Consumer processing of hazard warning information

Abstract

Using data obtained from a field experiment involving 957 consumers, this study investigates the linkage between hazard warnings and precautionary behavior, as well as the structure of the information about product usage and risks that consumers store in their memories. Through the use of a methodology based on an open-ended memory recall task, we measure how consumer recall of information on product labels is affected by the type and format of the information and infer the structure by which this information is stored in their memory. The methodology also allows us to explore the importance of limitations on consumers' cognitive abilities. In particular, we find that consumers substitute greater recall of risk information for recall of usage information, indicating a tradeoff among the different types of information conveyed on a product label. We also found that in the case of cluttered labels, as typified by many existing product labels, information overload results, which may make labeling ineffective in achieving its intended informational objective.