Strike while the iron is hot: Temperature affects consumers' appetite for risk

Abstract

Abstract Many consumer decisions—from trying a new brand to trying a new recipe—involve risk. However, although consumers' appetite for risk has received over 50 years of investigation, the impact of situational variables (e.g., atmospherics) on consumer decision‐making involving risk remains relatively unexplored. To address this gap, the current work examines the influence of temperature, a ubiquitous situational influence, on consumers' inclination toward risk. Across four studies, we find evidence for a positive relationship between temperature and risk‐taking, using multiple operationalizations of temperature and measurements of risk. Evidence suggests that this effect is driven by warm temperature engaging the Behavioral Activation System, which in turn heightens risk‐taking.