They estimate that the tax shift could yield an additional £36 billion in tax receipts, corresponding to 0.2% of GDP, with a 0.6% increase in GDP contributions from the UK.

Professor Springmann emphasised the implications of setting VAT rates with health and environmental considerations. Such a strategy could significantly impact public health and ecological sustainability and bolster economic growth by generating additional government revenue. This points to a need for a thoughtful reassessment of food tax policies in the UK and across Europe, suggesting that well-considered fiscal measures can lead to substantial societal benefits.

More information: Marco Springmann et al, A reform of value-added taxes on foods can have health, environmental and economic benefits in Europe, Nature Food. DOI: 10.1038/s43016-024-01097-5

Journal information: Nature Food Provided by University College London

Perceptions of Neighbourhoods and Their Impact on Rental Prices: An Innovative Analytical Method

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Rental prices are typically influenced by tangible factors such as the age of the building, available amenities, and location. However, not all properties with similar physical attributes command the same rent. The subjective perceptions of a neighbourhood also play a crucial role.

A team from Osaka Metropolitan University has honed a technique that accounts for these perceptual variables, achieving nearly 75% accuracy in predicting housing prices within Osaka City.

Xiaorui Wang, a student at the Graduate School of Human Life and Ecology, and Professor Daisuke Matsushita spearheaded this initiative. They leveraged existing property datasets from Osaka City, enhancing them with additional data concerning physical aspects of street-level images (such as the sky, vegetation, and architecture). Furthermore, they assessed the streetscape based on various impressions — safety, beauty, depression, liveliness, wealth, and boredom — using machine learning techniques.

Their methodology successfully predicted rental prices with an accuracy of 73.92%. Notably, the perceptions of the neighbourhood emerged as a significant factor, ranking just below the building’s age, its floor area, and its proximity to the central business district in terms of influence on rental pricing.

More information: Xiaorui Wang et al, Explaining housing rents: A neural network approach to landscape image perceptions, Habitat International. DOI: 10.1016/j.habitatint.2024.103250

Journal information: Habitat International Provided by Osaka Metropolitan University

Research Reveals Consumer Acceptance of Smoke-Tainted Wines, Unveiling Potential Market Prospects

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A recent study has revealed that specific consumer segments are receptive to wines affected by smoke, presenting potential market opportunities for winemakers grappling with the ongoing challenge of wildfire smoke’s impact on grapes. In collaboration with counterparts in New Zealand, researchers from Oregon State University discovered that consumers who enjoy smoky flavours in their food and drinks are more likely to appreciate wines influenced by smoke. The study also highlighted the significant role that labelling can play in modulating consumer acceptance of these wines.

Elizabeth Tomasino, a professor of enology at Oregon State University, emphasised the importance of these findings for the wine industry. She pointed out that for a niche group of wine consumers, there exists a viable market for wines that have been impacted by smoke. This insight is crucial for winemakers increasingly facing the repercussions of more enormous and more frequent wildfires around the globe. For instance, the economic toll of the wildfires on the West Coast of the United States in 2020 was estimated to be as high as $3.7 billion.

In response to the escalating impact of wildfires, a team of scientists from Oregon State was awarded a $7.65 million grant from the U.S. Department of Agriculture further to investigate the effects of smoke on wine quality. This team has since identified specific compounds that contribute to the smoky characteristics in grapes and has developed innovative spray-on coatings for grapes that help prevent undesirable flavours in wines caused by wildfire smoke.

The latest findings from this research were published in the journal Food Research International, which delved into consumer attitudes towards smoke-impacted wines. This subject has not been extensively explored previously. Tomasino and doctoral student Jenna Fryer shipped smoke-impacted and standard wines made from Oregon pinot noir grapes to New Zealand to conduct this study. There, they collaborated with Amanda Dupas de Matos and Joanne Hort at Massey University to study the reactions of 197 participants who were not accustomed to wines affected by wildfire smoke.

