The way we display product ratings has a profound impact on consumer behavior. A new marketing study from the Cornell SC Johnson College of Business reveals that consumers tend to overestimate fractional star ratings while underestimating numeric ratings. This can lead companies to unknowingly overpromise or underdeliver, potentially affecting their sales and reputation.

In six experiments, researchers found consistent results across all participants, demonstrating a clear difference in perception when ratings are displayed using stars versus numbers. The study’s first author, Deepak Sirwani, explained that the brain automatically completes half-pictures when presented with fractional star ratings, making them feel more like 3s than 4s. On the other hand, numeric ratings cause participants to focus on the left digit, resulting in an underestimation of their magnitude.

This phenomenon is not just about numbers; it’s also about how our brains process images and standard Arabic numerals. According to Manoj Thomas, a professor of management at Cornell University, “Our results suggest that the brain representations activated when processing stars are completely different from those activated when processing Arabic numerals.” This fundamental difference in brain processing has significant implications for businesses, as it can impact consumer perceptions and sales.

The researchers’ findings have far-reaching consequences, highlighting the need for new industry standards in rating formats. As Sirwani pointed out, ratings have become a crucial factor in purchasing decisions, often rivaling price, brand reputation, or even personal recommendations from friends and family. In fact, other research has shown that even a 0.2-point increase in ratings can boost sales by up to 300%. Given this context, the study’s conclusion that the star effect can potentially increase sales by orders of magnitude is both striking and significant.

In conclusion, the way we display product ratings matters more than ever. Businesses must be aware of the “star effect” and its potential impact on consumer perceptions, taking steps to ensure their rating systems accurately reflect the quality of their products or services. Only then can companies confidently promise what they deliver, ultimately leading to increased customer satisfaction, loyalty, and growth.

The Flexible Value of Data Privacy: A New Perspective on Protecting Personal Information

In our increasingly networked world, questions about data privacy have become a ubiquitous concern for companies, policymakers, and the public. A recent study by MIT researchers has shed new light on this issue, suggesting that people’s views about privacy are not fixed and can shift significantly based on different circumstances and uses of data.

“There is no absolute value in privacy,” says Fabio Duarte, principal research scientist at MIT’s Senseable City Lab. “Depending on the application, people might feel use of their data is more or less invasive.”

The study, which used a game called Data Slots to elicit public valuations of data privacy, found that values attributed to data are combinatorial, situational, transactional, and contextual. The researchers created a card game with poker-type chips that allowed players to hold hands of cards representing various types of data, such as personal profiles, health data, vehicle location information, and more.

Players then exchanged cards, generated ideas for data uses, assessed, and invested in some of those concepts. The game was played in-person in 18 countries and online by people from another 74 countries, with over 2,000 individual player-rounds included in the study.

The results showed that players highly valued personal mobility data, followed by health data and utility use. However, the value of privacy is highly contingent on specific use-cases. For instance, players were less concerned about data privacy when using environmental data in the workplace to improve wellness.

“We show that even in terms of health data in work spaces, if they are used in an aggregated way to improve the workspace, for some people it’s worth combining personal health data with environmental data,” says Simone Mora, a research scientist at Senseable City Lab.

Martina Mazzarello adds, “Now perhaps the company can make some interventions to improve overall health. It might be invasive, but you might get some benefits back.”

The researchers suggest that taking a more flexible and user-driven approach to understanding what people think about data privacy can help inform better data policy. Cities often face scenarios where they collect aggregate traffic data, for instance. Public input can help determine how anonymized such data should be.

Understanding public opinion along with the benefits of data use can produce viable policies for local officials to pursue. “The bottom line is that if cities disclose what they plan to do with data, and if they involve resident stakeholders to come up with their own ideas about what they could do, that would be beneficial to us,” says Duarte.

“And in those scenarios, people’s privacy concerns start to decrease a lot.”

Smart home technologies are increasingly used worldwide to monitor and control various aspects of daily life. However, a growing concern has emerged regarding the impact of these devices on domestic workers, who often find themselves under constant surveillance.

Researchers from King’s College London have conducted a study that reveals the unsettling truth about smart home devices being used to monitor domestic workers in China. The study, which involved interviews with 26 domestic workers and five recruitment agencies, highlights how employers are using these technologies to exert control over their employees, undermining their privacy and safety.

The researchers found that many domestic workers felt like they were under constant observation, with cameras and sensors installed in every room of the smart home. Some reported not being informed about the presence of cameras, while others discovered them hidden in bookshelves or disguised as other devices.

The constant feeling of being watched had a profound impact on the mental wellbeing of these domestic workers. Many felt uneasy, anxious, and even trapped in their own homes. The researchers concluded that this level of surveillance amounts to mental abuse, undermining trust and affecting workplace interactions.

Furthermore, the study revealed how smart home technologies exacerbate existing power imbalances between workers and employers. Employers can use these devices to monitor workers’ performance, track their movements, and even make decisions about their employment based on data collected from the devices.

The researchers highlighted that while many domestic workers recognized the need for safety, especially when caring for babies, the absence of clear communication from employers about the purpose of monitoring sparked distrust and discomfort. They recommended that domestic worker agencies integrate privacy education into training programmes for workers to understand their rights and establish transparent communication and contractual agreements regarding surveillance practices.

The study was conducted by researchers from King’s College London, along with collaborators from the University of St Andrews and the China Academy of Art, Hangzhou. The findings suggest that this issue is not unique to China but may be affecting migrant domestic workers worldwide.

In conclusion, the use of smart home technologies to monitor domestic workers raises significant concerns about their safety and privacy. The researchers’ recommendations provide a starting point for policymakers and agencies to address these challenges and ensure that domestic workers are protected from exploitation. As technology continues to advance, it is crucial that we prioritize human rights and dignity in the development and implementation of smart home devices.