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Über dieses Buch

​This volume includes the full proceedings from the 2013 World Marketing Congress held in Melbourne, Australia with the theme Looking Forward, Looking Back: Drawing on the Past to Shape the Future of Marketing. The focus of the conference and the enclosed papers is on marketing thought and practices throughout the world. This volume resents papers on various topics including marketing management, marketing strategy, and consumer behavior.

Founded in 1971, the Academy of Marketing Science is an international organization dedicated to promoting timely explorations of phenomena related to the science of marketing in theory, research, and practice. Among its services to members and the community at large, the Academy offers conferences, congresses and symposia that attract delegates from around the world. Presentations from these events are published in this Proceedings series, which offers a comprehensive archive of volumes reflecting the evolution of the field. Volumes deliver cutting-edge research and insights, complimenting the Academy’s flagship journals, the Journal of the Academy of Marketing Science (JAMS) and AMS Review. Volumes are edited by leading scholars and practitioners across a wide range of subject areas in marketing science.​

Inhaltsverzeichnis

Frontmatter

B2B TRANSACTIONS, PRICE AND GOVERNANCE

Frontmatter

What Do Buyers Want From Their Relationships With Optical Buying Groups? The Role of Embeddedness, Switching Costs, and Commitment

Independent optical shops (or independents) are increasingly being squeezed out by competition from first, warehouse clubs and superstores such as Walmart and Costco which have the means to penetrate the low and middle markets at a national level and second, from direct marketers such as 1-800-Contacts entering the industry with low online pricing. The increasing commodization and price competition in certain segments of the optical market (e.g., contact lens) has made it even more difficult for independents to co-exist with these competitors. Compounded by their inability to offer lower prices comparable to the larger chains as well as the lack of individual negotiating power with manufacturers, many small independents have turned to buying groups (sometimes called cooperatives or purchasing alliances) to help drastically reduce product acquisition costs and to stay competitive as independent entities.

Poh-Lin Yeoh

Formal Contract in Marketing Channel and Firms’ Transactional Performance in China: Does Renqing Matter?

Based on the resourced-based view of the firm, we argue that a cultural specific factor, i.e., Renqing, can be an important resource for conducting business-to-business (B-to-B) marketing in China, and this resource should moderate the effect of formal contracts in marketing. Collecting data from 272 firms in China, we obtain evidence showing that both formal contracts and Renqing can have a positive effect on the success of B-to-B marketing. Moreover, Renqing moderates the relationship between formal contracts and transaction efficiency. Testing how the effect of Renqing may interact with the effect of formal contracts and may improve B-to-B marketing in an emerging economy such as China, our current study suggests a new direction for studying B-to-B marketing and transaction efficiency. By showing the interactive effects between local cultural factors and formal contracts in international B-to-B marketing, the findings from this study should also be useful for practitioners in international marketing.

Chuang Zhang, Zhenyao Cai, Ji Li

The Reinforcing Role of Alternative Governance Strategies in Managing ICT Firms’ Partner Networks

The effective management of indirect sales channels have significant profit implications for many companies. This is true, even more so, in the information and communication technology (ICT) sector, where a significant portion of the sales for the seller go through the business partner, the reseller. An effective partner management strategy has been widely acknowledged as essential part of companies’ operating strategies in high technology markets (De Ruyter, Moorman & Lemmink, 2001). Governance refers to the regulation of a system. Partnership governance is defined as the mechanisms suppliers have in place to encourage and control the behavior and ultimately performance of its partners. Choosing effective governance mechanisms are essential for successful partner-supplier relationships (Jap & Ganesan, 2000; Li et al., 2010). The aim of this research is to extend our understanding of governance theory and to understand the most effective mix of governance mechanisms for achieving partner performance.Governance theory distinguishes between those mechanisms that are more monitoring or control based and also those that are based on influence aimed at positive reinforcement (Gilliland et al 2010; Li et al., 2010). Formal governance mechanisms are rooted in agency theory where actors need to be formally controlled through monitoring of performance and setting of clear goals (Eisenhardt, 1989). In this research we identify certification as the formal control mechanism of ICT partners. We define certification as supplier’s requirements on partner organizations for attaining proficiency and competency in the supplier’s line of products or services via a standardized formalized process.Recently research has stressed the importance of informal governance mechanisms that help parties expand the level of value created by the exchange (Burket et al., 2012). ). These indirect controls aim at achieving behavioral change by altering the partner’s perceptions (Zablah, Johnston & Bellenger, 2005). Relationship bonds, the close interpersonal relationship between a partner and its the supplier, will influence the behaviour of the partner and the supplier.We propose a 3rd type of governance mechanism that expands the notion of social ties guiding a relationship to the network of partners that the firm manages. By creating a partner community the supplier can build up a shared understanding between partners. This shared understanding will influence the behaviour of individual partners.The three governance mechanisms, as means of regulating or influencing behaviour to achieve desired goals, will have direct influences on relationship performance. However the notion of adaptive governance suggests that the effectiveness of a governance mechanism is contingent not only on the activity being governed but also on the desired outcomes of the activity (Gilliland, 2003). Therefore the influence of the governance mechanisms will not be equal across the performance dimensions. Building on contingency theory the “fit” between different governance mechanism will have an additional impact on relationship performance (Venkatraman 1989; Lee et al. 2011). Three key dimensions of relationship performance are considered: harmony, commitment and economic satisfaction.A conceptual model is built which is tested by a key informant survey. was used to test the model. Data was collected from 151 partners from leading ICT suppliers in the United Kingdom and Ireland.Direct links were found between partner relationship bonds, partner community and harmony and economic satisfaction. However these two governance mechanism did not have a direct link to relationship commitment. Social influence governance mechanisms do not increase commitment directly. Rather they increase commitment by developing the relationship. Rather commitment is increased by certification which helps lock a partner to its supplier. Surprisingly certification did not increase economic satisfaction. For economic satisfaction relationship bounds had a positive interaction with partner community but a negative one with certification showing the importance of having the correct mix of governance mechanisms.

Chris Storey

CONSUMER BEHAVIOR GENERAL

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The Effect of (IN) Congruence Between General Self-Confidence and Specific-Confidence on Intentions to Complain

Complaint behavior is triggered by a customer’s level of dissatisfaction with a product, service and/or consumption episode and leads to a range of behavioral and non-behavioral responses involving the communication of negative perceptions (Day, 1984; Singh and Howell, 1985; Rogers and Williams, 1990; Volkov, et al., 2002). Over the years, extensive research has been conducted and several individual, product and situation-specific factors have been examined as determinants of complaint behavior and type of consumers’ responses. The type of consumer response is of utmost importance to companies as responses other than voice (i.e., complaining to the company) could be more damaging to a brand and a firm’s reputation. Given that voice response is the preferred response style (e.g. see Singh, 1990), this study examines the nature and role of consumers’ general and specific confidence and assesses their impact on voice response. The rationale is that “at the heart of market exchanges lies a question of confidence” (Martinez and Santiso, 2003, p. 363) and consumer confidence is likely to hold explanatory power to both complaining behavior and choice of response style.

Emrah Oney, Antonis C Simintiras, Anita Lifen Zhao

It’s the Thoughts that Count: Substitution for Goal Striving Actions

Planning is widely regarded as a critical tool for helping consumers successfully achieve their personal finance goals. Although planning has been identified as an effective self-regulatory tool, our research demonstrates that planning is not universally beneficial. Across two studies, our results demonstrate that planning delays initiation of goal pursuit behaviors for prevention-focused consumers who have adopted avoidance goals, since they perceive the act of planning to represent legitimate goal progress. In other words, making plans regarding when, where, and how to achieve a personal finance goal under prevention fit leads consumers to perceive themselves as having started to make progress towards their goal, although they only expended cognitive goal-directed effort. In turn, this perception leads to a delay in behaviors aimed at debt reduction. This finding carries important implications for marketing practice and theory.

Jelena Spanjol, Leona Tam

The Effect of Mortality Sailence on Hedonic Consumption and Utilitarian Consumption

Based on the proximal defense notion of Terror Management Theory (TMT; Greenberg et al. 1986), the present study investigates the impact of mortality salience on hedonic and utilitarian consumption compared to no mortality threat. Terror management theory provides a theoretical explanation for behavior that is induced by death-related thoughts. This theory is based on the notion that human beings are aware, unconsciously, of the inevitable end that lies ahead. This awareness of one’s transient life combined with the human will to survive leads to an insolvable conflict often referred to as terror (Solomon et al. 1991).

I-Ling Ling, Chih-Hui Shieh

BASE OF PYRAMID/SUBSISTENCE MARKET ACTORS AND THE GLOBAL ECONOMY

Frontmatter

A Structured Abstract: Exploring Mobile Money Services as an Innovative Solution for Micro and Small Enterprises in Emerging Economies – Lessons from Rural Cambodia

Over 4 billion people, termed as the “bottom of the pyramid” (BOP), live in subsistence marketplaces with an estimated annual income below US$3,000 in local purchasing power (Hammond, et. al. 2007; Viswanathan and Rosa 2007). By the end of 2011, more than 2.5 billion adults were predicted to lack access to any formal financial services accounts to save, borrow or transact. Furthermore, it was predicted that 59% of the adult population in subsistence marketplaces lacked access to any formal financial services accounts to save, borrow or transact (Demirguc-Kunt and Klapper 2012). However, global mobile phone subscriptions accelerated from about 960 million in 2001 to about 6 billion in 2011, reaching 86% of the total global population and 75% of the subsistence marketplaces population (ITU 2012). Although lacking access to any formal financial services, the BOP can have access to mobile phones. Hence offering access to financial services using mobile phone technology called “mobile money services” can potentially transform lives within the BOP living in subsistence marketplaces by providing a convenient access to finance. The mobile phone has been widely used as a channel for providing microfinance services, hence the term defined in this research as “Mobile Money Services”. This phenomenon has since been given a range of terminologies such as mobile banking, mobile payments and mobile finance (Donner and Tellez 2008). By the end of 2012, over 150 mobile money projects are deployed in more than 70 countries (GSMA 2013).

Jeff Fang, Roslyn Russell, Supriya Singh

CROSS-FUNCTIONAL AND CROSS-DISCIPLINARY CHALLENGES AND OPPORTUNITIES

Frontmatter

Marketing Department’s Influence and Information Dissemination Within in a Firm: Evidence for an Inverted U-Shaped Relationship

The dissemination of market intelligence across an organization is a key task of a firm’s marketing department, as recognized by marketing researchers (e.g., Maltz and Kohli 1996) and practitioners (e.g., Mohr et al. 2010). They place great emphasis on market intelligence dissemination, a main component of firm’s (internal) market orientation (e.g., Jaworski and Kohli 1993), due the strategic importance (Makadok and Barney 2001) and its positive effects on the financial performance of a firm (e.g., Kumar et al. 1998). In order to enhance intelligence dissemination throughout the firm, conventional wisdom in the market orientation literature suggests marketing department’s influence within the firm as an important driver (Verhoef and Leeflang 2009). Hereby, past research (e.g., Moorman and Rust 1999; Verhoef et al. 2011) has generally assumed a positive linear relationship between marketing influence and market intelligence dissemination, and subsequently on performance. Our research, however, questions an entirely positive linear relationship. Specifically, building on social psychological research that implies that the degree of influence affects communication behavior (e.g., Keltner et al. 2003), we suggest that high marketing influence can ironically backfire. Hence, we propose that marketing influence has an inverted U- shaped relationship with market intelligence dissemination, which in turn impacts financial firm performance.The findings of two studies, using survey and experimental data, support our prediction of a U-shaped relationship between marketing influence and market intelligence dissemination. First, cross-industrial data was obtained from 194 marketing managers from several European countries via an online survey. To measure marketing influence within the firm, market intelligence dissemination, and firms’ financial performance, we used items from existing literature (cf. Moorman and Rust 1999; Luo et al. 2006; Kumar et al. 2011). To test our hypotheses, we included the quadratic term of marketing influence to examine the potential U-shaped relation in addition to the linear term. To analyze our model, we used the unconstrained model proposed by Marsh, Wen, and Hau (2006). As expected, we find a positive and significant linear effect of marketing influence on its intelligence dissemination (γ11 = .164, p < .045), while the squared term has a significant negative effect (γ11×1 = -.181, p < .01). This supports the proposed inverted U-shaped relation. Moreover, the dissemination of intelligence has a positive effect on firms’ financial performance (β21 = .204, p < .01). Moreover, we designed a second study to test for the cause-effect relationship by manipulating marketing influence because of the possibility of reversed causality between marketing influence and intelligence dissemination (cf. Verhoef and Leeflang 2009). For study 2, we recruited 105 marketing managers to take part in an online study on strategic decision making. Participants were asked to place themselves in the role of head of marketing for a fictitious company and received a market report for the specific industry. Next, we manipulated the influence of the marketing department within the firm, whereby participants were randomly assigned to a high, a medium, or a low marketing influence condition. We then asked participants how likely it was that they would disseminate the market report to another department. The results of an ANOVA revealed a significant effect of the marketing influence manipulation (F = 3.947, p < .022). Participants in the medium marketing influence condition (M = 5.16) were significantly more likely to disseminate market intelligence than those in the low (M = 4.59, F = 6.196, p < .015) and high conditions (M = 4.52, F = 5.714, p < .019). No significant differences were found between low and high marketing influence conditions. These findings support the inverted U-shaped relationship as proposed and clarify the causality between marketing influence and its intelligence dissemination. Marketing influence in fact causes the inverted U-shaped effect on intelligence dissemination.Our research contributes to and extends marketing theory in several ways. Theoretically, it extends previous research on marketing influence and market orientation by providing support for an inverted U-shaped relationship between marketing influence and its intra-organizational market intelligence dissemination. From a management perspective, our findings indicate that executives have to carefully manage the influence of the marketing department in order to reach an optimal level of collaboration and sharing of market-related information within the organization. Future research could investigate boundary conditions of the inverted U-shaped relationship (e.g., organizational strategy like short vs. long-term focus) and further outcomes of influence imbalance between organizational departments.

Martin Schmidt, Johannes Hattula, Christian Schmitz, Sven Reinecke

Cross-Functional Integration at the Frontline of the Retail Channel

Cross-functional integration has become critical in the retail industry in part because marketing events have become more complex and increasingly more dependent on frontline employees for implementation. In recent years, research has highlighted the importance of marketing and logistics managers working together for marketing execution (Esper et al., 2010; Ellinger et al., 2006), but little is known about cross-functional integration at the frontline (Arndt et al., 2012). This research explores cross-functional integration across the frontline networks of two different distribution structures within a consumer package goods (CPG) firm. Thus, the integration literature will be extended beyond the corporate or team level, to the frontline of the firm. Further, this research expands knowledge of the contexts in which cross-functional integration takes place by investigating multiple ways frontline employees interact.

Hannah J. Stolze, Diane A. Mollenkopf, Daniel J. Flint

Research on Emotions By Marketing Scholars in Last 10 Years

This study discusses the trend in emotion research within marketing during 2002 to 2011. Employing a content analysis method, this study investigated 19 marketing journals. With increasing interest on emotion, this study is expected to help scholars seeking guidance, selecting research partners and universities, and designing emotion related research.

Halimin Herjanto, Sanjaya Singh Gaur

The Ideal Marketer is an Authentic Marketer

Interest in authenticity is on the rise. Marketing literature touts authenticity as a point of differentiation (Gilmore & Pine, 2007; Leigh, Peters, & Shelton, 2006). Tourism literature continues to investigate authenticity in reference to the consumer experience (Steiner & Reisinger, 2006; Wang, 1999). Modern psychology considers what is, and what is not, authentic behaviour (Golomb, 1995; Guignon, 2002). And of course, Philosophy has been working on the question for centuries, with a resurgence in the last forty years (Trilling, 1974).Although marketing research has indicated that authentic marketing is effective, transformational and positive, defining marketing authenticity and applying it is challenging. The 360 degree authenticity approach is one way that researchers and practitioners can consider marketing in a qualitative way. Each dimension of the 360 degree model, however, is strongly linked to cultural context.

Nathalie Collins

EMPLOYEE HEALTH, SENIOR CENTER SERVICESCAPES AND TECHNOLOGY ACCEPTANCE

Frontmatter

Understanding the Decision-Making Processes Associated with Exercise

Only 37% of Australians perform exercise at a level sufficient to achieve benefits to their health (Australian Institute of Health and Welfare, 2010). As a result, a substantial proportion of the Australian population is at increased risk of developing a range of physical ailments associated with low levels of exercise, including cardiovascular disease, diabetes, cancer, and osteoporosis (Warburton, Nicol, & Bredin, 2006). Particular attention has therefore been directed towards developing and evaluating campaigns aimed at increasing rates of exercise. However, these campaigns are only likely to be successful if they adequately leverage the decision-making processes that influence exercise behaviour. Thus, the aim of this study was to better understand how Australians decide whether or not to engage in exercise.

Joshua D. Newton, Fiona J. Newton, Michael T. Ewing, Leon Piterman, Ben J. Smith, Kara M. Gilbert, Ajay Mahal

Responses to Mhealth Application on Health Behavior: A Theoretical Extension of the Technology Acceptance Model

The purpose of this study was to reveal the relationships between mHealth application and health behavior. The theoretical foundation drew on the Technology Acceptance Model as a core model. We extended our research model with dietary health behavior, relaxation health behavior, the subjective norm, and the ubiquity of mobile phones. A survey conducted in Japan using a professional research firm resulted in data from a sample of 696. We conducted structural equation modeling, and the results indicated that overall health behaviors are explained by the Technology Acceptance Model. In addition, the subjective norm and ubiquity of mobile phones demonstrated positive influences on overall health behaviors. In closing, theoretical and managerial implications are discussed, and limitations are identified.

Morikazu Hirose, Keiya Tabe

CONSUMER BEHAVIOR: FOOD ISSUES

Frontmatter

An Exploratory Analysis of Snack Food Purchasing Behaviour in New Zealand

This exploratory paper examines the factors underlying snack food purchasing. We develop exploratory research questions to examine the attributes consumers evaluate, the importance of various product claims, labels and nutritional information, for snack food purchasers. Empirical data are based on a sample of 118 New Zealand consumers drawn from a large metropolitan area using an intercept technique. Results show that consumers frequently evaluate snacks on the basis of price and taste while according the highest level of importance to cruelty free and recyclability claims. Also roughly half of the consumers read labels and amongst those that do, total fat and sugar are the two most important nutritional factors. A subsequent chi-square analysis highlights the moderating role of demographic descriptors such as age, income level, education level and gender. This exploratory paper carries fundamental implications for both snack food marketers and public health officials. We propose the need for snack food marketers and public health officials to carefully consider gender, generational and education-level differences for purposes of segmentation and targeting and also for developing public awareness campaigns.

Eldrede T. Kahiya, Sharon Forbes, Chloe Balderstone

The Influence of Personal Values and Pet Attachment on Owners’ Pet Products Pruchase Behavior

From 1997 to 2007, the pet market grew ten times and became a US $41 billion industry (Chen, Hung, and Peng, 2011). Pet owners are more attached to their pets than before is one important factor that contributes to this development (Serpell, 2003). Although this marketing is growing significantly, little is known about how pet owners consume pet-related products and services (Chen, Hung, and Peng, 2012). To narrow the gaps in the literature, this study examines how pet attachment and owners’ personal values influence their pet products purchase behavior.

Annie Chen, Norman Peng, Kuang-peng Hung

Bundled Presentation, Susceptibility to Influence and Calorie Estimation

The way in which choices are offered to consumers may affect their purchase decisions and the amounts they consume, potentially leading to harmful overspending and/or overconsumption. This research adds to the growing body of literature on how presentation can affect perceptions of food choices by examining how estimates of meal size and the accuracy of these estimates are affected by the bundling of menu items in a fast food context. Results of an experiment indicated that consumers were more likely to underestimate the calorie count of items when they were offered in a meal rather than individually, particularly for consumers who were more susceptible to interpersonal influence.

Judy Harris

If Only…? A Study on the Effects of Purchase Regret

At some point, most all consumers will experience some level of regret over a particular purchase decision. This regret may come from purchasing a product that is later determined to be a poor fit or low utility and ultimately would be deemed a poor purchase decision. This regret may also come from a missed purchase in a limited opportunity situation. Earlier studies have shown that actions are regretted more than inactions in the short run (Kahneman and Tversky 1982: Landman 1987), and that over time, action regrets tend to decrease while inaction regrets increase (Gilovich and Medvec 1995).

Kristy McManus, Piyush Kumar

HOTELS AND HOSPITALS

Frontmatter

Young Chinese Consumers’ Luxury Hotel Preference and Purchase Intention

Luxury brand market has grown considerably despite of the global financial crisis which started in 2008 (Hung et al., 2012). In the perceptions of the owners and others, luxury brands signify quality, style, reputation, and limited accessibility (Berthon, Pitt, Parent, and Berthon, 2009). However, current studies on the consumption of luxury goods mainly focused on physical goods (e.g., clothes and accessories) and few have examined service-based products. To narrow the gaps in the literature, this research explores young Chinese consumers’ intention to stay at luxury hotels when traveling.

Annie Chen, Norman Peng

How Brand Trust Mediates the Effects of Service Quality on Loyalty: An Illustration From Medical Tourism Context

The growth of the medical tourism market attracts new countries to compete for customers. Thailand, once among the top five destinations, was displaced from the list in 2010 (Tourism Review 2010). International accreditation alone is not enough to maintain competitiveness; marketing plays an important role in the maintenance of sustainable competitiveness. It is important to better understand the attitudes and behaviors of international tourists. Service marketing studies have consistently reported that, either through behaviors or attitudes, service quality, perceived value and satisfaction are correlated with loyalty (Akbar 2010; Cronin, Brady, and Hult 2000). In addition, brand trust is theoretically reported to be a key determinant of loyalty in brand relationship studies (Chaudhuri and Holbrook 2001; Delgado-Ballester and Munuera-Aleman 2001; Matzler, Grabner-Kräuter, and Bidmon. 2008). There are few studies that report on the interrelationships among these variables, although several independent studies have evaluated the service quality-value-satisfaction-loyalty model (Choi, Cho, Lee, Lee, and Kim 2004; Cronin, Brady, and Hult 2000; Wang, Lo, and Yang 2004) and the trust-loyalty model in relationship studies (Chaudhuri and Holbrook 2001; Delgado-Ballester and Munuera-Aleman 2001; Doney and Cannon 1997). Despite the well-recognized significance of all of these variables to the development of loyalty in the service market, no study has examined the interrelationships among all of these variables that could affect consumer loyalty or the mechanisms by which these variables contribute to the enhancement or reduction of loyalty. Consequently, a unified model is needed to clarify these interrelationships. This research aims to fill the above-mentioned gap in the literature. The main objective of this research is to propose brand trust is a key determinant of loyalty and a mediator between service quality and loyalty. We postulate that brand trust can reduce the impact of frustration that results from long-distance communication, language barriers, and other issues and can thus enhance medical tourism. In addition, brand trust can make the traditional service quality-loyalty model more understandable in the medical tourism context. To determine whether brand trust is a powerful mediating variable, the study compares the SEM results with those of the Cronin, Brady, and Hult (2000) service quality-loyalty model and research model (see Figure 1).

Aurathai Lertwannawit, Gulid Nak

EXCELLENCE IN INTERNATIONAL MARKETING EDUCATION

Frontmatter

Risk Aversion and Attributes of Study Abroad Programs Among Marketing Majors in the U.S. and Norway: Validation of Cross-Cultural Scales

Strong assertions have been made that study abroad students accrue important knowledge and intercultural competency that should enable them to succeed in an expanding global marketplace (Evans et al. 2008). Unfortunately, only 1 percent of U.S. students in two-year and four-year higher education programs are studying abroad during a single academic year - 273,996 out of the more than 20 million students enrolled in U.S. higher education (Institute of International Education 2012) and only 6.3% of all Norwegian higher education students studied abroad in 2002 (Statistic Norway: Education Statistics. Norwegian Students Abroad, 1 October 2002). The statistics from both countries indicate there is plenty of opportunity for a specific university to improve the participation rates of their own resident students studying abroad.Targeting international students for short-term exchanges or study is also an opportunity. It is estimated that this year international exchanges in all 50 states contributed $22.7 billion to the U.S. economy (Institute of International Education, 2012). Focusing on this opportunity can provide an opportunity for colleges to make up for decreasing enrollments (Adams, 2012), especially those public colleges that have been negatively impacted by government funding. Highlighting the opportunity to target international students, it is estimated that student mobility will nearly triple to eight million by 2025 (Wildavsky, 2010). Furthermore, by targeting more international students for short-term exchanges or short-term study in the U.S., the cultural diversity of the classroom will be enhanced academically, adding to the internationalization of the classroom.A total of 326 questionnaires were obtained including 73 from a U.S. university and 252 from a university in Norway. The demographic profiles reveal some similarities and some differences between the groups. This study collects data from the U.S. and Norway because both countries are fairly comparable in per capita GDP and other economic variables, eliminating extraneous considerations.Whether trying to improve resident student’s participation in study abroad programs or trying to attract international students to study in another country, administrators can only be successful if they understand similarities and differences between cultures. An important aspect of this research involves testing the cross-cultural validity of the data collected from the U. S. and Norway to examine Risk Aversion (RISK), Motivators of Study Abroad (MSA), and three sets of deterrents of study abroad: 1. Economic Concerns (ECON), 2. Family Friends Work (FFW), and 3. Country Concerns (COUN) scales.Findings suggest that these scales are valid in both different national contexts and can also be used to compare differences between the cultures. Adequate validity exists on the three scales (i.e., RISK, MSA, and COUN) for use in both the U.S. and Norway and the factor structure is equivalent between the groups. The loadings are very similar, suggesting full metric invariance to compare relationships between groups and the observed variable intercept terms are similar enough to compare construct means between groups with the exception of FFC. And finally the construct means for COUN is significantly lower in the Norwegian sample.

Janice Payan, Göran Svensson, Nils Høgevold

A Study of the Marketing Curriculum in Australia: The 1930S to Now

“Marketing” was first taught in Australia at a university-level was at the University of Melbourne in 1929. Nine years later a detailed syllabus was produced by the co-ordinator A.G. Whitlam. This paper presents a historical analysis of the subject and compares it to the current Principles of Marketing subject taught today. An analysis of the subject structure, syllabus, and textbooks provides an insight into the changing Marketing curriculum. From the findings marketing educators can draw on the past to help understand the marketing curriculum of today, and raise issues for marketing subjects in the future.

Robert B. Ellis, David S. Waller

Understanding College Students’ Study Abroad Motivations and Preferences

Current globalization trends and greater consumer mobility across nations has led to the world becoming cross-culturally integrated (Friedman, 2005; Hill, 2013). Businesses have increased global presence and employers are looking for candidates that in addition to core skills also possess cross-cultural skills (de Jong, Schnusenberg, and Goel, 2010). Thus higher education institutions are increasingly emphasizing global content including cultural perspectives and study abroad opportunities (American Council on Education, 2008; Relyea, Cocchiara, & Stoddard, 2008). Inspite of all these developments, the vast majority of college students do not partake in study abroad opportunities before they graduate (Institute of International Education, 2012). In light of these observations, a two-step research design was adopted to understand student motivations, expectations, preferences, and outcomes associated with studying abroad. The first step involved a series of phenomenological interviews, while the second involved an online survey.A fair number of recent research studies delve into this area and brief overview is provided here. Research suggests that the most effective way to gain cultural understanding and enhance language competency is by living in the country (Badstubner & Ecke, 2009; Rexeisen & Al-Khatib, 2009). Students who study abroad are typically motivated to broaden their horizons and obtain cultural enrichment (Sanchez, Fornerino, & Zhang, 2006; Thissen, & Ederveen, 2006). Other motivations include personal development and the desire to enhance friendships (Badstübner & Ecke, 2009; Tomcar, Reid, & Anderson, 2005). In order to establish a thorough understanding of student study abroad perceptions, 15 phenomenological interviews were conducted with students who had recently studied abroad. Subsequent analysis of interview transcripts accompanied by readings of prior research uncovered numerous attitudes, motivations, preferences, and outcomes related to study abroad.Insights from the above qualitative study were utilized to develop an online survey that contained questions pertaining to study abroad motivations (11 questions), attitudes (11 questions), and preferences (16 questions). The sampling frame comprised of 593 students enrolled at a major state university in the United States who had recently (within the last three months) expressed an interest in studying abroad. All questions utilized 7 point Likert type response formats. A total of 205 students completed the survey (68% female and 32% male). The SPSS software (Version 20) was employed to first conduct an exploratory factor analysis and then a K-means cluster analysis that yielded two clusters which are described below.The “externally-motivated familiarity seekers” cluster represents 62% of the sample. Almost 75% of male respondents fall in this cluster, compared to 57% of female respondents. In their decision to study abroad, individuals in this cluster are particularly influenced by significant others, and are not particularly motivated to acquire foreign language skills or enhance marketability via study abroad. Further, this group strongly desires programs with English language instruction, and one that has U.S. professors and students. This group also prefers short duration (1-6 weeks) programs that are U.S. administered (faculty-led or foreign campus operated by home university). Individuals in this group also prefer living arrangements shared with other U.S. students. The “inherently motivated adventure seekers” cluster represents 38% of the sample. Only 25% of male respondents fall in this cluster, compared to 43% of female respondents. A desire to broaden their horizons and seek new adventure are particular motivations for this group. This group is also motivated to study abroad as a way of self- enhancement, often in the form of acquiring/enhancing foreign language skills. Moreover, this group strongly desires programs with a wide range of offerings, abundant travel opportunities, and few U.S. faculty and students. This group also prefers longer programs (one or two semesters) administered by a foreign university. Individuals in this group also prefer to live either with a host family or in off-campus shared living with other foreign students.These findings have numerous marketing and administrative implications for institutions of higher education. A major implication is that there may be two broad segments of students based on their motivations and attitudes and what they are seeking in a study abroad program. The appropriate method to satisfy the needs of these two segments may be to offer different types of study abroad opportunities based on factors such as duration of time spent abroad, language of instruction, variety and type of travel possibilities within the program, and type of living arrangements while abroad. This can help increase student participation in study abroad programs and bring about a better student-program fit to ensure greater overall satisfaction among students, and to ultimately enhance the amount of value students get from such programs.

Swinder Janda, Bente Janda

CHALLENGES AND OPPORTUNITIES FOR LOGISTICS AND SUPPLY CHAIN MANAGEMENT

Frontmatter

What do we Really Know About What we Know? The Nature of Relationship Governance in the Reverse Supply Chain

Inter-organizational relationships have received significant attention in the marketing channels literature (Anderson and Weitz, 1992; Mohr and Spekman, 1994; Morgan and Hunt, 1994). More recently, the supply chain literature has emphasized the importance of cooperative inter-firm relationships for achieving competitive advantage (Mentzer et al., 2001; Rogers and Leuschner, 2004). While understanding supply chain relationships is important in the forward supply chain, relationships are important in the reverse supply chain as well.

Robert Frankel, Diane A. Mollenkopf, Ivan Russo, B. Jay Coleman, G. Peter Dapiran

CORPORATE REPUTATIONAL ISSUES

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Is Trust a Pre-Requisite or Outcome of Corporate Social Responsibility? A Stakeholder Theoretical Perspective

Corporate social responsibility (CSR) has been garnering increasing momentum among academic researchers and business practitioners. Previous studies have shown that positive impacts of CSR on consumers’ buying behaviors are contingent upon a number of factors. This paper extends this stream of research and proposes that trust in a company is another important pre-requisite condition (moderator), as well as a desirable outcome, of successful CSR campaigns. In particular, we disentangle trust into two distinct concepts, pre-trust and post-trust, and drawing from stakeholder theory, we explicate the role of trust in stakeholders’ CSR evaluation process in a more fine-grained manner. A conceptual model is presented, along with its implications for research and managerial practices.

Frederick Yim, Henry Fock

Drivers and Outcomes of Corporate Identity Management

In order to compete in a changing and dynamic environment many companies, develop competitive strategies grounded at the corporate level. The management of the perceptions of a corporation is emerging as a key management tool as organizations last longer than products. Corporate identity is one possible route for establishing a corporate image among audiences. Corporate identity portrays a notion of identity transposed to organizations. Such concept conveys an abstract idea suggesting that every organization has its own personality, singularity and individuality (Bernstein, 1984) – that is, its own character. Corporate identity can be a key tool for transmitting consistent images to internal and external stakeholders and has implications into business differentiation, survival and profitability (Simões et al. 2005). Corporate identity management (CIM) coveys the idea that there are dimensions of corporate identity that are possible to control and manage and that companies differ in the extent to which they manage their corporate identities. This study explores the relationship between CIM and other managerial variables. The paper attempts to theoretically ground drivers and outcomes of CIM. It proposes that CIM is the articulation of the business unit differentiation strategy and that it is a tool used by companies concerned with stakeholders (e.g., customers and employees) management. Additionally, there are business outcomes of CIM: stakeholder commitment and business performance.Dimensions of CIM. Simões et al. (2005) specified the following dimensions of corporate identity that ought to be managed internally at the business unit level: “(1) the endorsement of consistent behavior through the diffusion of a company’s mission, values, and goals; (2) the expression and pursuit of brand and image consistency in the organization’s symbols and forms of communication; and (3) the implementation, support, and maintenance of visual systems.” (p. 153). The authors reached a three-dimensional scale that measures levels of internal corporate identity management: i) mission and values dissemination; ii) consistent image implementation; and, iii) visual identity implementation.Drivers of CIM. Business strategy. Strategy involves an organization in developing an inimitable and beneficial position by relating several activities. Corporate and brand identity are considered in the literature as a source of differentiation and competitive advantage. Corporate identity is concerned with how the company comprehends itself, its behaviors and how it wants to be perceived. As such, it can be used to differentiate an organization implying a strategic link between a differentiation strategy and corporate identity. The strategy followed is, therefore, an antecedent for the level of engagement in CIM, with companies that emphasize a generic differentiation strategy tending to highlight their CIM. Stakeholder orientation. Stakeholder theory maintains that companies have responsibilities towards a variety of audiences such as stockholders, customers and employees. Stakeholder orientation can be seen as the degree to which companies take account of or try to respond to different stakeholders’ expectations. The effective management of corporate identity leads to a favorable image among an organization’s stakeholders. Consumers become more willing to buy a company’s products and employees are more predisposed to work for it. It is, therefore, proposed that companies with a higher level of stakeholder orientation tend to present higher level of CIM.Outcomes of CIM. Stakeholder commitment. Stakeholder management and CIM aim to develop positive feelings and behavior among the organization’s audiences towards the corporation. They encourage stakeholder commitment. Stakeholder commitment reflects the way in which stakeholders are continuously inclined to respond favorably towards the company. It is anticipated that companies with higher profiles and a stronger identity, image and reputation will have more committed and loyal stakeholders. CIM aims to influence stakeholders, encouraging positive behavior towards the company. Stakeholder commitment is, therefore, a potentially important outcome of a more pro-active CIM (e.g., Simões and Mason 2012). Business performance. General and specific performance outcomes have been attributed to corporate identity and/or to specific aspects of its management. For example, it has been suggested that the corporate image and/or identity affect organizational performance; has a positive effect on sales and profitability levels; and, assists business growth. Since there are controllable aspects of CI that can be managed internally, it seems reasonable to propose that companies which are more pro-active in their internal (or external) CIM will present higher levels of business performance.The over-arching effect that CI may have in companies’ existence and motion opens a wide range of research avenues. CI’s amplitude and complexity compel investigation to draw on specific perspectives and parts of its management.

Cláudia Simões

Understanding Corporate Identity of SMES: Conceptualization and Preliminary Construction of Scale

Globalization and integration of market has impacted Organizations in multiple ways. This has increased customers’ choices and degree of freedom and increased constraints on the organization in the context of business-to-customer (B2C) organizations. Corporate identity is important for consumer marketing for various reasons (see, He and Mukherjee, 2009). Organizations are pressed hard to meet changing customer expectations in a fiercely competitive environment. Further, it no longer remains the issue of just focusing on customer alone, other stakeholders like channel partners, investors are equally getting demanding. Under these conditions it becomes necessary for the organization not to be everything to everyone and loose its identity. Thus the notion of identity of an organization (corporate identity) becomes very important. Corporate identity(CI) is germane to all kind of organization irrespective of the size including Small and Medium Enterprises (SMEs) (Balmer, 2012). However, there is scarcity of empirical study on corporate identity (Melewar et al.,2005).This study constructs a reliable and valid scale of the corporate identity of SMEs in food processing sector (B2C) in India. India is one of the member countries of BRICS. BRICS members together have significance influence on regional and global affairs due to their huge market size, population, and land contribution in world GDP (BRICS Report, 2012). Therefore, India as a member of BRICS makes interesting context to this study. The interest population comprised only SMEs which meets the following selection criteria: (1) have an investment of above Rs 10 mn and below Rs 100 mn in plant and machinery (MSMED Act, 2006) or have a upper cut-off Rs 1,000 mn turnover (D&B India, 1996) (2) The organization is engaged in manufacturing and marketing of some kind of branded products in B2C segment (3) Have a legal existence either as proprietary, partnership, private limited or limited organization. The food processing sector in India is a rapidly growing sector and SMEs constitute a significant portion in terms of number of units as well as output and employment generation. Some estimates suggest that 33% of food processing sector organizations come under SMEs. Indian food processing industry is widely recognized as a ‘sunrise industry’ (NIFTEM, 2012) because of its huge growth potential. The processed food segment of the food sector in India consists of a variety of items like: Dairy products, Fruits and vegetables, Grains, Meat and Poultry, Sea food, Packaged/convenience food and Packaged drinking water/beverages. Present study comprises of representation from SMEs of all segments except sea food. This study reviews and refines the concept of corporate identity and describes the procedures for initial development and testing of an instrument that captures the essence of corporate identity in SMEs.

Upendra Kumar Maurya, P. Mishra, S. Anand, Niraj Kumar

Codes of Ethics Artifacts in Australia, Canada and Sweden: A Longitudinal Study

Based on the Partnership Model of Corporate Ethics (Wood 2002), this longitudinal study examined the measures in place to communicate the ethos of the corporate codes of ethics to internal stakeholders in three countries: Australia, Canada and Sweden. This paper reports the comparative codification of ethics amongst the top companies in these countries over three time periods: 2001-2002, 2005-2006 and 2010-2011.

Michael Callaghan, Greg Wood, Göran Svensson, Jang Singh, Svante Andersson

ADVERTISING APPEALS AND EXECUTION

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Matching Advertisement Layout with Metaphor Facilitates Comprehension

This paper seeks to advance metaphor theory in the domain of consumer behaviour by demonstrating that deep-rooted metaphors can have a measurable impact on comprehension and ad liking. Everyday expressions such as “I’m feeling up/down” reveal that people assign spatial orientations to some abstract concepts: for example, “happy is up”. In line with the view that metaphor is an integral part of our conceptual system, our results demonstrate that comprehension of advertisements is significantly facilitated when the spatial organisation of ad components (e.g., headline, product image, visuals) follows the mental spatial arrangement of their corresponding orientational metaphor. This metaphor-consistency effect was confirmed for three orientational metaphors relating to the concepts of happiness, power, and time. Although results were mixed, our findings seem to further suggest that metaphor-consistency can have an impact on attitudes towards the ad when the (metaphorically structured) concept is valued by consumers. We conclude by suggesting that metaphor research can significantly enrich advertising theory and provide the basis for questioning some well-established advertising practices.

