SUPPLEMENTARY ONLINE APPENDIX Study 1 - The Replication Methodology Undergraduates from the Universidade de São Paulo in Brazil (n = 58, 67% male, Mage = 21.1) participated in exchange for course credit. Upon arrival, each participant was seated and presented with a press release extolling the virtues of a fictitious energy drink called “Pharmaton Power,” with active ingredients designed to enhance alertness and mental capacity. The press release included a product description and one of two pricing conditions to which participants were randomly assigned: Low (R$1,00, approximately US $.60) or High (R$5,50, approximately US$ 3.30). After having read the press release, participants drank a 300ml portion of what they believed to be Pharmaton Power. The drink was, in actuality, a mixture of orange juice, guarana soft drink, and ginger ale. Then, participants filled out a brief questionnaire asking for their general opinion of the drink as well as evaluating the drink’s price, color, and taste. Following completion of the questionnaire, participants were instructed to wait for 10 minutes for the drink to “take effect,” during which time they watched a National Geographic™ documentary about the moon. Participants were then given a 3x6 matrix of letters and told to form as many words as possible from the contiguous letters in fifteen minutes. To be counted in the results, words had to be a minimum of four letters long, in the students’ native Portuguese language, and could not use the same letter twice. After the puzzle task, participants were asked to rate the price of the drink compared to other energy drinks on a five-point Likert scale (1 = much cheaper; 5 = much more expensive). This measure served as a manipulation check for our price factor. Results and Discussion Manipulation check. A posttest manipulation check verified that participants in the lower priced (M = 1.45) condition rated the drink as significantly less expensive than those in the higher priced condition (M = 3.72; t(56)=14.89, p < .001). We interpret this as evidence of successful manipulation of perceived product expensiveness. Task performance. Consistent with Shiv et al. (2005), participants randomly assigned to the high priced (M = 22.3, SD = 6.8) condition outperformed participants assigned to the low priced (M = 16.9, SD = 6.2) condition (t(56)=3.2, p < 0.01), despite the puzzles, samples, and price points differing from the ones used in the original study. Experimental Stimuli Low Price Condition Boehringer Ingelheim, one of the biggest pharmaceutical companies in the world is launching the new Pharmaton Power Pharmaton Capsules was developed to increase physical and mental well being. It contains a mixture of vitamins, minerals, and Ginseng G115. It is produced in Switzerland and distributed in Brazil by its subsidiary. Now, Pharmaton Power in Brazil Pharmaton Power is an energetic beverage that has the same properties of Pharmaton Capsules. Its exclusive formula of vitamins, minerals, Ginseng G115 and caffeine increases vitality, well being, and improves the physical and mental capacity. It also boosts concentration and memory. Pharmaton Power should be drank by athletes, students, and professionals subject to the daily stress when they more need an extra dose of energy. Pharmaton Power can be purchased at R$ 1,00 each bottle. High Price Condition Boehringer Ingelheim, one of the biggest pharmaceutical companies in the world is launching the new Pharmaton Power Pharmaton Capsules was developed to increase physical and mental well being. It contains a mixture of vitamins, minerals, and Ginseng G115. It is produced in Switzerland and distributed in Brazil by its subsidiary. Now, Pharmaton Power in Brazil Pharmaton Power is an energetic beverage that has the same properties of Pharmaton Capsules. Its exclusive formula of vitamins, minerals, Ginseng G115 and caffeine increases vitality, well being, and improves the physical and mental capacity. It also boosts concentration and memory. Pharmaton Power should be drank by athletes, students, and professionals subject to the daily stress when they more need an extra dose of energy. Pharmaton Power can be purchased at R$ 5,50 each bottle. Study 2 – Set Size Methodology Undergraduates from the Universidade de São Paulo in Brazil (n = 59, 64% male, Mage = 22.0) participated in exchange for course credit. Upon arrival, each participant was seated and presented with a press release extolling the virtues of a fictitious energy drink called “Pharmaton Power,” with active ingredients designed to enhance alertness and mental capacity. The press release included one of two conditions manipulating the number of active ingredients included in the product description (two vs. six) to which participants were randomly assigned. After having read the press release, participants drank a 300ml portion of what they believed to be Pharmaton Power. The drink was, in actuality, a mixture of orange juice, guarana soft drink, and ginger ale. Then, participants filled out a brief questionnaire asking for their general opinion of the drink as well as evaluating the drink’s ingredients, color, and taste. Following completion of the questionnaire, participants were instructed to wait for ten minutes for the drink to “take effect,” during which time they watched a National Geographic™ documentary about the moon. Then, participants were given a 3x6 matrix of letters and told to form as many words as possible from the contiguous letters in fifteen minutes. After the puzzle task, participants were asked to rate the number of active ingredients in Pharmaton Power compared to other energy drinks on a five-point Likert scale (1 = fewer ingredients; 5 = more ingredients). This measure served as a manipulation check for our ingredient factor. Results and Discussion Manipulation check. A posttest manipulation check verified that participants in the two ingredient condition (M = 1.8) rated the drink as having significantly fewer ingredients than those in the six ingredient condition (M = 2.3; t(57) = 2.14, p < .05). We interpret this as evidence of successful manipulation of perceived number of ingredients. Task Performance. Persuasion increases as the number of arguments supporting a conclusion increases (i.e., the length-implies-strength heuristic; Chaiken, Liberman, & Eagly, 1989). Hence, expectations should increase as the number of favorable attributes presented increases (H1). In support of H1, we found that participants randomly assigned to the six ingredient (M = 24.4, SD = 7.8) condition outperformed participants assigned to the two ingredient (M = 20.0, SD = 5.4) condition (t(57) = 2.5, p < 0.05). Experimental Stimuli 2 Ingredient Condition Boehringer Ingelheim, one of the biggest pharmaceutical companies in the world is launching the new Pharmaton Power Pharmaton Capsules was developed to increase physical and mental well being. It contains a mixture of vitamins, minerals, and Ginseng G115. It is produced in Switzerland and distributed in Brazil by its subsidiary. Now, Pharmaton Power in Brazil Pharmaton Power is an energetic beverage that has the same properties of Pharmaton Capsules. Its exclusive formula contains Ginseng G115 and Carbohydrates. This exclusive formula increases vitality, well being, and improves the physical and mental capacity. It also boosts concentration and memory. Pharmaton Power should be drank by athletes, students, and professionals subject to the daily stress when they more need an extra dose of energy. Pharmaton Power can be purchased at R$ 5,50 each bottle 6 Ingredient Condition Boehringer Ingelheim, one of the biggest pharmaceutical companies in the world is launching the new Pharmaton Power Pharmaton Capsules was developed to increase physical and mental well being. It contains a mixture of vitamins, minerals, and Ginseng G115. It is produced in Switzerland and distributed in Brazil by its subsidiary. Now, Pharmaton Power in Brazil Pharmaton Power is an energetic beverage that has the same properties of Pharmaton Capsules. Its exclusive formula contains Ginsensg G115, Vitamin B9, Caffeine, Vitamin E, Carbohydrates, and Vitamin C. This exclusive formula increases vitality, well being, and improves the physical and mental capacity. It also boosts concentration and memory. Pharmaton Power should be drank by athletes, students, and professionals subject to the daily stress when they more need an extra dose of energy. Pharmaton Power can be purchased at R$ 5,50 each bottle Efficacy Measure – Studies 1 & 2 Write down all the words you can form out of connecting letters in this puzzle. As an example, see how the word “Rato” is formed below. Words must be at least four letters long and in the Portuguese language. Study 3 – Scarcity Methodology Undergraduates from the University of Cincinnati in the United States (n = 109) participated in exchange for course credit. Upon arrival, each participant was seated at a partitioned cubicle and asked to fill out a paper and pencil survey. At the opening of the survey, participants were presented with a brief description of a fictitious energy drink called “StaminaTM” and told that this product has been shown to increase mental functioning when consumed. Below the description, was a picture of a store shelf on which three energy drinks were stocked in addition to Stamina (adapted from Parker and Lehmann 2011). The only factor manipulated was the relative availability of Stamina. We randomly assigned participants to conditions. Those assigned to the limited availability condition (n = 50) were presented with a shelf availability that was significantly lower (50%) relative to competitors, whereas those assigned to the abundant availability condition (n = 59) were presented a shelf availability that was equal to competitors. Both images varied only by the quantity of Stamina presented. After reviewing their respective image, participants were asked to consume a three-ounce sample of Stamina (actually Kirkland Signature green tea) before proceeding to a puzzle task. To test our hypothesis, we collected a measure of efficacy, namely, performance on a word puzzle. For the puzzle, participants were presented with a 4x4 matrix of letters and given three minutes to write down as many words from connected letters as possible. After the puzzle task, participants indicated how much they agreed or disagreed with the following statement on a seven-point Likert scale ranging from 1 (strongly disagree) to 7 (strongly agree), “StaminaTM is widely available compared to