This New Zealand study revealed two distinct consumer groups: one that appreciated the smoke-impacted wine (110 participants) and another that did not favour it (87 participants). Introducing specific labels that referred to the wildfires increased the acceptance of smoke-impacted wines among those who initially disliked them, enhancing their average liking scores significantly.

The researchers concluded that winemakers have several strategies to market smoke-impacted wines effectively. These include blending smoke-affected wines with unaffected varieties to mitigate the smoky flavour and employing targeted marketing strategies to appeal to consumers inclined towards smoky notes. Tomasino noted that the study’s findings suggest winemakers might be underestimating consumer tolerance for smoky wines, indicating more flexibility in marketing and production strategies than previously considered. This groundbreaking research opens up new avenues for winemakers to adapt to the evolving challenges posed by climate change and wildfires, potentially transforming a crisis into an opportunity for innovation and market expansion.

More information: Jenna Fryer et al, Consumer responses to smoke-impacted pinot noir wine and the influence of label concepts on perception, Food Research International. DOI: 10.1016/j.foodres.2025.115881

Journal information: Food Research International Provided by Oregon State University

Recent Studies Aid Luxury Companies in Combating the Allure of Fake Products

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Enthusiasts of upscale fashion and luxury items often prioritise distinguishing between authentic and counterfeit products. However, the question remains: Does their perceived expertise influence their likelihood of engaging with counterfeit items? This query is paramount to marketing managers in the luxury sector, battling against the proliferation of counterfeit goods—a market projected to balloon to a staggering $1.79 trillion by the decade’s end.

“Lots of consumers recognise the ethical problems associated with counterfeits, yet continue to buy them despite knowing it’s wrong,” commented Ludovica Cesareo, an assistant professor of marketing at the Lehigh University College of Business. Understanding how an individual’s self-perceived knowledge about luxury items impacts their ethical stance on counterfeits could provide valuable insights for developing effective strategies to address this persistent issue. Cesareo, alongside her colleague Silvia Bellezza from Columbia University, delved into this topic in their recent research published in the Journal of the Association for Consumer Research.

The study posits that the luxury market thrives on consumer beliefs about the products’ quality, craftsmanship, and heritage. The researchers theorised that individuals with extensive “subjective knowledge”—how knowledgeable they perceive themselves in this field—would be less attracted to counterfeit goods. Conversely, those with limited knowledge might find such products more appealing. A series of four experiments that assessed participants’ subjective knowledge and attitudes towards counterfeits revealed that individuals with lesser knowledge were more prone to gravitate towards counterfeit goods.

“Those who are not particularly well-versed in high-end fashion and luxury goods tend to prefer counterfeits more than their more fashion-savvy counterparts and are likelier to promote the original brand on social media,” Cesareo explained. She attributed this tendency to the lesser-known consumers’ greater capacity to disconnect from ethical considerations concerning counterfeits. Individuals often resort to “moral disengagement” to justify actions they know are unethical. This psychological mechanism includes tactics such as ethical rationalisation, spreading responsibility, or minimising the repercussions.

According to Cesareo, consumers with limited knowledge may not fully grasp the origins of the items but remain attracted to the aesthetic and status associated with luxury brands and the social prestige they confer on platforms like Instagram and Facebook. In contrast, those with a profound understanding of luxury goods’ origins, processes, and details tend to maintain consistent ethical views regarding counterfeits. For low-knowledge individuals, it is easier to justify counterfeit purchases. Their rationalisations might range from beliefs that “everyone does it,” that major brands suffer no harm from these lower-market practices, or that their counterfeit purchase is merely “temporary,” until they can afford the real thing.

“Low-knowledge consumers not only overlook the moral aspects of counterfeits but also perceive a greater cost-benefit in purchasing them compared to those with more knowledge,” said Cesareo. The study also found that individuals with limited knowledge could be more readily swayed by messages about the relative morality of purchasing counterfeits. To enhance the robustness of their conclusions, the researchers interviewed leaders in anti-counterfeiting from prestigious luxury brands like Louis Vuitton, Moët Hennessy, Ralph Lauren, and Moncler.