Lampros Gkiouzepas

The Use of Childhood Icons in Nostalgic Appeals for Charity.

In the current inquiry we add to the emerging research (Ford and Merchant, 2010; Merchant, Ford and Rose, 2011; Zhou, Wildschut, Sedikides, Shi and Feng, 2011) on the influence of nostalgia on charitable donations, by examining the role of childhood icons. We contend that marketers can bank on the value of consumer memories but there are aspects, like icons, that they shouldn’t messed with when trying to appeal to the past, such as PBS’ move to promoting Cookie Monster as Veggie Monster.

Altaf Merchant, Kathryn LaTour, John B. Ford, Michael S. LaTour

Consumption Emotion, Satisfaction and Word of Mouth: A structural Study of Demographic Correlates Consumption Emotion, Satisfaction

Consumption emotions are of importance to marketing organizations as they help them to understand the consumer and therefore have some measure of control over post purchase behavior. Many previous studies have recognized that consumers’ emotions have a significant influence on customer satisfaction and behavioral intentions. Though it is accepted that women and men differ in their emotional responses there have been almost no research throwing light on how their emotional responses are different to service consumptions like watching a movie. Neither there has been research to show whether age and income play a role in creating differences in consumption emotion. This paper follows the pleasure arousal model and tries to assess whether age, income and gender play a role in causing differential effect on pleasure and arousal and thereby generating different levels of satisfaction and word of mouth for movies.

Prashant Mishra, Madhupa Bakshi

Advertising Execution Styles Matter - A Fear-Based Experiment on Attitude, Susceptibility, Efficacy and Behaviour

This study investigates whether different fear based advertising execution styles will result in significantly different levels of fear, attitude, susceptibility, efficacy and behavioural intent. A sample of 450 respondents participated in an experimental study. Three fear based execution styles, namely: slice-of-life, factual and testimonial, were tested by means of a post-test self administered questionnaire. The findings support the notion that the continuation of mass market communication strategies will prove to be ineffective to alter behaviour. More importantly this study provides evidence that different execution styles within advertisements will result in different levels of fear, attitude, susceptibility, efficacy and behavioural intent. Adding to this, there is support that certain execution styles may be better suited to different groups in terms of evoking protective behaviour.

Marlize Terblanche-Smit, Lucea van Huyssteen, Ronel du Preez

B2B CUSTOMERS AND PROCESSES: INTEGRATION, INTERACTION AND REACQUISITION

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A Framework for B2B Customer Reacquisition: Evaluating Key Determinants to Win Back Lost Customers

B2B sales organizations constantly search for opportunities to gain, retain, and grow business opportunities for their firms. Yet no matter how effective a company’s CRM program or sales process is, inevitably, some customers will defect and switch to other suppliers. Although there are well-established sales processes to guide B2B salespeople in how to acquire new accounts and maintain customer relationships, few firms have formal win back strategy with procedures to diagnose loses and identify determinants in order to guide and train salespersons for regaining valuable lost customers. Left untrained, salespeople often deal with the problem of lost customers by re-approaching the lost customer without any advice, seeking ad hoc advice from peers or managers, or simply ignoring the lost account. The economic importance of reacquiring valuable lost customers in the B2B sector, along with the need to integrate reacquisition as the strategic second half of CRM warrants a systematic research to build a conceptual framework for B2B customer reacquisition. The current research integrates prior literature in relationship marketing, B2B sales, and service recovery to develop a conceptual framework for B2B customer reacquisition. Using critical incident techniques (CIT), our pretest study with eighteen B2B sales executives provides anecdotal evidence, and helps develop hypotheses and refine the proposed framework for future research.Contributing to the B2B marketing and sales literature, this study is among the first to empirically investigate the processes for reacquisition efforts in B2B organizations and to propose a framework for identifying key determinants to win back valuable lost customers. The final results of this paper will provide new information to aid sales executives to: (1) identify critical salespersons’ qualities and sales skills for reacquisition efforts that can be integrated in training and selection programs; (2) develop effective organizational relationship and support strategies to regain profitable business; and (3) identify types of customer defections and apply appropriate strategies to win them back. Adding to a more complete strategic understanding of CRM, the proposed conceptual framework can enable sales organizations to actively manage customers’ experiences and firms’ reputations based on the added knowledge of the determinants for customer defection and reacquisition.

Annie H. Liu, Mark P. Leach, Lou E. Pelton

Role of Ethical Integration in the Effect of a Service Provider on the Outsourcing Organisation’s Reputation – A Structured Abstract

Logistics activities are increasingly outsourced by organisations looking to cut costs and increase efficiency and quality around the undertaking of the task (Razzaque & Sheng, 1998). Prior literature typically examines the effect of logistics outsourcing on the outsourcing organisation’s performance (Jiang et al., 2007). However, the current literature indicates a lack of understanding of how the outsourcing organisation’s reputation is affected by logistics outsourcing (Lange, Lee and Dai, 2011). This is an important outcome for the outsourcing organisation to consider as it will affect its ability to do business in the future.

Violet Lazarevic, Margaret Jekanyika Matanda

A Social Identity Perspective of Customer Value Heterogeneity in Complex Industrial Solutions

Most industrial marketing literature embodies the assumption that value creation and delivery result in outcomes that occur at the firm level. While this may be so, few studies consider the impacts on individual actors of this subjective and phenomenological concept. Drawing on social identity theory, I build an argument in this paper that the participation and consequent perceptions of value delivery processes depend on the specific roles and social positions on individual participants through this process. I develop four archetypical social identities (overseer, thinker, project implementer and technical implementer) and explore their relationship with value creation and delivery processes. I source data through case studies of complex solutions in the Australian context.

Daniel D Prior

MARKETING MODELS

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Customer Churn Models: A Comparison of Probability and Data Mining Approaches

As markets become increasingly saturated, astute companies acknowledge that their business strategies should focus on identifying those customers who are likely to churn (Hadden, Tiwari, Roy, & Ruta, 2007). Since net returns on investments for retention strategies are generally higher than for acquisitions, it is generally accepted that companies should concentrate their marketing resources to keep existing customers rather than to attract new ones (Colgate & Danaher, 2000). This calls for models capable of making accurate predictions about consumers’ behavior in a future time period. Such models should be able to specify which customers in a dataset have a higher probability to churn in a given future time period. Literature on churn modeling reveals that predictive models fall into one of two categories, namely probability modeling and data mining modeling. Although many studies from both of these streams have focused on developing models to predict and identify customer churn, to the best of our knowledge, none of them have compared the performance of these modeling approaches in terms of accuracy in identifying and predicting customer churn.

Ali Tamaddoni Jahromi, Stanislav Stakhovych, Michael Ewing

It’s the Strength of the Ties: How Multiplex Social Networks Among Frontline Employees Drive Service Performance

The service marketing literature has focused its efforts on individual influencing factors and dyadic relationships to explain frontline employees’ customer service behaviour and performance. This paper argues and demonstrates that this scope is too limited, as service employee behaviour and performance is not independent from the broader set of relationships surrounding them. We introduce a social network perspective to the analysis of service performance and distinguish between weaker simple ties and stronger multiplex ties consisting of advice and friendship relations in the studied branch networks of a major Australian bank. We find that it is the density of multiplex ties that predicts the performance-relevant value of social networks in a service setting. This effect is moderated by branch network size so that for larger branches the existence of dense multiplex ties increases performance more strongly than for smaller branches.

Miriam Guenther, Peter Guenther, Simon J. Bell, Garry L. Robins

BRANDS, PURCHASE INTENTION AND LOYALTY

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Factors Affecting Brand Loyalty Among Malaysian Consumers in Their Choice of Mobile Phone Brands

Brand loyalty is the means with which consumers express their affective connection with a brand; a key factor in brand selection. Brand loyalty has been described by Keller (2003) as ‘brand resonance’, which refers to the relationship between the brand and its customers and the extent to which the customer feels they are aligned with the brand. Customers, with true brand resonance, have a high degree of loyalty, actively seek means to interact with the brand and share their experience with others or even recommend the brand to others. In other words, brand recognition and loyalty ultimately depends upon consumer brand resonance. A review of the extant literature reveals there are many factors affecting brand loyalty (Lau et al, 2006). These factors include brand name (e.g. Aaker, 1991,: Aaker and Joachmisthaler, 2000; Keller, 2003), brand design (Lindstrom, 1992; Roth and Romeo, 2005; Vincent, 2005) perceived quality (e.g., Boulding et al, 1993; Fornell, 1992; Yoo and Donthu, 2000), price (e.g., Keller, 1993; Teas and Argawal, 2000) and promotion (Czerniawski and Maloney, 1999; Gupta, 1993).Due to the expansion of the mobile phone market through competition, cheaper handset prices, cheaper calling and messaging rates, the smart phone penetration rate in Malaysia reached 128.7 percent in the first quarter of 2012 (Digital Malaysia, 2012). In this competitively intense environment mobile phone manufacturers are keenly interested in where they should focus their resources in building brand resonance. This study proposes and tests a five-factor model that explains the variations in the choice of mobile phone brands among Malaysian consumers. The findings provide evidence that brand loyalty towards the purchase of a mobile hand set is significantly associated with brand name and perceived quality, whereas other factors like brand design, price and promotion were found to be statistically insignificant predictors in influencing brand loyalty. It is concluded that the results of the present study are consistent with the studies of Lau et al. (2006) and Wong and Sidek (2008), where two factors have emerged as the most significant factors that positively influenced brand loyalty which are brand name and perceived quality. This is despite each of these apriori studies being in the vastly different industry contexts of sportswear. It had been expected that the highly tangible, and relatively less complicated nature of sports apparel, would have engendered a different result. Our study makes a contribution to the literature in two of ways. First, by understanding the antecedent factors that influence brand loyalty among Malaysian consumers mobile handset manufacturers are better able to develop an offering suited to the demands of the market. Second, the findings of the study indicate that marketing managers should concentrate their efforts on building brand loyalty which will contribute positively to a firm’s brand equity, gain higher market share, new customers, supporting brand extensions, reducing marketing costs and strengthen the brand position among competing brands.One limitation of this study is that the respondents were drawn from a sample of Malaysian consumers based in Kuala Lumpur. Respondents from rural areas of Malaysia with lower incomes and less choice of retailers from which to purchase mobile phones, may exhibit different attitudes towards brand name and brand loyalty. Further, other brand related factors such as brand reputation and brand trust were not considered in this research and could be included as brand loyalty measures in future studies.

Bel Lew Lee Peng, Brian C. Imrie, Nicholas Grigoriou

SALES MANAGEMENT ISSUES

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Active Waiting: An Investigation of Delayed Winback Strategies

Regardless of how effective a company’s sales process or CRM program is, inevitably, some customers will defect and switch to alternative suppliers. When customers defect, it typically is not a rash decision, but the result of a well thought out evaluation. Thus, effective reacquisition strategies are likely to involve an assessment of buying decision cycles and current relations with buying center members (some of which may have recently turned sour). Thereby, the best course of action may include simply letting some time transpire; sales organizations may find that active waiting can facilitate a stronger win-back position at some future time. Using critical incident techniques (CIT), this study qualitatively examines the reacquisition strategies of fifty industrial salespeople and specifically attempts to understand why salespeople strategically decide to wait as part of their comprehensive win-back strategy for lost customers. Interviews from salespeople who utilized a delay strategy suggest that this does not mean that the customer is ignored. Instead, thoughtful and consistent contact facilitates and lays the groundwork for future reacquisition efforts. When a delay strategy is required or chosen, our findings suggest that it is due to one or a combination of five reasons: (1) allow customer time to “cool down”, (2) allow customer to change personnel or buying influence in the buying center, (3) allow time for the replacement supplier to falter, (4) dedicate time and efforts to coordinate with the customer’s buying cycle, (5) actively improve capabilities and/or implement personnel change in the sales organization.Contributing to the relationship marketing and sales literature, this study is one of the first to empirically investigate delayed strategies to regain valuable lost customers. The findings from our in-depth interviews afford insights to help sales executives to: (1) better understand customers’ capacity and internal process for switching back, (2) develop effective buyer-seller relationship and support strategies to regain profitable business, and (3) allow sales organizations the discernments and patience to actively wait for the best time to regain lost customers.

Mark P. Leach, Annie H. Liu, Sijun Wang

A Cross Cultural Investigation of the Stereotype for Salespeople

The purpose of this research is to investigate the image of salespeople and of the selling function as perceived by business students across several cultures. Of the several empirical investigations that exist in the sales literature, most consider samples from a single country. A quantitative survey conducted on students living in five countries (Cameroon, France, Japan Mexico and United States) was implemented. A significant culture effect was observed on salesperson’s image, feelings in presence of a salesperson as well as perception of a career in sales. The implications of the findings are discussed for sales education, hiring practices, and research.

Christophe Fournier, Emmanuel Chéron, John F Tanner, Pierre J Bikanda, Jorge A. Wise

Managing Control Expectations in Business-To-Business Relationships

Control is a frequently discussed human characteristic that is often expressed as an individual’s need to showcase his/her competence, superiority, and mastery over an individual, a group of people, or the environment (White 1959). Control has been examined extensively in the psychology literature, yet marketing research has yet to examine the role that control plays in business-to-business relational exchanges. Although power and dependence have been carefully examined, the impact of control on relational and transactional exchanges has yet to be explored. Previous research has examined antecedents and outcomes of desire for control. This research examines desire for control in the business-to-business context, specifically the relationship between the supplier and the retailer, where traditionally the buyer (retailer) is more likely to have a higher desire for control in the relationship. This study examines the dimensions of the buyer-supplier relationship that might reduce the retailer’s desire for control.

Ryan Mullins, Adam Rapp, Lauren Skinner Beitelspacher, Dhruv Grewal

CREATING VALUE IN RELATIONSHIPS

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Service Dominant Logic – An Example of Competitive Advantage

Value and the concept of value co-creation in marketing networks are growing in importance in providing competitive advantage in increasingly saturated markets. Service-Dominant logic (S-D logic) revolves around the concept that value is always co-created by customers and organizations together (Gronroos, 2006; Vargo and Lusch, 2004; 2008). This study provides a conceptual framework around the topic of co-creation, and identifies customer value creating processes, supplier value creating processes and encounter processes within a single case study of a pharmaceutical organization (called PharmCo for this study). This organization has successfully created its own competitive space, achieving 34% market growth, year-on-year, over a seven-year period. The paper summarizes some of the key conditions of service dominant logic (Ballantyne & Varey, 2007), including value in use, stakeholder interaction, co-creation and the role of integrated networks, the role of the marketer as managing communication, interaction and relationships, between networks of co-operators.Organizations with a service-dominated culture will create networks of supporting suppliers thereby enabling stronger solutions to be offered to customers (Sheth and Sharma, 2008). Value is always determined by the customer and co-created in the joint interaction (service) between buyer and seller (Vargo and Lusch, 2004). Co-creation of value is not simply inviting the customer to take part in the product development, but actually integrates the organization’s offering into the lives of their customers (Payne et al., 2008). Co-creation at PharmCo took place in the ‘disease space’, within the network of relationships surrounding the patient, aimed at supporting the patient. Culture has been identified as a management opportunity to optimize human resources to improve business performance and is an attribute that is not easy to copy (Ogbonna and Harris, 2002). Culture may be employed to develop appropriate behaviors and attitudes in employees by focusing them on a set of meaningful and unified objectives (Chatman and Cha, 2003) leading to competitive advantage. The staff at PharmCo were encouraged to carry a small credit card-sized checklist summarizing what the organization’s values and paradigm, including the purpose of ‘providing life-transforming treatment’.PharmCo realized that product alone would not solve the patient’s problems and to help them beat their addition they created a network of expertise that the patient and their medical practitioners could access through a communications website. Exchange networks, typified by the interaction model and the role of actors, processes, bonds and resources, may be developed with external agencies and become part of organizational/marketing activities in service-dominated organizations (Lian and Laing, 2007). These networks may rely on a range of variables, e.g. social, power, diffusion, economic, and knowledge management, but all are based in communication ties (Katz and Lazer, 2002). PharmCo set up a value creation network, which is comprised of at least 36 distinct entities. Value was jointly created as members of the network, which is an organic and open-ended entity, because it grows and develops as the disease space evolves, delivered higher levels of service to the patient. The members of the network understanding the reason why they participate in the network, and underpins this with an understanding of how their interaction can support the patient to everyone’s advantage.The importance of the culture and the guiding principle of the focus to patient treatment have been emphasized, rather than the more direct commercial emphasis on selling products. This is very much a direct contrast to the conventional pharmaceutical business model, which involves large sales forces calling on physicians in order to “detail” the benefits of their particular medication and to encourage sales. Not only have PharmCo developed a very different approach in the context of the pharmaceutical industry they have also created a unique competitive advantage, which has been achieved through: The building of relationships through dialogue to create a network that is sustained by a common vision. Managers focused on providing comprehensive solutions to customers’ needs, and competing in the “problem space” rather than the “marketplace”. Marketing collateral is being used to resource the network, measure and provides the route to continual improvement. Network members understanding why and how they create and deliver value, and a relentless focus to providing customer solutions create the vision for the organization.

Kenneth Le Meunier-FitzHugh, Leslie Le Meunier-FitzHugh, Roger Palmer, Moria Clark, Neil Hair

Developing New Business Relationships: An Outside-In Perspective

There is a considerable body of research on ongoing customer-supplier relationships in business markets, but empirical research on the development of new business relationships and early stages of business relationships is more limited (Edvardsson et al., 2008). The initial phase of development of a business relationship appears to pose specific problems with important consequences for marketing and management of business relationships (Aaboen et al., 2011; Gadde et al., 2012). The relationship marketing literature in general implies that development of new customer-supplier relationships tends to be intentional and results from the identification of exchange opportunities and the development of an economically convenient offering (Gummesson, 1996; Sheth & Parvatiyar, 1995). In contrast research dealing with business relationships has shown that the initial phases of a business relationship are often “chaotic” for the managers involved on both sides and the development often takes unexpected directions. This aspect of the customer-supplier relationship development is rather neglected in the general relationship marketing literature. Since business relationships develop as a sequence of interactions that take place between two counterparts (Holmlund, 2004), an investigation of interaction processes is required to understand how new relationships start. In this paper we report a case study describing the interaction processes when business relationships are initiated and illustrates how contextual factors affect the process. Exploring the development of a business relationship between previously unconnected businesses we focus on the role played in relationship development by exogenous factors.

Antonella La Rocca, Andrea Perna, Albert Caruana, Ivan Snehota

Inter-Firm Knowledge Sharing Effectiveness: An Empirical Examination of Adaptation Ambidexterity

As more firms outsource non-core operational functions and as they create alliances to develop new products, inter-firm knowledge sharing (IKS) based on relationship-specific adaptation (RSA) becomes more and more important. Employing ambidexterity and learning theory, this study surveyed 108 managers of high-tech firms to determine if ambidexterity helps RSA improve IKS. Moderated regression results show positive effects of adaptation balance, negative effects of adaption integration, and positive moderation of relational norms on balance and positive effects of loose coupling of the system.

Binh H. Nguyen, Gary L. Frankwick, Karen E. Flaherty

Exploring SMEs Perception and Trust Toward HRIS for a Sustainable HRM Performance: Case Study of SMEs in Vietnam

Small and Medium Enterprises (SMEs) currently play an important and pivotal role in all countries, especially in developing nations. They are also key factors in terms of reducing unemployment. Therefore, how to manage human resources in the most optimal way (e.g. saving human energy along with high performance and bringing out expected outcomes) is one of the serious concerns of such enterprises. Human Resource Information Systems (HRIS), an innovative HRM solution, have become known as a support system for sustainably driving HRM development. Hence, enhancing trust of SMEs toward HRIS is necessary for a sustainable HRM performance. Accordingly, this study aims to explore SMEs’ perception and trust toward HRIS in Vietnam. This is one of the first qualitative pilot research studies on such an issue in Vietnam. In this research, DeltaQual? research technique, a Nielsen proprietary qualitative product, was applied to conduct and analyze 10 In-Depth Interviews (IDIs), which were carried out with high-profile respondents (e.g. top managers) of SMEs in Vietnam.

Nguyen Ngoc Duc

When Rural Entrepreneurial Marketing Does not Work: The Case of OTOP Failure in Thailand

Marketing scholarship continues to theorise about the significance of marketing resources to firm-level success, and resources are commonly viewed as the source of competitive advantage (Day & Wensley, 1988; Aaker, 1989; Webster, 1992; O’Donnell et al., 2002; Morgan el at., 2009). Businesses which effectively and efficiently deploy and exploit their market-based assets are assumed to be better placed at attaining superior business performance (Morgan & Vorhies, 2005). However, the input of firm resources to competitive advantage has generally been theorised and empirically examined in the context of large companies. Less frequent are discussions about resources in small firms and entrepreneurial ventures (O’Donnell et al., 2002). These issues deserve empirical testing, though, since entrepreneurship plays a substantial role in economic development and contributes to rural communities (Beaulieu, 2002; Emery et al., 2003; Levitte, 2004; Grey & Collins-Williams, 2006; Steinberg et al., 2010). In Thailand, promoting rural entrepreneurship has been one of the government’s main aims during the past decade, with the number of Thai entrepreneurs and rural enterprises increasing steadily (Tongboonrawd & Sukpradit, 2007). This paper empirically evaluates one programme aimed at encouraging rural entrepreneurship in Thailand, One Tambon One Product (OTOP), by interviewing key stakeholders in three rural communities located close to Bangkok which have been involved in the OTOP programme for the past four years. Interviews with OTOP programme managers, entrepreneurs, and employees reveal sources and consequences of the successful and unsuccessful deployment of marketing resources by entrepreneurs who participate in the OTOP programme. Factors affecting entrepreneurship difficulties and failure have been identified, including problems in attracting human resources and capital. Less frequently reported findings about entrepreneurs’ attitudes and behaviour are also explored. The investigation of the nature and sources of failure and the proposed framework of rural entrepreneurial failure seek to contribute to a fuller understanding of entrepreneurial marketing theory.

Edward Kasabov, Pitchaya Panupattanapong

Channel Integration: An Explanation According to David Teece’s Theory of the Boundaries of the Firm

Decisions about the degree of channel integration are a critical component of any manufacturer’s marketing channel strategy. At one extreme, the manufacturer can integrate forward and perform the distribution function itself, by establishing a sales subsidiary. At the other extreme, the manufacturer can choose not to perform this function, using, instead, independent distributors (Klein, Frazier, and Roth 1990; Aulakh and Kotabe 1997).Over the last 30 years, transaction cost theory (TCT), proposed by Oliver Williamson (1975, 1985, 1986, 1999), has emerged as one of the dominant theoretical lenses through which to explain channel integration decisions (cf. John and Reve 2010; Rindfleisch et al. 2010). Empirical studies have provided considerable support for TCT’s hypothesized effects on asset specificity; that is, the specificity of asset distribution has a positive impact on the degree of channel integration (e.g., Anderson and Schmittlein 1984; Anderson and Coughlan 1987; John and Weitz 1988; Klein, Frazier, and Roth 1990).Although the positive effects of asset specificity on channel integration are well documented in empirical studies, several unanswered questions remain that deserve further examination. Among them, the one pointed out by resource-based view (RBV) and capabilities theory (CT) scholars is as follows. Traditional TCT assumes, implicitly, that governance decisions are determined, largely, by the characteristics of a transaction (e.g., asset specificity). This assumption undervalues the role of the firm’s and the market’s idiosyncratic resources and capabilities of production (e.g., appropriability regime, interdependence of complementary activities, and thinness of the market). In addition to efficiency concerns about economizing transaction costs, governance decisions may also be influenced by strategic concerns about leveraging or protecting valuable resources and capabilities (Rindfleisch et al. 2010).Over the last 15 years, a growing number of scholars have examined governance decisions using TCT and RBV/CT. This study focuses on David Teece’s (1986, 2006, 2007a, b, 2010a, b) theory of the boundaries of the firm, and explains channel integration decisions using Teece’s theory.Teece’s theory argues that a firm not only economizes transaction costs but also develops and deploys capabilities for the creation and management of productive know-how. It builds a capabilities dimension into the Williamson theory (Teece 2010a). The characteristic argument is that interaction effects between the appropriability regime and asset specificity and between interdependence of complementary activities and thinness of the market impact the boundaries of the firm (Teece 1986, 2006; Chesbrough and Teece 1996).Based on the argument, we propose two hypotheses in this study to explain channel integration: H1: The interaction between the weakness of the appropriability regime and the specificity of distribution assets enhances the degree of channel integration.H2: The interaction between the interdependence of production and distribution activities and the thinness of the distribution market enhances the degree of channel integration.In empirically testing such interaction effects, in this study, two-stage least squares (2SLS) regression employing the SYSLIN procedure in SAS was used (cf. Bollen and Paxton 1998; Im, Hussain, and Sengupta 2008). Data for the study were collected through a survey of Japanese manufacturers. The sample included manufacturers of general machinery, electrical appliances, and transport machinery. In total, we received 105 usable surveys. The results from the 2SLS regression analysis supported the study’s two hypotheses. In the regression model, the adjusted R2 statistic equaled 0.22, and it was statistically significant at the 0.01 level of overall significance. The coefficient of weakness of the appropriability regime × the specificity of distribution assets was positive and statistically significant at p < 0.01, indicating a positive interaction effect on channel integration. Also, the coefficient of interdependence of production and distribution activities × the thinness of the distribution market was positive and statistically significant at p < 0.01, also indicating a positive interaction effect on channel integration.

Hidesuke Takata

Relationship of Line Extension Brand and Parent Brand in the Eyes of Consumers

In the fiercely competitive CPG market, which has already matured, more and more new products are introduced based on the line-extension strategy. According to Aaker, for example, 89% of new products released in the U.S. are line-extension products. According to Lomax et al., line-extension products account for 95% of new products in the U.K. However, line extension has not been studied much, particularly, studies where the effect of line extension was confirmed by data of an actual brand, not by quoting an experiment involving a fictitious line-extension product, are scarce. Also not any studies are available that focus on how the consumer’s psychology changes before and after the release of a line-extension product. This paper looked at three actual cases of line extension, each involving a confectionary brand, and used data from the first survey on parent brands before line extension, and from the second survey on parent brands and line-extension brands after line extension in order to confirm the following from the consumer’s viewpoint: 1) different evaluation items used when selecting a line extension whose parent brand had high brand equity and a line-extension brand whose parent brand didn’t have high brand equity; and 2) degree of mutual influence of the line-extension brand and parent brand.The first survey was conducted on 15 confectionary brands in November 2010. Two thousand women in their 20s to 50s, who purchased a product in the confectionary category at least once a month, were surveyed. The survey covered a total of nine items: the recognition, interest, purchase experience, intent for next purchase, image, purpose and commitment of/in/to the 15 brands. The second survey was conducted in March 2012 to the same subjects who had been surveyed in the first one. The survey covered a total of 18 brands including the same 15 brands surveyed in the first one, plus three brands introduced to the market as line-extension brands on October 2011. The survey items were the same as those in the first survey, to which questions regarding the relationships of three line-extension brands and their parent brands were added (refer to Table 1 for the questions). Data of 1,307 subjects who responded to both the first and second surveys was analyzed.As a result, trial purchases of a line-extension brand whose parent brand had high brand equity were significantly influenced by the brand equity of the parent brand, but a line-extension brand whose parent brand had low brand equity was influenced by ads, in-store exposure and other factors having influence on the ordinary introduction of a new product. It was also found that those who purchased an extension brand whose parent brand they had purchased before exhibited a higher evaluation of the parent brand following the purchase of the extension brand; those who did not purchase an extension brand despite having purchased its parent brand had an odd feeling toward the extension brand; and that those who only purchased an extension brand without having ever purchased its parent brand before felt the extension brand matched the needs of the times more than the parent brand and the competitive brands such people considered were also different.The implications of this study are summarized below:1) If the parent brand has brand power, strength of the equity of the parent brand is one reason its line-extension product is selected. However, if a brand whose parent brand has no brand power implements line extension, ads and in-store display are among the reasons for selecting the extension brand. 2)The following two are the key points whether the loyal users of the parent brand purchase its line-extension brand or not: whether or not the consumer has an odd feeling toward the line- extension brand relative to the parent brand; and whether or not the tradition of the parent brand is expected to be diluted. 3) The group of subjects who did not purchase the parent brand but purchased its line-extension brand represents the customers who switched from a rival brand to which the parent brand had lost out.

Akira Shimizu

SOCIAL MEDIA MARKETING

Frontmatter

The Impact of Social Media Marketing on the Relationship Among Dynamic Capabilities and Performance

Online social networks have become the fastest growing phenomenon on the Internet and firms are beginning to take advantage of them as a marketing tool. However, the strategic importance of social media marketing still seems not clear, given the novelty and the difficulty of measuring their impact on business performance. This study uses data from 191 Spanish firms from several sectors, to measure the impact of the intensity of use of social media marketing on the relationship among the dynamic capabilities of market orientation and entrepreneurial orientation, and business performance. The results provide evidence that supports the moderating effects of social media marketing intensity on the strength of the mentioned relations and the importance of a strong and committed marketing strategy on digital social networks for any kind of business.

Felipe Uribe Saavedra, Joan Llonch Andreu, Josep Rialp Criado

The Influence of Social Presence on Online Purchase Intention: An Experiment with Different Product Types

Internet shopping is one of the fastest growing forms of shopping, however, many consumers search websites with the intention to purchase but then abandon the process before the sale has been concluded (Eastlick, Lotz, Shim & Warrington, 2001:398). General online sales figures have not increased as greatly as one would expect (Flavian & Guinaliu, 2006:602). Online social presence has been identified as a key influencing factor in online consumer behaviour. This study considers social presence, trust, perceived usefulness and privacy concerns as influencers on consumers’ online purchase intention. The contribution of this study lies in its investigation of the interplay between social presence and product type in its influence on online purchase intention and online trust. With an experimental design, we find that social presence has an influence on online purchase intention (OPI) and online trust, but that the relationship between social presence and OPI is moderated by the type of online product. This extended abstract first briefly addresses the background of the study, and the relevant hypotheses and conceptual model is provided. Thereafter the methodology is discussed and the findings of the PLS-SEM provided.

Elsamari Botha, Mignon Reyneke

‘On the Go’ VS ‘On the Spot’: The Segmentation of Digital Natives

To understand behavior in the era of mobile digital natives, one must also observe and comprehend the holistic nature of complementary usage across devices. This research study represents a fresh perspective, as it not only examines the digital native in terms of product and technical considerations but is also more aligned towards assessing the differences in usage contexts for various types of mobile device users. A contextual understanding of the behavior of digital natives would provide a better frame of reference.This study found that the two important variables that should be considered as segmentation variables are (1) time availability and (2) the type of online activity in which an individual was participating. Availability of time (On The Go vs On The Spot) influenced the preference towards more practical devices. Different type of activity such as shopping or social networking also dictates different type of devices.

Amalia E. Maulana, Lexi Z. Hikmah

EXPLORING ETHICAL CONSUMER BEHAVIOR

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From Green to Ethical Consumers: What Really Motivates Consumers to Buy Ethical Products?

Ethical consumers have evolved from boycotting to consuming and ethical consumption has attracted much attention from marketing researchers recently. Several studies have been conducted to understand what motivates consumers to buy certain ethical products such as fair trade, eco-friendly or animal-friendly. While a number of disparate, and primarily descriptive, studies have identified motivations of ethical consumers towards an array of different products and in a variety of contexts, researchers are yet to develop a more generalizable framework for understanding ethical consumption motivations. In this paper, we present a framework of four universal motivations to explain why consumers buy ethical products.

Eliane Karsaklian, Anthony Fee

The Effect of Animal Protection Advertising on Opposition to the Slaughter of Wildlife and Willingness to Boycott the Offending Industry: Initial and Carryover Effects

During the last decade, concerns for both the welfare and rights of animals have moved into the mainstream (Severson 2007; Siebert 2010; Singer 2006). Accordingly, it comes as no surprise that we have observed an increase in the number of individuals who disapprove of all sport fishing, hunting, and trapping activities (Arlinghaus et al. 2012). The Canadian and Namibian seal hunts, for example, have been drawing growing criticism for years (Smith 2011; UPI 2012), as have the Japanese whale and dolphin hunts (McCurry 2009; Morell 2008).Even though research has shown that media coverage can affect public perceptions and therefore the choices consumers make (Kalaitzandonakes, Marks and Vickner 2004), empirical examination of the effect of media coverage on consumer choices as they relate to animal welfare and animal rights has—to date—mainly focused on concerns relating to farm animals (Tonsor and Olynk 2011). Hardly any empirical research to date has examined whether advertising focusing on animal cruelty, animal welfare, and animal rights issues has a comparable effect (for a notable exception, see Richards, Allender and Fang 2011). Thus, the purpose of the current study is five-fold. First, it examines not the effect of media attention but rather the effect of advertising on consumer choices and behaviors. Second, in addition to testing the impact of the ad itself, the study examines the actions taken by viewers to learn more about the issue. A third purpose of the present study is to add another focus to animal welfare issues, specifically as they relate to wildlife rather than farm animals. Fourth, the current research examines whether consumers are willing to boycott the industry that is involved in the cruel acts shown in the ad. And fifth, it measures and compares the initial and carryover effects of the advertisement. Consequently, the present study is the first to date to measure the effectiveness as well as carryover effects of an animal protection advertisement on consumer opposition to perceived animal cruelty and willingness to boycott the offending party.The video ad used in the current study had been developed by Harpseals.org with the goal to raise awareness about the Canadian seal hunt, and to increase opposition to the seal hunt as well as participation in the Canadian Seafood Boycott (see http://www.harpseals.org/resources/toolbox/video_audio/harpseals_flash_video.php). The ad shows scenes of the seal hunt, including material that shows a sealer about to club a harp seal pup with a hakapik (a club with a hook at its tip), and the bodies of dead seals scattered across the ice. The goal of the boycott is to permanently end the annual Canadian Seal Hunt. The data for Waves 1 and 2 were collected online via a web panel provided by Global Market Insite, Inc. (GMI). After the initial opposition to the egregious acts was measured, respondents viewed the ad, and then asked again about their opposition to the egregious act as well as their willingness to boycott the offending industry. Approximately two months later, a follow-up study examined whether the respondents’ opposition to the egregious act and their participation in the boycott against the offending industry were still impacted by the advertisement they had watched during the first wave of data collection.The findings show that the level of opposition to the egregious acts—although it had leveled off in two months—was still significantly higher (42%) than before respondents had seen the advertisement. The findings further illustrate that the single exposure to the ad boosted boycott participation by 479%.

Karin Braunsberger

Reframing The Ethical Consumption ‘Gap’

Mainstream consumers are increasingly expressing concerns about the ethicality of their consumption choices upon the environment, animals and/or society (De Pelsmacker, Driesen, & Rayp, 2005; Shaw & Shui, 2002). Yet, the reality is that there is a ‘gap’ between ethically-minded consumers’ intentions and the extent to which these are expressed at the cash register (Auger & Devinney, 2007; Szmigin, Carrigan, & McEachern, 2009). A growing body of research attempts to understand ethical purchase decision-making (e.g De Pelsmaker et al., 2005; Vermeir & Verbeke, 2008), but focuses mainly on the formation of ethical purchase intentions. A handful of studies do go beyond ethical consumer intentions to explore the ethical consumption intention-behaviour ‘gap’, but these focus solely on the role of the consumer in the creation of this gap – such as social desirability bias (Auger and Devinney, 2007), rationalisation and neutralisation (Chatzidakis, Hibbert, & Smith, 2007; Szmigin et al., 2009), and cognitive and situational factors (Carrington et al., 2010). A significant dimension of the ethical consumption ‘gap’ that is yet to be explored, however, in the role of firms and their marketing managers in the co-creation of this gap.

Michal Carrington, Benjamin Neville

Emerging Segments in Ethical Consumption: Young Adults and Cosmetics

Young adult consumers represent one of the most promising market segments when considering ethical and sustainable consumerism. They embody the next generation of consumers and will potentially support the spread of ethical stances in the future. The present study explores young adults’ orientation towards sustainable and ethical consumption, focusing on a particular product category, i.e. natural, organic and ethical cosmetics. Through the analysis of 14 focus group discussions, the study is aimed at (1) better understanding the perceptions about product features, price levels, distribution, and communication activities of this product category, and (2) exploring the role of natural, organic and ethical cosmetics in the process of identity formation for young adults. Findings suggest that the consumption of ethical products has several implications for the process of identity formation, in particular the analysis highlights two alternative orientations towards ethical and sustainable cosmetics. These differences in sensitivity towards ethical and sustainable issues reflect a divergent perception of product ethicality, providing some crucial insights into cutting-edge issues that need to be addressed both by theory and practice.

Francesca Montagnini, Isabella Maggioni, Roberta Sebastiani

EMPOWERING CUSTOMERS: CO-CREATION, PARTICIPATION AND SELF-SERVICE INITIATIVES

Frontmatter

Co-Creation in a Service Innovation Context

In the recent past, research on innovation was primarily concerned with processes which were initiated, executed and managed by the provider themselves. Unique skills were developed internally by the organizations and kept secret from the market until launch (Chesbrough 2003). More recently, organizations have realized the importance of collaborating with other actors to advance their capabilities and innovation competencies (Camarinha-Matos 2009; Chen, Tsou and Ching 2011). Current approaches to innovation embrace a multi-actor approach and a paradigm shift has occurred from closed innovation to collaborative and open innovation (Greer and Lei 2012). Aligned with Prahalad and Ramaswamy’s (2000) concept of ‘co-creation’, scholars have started to examine the collaborative role of customers in innovation. While there has been a focus in past on integrating lead users into the innovation process (e.g. von Hippel 1986; Herstatt and von Hippel 1992), more research is needed on general customer innovation and community innovation contributions, particularly in a service context. Attention has accordingly shifted from the tangible aspects of product innovation to the co-produced innovation process and the co-created value between an organization and its customers. Understanding how this notion can be harnessed for the purposes of innovating service and service solutions, is a current managerial and academic challenge (Ordanini and Parasuraman 2011). This paper addresses calls for a greater understanding of the involvement of customers in service innovation and argues for collaborative behaviors to drive service innovation performance. The specific behaviors exhibited by customers in this process will be investigated by way of the proposed co-creation construct and its behavioral manifestations (Yi and Gong 2012).Although customer participation in and contribution to the service innovation experience has been advocated for many years (Greer and Lei 2012), the collaborative behaviors are not well understood (Alam 2011; Ngo and O’Cass 2012). The collaborative process itself is recognized to require learning and knowledge transfer (Ordanini and Parasuraman 2011; Ojanen and Hallikas 2009; Payne et al. 2008), lead user collaboration (von Hippel 2005), participative design (Buur and Matthews 2008), transformational leadership (O’Cass and Sok 2012) and the presence of trust and empathy (Etgar 2008). Etgar (2008) describes co-production as customers participating in the performance of various activities within the production process; however despite this focus, there is no framework explicating the co-production behaviors exhibited by customers during this process. Nonetheless, Yi and Gong (2012) recently introduced a set of ‘Customer Value Co-Creation Behaviors’, which might also serve the purpose of collaborative service innovation. Yi and Gong (2012) conceptualized and operationalized customer value co-creation behaviors by way of eight dimensions: information seeking, information sharing, responsible behavior, personal interaction, feedback, advocacy, helping, and tolerance. Modeled as a third-order customer value co-creation construct, the first four of these dimensions are linked to a second-order Customer Participation Behavior construct, whereas the remaining four dimensions are part of a second-order Customer Citizenship Behavior construct. While these co-creation behaviors are believed to be generically relevant in co-constructing meaningful experiences, the question is how far these behaviors are also relevant in a service innovation context.This paper argues that both Customer Participation Behavior and Customer Citizenship Behaviors play an essential role in effective and efficient joint service innovation processes. This paper contributes by providing a perspective on the behaviors required to facilitate service innovation. It takes each of the co-creation behaviors proposed by Yi and Gong (2012) and demonstrates their potential influence on collaborative service innovation. This significantly fosters our understanding of the process of co-innovation and its potential contribution to service innovation performance. We also present a set of research propositions that align customer co-innovation activities with relevant outcomes in a nomological network. Ultimately, higher levels of co-creative behaviors proposed by Yi and Gong (2012) are expected to lead to higher service innovation performance. However, the link between these constructs and potential contingency factors has not been studied empirically in a consumer context and needs to be investigated and validated.