similar products.” This measure served as a manipulation check for our availability factor. Finally, participants completed a series of questions asking them to evaluate the product, including a multi-item scale measuring overall attitudes-towards-theproduct (α = .8) followed by demographic questions. Results and discussion Manipulation check. A posttest manipulation check verified that participants in the abundant availability condition were more likely to agree that Stamina is widely available compared to similar products (M = 3.05, SD = 1.51) as compared with those in the limited availability condition (M = 2.34, SD = 1.49; t(1,107) = 2.46, p < .05). We interpret this as evidence of successful manipulation of product availability. Task performance. In support of our hypothesis, we found that participants randomly assigned to the limited availability (M = 16.6) condition outperformed participants assigned to the abundant availability (M = 13.6) condition (t(107) = 2.04, p < 0.05). These findings are consistent with the unconscious expectancy mechanism proposed by Shiv, Carmon, and Ariely (2005), suggesting that when consumers are given a product, beliefs about that product activate response expectancies, thus producing the observed placebo effect. Moreover, this placebo effect is attenuated when the marketing action-efficacy association is salient and consciously processed (Shiv et al. 2005). Because limited availability increases message elaboration (Brannon and Brock 2001; Folger 1992; van Herpen et al. 2009; Verhallen 1982; Verhallen and Robben 1995) and demand-based inference formation (Parker and Lehmann 2011), products with limited availability produce the observed placebo effect. Did product evaluations mediate the observed effect? An alternative account for our findings is that product evaluations may explain the effect of limited availability on product efficacy. To reduce the viability of this evaluative account, we collected a measure of product evaluations. An ANCOVA with this evaluative measure revealed no relevant effects and did not alter the study findings. In addition, we found no mean difference between conditions (p > .7). Thus, our results show that the observed placebo effect is independent of subjective product evaluations. The findings are consistent with an unconscious causal mechanism (Shiv et al. 2005). Experimental Stimuli Scarce Condition As illustrated in the image below, if you were to visit any of the stores selling StaminaTM you would find its availability to be limited compared to similar products. Abundant Condition As illustrated in the image below, if you were to visit any of the stores selling StaminaTM you would find its availability to be equal to that of similar products. Efficacy Measure Mental Acuity Task Study 4 – Taste and Packaging Methodology Undergraduates from the Universidade de São Paulo in Brazil (n = 145, 53% male, Mage = 20.3) participated in exchange for course credit. Upon arrival, each participant was seated and presented with a press release extolling the virtues of a fictitious drink called “Relaxan.” The drink included active ingredients designed to enhance feelings of calm, concentration, memory, and learning capacity. The experiment was a 2(Package Design: Regular Design vs. Odd Design) X 2(Taste: Good vs. Bad) factorial design and participants were assigned at random to any one of the four conditions. Design was manipulated through the bottle image accompanying the product description. The “regular design” condition featured a sleek, slender bottle consistent with similar products on the market. The odd condition featured a short, stout bottle not typical of the product category. Taste was manipulated by the ingredients used in the drink sampled by participants. Those in the “good” taste condition ingested a sweet mixture of passion fruit gelatin (Jell-O™), powdered strawberry juice (Tang™), sugar, and lemon. The “bad” taste condition featured the same ingredients but with the addition of vinegar to provide a bitter taste. After having read the press release, participants drank a 300ml portion of what they believed to be Relaxan. Then, participants filled out a brief questionnaire asking participants their general opinion of the drink, their perceptions regarding taste and packaging, and their intent to purchase the product. Following completion of the questionnaire, participants were instructed to wait for ten minutes for the drink to “take effect,” during which time they read magazines. Participants were then given a list of 24 words and asked to memorize as many words as possible during the next three minutes. Once three minutes had expired, the list was removed and participants were allotted two minutes to write down as many of the memorized words as possible. Each of the words on the original list was six to twelve letters long and unrelated in regards to subject matter. Misspelled words were not counted in the results. After the memorization task, participants evaluated the taste and packaging of the product on 7-point scales ranging from 1 (very poor) to 7 (excellent). These measures served as manipulation checks for our taste and packaging factors. Results and Discussion Manipulation checks. A posttest manipulation check verified that