“These managers confirmed that most of their clientele lacks deep knowledge about fashion and luxury goods, are primarily drawn by the brands’ prestige, and do not truly appreciate the brands’ historical, heritage, and craftsmanship nuances,” the researchers noted. The advice to anti-counterfeiting managers is clear: In markets dominated by low-knowledge consumers, efforts should focus on shifting perceptions about the immorality and illegality of buying counterfeits through educational initiatives. This could involve targeted advertising and communication campaigns by governments and other agencies. Conversely, in markets where consumers are more knowledgeable, there should be a push to further enhance their understanding through more informative advertising and communication highlighting the brand’s symbolic imagery and ephemeral qualities and educating about its history and craftsmanship. “Understanding how to tailor anti-counterfeiting strategies based on the knowledge level of the target market is crucial for marketers and brand managers,” Cesareo concluded.

More information: Ludovica Cesareo et al, Knowledge, Morality, and the Appeal of Counterfeit Luxury Goods, Journal of the Association for Consumer Research. DOI: 10.1086/733111

Journal information: Journal of the Association for Consumer Research Provided by Lehigh University

Trump’s 2024 Election Win: A Mixed Blessing for the US Stock Market

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The financial markets’ response to Donald Trump’s re-election extends beyond his mere return to the White House, reflecting more profound uncertainties tied to his leadership style. Recent research from the University of Surrey suggests a critical strategy for investors involves diversifying portfolios to mitigate risks associated with political turbulence and potential market fluctuations. According to this study, published in Economics Letters, there was an initial surge in stock prices following Trump’s election victory, a typical market reaction fueled by optimism over his business-friendly policies. However, this buoyancy was quickly tempered by investor worries about potential trade conflicts and international tensions, highlighting the complex interplay between politics and market dynamics.

The research involved a collaborative effort among scholars from various institutions, including the University of Surrey, Macquarie University in Australia, The Memorial University of Newfoundland in Canada, and the Paris School of Business. They used an event study methodology to analyze the impact of Trump’s 2024 election win on the stock market, focusing on the performance of over 1,500 companies listed on the Standard & Poor’s 1500 index. The data revealed significant abnormal returns around the election date, with notable effects on smaller companies and specific sectors like energy, which were anticipated to benefit from regulatory changes under the new administration.

Dr Shaker Ahmed, the study’s lead researcher and a Lecturer in Finance at the University of Surrey, discussed the dual impact of Trump’s presidency on market sentiments. He highlighted that while general optimism about the pro-business agenda Trump is expected to follow, there’s also considerable anxiety about the geopolitical unrest that could ensue, potentially leading to market volatility. This reflects the market’s wrestling with two contrasting expectations: the “Hope Hypothesis,” which foresees a boost in business climates, and the “Fear Hypothesis,” which warns of disruptions from trade tensions and policy unpredictability.

Concluding the discussion, Dr Ahmed emphasized the importance of understanding the full spectrum of political and economic implications of such political events for investors. He advised that grasping these dynamics is crucial for developing sound investment strategies, particularly during significant political changes. This perspective underscores the need for investors to remain vigilant and adapt to the evolving economic landscape, balancing their portfolios to align with immediate opportunities and long-term risks.

More information: Shaker Ahmed et al, The comeback effect: Market responses to Trump’s 2024 election victory, Economics Letters. DOI: 10.1016/j.econlet.2025.112170

Journal information: Economics Letters Provided by University of Surrey

Deceive Yourself: How Individuals Subconsciously Bend Rules to Boost Their Intelligence and Well-being

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“Fool me once, shame on you; fool myself, and I might end up feeling more intelligent,” says a new study led by Sara Dommer, an assistant professor of marketing at Penn State. Dommer explored why individuals might cheat on tasks like completing crossword puzzles or using apps like Wordle and tracking calories, especially when the only rewards are intrinsic, such as feeling brighter or healthier. She discovered that when cheating provides a chance to enhance self-perception, individuals engage in what she terms ‘diagnostic self-deception’. This involves cheating while deceiving themselves into believing their improved performance is due to their abilities rather than the dishonest act. Her research has been published in the Journal of the Association for Consumer Research.