Shikha Sharma, Jodie Conduit, Ingo Oswald Karpen, Sally Rao Hill, Francis Farrelly

Zur Zeit gratis

Potential Dimensions of Customer Co–Creation

Customer co-creation—the active involvement of customers in a firm’s new product development (NPD) processes—has been shown to improve product quality, reduce the risk of a product failing (Shah 2006; Carbonell, Rodriguez-Escudero and Pujari 2009), and, ultimately, enable firms to achieve a sustainable competitive advantage (Prahalad and Ramaswamy 2004). To date, the open innovation literature (Chesbrough 2003; Chesbrough, Vanhaverbeke and West 2006) has largely adopted a universalistic perspective of co-creation, whereby customer co-creation is treated as an one-dimensional, undifferentiated concept. In a first step towards a more differentiated perspective, the study reported in this paper examines whether dimensions exist that are fundamental (i.e., core) to customer co-creation practice. If such dimensions exist, then it would be possible to explore in follow-up studies whether different co-creation archetypes can be identified by observing if there are any systematic variations in the manifestations of the dimensions in co-creation practice.

Max Theilacker, Bryan A. Lukas, Charles C. Snow

Customer Satisfaction and Purchase Behavior: The Role of Customer Input

Prior work emphasizes the role of satisfaction and positive word-of-mouth in affecting customer behavior. This research introduces customer input as an additional important mediating variable and driver of actual customer behavior. Specifically, we combine survey-based data with behavioral data to show that the impact of satisfaction on customer behavior is fully mediated by customer input, while word of mouth acts as a partial mediator in the satisfaction-customer behavior relationship. We thus reveal that the effect of customer satisfaction on actual behavior is contingent on levels of customer input. Furthermore, we demonstrate that satisfaction affects customer input, which ultimately leads to greater future customer purchase from a firm. The results of the study empirically demonstrate that customer participation plays an important role in understanding how satisfaction influences actual customer purchasing behavior.

Andreas Eisingerich, Omar Merlo, Jan Heide, Paul Tracey

ADVERTISING IN THE AGE OF SOCIAL MEDIA

Frontmatter

Internet Users’ Attidutes Towards Advertising on Facebook

Web 2.0 has created new ways of communicating and searching for information and products via social media, which include social networking sites (SNS) such as Facebook, Blogger, Twitter, and video sharing sites such as YouTube. Statistics show that SNS and blogs account for 23% of the time Americans spend on the Internet (Nielsen, 2011). Females between the ages of 18-34 outweigh males as the most active social networkers, making up the majority of visitors on SNS and blogs (Nielsen, 2011). Currently, there are more than 150 SNS; in May 2011, Facebook was ranked first, with over 140 million unique visitors in the US, followed by Blogger and Twitter (Nielsen, 2011). The rate of penetration of companies in the online social networking scene has increased dramatically in the last few years. Companies use SNS as advertising platforms. Recent statistics show that, in the US, advertising spending on SNS is expected to reach $3 billion, an increase of 55% compared to 2010 (eMarketer, 2011). This figure is expected to rise by almost a third in 2012, and reach $4 billion (eMarketer, 2011). In the UK, advertising spending on social media (for banner ads) accounted for £240m in 2011 (IAB UK, 2012). Statistics also show that Facebook’s global revenues from advertising are expected to reach $5.7 billion in 2012, while MySpace’s worldwide ad revenues are expected to reach $156 million in 2012 (eMarketer, 2011). This study examines attitudes towards Facebook sponsored ads by modelling key determinants including Facebook users’ attitude towards advertising on Facebook, their attitude towards Facebook and their level of attention.

Nina Michaelidou, Caroline Moraes

Consumer Emotional Responses to Emotional Appeal Advertising Within an Online Social Network Context

Online social networking sites are the newest media used by advertising and they play a critical role in helping companies to communicate with online communities. This study demonstrates that emotional responses to advertising cannot be ignored; rather, they warrant a company’s full attention. The different emotional responses of followers provide an opportunity for companies to understand and address the followers’ issues. In addition, emotional responses produce different behavioral impacts.

Halimin Herjanto, Sanjaya Singh Gaur, Sheau-Fen Yap

The Impact of Company Facebook Page on Wom Communication of New Product

Online channels, especially social network sites have been widely used since they have allowed their users to connect with other people based on common interest. The technology of social media has created new tools and opportunities for marketing. Facebook as the most popular social media network can be used successfully by companies of all sizes as the main tool of establishing brand community. Online brand communities increase the dialogue between the customer and the company. Although brand community has been a topic of interest for marketing literature in recent years, the studies about company Facebook page as brand community are limited. The purpose of this study is to understand underlying motives to use the company Facebook pages through brand community commitment in the perspective of new product word-of-mouth (WOM) behavior. After a qualitative study provided comprehensive understanding of the main issues, a quantitative research was conducted on Facebook fans of a selected company that uses actively social media in marketing applications. The findings aim to contribute to marketing field by filling the gap in related area and offering valuable implications to marketing managers who utilize online brand community as their new marketing channel.

Melek Demiray, Sebnem Burnaz

NON PROFIT MARKETING: ADVANCING STRATEGIES AND POLICIESNON PROFIT MARKETING: ADVANCING STRATEGIES AND POLICIES

Frontmatter

Countering Counterfeit Branding: An Understanding Incorporating Mimesis and Cultural Appropriation for Emerging Markets

Brands designate the most valuable asset that many firms possess, and the associated brand equity is usually the result of years of development efforts. Yet so many brands are becoming increasingly threatened by the worldwide phenomenon of brand counterfeiting (Lai and Zaichkowsky, 1999), whereby counterfeits or imitations of the brands are sold often to unwary consumers as the original. This problem already grasps both developed and developing countries which leads to serious economic, social, and political problem that threaten the lives of unsuspecting consumers, wreaks economic havoc, and weakens consumer confidence in branded products. The global market value of the counterfeit industry is $600 billion, with a growth rate of 1700% over the past 10 years (U.S. Department of State, 2008). The majority of the research on counterfeiting has focused its attention on individual level consumers’ motivation towards counterfeit brands applying theories such as “reasoned action” (Woolley and Eining 2006), “planned behavior” (Chang 1998), “expected utility” (Peace et al. 2003), and “ethical decision making” (Wagner and Sanders 2001). However, no research till now has considered counterfeiting through the conceptual lens of culture. This paper responds to persistent calls for research that goes beyond current dominant perspectives and supports a broader view of counterfeit branding. We have introduced a novel approach of cultural appropriation and the theory of mimesis to understand motivations towards counterfeit brands. Our proposed framework suggests that the concept of mimesis can offer an enhanced perspective to understand consumer motivations in regard to products, supply, sell, buy and use of counterfeits. This study incorporates six derived policies and actions (Cooperative, Collective, Strategic, Performative, Conventional and Covert) to educate both consumers and counterfeiters against this negative behaviour.

Tanvir Ahmed, Gillian Sullivan Mort

Coopetition (Contemporaneous Cooperation and Competition) Among Nonprofit Arts Organizations

Coopetition (cooperation among organizations and individuals which may, in other contexts, view each other as competitors) is a concept that suggests that organizations with mutual interests can cooperate profitably at one level while competing at another. Ray Noorda, CEO of Novell, coined the term and proposed that often, in order to achieve strategic growth in an organization or industry, “You have to cooperate and compete at the same time.” Coopetition is viewed as an important research area in marketing strategy because of its potential to improve profitability and competitive advantage. This study broadens research on coopetition to an arena in which it has not yet been formally studied and quantitatively assessed - the nonprofit arts subsector, assessing its manifestation in that environment with both qualitative and quantitative studies.Academic literature on the concept of cooperation between competitors has its roots in game theory research dating from the 1940s and the work of Hamel et al. (1989). Brandenberger and Nalebuff formalized the idea of coopetition as a strategic management/marketing concept in their 1996 best-selling book. In 1999, Sheth and Sisodia, Varadarajan and Jayachandran, and Day and Montgomery called, in separate articles, for more research on the topic. However, over a dozen years later, relatively little academic work has addressed the topic. Research on coopetition during that period has focused primarily in the areas of information technology and industrial network organizations. This study answers the call for additional research on the concept in a very different arena. The concept of coopetition as a synergistic phenomenon has important implications for the nonprofit arts sector that extend beyond the individual paradoxical constructs of competition and cooperation. In a field that has historically stressed artistic and operational competitive advantage, but struggled with chronic funding and scarce resource issues, the assertion that the best strategy often involves cooperation with competitors and the potential to achieve results greater than the sum of inputs, with multiple winners, is a powerful one for nonprofit arts organizations.This research has two primary components: (1) exploration, with an in-depth qualitative study, of the nature and extent of cooperation among competitors in the nonprofit arts arena, and (2) assessment, with a significant quantitative study, of coopetition using a relatively homogeneous segment of nonprofit arts organizations: symphony orchestras. Coopetition was evaluated in terms of two constructs: artistic coopetition and operational/marketing/fund development coopetition. Measures of coopetition included coopetition intensity, and range and volume of cooperative efforts. Consequences related to coopetition included perceived organizational financial performance and organizational effectiveness.The qualitative study explored the nature of coopetition, components of the theoretical model, and related key variables in the context of nonprofit arts organizations. The sample for the study included eleven Executive Directors (or their equivalents) of a variety of types of nonprofit arts organizations located within the geographic area of Hampton Roads, Virginia, which includes 1.7 million people in nine cities and seven counties and comprises the 34th largest Metropolitan Statistical Area (MSA) in the U.S. Individual structured, guided interviews were completed with the study participants, using a 21-item format developed to elicit feedback on concepts and related variables suggested by prior research. Finalization and operationalization of the model and component factors assessed in the quantitative study were based on the results of the qualitative study. Six latent constructs contained in the conceptual model of coopetition and its consequences were measured by 43 items in an 80-item questionnaire which was mailed to the executive directors of the entire population of 888 orchestras which were members of the League of American Orchestras. 266 of the 283 returned responses were complete and used for analysis, yielding an effective response rate of 30%. The data was analyzed using AMOS structural equation modeling software. After revision of the model based on the results and theoretical support, confirmatory factor analysis and valuation of structural components of the model indicated support for all of the hypothesed relationships.The results of both studies indicate that executive directors of non-profit arts organizations cooperate with their peers in varying degrees in multiple areas (operational, marketing, fund development, and artistic), with generally positive financial and organizational results. There is significant potential for these organizations to leverage potential benefits of cooperation, on a carefully-evaluated case-by-case basis, when analysis indicates that win-win, mutually beneficial opportunities exist.

Theresa A. Kirchner, John B. Ford, Edward P. Markowski

Sustainability Living in a Carbon Priced Economy: Trade-Offs in Purchasing and Practices and Sustainability Guilt

Sustainable consumer behaviour is a complex and emergent concept, and involves progress toward creating a more sustainable society. Recent changes in government policy in Australia provide a new context for sustainability consumption. However, little research appears to address how consumers make decisions and carry out practices to realise their own sustainability values from day to day in the context of a society or economy publicly committed to sustainability via a carbon tax, which may also have the influence of not only changing social mores but also social norms regarding sustainability. This paper focuses on how sustainability concerned consumers make their contribution to sustainability living. It finds that consumers ‘trade off purchase and actions. This paper further uncovers how consumers are increasingly experiencing guilt in regard to their sustainable behaviour.

Menuka Jayaratne, Gillian Sullivan-Mort

What’s in a Name? A Systems Thinking Framework for Resource Types in Nonprofit Marketing

This paper presents a framework that helps researchers and practitioners to consider the types and nature of resources in the not for profit domain. The framework draws from the existing literature and includes theoretical and practical considerations. Measurement of outcomes in the third sector is problematic, often due to the multiplicity of theoretical domains contributing to the sector. Integral to the third sector is the need to maximize the use of scarce resources to achieve social good, activities that can extend well beyond that of fundraising.Whilst the application of segmentation is still debated within some areas of the sector, recent research supports its use. Interactants in the NPO exchange system will each have differing motivations for participating in the exchange. However, typing by motivation is a form of ‘micro’ segmentation. While micro-segmentation is important for attracting a particular individual or designing a promotion strategy, this does not assist in broader thinking about what ‘customers’ want and therefore what are the appropriate resource acquisition strategies. The dilemma for the NPO is how to identify, not only the motivations, but to also calculate the transaction costs for the interactants in the system.For the purposes of clarity, in this paper we are only interested in ‘customers’ who contribute to the resources of an organization, and therefore are not at the receiving end of the resource system (beneficiaries or recipients). Extant work considers ‘customers’ in categories such as ‘volunteer’, ‘donor’, ‘philanthropist’, however we argue that these labels can be misleading when trying to segment the resource ‘market’ as each of these labels have connotations that may not match the broader motivations for contributing to an NPO. Unsurprisingly it is not the demographic characteristics that are the most useful discriminants. For greater applicability and transference across NPO contexts more abstract dimensions are required.Building on prior literature and discussions with NPO practitioners we established that there are four primary dimensions for considering the resource system of an NPO in terms of inputs and desired outcomes. The first of these is ‘Accountability’, that is how important it is that the organization accounts for what they do with the resource*. The second is ‘Relationship Requirements’, which is the level of ongoing contact the giver* wants from the organization. The third is ‘Locus of Reward’, which refers to the extent to which the giver expects direct benefit or is more altruistic. The final dimension is ‘Planning Requirements’, which refers to the amount of prior thought, or level of spontaneity, that goes into the resource contribution.Considering the dimensions of Planning Requirements and Locus of Reward four segments can be identified; Considerates, Deliberates, Responders and Casuals. Consideration of the other two dimensions results in another four segments; Commercials, Shareholders, Believers and Detached.The development of this typology will help practitioners in two ways. Firstly it provides a targeting tool that allows the NPO to focus their resource acquisition activities on those segments whose broad needs they can readily fulfill. Secondly it provides guidance for the development of strategies to help acquire and satisfy the targeted

Erica Brady, Linda Brennan

MARKETING IN ASIA: BRANDING AND WORD OF MOUTH

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Direct Experience and Emotional Attachment to Brands: Protecting Brands From the Negative Word of Mouth Opinion of Japanese Consumers

Today, the need to build “strong” brands seems increasingly important for companies, since consumers read many negative, as well as positive, word-of-mouth (WOM) messages about brands on the Internet. A “strong” brand in this study refers to a trademark that is resistant to adverse events, such as negative WOM communications and product defects. Consumers with strong brand attitudes will not abandon their positive assessments easily and will continue to buy a product, even if they hear adverse opinions about it. How can companies build such strong brand attitudes? This study empirically verifies that an attitude based on emotional attachment with direct product experience (e.g., product trials) plays a more important role in creating a strong brand than those based on pride or product functionality.

Yoko Sugitani

Ability of The Information-Leader to Create Topics of Conversation and Purchase Decision-Making

In recent years, it appears that the process in which the consumer obtains information on a new product, recognizes the product and then puts it in his or her consideration set as a candidate for purchase is changing along with the popularity of Twitter, Facebook and other SNSs. The new flow is for the consumer to identify a given product as a candidate for purchase not only through recognition but also after talking about it with acquaintances and friends and realizing that: “The person I trust ‘likes’ the product,” “Everyone is talking about the product” and the like. It is also considered that information-leader types of consumers, who are good at creating topics of conversation, have a greater tendency to make a given product a candidate for purchase. Given the above, this study focused on the ability of the information-leader group to create topics of conversation and revealed how their recognition of a new product and their talk about it actually affected their purchase decision-making. Actual analysis found that a key to a given product being considered more as a candidate for purchase was for the product to be talked about, particularly among consumers who are like information leaders. For a company to introduce a new product and make consumers identify it as a candidate for purchase, it is necessary to implement a communication strategy that starts with the creation of topics of conversation by consumers who are like information leaders and considers how to make them talk about the product.The analysis used the response data related to a brand evaluation included in CANVASS 2011, which was researched by Yomiuri Advertising Company in October 2011. The respondents in this brand evaluation were segmented according to the level of sensitivity to information, into five groups--“nose for news,” “open ears,” “crowd ears,” “empty ears” and “poor hearing”--from the highest to lowest degree of sensitivity to information. This analysis focuses on the two groups--“open ears” and “crowd ears”--from among the five groups. The “open ears” group consists of consumers who are interested in diverse topics, including home, hobbies and health. They are also very interested in society, environment and communities, and they actively absorb various kinds of information and send out summaries. Market mavens belong to this group. The “crowd ears” group is the largest among the five groups and represents a group of average consumers. It was considered appropriate to compare with the “crowd ears” group, which is an average consumer group, in evaluating the condition of the “open ears” group. The new products covered by this analysis comprised 13 brands belonging to six categories: ponzu (ponzu source), cup noodles, yogurt, soda, functional drink and sparkling liquor/new category, all of which were released in March 2010 or later. The analysis used four questions regarding ad recognition (a brand whose ads are seen often), in-store recognition (a brand often seen in stores), topic of conversation (a brand talked about with family, friends, etc.) and consideration (a candidate brand for the next purchase). For each brand, each question was given an answer of “1” if the statement was true or an answer of “0” if not.The analysis found the following points: 1)Consumers who are like information leaders, such as those who belong to the “open ears” group, are more likely to talk about a new product as compared to general consumers like those who belong to the “crowd ears” group. 2)Consumers who talk about a new product are more likely to consider the product as compared to consumers who only recognize the product. 3)The likelihood of considering a new product after talking about it increases further in the “open ears” group. These results have the following implications: 1)For a company to introduce a new product and make consumers identify it as a candidate for purchase, it is not sufficient to only implement a communication strategy designed to have consumers recognize the product. 2)Going forward, a communication strategy must be implemented that induces consumers to talk about the product and make it a topic of conversation among consumers. 3)When implementing this strategy, it is necessary to approach consumers who are like information leaders and potential generators of conversation instead of approaching all consumers equally.

Takashi Teramoto

The Effects of Health Claims and Symbolic Mark: A Case of Foshu (Food for Specified Health Uses) in Japan

Informative messages on product packages—especially on packages of food products—should be credible. Otherwise, the firm might experience a serious fall in brand equity. However, because nutrition intake and health promotion are “credence attributes”, it is difficult for consumers to evaluate them. Moreover, if nutrition message or health claims were false or puffery, consumers might suffer a serious health damage.Regarding the problem mentioned above, in 1991, Japanese Government took the initiative in the world by introducing the FoSHU (Foods for Specified Health Uses) system—a license system in which the government tries to control all health claims on packages of food products launched in the country.It should be noted that there are two factors which can be appeared on packages only with the permission of Japanese Government. One is health claims, of course, and the other is the “FoSHU seal”—a symbolic mark designed for FoSHU foods. Interestingly, these two licensed factors may have different effects on perceived product value in health. In this research, we conducted two studies to examine the difference of the effects on product value in health.The results of ANOVA with a consumer dataset showed that consumer evaluations of FoSHU food brands are not affected by health claims. It is because health claims have external effects on evaluations of alternative food brands in the same category. On the other hand, unlike health claims, the FoSHU seal has a strong signaling effect on evaluations of the particular food brands. It is because that FoSHU food brands can be successfully differentiated from non-FoSHU food brands in the same category. However, at the same time, introduction of a FoSHU product also significantly improve consumer evaluations of alternative brands. It means the FoSHU seal also has an external effect.

Makoto Ono, Akinori Ono

Co-Creation of Service Brand Meaning: Initial Findings from an Exploration of Bank Branding in the Vietnamese Retail Banking Sector

Much of the extant literature on brand meaning co-creation suggests the importance of managing the knowledge of various actors and brand constituting factors that influence the co-creation of brand meaning. However, there is no apparent discussion on how to manage the identification of brand constituting factors and knowledge exchange between various actors. The purpose of this research is to explore the co-creation process and propose a conceptual framework for brand meaning co-creation with multiple actors. Preliminary analysis of banking customer interviews reveals a range of factors relevant to brand meaning co-creation. Additionally, there is an emerging picture from the data of variant brand narratives developing between the customers, front-line staff and brand managers involved in this ongoing pilot study and other actors such as peers and family.

Kieran Tierney, Kate Westberg, Ingo O. Karpen

CO-CREATION AND SERVICE STRATEGIES

Frontmatter

Co-Creation: Conceptualization and Research Implications

Research in the domain of value co-creation has progressed extensively over the last twelve years, but the conceptualization of value co-creation is still equivocal. We try to fill this important gap through a systematic review of the co-creation research that appeared in leading Marketing journals during the period 2000-2013. We used the keyword search for the word co-creation and its different variations in the ABI/INFORMS - Proquest and Business Source Complete (EBSCO) databases. After initial round of screening, we reviewed around 175 papers.The review is organized into three major sections. The first section discusses the progression of the field – for example, the dominant contributors to the field, the key domains of application of co-creation concept across firms and consumers, the major research methods, research context, and sample characteristics. We conclude this section by highlighting the allied and emerging areas of application of the construct and by subsequently trying to map the potential growth of the field. In the second section we systematically analyzed the content on co-creation that was created from the reviewed papers. We create a complex typology of constructs and their adjacent labels and classify them as the antecedent, consequents, mediators, and moderators in the nomological net of co-creation. Additionally, we are able to explicate the concept of co-creation and offer a conceptual framework for the process of co-creation. The third section concludes this review by problematizing some of the assumption and pluralities in the understanding of co-creation. We offer four areas of novel research inquiries - one each in the area of process of co-creation, the phenomenon of exploitation of consumers, the over-emphasis of consumer interaction and the arising need for non-traditional organizational forms, and the related issue of skill and capabilities of consumers.

Kumar Rakesh Ranjan, Shainesh G.

None of the Glory: The Implications of Customer Attributions of Credit in Successful Co-Productive Service Experiences

Up to sixty-five percent of satisfied customers have been found to abandon their current service provider and switch to a competing service provider (Reichheld 1996). This finding is troubling considering the widely held belief that satisfied customers are inclined to be loyal customers (Fornell 1992), where they are more likely to make purchases from, spread positive word of mouth about, and have difficulty leaving their service provider (Reichheld and Sasser, Jr. 1990). One possible explanation for this change in the behavior of satisfied customers is the change in the nature of the relationship between customers and their service providers. Traditionally, the relationship between a service provider and their customers was one where the service provider was viewed as responsible for producing the service and the customer was viewed as responsible for simply consuming the service (Vargo and Lusch 2004).

Ryan C. White, Clay M. Voorhees, Brian L. Bourdeau, Jessica J. Hoppner

Congruence in The Positioning of Service Brands: An Empirical Examination

In view of the relatively high cost to produce extensive advertising campaigns, it is essential that marketing managers and advertising executives justify whether consumers accurately perceive positioning strategies that appear in marketing communications (Fill 1999; Schultz 2006) and whether their adopted positioning strategies are consistent with the former and the latter. While positioning activities and the determination of congruence in terms of management’s adopted positioning strategies, the firm’s actual positioning practices and target consumers’ perceptions are pivotal for the success of the brand in the marketplace (see Porter 1996; Schultz 2006), it is worrisome to realize that congruence in the positioning deliberation of service brands appear to have eluded marketing scholars’ attention (Rigger 1995). Therefore, we infer that the main concern in evaluating the effectiveness of the offerings’ positions in the marketplace ought to be whether the firm has achieved congruence between management activities and the target audience’s perceptions (Park et al. 1986; Hooley et al. 2004; Blankson 2008). Although this dearth in knowledge about congruence in the positioning activities of service brands is now receiving attention (Blankson 2004; Blankson and Kalafatis 2007a), given this state of meagre empirical research, congruence in positioning deliberation is in danger of being under-researched (Pollay 1985; Piercy 2005). This lacuna underscores the timely need for this study.In order to examine congruence between adopted, communicated and perceived positioning strategies, an appropriate typology is required. However, in the absence of empirically derived consumer-generated positioning strategies (Aaker and Shansby 1982; Crawford 1985; Ries and Trout 1986; Easingwood and Mahajan 1989), the call for, and appreciation of, consumer-based positioning strategies (Dibb et al. 1997; Fill 1999; Burton and Easingwood 2006) and criticisms levelled against extant typologies of positioning strategies (Kalafatis et al. 2000; Blankson and Kalafatis 2001), it was decided to adopt the generic, i.e., appropriate for services and goods, consumer-derived typology of positioning strategies put forward by Blankson and Kalafatis (2004). This typology was developed following established psychometric and scale development guidelines. In addition, the rationale for adopting this generic typology of positioning strategies stems from the fact that it has been applied in managerial/corporate contexts (i.e., positioning adopted by managers) (Kalafatis et al. 2000; Blankson et al. 2008) and consumer contexts (i.e., consumers’ perceptions of firms’ positioning strategies) (Blankson and Kalafatis 2007a, b) and exhibits reliability. Moreover, the typology has been found to possess explanatory power, having been applied in the UK services industry (Blankson 2004).The overall reliability of the 29 items supporting the eight dimensions is high at .875 on the Cronbach coefficient Alpha. In addition, the item-total correlations for the 29 items are acceptable with each item above the cut-off point of .3. We tested the individual dimensions and they exhibit moderate to high internal consistency [“top of the range” = .887; “service” = .894; “value for money” = .813; “reliability” = .736; “attractiveness” = .829; “country of origin” = .681; “the brand name” = .710; “selectivity” = .664]. The validity of the research was tested through content, convergent, and predictive validity. Concerning content validity, the measures developed for the positioning constructs were derived from an exhaustive step by step approach that involved examination of the relevant literature, followed by generation of statements, pre-testing of the questionnaire, and underwent detailed evaluations by academicians and experts in the industry. Convergent validity was tested through exploratory factor analysis where the identified latent factors can be seen as underlying dimensions of the research construct. Previous research on this topic has been limited. However, congruence in the positioning of service brands is an important research agenda for both marketing scholars and practitioners. This study has made contribution to the subject of congruence in service brands’ positioning—an important research agenda that was proposed to the research community by Hooley et al. (2001, p.514–515) when they noted that the various dimensions of competitive positioning have not been researched empirically and warrant more detailed study.

Charles Blankson, Stavros Kalafatis, Markos Tsogas, Stanley Coffie

CONSUMER BEHAVIOR: TELECOMS

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Towards an Understanding of The Motivations to Play Games on Smartphones

Smartphones are rapidly becoming ubiquitous personal items that continue to evolve and shape our consumption experiences through the applications (apps) used on them, almost half of which are games. The mobile game ‘Angry Birds’ has been downloaded over one billion times. These consumption patterns continue to define what is fast becoming an ‘emerging ludic society’ (Kallio, Mäyrä, & Kaipainen, 2011) and implications for marketers lie in the growing area of gamification (Deterding, Dixon, & Khaled, 2011). Video gaming is now a social norm (Kallio et al., 2011; Mäyrä, 2008). This research seeks to fill a gap in the consumer behaviour literature by providing a conceptual model to explain motivation as the antecedents of play on smartphones. Since the continuing cultural penetration of video games is inevitable, employing new theoretical models and empirically exploring these domains becomes ever more important in order to inform more effective health and education interventions as well as advancing the basic science of humans at play (Przybylski, Rigby, & Ryan, 2010).

Brian McCauley, Foula Kopanidis, Francis Farrelly

It’s Personal, It’s Not Business: The Effects of Moods on Advertisements Recall

The study of mood states is extensive in the literature, providing both consistent and contradictory findings. The question remains, however, why and how mood states affect the ability to recall advertisements presented in low involvement situations. Specifically, the purpose of this study is to investigate the effect of mood states on the ability to recall central and peripheral cues in the low involvement situations. The contributions of the study are (1) to be the first to explain mood effects on recall ability in low involvement (to the best of author’s knowledge), (2) to identify evidence of how advertisements should be projected to maximize viewers’ information recall, and (3) to provide practitioners additional guidelines in executing marketing strategies. The results support dual processing model, but refute theory of affect-as-information. Specifically, recalls of advertisements represented in central or peripheral routes are indifferent when accompanying positive mood states. In contrast to some studies, negative mood states recall less central cues than peripheral cues. This finding is both consistent and contradictory to recent studies, rendering additional future research on negative mood state.

Thuy D. Nguyen, Waros Ngamsiriudom, Lou Pelton

The Role of Product Personalization in Effects of Self-Congruity Versus Functional Congruity

Generally, consumers can get three types of benefits from brands (Aaker 1996; Keller 2003): functional, experiential, and symbolic. How to deliver these benefits more effectively than competitors is a critical challenge faced by companies that wish to build successful brands and maintain long-term consumer-brand relationships. To shed light on this managerial problem, much research focuses on the relationship between brand benefits and consumer behavior, such as the research on self-congruity and functional congruity (e.g., Aaker 1999; Kressmann et al. 2006; Sirgy et al. 1991; Wysong et al. 2002). Self-congruity refers to the extent to which a brand’s personality (image) matches a consumer’s self-concept (self-image), which is relevant to the symbolic benefits of a brand (Kressmann et al. 2006; Sirgy et al. 1991; Sirgy et al. 2000). Functional congruity is related to a brand’s functional benefits (Sirgy et al. 1991) and refers to the extent to which the functional attributes of a brand meet a consumer’s expectations “regarding how the product should perform to accomplish the focal or central goal of the product.” (Kressmann et al. 2006, p957) Many scholars have examined the impact of self-congruity and functional congruity on brand evaluation and brand loyalty (e.g., Aaker 1999; Kressmann, et al. 2006; Sirgy et al. 1991). However, the effects of such congruities on consumers’ trust in a brand have received little attention.Moreover, Sirgy (1980) examines the moderating role of product personalization in the effect of self-congruity on product preference and purchase intent; this effect is shown to be stronger for products with high personalization than for products with low personalization. Sirgy (1980) defines product personalization as the extent to which a product shows an image of the user or has symbolic associations. Products associated with a strong image of the user have high personalization and are considered as value-expressive products; while products associated with a weak user-image have low personalization and are thought of as utilitarian-expressive products (Locander and Spivey 1978). However, little research has investigated the influence of product personalization on the effects of self-congruity versus functional congruity. Although Sirgy et al. (1991) indicate that functional congruity is a stronger predictor of consumer behavior (e.g., store loyalty, brand attitude, purchase intent) than self-congruity, it is still not clear whether this finding holds across all products and all situations.Our study contributes to the two aforementioned aspects by exploring the effects of self-congruity versus functional congruity on brand trust for products with different levels of personalization. We conducted two experiments and the results indicate that both self-congruity and functional congruity lead to heightened brand trust and functional congruity has a greater impact on brand trust than self-congruity for both value-expressive products (with high personalization) and utilitarian products (with low personalization), which supports the finding of Sirgy et al. (1991). Furthermore, for utilitarian products, the stronger influence of functional congruity is shown to not be influenced by the time horizon of a consumer’s purchase decision.These findings suggest that communicating brand personality in a way that is consistent with target consumers’ personality attributes and meeting their expectations of product performance will contribute to building their trust in the brand. For both utilitarian and value-expressive products, in order to be successful, companies should make every effort to offer consumers’ desired functional benefits better than their competitors. Additionally, communicating the congruence of a brand’s personality with a consumer’s self-concept is also important for developing brand equity and a long-term consumer-brand relationship, especially for value-expressive products.

Wenling Wang, Rajneesh Suri, Shan Feng

CONSUMER RESPONSES TO SUSTAINABILITY ISSUES

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What does Sustainable Consumption Really Mean? A Three-Dimensional Measurement Approach

The importance of understanding consumers’ perceptions of sustainable consumption is increasingly recognized in marketing and consumer research (Prothero et al. 2011). Sustainable consumption patterns have been extensively investigated over several decades by behavioral and social scientists (a review is given by Burgess et al. 2003). Even though the understanding of sustainability is commonly grounded on the triple bottom line approach (Elkington 1997), a one-dimensional operationalization has often been applied in previous empirical research (Bohlen, Schlegelmilch, and Diamantopoulos 1993).While individual scales to measure the environmental (e.g., Kaiser, Wolfing, and Fuhrer 1999), social (e.g., Sen and Bhattacharya 2001), and economic (e.g., Cowles and Crosby 1986) dimensions of sustainable consumption exist, combined measurements are rare. Thus, the main objective of this study was the development of a scale to measure consumers’ consciousness for environmentally friendly, socially just and economically frugal consumption (CSC).Consciousness was operationalized by combining individual’s belief with the importance consumers attach to these dimensions (Cohen, Fishbein, and Ahtola 1972). This scale was administered to 378 graduate and undergraduate students from three German universities in summer 2012. Participants were male (44.8%) and female students from different subjects with a mean age of 23.9 years.Results indicate an appropriate psychometric quality of the CSC scale and provide support for CSC three-dimensional composite score. Suggestions for future research and validation steps are presented to unleash the considerable potential of the newly developed CSC scale in the study of sustainable consumption.

Barbara Seegebarth, Mathias Peyer, Anja Buerke, Ingo Balderjahn, Manfred Kirchgeorg, Klaus-Peter Wiedmann

Sustainable or Conventional? Exploring The Fit of Sustainability Attributes

Despite increasing awareness and cognizance of the importance of sustainability, market shares of products integrating social or environmental attributes remain relatively small. This divergence puzzles both academia and industry practice. We propose that in consumers’ minds sustainability attributes “fit” only specific product categories and consequently provide empirical evidence for these rather opaque demand side peculiarities. A probabilistic discrete choice design offers insights into consumers’ worth functions and our findings show that sustainability is valued differently in high and low involvement categories as well as in hedonic and utilitarian product categories. Furthermore, we identify subject-specific covariates which will allow companies to specifically address the most fruitful target groups.Given the increasing public awareness concerning sustainability issues, it has been argued that consumers, rather than focusing on traditional functional or emotional brand attributes, specifically opt for socially and environmentally responsible ones (Kotler, 2011). But despite the urge to better understand sustainability in the context of product attribute bundles, there is a paucity of research in this area. A noteworthy exception is provided by Auger et al. (2008, 2003) who report that consumers are not willing to trade off quality aspects of a product for sustainability attributes, even though the latter are valued when considered in isolation (Auger, Burke, Devinney, & Louviere, 2003; Auger, Devinney, Louviere, & Burke, 2008). Another, even more fine-grained examination into the effects of sustainability attributes demonstrates that they are differently valued depending on the benefit sought by consumers (Luchs, et al., 2010). These first insights already point towards the importance of a more detailed examination of sustainability attributes. Within the present research study we therefore focus on varying levels of involvement and hedonic vs. utilitarian products to better understand their different effects on consumers’ preferences for sustainability.Based on attributes elicited within 17 in-depth interviews which have consequently been assessed regarding their real-world occurrence, we developed attribute sets for three generic products: a pullover (representative of a high-involvement product), a chocolate bar (low involvement and hedonic) and shower gel (utilitarian). They all contain either no sustainability attribute (i.e. conventional), are organic (which we posit to be a self-centered attribute) or Fair Trade (other-centered attribute). Our final sample of 638 respondents had to go through 15 paired comparisons (including a “no choice” option) for each of the three categories. A manipulation check supports our a priori classification into above outlined product- and attribute-categories. The final choice data was analyzed using the log linear Bradley-Terry model and we incorporate both subject- and object-specific covariates to get more detailed insights into consumers’ preference functions.We find that involvement interacts with preference as consumers value sustainability more in low than in high involvement products. Other than hypothesized, consumers do not value sustainability differently in hedonic and utilitarian product categories. However, in the former, it is more advisable to integrate other-centered sustainability attributes (such as Fair Trade), as hedonic products might entice consumers to make more altruistic decisions. This finding is especially interesting given the fact that our hedonic representative is chocolate and, as food product, even more likely to increase consumers’ preference for organic ingredients due to health considerations. Nevertheless, there is a significant increase in preferences for the other-centered benefit Fair Trade in hedonic product categories as compared to utilitarian ones. Furthermore, we investigate the influence of demographic variables on preference structures and find that especially the level of education impacts the choice for sustainable products.

Verena Gruber, Bodo B. Schlegelmilch

Sustainable Retrofits of Apartment Buildings: Developing a Process to Address the Barriers to Adoption

The increase in the number of people living in apartments, combined with recent debate about the need to reduce greenhouse gas emissions has put pressure on managing bodies to adopt sustainable retrofits for common areas in apartment buildings. The literature posits that involving different stakeholders in the process and developing strategies to overcome the barriers to their implementation will increase the likelihood of adoption. As gaps exist in the literature, a mixed method approach using depth interviews and an online survey with apartment owners is used. The findings demonstrate that some stakeholders have different opinions and expectations with respect to adopting sustainable retrofits, with owners corporation (body corporate) committees members and apartment owners who live in the apartment being the most likely to encourage the adoption of such measures. To overcome the three main barriers to sustainable retrofits, namely, practicality, individuality, and responsibility, this paper recommends three steps be adopted. As well as identifying who are the initiators, an online information tool is needed, as well as financial and other incentives.