participants in the “bad” taste condition were more likely to agree that Relaxan had a poor taste (M = 2.47, SD = 1.45) as compared with those in the “good” taste condition (M = 4.55, SD = 1.37; t(1,143) = 8.87, p < .001). Similarly, participants in the “odd” design condition were more likely to agree that Relaxan had a poor bottle design (M = 2.18, SD = 1.24) as compared with those in the “regular” design condition (M = 3.90, SD = 1.29; t(1,143) = 8.21, p < .001). We interpret this as evidence of successful manipulations of taste and design typicality. Task performance. Study 4 investigated the impact of taste and packaging on expectations. Eccles (2006) suggested that the taste of a cough syrup is likely to influence the occurrence or magnitude of a placebo effect. Consistent with this line of research, we hypothesized that expectations would increase as a beverage’s tastiness decreases (H3). This hypothesis is also consistent with classical conditioning theory. Since the flavor of most medicines is unpleasant (Sharma & Chopra, 2010), the repeated association of medicines with unpleasant flavors pairs substandard taste with efficacy expectations. Compared to congruent designs, product designs incongruent with consumer expectations are perceived as more risky (Campbell & Goodstein, 2001) and evaluated more negatively (Mandler, 1982). We hypothesized that expectations would increase as a product’s packaging typicality increases (H4). Manipulation checks confirmed that we successfully manipulated taste and packaging typicality. In support of H3, we found that participants randomly assigned to the substandard taste (M = 13.2, SD=3.0) condition outperformed participants assigned to the superior taste (M = 11.5, SD=3.0) condition (F(1,141) = 13.5, p < 0.01). In support of H4, we found that participants randomly assigned to the typical packaging (M = 13.5, SD = 3.1) condition outperformed participants assigned to the atypical packaging (M = 11.1, SD = 2.6) condition (F(1,141) = 28.5, p < 0.01). We did not predict or find a significant interaction (F < 1). Experimental Stimuli Regular Bottle Condition Relaxation beverages There is not yet in Brazil relaxation beverages drinks that are a trend in other countries. These drinks fight the stress and increase concentration without causing sleepiness or decreasing attention Now in Brazil Relaxan Relaxan is a different type of relaxation beverage that improves concentration, memory and learning capacity without causing sleepiness. Relaxan is produced with natural ingredients only. Relaxan contains no caffeine, no sugar and no preservatives. The benefits provided by its 5 ingredients are numerous. First of all, L-theanine promotes relaxation, improves the brain’s capacity to concentrate, learn, memorize and it increases cerebral levels of dopamine, the neurotransmitter responsible for pleasure. Chamomile is reputed for treating insomnia. Passiflora induces relaxation. Valerian and Linden are acknowledged to help reducing nervousness. Relaxan was developed in Switzerland by Roche Pharmaceutical and is bottled and distributed in Brazil by its subsidiary. Relaxan can be purchased in drugstores and specialized stores. “Odd” Bottle Condition Relaxation beverages There is not yet in Brazil relaxation beverages drinks that are a trend in other countries. These drinks fight the stress and increase concentration without causing sleepiness or decreasing attention Now in Brazil Relaxan Relaxan is a different type of relaxation beverage that improves concentration, memory and learning capacity without causing sleepiness. Relaxan is produced with natural ingredients only. Relaxan contains no caffeine, no sugar and no preservatives. The benefits provided by its 5 ingredients are numerous. First of all, L-theanine promotes relaxation, improves the brain’s capacity to concentrate, learn, memorize and it increases cerebral levels of dopamine, the neurotransmitter responsible for pleasure. Chamomile is reputed for treating insomnia. Passiflora induces relaxation. Valerian and Linden are acknowledged to help reducing nervousness. Relaxan was developed in Switzerland by Roche Pharmaceutical and is bottled and distributed in Brazil by its subsidiary. Relaxan can be purchased in drugstores and specialized stores. “Good” Taste Condition, Ingredients Passion fruit flavored gelatin (Jell-O™) Powdered strawberry juice (Tang™) Sugar Lemon “Bad” Taste Condition, Ingredients Passion fruit flavored gelatin (Jell-O™) Powdered strawberry juice (Tang™) Sugar Lemon Vinegar Efficacy Measure Word Memorization List Ônibus Palhaço Melodia Helicóptero Outono Princesa Academia Universidade Caranguejo Retrato Jabuticaba Vidraça Humanidade Experiência Chinelo Finalista Vassoura Ratoeira Exército Limonada Amendoim Viagem Armário Bactéria Table 1: Performance as a function of expectancies Study Experimental Conditions (N = 371) Low Expectancy High Expectancy Price 16.9 (6.2) 22.3 (6.8) Set Size 20.0 (5.4) 24.4 (7.8) Scarcity 13.6 (7.12) 16.6 (8.5) Taste Product Packaging 11.5 (3.0) 11.1 (2.6) 13.2 (3.0) 13.5 (3.1) Study 1 (n = 58) Study 2 (n = 59) Study 3 (n = 109) Study 4 (n = 145) Note: For each row, the means across expectancy conditions differ at the p < .05 level. Standard deviations are reported in parentheses.