According to Dommer, “People do cheat when there are no extrinsic incentives like money or prizes. However, the intrinsic rewards, such as feeling better about oneself, drive this behaviour. For the self-deception to be effective, I must convince myself that I am not actually cheating, which in turn allows me to feel smarter, more accomplished, or healthier.”

Dommer’s investigation involved four studies to determine if people would cheat when the rewards are solely intrinsic and to understand what fuels the sense of achievement despite the cheating. In the first study, 288 undergraduate students were given menu details for three days’ worth of meals and tasked with entering calorie information into a food-tracking app. The students were divided into two groups: one received additional calorie details with their meal descriptions, while the other did not.

The app provided five potential calorie counts for each item entered, and the group without specific calorie details tended to enter lower calorie counts than those supplied with detailed information. This indicated that people might cheat to gain intrinsic benefits—feeling healthier.

In a second study, 195 participants from Amazon Mechanical Turk were split into a control group and a cheat group and asked to complete a 10-question multiple-choice IQ test. The cheat group was informed that correct answers would be highlighted, allowing them to track their performance. They were then asked to enter their scores post-test while the control group estimated theirs. Despite the assistance, the cheating group not only reported higher scores but also overestimated their abilities on a subsequent test without the possibility of cheating, indicating a belief in their enhanced intelligence that wasn’t matched by their actual performance.

The third study replicated the second but used a task where participants unscrambled words. The correct answers were revealed after three minutes, and those in the cheating group reported more success in unscrambling the words than the control group. They were likelier to attribute this performance to their intelligence and consider the task a legitimate intelligence test.

The final study focused on financial literacy, where 231 participants took a test under controlled conditions, with some informed about the generally poor performance on financial literacy among American adults. Dommer found that introducing doubts about their abilities led participants to seek more accurate assessments, thus reducing cheating.

Dommer argues that our understanding of cheating needs to expand beyond the view of it as a deliberate, conscious act. She believes that cheating can occur without full awareness, driven by the desire to maintain positive self-illusions. While these illusions may offer temporary boosts to self-esteem, they can be harmful, particularly when assessing one’s financial or physical health, as they may lead to the underuse of helpful products and services. She stresses the importance of recognising these deceptive practices and striving for more accurate self-evaluations to prevent potential harm.

More information: Sara Loughran Dommer, Acting Immorally to Self-Enhance: The Role of Diagnostic Self-Deception, Journal of the Association for Consumer Research. DOI: 10.1086/732915

Journal information: Journal of the Association for Consumer Research Provided by Penn State

Employment Rises with Oversight on Tax Incentives

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In 2019, a significant shift occurred in the economic strategy of Kansas and Missouri, states that share the bustling metropolis of Kansas City. For a decade, these neighbours had aggressively competed for business relocations through generous tax incentives, a rivalry that eventually amounted to a staggering expenditure of $350 million yet yielded a modest return of just 1,500 jobs. Recognising the inefficacy of their approach, they agreed to cease offering tax breaks aimed at enticing businesses to relocate across their mutual borders.

Lisa De Simone, a professor of accounting at Texas McCombs, points out that this scenario indicates a broader trend where business tax subsidies have increased threefold over the past thirty years. However, these financial incentives often fail to meet job creation promises. Despite these challenges, the outright elimination of subsidies has not been widely advocated. Instead, several states have pursued an alternative strategy to ensure these fiscal incentives yield tangible economic benefits. They have implemented disclosure laws that mandate reporting key details about the subsidies, such as the financial amounts and the number of jobs expected to be created. The rationale is that transparency fosters a commitment to fulfilment from companies and governmental bodies, holding each accountable.