Judy Rex, Rebecca Leshinsky

INTERNATIONAL AND CROSS-CULTURAL MARKETING: BRANDS AND LUXURY CONSUMPTION

Frontmatter

Consumer Desire for Luxury Brands: Individual Luxury Value Perception and Luxury Consumption

Along with the rising global appetite for luxury brands, luxury brand managers have to balance the tremendous demand for their goods in the global marketplace without threatening the key characteristics of exclusivity and uniqueness that are necessary preconditions of luxury. With respect to the serious challenges inherent in luxury brand management such as the risks of brand over-extensions and counterfeiting, an integrative understanding of luxury and the multifaceted desires an individual seeks through luxury consumption are key success factors in luxury brand management. Recent research gives evidence that the desire for and the consumption of luxury brands involves several dimensions of customer perceived value including financial, functional, individual, and social consumer perceptions. Nevertheless, to date, the interplay of the customer perceived value dimensions and the assessment of their effects on individual luxury value perception and related behavioral outcomes are poorly understood and widely unexplored.Against this backdrop, incorporating relevant theoretical and empirical findings, this study focuses on the investigation of the interplay of the customer perceived value dimensions (financial, functional, and social value) and the assessment of their effects on individual luxury value perception and related behavioral outcomes (purchase intention, recommendation behavior, willingness to pay a price premium). The paper is structured as follows: first, the conceptual model and related hypotheses are presented based on existing research insights on luxury brands and customer perceived value; second, the methodology and results of our empirical study are described. Third, the analysis results are discussed with reference to managerial implications and further research steps.To measure the antecedents and outcomes of individual luxury value perception, we used existing and tested measures. Items were rated on five-point Likert scales (1=strongly agree, 5=strongly disagree). The first version of our questionnaire was face-validated using exploratory and expert interviews to check the length and layout of the questionnaire and the quality of the items used. To investigate the research model, an online questionnaire was conducted among consumers in Germany in July 2012. A total of 782 questionnaires were received.In our study, SPSS 19.0 and PLS structural equation modeling (SmartPLS 2.0) were used to analyze the data. A reliable and valid measurement of the latent variables was confirmed. Referring to the antecedents of individual luxury value perception, our results verify that the perceived financial, functional and social value of luxury brands are significantly positive related to the key construct of individual luxury value perception. Morover, the individual luxury value perception has a positive impact on purchase intention, recommendation behavior, and the willingness to pay a price premium. With reference to the evaluation of the inner model, the coefficients of the determination of the endogenous latent variables (R-square) reveal satisfactory values at .637 for individual luxury value perception, .618 for purchase intention, .565 for recommendation behavior, and .526 for the willingness to pay a price premium. Moreover, Stone-Geisser’s Q-square yielded a value higher than zero for the endogenous latent variables, suggesting the predictive relevance of the explanatory variables.The results presented here have important implications for luxury brand management and future research in the domain of luxury goods. By addressing the specific value aspects that are highly relevant for consumer loyalty to the brand, a luxury company can stimulate purchase behavior with appropriate marketing campaigns that emphasize the most important value aspects. In this context, a study focusing on different luxury brands, different luxury industries or the comparison luxury vs. necessity might enhance current knowledge of consumer behavior in the luxury industry. On an international level, the specific consideration of cultural issues is required and therefore, possible cross-cultural similarities and differences have to be examined in future research to generalize the results and to sell successfully luxury goods to consumers of different nationalities.

Nadine Hennigs, Christiane Klarmann, Stefan Behrens, Klaus-Peter Wiedmann

Are You Like Me? I Will Be Attached to You. Empirical Findings from an International Research About Consumer, Brand and Store Personality Congruence in Luxury Sector.

The paper analyses the phenomena of congruence between consumer, brand and store personality and its effect on attachment to brands in luxury sector at an international level. From a theoretical point of view, human personality, brand personality, store personality, congruence and attachment constructs are considered. From an empirical point of view, the paper presents the results of a quantitative primary research run on a sample young people “luxury experienced” from 10 countries. The empirical research considers specifically 6 luxury brands. In term of results this paper presents the validation of the personality congruence measurement scale proposed by the authors; furthermore the research highlights the existence of a correlation between personality congruence and brand attachment.

Raffaele Donvito, Gaetano Aiello, Bruno Godey, Daniele Pederzoli, Klaus-Peter Wiedmann, Nadine Hennings, Christiane Klarmann, Priscilla Chan, Chris Halliburton, Junji Tsuchiya, Taro Koyama, Irina Ivanovna Skorobogatykh, Bart Weitz, Hyunjoo Oh, Mike Ewing, Joshua Newton, Yuri Lee, Li Fei, Cindy Rong Chen

The Effect of Offshore Shifts on Brand Attitude and Corporate Image

Increased competitive pressure has led modern organisations to seek measures to reduce costs and maximise profits, without significantly adjusting their product offering. The practice of offshoring is increasingly being utilised to provide a competitive cost advantage in the market place. However, business managers are engaging in the practice for cost efficiencies and access to skills (among reasons) without fully understanding the potential impacts on consumers and their buying intentions. This paper explores the question of whether engaging in the practice of offshoring influences consumer attitudes’ towards product brands and corporate brands.

Cassandra France, Nigel Pope

NEW APPROACHES TO RESEARCH METHODOLOGY

Frontmatter

The True Nature of Non-Linear Dynamic Effects: A Methodology to the Rescue of Imprecise Theory

There are two major problems with the fundamental advancement of empirical research in the management sciences – there is very little theory regarding temporal effects and methodologies to measure complex relationships are not well known. The goal of the study is to address these concerns with an example of a firm survival study. First, theoretical arguments based on the notions of imprinting of initial conditions and inertia explain why survival determinant effects would change as firms age. The mechanisms of imprinting and inertia affect firms’ awareness of which capabilities need more investment. As capabilities change over time, firms’ interaction with the environment changes as well. Further, organizational capabilities and resources are contextual. Hence, it is the firm interaction with the environment that determines its success and ultimately its mortality. Because this interaction is dynamic and because firms evolve, even constant factors may affect an organization’s mortality in a different way at different stages in the organization’s life. The second goal of the study is to improve the state of the art method of estimating the Cox proportional hazards model in management. This type of model has a good tradition of utilization in the marketing and management literature. Yet, although, it has a pronounced methodological requirement for the possible inclusion of dynamics, the assumption of proportional hazards is rarely tested. Using available methods mostly from the medical literature, the study emphasizes the importance of testing the proportionality assumption and demonstrates a method to alleviate the problem of non-proportionality based on fractional polynomials. The flexible method accounts for time-varying effects by interacting covariates with fractional polynomials of time. The study is set in the online retailing segment, which offers a good context for testing the time-variability of various effects on survival probabilities. Being characterized as a turbulent environment and as a recent case of a market bubble, it is a telling example of the fault in assumptions of constant effects. Compared to a constant effects model, the dynamic model provides a better fit and complies with the theoretical predictions. Based on the findings, it is recommended that researchers incorporate a check of the proportionality assumption as a routine procedure in the estimation of proportional hazards regressions.

Ralitza Nikolaeva

What Was Brand Equity Anyway, and How Did They Measure It?

By reviewing the most influential works of the last decade, where the concept of brand equity was applied we discuss the different conceptualizations and measures of the construct used by scholars. We return to Feldwick’s 1996 brand equity classification in order to integrate existing research into a single brand equity framework. As a result a systematic view on the brand equity conceptualization is argued, a new approach is introduced as to how brand equity measures should be chosen and insights are presented regarding where brand equity research should go in the future.

Daniil Muravskii, Olga Alkanova, Maria Smirnova

INNOVATIONS AND NEW INSIGHTS IN SOCIAL MARKETING

Frontmatter

Scared Topless: Why Social Marketers Need to Encourage Marketing-Like Activities in Avoidance-Service Workers

Catherine Ford’s recounting of her breast screening experience in a Sydney Morning Herald new story (2012) reveals an interesting insight into a health customer’s reaction to the marketization of health services. As government decision-makers attempt to find market solutions to the increasing costs of today’s health system and make health services convenient and appealing to target audiences, social marketers are being called upon to deliver innovative strategies to encourage positive health behaviours (French 2007). BreastScreen Australia’s venture into the ‘retail emporium’ is an example of an innovation in service design to make access to a health services easy and desirable for consumers.

Josephine Previte, Rebekah Russell-Bennett

Not Quite Playing the Game? Mobile Applications for Healthier Lifestyles

This paper focuses on the use of mobile “app”-based interventions as tools to influence health-related behaviour. Apps are software applications designed to run on smart phones and other mobile devices We review the extensive but fragmented literature relating to serious games and gamification in order to identify the key concepts and frameworks that can be used to underpin the design and evaluation of these apps. We then use these criteria to review a range of current apps developed by one public body, the UK NHS and commercial developers of health-related apps and compare these to commercial apps promoting unhealthy food items. We suggest that there are serious weaknesses evident in the apps provided by public bodies and that this sector could learn from an analysis of the development strategies used in the commercial sector. Directions for future research conclude the paper.

Lynne Eagle, Stephan Dahl, Melody Muscat, David R. Low

A Services Approach to Social Marketing

Governments and not-for-profit organisations are increasingly adopting a social marketing approach as a means of facilitating voluntary behaviour change to improve social and individual welfare. However, a fundamental question to ask is: “What is the overriding purpose of social marketing?” Although early definitions of social marketing emphasise the use of marketing approaches to promote social ideas (Kotler and Zaltman, 1971) or change the behaviour of individuals for their own or societal benefit (Andreasen, 1994), Wood (2012, p100) argues its primary function is: “the cost-effective provision of non-profit services to help and support people”. These social services are usually delivered by public and voluntary organisations, and should be developed and implemented on the basis of insight and “customer” engagement. Lefebvre (2012) notes the move to a customer, rather than producer, perspective and the rise of a “service-dominant logic” (Merz et al., 2009; Vargo and Lusch, 2004). According to this perspective service, skills and knowledge, rather than products, constitute the fundamental unit of exchange.The recent conceptualisation of transformational service research indicates that services marketers agree that service marketing can positively influence well-being and quality of life (Rosenbaum et al, 2011). A service focus would help social marketers move away from product-oriented models to more relevant theories and models from services, non-profit and organisational marketing. Services’ marketing offers theories that not only address individual responses but also incorporate structural and environmental factors and is aligned with the upstream approach to social marketing. While many scholars have identified the need for an upstream rather than downstream approach to social marketing (Gordon, 2011; Hoek and Jones, 2011) few have conceptualised how this might be done. We suggest that service marketing offers relevant frameworks.At the heart of service marketing lies the notion of value exchange. Zainuddin, Russell-Bennett and Previte (2013) argue that there is a growing acknowledgement in social marketing that customers can create service value by cooperating with service personnel (see also Ouschan et al., 2006) however there has been little research that explains how. The notion of experiential value draws on the value-in-use perspective and moves beyond the study of utility derived from customer engagement with service processes (Vargo and Lusch, 2004). It is further argued that many social marketing services assume that technical and clinical factors are the key drivers of customer behaviour; for example the provision of a technically reliable health screen will ensure consumers repatronage. This over-emphasis on technical expertise has resulted in service strategy and resource allocation focussed on technical service aspects rather than a balanced approach that also incorporates the interaction with staff and service atmospherics (Berry and Bendapudi, 2007). So, interactions between customers and service delivery staff are crucial to perceptions of value and satisfaction and play an influential role in decisions to maintain a behaviour change; for example, to be screened on a regular basis. This supports arguments put forward by Fowlie and Wood (2011) that emotionally supportive relationships are essential for effective social marketing interventions and the development of customer-driven services. In this paper, we outline key services marketing theories relevant to social and demonstrate their applicability through case studies from social marketing researchers and practioners.To achieve the aim of social marketing in improving people’s lives through better services and reduced social inequalities, we need to equip practitioners with the tool and theories to deliver cost-effective, client-centred services. Therefore, the challenge for scholars is to soften the disciplinary boundaries between services and social marketing; to integrate ‘service thinking’ into social marketing models. Services marketing theories are the building blocks for any social marketing program that uses services as the key social product.

Rebekah Russell-Bennett, Matthew Wood, Josephine Previte

Perceived CSR Authenticity

Marketing literature shows that while consumers often respond positively to corporate social responsibility (CSR) initiatives (Bhattacharya and Sen, 2004) they are also known to be skeptical of corporate social responsibility (Webb and Mohr, 1998). This paper argues that these contradictory and changing consumer attitudes towards CSR may be attributable to consumers’ perceptions as to the authenticity of a company’s CSR. While it is intuitive that inauthentic CSR would create a negative consumer evaluation of a company (Wagner, Lutz, and Weitz, 2009), this paper contributes to the literature in that it seeks to uncover what, exactly, it is that influences the perceived authenticity of CSR initiatives. To begin to understand the thought processes behind consumer’s evaluations of CSR, a qualitative analysis of interviews was undertaken. Initial findings suggest that consumers’ perceptions of what makes CSR authentic or not can be fall into several broad categories including how well a CSR initiative fits the company, firm reputation, and whether or not the firm seems to be motivated by profit instead of altruism.

Sarah Alhouti, Betsy Holloway, Catherine Johnson

E-BUYER BEHAVIOR

Frontmatter

Predicting Disloyalty to a Search Engine: The Role of Satisfaction, Brand Relationship, Reputation and the Search Engines Features

Brand loyalty is helping companies secure customers in the long run and is a widely research concept. Brand disloyalty can be producing the opposite results than brand loyalty and can be equally important. However, very limited work has been published to brand disloyalty. Using data collected online from 495 individuals in the UK, this research is investigating the antecedents of online brand disloyalty to a search engine. The results indicate that the best predictor of brand disloyalty in this context is the brand reputation, which reduces it, while the characteristics of the search engine (including each complexity) and the communication that individuals receive and provide to a search engine is increasing the loyalty to this search engine.

Cleopatra Veloutsou

Risky Business? Consumers’ Propensity to Engage in Online Banking Services

The Internet is an innovative and increasingly popular medium with unique characteristics and features not to be observed in the traditional off-line channels. The use of the Internet is gaining importance across a variety of industries. In the retail banking industry, the appearance of online banking is one of the most influential information and communication technology. Consumers can now conduct financial transactions, automate tedious tasks (e.g., e-payment), access their account information online anytime (Rotchanakitumnuai and Speece, 2004), and keep important account records in an easy-to-track digital format. The term “Internet banking” and “online banking” have been used interchangeably, and they often refer to the instances in which customers engage in an exchange of information and transactions with a bank via the Internet. In general, this new self-service technology may widely imply usage of computers, mobile phones, digital TVs, etc. for accessing Internet branches (Curran and Meuter, 2005; Lawrence et al., 2009; Sayar and Wolfe, 2007).The perceived psychological risk (i.e., anxious, nervous, and uncomfortable) appears to be relatively more important than other dimensions of the perceived risk concept and this finding points out people’s increasing concern over the protection of their financial assets in the networked world. Banks that are sensitive to privacy concerns should display up-to-date privacy policies and avoid sending its customers unsolicited e-mail. Since the complex functionality of the Internet security features may be beyond the scope of a typical online banking customer’s technological understanding (Grabner-Kräuter and Faullant, 2008), bank managers should translate the sophisticated security advances to understandable marketing promotions with the goal to influence their customers’ risk perception. As online banking risks (e.g., identity theft) are likely to remain when we move toward the digital environments, bank managers need to update banking system’s security system and prevent their employees from unwittingly sharing individual customers’ personal data with unauthorized entities. Consequently, online banking users’ psychological risk and private risk could be dramatically reduced.Safe banking online needs to start with good decision-making – decisions that will prevent an Internet banking user from costly surprises or even scams. If customers are seriously concerned with the risk perception involved in online banking services, the result may be that they stop using the OBS. In this event, banks would not be able to maximize the potential of their online banking offerings. Only when a bank’s online information infrastructure is reliable and has the capacity to recover from malicious attacks, the bank’s marketing planners can apply the principles discussed in this paper to their online marketing communications and figure out a way to convert potential OBS customers to loyal consumers.

Stephen Wang, Maxwell Hsu, Lou E. Pelton, Annie H. Liu

Effective Interactive Websites: Examining the Moderating Role of Involvement

Consumers’ responses toward an interactive website are moderated by a number of factors. The present study examines whether different levels of product involvement moderate the website interactivity effectiveness in terms of attitude formation and pre-purchase intention. Although numerous, previous studies in online environments have either been conducted in a single product sector (e.g. Sicilia, Ruiz and Munuera 2005), or when employing several product categories they did not consider the potential moderating effects of product involvement on the interactivity–attitude formation and pre-purchase intention (Coyle and Thorson 2001; Bezjian-Avery, Calder, and Iacobucci 1998).

Polyxeni (Jenny) Palla, Rodoula H. Tsiotsou, Yorgos C. Zotos

ISSUES INVOLVING CHILDREN, EXERCISE AND HEALTH CAMPAIGNS

Frontmatter

Employee Health: Motivations and Constraints to Fitness Program Participation

Health research reports regular physical activity can substantially reduce the risk of heart disease, stroke, colon cancer, diabetes, and high blood pressure. It also aids weight control, contributes to muscular and skeletal health, reduces falls among older adults, helps relieve arthritic pain, lessens symptoms of anxiety and depression, lessens dependence on medication and leads to fewer medical visits. Despite these benefits many in the U.S. lead sedentary lifestyles and are not active enough to realize these advantages. Physical inactivity is a national issue, as 62% of children do not participate in any organized sport during their non-school hours and 23% do not engage in any free-time physical exercise (CDC, 2002). The problem plagues older age groups too, as 65% of adults and 16% of youth are overweight or obese (CDC, 2003).

Mark P. Pritchard, Tiffany Nichols, Nancy Graber

Supporting Children of HIV-Positive Parents

The HIV endemic is on the rise in Australia despite the efforts government departments, healthcare providers, and community organisations to stabilise it and prevent new infections from occurring. The community of HIV-positive people is constantly expanding, with between 1000 and 1100 new diagnoses being registered each year from 2006 to 2010 (The Kirby Institute, 2011). The field of medicine has made significant improvements in terms of treatment options, which means HIV is no longer seen as the death sentence it once was (Lynch et al, 2012). People are living with HIV, rather than dying from it, with some living two or three decades longer than they ever expected to after being diagnosed. Given that people live longer and have an opportunity to lead a healthier and more fulfilling life than was previously the case, other issues beyond their health are now becoming increasingly important.

Yelena Tsarenko, Rudolf Conradie

Influence of Parents on Child Eating Practices in Low Ses Communities: Identifying Insights for Health Promotion Campaigns

Epidemiological evidence suggests that a diet high in fruit and vegetables helps to promote health and to prevent chronic disease (Bofetta et al. 2010; Hung et al. 2004; Turrell, Stanley, de Looper and Oldenburg 2006). However, Australian data indicates that the consumption of fruit and vegetables is well below the recommended daily intake (Australian Bureau of Statistics [ABS] 2009). Unfortunately, socioeconomically disadvantaged groups are particularly likely to have a diet characterised by low fruit and vegetable intake compared to their less disadvantaged counterparts (Ball, Crawford and Mishra 2006; Giskes et al. 2002). Thus, gaining a better understanding of the factors that intersect with an individuals’ ability to obtain a healthy diet, especially for the socioeconomically disadvantaged, is an important issue in health promotion research.

Stephanie Judd, Joshua Newton, Fiona Newton, Michael Ewing

A Regional Approach to Implementation and Evaluation of Strategic Health Communication Campaigns to Support Non-Communicable Disease Prevention in Pacific Island Nations

In the Pacific region, the burden of Non-Communicable Diseases (NCDs) is an immediate threat to Pacific Island countries. NCD related mortality and morbidity is rising at an alarming rate as a result of a combination of unhealthy lifestyles and environmental changes which have driven increased levels of physical inactivity, unhealthy diet, tobacco and alcohol use. In September 2011, the United Nations General Assembly held a high-level meeting on the Prevention and Control of NCDs to accelerate the implementation of global strategies to prevent NCDs and to influence greater investment in these strategies as part of global development. The UN agency resolutions highlight the urgent need for a regional, evidence based, best practice approach to communication programs for NCD prevention in the Pacific. Strategic Health Communication (SHC) has been identified as a priority for Pacific countries to support NCD prevention programs and protective behavioural changes. This paper seeks to explore the issues involved in leveraging strategic health communication campaigns in the Pacific.

Tahir Turk

NONPROFIT MARKETING: CONTEMPORARY CHALLENGES

Frontmatter

Internal Competition and Cooperation at Art Museums: A Qualitative Exploration

Internal competition and internal cooperation and/or collaboration are constructs that are defined most often in managerial literature. The two constructs are generally seen as having a poor influence on outcomes in the case of internal competition and more positive outcomes in the case of cooperation/collaboration. However, outcomes in the nonprofit world are not so easily defined as in for-profit businesses. Further, the concepts on internal competition and internal cooperation are not well understood in the nonprofit arena. This research explores the concepts using qualitative in-depth interviews from a variety of U.S. non-profit art museums in order to begin the development of a better understanding of how the presence, intensity and nature of internal competition and internal cooperation manifest themselves.The art museums studied include a variety of art museum venues from vast collections to single medium collections. Some are funded or partially funded by government agencies. Some are solely funded by donations and grants. The footprint and collection size as well as amount of paid and volunteer staff varied. At each art museum three perspectives were gathered and analyzed. The subjects of the in-depth interviews included an executive with strategic responsibilities, someone with marketing and/or financial support responsibilities and then someone with collections or curatorial responsibilities.What developed from a synthesis of these interviews was a relatively complex view of the nature and intensity of internal competition and cooperation. In general, internal cooperation that had a strong understanding of and unity around a central mission seemed to be most effective in achieving the art museum’s mission. Internal competition was more complex in nature. Depending on personal characteristics such as personal ego, the strength of the museum’s mission as understood by various players and a variety of other factors, internal competition appeared to play a role in both detrimental effects and/or positive effects in terms of art museum mission achievement.

Sandra Mottner, John B. Ford, Theresa Kirchner

Servaqua: Towards a Model for Service Quality in Potable Reticulated Water Services

The purpose of this paper is to propose a conceptual model for total service quality in the provision of networked technological services, dominated by tangible elements, with specific reference to reticulated water for customers in urban environments. A range of methods to measure the level of service provided by water utilities exists, most of which focus on the intrinsic quality of water supply, measured from the perspective of the service provider. These methodologies largely omit the quality of service as experienced by the customer, limiting their ability to drive customer centric management. A conceptual model is derived from a synthesis of literature on services quality. The face and content validity of the model are assessed using a qualitative case-study approach in which the views of organisations representing customers in this industry were sought. It was found that existing service quality methodologies cannot account for the specific context of water services, a service with high tangibility and low customer interaction. The paper concludes with suggestions for further research into this problem.

Peter Prevos

Development of a Market Orientation Research Agenda for the Nonprofit Sector

The concept of market orientation (MO) is the overarching framework by which practitioners and academics make sense of the interplay between customers, competition, stakeholders and the organization within the commercial for-profit arena and is the way the marketing concept is put into practice. Academics have suggested that MO would also benefit nonprofit organizations (NPOs) by generating more funds in an increasingly competitive environment and improving service delivery. Based upon a systematic review of the overall MO literature, we identify gaps and develop a research agenda for MO research within the under-researched nonprofit sector. The paper offers suggestions for researchers to extend the concept of MO from the commercial for-profit arena into the nonprofit arena, thereby looking forward for the nonprofit sector by looking back on the for-profit sector.

Paul Chad, Elias Kyriazis, Judy Motion

CONSUMER BEHAVIOR: INNOVATION

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Antecedents and Consequences of Consumer Perception of Product Innovativeness

Scholarship in innovation has increasingly sought to understand diffusion of new products by examining individual consumer behaviour processes (Alexander, Lynch, and Wang, 2008; Hoeffler 2003; Moreau, Lehman, and Markman, 2001), whereby an innovation is only new if it is perceived to be new by consumers (Rogers 2003). But how new is “new”? Or, in terms of this study’s focus, how innovative is an innovation? Currently, the literature contains neither complete agreement as to how to define and measure perceived innovativeness nor an existing model of its antecedents and consequences. This study addresses two main research questions: (1) What is perceived innovativeness and how should researchers define, conceptualize and measure it? and (2) What are the antecedents and consequences of perceived innovativeness, defined here as Consumer Perception of Product Innovativeness (CPPI), and how can the relevant constructs be put together into a logical and useful theory? This study contributes to the literature on innovation management by addressing calls from significant and highly cited studies in the field to “… examine the dimensions and effects of the newness of products to their prospective customers.” (Danneels and Kleinschmidt, 2001, p.371).To gain a deeper understanding of the consumer’s perspective and to specify the domain of the construct, the first step of this research comprised qualitative interviews with 20 consumers. Respondents were interviewed to ascertain what they understood innovativeness to be and what makes a product innovative to consumers. Specifically, the qualitative interviews suggest that innovativeness is more than just newness, contrary to some prior research. Thus, a true innovation not only has to be new but also must offer a significant improvement to consumers, and must extend beyond a purely cognitive set of dimensions. It was also found that consumers seemed to rate technology newness as an important influencer of CPPI. To follow up the qualitative study a pilot study was then conducted based on a questionnaire administered to 104 students, quantitatively examining the constructs highlighted by the qualitative research. A big question that remains unanswered is whether and which of these dimensions and related constructs are part of the definition of an innovation, or are better conceived of as proximal antecedents and proximal consequences. That is, the concept of an innovation can be conceived of as a multidimensional construct, or a core unidimensional construct surrounded in its nomological net by proximal antecedents and proximal consequences. Using structural equation modeling the evidence suggests CPPI is a distinct unidimensional construct, explained largely by the three proximal antecedents of perceived concept newness, perceived relative advantage, and perceived technological newness, contrary to some studies in the literature. The initial model was then extended to provide a more complete understanding of the key antecedents and key consequences of CPPI and key moderating factors. It was also tested on 826 consumers using a national panel from a commercial market research organization. To extend the analysis, consumer evaluations of innovations were modeled by decomposing attitudes into their hedonic and utilitarian components, and to complete the hierarchy of effects, the effect of attitudes upon purchase intention. Therefore, this study builds on prior literature by measuring consumers’ affective response to innovative products using an established measurement framework (HED-UT), and by viewing these affect variables as a consequence of perceived innovativeness, rather than a dimension of perceived innovativeness, as has been the dominant view in prior, yet untested research. Key moderators are also tested using structural equation modeling.The findings from this research suggest that CPPI is a unidimensional abstract concept, not a multidimensional concept as much past research implies. This study also shows that consumers evaluate innovations along affective dimensions rather than solely along rational dimensions such as how much time and money it saves, and that affect is a consequence of CPPI rather than a dimension of CPPI. Therefore, the model in this study also implies managers can try to influence CPPI through their marketing communications by attempting to raise CPPI’s antecedents. Overall, the theory allows for a new operational definition for CPPI, defined as consumers’ overall innovativeness assessment, resulting from perceptions of product concept newness, technology newness, and relative advantage, and influencing consumer utilitarian (cognitive) and hedonic (emotional) response. A key finding of this research relates to the dimensionality of CPPI. The literature contains fragmented definitions of the construct. However, one theme is that innovativeness equates with newness (Hoeffler, 2003). The findings from our study show that perceived “concept newness” is indeed a key proximal antecedent of CPPI, although newness is not a sufficient condition. Other constructs, including perceived relative advantage and perceived technology newness, are also important, and these three constructs together offer a richer explanation of variance in CPPI. In sum, this article presents a theory of consumer perception of product innovativeness, starting with introducing the term consumer perceived product innovativeness.

Ben Lowe, Frank Alpert

An Alternative Model of the Diffusion Curve for New Products

Whereas the conventional model explains the approximately normal distribution of time to adoption of a new product by consumers in terms of the unobserved higher-order construct “consumer innovativeness” (Rogers, 1965; Bass, 1969; Midgely & Dowling, 1978), this conceptual paper examines the diffusion curve phenomenon not from the viewpoint of what drives consumers to early adoption but rather from the viewpoint of what inhibits early adoption. Much effort has been expended by prior authors to measure consumer innovativeness and a variety of scales have been suggested to better capture the essence of innovativeness (e.g. Hurt et al., 1977; Mahajan et al., 1990; Goldsmith & Hofacker, 1991; Roehrich, 2004; Tellis et al., 2009). The ability of such measures to predict the time to adoption by particular consumers has unfortunately been generally poor (Roehrich, 2004; Tellis et al., 2009; Chao et al., 2012). Better prediction is critical for planning purposes, since firms must build a productive facility of sufficient size, raise adequate financial capital, and put in place appropriate distribution arrangements, to avoid the financial stress that is associated with under- or over-estimation of consumer demand for their new product. Several marketing scholars have recently called for “a new parsimonious measure of consumer innovativeness that can predict consumers’ adoption of new products” (Tellis et al., 2009:2); that “further research needs to be carried out to more fully assess what exactly drives adoption” (Peres et al. 2010:100); and Chao et al., (2012: 216) state “To effectively investigate individual adoption decisions, researchers should elaborate on the individuals-level models by separating the adoption process into a hierarchy of effects (awareness, consideration, liking, choice, purchase, and repeat purchase), integrating into each stage findings from behavioral studies.” This paper responds to these calls for individual-level research into the adoption decision by building an alternative model that reflects the observed diffusion curve phenomenon but does not rely on innovativeness to explain it. The model identifies six factors that constitute steps in the adoption-decision process through which the potential customer must progress before adopting the new product. The six discrete stages are dubbed awareness, appreciation, aversion, alternatives, affordability, and accessibility. As each impediment to adoption is overcome, the consumer moves forward towards purchase of the product and does so only when the six stages are completed. This schema allows marketing managers to focus on removing the impediments rather than attempting to measure or predict consumer innovativeness. ‘Awareness’ is defined here as the extent of knowledge that consumers have about the product, its purpose and manner of use, its quality attributes and differentiation, its price, place of sale, and so on. It is the converse of consumer ignorance as defined by Shepherd, Douglas & Shanley (2000). ‘Attraction’ refers to the potential customer’s initial positive feelings toward the new product or service as they adopt a promotional regulatory focus (Higgins, 1987, 1996; Shah & Higgins, 1997). As attraction builds the prospective consumer is hypothesized to then adopt a preventative regulatory focus and enter the ‘Aversion’ and ‘Alternatives’ stages. The first of these refers to the target customer’s quality-risk aversion, or their fear that the quality of the new product may fall short of claims made by the firm (Sweeney, Soutar & Johnson, 1999; Tellis et al., 2009; Peres et al., 2010). ‘Alternatives’ refers to the availability of other means to satisfy the customer’s needs or wants and includes consideration of switching costs associated with adoption of the new product, which include the extent of personal inventories of an alternative product currently held by the potential customer, and the investment of time, effort and costs required to convert to the new product, including learning costs (Klemperer, 1987; Burnham, Frels & Mahajan, 2003). Netting the disutility of the aversion and alternatives perceptions against the utility of the attraction stage, the consumer then decides to adopt of not adopt depending on the price of the new product (affordability) and the costs of accessing the vendor to effect the purchase (accessibility). The passage of time causes the decay of the inhibiting factors, such that in each discrete time period some number of potential customers will decide to purchase, since they are now more aware; more attracted; less quality-risk averse; alternatives are less satisfying; the product is more-affordable; and the new product is more accessible. The consumer makes the decision to purchase when the new product becomes the best value proposition taking into account these six factors. Each of the six impediments to adoption is likely to be unimodally distributed across the target market. It is hypothesized that when these six frequency distributions are summed vertically over time the aggregate distribution is approximately normally distributed around a mean time to adoption. Thus we contend that the frequency distribution of the time to adoption is alternatively explained by the sum of the frequency distributions of the six inhibitors to adoption and occurs as these inhibitors decay and prospective consumers cascade through the six stages and finally adopt the new product.

Evan J. Douglas

Variety Promotes Flexibility: The Effect of Exposure to High Variety on New Product Evaluations

Variety is an important attribute that impacts consumer preferences in the marketplace. This research contributes to the literature by examining the subtle effect of exposure to high variety on consumer evaluations of unrelated new products. Specifically, I propose that the exposure to high variety induces cognitive flexibility, which in turn leads to more favorable evaluations for new products. Five studies demonstrate the effect of exposure to high variety on cognitive flexibility and new-product evaluations. I also demonstrate that the mechanism underlying the effect is through the increased cognitive flexibility in Study 3. Studies 3 and 4 investigate boundary conditions that the exposure to high variety does not influence new product evaluations when the evaluation contexts do not require cognitive flexibility.

Zixi Jiang, Jing Xu, Ravi Dhar

The Transition from Complement to Substitute: Determinants of Consumer Disadoption of Old Technologies

The pace of substitution of an old technology with a new one is irregular. There are technologies that are quickly supplanted by innovations, yet others continue co-existing side by side with the new technologies for a long time (Ansari and Garud 2009). Why? This question is important to both technology providers and policy makers as the switch to new technologies might require significant investments by the business and public sectors (Ansari and Garud 2009; Geels and Schot 2007). Also, incumbents tend to misread the potential substitution power of new technologies that can ultimately prove detrimental (Soodand Tellis 2011).

Ralitza Nikolaeva

USING SOCIAL MARKETING TO ADDRESS CONSUMER MISBEHAVIOR AND PROBLEM BEHAVIOR: INSIGHTS FROM THEORY AND PRACTICE

Frontmatter

Thou Shalt Not Steal: Illegal Downloading Behaviour in a Church Community Context

This study investigates the role of ‘relevant others’ in influencing illegal downloading behaviour of pop music within the church community context. Specifically, it examines how personal factors (“spirituality”, “moral judgement”, and “attitude towards the church”) and social factors (“facilitating conditions”, “teaching of the church”, and “reference group influence”) affect “attitude towards illegal downloading” that lead to the intention of downloading pop music illegally from the Internet. The Theory of Planned Behaviour will be used as a theoretical foundation of this study. A number of implications for social marketers will be discussed along with future research directions.

Riza Casidy, Riza Casidy

How Social Marketing can Address the Obesity Issue: The Role of Corporate Reputation

There is an increasing level of government and non-profit organisations holding organisations to account for their social responsibility (Zyglodopoulos, 2002). Such efforts often consist of social marketing campaigns with the ultimate goal to bring about attitudinal and behavioural change in undesirable behaviours such as smoking, gambling, drinking and obesity (Hastings, MacFayden, and Anderson, 2000; Andreasen, 1994). The impact of social marketing can be explained using institutional theory, which draws an association between social norms, the norms of an organisation, and the support of key stakeholder groups. It recognises that an organisation’s environment contains social and cultural norms that define social reality (Handelman & Arnold, 1999; DiMaggio 1988). The purpose of a social marketing campaign is to impact on these societal norms and values (Hastings, MacFayden & Anderson, 2010). These social norms define the institutional norms which stakeholders expect the organisation to adhere (Handelman & Arnold, 1999). Maignan & Ferrell (2004), in proposing a stakeholder view of corporate social responsibility, recognised the need for managerial processes to conform to stakeholder norms. Organisations that conform to social norms provide a show of cultural allegiance with their stakeholders and are to be rewarded for this support (Mohr & Webb, 2005). Conversely, where social norms shift as a result of a social marketing campaign and they are no longer consistent with the norms of an organisation, customers would be expected to disassociate from the organisation. Where customers are able to draw a connection between the social marketing message and the products or operations of a company, it is feasible to predict a positive influence on the firm’s corporate reputation. Bhattacharya & Elsbach (2002) considered the concept of social marketing and organisational identification and highlighted circumstances where social marketing impacted upon corporate reputation (Bhattacharya & Elsbach, 2002). This paper further investigates this interplay of social marketing, consumer-based corporate reputation and purchasing intentions. It demonstrates the impact of being exposed to a social marketing campaign on customer perceptions of corporate reputation and their subsequent purchasing intentions.This study utilised an experimental design with respondents exposed to a series of social marketing messages prior to completing a five dimensional customer-based corporate reputation construct (Walsh & Beatty, 2007) and indicating their purchase intentions. The ‘control’ survey contained social marketing messages on smoking, drinking and gambling that did not relate to the operations of the commercial organisations investigated. The ‘test’ surveys contained the same social marketing messages with the addition of social marketing messages pertaining to obesity. These images and messages reflected negatively upon the operations of the organisation (a well-known, global fast food organisation). An online panel was accessed and a sample size of 288 usable respondents (144 for each of the groups).The results of the group exposed to social marketing were significantly different from the group not exposed to the social marketing with regards to overall corporate reputation. There was a significant difference between the test groups for the corporate reputation dimensions of customer orientation and product and service quality, but not for the financial strength and reliability of the organisation. There was also a significant difference in purchasing intentions for products between the test and control groups, with the exposure to social marketing having a negative impact upon purchasing intentions of consumers.The findings of this research provide some support for social marketing campaigns as an avenue for governments and not- for-profit organisations to facilitate change in consumer perceptions. It furthers the idea that social marketing can impact corporate reputation and purchasing intentions. These findings support the continued use of social marketing campaigns to impact on product-related anti-social behaviour such as cigarettes, fast food and alcohol. Interestingly, this could give rise to a self-fulfilling prophecy. As organisations recognise the impact that social marketing campaigns can potentially have on the attitudes of their consumer groups, they will be inclined to devote more resources to their corporate social performance.

William Lake, Jodie Conduit

Investigating Consumer Message Processing of Fear and Challenge Based Advertising: A Conceptual Framework.

The proposed conceptual framework further advance our theoretical understanding of consumer cognitive, emotional and behavioral processes associated with fear/challenge message appeals in a social marketing context. We integrate disparate areas of knowledge from the fields of psychology and personality research and examine moderating effects of individual differences such as experiential avoidance, distress tolerance, and identity styles on information processing and behavior when exposed to a combined fear/challenge appeal. The proposed theoretical framework combines an information processing construct with a revised protection motivation model, to more explicitly reveal how cognitive processing affects persuasion of fear/challenge appeals. The conceptual framework also tests the mediating effects of response efficacy and self-accountability on depth of information processing and attitude change. Understanding the intricate details of information processing should enable social marketers to tailor messages to specific psychological profiles of customers in order to alter their behavior.

Svetlana de Vos, Roberta Veale, Pascale Quester, Jasmina Ilicic

THE ROLE OF SERVICE EMPLOYEES

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The Dual Impact of Socio-Emotional and Operational Demands Stress and Burnout

Exhibiting appropriate behaviors toward customers often requires service employees to suppress genuine emotions and/or express other emotions, genuine or contrived. Managing one’s emotions to act in a socially appropriate manner constitutes a form of labor; emotional labor. Front line service employees have finite resources (e.g. time, energy, knowledge, emotions) to dedicate to the service role. Conservation of resources (COR) theory (Hobfoll, 1988, 1989) predicts that if job demands exceed the limits of these resources, employees will experience stress. This is often associated with employee burnout, which can compromise performance (Karatepe and Uludag, 2008). Stress is an integral factor in up to 80% of work-related injuries and 40% of employee turnover (Atkinson, 2004). Furthermore, burnout can cost organizations billions of dollars in disability claims, absenteeism and lost productivity and may cost up to 10% of a country’s GNP (Ongori & Agolla, 2008).

Ian N. Lings, Geoffrey Durden, Nick Lee, John W. Cadogan

Personality and the Creativity of Frontline Service Employees: Exploring Quadratic and Moderating Effects

Previous studies investigated the relationship between the five factor model of personality and creativity. However, we go beyond this model and consider additional personality traits that have recently been investigated in the marketing literature as influencers of employee behavior, namely competitiveness, materialism, need for learning, and need for activity (see Brown, Mowen, Donavan, and Licata, 2002; Harris, Mowen, and Brown, 2005).Additionally, past research has focused on linear effects, but we examine both linear and non-linear effects of personality, given the mounting evidence that personality has non-linear effects on other employee behaviors. Finally, considering the evidence on the interaction effect of personal and contextual characteristics in creativity studies (e.g., Oldham and Cummings, 1996), we also investigate the moderating effect of job autonomy on the personality/creativity relationship. Autonomy constitutes an important contextual factor, reflecting the nature of tasks and the decision latitude supervisors have passed on to subordinates.The results indicate that four personality traits have non-linear effects, and that autonomy moderates the effects of some personality traits.

