Traffic light labels can give a false sense of security
Thursday, June 26, 2014 - 11:00
in Mathematics & Economics
The labeling of product attributes using a traffic light system influences consumers in their purchasing decisions. A study by scientists from Germany and France reveals for the first time that this applies not only to food, but also to financial products—but not always in the way intended. Test subjects paid less attention to the uncertainty associated with the return on an investment when a traffic light label was added to the product information.