In her recent study, De Simone reveals that disclosure laws can enhance local employment, albeit only specific laws prove effective. Specifically, she highlights the success of internal disclosure laws, which necessitate that state agencies responsible for granting tax breaks report these details to other state bodies. These laws not only increase job creation but also offer savings to taxpayers. Conversely, external disclosure laws that require the public release of subsidy details have minimal impact on employment levels.

The study, which also involved Rebecca Lester of Stanford University and Aneesh Raghunandan of Yale University, delved into data from the nonprofit Good Jobs First, covering 48,243 subsidies across 27 states from 2008 to 2015. The subsidies examined were generally smaller in scale, such as tax credits and grants, which are more prevalent and attract less media scrutiny than larger, multimillion-dollar deals.

By correlating these subsidies with employment data from the U.S. Bureau of Labor Statistics and the U.S. Census Bureau, the researchers assessed the effectiveness of internal disclosure laws. They discovered that states with such laws could reduce the subsidies required to generate employment, significantly lowering the cost per job created – a cumulative saving of $594 million nationwide. De Simone notes that with internal monitoring, the benefits derived from a single subsidy are comparable to those from two subsidies in states without such regulations.

Several factors contribute to the ineffectiveness of external disclosure laws. Governments may sidestep these laws by opting for other incentives that do not require disclosure or by providing outdated information, thus impeding effective public scrutiny. De Simone suggests concerns about potential backlash or more dubious motives, such as favouritism, might discourage transparency.

De Simone hopes her findings will catalyse public demand for more accurate and timely information on business tax subsidies. Improved monitoring could deter less committed companies from seeking subsidies merely on the promise of job creation and could lead to more efficient and effective use of taxpayer money. She believes better transparency could compel governments to improve their disclosure practices, potentially leading to more accountable and fruitful economic policies.

More information: Lisa De Simone et al, Tax Subsidy Disclosure and Local Economic Effects, Journal of Accounting Research. DOI: 10.1111/1475-679X.12591

Journal information: Journal of Accounting Research Provided by University of Texas at Austin

Health-Oriented Nutrition Labels May Deter Food Purchases

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Recent research by the University of Florida has revealed that food labels intended to guide Americans towards healthier dietary choices may inadvertently produce the opposite effect. This discovery is particularly significant as it emerges when the U.S. Food and Drug Administration (FDA) is considering the implementation of mandatory front-of-package food labels. This prospective regulation introduced by the FDA would involve labels that prominently display the amounts of saturated fat, sodium, and added sugars—each quantified as a percentage of the recommended daily intake and categorised into one of three levels: low, medium, or high.

The study, published in the journal Food Policy by researchers from the UF/IFAS, focused on labels that declare the product within as “healthy.” It was observed that these labels generally reduced the amount consumers were willing to pay for yoghurt unless the claim was substantiated by official FDA endorsement and an explanation of the criteria used by the agency to classify the food as healthy.

Jianhui “Jeffrey” Liu, a doctoral candidate in the UF/IFAS food and resource economics department and the study’s lead author, emphasised the importance of clarifying label meanings to consumers. Liu and his colleagues conducted experiments with 308 participants, who were shown various label designs on packages of strawberry Greek yoghurt and asked to state their willingness to pay. These designs included one with a ‘healthy’ label, one with a ‘great taste’ label, one that combined both labels and a control design without any labels. The findings were telling: compared to the control, the price consumers were prepared to pay dropped by 18% for yoghurts labelled as “healthy” and by 25% for those labelled as both “healthy” and having “great taste”. However, yoghurts with a “great taste” label did not significantly influence willingness to pay positively or negatively.

The results suggest that health labels trigger an assumption of compromised flavour and enjoyment. Liu noted, “Merely stating ‘healthy’ on a product might not suffice and could actually have adverse effects if consumers are uncertain about what makes the food healthy or if they presume the label implies a sacrifice in taste.”

Interestingly, the negative perception linked with the ‘healthy’ label was alleviated when it was accompanied by explanatory text stating, “The product you have just observed features a ‘healthy’ symbol. This label indicates that the product meets the FDA’s proposed criteria for being designated as ‘healthy,’ which specifically requires the product to be low in saturated fat, added sugar and sodium.”