Carlos M. P. Sousa, Filipe Coelho, Cristiana Lages

Dealing with Variability in Professional Services- The Role of Scripting Versus Improvisation

The speed with which customers are embracing new Internet-enabled technologies is quickly changing the professional services landscape. Customers are better equipped with the tools to gather real-time information, ask probing questions of their service provider and, ultimately, make fully informed purchase decisions. More fundamentally, customers are increasingly seeing value in being able to participate in the design and delivery of professional services (Eisingerich & Bell, 2006). Increased customer involvement, however, implies increased variability and uncertainty within the service encounter (Chan, Yim, & Lam, 2010).Traditional management practice, in the event of variability, has been to more closely manage the service process. Variability has been seen as something to be controlled or ‘managed out’ of the process in order to increase consistency and predictability for both employees and customers. Accordingly, the literature has been occupied with prescriptions for managing variability through either customer or employee training. More recently, as a result of the service-dominant ‘turn’ within the literature and the emergence of co-creation as an approach to doing business, we have seen firms begin to embrace variability as a potential source of customization, innovation, and value. The evidence for the effectiveness of co-creation is emerging as scholars are increasingly embracing this topic of research (Bendapudi & Leone, 2003; Prahalad & Ramaswamy, 2004).Remaining somewhat neglected, however, has been the role of the employee as firms embrace the variability that is endemic to co-creation business models. This we see as an oversight. As such, we argue that variability can be dealt with in one of two ways; 1) by controlling the service process thus minimising the variability as has been the more traditional approach, or 2) by embracing, and working with, the variability. We propose a typology that reflects these two approaches in the context of supply (i.e., the management of service employees) and demand (i.e., the management of the customer interface) strategies. For instance, by educating customers on how to conduct themselves within the service, behavioural variability can be reduced. Similarly, through service process blueprinting or scripting, employees’ actions are able to be tightly controlled and monitored as appropriate for each service offering. Alternatively, firms can choose to embrace customer behavioural variability by embracing co-creation business models. The LEGO corporation, well known for its employment of a co-creation mindset, allows customers to submit new product ideas, to interact in online platforms with LEGO employees and other LEGO users, and actively participate in internal innovation processes (Hatch & Schultz, 2010).Perhaps less frequently explored by firms are supply-focused approaches for embracing service process variability. The idea of improvisation, where employees react in the moment to the customer as they see fit, is one potential management strategy. Improvisation can be defined as the convergence of planning and action. A main tenet of improvisation is ‘yes-anding’ which involves accepting the offers of others and building on them. It enables individuals to focus on the in-the-moment process of creation rather than on forcing a desired result (Crossan, 1998; Vera & Crossan, 2004). This typology of controlling versus embracing customer variability was explored through qualitative research comprising semi-structured interviews with practitioners and employees in a health services context. The format of the interviews followed a broad discussion guide; however there was significant latitude to explore constructs further as needed. Interviews were structured to gain insight into the changing roles of employees and patients within the realm of professional health services and explore employee’s current use of and opinions regarding improvisation as a tool to manage variable patient interactions.Overall, the findings of this study indicate that the service process in the healthcare industry is changing and requiring a revision of the roles and responsibilities of all parties involved. Several key themes emerged from the semi-structured interviews. Evidence of service procedure deviance, increasing customer involvement and differing expectations of the service encounter emerged as anticipated. Firstly, despite the generally tightly controlled technical processes in a healthcare practice, interviews uncovered that quite often things will happen that cause a procedure to deviate from the norm. Secondly, and further complicating this potential deviance, are changes in the patient-provider relationship and how this is manifested depending on different patient characteristics. Interviews on the whole indicated that there is a shift in the healthcare profession towards having patients more involved in interactions and treatment decisions. And thirdly, patients also vary in their opinions of what it means to be treated well in a service encounter and their expectations of the service encounter (Frei, 2006). The resultant concern then is how to train employees to adapt and respond appropriately to this new customer role. In this paper, improvisation is proposed as a useful strategy to work with customers and the inherent variability as opposed to attempting to reduce it. It is argued that employees could be trained to incorporate customers’ contributions and together construct the service process. Due to the high involvement nature of health services, strategies to control or reduce variability such as employee blueprints or scripting are not ideal. In these more high involvement situations, the interaction between the service employees and customers needs to create value for the customer by making them feel understood and cared for, and essentially embracing the variability that they bring to the table. Interviews also revealed evidence of improvisation being used in this way.Our intention in this paper was to explore the validity of the control versus embrace typology of managing customer variability with the goal of setting the groundwork to now empirically investigate customer behavioural variability, with a focus on the potential utility of improvisation training to manage this variability.

Jessica Vredenburg, Simon Bell

MARKETING IN ASIA: RETAILING AND SERVICES

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The Evolution of Japanese Retailing: 1991 - 2007

In this research we theoretically address, and empirically estimate, key factors that affect sales at four major lines of retail trade that include frequently purchased consumables (food and drink), less frequently bought non-durables (apparel, shoes and dry goods), to infrequently acquired durable goods that range from moderately costly (furniture) to truly expensive (autos). We examine Industrial Classifications 56, 57, 58, and 59: Dry Goods, Apparel and Apparel Accessory stores (largely clothing, shoe, linen and accessories); Food and Beverage stores (primarily grocery, liquor, and specialty food stores); Motor Vehicles and Bicycle stores (because our measure is sales, autos dominate); Furniture, Household Utensils, and Appliances. These four lines of trade collectively comprise about 60% (1991: 62%, 1997: 60%, 2002: 59%, 2007: 58%) of all retail sales.Our data is drawn from four successive Japanese retail trade censuses (1991, 1997, 2002, 2007); it encompasses 528 cities, in all 47 prefectures, that are home to over 75% of Japan’s people.Our theoretical model argues that retail sales are determined by three fundamental factors: the Market Environment (which is beyond the control or retail managers), Intertype Competition (which is influenced, but not controlled, by managers in the line of trade), and the Marketing Mix in each line of trade (which is set by managers). The essence of our argument is that the Market Environment determines a base level of sales per household. Intertype Competition takes sales away from the focal lines of trade. Finally, the Marketing Mix in each line of trade augments sales by (a) doing an above average job of appealing to customers and (b) countering the negative impact of Intertype Competition.Turning to our empirical model, within the Market Environment we include seven variables: income per capita, household wealth (proxied by household size in square meters), the five year population growth rate, daytime population relative to residential population, mobility (proxied by auto ownership per capita), out-shopping (proxied by distance to the prefecture’s capital city), and newspapers per capita. We expect each of these independent variables to increase our dependent variable of interest: retail sales per household.For the Marketing Mix we measure three variables: assortment (proxied as square meters of selling space per store), service (employees per square meter of selling space), and access (number of stores per capita); each of them should increase retail sales per household in its line of trade (e.g., the marketing mix for Food stores should only affect food sales per household).For Intertype Competition we use General Merchandise Stores (largely department stores and supercenters) that, in Japan, directly compete with Apparel, Furniture and Food stores. We focus on the same three variables (assortment, service, and access); they are expected to lower sales per household in the lines of trade with which they compete. (There is no intertype competition in our Motor Vehicle regressions.)In the first stage of our analysis we use the Market Environment to explain the variation in retail sales per capita across the four census years and four lines of trade (i.e., sixteen regressions). The Market Environment generates adjusted R2’s of 16.5% – 40.6%. In our second-stage analysis our dependent variable is the residuals from the first stage regressions. Here we include the Marketing Mix and Intertype Competition variables as explanatory; they account for 24.2% – 45.0% of the variation in the first-stage residuals. Taking the two stages together, we are able explain some 50% to 70% of the variation in retail sales per capita across the four lines of trade over four census years.Our empirical research makes four contributions. First, we use two independent variables that infrequently appear in studies of sales per household: out-shopping and home size. Second, we include, and show the importance of, intertype competition in affecting sales at specific lines of retail trade. Third, we investigate data from four censuses that span a sixteen year period; few previous studies have examined changes in retail structure over time. Fourth, we examine retailing in Japan; the world’s third largest economy has rarely been the focus of retail trade studies.

Charles A. Ingene, Ikuo Takahashi

Online Perceived Value in the Low Cost Airline Business

The global airline industry has been hit hard by the global financial crisis (Goetz and Vowels, 2009). While full service airlines have struggled to be financially viable in this lean global environment, low cost carriers (LCCs) such as Air Asia and Firefly have changed the value proposition experienced by consumers when considering airline travel by lowering their costs and ticket prices to remain competitive. By choosing to fly with LCCs, consumers forego some of the value-added services provided by full service carriers such as complementary onboard meals, in-flight entertainment, and airline lounge services (Mathews, 2004). The emergence of low cost carriers (LCCs) has also changed the way in which consumers engage with airlines, particularly with regards to air ticket purchasing behaviour (Park et al., 2004). Due to time constraints and advancements in information technology, there is an increasing consumer preference in using the internet compare prices and purchase flight tickets (Goh, 2005).We empirically examine Malaysian consumers’ perceptions towards online perceived value in the LCC business. Perceive value is the consumer’s overall assessment of the utility of a product based on perceptions of what is received and what is given (Zeithaml, 1988). In an e-commerce context, the consideraton of online perceived value is gaining in strategic prominenance due to an awareness that consumers increasingly compare product features and prices online. The provision of effective online search and browse methods are considered mechanisms that will enhance the perception of value (Cheng et al., 2008). The results offer a different perspective of the antecedents of online perceived value from that found in the extant literature. We found a strong correlation between LCC flight ticket pricing and online perceived value. Our findings have implications for managerial decision makers in LCCs. Managerial decision makers in LCCs must make their online service promises realistic, relevant, and deliverable.The principal limitation inherent within this study was the use of convenience sampling. Consequently, the resulting sample is not representative of the broader Malaysian population in terms of gender, age, income, or educational level.

Pei Chyi Lim, Brian C. Imrie, Nicholas Grigoriou

Adoption of Online Shopping in South Asia: A Technology Acceptance Perspective

The worldwide proliferation of online shopping during the past decade has created a need to better understand the adoption of such activity across the globe. Viewing online shopping as a ‘process’, this study addresses some of the gaps in the online shopping adoption literature (i.e., consumer acceptance of online shopping in the Emerging Asian markets) by focusing on culture specific dimensions of the technology acceptance phenomenon. More specifically, it uses an extended version of TAM combined with literature on information technology and culture to identify the drivers of online shopping adoption in Pakistan. It then makes an attempt to validate the applicability of TAM in a cultural setting other than the developed Western world. An empirical study was conducted to test the proposed extended TAM model using data from university students in Pakistan. Contrary to previous research, results of this study render support for the applicability of TAM in a culture that scores high on uncertainty avoidance, collectivism, power distance, and masculinity.

Abdul Rehman Ashraf, Aqsa Akbar, Mohammed Abdul Razzaque

CURRENT ISSUES IN SOCIAL MEDIA MARKETING

Frontmatter

Social Presence’s Affects on User Relational Performance, Relational Information Process’ Role of Mediating, and Moderating Effects Caused by Variety of Social Media Websites

The dramatic popularity of social media, e.g., blog and Facebook has drawn attention on their roles and momentum to internet marketing. It is assumed that if customers can perceive communication-via-internet as real as face-to-face conversation, then a high level of social presence is generated; which helps to establish communication linkages with customers, then becomes a decent relational network. Meanwhile, the members of social media societies utilize relational networks to share and exchange information via relational information process, in which new intelligence capital merges and helps to raise users’ relational performance. The theoretical models is constructed with Structural Equation Modeling (SEM), empirical results show that social presence indirectly affects users’ relationship performance by way of information process. The results also reveal that social presence affects intellectual capital exchange and merge vial social capital; it further affects the newly generated intellectual capital and users’ relationship performance. It concludes that relationship information process and social capital are both important mediating factors in the paths of cause-and-effect. The results of theoretical model from travelers’ blog and Facebook fan page are found different. Finally, managerial issues are suggested for future studies on the issues of searching behaviors for travel information.

Su-Fang Lee, Chee-Wha Yann

A Qualitative Exploration of Student Perspectives on Social Media use, Abuse and Content

We review relevant literature from the social media domain, identifying common research foci, as well as a gap and justification for this study which seeks to bring about a better understanding of, and contribute to, the nascent literature stream in the field of social media marketing research. We investigate just exactly how this powerful new force, social media, is being adopted, utilized and leveraged by students, the one group of individuals most likely to walk a delicate balance between personal and (budding) professional lives. We then share four major themes (ease of use, self-censoring and privacy, community and collectivism, and relationships with brands and businesses) and eighteen sub-themes which capture the essence of the impact this phenomenon is having on our target population. We conclude with a discussion of the findings and their associated implications, as well as insight into the limitations of our study and ideas for future research.

James “Mick” Andzulis, Jessica L. Ogilvie, Catherine M. Johnson, Lenita M. Davis

Strategically Social - Drivers and Patterns in Social Media Management

Social media open new opportunities for companies from both b2c and b2b sectors. They can engage directly with the consumers, customers and stakeholders within nanoseconds. These new opportunities create also dangers related to crisis management. The information can spread instantly and destroy corporate reputation. Therefore, the management of social media becomes strategically important for the companies. Management of the Facebook and Twitter profiles are not anymore considered as summer internships. Those are actually core managerial functions which are governed within the organizations.

Lukasz M. Bochenek, Sam Blili

Me or Not me? The Avatar as Consumer Identity in Virtual Worlds

The purpose of this research is to better understand the phenomenon of virtual worlds as a consumption experience in which consumers define aspects of their identity. A qualitative research conducted in the virtual world Second Life permits to clarify the different dimensions of the identity construction project in the virtual world, the antecedents that influence the choice of these dimensions, and the implications in terms of consumption. The identity construction project was discussed in terms of the distance that the consumers perceive between their avatars and themselves.

Leila El Kamel

SOCIAL MEDIA AS A SOURCE OF COMMUNICATION

Frontmatter

Who has Written it? How Reviewer-Reader Similarity Moderates the Factuality of Online Reviews

It is increasingly common for consumers to consult online reviews before making their (online) purchase choice. This is especially true for holiday decision-making processes and hospitality services, as trip planners tend to rely on others’ experiences for their decision making to reduce their perceived risk due to the experiential nature of tourism products. Previous research has demonstrated that a recipient’s information evaluation is a crucial determinant of electronic word of mouth (eWOM) adoption. This paper contributes to the existing body of research by focusing on potential influence factors on information evaluation for which either ambiguous findings exist in the literature or which can be considered as an understudied aspect of eWOM: perceived similarity of the reviewer as a source characteristic and review style as a message characteristic.Literature offers contradictory findings about the influence of review style, which may result from its context dependence. Based on this reasoning we expect that similarity moderates the effect of review style. Reviews that focus on simply describing the facts and do not refer to the feelings of the reviewer might be more influential over consumers’ decisions when the information source is perceived similar, or, in other words, individuals may consider the advice of others who are “like- them” even more if it is factually written because they rely on hard facts. Hence we expect factual written reviews to be more influential when the reviewer is similar to the recipient. At the same time, more emotional and experiential reviews might be better evaluated if the reader sees himself as different from the reviewer and needs more information to understand and evaluate the review.In two experimental studies we investigate how content and content structure influence the trustworthiness and perceived usefulness of the review and the attitude toward the reviewed business. Study 1 uses a 2 review style (factual vs. emotional) x 2 similarity (similar vs. dissimilar) x 2 valence (positive vs. negative) design with 174 undergraduate and graduate students. Negative valenced reviews were perceived as more trustworthy and more useful. The results also indicate that emotional reviews were seen as more trustworthy, but only in the dissimilar condition. A 3-way interaction was found for perceived usefulness of the review. In the positive condition emotional reviews were seen as more useful if the reader was similar to the reviewer. On the other hand, in the negative condition factual written reviews were evaluated better if the reader was similar to the reviewer whereas emotional written reviews were perceived as more useful if the reviewer was dissimilar to the reader.Study 2 again investigates the moderating effect of similarity but this time only positively valenced reviews for restaurants were used. Furthermore another approach to manipulate factuality was used by showing a more experiential (so more subjective) and less experiential (so more objective/factual) review. The results with 130 undergraduate and graduate students tend to confirm the findings of study one. While factual reviews did not differ between the similar and dissimilar conditions, more experiential reviews again were superior if the reviewer is dissimilar to the reader.Summarizing, our data suggest that less factual written (thus more experiential respectively emotional written reviews) are better evaluated if the reader is not similar to the reviewer. The same is true for the attitudes towards the reviewed business. Altogether, the more similar the writer is to the reader the more important are factual reviews.

Sonja Grabner-Kräuter, Martin K. J. Waiguny

What Type of Birdsong Carries? Twitter: Source Credibility and its Links to Value Creation in the Wine Business – A Tentative Model

Organisations are facing the opportunities and challenges that social media has brought. To justify resource investment in adopting social media, organisations are appraising the potential value of this social phenomenon. Social media facilitates electronic word of mouth (e-wom) distribution of information, referrals and reviews through social networks such as discussion forums, blogs and micro-blogs including Twitter. As the quantity of information increases in the digital environment it becomes increasingly germane to determine the credibility of the message, the source and the medium in order to assess the believability of the communication overall.This paper builds on earlier work, published in 2012 and the focus of this second stage research is the exploration of the identified constructs of source credibility and their connection to value creation. Interviews with participants of Twitter both consumers and professionals within the wine industry were conducted. Timeline narrative analysis was employed and the raw data was evaluated against the Twitter content previously collected. A tentative model has been created which now requires further validation. This paper extends the limited knowledge on the potential business value of engaging with Twitter for the wine industry which, until very recently, has been sceptical of the potential of social media.

Damien Wilson, Sarah Quinton

Examining Factors Affecting Mobile Social Media Customer-To-Customer Interactions in Real-Time Service Encounters

Mobile social location based services have emerged in the marketplace as a potentially valuable mechanism for consumers in real-time service encounters to share their location, and comments about service experiences that they experience to others. Despite this growing trend, a lack of understanding exists regarding what factors drive the adoption of this form of mobile social media technology in offline service environments. This study empirically tests a theoretical model of factors influencing mobile social location based services at the time of service consumption. Implications for theory and practice of this emerging consumer behavior are discussed, with guidance for future research presented.

Ben Lucas, Jamie Carlson

The Effect of Wom Communication with Close Others on Repeat Purchase

Consumers often talk about consumer packaged goods (CPG) brands with their family and friends. One notable feature of word-of-mouth (WOM) communication is that a brand that has been purchased by all participants in the conversation often becomes a topic. For example, consumers who have purchased Red Bull often talk about the brand among themselves. Previous studies have actively examined the effect of WOM on the first purchase of a new brand (i.e., a brand that has not been purchased) in the categories of books (Chevalier and Mayzlin 2006), movies (Liu 2006), and games (Zhu and Zhang 2010). However, how WOM influences repeat purchases of a CPG brand has remained virtually unexplored, although some studies imply that consumer interactions promote repeat purchases (e.g., Baghurst, Record, and Leppard 2000).This study examines the effect of WOM on a consideration of a brand that has been purchased, as well as of a brand never purchased before, since recent studies show that WOM has a greater impact on consideration set composition than on choice from the consideration set (e.g., Jang, Prasad, and Ratchford 2012). The present study considers consumer heterogeneity in consideration set formation and explores how the responses to the WOM are moderated by consumer characteristics.I hypothesize that consumers are more likely to consider a brand that he/she has purchased when the brand becomes a topic of conversation with close others, for the following two reasons. First, brands can function as a means of bringing the consumer closer to family and friends (e.g., Bearden, Netemeyer, and Teel 1989). When talking about a given brand with the family and friends, the consumer realizes that his/her family and friends have purchased the same brand and are interested in that brand. This information allows the consumer to understand that, by purchasing and talking about the brand repeatedly, he/she can build a closer relationship with family and friends. By recognizing such a social function of the brand, the consumer is more likely to consider the brand. Another reason is that WOM communication with close others on a purchased brand makes the brand more accessible in the consumer’s memory (cf. Berger and Schwartz 2011). The more accessible the brand is in memory, the more likely the brand will be considered (Bronnenberg and Vanhonecker 1996; Nedungadi 1990).An empirical analysis was conducted using the survey data provided by Yomiuri Advertising Company. In this survey, respondents were presented with 15 brands of beer and asked questions about consideration, purchase experience, and WOM from close others of each brand, as well as several consumer characteristics. The data contained 9326 consideration observations from 863 respondents. Approximately 60% (1.24/2.1) of WOM received were on previously purchased brands. The data was fitted to a hierarchical Bayesian binomial logit model (Allenby and Ginter 1995). In this model, the response parameter vector of consumer h is formulated as: βh ∼ N (Γzh, Vβ), where zh is a characteristic vector of consumer h, includes the intercept and consumer characteristics. The coefficients of the consumer characteristics in Γ capture the moderating effects of the consumer characteristics, whereas the intercepts capture the effects of explanatory variables not dependent on the characteristics. Vβ captures unobserved heterogeneity. Parameters are estimated by using MCMC.The estimate of intercept of WOM about a previously purchased brand was significant and its sign was positive (γ = 2.42), as expected. The estimated moderating effects of consumer characteristics reveal that the response to WOM about a brand previously purchased is moderated by the tendency of conformity in brand choice (γ = .96). One inducement of conforming purchase behavior is the intent to build a closer relationship with one’s family and friends by purchasing/using the same brand and talking about the consumption experience of the brand. Thus, consumers who tend to choose the same brand as many other people purchase more sensitively respond to WOM about a purchased brand. The results also show that, consistent with previous research, WOM about a brand never purchased has a positive impact on the brand consideration (γ = 2.33) and the effect of WOM on a brand never purchased is moderated by the importance of experience attribute (γ = .33).This study contributes to WOM research by showing that (1) WOM promotes the consideration even of a purchased brand and (2) the influence of WOM on the consideration of brands previously purchased and brands never purchased are moderated by different consumer characteristics. One limitation of this study is that the empirical analysis was conducted using only the data on beer. The empirical results should be validated using data on other categories.

Kaichi Saito

INNOVATIVE APPROACHES TO MARKETING EDUCATION

Frontmatter

Foundations for Effective Sustainability Education

Universities are increasing their focus on sustainability and related issues, and the ways in which these can be effectively communicated via curricula. While many issues have significant implications for future business practices and individual lifestyles, simple communication of information will not be sufficient to change student’s attitudes, beliefs and, ultimately, behaviours. There is increasing concern regarding a number of aspects of sustainability and the disjuncture between issue-awareness and individual actions that might address sustainability challenges. The identification of key barriers to and enablers of behaviour change to reduce sustainability problems is of particular pedagogical and public policy importance. This paper investigates undergraduate students’ perceptions, attitudes and beliefs regarding sustainability. It explores perceptions of their own contributions to sustainability problems and barriers to, and enablers of, behaviour. Findings reveal naïve awareness of the potential impact of, and individual contributions to, sustainability and environmental challenges. Respondents exhibited a tendency to regard major issues as ’beyond personal control’, and solutions as being the ’responsibility of others’. These perceptions are coupled with a reluctance to consider major lifestyle changes. The findings of the study have multiple uses including guiding the development and implementation of curriculum content. They will also provide the foundation for the development of intervention strategies and tactics that should be considered in order to achieve long-term positive behaviour change.

Lynne Eagle, David Low, Peter Case, Lisa Vandommele

INTERNATIONAL AND CROSS-CULTURAL MARKETING: COUNTRY OF ORIGIN

Frontmatter

Global Consumer Culture and Local Identity as Drivers of Materialism: An International Study of Convergence and Divergence

Globalization profoundly affects societies and individual consumers. Materialism is presumed to be a core characteristic of global consumer culture. Consumption-related values like materialism are pertinent for understanding the establishment, maintenance, and expression of cultural identity in the era of globalization. Worldwide, advertisers employ numerous themes associated with materialism: luxury, success, accumulation, happiness, glamour, and exclusivity, which serve to reinforce status, social class and the desirability of upward social mobility. Whereas much scholarly work has attended to materialism, cross-cultural studies examining its drivers are relatively scarce, inhibiting theory generalization to international contexts.To what extend does globalization promote the diffusion of a materialistic global consumer culture? Are national and ethnic cultures revitalizing in the face globalization and if so, is there any evidence that nationalistic and parochially-inclined consumers are resisting materialistic tendencies? More specifically, how and to what degree do the facets of global consumer culture and ethnic affiliation drive materialism, and how uniform are these relationships across countries and cultures? This question is probed with survey data drawn from more than 2000 consumers living in eight countries, drawn from North and South America, Western and Eastern Europe, as well as South and East Asia. Likert and semantic differential scales included multidimensional measures for ethnic identity (43 items) acculturation to global consumer culture (65 items), materialism (9 items), consumer ethnocentrism (4 items), as well as numerous socio-demographic indicators. Three levels of analyses (within-, between-, and across-country samples) were conducted, consisting of factor, reliability and correlational analyses; as well as multivariate analyses of covariance.Robust support emerged for the proposition that acculturation to global consumer culture drives materialistic values. Whereas most constituent dimensions associate with increasing levels of materialism, merely speaking more English does not, by itself, promote materialism. Rather, materialistic dispositions are shaped by intensive exposure to the marketing activities of multinational firms, via global (particularly, American) mass media, and also, by first-hand intercultural encounters. Possessions and luxury are important to the global consumer, and s/he is indifferent as to whether these material goods are produced locally or abroad, as evidenced by the lack of association between consumer ethnocentrism and materialism. Although mixed results were evidenced for the relationship of materialism to ethnic identity facets, the bulk of the significant relationships were positive, demonstrating that cultural traditions are not incompatible with materialistic tendencies, particularly with respect to interpersonal relationships with fellow ethnic members. Other similarities and differences are reported. Overall, the results underscore the notion that identity positions are fluid and in motion, as the result of reconciling the various acculturation factors facing individuals under different contexts. The results further suggest that materialism is inherent as well as learnable. Segments spill over national boundaries, and therefore, it is imperative to identify conditions under which consumer commonalities and dissimilarities are most likely to emerge.

Mark Cleveland, Michel Laroche, Nicolas Papadopoulos

A Model Linking Corporate Brand, Industry Image and Country of Origin Image

The image of the country is an important asset that directly influences the welfare and development of a nation. However, despite the efforts of many boards and industry associations in their communications to promote a country’s image very little is known about the cumulative process and sources that shape a country’s image. Most of the current research treats a county’s image as an exogenous variable and is concentrated on its consequences and the possible ways for it to be exploited. The proposed research seeks to address this gap in the literature by analysing the impact of a country’s corporations and industry image on their county’s image.This study focuses on the case of Spain and is based on empirical evidence provided by collecting qualitative and quantitative data from a face-to-face survey. For the purpose of this study three industries were considered, namely the automobile industry, the fashion industry and the tourism industry. Findings reveal that (1) the breadth of a country’s corporations in consumers’ memory affects the industry image of a country and (2) the specific industry images of a country at varying degrees affect the image of the country. This study extends previous research by analysing corporate brand, industry image and country of origin image simultaneously in an integrative model. The methodological approach and the findings from the empirical analysis complement extant research on the country branding literature.

Carmen Lopez, George Balabanis

Ambivalence in Ethnocentric Bias

Research indicates that consumers unequivocally tend to be biased in favor of their home country’s products and against foreign products (Herche 1992; Levin and Jasper 1996; Shimp and Sharma 1987; Supphellen and Gronhaug 2003; Supphellen and Rittenburg 2001; Verlegh 2007). This bi-directional phenomenon of biased perceptions of products according to their domesticity is called “ethnocentric bias” (toward domestic and foreign products). Nevertheless, ethnocentric bias could be contradict between explicit and implicit attitudes (Maison et al. 2004), and varied across product categories as well (Balabanis and Diamantopoulos 2004; Cleveland et al. 2009). Although extant research has empirically established the existence of those variations, systematically theoretical explanations are still in their infancy.This paper focuses on the variations of ethnocentric bias between explicit and implicit attitudes across product categories. Based on previous research, the study attempts to identify the kinds of product categories to which consumers will show similar patterns in explicit and implicit ethnocentric biases, and the kinds of product categories to which consumers will not. Empirical studies have found that when consumers hold ambivalent attitudes toward a country, their willingness to buy emblematic brands of that country will become weaker (Russell et al. 2011). Thus, to identify product categories toward which ethnocentric consumers may hold ambivalent attitudes (e.g., inconsistent explicit and implicit attitudes) is critical for international marketers.The results exhibit several interesting findings: for typical products, consumer ethnocentrism is positively related to consumers’ explicit attitudes toward domestic products, and negatively related to consumers’ explicit attitudes toward foreign products. However, such ethnocentric bias cannot be found for consumers’ implicit attitudes. In other words, ethnocentric bias is obvious explicitly but not implicitly for typical products. Ethnocentric consumers will show their preference for domestic typical products and their prejudice for foreign typical products, but at the same time hold implicit attitudes similar to less ethnocentric consumers.For atypical products, consumer ethnocentrism is positively related to consumers’ attitudes toward domestic products both explicitly and implicitly. There is no ambivalence in this case. Atypical products are usually products of those weak industries of a country. Ethnocentric consumers have strong sympathy toward those domestic products and would like to sincerely support those industries. On the other hand, there is ambivalence in ethnocentric bias again for foreign atypical products. Although ethnocentric consumers tend to consistently show explicit prejudice to foreign products, associations with atypical foreign products are so weak in consumers’ minds that no significant relationship between consumer ethnocentrism and consumers’ implicit attitudes could be found.In summary, consumers tend to show ambivalent ethnocentric bias toward typical products. While their explicit ethnocentric biases are quite obvious, their implicit ethnocentric biases are not. This result implies that typical foreign products may suffer less from consumer ethnocentrism.

Ting-Hsiang Tseng, George Balabanis, Matthew Liu

Acculturation and Advertising: Evidence from South Korea

To enrich the literature on the links between communication strategies and acculturation, this study first proposes an in-situ research approach as a complement to the widely explored ex-situ acculturation perspective. South Korea provides an exemplary case for the analysis of this phenomenon due to its strongly dominant traditional culture and its recent relative cultural invasion in the context of market globalization. The study then explores the values conveyed by advertisements vs. the values used by consumers in the interpretation of these advertisements, investigating two dimensions: use, as represented by community (food) vs. personal products (cosmetics), and origin, i.e. local vs. global products. Our results primarily suggest that traditional values coexist with non-traditional values in the advertising content rather than in the values used by consumers. Additionally, a large set of non-traditional values are used by consumers, evidencing a high level of in-situ acculturation.

Caroline Gauthier, Marianela Fornerino

ONLINE ADVERTISING AND WOM

Frontmatter

How Companies Use Facebook to Promote Alcohol Brands to Young Adults

How do alcohol brands use Facebook to promote drinking to young adults? This topic is important due to the ethical issues involved in alcohol promotion through social media platforms that are particularly appealing to young people; due to the lack of advertising regulation on social media until March 2011 in the United Kingdom (Plunkett 2010); given the scant attention received by this subject within the marketing and business ethics literature, and finally due to the recent data on alcohol consumption which shows that 24% of British adults (33% men and 16% women) are classified as hazardous drinkers (NHS 2011).

Nina Michaelidou, Caroline Moraes

I’m Friends with Louie the Fly, not Mortein: Conceptualising the New Brand Relationships on Social Media

Spokes-characters are ’…animated beings or objects, created to promote a product, service or idea’ (Phillips 1996, p.155). They were first used in the late 1800s when they emerged as registered trademarks, but the use of spokes-characters for marketing communications has since grown, owing to their ability to remind consumers about a product, transfer positive associations to a brand, and give a corporate company a more ’personal’ face (Callcott and Lee 1995). One example is the Michelin Man, who has served as spokes-character for Michelin tyres since 1898, after starting out in print advertising.

Kate Letheren, Kerri-Ann L. Kuhn

On Bricks and Clicks Consumer Search Strategy as a Basis for Multi-Channel Management

Many companies tailor their communication and interaction with consumers by segmenting consumers into channel usage groups. This study argues that simply focusing on channels has limited effectiveness. As more and more consumers nowadays use multiple channels, the ’online’ channel contains many different forms, and channels are increasingly blended, the common distinction between ’online’ and ’offline’ is becoming irrelevant. We have identified several strategies that reveal how consumers find their way through a multi-channel landscape during the various phases of a purchase. By explaining channel usage through these so-called search strategies, we propose a clear and robust model that will support companies in developing an effective multi-channel strategy.

Gerrita van der Veen, Robert van Ossenbruggen

DEALING WITH NEGATIVE INCIDENTS

Frontmatter

Reporting Complaints: Scale Application and Replication

The concept of willingness to report service complaints (WRC) appears in previous service marketing literature that validated this scale. However, the original scale development took place in the context of Israeli service organizations, and wider uptake of the scale has been slow. The present study examines the meaningfulness and validity of the construct by applying the scale to a culturally different country. Comprehensive validation procedures with a sample of more than 230 service employees demonstrate the reliability and validity of the WRC scale.

Gianfranco Walsh, Arne K. Albrecht, Patrick Hille, David Dose, Simon Brach

Fellow Customers as a Source of Unfriendliness: The Role of Descriptive Norms in Deviant Customer Behavior

This research investigates how customers influence one another in the servicescape, as well as how this influence affects deviant behavior toward service employees. Drawing on social norm and social identity theories, the authors hypothesize that the appropriateness of fellow customers’ behavior predicts customers’ friendliness toward employees, as long as fellow customers appear similar to the self. The hypotheses tests use data obtained from a sample of more than 200 shoppers. By applying multivariate regression and moderator analyses, the authors determine that fellow customers serve as critical antecedents of deviant behavior. If customers perceive fellow customers’ behavior as inappropriate, they are less friendly toward service employees, but only when those customers perceive their fellow customers as similar to themselves. These results have theoretical and practical implications within a social norm framework.

Arne K. Albrecht, Gianfranco Walsh, Simon Brach

Exploring the Positive and Negative Aspects of Customer-Brand Relationships: Why Disengagement Matters

Conceptualizations of customer-brand relationships have tended to focus on relationship development and maintenance (e.g., Fournier, 1998; Palmatier et al. 2006). However, it has been noted that focusing on only the more positive aspects of relationship development and engagement, instead of examining this in tandem with the process of relationship termination, risks the creation of a schism in our understanding of customer-brand relationships (Bendapudi & Berry 1997). Morgan and Hunt (1994, p. 33) have reiterated this point in noting that "just as medical science should understand both sickness and health, marketing science should understand both functional and dysfunctional relationships." It follows that if marketing firms are to continue to promote the development of engaged, long term relationships with their customer base then a more complete relationship development model which examines not only engagement, but also disengagement is required. This paper will focus on this important process.

Jana Lay-Hwa Bowden, Mark Gabbott

WHEN CONSUMERS GET CREATIVE

Frontmatter

Consumer Creativity and the World’s Biggest Brand

Consumers are creative with the products and services they use. But all these consumer innovations are not equal in terms of creativity. This paper examines 51 consumer generated uses for Coca-Cola using two creativity dimensions: novelty and utility. Using these dimensions, we propose a consumer creativity typology, which includes: low value uses, marketed uses, unusual uses, and potentially marketed uses. Implications, risks, and opportunities are discussed for how a firm may respond to creative consumers based on how creative is their innovation.

Karen Robson, Kirk Plangger, Adam Mills

The Brand Personality of a Copycat Product: The Case of Tribute Bands

Recent statistics (Billboard, Vol. 121, No. 51, p. 166; December 19, 2009) show that music concerts generating the biggest incomes are those from artists who have reached their peak of popularity decades ago. There are many reasons for this popularity: an aging population, the difficulty for contemporary artists to generate sufficient interest to perform in large venues and/or to tour for a long time, the fragmentation of musical styles, etc. This context makes it suitable for the popularity of tribute bands. A tribute band is a musical group that plays the music of an original group that used to be popular. It does so with a variable level of mimicry. Not only do they act legally, but they may be endorsed by the genuine band. Furthermore, a tribute band like The Queen Extravaganza is even produced by the original Queen drummer Roger Taylor! Tribute bands do not only play the hits made popular by the band to which they pay tribute, but they may also copy other characteristics associated with the original band. These characteristics are numerous and may include songs, vocal harmonies, stage accessories, physical appearance of the original musicians, costumes, signature moves by the group leaders, etc. These groups usually have a brand name that refers explicitly to the original group without literally copying it (e.g., Brit Floyd for Pink Floyd, Led-Zepplica for Led Zeppelin, etc.). Some tribute bands have their own fan base who shares news and opinions about the band through virtual brand communities on the Web. Professional tribute bands like The Australian Pink Floyd Show even have their own merchandise (T-shirts, programs, CDs, etc.) sold at their concerts and on their Web site. But unlike other forms of copycats, their intentions are not malicious since they do not want to deceive the consumers. They always promote themselves as a copy of an original act. Thus, we are not in presence of a counterfeit product, although some tribute bands are successful at emulating every aspect of the original band (e.g., The Musical Box, a tribute band fully reproducing the original concerts of Genesis). Consumers are well aware that they are in front of a copy. The copy can then act as a substitute for the original band (1) that no longer exists; (2) that is composed of aging and less efficient musicians; (3) that will no longer play its former hits; and (4) where the ticket price for the show may be too high. During the live performance, the tribute band tries to play in such a way that consumers could have an experience as good as the one produced by the original group. Tribute groups use a copycat strategy based on elements that are "attribute-based" and "theme-based" (Micelli and Peters (2010), which is a mixture of more or less tangible elements specific to the original group. But can these bands that mimic the work and the stage performance of an original group also emulate the (brand) identity of the original group?

François Marticotte

Measuring Consumer-Based Brand Authenticity

Authenticity has historically been associated with transcending the self and the market (Beverland, 2005; Fine, 2003; Kozinets, 2002; Peterson, 2005; Thompson, Rindfleisch, & Arsel, 2006), yet an emerging stream of consumer research identifies that people attribute authenticity to brands. Research suggests that authenticity is central to brand status, equity and corporate reputation (Beverland, 2005; Gilmore & Pine, 2007), with some even suggesting it is one of the “cornerstones of contemporary marketing”, (Brown, Kozinets & Sherry, 2003, p. 21). Scholars have previously examined consumers’ quests for authentic experiences (Arnould & Price, 2000), rituals associated with the authentic self (Belk & Costa, 1998; Kozinets, 2002), the cues used to attribute authenticity to objects (Beverland, Lindgreen, & Vink, 2008; Grayson & Martinec, 2004; Leigh et al., 2006; Thompson et al., 2006), the processes used to assess an object’s authenticity (Rose & Wood, 2005), and the various forms that authenticity can take (Brown et al., 2003; Grayson & Martinec, 2004). We extend this line of inquiry by defining and measuring consumer-based brand authenticity. We do this through the development of a brand authenticity scale. Such research seeks to reduce the present fragmentation of research on the consumption of authenticity and assist managers create and maintain a brand’s authenticity—building on calls for more research in this area (Beverland, 2005; Leigh et al., 2006; Peterson, 2005).

