#ConsumerPsychology

Southwest Airlines’ recent decision to end its iconic “bags fly free” policy in favor of $35 and $45 fees for checked bags has sparked controversy, demonstrating the high cost a brand can incur by ignoring fundamental consumer psychology, according to new analysis from Forbes. The abrupt policy shift, effective Wednesday, is anticipated to raise revenue by $1–1.5 billion but may cost the airline as much as $1.8 billion in lost market share, raising doubts about the long-term wisdom of the move (Forbes).

A new peer-reviewed study is raising fresh questions about the effectiveness of displaying calorie counts on restaurant menus and food labels—an increasingly common sight in Thailand’s urban eateries and supermarkets. While these numbers are meant to encourage healthier eating, the latest research indicates they might have the opposite effect, leaving consumers more confused and less confident about their food choices.

Published recently in the Journal of Retailing, this study involved over 2,000 participants across nine experiments. According to the research team led by academics specializing in health behavior and consumer psychology, when people considered calorie information while judging food, they unexpectedly rated unhealthy foods as less bad and healthy foods as less beneficial. Even more striking, participants became less certain in their assessments after seeing calorie numbers, with their healthiness ratings on foods like salads and cheeseburgers converging closer together. Those who did not see calorie data could clearly distinguish between healthy and unhealthy foods, but calorie counts appeared to muddy these distinctions (The Conversation).