The study further indicated that although consumers might be confused or sceptical about health claims, their trust in the credibility of authoritative sources can significantly influence their purchasing decisions.

Liu hopes that these insights will assist policymakers and industry professionals create more effective packaging labels that enable consumers to make more informed food choices. He believes this research supports a broader cultural shift towards healthier eating habits, which could enhance public health and lessen the impact of diet-related diseases nationwide. According to Liu, “This study has the potential to affect every consumer and food manufacturer in the country by laying the groundwork for more transparent, effective, and impactful public health interventions.”

More information: Jianhui Liu et al, Assessing consumers’ valuation for Front-of-Package ‘Health’ labeling under FDA guidelines, Food Policy. DOI: 10.1016/j.foodpol.2025.102804

Journal information: Food Policy Provided by University of Florida

Study Shows Hybrid Job Training Enhances Female Participation in Nepal

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Globally, the participation of women in the workforce is approximately 25% lower than that of men, frequently due to obstacles such as domestic duties and cultural norms. Although vocational training has the potential to broaden employment prospects, women often face difficulties in attending programmes that necessitate extended periods away from home. A pioneering study conducted by the University of Illinois Urbana-Champaign, in conjunction with an international research collaboration, has examined whether a hybrid distance learning model could enhance the accessibility of job training for rural women in Nepal.

The research team had been actively engaged in Nepal through their work with Heifer International, assessing various livestock transfer initiatives for many years. A significant challenge they aimed to address was increasing the number of animal healthcare providers in rural regions. Specifically, there was a keen interest in training rural women to deliver these services, as explained by Sarah Janzen, an associate professor in the Department of Agricultural and Consumer Economics at Illinois’s College of Agricultural, Consumer, and Environmental Sciences.

Community Animal Health Workers (CAHWs) provide essential veterinary services in these remote areas. To become a CAHW in Nepal, candidates must complete a government-certified training programme, which typically involves a 35-day residential course. Janzen highlighted that recruiting women for this training was difficult despite removing financial obstacles. The reluctance often stemmed from the women’s domestic responsibilities, which made it impractical for them to leave their homes for the duration of the training.

In response, the research team collaborated with Heifer International and the Nepalese government to devise a hybrid training scheme that minimises time spent away from home. This new format required participants to attend a training centre for a five-day orientation and a further ten-day practical module involving direct interaction with livestock. The remainder of the training was conducted remotely, with participants using tablets to access educational videos and interactive modules on various subjects, including animal breeding, anatomy, drug administration, disease diagnostics, castration, fodder production, and bookkeeping. Upon completion of the programme, participants were required to pass a comprehensive final examination to register as certified CAHWs with local authorities.

To evaluate the effectiveness of this new training approach, local livestock marketing cooperatives were asked to nominate women for the CAHW training programme. These nominees were randomly assigned to traditional in-person training or the new hybrid model. The demographic data showed that most women were around 27 years old, had completed ten years of schooling, and about 80% were married. Additionally, 97% owned livestock and 40% to 50% lived below the poverty line.

Janzen was enthusiastic about the potential of the hybrid training model, stating, “We developed this training programme to see if women are more inclined to participate when offered the opportunity to train remotely at home. The results were significantly positive. We observed that completion rates of training increased from 30% to 51% through distance learning.”

The study also found that the knowledge and skills of women trained under the hybrid model were comparable to those who underwent traditional training, with no significant differences in job performance. Janzen acknowledged that additional barriers, such as cultural norms and expectations, could inhibit participation. The research specifically focused on whether the necessity to leave home for an extended period impacted training completion rates.

A particularly noteworthy finding was the increased willingness among mothers of infants to participate in the training when the requirement to stay away was reduced. While no women with infants enrolled in the traditional training programme, 45% of those with an infant completed the hybrid course. Furthermore, the data revealed that 60% of women who had their sources of income, such as those running small businesses, completed the hybrid training, in contrast to just 7% in the traditional format, underscoring the more excellent compatibility of distance learning with existing work commitments.