Julie Napoli, Sonia J. Dickinson, Michael B. Beverland, Francis Farrelly

ORGANIZATIONAL SUSTAINABILITY AND THE FUTURE OF GREEN MARKETING

Frontmatter

Holistic Management of SME Environmental Management Practices: Toward a New Typology

The context for this study is SME energy and waste management practices. A sample of 155 Australian SMEs in three industry sectors enables a quantitative analysis of environmental practices. The study’s scope includes business drivers and measurement of a wider range than usual of environmental practices. Conceptually, a new typology of environmental management strategy is proposed, focusing on four alternative types. The findings, through cross-validation, support the usefulness of the newly proposed typology. The results position the typical SME at an elementary level of environmental practice, with a challenge for future research to better understand how firms progress up the typology ladder. More positively, about one third of the sample of SMEs has evolved their business model to seamlessly incorporate sustainability issues. Green competencies have been developed to enable them to do this. Together, environmentally friendly products and brand reputation create a major platform for progressive SME environmental business practices.

Dale Miller, Bill Merrilees

Fit to be Creative: Organization-Employee Congruence on Environmental Values

This study examines how the match (vs. mismatch) between personal and firm-level values regarding environmental responsibility affects employee job satisfaction and creativity and contributes novel insights to three literature streams (i.e., creativity, social corporate responsibility, and person-environment fit). Building on the person-environment (P-E) fit literature, we propose and test environmental orientation fit vs. nonfit effects on creativity, identifying job satisfaction as a mediating mechanism and regulatory pressure as a moderator. An empirical investigation indicates that the various environmental orientation fit conditions affect job satisfaction and creativity differently. More specifically, environmental orientation fit produces greater job satisfaction and creativity when the employee and organization both care highly about the environment (i.e., a high-high environmental orientation fit condition) than when both display congruent low concern for the environmental (i.e., a low-low environmental orientation fit condition). Furthermore, for employees working in organizations that fit with their personal environmental orientation, strong regulatory pressure to comply with environmental standards diminishes the positive fit effect on job satisfaction and creativity, while regulatory pressure does not affect the job satisfaction and creativity of employees whose personal environmental orientation is incongruent with that of the organization.

Jelena Spanjol, Leona Tam, Vivian Tam

Reflecting on the Past Decade of Marketing: Taking Stock of Green Marketing Literature

Ever since the thought of manufacturing green products, environmental sustainability and eco-friendly business processes of corporate sector has gained momentum, there has been gradual increase in the awareness levels among consumers and various other stake holders. This momentum from the market has gradually percolated into other areas such as research in marketing and teaching marketing courses at B-schools. However, the extent of research in marketing with focus on Green & Sustainability needs to be examined. The objective of this study is to review the importance given to the growing idea of Green in marketing in academic research. This is captured through taking stock of conceptual, empirical and case based papers focusing on Green and Sustainability in marketing, over the past decade. This paper provides an insight about actual work carried out so far and what is needed in academic research for shaping the future of marketing to embrace the new paradigm of business in the context of environmental sustainability.

Sabari Raghavendran, Satya Moorthi

Marketing Renewable Energy in Developing Countries: A Policy Paradigm for Mexico

A high potential growth for renewable energy technologies is available in Mexico. However, oil consumption has hindered the transition to a green economy. This paper analyses the Mexican stage and the factors influencing the renewable energy market using PESTL technique. A research framework to market renewable energy in Mexico is proposed. Such framework involve the analysis of incentives to energy, the dissemination knowledge among market participants, the fostering of government-private-NGO partnering in projects deployment, the development of organizational capabilities, and the promotion of feasible technologies. This paper concludes that only the use of sustainable energy will allow the country to achieve the economic, social and environmental benefits of sustainable development. The resulting framework from this study will offer new insights to corporate strategists and policy makers and help them increase the share of renewable energies.

Pável Reyes-Mercado, Rajagopal

HERITAGE, ARTS AND WINE

Frontmatter

Does Destination Services Matter in Gaming Destinations? The Role of Travel Purpose

The extensive literature has consistently acknowledged the central role of services in travel satisfaction and behaviors (Pritchard and Howard 1997). Yet, there remains a scarcity of research examining the drivers of tourist travel experience as well as the outcomes of this experience. In fact, there is a paucity of empirical research investigating the linkage between various destination services and travel experience, especially in gaming destinations. This gap in research has limited scholars and practitioners alike in advancing tourism and hospitality theories, especially when we are moving toward an experience economy as some researchers suggest (Pine and Gilmore 1998). If services are the key ingredients in tourism and drivers for tourist travel experience, the linkage between destination services and travel experience deserves more attention.

IpKin Anthony Wong, Xiangping Li

The Power Balance in the Contemporary Art Market: Artists, Dealers and Collectors

The international art market is thriving with a range of powerful stakeholders. Largely unregulated with its own rules based on handshake and trust, the art market is home to an exclusive few, yet inspires and intrigues many more. This paper focuses on the primary contemporary art market, where artists supply original art works which are being distributed by art dealers1 to individual or institutional collectors (Throsby, 1994). In this channel setting, the gallery assumes a role beyond the simple distributor of art: The gallerist promotes the artist’s career with a long-term view and “places” the work with important collections, he interprets the body of work for the collectors and takes over administrative functions for the artist (Caves, 2000; Thompson, 2008). Thus, the relationship between artist and gallerist can be characterized as a deep partnership. However, with thousands of artists competing for a prestigious gallery representation, the art dealers are often holding the cards in this game.

Katharina Kurz

What is the Perceived Value of Wine? A Cross-Generation Study of Consumer Wine Perception and Consumption Behavior

As a consequence of the highly complex nature of wine as a product, a deeper understanding of the key drivers of consumer wine perception and consumption behavior is a major challenge for practitioners and researchers in the domain of wine marketing. The desire for and the consumption of wine seems to involve several dimensions of customer perceived value perceptions. Additionally, situational determinants, consumer characteristics like product involvement, experience and needs or demographic variables such as gender and age might affect the wine purchase.Against this backdrop, incorporating relevant theoretical and empirical findings, our study focuses on the antecedents leading to the consumption of wine in general and with particular attention to a comparison between the attitudes and behavior of wine consumers belonging to the Generation X and the Generation Y. This paper is structured as follows: first, the conceptual model and related hypotheses are presented based on existing research insights on wine marketing and customer perceived value; second, the methodology and results of our empirical study are described. Third, the results of our analysis are discussed with reference to managerial implications and further research steps.The question of what really adds value in consumer wine perception is in accordance to the insights of Wiedmann et al. (2007, 2009) defined in this paper through the existence of four latent value dimensions: the financial value of wine, the functional value of wine, the individual value of wine and the social value of wine. These four consumption values are expected to drive purchase attitude and behavior, represented in our study by the construct of wine consumption. Within this context the involvement construct describes the perceived relevance of a specific product – in our case wine – derived from inherent needs, values and interests.To measure the dimensions of value-related consumer attitudes and behavioral effects on wine consumption focusing on Generation X and Generation Y consumers, we relied on already existing and tested measures. All items were specified to a wine consumption context and rated on five-point Likert scales (1 = strongly disagree to 5 = strongly agree). The questionnaire was pre-tested with 50 respondents of both consumer groups to ensure the quality of the items used against the backdrop of our conceptual model and related hypotheses. To investigate the research model, we conducted 215 personal interviews in Germany with regular wine consumers representing the Generation X and Y. In our exploratory study context of examining the drivers and outcomes of wine consumption based on a cross-generation sample, we conducted a PLS path modeling analysis with case-wise replacement and a bootstrapping procedure (individual sign changes; 215 cases and 1000 samples) to test our hypothesized structural relationships.Referring to the whole sample, the latent variables financial value, functional value, individual value, social value and involvement reveal a positive relationship to the latent variable wine consumption. Besides, while the impact of all other customer perceived value dimensions was significant for the Generation X sample, for the Generation Y sample, no significance could be found in the positive relations of financial, functional, and social value perception to wine consumption. In contrast to this, the positive impact of the latent variable wine involvement on wine consumption is only significant for the Generation Y sample. Consequently, it can be stated that Generation X consumers put significantly more emphasis on the different perceived value aspects regarded as a whole, whereas the product-specific involvement is of particular importance especially for Genration Y consumers.Based on insights of the types of value consumers perceive in the context of wine consumption, successful management strategies should focus on the customer’s subjective expectations and individual value perceptions to be able to deliver sufficient value. By addressing the specific value aspects that are highly relevant for consumer loyalty to the product or brand, winery owners and distributors can stimulate purchase behavior with appropriate campaigns that emphasize the most important value aspects. Besides, the differences in the perceived importance of the various antecedents of wine consumption can be used to segment the wine market accordingly.

Klaus-Peter Wiedmann, Stefan Behrens, Nadine Hennigs, Christiane Klarmann

CONSUMER BEHAVIOR: SENSORY MARKETING

Frontmatter

Touching but with the Eyes Only! The Effectiveness of Textured Packaging and the Moderating Effect of Previous Tactile Stimulation

This study analyses the effectiveness of textured packaging and the moderating roles of tactile stimulation and an individual level variable, the NFT instrumental dimension. We show that touching a first product can fulfill the need for touch and potentially decrease or suppress the visual effect of texture of subsequent products.

Bruno Ferreira, Sonia Capelli, Olivier Trendel

The Formation of Customer Engagement Behavior in a Hedonic Service Setting

Looking back on decades of traditional marketing effort, the advent of social media and the digital interface has dramatically escalated opportunities for consumers to engage with brands and products. Broader access through technology not only enables consumers to acquire/share information more readily about themselves and the products they are interested in, but supports firm competencies for nurturing relationships and engagement with customers (Verhoef, Reinartz, and Krafft, 2010). Research on consumer engagement behavior (CEB) prioritizes developing insights on how consumers become involved with products, search for/share information and interact with brands. This is the focus of the current study, which proposes and tests a formative model of CEB in a hedonic service setting.

Mark P. Pritchard, Daniel C. Funk

Need for Touch and Multichannel Search and Purchase

This paper firstly analyses the relationship between the consumer’s need for touch and the channels used during search and purchase stages. The focus will be the fashion industry, characterised by offering highly hedonic products, where great importance is placed on the sense of touch. Secondly, the moderating effects produced by the type of touch (autotelic / instrumental) and by the types of shopping task (goal-oriented / experiential-oriented) are also analysed.Results show that autotelic NFT becomes delimited by, and subordinated to, the instrumental one, as in the configuration of the overall NFT, high levels always involve a high instrumental dimension without which they do not occur. The instrumental NFT dimension defines both the online purchase, with its lowest values, and the use of physical channels, as it has values as high as those related to the autotelic one. The instrumental NFT dimension prevails over the autotelic one, both for goal-oriented and experiential consumers. Regarding multichannel shopping, those consumers who search or buy on the Internet show a lower level of NFT, both overall and in its two dimensions, compared to those consumers who choose physical channels. This is particularly noticeable in relation to the purchase phase.

R. Manzano, M. Ferrán, D. Gavilán, M. Avello, C. Abril

SPORT SPONSORSHIP

Frontmatter

Differences In Effects of Sport and Non-Sport Sponsorship on Sponsor’s Employees

Corporate sponsorship has long been regarded as a growing communication tool (Olson 2010), with worldwide spending reportedly exceeding $48 billion in 2011 alone (IEG 2012). Corporate sponsorship is differentiated from other forms of organisational altruism, as it is defined as “an investment in cash or kind in an event, team or person, in order to secure sponsor’s access to the commercial potential associated with that selection“ (Meenaghan 1983; p.9). Thus, the definition implies the expectation of a benefit or a return to the sponsor.

Aila Khan, John Stanton

A Multi Criteria Decision Analysis Approach to Measure the Effectiveness of Sports Sponsorship

This study offers a model which is able not only to measure the success of sponsorship but also fill the gap of a guide for the decision makers who are about to make sponsorship agreement. It investigates the jersey sponsors of football, men’s basketball, and women’s basketball of three major sports clubs in Turkey. Two separate surveys were conducted in the context of the study. The first was to prioritize evaluation criteria and applied to experts, sports managers, and company executives. The second was to determine the most appropriate sponsorship match between sports clubs and jersey sponsors as perceived by the fans. The fan survey was distributed both print and online, which was also advertised in sports newspapers and forums of fan clubs of the investigated teams. In the proposed model, the importance that was driven from the AHP was used in the TOPSIS method in order to evaluate the sponsorship matches.

Mine Isik, Ozay Ozaydin, Sebnem Burnaz, Y. Ilker Topcu

An Examination of Conditions that Moderate Negative Effects of Sponsorship Terminations on Fan Attitudes Toward the Former Sponsor

The sponsorship literature devotes considerable attention to the early stages of a sponsorship relationship and the effects of sponsorship on consumers’ awareness of and attitude toward sponsors (Cornwell 2008). Relatively little research has studied the impact on fan behaviour caused by a termination of a sponsorship relationship (Ruth and Strizhakova 2012). While a sponsorship termination might result out of reasonable causes for the sponsor, it usually has an unfavourable impact on fans’ attitudes toward the sponsor, particularly when the termination is perceived as unjustified. This paper draws on personal relationship theory to identify conditions that influence negative effects of sponsor initiated sponsorship terminations on perceptions of the (former) sponsor brand.In the context of team sports, fans perceive a strong connection to a team and experience the team’s failings and achievements as their own personal success and failure (Ashforth and Mael 1989, Gwinner and Swanson 2003). This situation describes a very close relationship between fan and team, so close that intermediate boundaries between fan and team vanish and an impression of one perceived unity develops. Sponsors intend to “capture a consumer’s share of the heart” and become interlinked with a part of the “consumer’s extended self” (Madrigal 2000, pp.14, 23). Personal as well as sponsorship relationships develop over time through significant interactions between the relationship partners based on the principle of mutuality and goodwill. Unfortunately, not all relationships endure forever and they fall victim to termination, often following a degenerative episode (Westberg, Stavros and Wilson 2011). In the context of sponsorship, Olkkonen and Tuominen (2006) as well as Farrelly (2010) examine relationship-related causes of sponsorship terminations induced by the sponsor. Recent empirical studies show that sponsorship exit can have unfavourable effects on the sponsor’s brand image, depending on corporate (financial) situation (Papies, Knubben and Schnittka 2010), trust in the sponsor’s arguments legitimating the decision (Messner and Reinhard 2012) or perceived sponsor motives (Woisetschlâger, Grohs and Reisinger 2011). Personal relationship theory suggests specific relationship quality factors that influence the perceived negativity after a break up in human relationships. We expect that this negative effect is stronger if fans perceive a high fit between the sponsor and the sponsored team, if sponsor dependency is high, i.e. the current sponsor is very important or no replacement sponsor is available, and if the team performs poorly. In addition, sponsorship duration is expected to interact with the drivers of negative fan attitude, in that a sponsorship termination after a long time is considered worst in conditions of a good sponsor-team fit with no replacement sponsor at hand.An experiment was conducted to test the theoretically derived propositions in the context of a soccer team and a fictitious sponsor brand. Data collection took place using an online questionnaire which was posted on the official fan website of the sponsored soccer club and distributed via the official fan club newsletter. A total of 612 respondents participated in the data collection. 483 respondents identified themselves as avid fans of the sponsored club.The hypotheses were tested using independent samples t-tests and ANCOVAs. The study shows that fan attitudes toward a sponsor that terminates a sponsorship of their favourite team are worse than attitudes toward a sponsor that continues the sponsorship. More negative attitudes toward the former sponsor result if the sponsor fits well with the team and if no replacement sponsor is available. Results also indicate marginally more negative attitudes if the sponsor is important and if the team is performing poorly. Overall, sponsors need to worry most if a long-term sponsorship is terminated when no replacement sponsor is available and fans perceive a good match between the team and the (former) sponsor. When a sponsorship does not fulfil organizational expectations, the sponsorship is not renewed or even cancelled. Such sponsor withdrawals are important because sponsors have to deal with potential problems following the termination of a sponsorship deal. In line with personal relationship theory the present experimental study revealed a general negative effect of sponsorship termination on fan attitudes toward a former team sponsor which is further amplified by various relationship quality factors. Despite the advantages of such an experiment in a controlled environment, further research is needed to establish external validity of the findings in the context of real-world sponsorships with real sponsors.

Reinhard Grohs, Kim Kopfer, David M. Woisetschläger

BRANDING AND EMPLOYEE RELATIONSHIPS

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Satisfying Customers Through Satisfied Service Employees: Integrating the Emotional Labor and Emotional Contagion Perspectives

The importance of service employee satisfaction in enhancing customer satisfaction has been emphasized, yet there is limited research exploring the mechanism linking them. Research indicated that employee satisfaction will influence service employee’s emotional labor (Austin et al., 2008; Cheung and Tang, 2009; Diefendorff et al., 2005; Groth et al., 2009; Kiffin-Petersen et al., 2011; Tan et al., 2003). In turn, emotional labor affects the emotional contagion between service employees and customers (Gosserand and Diefendorff, 2005; Grandey, 2000; 2003), which eventually influences customer satisfaction (Bettencourt et al., 2001; Pugh, 2001; Tsai, 2001; Tsai and Huang, 2002). In other words, the relationship between employee and customer satisfaction can be mediated by emotional labor and contagion. However, little empirical research has been done to explore such a mechanism. This research attempts to fill the research gap by developing and testing an empirical model that examines the new emotional mechanism through which satisfied employees satisfy customers.

Jiun-Sheng Chris Lin, En-Yi Chou, Cheng-Yu Lin

Impact of IM Programs on Fle’s Perception of IMO and Performance Outcomes

Frontline employees (FLEs) are one of the key sources of competitive advantage (CA) for firms, as consumer experiences and perceptions of firms are influenced by how effectively FLEs deliver services. Firms have adopted internal market orientation (IMO) to ensure FLEs needs and wants are well understood and appropriate ’job products’ are delivered. Recent studies have depicted IM programs as encompassing-i) actions (empowerment and participative decision making) and, ii) words/communications (i.e., the formalization of communication between employees and management), and these programs have been argued to improves employees’ perception of organization’s strategies (i.e. IMO). However, FLEs are not always positively disposed towards IMO and IM programs, but rather, sometimes believe they are designed to increases the firm’s demands on its employees. Therefore, it is critical for organizations to understand how FLEs’ experience specific IM programs and whether, their experience in turn impact on FLEs’ customer oriented behavior (COB) and performance. This paper develops and tests a conceptual framework investigating; i) the relationship between FLEs experience of three types of IM programs and employees’ perception of IMO, ii) the relationship between employees perception of IMO and FLE customer oriented behavior and, iii) the relationship between FLE COB and employee performance.Self-Administered surveys were distributed to 563 customer contact FLEs working for a large general insurance company in Bangladesh. 295 usable surveys were returned representing a response rate of 52%. Structural equation modeling was then undertaken to test the relationships in proposed model presented. The study found that FLEs’ communication formality was not significantly related to perception of IMO, whereas, both FLEs’ empowerment and participation in decision making were significantly and positively related to FLE’s perception of IMO. The study further found significant and positive relationships between perception of IMO and FLEs’ COB. FLE’s COB was also found to be significantly related to performance. Further, through mediation analysis the study also found that FLE’s perception of IMO only indirectly impacted on employee performance through FLEs’ COB.The results contribute to the literature by identifying that action based programs involving employees participating in decision making and being empowered to act positively influence FLEs’ views of IMO. However, formal communication, which may or may not accurately reflect organisational actions, does not impact on FLEs’ perceptions of IMO. The full mediation effect of FLE’s COB between perception of IMO and FLE performance is critical for management. The finding identifies that programs need to directly foster customer oriented behaviour among FLEs if management wants to improve FLEs performance and thus organisational performance.

Ahmed Shahriar Ferdous, Michael Polonsky

RETAILING CONVENIENCE, PATRONAGE AND CONCESSIONS

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What do Consumers See when they Look at Displays? An Eye-Tracking Study

Marketing practitioners and researchers operate on the underlying assumption that when looking at merchandise displays, consumers pay attention to both price and the merchandise itself. Further, they assume that price is a critical cue in making purchase decisions. What grabs consumer attention when first glancing at a display? Do some consumers focus only on the merchandise and overlook price? Do consumers look only at price and if the price is not “right” ignore the merchandise? The purpose of this study is to assess what grabs consumers’ attention when viewing merchandise displays. We used eye tracking to test the attention grabbing power of 4 Valentine gift displays.

Bridget K. Behe, Patricia Huddleston, Lynnell Sage, R. Thomas Fernandez

Waiting for Checkout: Toward an Understanding of Customers’ Perceptions

Waiting in line to check out of a store or from a service provider is a necessary but undesirable experience for consumers. It remains a serious problem for retailers and service providers even though scanning technology and self-checkout systems have been increasingly introduced. Prior studies on this problem have emphasized that wait time leads to negative customer evaluation of service delivery. However, the accumulation of empirical research on this problem is not extensive. Thus, this study aims to develop useful measurements for investigating customers’ perceptions of waiting and service management.

Fumikazu Morimura, Kenichi Nishioka, Chieko Minami

Determination of Success Factors of the Shop-in-Shop and the Concession Model in the Fashion Industry: An Empirical Ananlysis of Consumer Perception in the Case of Hugo Boss Benelux in Spain

In the fierce competitive environment of the fashion industry, characterized by increasingly shorter product-life-cycles, growing expectations of informed consumers and an intensifying pressure from cheap products, consumer proximity, a strong brand presentation and a short time to market, are decisive elements for manufacturers. Due to market concentration of large-scale retail chains and a shift in power within the distribution channel from manufacturers towards retailers, new vertical marketing concepts emerged which allow to increasingly control the retail channel. Especially the specific success factors of the Shop-in-Shop Concept (SiSC) and the Concession Model (CM) are under focussed discussion. This paper aims to explore the consumers’ perception of the CM compared to the SiSC in retailing.The research question here is:Do consumers perceive the potential benefits of the CM compared to the SiSC in fashion retailing?In these premises an exploratory study was undertaken.By means of grounded research a framework was developed and the success factors of both concepts regarding Instore Marketing, Merchandise and Personal selling were determined. Based on these findings hypotheses were put forward and tested by means of primary data (consumer survey) gathered in selected sales areas of HUGO BOSS, managed by means of the two retail models (CM and SiSC) in department stores of El Corte Inglés (ECI) in Spain.

Christina G. Gaupp, Marc. M. Kuhn

TOWARDS A GLOBAL FRAMEWORK FOR ADVERTISING SELF-REGULATION

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Towards a Global Framework for Advertising Self Regulation

One of the forces which has indelibly shaped marketing is the internet. It has not only changed the way we communicate, but our marketing practices and our advertising self-regulation process (Kerr, et al 2012). Most advertising self-regulatory frameworks are country specific and typically an artefact of culture and the national regulatory environment (Boddewyn 1989; Rotfeld 1992). The importance of protecting consumers from deceptive advertising is universal, and in trying to regulate a global medium, we need to integrate national concerns into global guidelines and international best practice. Currently there is no global framework for advertising self-regulation, even though there is an urgent need to both protect consumers in this unregulated environment and ensure marketers’ obligations for legal, decent and truthful advertising are met.

Park Beede, Jean Boddewyn, Sonia Dickinson, Gayle F. Kerr, Kathleen Mortimer, David S. Waller

UNDERSTANDING RELATIONSHIPS

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The Behaviours of Relationship Building: A Networking View

Using a framework of early stage or “pre” relationship development, this paper reports survey findings of how business professionals undertake networking, specifically at networking events. The focus is on the micro level behaviour that they engage in prior, during and after their attendance at an event. Using chi square analysis, the data was analysed so as to identify possible associations between four key demographic variables and a range of networking activities. Both the way networking is approached and actual networking behaviour were considered. Cluster analysis was used to develop behaviourally-based segments, i.e. the micro behaviour attendees engage in during the event phases. A key finding emerging is that the amount of recent attendance at events influences networking behaviour (and possibly vice versa) irrespective of network event experience. Subsequent networking behaviour is likely to be more effective.

Sana Marroun, Samrand Toufani, Louise Young

Parasocial Relationships and Brand Tribal Behavior: Delineating their Link

Consumers do not only develop relationships with brands but with other consumers as well because of the brands (Veloutsou, 2009). Both types of relationships are important for brands and their managers (Schau et al., 2009) and should be taken into account. The consumer-to-consumer relationships are referred in the literature as brand communities, brand sub-cultures and brand tribes (Fournier 1998; Cova and Pace 2006; Bazaki and Veloutsou 2010). This study adopts the term brand tribe to describe groups of individuals who join a brand group in an informal manner and demonstrate tribal behavior. This type of consumer relationship has attracted recently research attention (Bazaki and Veloutsou 2010; Tsiotsou and Veloutsou, 2011) because it is related to important brand outcomes such as brand loyalty (Roos et al. 2005; Hur et al. 2011). However, although brand tribes result from consumers’ interest in interacting with other consumers who share the same interest and feelings toward a brand, it has been documented that not all consumers are engaging in brand tribe activities in the same manner or to the same degree (Ballantine and Martin, 2005; Casalo, Flavian, and Guinaliu, 2008; Motion, 2008). Some of the brand tribe members might exhibit parasocial behavior: they observe the activities of other brand tribe members and do not participate or get involved in these activities. The purpose of the present study is to investigate the relationship between parasocial relationships and tribal behavior in brand tribes. The liaison between the two constructs has not been studied before so the study contributes to the literature and practice.

Rodoula H. Tsiotsou

STRATEGIC PRICING AND PRICING PROMOTION

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How much do Product Differentiation, Marketing Investments and Brand Equity Actually Affect Price? An Empirical Study in the Consumer Market

Interdisciplinary research on marketing and finance phenomena has received some attention in the literature over the last couple of years, but such research is still scarce and limited in scope. This study is an attempt to highlight the influence of various marketing phenomena on price and on possibilities to obtain the price premium in the consumer market.The author studied an aggregate data set for 735 fast moving consumer goods (FMCG) (food) brands. The study suggests that brand equity, marketing investment and innovation activities are closely associated with price. Using a cluster analysis, the author found that price premium is significantly associated with innovation and company type with regards to the brand strategy.Rather than employing the more common single-research approach and measurement, this study utilizes a multi-research approach and measurement in order to provide a more insightful and informative contribution to marketing theory and practice. The managerial implications of the presented models estimated by regression analysis, as well as the results of the cluster analysis and possible research enhancements, are discussed.

Nebojsa St. Davcik

The Antecedents of Strategic Pricing and its Effect on Company Performance

A number of different authors have stressed the importance of treating pricing from a strategic point of view if effective pricing decisions are to be made (e.g., Smith, 1995; Monroe, 2003). Strategic orientation of price management relates to a systematic planning process where price decision making is derived from the overall corporate goals and strategy and is strongly associated with the company’s marketing strategy (Nagle and Holden, 2001). However, strategic pricing orientation has not been discussed extensively in the existing literature so far, either from a theoretical or an empirical point of view. In response to this identified topic of neglect, the focus of the current paper is to provide insights regarding the notion of strategic pricing. More specifically, the present research sets out to investigate the role of strategic pricing in the services sector by intending to a) measure the extent to which selected contextual variables have an impact on the adoption of strategic pricing, and b) determine the effect of the adoption of strategic pricing on company performance. The rationale for focusing on services rather than physical products relates to the fact that the empirical research that has been undertaken in the field of service pricing is limited when compared to product pricing (Docters et al., 2004).

Kostis Indounas

TOURISM 2: GAMES, GROUPS AND EVENTS

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The Role of Expectations, Confirmation, and Perceived Performance in Olympic Games Attitudes: A Cross-National Longitudinal Study

The Olympic Games (OG) is a mega-event on many dimensions, including participants, audience, expenditures, and national rivalries. As such, it creates branding opportunities for the Games themselves, host countries, athletes, and corporate sponsors. This study explores the impact of expectations and their confirmation on attitudes and evaluations of the OG as a sport mega-event and as a destination from the perspective of domestic (i.e., Canadian) and foreign (i.e., American) residents in the context of the XXI Winter Olympic Games. Data were collected from national samples using an on-line commercial panel two months prior to and two months after the OG. Hypotheses testing indicated the role of expectations which have direct positive influence on the perceptions of performance. Expectations and perceived performance are found to be directly influencing the evaluations of the OG. The study showed that the attitudes towards the OG as a destination and as an event differ among people with different levels of individual association. The results provide input to how what people take into the mega-event can impact successful mega-event attitude outcomes.

Anahit Armenakyan, Louise A. Heslop, Irene R. R. Lu, John Nadeau, Norm O’Reilly

Of Geeks and Achievers: Exploring Consumer Collective Tourism and the Infinite Game

Interacting with Brand Communities and Customer Evangelists can be profitable. Corporations and brand managers who follow traditional marketing and business paradigms will struggle to effectively communicate and connect with these opportunities. Viewing consumer collectives (Brand Communities, Consumer Tribes, Subcultures of Consumption, etc) through Service-Dominant Logic and religious paradigms can give tourism marketers a feel for how to interact with this group of people who actively seek brand peak and flow experiences.The authors explore James Carses’ metaphor of an infinite game to describe how consumer collectivism operates, using examples from the tourism industry.

Nathalie Collins, Jamie Murphy

GLOBAL WARMING AND CONSUMER BEHAVIOR

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Climate Change Science Versus Climate Sceptics: Is the World Really Flat?

We present a computer-based content and discourse analysis of the arguments and key messages relating to climate change, contrasting the material dispersed via the Internet versus material drawn from refereed academic journals. We find significant differences in message complexity and argument focus between climate change scientists and sceptics, with potential impacts on public attitudes and behaviour.

David R. Low, Lynne Eagle

Past and Future Orientation, Environmental Attitudes and Green Consumer Behaviour

Some environmental degradation can be linked back to excesses in human consumption, which is one reason that marketing is frequently criticised for exacerbating the current environmental situation. Enlightened marketers are increasingly seeking to become agents of positive change, ensuring that value for consumers, the firm, society and the environment occur simultaneously. However, it is still up to consumers to modify their consumption behaviour, which is difficult given that most focus on short-term satisfaction, rather than long-term wellbeing.This paper looks at how consumers’ time orientation and environmental orientation (EO) impact on their green consumer behaviour (GCB). Literature suggests that time orientation is not a single dimension, but rather should be assessed using separate measures of past, present and future orientation. This paper uses Usunier and Valette-Florence’s (2007) two dimensional measure of Past (PO) and Future (FO) orientation. EO has also been assessed using a variety of single and multi-dimensional scales. Within this paper an adapted version of Dunlap’s (2008) New Environment Paradigm (NEP) scale is used to assess individuals’ broad view of how man interacts with the environment.An online survey sample of 2,554 Australian consumers was undertaken. Data was analysed using SEM with Mplus version 6.12 and included bootstrapping to examine the direct and indirect effects of time orientation and EO on GCB. The results identified FO has a significant positive effect on EO and GCB. The effect of FO on GCB is also mediated through EO. PO has an unanticipated significant positive effect on EO and as anticipated has a significant negative effect on GCB. The effect of both PO and FO on GCB is mediated by EO. In the case of PO, its negative effect on GCB was suppressed or overridden by consumers’ EO.These results suggest that while time orientation and environmental orientation are important, consumers’ concern for the environment (i.e. EO) is potentially a greater driver of undertaking green consumer activities. The results show that time orientation does, however, affect behaviour, so it is important to get people to understand the long-term environmental consequences of their behaviour, although this is likely to be less effective with consumers who focus on the past.

Michael Jay Polonsky, Andrea Vocino, Martin Grimmer, Morgan Miles

Sustainability and Perception of Brand Communication

Several occurrences – the nuclear disaster in Fukushima 2011 or the widespread meat scandal in Germany in 2005, for instance – seem to have enhanced the success potentials for sustainability oriented business fields. Companies are increasing their efforts, not only in developing and producing sustainable products and services, but also in putting sustainability at the forefront of their communication strategies and their brand management in order to position themselves as sustainable brands in branch-related consumer markets. We currently detect a high interest in research in early stages of the consumption process, following the general question of how sustainable brand communication is perceived by consumers (see Belz, F.-M. 2001). Prevalent discussions in the practitioners’ environment mostly act on the assumption that younger consumer groups in particular, also affected by the aforementioned environmental occurrences, consider themselves as sustainable-oriented but without showing sustainable-oriented buying behaviour (Bundesministerium fur Umwelt, Naturschutz und Reaktorsicherheit (BMU) 2010). An additional willingness to pay could only be identified in individual cases where the purchase of a sustainable product would lead to a higher direct and personal “egoistic” value for those younger consumers (see Belz and Peattie 2010). In this paper, we assess the preceding stages of the consumption process. We evaluate whether the value-pricing-related assumptions of the “sustainability-driven” buying process could be transferred to the perception of sustainable brand communication as well. By combining an eye tracking analysis with standardized interviews of 93 younger German consumers, we evaluate if consumers who consider themselves as “sustainable people” perceive sustainable brand communication differently from those consumers without a “sustainable attitude”. Based on the findings of an extended contingent value approach (Spash 2006), we further examine if sustainable brand communication relating to products and branches with a higher personal “egoistic” value of the sustainable effect leads to increased perception of those communication activities by younger consumers compared with products with lower personal value of the sustainable effect.

Yvonne Zajontz, Vanessa Kollmann, Marc Kuhn

ONLINE SHOPPING

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The Role of Synergy and Complementarity in a Multichannel E-Commerce System

When online retailers operate more than one electronic distribution channel (e-channel), they have to manage the individual online distribution channels (such as an online Web site and a mobile shopping app), but they also have to manage the degree of synergies and complementarity across these channels. Though many retailers already provide diverse online shopping channels, there is no research that investigated the role of synergies and complementarity across these e-channels as well as their effects on consumers’ intention to use a retailer’s multichannel e-commerce system.Most studies on consumer behavior in e-commerce are limited to customers visiting and purchasing on a retailer’s Web site (e.g. Liu and Forsythe 2011; Ha and Stoel 2009) or consumers’ intentions to shop online in general (e.g. Liu, Forsythe, and Black 2011). However, only few authors indicate that e-commerce includes a wider range of online shopping possibilities. The perspective of multiple e-commerce channels is supported by Zhang et al. (2010) who anticipate that new digital channel formats will develop and alter the retail landscape. We agree and indicate that this development might induce that online pure-players, such as Amazon.com, evolve into multichannel e-commerce retailers. While the role of synergies and complementarity in traditional multichannel environments (e.g. retail store and catalog) has received wide attention (e.g. Kollmann, Kuckertz, and Kayser 2012; Avery et al. 2007; Montoya-Weiss, Voss, and Grewal 2003), the findings and implications are only to some extent transferable to an environment of multiple e-channels.This study is multidisciplinary and contributes to research in multichannel retailing and e-commerce by investigating the role of synergy and complementarity across electronic distribution channels and their effects on consumer behavior. Based on diffusion, information integration and resource-based theory we develop a conceptual framework for a multichannel e-commerce environment and empirically test it with a data set of N=904 consumers.Our findings underline the relevance of cross-channel synergies and complementarity in multichannel e-commerce systems. The results of our empirical study suggest that synergies and complementarity are relevant antecedents of consumer behavior, particularly the intention to use a retailer’s multichannel e-commerce system. When customers use diverse Internet-enabled devices for online shopping the interaction of these different e-channels is of relevance to build a well integrated multichannel e-commerce system. Moreover, our findings emphasize the role of complementarity across e-channels, in terms of heterogeneity across individual e-channels. With other words, an additional e-channel only creates enhanced value if it offers extra benefit. Retailers can use this knowledge to create a “seamless” e-channel environment and underline the individual benefits of single e-channels.

Gerhard Wagner, Hanna Schramm-Klein, Sascha Steinmann

A Comparison of Online and Offline Gender and Goal Directed Shopping Online

The aim of this paper is to model the effect of the consumers’ perceptions of their offline and online gendered behaviour on online utilitarian shopping motivation and purchase intentions. We propose that when consumers shop online their behaviour is mediated by two gendered behaviors; offline and online. Therefore, gender is defined by the environments effect on behaviour To test this proposition, five hundred and fifteen usable responses were collected in face-to-face interviews. The conceptual model was tested with confirmatory factors analysis (CFA) and structural equation modeling (SEM) across 5 product categories. Our findings show that the effect of a consumer’s perception of their gendered behaviour offline vs. online on, online utilitarian shopping motivation and purchase intentions is significantly different. We conclude that online gender for females has a strong mediating effect across all product categories on online utilitarian shopping motivation and purchase intentions. For males it is their offline gender that has a strong mediating effect. Research implications are discussed.

Robert Davis, Bodo Lang, Josefino San Diego

How Mindset Affects Online Planned and Unplanned Purchasing – An Extended Abstract

As a shopping platform, the Internet was initially predominantly viewed as a uniquely convenience based shopping channel that allowed shoppers to exert self control and regulate shopping decisions (Girard et al. 2002; Li et al. 1999). But it is becoming increasingly clear that online purchasing also extends to being experiential and provides for a mixture of utilitarian and experiential shopping motives, allowing consumers to engage into planned as well as unplanned shopping activities (Partobeeah et al. 2009). The present paper primarily draws from the Rubicon model of action phases (Gollwitzer 1990) to assess an important marketing implication for online shopping – that the extent to which consumers engage into planned versus unplanned behaviour depends on the mindset that consumers are in at the time they access a website.

Aneeshta Gunness, Harmen Oppewal

Moving Virtual Retail into Reality: Examining Metaverse and Augmented Reality in the Online Shopping Experience

Online retailing has proven to be advantageous to retailers in terms of revenue building. Consumers are spending time and money on retailer e-commerce sites, and now, m-commerce sites. In fact, Cyber Monday, the Monday after Thanksgiving, is exceeding revenue goals previously sought on Black Friday (Internet Retailer 2011). However, the online shopping experience has not kept pace with the offline experience. Brick and mortar allows for more experiential shopping that creates engagement, brand experience, as well as excitement. Catalog and television shopping affords the comfort of shopping at home. Now, many shoppers are turning to their tablet computers for online shopping. However, the shopping experience on tablets must compete with other online activities, including games and other interesting applications. Retailers should respond to needs of the consumer by developing a more robust online shopping experience. This can also enhance the experiences of shoppers in both electronic commerce and mobile commerce.

Esther Swilley

CONSUMER BEHAVIOR: UNUSUAL CONSUMPTION

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Meaning of Money among Hindus in India: Some Preliminary Findings.

Understanding peoples’ attitudes towards money is an important area of research, as the complex meanings attached to money motivate a variety of consumer behaviors (Rose and Orr, 2007). Exploring this phenomenon in an emerging market, like India, is timely and meaningful to both academics and practitioners. Culturally unique factors like the belief in ’Karma’ and long term orientation has been known to influence consumer behaviors in India (Kopalle, Lehmann and Farley, 2010). However, there is no research which studies the effects of these cultural factors on attitude toward money. This becomes even more important as economic development heralds consumerism in emerging markets such as India. In this research, we study the meanings of money among Hindus through 24 qualitative interviews across three cities in India. Our findings add to the cross-cultural literature, and will be of interest to international marketers who are operating or evaluating doing business in emerging markets such as India, and targeting global consumers.

