Color

Bazley, Cronqvist, and Mormann’s recent research provides additional evidence that the color red should be used cautiously.  The investigators report in an article published in Management Science“thatusing the color red to represent financial data influences individuals’ risk preferences, expectations of future stock returns and trading decisions. The effects are not present in people who are colorblind, and they’re muted in China, where red represents prosperity. Other colors do not generate the same outcomes. . .

Pontes and Williams found that seeing the color red influences gambling behavior.  They report that “In general, people make more risk averse choices, gambling less and less often when primed with [shown] the color red over other colors. . . . when participants feel lucky or are from Asian Chinese backgrounds the effect is reversed and they take more risks when primed with the color red.”

Cobanoglu, of the University of South Florida, reports on work conducted with Ali, Nanu, Shahtakhtinskaya, and Rahman related to mask wearing during the pandemic and optimal mask colors.  It may be possible to apply these findings in additional contexts. The researchers learned via a survey administered to 1,800 Americans during which  “respondents visited a restaurant or hotel as a guest, doing so virtually. . . . Results show that customers perceive higher service quality in a restaurant or hotel if employees wear masks, regardless of the color or type of mask. . . . Results show . . .