The implications of these findings are profound, not only for implementing similar programmes in other contexts but also for broadly boosting women’s participation in the workforce through hybrid and remote training models. As Janzen concluded, the adaptability of the training platform, initially designed using the Nepalese government’s curriculum and tailored to local needs, suggests that with minimal adjustments, this model could be effectively replicated in other regions, thereby extending its benefits across various developing countries.

More information: Sarah Janzen et al, Going the distance: Hybrid vocational training for women in Nepal, Journal of Development Economics. DOI: 10.1016/j.jdeveco.2024.103414

Journal information: Journal of Development Economics Provided by University of Illinois College of Agricultural, Consumer and Environmental Sciences

Boost Sales Performance: Adopt ‘Buy Now, Pay Later’ to Elevate Customer Expenditure

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The Buy-Now-Pay-Later (BNPL) system is gaining traction globally as a favoured method of payment. It allows customers the convenience of distributing the cost of their purchases into interest-free instalments over several weeks or months. In 2023, global expenditures via BNPL reached a staggering $316 billion and are projected to rise to $450 billion by 2027. Renowned retailers such as Walmart and H&M are collaborating with prominent BNPL providers like Affirm, Klarna, and Afterpay, which has led to more than 45 million U.S. consumers adopting this payment method.

When customers opt for BNPL instalments at the checkout of participating retailers, the full amount is initially covered by the BNPL provider. The consumer then pays the first instalment at the point of purchase and completes the remaining payments without interest for a brief period.

Despite its increasing adoption, BNPL’s effect on retail sales remains underexplored. A recent study published in the Journal of Marketing utilises transaction data from a major U.S. retailer to demonstrate that BNPL instalments significantly enhance consumer spending. By breaking down payments into smaller, manageable chunks, BNPL increases the frequency of purchases and the average transaction value.

This study examines the effects of BNPL compared to traditional payment methods like upfront and delayed lump sum payments, showing consistent spending increases across various products and instalment plans. Whether consumers are buying party supplies, apparel, or airline tickets and splitting the cost into three, four, or six payments, BNPL consistently encourages higher expenditures.

One key finding of the study is alleviating perceived financial constraints through BNPL. The research suggests that BNPL instalments enable customers who typically rely on credit cards and purchase smaller baskets to feel less financially restricted. The mental accounting of smaller, individual payments (“four instalments of $15”) as opposed to the total cost (“$60 total”) appears less daunting, encouraging more significant expenditure. Additionally, BNPL helps consumers manage their budgets more effectively by focusing on shorter time frames, which contrasts with the longer-term focus required for traditional credit card payments.

Professor Maesen points out that BNPL’s psychological impact, making payments seem less costly and giving consumers better budget control, significantly reduces financial constraints, leading to increased spending.

This study contrasts with prior research by not only focusing on the framing of prices but also on the actual payment practices. BNPL’s structure requires customers to make payments over specified periods, thus extending the research into the practical implications of how payment segmentation affects consumer behaviour over time. This comprehensive approach allows for a deeper understanding of consumer spending patterns, especially regarding their previous spending habits and credit usage.

This research offers valuable insights for chief marketing officers. Consumers using BNPL will likely feel more in control of their finances, which can translate into more frequent and larger purchases. According to Mr Ang, retailers see a notable benefit, with instalment payments boosting transaction frequency by about 9% and amounts by approximately 10%.

Moreover, policymakers and societal stakeholders need to consider BNPL’s substantial influence on consumer spending to craft regulations that balance consumer protection with financial flexibility. This balance is essential as BNPL continues redefining the shopping experience, offering opportunities and challenges in the retail sector.

In summary, the BNPL payment method not only changes how consumers approach their finances but also significantly benefits retailers by increasing the frequency and size of consumer purchases. Understanding these dynamics is crucial for all stakeholders in the retail and financial sectors as they navigate the evolving landscape of consumer finance.