Altaf Merchant, Gregory M. Rose, Mohit Gour

Embarrassment Effects on Purchase Intent for a Product with Socially Shared Superstitious Meanings: a Structured Abstract

Superstitious beliefs are socially shared or idiosyncratic beliefs that actions or objects can be subjectively invoked to control luck while no such objective influence exists (Kramer & Block, 2011). Superstitious beliefs are gaining an increasing interest in the marketing literature (e.g. Kramer & Block, 2008; Kramer & Block, 2011). Extant literature has found that consumers are more likely to purchase a product with a positive superstitious association than a product with neutral superstitious associations (Block & Kramer, 2009). Literature has considered factors that influence the impact of superstitious beliefs on consumer decision making, such as decision type and time pressure (Kramer & Block, 2011), and physical cleansing (Xu, Zwick, & Schwarz, 2012). Our research extends this stream of literature by investigating how embarrassment may result when consumers purchase a product with socially shared superstitious meanings and how embarrassment, in turn influences product purchase decision.

Di Wang, Harmen Oppewal, Dominic Thomas

Coping with Negative Consumption Experiences: How Attribution Influences Disappointment, Regret, Word of Mouth and Complaining Behaviours

Consumers generally feel bad if products or services they purchased do not deliver what was expected. For example, if a holiday destination has not met expectations consumers will be disappointed and may feel regret about their choice of holiday destination. Their level of disappointment and regret may in turn influence their responsiveness to future product and service offers and to future product and service failures. Whereas there is a large literature on post-consumption processes, relatively little is yet known about how these disappointment and regret influence behaviour. The present research experimentally investigates how disappointment and regret result from attributional processes, in particular whether the cause of the failure is deemed internal or external, and how these emotions relate to coping strategies, in particular vindictive negative word of mouth and vindictive complaining. Our findings show that when consumers attribute the failure externally, they experience higher disappointment and outcome regret, however, when they attribute the failure internally, they experience lower disappointment and higher process regret. The higher disappointment and outcome regret also foster a tendency to voice dissatisfaction, either through spreading negative word of mouth or lodging direct complaints. Furthermore, we also demonstrate that the feeling of disappointment and regret sequentially experienced by consumers act as a mechanism to unveil their coping strategies.

Muhammad Ismail Hossain, Harmen Oppewal, Dewi Tojib

Funeral Consumption as an Ambivalent Experience

Consumption experience (Holbrook and Hirschman 1982) is widely used in the marketing literature although mostly within the broad context of service (Lusch and Vargo, 2006; Pine and Gilmore, 1999) or hedonic experience (Arnould and Price, 1993). Holbrook and Hirschman (1982) provide an alternative to consumers as logical thinkers, rather interpreting consumption as an activity through which an individual experiences multi-sensory fantasies and fun. Such experiential, as opposed to functional consumption, is reflected in academic and practitioner interest in understanding emotional responses resulting from consumer interaction with various stimuli (other consumers, marketer, product, service) and in determining how to ensure memorable (Pine and Gilmore, 1999) or extraordinary (LaSalle and Britton 2003) experiences. Carù and Cova (2003), however, suggest that thinking around consumption experience should go beyond what they refer to as an ideological view of experience as extraordinary. This leads us also to consider the nature of lived experience as including ambivalence (Otnes, 1996). Every day and extraordinary experiences result in many responses and the association of experience and ambivalence is as yet underdeveloped theoretically. In particular the experience described in this paper engages with the idea of psychological and social ambivalence. In so doing, overload and role conflict are explored as antecedents to ambivalence The paper finds that the experience of funeral arrangement and consumption emphasises the problem for individuals suffering differing demands in terms of roles enacted and how this may produce ambivalence.The paper focuses on the United Kingdom, examining the experience of the bereaved in planning and participating in the funeral of a close member of their social group. In-depth semi-structured interviews lasting 45-60 minutes represented the principal means of data collection, for which an inductive exploratory approach was used (Miles and Huberman, 1994) to identify key themes related to the funeral consumption experience. A total of 21 participants from varied religious and secular backgrounds in the West Midlands responded to invitations to participate that were placed with public institutions. Given the emotional consequence of funerals, the researchers excluded respondents whose experience was within a 12 month period of when the interviews were conducted. In our analysis of the participants’ funeral experiences following Carù and Cova, we recognise that we only have access to the experience through our interpretation of what participants’ express. Our thematic analysis is built upon the desire to produce a richer understanding of the nature of the consumer experience albeit within a specific and not widely researched area of consumption.The varied nature of the experience of the participants outlined in the study illustrates the complexity of experience within one consumption field. We accept that funeral consumption is a relatively unusual subject in consumer research, but it is a common human experience worthy of examination and this study provides an exemplar of the complexity and ambivalence inherent therein.

Isabelle Szmigin, Louise Canning

INTERNATIONAL AND CROSSJCULTURAL MARKETING: INTERNATIONAL CONSUMER BEHAVIOR

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Does Consumer Innovativeness Influence Western and Eastern Customers’ Really New Product Adoption Behavior Differently?

This research draws on the call by empirical studies for further investigation on consumer innovativeness, its measurement, and its link to really new product adoption. Most studies of consumer innovativeness have been done in the U.S. and Europe. The Asia – Pacific regions has begun to attract attention. Specifically, this research examines the relationship between consumer innate innovativeness, domain specific innovativeness, vicarious innovativeness, the desire for unique consumer products and the adoption of “really new” consumer electronic products in Australia, China and Taiwan. The result finds that the adoption of such products is primarily influenced by domain specific innovativeness across the three countries. Vicarious Innovativeness is suggested to have an influence on Australian’s new product adoption behavior. In contrast, the desire for unique consumer products is a better predictor of new product adoption of customers with Chinese culture background than vicarious innovativeness.

Chih-Wei Chao, Mike Reid

Consumers’ Perception of Corporate Sustainable Activities: An Analysis of the German and the Spanish Consumer

This study focuses on the consumer’s perceived corporate sustainable activities in a cross-national comparison, contrasting German (n = 486) and Spanish (n = 503) consumers. We find German respondents to perceive a higher corporate sustainable behavior and better provided sustainable communication, ascertaining the highest perception among males between 18 and 25 years in Germany. Among the Spanish respondents, males were identified to exhibit the highest perception, whereas age proved to be not an influencing factor. Demonstrating different perception levels between the analyzed countries, our results indicate a better corporate sustainability level in Germany. Findings aim to help especially multinational companies to improve their information system, segment their customer base and define their marketing strategy.

Johannes Stolz, Horacio Molina Sánchez, Jesús Ramírez Sobrino

LOOKING FORWARD AND BACK AT SURVEY RESEARCH RESPONSE ISSUES IN MARKETING RESEARCH

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Why Consumers Seek ‘Coolness’? Evidence from the Arab World

The charm of coolness is seemingly enhanced by the mysteriousness of what cool actually means. Figuring out how to be “cool” is arguably an important phenomenon amongst many modern cultures today. Consumers identify their coolness by seeking products and brands that provide them with cool status (Belk et al, 2010). While researchers have identified this cultural shift having a significant impact on how consumers are buying products, an in-depth understanding of its origin and meaning of this vernacular usage for the relevant consumer research is limited. As such, the purpose of this research is to understand consumers’ ’cool seeking’ behavior by exploring its possible determinants using a stepwise regression analysis. Drawing evidence from the Arab world our findings indicate that although the primary need for uniqueness drives cool identity, status concern is the most dominant predictor of cool-brand consciousness. We also demonstrate that in the Arab world cool is influenced by West, but not related to income, religion or gender.The urge for uniqueness from the mainstream is the essence of coolness (CoolBrands, 2011). Literature suggests there are various manifestations of how individuals portray their ’coolness’ behaviors. For example a person who exhibits novelty-oriented construction of himself, a rebellious trickster demeanor, emotionally self-protecting stance or one that has a ’cool’ style of walking, gesturing and grooming can be termed as a cool person (Belk, 2006). Research indicates that such coolness is constantly sought by modern consumers to depict their character and lifestyle to others in their social network (Rahman and Cherrier, 2010). Traditionally, the element of cool is literally linked to teenagers as an ultimate approval of their peers (Danesi, 1994; O’Donnell and Wardlow, 2000) and to people in the fashion industry (Nancarrow et al., 2002); but contemporary consumers are not seen adhering to these age or gender stereotypes when seeking coolness (Neumeister, 2006).Despite previous studies in understanding ’coolness’ (e.g. Belk, 2006) there is little quantitative research that examines ’cool seeking’ phenomenon in its vernacular usage. This understanding is important because it can have specific effects on consumers purchase patterns. There is a general agreement that ’coolness’ is conceptualized as alternative value system but an evidence based systematic linking between antecedents of coolness, demographic variables and cool seeking behavior has not been undertaken in the marketing literature. Thus, this study aims at providing a coolness-minded perspective of consumers to offer insights into the predictors of cool seeking tendency.The present research provides a distinct psychological, social and behavioral patterns experienced by the Arab consumers when pursuing ’coolness’ as part of their personality. The study highlights consumers’ ’seeking coolness’ is actually an extension of their ’cool identity’ and their consequent preferences for cool products or ’cool brand consciousness’.

Kaleel Rahman, Gaurangi Laud

Special Session Title: Looking Forward and Back at Survey Research Response Issues in Marketing Research

This session presents issues related to the changing technologies and trends associated with data collection in marketing research. Particular emphasis is given to research practices that impact the generalizability of results. The session raises the question as to whether or not response representativeness remains an important concern for researchers. Three papers are presented to stimulate audience discussion. David J. Ortinau focuses specifically on communication technologies and examines the potential implications for sample representativeness that come from different sample sources. Lauren Brewer’s work focuses more specifically on the nature of student responses and the extent to which student responses may represent realistically the responses from other consumers and more generally reviews the role played by student volunteers in consumer research. Yasemin Ocal Atinc presents research focusing specifically on issues related to response rates. What are trends in response rates across the key marketing journals and what steps are taken by authors to make sure that the data they present adequately represent some relevant population? The results of these papers provide motivation for researchers to portent to basic issues of their research related to response and nonresponse error. Are we producing studies that display more rigor on the analytical side than they do in the basic research design and if so, what impact would this have on the meaningfulness of basic marketing research?

Barry J. Babin

A Retrospective on the Use of Survey Methodologies in Marketing Research

From a historical perspective, the methodologies used to collect and analyze various types of data structures in marketing research have undergone a number of popular trend changes from personal interviews and simple frequency, cross-tabulation, and correlation analysis procedures to complex experimental designs and advanced statistical analysis (ANOVA, MANOVA, SEM, and PLS).Regarding survey methodologies, the advances in telecommunication technologies and methods (i.e., Internet and social media) of connecting with prospective respondents have significantly changed over the past two decades. For example, survey research during the 1970s and 1980s relied heavily on telephone and snail-mail, self-administered, pencil and paper survey methods as the two main methods of obtaining responses from a broad base of respondents. These methods required emphasis on scale measure designs, questionnaire layouts, as well as understanding defined target population characteristics in order to assure solid representation of a probability-based sample of respondents. Researchers’ understanding of the different scale levels (i.e., nominal, ordinal, interval, ratio), scaling properties (i.e., assignment, order, distance, and origin), and the three basic elements that made up any scale measurement (i.e., the setup/question, desired attributes, and set of scale point descriptors) were critical in the designing of appropriate construct measures.The 1990s and early 2000s ushered in the fast growing popularity of telecommunication technologies associated with the Internet and social media communities, influencing researchers’ desires for faster, cheaper, electronic/online/email and web survey alternatives of collecting marketing research data. Well defined target populations and probability-based sampling designs were replaced with non-probability-based, convenience samples of respondents who either opt-in for participation or held membership in an identified social media community. Construct development and scale measurement procedures advocated in the 1980s, were rapidly replaced with “adopting” and/or “adapting” constructs and scales previously reported in the literature as means to save time, effort, and money.The mobile telecommunication technologies of the late 2000s and 2010s (i.e., smart phones and Tablets) bring more advances and changes to survey research methods. In contrast, these new electronic advances create new data quality and data representativeness questions worthy of discussion.This particular presentation adds structure and discussion points to the session’s overall objective of the tools and methodologies used by researchers in addressing concerns about the adequacy of sampled respondents in construct/scale measurement development, data quality, and representativeness to defined target populations. measurement development, data quality, and representativeness to defined target populations.

David J. Ortinau

Student Subjects: Human Lab Rats or Genuine Consumers?

For generations college students have participated in university studies for meager incentives such as a few points of extra credit, nominal cash amounts, or some other slight token of the researcher’s appreciation. In marketing research, students evaluate often products for which they are unfamiliar, project themselves into pre-specified situations, and are asked to make pretend decisions regarding purchasing behaviors for things they have never and may never consider buying in their lifetime. Despite the criticism of college students as sample subjects, they may be useful “human lab rats” playing an important role in the development of marketing and/or consumer research.Empirical studies in the Journal of Consumer Research (JCR) from 2000, 2005, and 2010 were examined for instances of student subjects evaluating a product or product category. JCR was selected for analysis due to the abundance of empirical studies and student samples. The criteria for selection required that student-subjects evaluated at least one product independently, or as part of a larger consumption scenario and used at least one sample of students, either undergraduate or graduate level. A total of eighty one articles out of a possible one hundred seventy six fit these criteria and were selected for inclusion. In the session, patterns of usage are discussed.Further, an exploratory empirical investigation was conducted using current college students (both undergraduate and graduate levels) and non-college students. The purpose of the study was to investigate whether different levels of knowledge existed between students and non-students for selected products or product categories that were used in published JCR journal articles from 2000 and 2010. Results from this exploratory research also are offered to generate discussion.The results suggest that in general, differences in products and product category knowledge exist between student and non-student populations. As a result, the generalizability of results or the ability of the students to be ubiquitous representatives of the relevant consumer population may be suspect. The current study was simple in nature, looking only to see whether significant differences existed between groups at the level of overall product knowledge on a subjective basis. Further analysis will benefit from a shorter version of the scale used with additional analysis of objective measures.

Lauren M. Brewer

Response Rate and Response Bias in Marketing Research

In this study, we investigate the perspectives of marketing researchers views about the two important concepts of survey research, response rate and response bias. In an attempt to answer the research questions stated, we have collected both primary and secondary data. The primary data was collected from the Academy of Marketing Science active members. Eight versions of an excerpt were taken from an actual article that was accepted for publication recently.The first treatment was regarding the consideration of population. The subjects were manipulated with two versions of the excerpt of which one was with a Canadian sample and the second was with a so called North American sample. The second treatment was about the manipulation of the initial number of surveys sent out which as a result would change the response rate percentage. The two different versions included 500 vs. 5000 initial surveys sent out varying the response rate from 5.1% to 50.2%. The third treatment included the manipulation of Armstrong and Overton (1977) citation. First version contained a sentence that stated that the early and the late respondents were compared and no significant differences were found as evidence of no response bias including the citation of Armstrong and Overton (1977). The second version of the excerpt included a table with the expected demographics regarding the population of interest. In addition to these, the subjects were also assigned to two different conditions where they were asked to evaluate the excerpt as an author or as a reviewer. In the invitation email respondents were asked to toss a coin or to click on a web link that would toss the coin for them and select the appropriate link that corresponds with their choice. In order to assess the popular techniques of enhancing response rate, we have divided the sample into several groups as the pre-notification, the reminder and the pre-notification and reminder groups and a control group that received neither the reminder nor the pre-notification treatment. The results revealed that, according to our sample none of the techniques mentioned above, improve the response rate.The secondary data were collected from major outlets of the marketing science (Journal of Marketing-JM, Journal of Marketing Research-JMR, and Journal of the Academy of Marketing Science-JAMS) during the periods of 2005-2010. The final sample consisted of 68 JM, 23 JMR and 84 JAMS articles. In addition to these, we also randomly selected 31 rejected articles from the Journal of Business Research (JBR) archives.The results of the study revealed that, survey researchers do not clearly grasp the concepts of response rate and response bias. In addition, the results demonstrated that the data quality should be measured by the sample’s representativeness of the population and the researcher’s capability of decreasing the response and the non-response biases. Further, the techniques used to enhance response rate such as reminder and pre-notification letters as well as incentives are not as effective and are likely to introduce additional response bias to a study. The results also showed that the optimal data collection method researchers should consider adopting is the combination method.

Yasemin Ocal, Barry J. Babin

THE CHANGING NATURE OF MARKET RESEARCH

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A New Era: How New Media Might Shape New Data and Research Methods

The behaviour shift brought about by the adoption of internet technologies by both consumers and organisations necessitates a new approach to researching. Whilst the commercial market research industry has operationalised new media in research, academic researchers have lagged behind their commercial colleagues in doing so. This paper provides a rationale for incorporating new media as both a tool and a site for research in marketing, outlines how new media might shape new data, through examples, and identifies the beneficiaries of doing so.

Sarah Quinton

How the Innovation Diffusion Models from the Past can Help us to Explain Marketing in the New Media Era

Even if the rhetoric of the Internet and the new digital media seems to have radically changed our technological environment, historical recurrences are relevant tools in order to analyze the future marketing. We propose a new multi-stage model able to bridge two different approaches, namely the adoption models à la Bass and the recent line of research concerning agent-based innovation diffusion models. Our technology allows us to find a closed form equation for awareness and adoption, taking into account heterogeneous population.

Cinzia Colapinto, Elena Sartori, Marco Tolotti

SPONSORSHIP AND BRANDING

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Sponsorship Research: Drawing on the Past to Shape the Future of Sponsorship

This study examines how scholarly research on sponsorship has evolved between 1980 and July 2012. While various scholars (e.g., Cornwell and Maignan 1998; Pope 1998; Walliser 2003) have documented the progress of sponsorship research previously, this review departs from existing perspectives and redirects the conversation in the sponsorship literature by focusing attention on the semantic relationships among sponsorship concepts and the ways in which they have changed over time. Using Leximancer text-analysis software, we explore the emergence and growth of ideas and topics in sponsorship research by undertaking a systematic analysis of ideological trends. The research objectives of this study are: (1) to identify the scholarly trends through an empirical assessment of research across the history of sponsorship; and (2) based on the trends identified, to shape the future of sponsorship research.We collected titles and abstracts of articles in sponsorship presented in scholarly journals to July 2012. Guided by previous authors, we focused specifically on sourcing abstracts since abstracts encapsulate a concise summary of an article’s core issues and are therefore lexically dense (Cretchley et al. 2010). We sourced abstracts for our analyses from multiple databases (e.g., ISI Web of Science, Scopus, EconPapers (RePEc), PsycINFO and Google Scholar) and from over 150 marketing journals. We included abstracts from journals in languages other than English where English translations of the abstract were available electronically (Walliser 2003). In total, we collected 804 articles published across 144 scholarly journals. Next, we created subsets of the data in 10-year periods (1980-1989, 1990-1999, and 2000-2009), and one for 2010-2012. Using Leximancer software (Version 4.0), we produced a set of concept maps and reports showing semantic structures across the history of sponsorship for each of the four periods (see Smith and Humphreys 2006).The concept map of the entire corpus of abstracts revealed a core set of concepts that are recurrent and quite evenly distributed throughout the history of sponsorship. Sponsorship, marketing, objectives, value, strategy, companies, important, and key are concepts central to sponsorship’s intellectual identity. We identified two primal opposing but complementary forces around sponsorship measurement (e.g., consumers, awareness, brand, effects, image, impact, media, advertising) and sponsorship management (e.g., industry, benefits, rights, business, organizations, management, development, financial). Based on examination of the prominent concepts within each period, we defined the 1980s as the Intellectual Era (television, important, business, benefits, and advertising); the 1990s as the Ambushing Era (objectives, ambush, support, major, and corporate); the 2000s as the Consumer Era (products, financial, media, role, and market); and as the 2010s as the Relationships Era (professional, team, relationship, social and value).In the decade 2010-2019, we expect to observe the development and empirical exploration of more managerially focused models of sponsorship that center on better understanding the development of sponsorship strategy and the extraction of value from sponsorship investment. Going forward, the integration of social media as a sponsorship-marketing tool could also define a new era of research. In brief, adding a new data set to earlier reflections on sponsorship deepens our understanding of the role that key concepts and their inter-relationships have played in shaping sponsorship scholarship to date. We strongly believe the current study lends a high level of credibility to our insights about sponsorship’s past that can richly inform discussions about the future directions of sponsorship research.

Margaret A. Johnston, George S. Spais

Construal Level Effects in Sponsorship Announcements

Corporate financial contributions fund many events and organizations, such as art exhibits, concerts, and sports teams. Often corporations make such contributions in exchange for the right to affiliate with the sponsored event or organization. Sponsorship is thus regarded as a marketing communication instrument. Besides communicating via sponsorship, sponsors and sponsored entities also communicate about a sponsorship. Such “sponsorship-linked marketing” is especially common when announcing the initiation of a sponsorship. In this context, one challenge is how best to communicate the relationship created via corporate sponsorships. However, research on the influence of sponsorship announcements has uncovered mixed results and suffers from two shortcomings. First, previous studies have only considered the announcement of sponsorships at a generic level, while ignoring the potential for variation in how a sponsorship is publicly announced (i.e., the composition of announcements). Second, scholars have emphasized investors’ reaction to announcements while overlooking any potential effects on consumers, who are a more likely target for sponsorship communication. In the present study, we therefore investigate how different types of sponsorship announcements influence consumers’ perceptions of the sponsoring firm. Specifically, based on Construal Level Theory (CLT), we conducted the first of a series of experiments to investigate how the concreteness of the information contained in an announcement influences consumers’ responses to the sponsorship.Construal level theory suggests that individuals evaluate information with different degrees of abstraction. High-level construals are simple mental representations and only extract the most important available information from a situation. These construals consist of general features of the event, and thus deemphasize unique and detailed features. Meanwhile, low-level construals tend to be more concrete and contextualized features of the event. While low-level construals are richer and more detailed, they are also less structured and less parsimonious than high-level construals. Moreover, CLT suggests that individuals differ in their mental construction of identical information, known as Personal Level of Construal (PLC).To meet our purpose of understanding how sponsorship announcements influence consumers, we apply CLT to the information content of announcements. We assess the impact of individuals’ construal predisposition to abstract (high-level) or concrete (low-level) mental construction and derive three hypotheses about the effects of different levels of information construal in communication about sponsorships. Specifically, we anticipate that overall, an announcement containing more concrete details about a sponsorship (i.e., low levels of construal) will result in more positive outcomes for both the sponsoring brand (H1) and sponsored event (H2) when compared to a more abstract announcement. Moreover, we predict an interaction effect between the construal level of the sponsorship announcement and respondents’ PLC (H3). This proposition is based on the idea that whether or not information presented about a sponsorship matches the individual’s PLC will influence the extent of information processing, with mismatches sparking more extensive processing. We thus assume that consumers with a high (low) PLC will evaluate the sponsoring brand and the sponsored event more (less) positive when faced with a concrete sponsorship announcement than when faced with an abstract sponsorship announcement.To test the proposed hypotheses we conducted an experiment that manipulated the construal level of a sponsorship announcement (abstract/concrete) between subjects. Results indicate that an announcement of a lower construal level (i.e., more concrete) leads to more positive evaluations of both the sponsoring brand and the sponsored event, thereby supporting hypotheses H1 and H2. Regarding the hypothesized interaction effect, for abstract thinkers, concrete announcements did indeed lead to a more positive attitude toward the sponsor, a higher trust in the sponsor, a higher willingness to recommend the sponsor, and a higher purchase intention of the sponsor, as well as a more positive attitude toward the sponsored event and a higher trust in the sponsored event, thereby supporting H3. Concrete thinkers’ evaluation of the sponsoring brand and the sponsored event, however, did not show any significant differences based on the construal level of the announcement. This finding requires further consideration of concrete thinkers’ processing of information at different levels of abstraction.The results of this first experiment demonstrate the relevance of considering CLT in sponsorship-linked communications. Presenting content at a low level construal is preferable to more abstract information. The findings in this initial study also suggest that individuals interpreting the concrete announcements with a higher level construal react more favorably toward the sponsoring brand and, to some extent, the sponsored event as well. As a result, manipulating an individual’s construal level (through temporal or social distance) could be useful for marketers engaged in sponsorship communications.

Tobias Schaefers, Joe Cobbs, Mark D. Groza

Celebrity Portfolio Effects on Consumer Brand Evaluations

While much of the research on celebrity endorsement has focused on the retrospective evaluation of the brand in the context of a single celebrity endorsement, relatively less attention has been given to the effects of multiple celebrity endorsement. Previous research conceptualizes multiple celebrity endorsement simply as multiples of single celebrity endorsements, which has only considered the dyadic relationships between the celebrity endorser and the brand. The present research provides an improved conceptualization from a brand portfolio perspective and introduces the notion of celebrity portfolios. The present research explicitly considers the holistic evaluation of the celebrity portfolio instead of assuming independent evaluations. More importantly, the present research examines the interaction effects among the celebrities in the portfolio, on consumer brand evaluations which have not been considered in the current literature. Specifically, celebrity portfolio congruence is conceptualized as a three-dimensional concept by introducing two new dimensions of congruence: portfolio-brand congruence and celebrity-celebrity congruence. The results provided convergent evidence that the consumers evaluate celebrity portfolios holistically and support the interaction effects between the celebrities. The findings suggest that the impact of the number of celebrities used in a portfolio is more complex than previously assumed, in which, more is not necessarily better.

Max Yu, Ravi Pappu

CUSTOMER LOYALTY AND CUSTOMER VALUE

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Drivers of Perceptions of Fairness in Financial Services in Australia

Fair treatment of consumers by providers in financial services markets has been highlighted as a key issue in promoting greater consumer engagement with financial services (FSA 2008a; FSA 2008b). In developed market economies, consumers’ interactions with financial services markets are often characterised as problematic (Llewellyn, 1999; HM Treasury UK, 2002), with resultant outcomes that may be detrimental to individual consumers and society as a whole. Such outcomes include the under-consumption of some types of financial services, such as pensions and long-term savings (and the over-consumption of others, such as personal debt) can have profound implications for the welfare of individuals and society as a whole (Bridges and Disney, 2004: Khoman and Weale 2006; Stone and Maury, 2006; Devlin, 2010). Thus, level and nature of consumer engagement with financial services is very much a social marketing concern. Markets for retail financial services have been characterized as high in information asymmetries (Llewellyn, 1999), with consumers generally having limited understanding of financial services. As a result, consumers are generally characterized as vulnerable and liable to make decisions which are detrimental to their interests, or alternatively avoid making decisions at all and dis-engage from the marketplace (Noble and Knights 2003). In addition, as consumers have limited understanding, then it is important that they perceive that they are being treated fairly and have a high degree of trust in who they are dealing with, in order to encourage engagement. A comprehensive review of the retail savings and investment sector in one developed country (HM Treasury UK, 2002) highlighted a high degree of product complexity and opacity in financial services markets, which exacerbates the problems faced by consumers. In the light of limited understanding and the opacity apparent in financial services markets, it is hardly surprising that one main implication is limited engagement on the part of many.

James Devlin, Steve Worthington

What Drives Customer Loyalty? Nonlinear Effects of Customer Delight and Satisfaction on Loyalty and the Moderating Role of Service Experience

We substantiate—theoretically and empirically—the important parallel roles of delight and satisfaction in influencing loyalty in service settings. Our results of a PLS-SEM study support a negative quadratic (i.e., concave) relationship of satisfaction with loyalty and a negative cubic relationship of delight. When allocating (incremental) resources to create customer loyalty, managers should recognize that delight reaches its full impact only after an initial threshold. Similar to satisfaction, this effect reaches a saturation point after an upper threshold at very high levels of delight. Moreover, our results suggest that both delight and satisfaction effects weaken when experience increases.

Dennis C. Ahrholdt, Siegfried P. Gudergan, Christian M. Ringle

Coaligning Service Quality Attributes and its Implication to Customer Value

This study applies coalignment in the service context. The paper investigates the coalignment of aspects of service quality to provide customer value. It is argued that service quality must be seen as a gestalt i.e. performing well on an attribute of service quality is good, but coaligning several service attributes is even better. A self completed questionnaire was used to collect data from hotel guests of selected hotels in Indonesia. The effective response rate was 70% giving a sample of 385. The results indicate that the coalignment of attributes of service quality has significant implications for customer value and that the coalignment model is significantly superior to a direct effects model. This study provides empirical support for the configuration theory and specifically contributes understanding of the service quality-customer value linkage. This study contributes to addressing this research gap in the literature by applying configuration theory to service quality. This study suggests that managers must look at service quality as a gestalt because various quality aspects do not substitute or compensate for each other although they are mutually reinforcing.

Hanny Nasution

Gambler Loyalty – A Qualitative and Quantitative Investigation

Since delivering high quality service tends to improve the retention of valued customers, operators should have an understanding of how such customers react to the provision of such experiences. The current investigation explored the relationship between service quality and customer loyalty, with the latter operationalized on the basis of attitudinal and behavioural dimensions. The researchers used a combination of quantitative and qualitative methods to explore this relationship amongst gamblers whose visits to the survey casino are characterised by low, medium or high frequency. The segments that were chosen for analysis purposes were consistent with a commonly used approach to segmentation within the survey casino. The results of the quantitative study indicate that service quality explains significant variance in customer loyalty. In particular, Service environment and service delivery make substantial contributions to both attitudinal and behavioural loyalty. This is consistent with the interview findings, except that the interviews provided deeper insights into how service quality is perceived amongst customers from different groups. Such perceptions influence their intentions to return. However, when international and domestic customers are analysed separately, service quality has minimal influence on the behavioural loyalty of the latter group.The findings of this study have the following implications: although service quality is commonly regarded as an important determinant of customer loyalty, it does not constitute the totality of a customer’s judgement about an entity’s overall excellence or superiority. The various service encounters experienced by customers result in differing perceptions and attitudes. An overall assessment of service quality comprises a combination of perceptions arising from each service encounter between the customer and the service provider. Since the various dimensions of service quality have differential impacts on customer loyalty, and casino managers are concerned with cost effectiveness and resource utilisation, they should focus on the aspects that most concern the loyalty and retention of particular groups. This is the first study to investigate the relationship between service quality and two-dimensional loyalty in the casino context by using the actual annual visitation to measure behavioural loyalty and by using a newly developed scale to measure casino service quality.

Catherine Prentice

PRODUCT STRATEGY

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It is not about the Product Having Enhanced or Unique Product Attributes

There is an ongoing discussion across several research streams as to whether consumers prefer new products with enhanced or unique attributes. The objective of this paper is to help resolve the conflicting views through examining the effect of three factors on consumer preferences for line extensions. These factors are 1) whether information about new product attributes need to be similar or different compared to existing knowledge 2) examining whether the number of new attributes influences preferences and 3) whether consumer preferences are instead influenced by the different types of enhanced and unique attributes. The summation of the findings not only provides possible explanations for why there are the conflicting views, it also presents an alternate perspective to this discussion. This is that consumers do not have a higher preference for products with either type of attribute. Instead, consumer preferences are determined through the relationship between their perception of how different the product is to their existing knowledge, how confident they are in the product delivering the benefits promised, and their preference for specific types of enhanced and unique attributes.

Dean C. H. Wilkie, Lester W. Johnson

Brand Innovativeness Effects on Perceived Quality, Satisfaction and Loyalty

Research on the interface of innovation and branding is limited. For example, managers receive little guidance regarding how consumers’ perceptions of a brand’s innovativeness affect firm performance metrics such as consumer brand loyalty. Moreover, research examining linkages between innovativeness and customer satisfaction is considered critical. Hence, this study provides a conceptual framework for these relationships using associative network theory and brand signaling theory. Structural equation modeling is employed to test the conceptual framework using data collected from a consumer sample (N = 355). Results contribute to branding and innovation theories by uncovering the indirect effect of brand innovativeness on customer satisfaction via perceived quality. The study advances innovation research by uncovering the mediating role of perceived quality in the relationship between brand innovativeness and brand loyalty. Unlike the majority of studies which examine innovativeness from a managerial perspective, we conceptualize innovativeness from the consumer’s perspective, and at brand level. The results can help new product managers better understand complex routes through which consumer perceptions of innovativeness affect perceived quality and customer satisfaction and thereby brand loyalty.

Ravi Pappu, Pascale Quester

Engaging Internal Stakeholders: Revitalizing Community Organizations Through Rebranding

Community organizations are increasingly adopting corporate rebranding to enhance brand equity. However, existing branding and rebranding studies indicate community organizations often fail to reach their full potential because of (1) a fuzzy brand vision that does not fully utilize their very powerful values, and (2) an incomplete buy-in to the brand from internal stakeholders. The paper develops a conceptual framework of corporate rebranding for community organizations. The framework depicts organizational commitment as the pivotal construct. Internal branding activities associated with rebranding positively influence organizational commitment, directly and indirectly. Strong commitment empowers staff to live the brand consistently, influencing brand equity. This paper argues that using organizational commitment and applying social identity theory allows a greater understanding of internal branding processes.

Raisa Yakimova, Bill Merrilees, Dale Miller

Measurement of Perceived Multisensory Marketing Strategies

Emotions have been studied since the beginning of time as a basic part of the human nature. However it is not until the 1950s to begin studying emotions as part of the business world. A great effort has been devoted to determine the role of emotion in marketing (Edell & Burke, 1987; Aaker, Stayman, & Vezina, 1988; Holbrook & Batra, 1987; Richins, 1997, O’Shaughnessy & O’Shaughnessy, 2003), almost all them based on psychological studies. Emotions are vital for human beings and they are produced by the information captured through the senses and by nature, humans are multisensorial (using the five senses simultaneously).

Karla Barajas-Portas

EDITORIAL REVIEWERS’ PERSPECTIVES ON WRITING AND PUBLISHING IN HIGH QUALITY MARKETING JOURNALS: AN INTERACTIVE DISCUSSION

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Editorial Reviewers’ Persepctives on Writing and Publishing in High Quality Marketing Journals: An Interactive Discussion

With the existing insights on writing and publishing marketing journal articles and the discipline’s rapid expansion of publishing opportunities in new U.S. and international marketing journals, one intuitive prediction is marketing scholars’ publishing success of important scientific articles is rapidly becoming a more common occurrence. Yet, this trend prediction is perplexing and contradictive because the prestigious and top 25 ranked marketing-oriented journals consistently report annual acceptance rates ranging between 7 and 18%. The low acceptance suggest a disconnect gap between conducting important, relevant quality research and ultimately publishing that research in quality journals.

David J. Ortinau, Charles Ingene, Jeannette A. Mena

CONSUMER BEHAVIOR: BRANDING

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The Influence of Inertia on Brand Switching Behaviour

Understanding the process of switching providers is a topic of much debate and interest amongst market scholars and managers. What has not been studied in-depth until now, is the influence of inertia on customer advocacy, customer satisfaction and switching intentions. Results based on qualitative and quantitative research of 799 mobile phone service customers showed that customer inertial factors such as confusion; competitor attraction (i.e. the lack of perceived differentiation amongst alternative service providers); habit or passivity in continuing with the same product/service supplier; switching costs; customer ambivalence and time constraints can negatively impact customer advocacy, customer satisfaction and switching intentions. The implications for research and management are that customer inertia is a complex variable best uncovered in qualitative research. If used unwisely it has the capacity to allow a brand to temporarily get away with poor service in situations where their clients perceive that there are high costs of changing to an alternative supplier. The longer term costs however are diminished customer advocacy and customer satisfaction.

David Gray, Steven D’Alessandro, Leanne Carter

Are Management Responses to Negative Online Consumer Reviews Beneficial?

In today’s “connected” social media environment, marketers recognized more than ever the power of online consumers’ reviews. It is a valuable resource for continual product improvement and for managing the reputation of a firm. While positive reviews may contribute to brand equity and a company’s reputation, the key question is whether organizations should respond to negative reviews. This research begins to answer this question and addresses the conditions when a response is warranted.

Mei Rose, Jeffery G Blodgett

INTERNATIONAL AND CROSSJCULTURAL MARKETING: ASPECTS OF INTERNATIONAL STRATEGY

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Relational Risks for Guanxi Boundary Spanners in Chinese-Foreign Business Interactions

Guanxi boundary-spanners are important gate openers and relationship facilitators for foreign firms and managers considering doing business in a close-knit Chinese society. With increasing attention on proper way of doing business in the Chinese society, Western businesses are keen to connect with beneficial guanxi network. However, little attention has been given to the significant risks that guanxi boundary spanners assume in working with both guanxi insiders and outsiders. This research gap ignores one of the most important contexts for the guanxi boundary spanner: the risks of the role are often the result of in-group social norms embedded in Confucius values that can undermine new or out-group relationships. The purpose of the current research is to evaluate the underlying and intertwined social norm conflicts and strengths of guanxi ties, which create relational risks for guanxi boundary-spanners and their patrons. Applied Social Penetration Theory and Guanxi concentric circle analogy, the current study interviewed thirty-three experts from a global expatriate network with using critical incident techniques (CIT). Our findings confirm that guanxi boundary spanners often evaluate two key factors to assess relational risks: (A) the level of social norm conflict between foreign out-group and guanxi in-group and (B) the strength of his/her guanxi with the in-group members. These two key factors were used to identify resulting four quadrants: Shameless Foreign Supporter, Profit Exploiter, Unneeded Middleman, Information Trader.Contributing to relationship marketing and international business literature, this study is among the first to empirically investigate the relational risks guanxi boundary-spanners assumed when assisting foreign businesses connecting guanxi network. Our findings provide new information to aid international marketing/business executives to: (1) identify key factors driving relational risks, (2) understand relational risks typologies guanxi brokers undertaken, (3) develop strategies to mitigate these risks, and thereby, (4) enter the guanxi-inside group by means that develop positive, long-term relationships with the subject Chinese businesses.

Annie H. Liu, Hongzhi Gao

The Antecedents and Consequences of Price Leadership Strategy: An Empirical Investigation of Chinese Manufacture Exporters

Research on strategic choice for exporters when engaging into the international market has grown to be a critical issue. Price leadership strategy, however, received little attention in the field of existing researches. This research aims to examine the influential factors of price leadership strategy, and investigates its effects on export performance. In addition, market and product characteristics are introduced in this research as moderating effects.Empirical results suggest that adoption of price leadership strategy will diminish export performance satisfaction of Chinese exporting manufacturers. Moreover, this effect is especially stronger when the targets of exporting market are developing countries. The similar impact is shown under the circumstance that Chinese manufacturers who are exporting industrial goods.

Zuohao HU, Xuenan JU, Yuan CHENG, Mengyuan LV, Xi CHEN

Networks, Dynamic International Opportunity Recognition and Performance Among International New Ventures

In this paper two dimensions of dynamic international opportunity recognition (OR) construct – ’innovativeness and timeliness’ and ’modification and resource shifting’ – are identified as mediating mechanisms that link social and business networks to international performance. From a sample of 647 international new ventures (INVs) from a developing economy, our results provide evidence for the mediating effect of dynamic international OR. This study fills a gap in the under-researched area surrounding opportunity related activities in international entrepreneurship (IE) literature and shows how INVs from an emerging economy can leverage the network dynamics of OR to achieve financial, non-financial, and network-related performance from early internationalization.

