The Risk-Averse Body: New research shows how consumers make health decisions

Two-thirds of Americans fail to follow recommended health guidelines for screenings, and are hesitant to try new treatment options because of associated risks. But why? New research by University of Arizona Eller College of Management Associate Professor of Marketing and Eller Fellow, Martin Reimann, and New Mexico State University Assistant Professor of Marketing Christoph Hueller uncovered the answers by applying Prospect Theory, widely used in financial risk assessments, to analyze healthcare decisions. 

“We hypothesized that consumers are more risk-averse when it comes to their bodies than their money, and tested that hypothesis across five studies,” said Reimann. “Each study examined perceived risks in contexts like enhancing, treating and protecting the consumer’s body.” 

The hypothesis proved true. Reimann and Hueller further identified this being due to consumers naturally having an extreme negative reference point – an extreme negative side effect or extreme result of prior healthcare choices – that is developed from personal experience. They then tested if the reference point could be shifted in a positive direction and overwhelmingly confirmed this shift happens most effectively when positive information is presented by family and friends. 

This research proves the power of longtime awareness campaigns, such as breast cancer’s pink ribbon, and especially when family and friends begin adopting and delivering the message. The campaign shifted societal norms, increasing screening rates among women 40 and older from just 29 percent in 1987 to 70 percent in 2000. Thanks to this shift, breast cancer is perceived as largely treatable, with an average combined five-year survival rate of 91 percent.  

“Family and friends are the most powerful manipulators of social norms - a promising channel for healthcare professionals to encourage hesitant consumers to engage in preventative screenings and other beneficial bodily procedures despite potential discomfort or other side effects they might cause,” said Reimann. 

The full research, published in the Journal of the Association for Consumer Research, Volume 11, Issue 4, is available for review online.