More information: Stijn Maesen et al, Buy Now, Pay Later: Impact of Installment Payments on Customer Purchases, Journal of Marketing. DOI: 10.1177/00222429241282414

Journal information: Journal of Marketing Provided by American Marketing Association

New Research Provides Insight into the Most Effective Methods for Organising People to Generate Ideas

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Managers at every level within corporations, huge ones, face a common challenge: determining the optimal way to organise employees to foster the best creative outputs. The question remains whether it’s more beneficial to assemble large or smaller groups or mix individuals with similar or differing backgrounds.

Recent insights from Binghamton University, part of the State University of New York, have shed light on these questions, with some findings that might surprise many. Over nearly two decades, Professor Shelley D. Dionne—currently the dean of Binghamton’s School of Management—and Distinguished Professor Hiroki Sayama have delved into the complexities of group dynamics and their impact on organisational performance. Their latest findings have been documented in a new study published in npj Complexity, focusing on how different group compositions handle creative challenges.

Contributors to this research include a mix of graduates and academics from Binghamton, such as Yiding Cao, Yingjun Dong, Minjun Kim, Neil G. MacLaren, Sriniwas Pandey, and Distinguished Professor Emeritus Francis J. Yammarino. Between 2018 and 2020, they orchestrated experiments involving 617 students from the university. These students collaborated anonymously via a digital platform similar to Twitter to create a catchy marketing slogan for a new laptop or write a fictional story. Within their groups, which ranged from 20 to 25 members, participants would log on daily for over ten working days to submit and refine ideas.

Before these experiments, the researchers conducted language analyses on self-introduction essays from the participants to determine if grouping by similar viewpoints or backgrounds influenced the creative process. The communication structure within these groups varied; some participants could engage with their entire group, while others were restricted to interacting with only those next to them in a ring-shaped organisational model.

The quality of the resulting ideas was assessed by PhD candidates specialising in marketing or management for the slogan task and by staff from the university’s communications and marketing division for the storytelling exercise. Interestingly, the researchers noted several counterintuitive findings. For instance, when all participants in the social networks could see each other’s ideas, the ideas’ diversity was reduced. Conversely, increased communication among participants enhanced their happiness despite the isolation felt by those who interacted less but generated higher-quality ideas.

When diverse individuals were grouped, the ideas tended to be more conservative, influenced by the participants’ varying areas of expertise, which nudged the group towards safer, more universally acceptable ideas. Random connections among participants, however, were most likely to yield the best ideas, according to Sayama. He likens the process of idea generation to evolutionary biology, where ideas are akin to organisms in an ecosystem, adapting and thriving or failing based on environmental pressures.

The researchers believe implementing such a detailed experimental framework in a standard office setting poses challenges. Using artificial intelligence to analyse participants’ backgrounds and contributions is not typically feasible in most workplaces. Nonetheless, managers can distil this research into a simple guiding question about their objectives: whether to foster biodiversity of ideas or to protect and nurture a singular concept.

Dionne points out that the study’s strength lies in its interdisciplinary approach, applying theories from evolutionary biology to explore how networks influence creative tasks. While the study provides a foundation, it also opens up new avenues for further exploration, underscoring the non-conclusive nature of the findings but their potential to inspire further research.

The research team was interrupted by the onset of the COVID-19 pandemic, which shifted their focus to urgent public health decision-making. This hiatus meant a delay in analysing the wealth of data collected. However, as the situation has stabilised, the publication of their findings marks a significant advancement in understanding the dynamics of creativity within organisational structures, especially concerning the use of modern analytical tools like artificial intelligence, which was not widely discussed in management studies back in 2018. As they resume their research, the team remains excited about the potential to push the boundaries of this field further.

More information: Hiroki Sayama et al, Effects of network connectivity and functional diversity distribution on human collective ideation, npj Complexity. DOI: 10.1038/s44260-024-00025-9

Journal information: npj Complexity Provided by Binghamton University