Anisur R. Faroque, Sussie C. Morrish

INTERNATIONAL AND CROSSJCULTURAL MARKETING: CROSSJNATIONAL CONSUMER RESEARCH

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Susceptibility to Credit Card Effects and Revolving Credit Card Holders: A Multi-Country Evaluation on British, Singaporean and Malaysian Youth Markets

In today’s vogue towards a cashless society, preference for “plastic money” has dominated conventional payment forms such as cash and checks (Feinberg 1986; Soman 2003; White 1975). Credit card is arguably the most beneficial type of plastic money as it allows an intertemporal allocation of income, which entitles consumers to borrow future income to use in the present (Prelec and Loewenstein 1998). However, credit card also bears some unintended negative consequences, particularly for the young consumers. This study introduces a concept termed susceptibility to credit card effects to determine the extent to which individuals perceive credit cards as spending stimuli that promotes greater ease of spending. The objective of this study is twofold. First, we develop and validate the SCCE scale in a cross-country setting to statistically show the widespread credit card effects across environments with different credit card regulations. Secondly, we test the hypothesis that susceptibility to credit card effects has a positive effect on the tendency to become revolving credit card holders, which signify problematic credit card debt accumulation.

Sandra Awanis, Charles C. Cui

American and Australian Women’s Antecedents to Trust, Commitment and Loyalty to Costco

Value retailers such as Costco have created a shopping environment that inspires a “treasure-hunt” from its customers because certain items in their merchandise assortment are available in very limited quantities. The “thrill of the hunt” appeals to certain types of shoppers and can create a fun and exciting experience (Huddleston & Minahan, 2011). We surmise that this type of shopping environment will affect shopping environment satisfaction, which in turn will influence hedonic experience. The hedonic experience might lead to trust, commitment and loyalty to a retailer. With this in mind, our study examine whether shopping environment satisfaction and hedonic shopping value affect female consumer trust, commitment and loyalty to a store across cultures.

Patricia Huddleston, Eunyoung (Christine) Sung, Stella Minahan, Constanza Bianchi

Assessing the Feasibility of Mturk for Cross-National Consumer Online Sampling

Sampling respondents from online sources is now a common research practice. With the increase in internet use across the globe, it is possible to source respondents from multiple countries. This leads to questions concerning the suitability of these samples for cross-national research. Amazon’s Mechanical Turk (MTurk) is a now common source of participants in research. To assess the feasibility of MTurk for cross-national consumer research this paper asks two broad questions (i) where are MTurk workers located and can location be considered equivalent to nationality?, and (ii) are MTurk workers representative of their nationalities and/or cross-nationally comparable?The type of consumer sample that is desired when sampling across national/cultural boundaries depends on the objectives of the research. Research objectives may require within nationality ’representativeness’ or cross-national ’comparability’ (Reynolds et al., 2003). It is unlikely that both representativeness and comparability will be achieved through sampling alone (Craig & Douglas, 2005). If the research objective is concerned with examining attitudes or behaviors within specific countries (descriptive international research) then the sample needs to focus on achieving representativeness (Reynolds et al., 2003). In contrast, comparability is the sampling objective when the research objective is concerned with examining the differences/similarities between consumers in different countries (comparative international research) or when looking at the cross-national generalizability of a theoretical model (theoretical international research) (Reynolds et al., 2003). With both comparative and theoretical international research, the researcher wants to isolate the impact of variables not associated with the nationality of the respondents on the results. Research objectives also point to the likely sampling issues in the cross-national environment. Coverage issues are particularly relevant to the question of sample representativeness as cross-national researchers need to be confident that online sampling will not disproportionately excluded any members of their target population. The general lack of sampling frames in the online environment is also problematic for representativeness, particularly as non-response errors cannot be assessed in the absence of a clear sampling frame. When comparability is the objective of the research there are fewer formal procedures for assessing sample quality, though methods do exist for selecting samples.MTurk is “a novel, open online marketplace for getting work done by others” (Buhrmester et al., 2011, p.3); defining a survey or experiment as a ’work-task’ with a payment attached allows researchers to use MTurk as a participant pool (Mason and Suri 2012). MTurk has also been used to source international respondents – for example, to investigate whether the underlying reason for some gender differences persist across nationalities (Eriksson & Simpson, 2010). The unrestricted sample associated with this study reveals that the US and India supply the majority of MTurk workers. MTurk’s US-based workers have been found to provide psychological data that is reliable, and with results that are comparable to those found with traditional US samples (Berinsky et al., 2012; Goodman et al., 2012; Mason and Suri 2012; Paolacci et al., 2010).This study’s results confirmed that only the US and India have a sufficiently large pool of MTurk workers to be able to easily draw a national sample from. While almost three hundred responses were from outside the US and India, no single nationality was large enough to produce a feasible national sample. It also appears that location is a reasonable proxy for nationality with the US and India. The question of whether the obtainable national samples were (a) representative and (b) comparable indicates that it is possible to obtain an MTurk sample that is broadly representative of the general US population, but not of the Indian (urban) population. In terms of comparability, MTurk workers from India and the US are not statistically different with respect to gender. However, statistically significant differences are found with other variables. To obtain comparable US and Indian samples some control to ensure comparability would be needed. Comparable samples, as such, appear achievable.In conclusion, when the sampling objectives of representativeness and comparability are considered, it is possible to collect a sample representative of the US population, but not the Indian (urban) population. Collecting comparable samples from India and the US using MTurk is also generally feasible. Other sources of participants will be needed if achieving the research objectives requires different nationalities. MTurk workers are, overall, a feasible sampling choice for cross-national researchers on research projects that can legitimately use the US and India as country choices, and when the research objectives are comparative or theoretical rather than descriptive.

Nina Reynolds, Luke Greenacre

BRANDS IN DIFFERENT CONTEXTS

Frontmatter

An Examination of the Realtionship Between Country of Origin and Customer-Based Brand Equity: Testing the Effect of Some Moderators

This study examines the relationship between the country of origin cue of a brand and the customer-based equity of this brand. In addition, the authors examined the moderating effect of three variables; the personal involvement of the consumers, the consumer’s prior experience with the brand and the promotional activities related to the brand. Data were collected from a sample of 250 Egyptian customers. Self-administered questionnaires were distributed and 230 usable questionnaires were returned. The sample included users of five automobiles brands from Korea, France, The United States and Germany. The data were collected from automobile service centers. The authors used moderated regression analysis to test the hypothesized relationships. The findings of this study provide empirical support for the existence of a positive significant association between the country-of-origin of a given brand and the consumer-based equity of this brand (R square equals 17.1% significant at p< 0.000). In addition, both promotional activity and the perceived risk of mispurchase (a dimension of the personal involvement) show significant moderating effects. R square after adding these moderators was equal to 35.6% (for the Chevrolet brand name) and 19.1% respectively (p< 0.031 and p<0.024, respectively). Furthermore, the results show a significant main effect of the product perceived importance on the brand equity value (R square equals 20.6% and p<0.003). The results are consistent with the suggestions in the literature assuming that consumers rely on the country-of-origin information particularly in the case of unfamiliarity with the product and/or the brand. Unlike many other studies, the consumer’s prior experience with the product did not show a significant moderating effect for all of the brands selected. This study is considered one of very few studies that examined the relationship between brand equity and country-of-origin in the Middle East. It also provides insights to practitioners working in the Middle East as to the importance of promotional activities emphasizing country-of-origin and negative consequences of mispurchase in their efforts to market high involvement products.

Heba Ismail, Nadia El-Aref, Omneya Yacout

Service Employees as Brand Champions: The Effects of Service Employees’ Branding Behaviors on Brand Outcomes

In an era of rapid development and growth of service industries, both researchers and practitioners have recognized that employee performance plays a critical role in the success of a service brand (Berry, 2000; Brakus et al., 2009; Keller, 2001; O’Cass and Grace, 2004). Indeed, customers’ perceptions of a service brand often depend on the behavior of frontline employees (Berry, 2000; Keller, 2001; Morhart et al., 2009; O’Cass and Grace, 2003). Therefore, the role of frontline employees in ensuring organizational brand perceptions and outcomes is of particular importance for service firms (Berry, 2000; O’Cass and Grace, 2003).

Jiun-Sheng Chris Lin, Cheng-Yu Lin, En-Yi Chou

Exploring the Influences of Communication Strategies and Message Types on Advertising Spillover Effects in Product Lines

Brand is one of the most important assets for corporations and influences consumers’ product choices dramatically. Corporations usually introduce new products under the name of an existing brand with good image. This practice applies the so called positive “spillover effect”, hoping that consumers will project their goodwill and preference of an existing brand or product to another products in the same brand family. Conversely, negative spillover effects occur when consumers project their bad thoughts about an existing brand to another product using the same brand name. Line extension refers to that the brand name of an existing product (i.e., the parent) is extended to new products (i.e., the extensions) within the same product category (for example, Canon extends its brand name used for laser printers into inkjet printers). The products under the same brand name within the same category compose of a product line. 89% new products are introduced through line extensions (Aaker 1991). Scholars divide product lines into vertical product lines and horizontal product lines. Researchers refer to variation in the quality and price levels of products within a category as a “vertical product line”, whereas they refer to variation in the functions, sizes, flavors, or subcategories of the products as a “horizontal product line” (Randall, Ulrich, and Reibstein 1998). For example, the Nokia N-series is a vertical product line because its high-end product (N95) includes better functions, such as GPS and PDA capabilities, that its low-end product (N93) does not have. On the other hand, Coca-Cola has three products with different flavors: Classic, Diet, and Zero Coke. These three products are differentiated by flavor rather than quality and price, which compose of a horizontal product line.

Yi-Fen Liu, Chi-Cheng Wu

CORPORATE RESPONSIBILITY, EMOTIONS AND BRAND

Frontmatter

The Impact of Emotion and Brand Placement on Brand Memory: A Neurophysiological View

This paper investigates the interplay of consumer emotional response to Ad content and moment of brand placement on the consumer ability to associate Ad message and brand name. Therefore, this research is not focused on Ad effectiveness but in brand memory and its association with Ad content. Neurophysiological data was collected while subjects were watching emotionally appealing TV Ads and compared with implicit and explicit brand memory tests. The results support the idea that placing the brand in moments of greater emotional response increases the ability to associate brand name and Ad content.

Carlos Felipe C. de Almeida, Danilo C. Dantas, Sylvain Sénécal

Believe It or Not: How Social Axioms Impact on Customer Perceptions of Corporate Brand Reputation

The importance of corporate brand reputation has, in recent years, been recognised by scholars and practitioners alike (Brammer & Pavelin, 2006; Deephouse & Carter, 2005; Fombrun & Van Riel, 2004). A positive reputation can create competitive advantage and superior brand performance, thereby placing the management of this intangible resource in line with operational, legal and financial duties of managers (Carter, 2006; Gardberg & Fombrun, 2006; Jones et al., 2000; Ravasi & Schultz, 2006; Walsh et al., 2009). However, despite its widely acknowledged importance, and despite the fact that customers are a vital stakeholder group, there has been little systematic research investigating corporate brand reputation through the lens of customers, let alone individual differences among customers.In this article we examine the moderating impact of deeply-held individual beliefs, known as social axioms, on the development of corporate brand reputation from a customer perspective. Building on a conceptual model derived from literature, we investigate two dimensions of importance to customers - reputation for product/service quality and reputation for social responsibility (Gardberg & Fombrun, 2006; McWilliams et al., 2006; Sen & Bhattacharya, 2001). We link them to antecedents associated with customer experiences as well as to outcomes related to customer attitudes and behaviour intentions (Hillenbrand, 2011; Walsh et al. 2009). We also build on theoretical advances in the study of individual differences and social axioms (Kwantes & Karam, 2009; Leung et al., 2002; Zhou et al., 2009), to examine individual axiomatic beliefs about the world as moderators of perceptions and outcomes of corporate brand reputation. We test the impact of two dimensions found within Leung et al.’s (2002) social axioms construct, identified as social cynicism and religiosity, on several driver and outcome variables.Data were collected in the form of a self-complete questionnaire from 216 customers of an established Canadian retailer in the fall of 2009. The component based approach PLS-SEM was utilised to examine the relationships among the study constructs due to the existence of both reflective and formative indicators (Chin, 1998). We then tested for moderating influences according to a procedure developed by Henseler and Fassot (2009), and found significant differences in several model paths between individuals identified as either high or low on social cynicism and religiosity.Our findings revealed individuals low on social cynicism are more likely than high cynics to attribute brand reputation for product/service quality to their direct personal interactions with a firm and rely less on what they see/hear from other sources. In addition, brand reputation for social responsibility is more helpful in reducing distrust with these ’low cynicism’ customers. Finally, customers who have strong religious beliefs tend to be less likely to be influenced by ’others-related’ experiences when forming perceptions of brand social responsibility, and are less likely than their low religious counterparts to increase trust in a brand based on its perceived product/service quality.At a time when firms grapple with how best to manage customer relationships, our model provides a fresh approach for understanding how customers perceive and respond to corporate brand reputation based on their individual axiomatic beliefs.

Kevin Money, Bettina West, Carola Hillenbrand

RELATIONSHIPS AND RETENTION

Frontmatter

Antecedents of Word-of-Mouth: An Examination of Consumer- and Sector-Level Effects

Existing research considers word-of-mouth (WOM) as one of the oldest and most influential channels of communication in the marketplace (Ennew et al. 2000) and various examples provide evidence for this assumption. While positive WOM is regarded as a key factor to success (Katz and Lazarsfeld 1955, Murray 1991), negative WOM might substantially harm companies’ success (Weinberger et al. 1981, Mizerski 1982). Therefore, the huge impact of (positive and negative) WOM on companies’ success raises their interest on antecedents of WOM and encourages researchers to investigate the antecedents of WOM.Although various studies suggest that the relevance of WOM and in conjunction with that its antecedents depend on product category attributes or sector factors (e.g., Richins and Roth-Shaffer 1988, Samson 2006), little is known if WOM communication really differs across contexts (service vs. product). These differences and knowledge about potential explanatory variables are important, as firms increasingly tend to publish their WOM or net-promoter-scores (NPS) in annual reports or use these scores as quality signal in advertising. The meta-analysis by de Matos and Rossi (2008) suggests a moderating impact of the industry sector (product vs. service) on the relationship between satisfaction and WOM, but do not find empirical support in their data. Using data of 1,147 respondents with each respondent evaluating one of 32 product categories, the aim of our study is to explore differences of WOM communication across a broad range of product categories as well as to explain these differences using specific category characteristics. In doing so, we do not explicitly distinguish between products and services. Instead, we characterize each category using the following five variables: level of prestige, interaction intensity, perceived purchase risk, level of experience attributes, and level of credence attributes. As many researchers point out that WOM communication might depend on various category characteristics (e.g., Bayus 1985, Bone 1992, Hartline and Jones 1996, East et al. 2001, Hennig-Thurau et al. 2004, Brown et al. 2005, Walsh and Beatty 2007), this study aims at closing this research gap.Data for our study comes from two different sources: survey-based data from a representative field study, and expert ratings from several industry experts that are used as assessment of category characteristics. First, we collected data via a representative online survey among members of an online panel provider. A total of 1,147 respondents participated in the survey. Second, we conducted expert interviews with a set of 12 experts, such as academics in the field of business research, consultants, and respondents in other functions (e.g., officials from the chamber of commerce). The experts were asked to evaluate each of the 32 product categories according to several characteristics. The categories were chosen to represent the most important and relevant consumer markets such as automobiles, fashion, furniture, hotels, jewelleries, retailers, sport articles, telecommunication services, etc. (full list available upon request).Due to the dyadic nature of the data, this study uses a multilevel structural equation modelling approach to test the relationships of the two-level data in a single analysis, accounting for the variability associated with each level of the hierarchy. Although the assessment of individual-level determinants of WOM intention was not in the focus of this paper, a conclusion of the empirical analysis is that customer satisfaction dominates other, more personality-describing factors. On the category-level, results reveal that level-differences in WOM depend on the amount of prestige associated with a category. Additionally, WOM is higher with higher levels of experience-and credence attributes. Contrary to our conceptual model, the levels of risk and the level of interaction intensity within the product categories are unrelated to level-differences of WOM. Potentially, risk is already covered implicitly in the share of experience and credence attributes. Concerning the insignificant effect of interaction intensity, a potential explanation could be that individuals associate each product category more heterogeneously in terms of interaction intensity (as multiple sales channels ranging from highly personalized and interactive channels to technology-mediated channels without human interactions exist) relative to the assessments of the expert panel. The findings may help marketing managers to learn why scores differ across categories, and could provide a basis for calculation of adjustment factors to provide cross-sector equivalent key performance indicators such as WOM. Differences across sectors matter, because sectors might seem as more service-oriented if they receive higher scores for WOM (or NPS, as used by many firms), even if their score-advantage is a result of category characteristics.

Alke Töllner, David M. Woisetschläger

Does the Age of Relationship Matter in Customer Referral Behaviour?

Prior research has noted key differences between short-term and long-term customers in regards to their referral behaviour. However, these predominantly cross-sectional studies have focused on refer intention and referral likelihood as the primary measure of customer referral. There has been a scarce amount of research investigating actual customer referral behaviour in the relationship marketing literature. Using a combination of transactional and survey data from a local internet service provider (ISP), this research provides an empirical examination of the moderating effect of relationship age on the relationship between changes in the antecedents of customer referral (service reliability, service quality, customer service and perceived value) and customer referral behaviour. The findings offer some interesting implications for both relationship marketing theory and practice.

Alisha Stein, B. Ramaseshan

Development of the Long-Term Service Model on Customer Relationships: Consideration of Primary and Secondary Attributes

There are some long-term services, such as educational and medical services, which are provided through multiple and repetitive transactions between service firms and customers.In long-term service experiences, customers are more likely to stop repurchasing the services as they are more satisfied with the primary attributes of the services, which are service attributes related to core customer needs, e.g., language upskilling at a language school. This is because customers may begin to purchase the services in order to gradually fulfill their core needs. On the other hand, customers are less likely to stop repurchasing the services as they are more satisfied with the secondary attributes of the services, which are service attributes related to subsidiary customer needs, e.g., politeness of a contact person. This is because the customers’ intentions toward repurchasing may be increased by gradually fulfilling their subsidiary needs.Whether the effects of satisfaction on repurchasing intention are negative or positive depends on whether the objects of satisfaction are related to the primary or secondary attributes. Thus, this study developed a model describing that satisfaction with the primary attributes had a negative effect on repurchasing intention of a long-term service, while satisfaction with the secondary attributes had a positive effect on repurchasing intention of the service.The results of structural equation modeling supported the model. Previous studies have overlooked the possibility that there are two kinds of objects of satisfaction in the case of long-term services and have failed to model the effects of satisfactions with the two objects. This study divided the objects of customer satisfaction and found that satisfactions with two attributes have converse effects on repurchasing intention. Therefore, this study is a key step toward understanding of customer satisfaction and explaining repurchasing in long-term services.

Takahiro Chiba

ONLINE COMMUNITIES

Frontmatter

Virtual World, Real Engagement: Building Brand Attachment Via Hosted Brand Community Online Events

Creating positive brand experiences by interacting with consumers through hosted events in brand-based communities should enhance brand attachment. The important commercial benefits of consumer brand attachment include positive word of mouth (WOM), attitudinal and behavioural loyalty and a greater willingness to pay a premium price (WTPPP). Typically community brand events have purposely excluded marketers’ brand involvement activities (e.g. consumer driven communities on line or in a face-to-face context). Others have taken the form of sponsorship where direct interaction with brand representatives is extremely limited, scripted or non-existent. This research extends the literature related to stimulating brand attachment by investigating brand led community events and unscripted consumer interaction with each other and brands’ representatives.

Michael Ewer, Roberta Veale, Pascale Quester

Online Consumer Engagement Behaviour: The Consumer-Based Antecedents

The purpose of this paper is to identify the consumer-based antecedents of online Consumer Engagement Behaviour (CEB). Online CEB refers to non-transactional behavioural manifestation focusing on brands, products or firms, with a direct or indirect and positive or negative impact on firm performance (van Doorn et al. 2010). Online CEB includes e-WOM, online consumer recommendations, blogging, or writing online reviews related to particular product categories or brands. The proliferation of these activities due to the rise of social networking sites enables consumers to interact, share, and create content about many things, including brands. Therefore, it is important for firms to examine the antecedents of online CEB in order to understand its nature and better manage online CEB. This paper proposes a conceptual model of consumer-based antecedents of online Consumer Engagement Behaviour.

Yeshika Alversia, Nina Michaelidou, Caroline Moraes

BRAND THEORY AND STRATEGY

Frontmatter

The Contribution of Contract Theory to Brand Strategy

This conceptual paper addresses an under-researched area of brand theory that is central to the link between the brand proposition and those expectations consumers thereby gain, reasonably, about the brand and its promises, and which influence brand-consumer relationships. The paper uses historical analysis of brand literature and of recent literature on brand-consumer relationships and on contract theory. Explicit advertising propositions are expressive of a promise on which brands are expected to deliver; this is not the case with implicit propositions. Yet underpinning both these types of promise is an expectation that a product/service must deliver on its obligations of safety and performance and that the brand owner accept legal responsibility for the alignment of the brand’s promises with the brand’s performance. The research identifies a possible boundary of the domain of the brand construct and thereby provides management with guidance to ensure a brand’s legitimacy in the eyes of its consumers and of the company’s stakeholders.

Stephen Lloyd, Matthew Barber

Antecedents and Consequences of Employer Brand Equity: Toward a Conceptual Framework

Recent years have witnessed the use of marketing perspectives to examine the challenges confronting companies in their ongoing quest for employee attraction and retention. Specifically, branding concepts have provided a useful theoretical foundation for researchers to explore and develop a deeper understanding of employer branding. However, most of the work in this area has focused on theory transfer and scale measurement with limited description of how employer brand equity might be developed and affect employee perception. The lesson from marketing is that branding research is more important when we know what drives its value and how it affects consumers’ perceptions. Using Aaker’s (1991) model of brand equity as a starting point, this paper introduces a conceptual framework for employer brand equity that incorporates both antecedents and outcomes and provides a theoretical foundation for future research.

Sultan Alshathry, Marilyn Clarke, Steve Goodman

Brand Portfolio Architecture and Firm Performance: The Moderating Impact of Generic Strategy

Even a casual observation of brand portfolio architecture used in marketing practice shows that different firms operating in the same market segments have different architectural preferences for their brand portfolios. Consider the automobile industry. Mercedes-Benz employs a corporate branding architecture (also known as a ’branded house’ architecture), while Volkswagen makes use of a house-of-brands architecture (e.g., Audi, Bentley, Porsche, and VW). Clearly, both brand portfolio architectures are used with great success within the same market segments. Consider also the confectionary industry. Cadbury emphasizes a corporate branding architecture (e.g., Cadbury Dairy Milk, Cadbury Top Deck, and Cadbury Old Gold), while Mars uses a house-of-brands architecture (e.g., Mars, Snickers, and Maltesers). Again we observe the use of the two brand portfolio architectures within the same market segments with great success.

Amanda Spry, Bryan A. Lukas

Performance Benefits of Hybrid Brand and Market Orientation Interaction

Recent studies conceptualize that market orientation and brand orientation may be more than simple alternative strategic options for marketing strategy, but evolve further into a distinctive hybrid orientation that combines and integrates the two orientations. That is, although separate market orientation and brand orientation may exist, sophisticated marketing may evolve to include what has been termed a market and brand orientation hybrid (Urde, Baumgarth and Merrilees, 2011). The current paper empirically tests for such a hybrid orientation. Additionally, the paper is able to identify and quantify the mechanism by which brand orientation impacts marketing performance. The identified mechanism has its genesis in the operational implementation of the marketing strategy.

Bill Merrilees, Carsten Baumgarth

RETAIL ENVIRONMENTS AND FRANCHISE SUPPORT

Frontmatter

How to Impact Franchisee Adjustment: An Empirical Examination of Franchisor Support

The decision to enter a franchise system and to become a franchisee represents an important change in an individual’s work environment (Kaufmann and Stanworth 1995). Once having signed a franchise contract, franchisees usually give up their current jobs and have to learn how to successfully establish and operate a franchise business. The initial phase of an individual’s engagement as a franchisee is often accompanied by entrepreneurial euphoria, resulting from the fascination and excitement of beginning a new phase in their working life (Frazer 2001). However, recent research on relationship formation between franchisees and franchisors indicates that after some time, this initial fascination decreases due to sobering experiences with the franchise system. Blut and colleagues (2011) argue that this typical downturn of relationship properties may lead to a number of negative consequences such as increased opportunism of the franchisees, reduced investments, and lowered operational input (Oxenfeldt and Kelly 1968). Thus, it is important for the franchisor to understand why some franchisees adjust well after some time while others do not. Against this background, the contribution of this study is twofold. First, it develops a conceptual model of factors influencing the adjustment of franchisees during their first years. Second, it empirically tests the model including measures in the area of (a) job design, (b) knowledge management, and (c) attractiveness of the franchise using a matched sample consisting of 32 franchise systems and 1,581 franchisees. Based mainly on arguments from the expatriate literature and from social learning theory, we empirically test three hypotheses: H1: The decrease of franchisee satisfaction, trust, and commitment when franchisees move from the honeymoon to disillusionment stage is weaker in those franchise systems in which franchisees (a) are granted a high degree of autonomy (b) and in which franchisees are motivated to actively participate in decision making.H2: The decrease of franchisee satisfaction, trust, and commitment when franchisees move from the honeymoon to disillusionment stage is weaker in those franchise systems in which (a) franchisors extensively transfer knowledge to their franchisees and in which (b) a high percentage of franchisees has experience through prior self-employment.H3: The decrease of franchisee satisfaction, trust, and commitment when franchisees move from the honeymoon to disillusionment stage is weaker in those franchise systems characterized by (a) lower initial investments, (b) lower royalty rates, (c) greater contract lengths, and (d) better reputation of the franchise system.Due to the nested nature of the data, we test our model using a multilevel regression model. Looking at the level-1 regression results, we note that franchisee satisfaction is significantly lower for franchisees in the disillusionment stage. We also find two significant negative effects on franchisee trust and franchisee commitment. These results indicate that after a period of excitement, franchisees experience disillusionment leading to lower relational properties. Turning to the level-2 effects, we find several cross-level interactions of measures in the area of job design, knowledge management, and attractiveness of the franchise. As expected through our conceptual reasoning, a high degree of franchisee autonomy, franchisee participation, knowledge transfer, prior self-employment, royalty, and reputation of the system buffer the disillusionment of franchisees for each of the three relationship properties, satisfaction, trust, and commitment. Moreover, initial investments are found to display only a buffering effect for trust but not for satisfaction and commitment. Finally, we do not find a cross-level interaction for contract length neither on the slopes of lifecycle-stage on satisfaction, trust, nor commitment. In sum, the results indicate that franchisors can indeed facilitate franchisee adjustment.

Markus Blut, Christof Backhaus, David M. Woisetschläger, Heiner Evanschitzky, Tobias Heussler

Customer Value and Shopping Experience

Many trends have characterized the modern retailing, including the competition between the brick and mortar and online stores. Brick and mortar stores have to find new ways to create shopper value making the act of buying a moment of pleasure. In order to obtain success on shopper experiences strategies it is important to consider tangibles and intangibles aspects that provide customer value. This study aims to understand what shoppers’ value in their shopping experience in a toy store. The present research was based on means-end chain model to identify the elements that generates value. To reach the research goal a laddering technique was conducted with 15 in-depth interviews. The research has found six main shopper value representations: i) the toy store is a means to obtain stimuli that assist child development; (ii) the magical and playful stimuli evoke memories and fantasies; (iii) time and money are important resources upon purchase; (iv) the toy has to trigger child’s desire; (v) the variety offered is important to support the choice; and (vi) the feeling of making a good purchase is a desired factor. Finally there is proposal on how retail can offer a superior value over the shopper experience.

Beatriz Cavalcante Chamie, Ana Akemi Ikeda, Marcos Cortez Campomar

Consumer Innovativeness Effects on Retail Extension Evaluations

Retail firms are continually seeking ways to grow their business, sell more products, extend into new markets and so increase the equity of their brands. One successful growth strategy to achieve such objectives is brand extension. Despite considerable research in the area of brand extensions, there is surprisingly little research on how consumers view retail extensions. This study examines how consumer innovativeness affects their evaluations of two important components of the brand equity of retail extensions. The proposed conceptual model was tested for two global retailers that offered retail extensions of varying level of similarity to the parent retailer: McDonald’s (who have extended their brand into McCafe) and KMart (who have extended their brand into KMart Tyre and Auto Service). Participants (n1= 255, n2 = 250) were adult consumers who evaluated the store retailer brand and its retail extension on perceived quality, brand loyalty and reported their innovativeness. The results indicated that perceptions of quality mediated the impact of customer innovativeness on brand loyalty. These effects were stronger where the retailer-extension pair was similar rather than diverse.

Merissa Chong, Ravi Pappu, Alastair Tombs

Consumers’ Willingness to Patronize Foreign-Based Business Format Franchises: Exploring The Fast-Food Sector

There exists a long-standing tradition of U.S.-based business format franchises that export their brands and franchise concepts abroad. In fact, the United States has long been the world leader in exporting franchises. In 2007, more than 93% of all global franchises were based in the United States. The globalization of brand mammoths like Century 21, McDonald’s, 7-Eleven and Starbucks illuminate the unprecedented growth of U.S.-based franchises worldwide. However, the U.S. market has experienced a new trend: it is now a focal market for foreign-based franchise systems’ global market entry and expansion strategies (“Buying a Foreign-Based Franchise” 2005). The findings of this study provide important insights for global franchising managers. For instance, a focus on creating consumer affect is seen to be fruitful as I was able to find support for the affect and retail patronage linkage. As global franchise offerings are new and original, they might be more successful if the managers focus on creating affect, especially during the market penetration stage where first impressions are formed. In addition, creating curiosity about product offerings is also advisable for such foreign-based firms, as there was a positive association for the level of curiosity and retail patronage. The curiosity dimension is very important for foreign-based retail firms as the service offering they bring to the United States is characterized by uniqueness or authenticity. To that end, if these strategies are pursued, then the practical benefits of this would be immense. In addition, the inability to link essentialist categorizations to retail patronage can be important, such that a focus on signs, symbols, and artifacts might not necessarily have negative consequences, even for consumers who are high in essentialist categorizations.

Scott Ertekin, Lou E. Pelton, Annie H. Liu, ThuyNguyen

PAY WHAT YOU WANT PRICING, PRICE, QUALITY AND SIZE

Frontmatter

Pay What You Want: Willingness to Pay Under No, Part, and Full Information of Cost of Product

In pay what you want pricing method, consumers are free to determine the price of the product (including zero) and pay accordingly. Researchers found that delegation of power to the consumer for deciding price, combined with their social status encourages them to pay a reasonable price for the product they consume. Studies suggest that consumer’s willingness to pay differ in presence of information about the product than in absence.This study investigates consumer’s willingness to pay under pay what you want (PWYW) pricing strategy when they are not informed about the cost of the product, only informed about total cost of the product, and fully informed about the detail cost of the product by the seller. Experimental research is conducted in the context of food item to measure consumers’ willingness to pay in PWYW pricing strategy. Two studies were conducted on food items and hot beverages. The average price paid under PWYW condition is significantly greater than zero (p < 0.01) in all the cases studied. However, interesting finding of our research is that consumers’ willingness to pay increases significantly (p < .05) when sellers disclose cost of the product. Unlike some of the earlier studies we found that number of units sold and total revenue under PWYW pricing are significantly higher than total number of units sold and total revenue under regular pricing (both cases p < 0.01). It is observed that percentage increase in revenue as well as in unit sold is considerably less when consumers are exposed to social pressure (study 2) than when they are not exposed to social pressure by the seller (study 1). On the other hand, quite interestingly, we found that percentage of consumers’ willingness to pay over the disclosed cost price by the seller is significantly higher (p<.05) when seller force customers to social pressure, than otherwise. This study provides a theoretical and empirical insight of how willingness to pay changes under PWYW pricing when customers are exposed to information about the cost of product by the sellers. It is also shown in this study the consumer’s behaviour in pay what you want pricing when they are exposed to social pressure.This study analyses consumers buying behaviour from different perspective and estimates the effect of pay what you want pricing on number of units sold, total revenue, total profit and percentage of increase in willingness to pay over the cost price of the items. Our experiments in line with previous researchers also show that consumers do not follow the traditional economic theory of rationality in this context pay price significantly higher than zero when there are allowed to pay nothing. The study also revealed an interesting behaviour of consumers as it found that total sales and total revenue are significantly less when consumers are exposed to social pressure than when they are not exposed to social pressure.

Atanu Adhikari

Factors Influencing Consumers’ Willingness to Pay Under Pay What You Want Context

Pay What You Want (PWYW) is a type of participative pricing mechanism where the buyer can offer any price including a price of zero; and the seller has to accept the price without withdrawing the product offer. Although existing research identified several variables such as altruism, price consciousness, reference price, income, and perceived fairness of the price paid to influence consumers’ willingness to pay (WTP) under PWYW context; however, many of these variables may act in complex interactive ways. To the best of our knowledge, no study tested the interaction among these variables in a PWYW context. This research examined the direct and interactive impact of product involvement, price consciousness and internal reference price on consumers’ WTP under PWYW context. It confirmed that consumers pay a significantly higher price than zero under PWYW condition. The findings of the study revealed that product involvement had a direct impact on consumers’ WTP. Further, the effect of product involvement on consumers’ WTP was found to be moderated by price consciousness. This moderation, however, took place for consumers with high internal reference price but not for consumers with low internal reference price. Managerial implications of the findings were discussed.

Rajat Roy, Fazlul K. Rabbanee

Factors Moderating Asymmetric Inter-Tier Competition: A Conceptual Examination using Price-Quality Tradeoff Framework

Much existing research has demonstrated the superiority of high-tier brands over low-tier brands in benefitting from price competition between the two tiers. This research expands our knowledge by examining the role of factors moderating this asymmetry in inter-tier competition. Using the conceptualization of price-quality tradeoffs from existing research, we derive several research propositions that explicate how these moderating factors define the boundary conditions of inter-brand competition. Theoretical contributions, managerial implications, and future research directions emanating from our research are highlighted.

K. Sivakumar

MARKETING IN ASIA: ADOPTION AND DECISION MAKING

Frontmatter

A New Viewpoint on the Structure of the Consideration Set and its Change

Many studies have examined the structure of the consideration set; however, few studies have been concentrated on its formation flow or change. Although Jarvis and Wilcox (1973) have stressed the importance of these factors, the actual data show that studies on these aspects of this important topic are seldom performed. The purpose of this study is, first, to provide a new viewpoint on the structure of the consideration set by examining the two factors—“size” and “grade of homogeneity”—through a review of the structure of the consideration set, and by providing data that confirms its usefulness. Next, by using this new approach, the role of the change in the structural patterns of the consideration set is shown. After classifying consumers according to the pattern change, the difference in contact media is compared and considered.The application of the new viewpoint revealed differences in consumers’ frequency and the intention of the use of contact media. In addition, significant differences were observed among different structure change patterns in contact media. A discussion and detailed results are described below.(1) Examining the structure of the consideration set according to “size” and “the grade of homogeneity” is useful, particularly because differences in structure are observed among consumers who experience contact with different media. Next, after consumers are classified according to the pattern change in type of the structure of the consideration set, the average value of the frequency of contact media and the intention of the use of some CGM (Consumer Generated Media) sites are compared between some classified groups. (2) “The consumers for whom neither structure nor brand changes” browse a homepage and a blog site more frequently than “the consumers for whom brands taken into consideration completely differ, though the structure did not change.” It is thought that consumers who have loyalty to a specific brand perform information contact positively in order to confirm their selection (c.f. Cherney 2003). (3) The intentions of the use of some CGM sites were higher for “those consumers for whom the grade of homogeneity and size changes” than for “consumers for whom brands taken into consideration completely differ, though structure does not change.” As pointed out by Howard and Sheth (1969), this is because the information search is positively related to the stage of the comprehensive decision-making—that is, the former consumers will tend to seek variety. This points out the usefulness of determining the differences in consumer behavior with changes in the structural pattern of the consideration set.

Naoki Akamatsu

How Confucius Influences Consumer’s View on Socially Responsible Corporations

This research discusses and extends a Confucius-based concept, junzi and its five virtues to explain how Asian consumers may evaluate the actions of a company from five dimensions (i.e., humaneness, righteousness, propriety, wisdom, and integrity). It develops a consumer-oriented measurement of junzi orientation in evaluating the actions of corporations. The result of a face-to-face survey conducted in Hong Kong (n=1,114) indicates consumer’s assessment of a corporation’s junzi orientation significant affects how they evaluate the corporate image of a corporation operating in a Chinese society. Our finding extends Miao’s (2004) insight on decision making into the consumer domain; that is, the junzi concept provides a culturally-rooted framework in Asian consumer’s purchase decision making process. Our finding also echoes Tian’s (2010) concern of whether the five virtues are equally important in the eyes of consumers. Our results suggest that among the five dimensions, humaneness (ren), propriety (li), and integrity (xin) are relatively more important in improving a company’s image. Our results on age group differences should also be insightful to marketers in developing segmentation, positioning, and CSR strategies in Asian markets.

Felix Tang, Vane-ing Tian, Alan Ching-biu Tse, Eric Chee

Impact of Culture on Indian Consumers: An Exploratory Study

Culture has always been a predominant determinant of consumer behaviour. Culture denotes the ways of living of people, beliefs, values, customs, institutions, languages, technology, art and is considered as the sum total of knowledge, belief, art, morals, custom, and other capabilities and habits acquired by man as a member of the society. India, being the land of diverse cultures nurtured over ages has noteworthy repercussion on the psyche of consumers and their buying behaviour. Today, India’s rising economic power is triggered by nearly 120 million consumers who form the strong “Middle Class or Consumer Class” of the country is supported by higher disposable incomes, low cost competitive workforce, investment friendly policies and progressive reform process. India with its rich cultural grounding and a fast growing economy, the study assumes great significance.The present study examines the level of impact of culture on the Indian consumers. The study follows the classification of cultural indicators, socio-cultural changes and its effect on buying habits of Indian consumers and grouping of cultural constituents into broad categories, suggests cultural indicators for strategy-making. It is seen that socio-cultural changes and its effect on buying habits of Indian consumers have led to a noticeable change in the lifestyle of people and consequently the buying behaviour of people in India, especially in the urban areas. The study demystifies myths prevailing about Indian populace and its predisposition towards markets and products. It also explores the connect between the socio-cultural power distance, collectivism, religion and lifestyle as important aspects of culture with the changing economic environment and its influence on consumer behaviour of people in India.The study observes that Tradition/ Social Norms/ Value Systems, Lifestyle, Group Influences, Economic Stability and Education have emerged as predominant variables in the cultural change in India having a direct bearing on the consumer behaviour in India. The study reveals India as a fast growing market with immense potential, but, unlike other markets, it is diverse in its socio-cultural aspects and has a profound influence on the way an average Indian leads his life. Business organizations, willing to operate successfully must take this uniqueness as an important factor for charting out their reaching out to its customers in India.

Taposh Ghoshal

Backmatter

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