The Effect of Consumer Persuasion Knowledge on Scarcity Appeal Persuasiveness

Past research identifies demand-related scarcity appeals and supply-related scarcity appeals as effective persuasive influences on consumer behavior. The present research uses a persuasion knowledge approach to examine the persuasiveness of demand- versus supply-related scarcity appeals in advertising messages. Study 1 shows that supply-related scarcity appeal ad messages are less likely to activate persuasion knowledge than demand-related scarcity appeal messages. Study 2 demonstrates that message specificity moderates this effect. In line with an elaboration likelihood model perspective, results show that stating the appeal in specific (versus vague) terms decreases the persuasiveness of supply-related scarcity appeal ad messages.     

Retail customers' self-awareness: The deindividuation effects of others

The presence of others often affects retail shopping behavior. Other customers tend to increase one's self-awareness and cause negative self-conscious emotions. This research's findings suggest fellow customers also mitigate focal customers' evaluative concerns. Deindividuation theory, which posits that other customers create anonymity and reduce self-awareness, helps explain this phenomenon. A laboratory experiment and a quasi-experimental field study in a retail setting support the notion that the presence of other customers creates a deindividuation effect on a focal customer during unwanted social evaluation from salespeople. Results show a small group of other customers resulted in lower levels of emotional discomfort and behavioral inhibition than either an empty store or a larger group size, suggesting a U shape relationship.     

How do consumers process digital display ads in-store? The effect of location,content, and goal relevance

This study examines under which circumstances customers are more likely to process in-store digital display ads. An exploratory field study is conducted (n = 296), with a between-subjects, 2 (value-expressive versus utilitarian messages) by 2 (entrance versus register location) by 2 (low versus high goal relevance) quasi-experimental design, in a retail store of horticulture-, baking- and pet supplies. The findings show that DS can appeal to both segments of customers when positioned in proximity to the register, rather than the entrance. In terms of the content displayed, there is no ‘one-size-fits-all’ approach as both types of content have different effects, depending on the shopping goal of the customer.     

Eye-tracking customers' visual attention in the wild: Dynamic gaze behavior moderates the effect of store familiarity on navigational fluency

A retail store is a multi-sensory environment filled with messages to tempt customers into making unplanned purchases. The purpose of this field study was to examine the interplay between three factors claimed to precede and influence unplanned purchases: store familiarity, visual attention, and navigational fluency (the subjective ease of navigating). Eye-tracking recordings and post-study questionnaires from 100 grocery store shoppers showed that store familiarity was positively associated with navigational fluency. However, customers' levels of dynamic gaze behavior (a frequent, widely distributed viewing pattern) moderated this effect. Dynamic gaze behavior significantly predicted navigational fluency among customers with low and moderate store familiarity, but not among customers familiar with the store. These findings challenge the formerly held assumption that store familiarity automatically implies navigational ease, and store unfamiliarity implies navigational difficulty. The results have implications for navigational aspects in stores.     

Do social media platforms develop consumer panic buying during the fear of Covid-19 pandemic

There is inadequate understanding of how social media can shape fear and consumer responses in the manner of consumer panic buying while Covid-19 is spreading across the world. Through taking a social constructionism position this research focused on what people think and feel at an individual and collective level on the role of social media to create panic behaviour. Data have been collected from thirty-four consumers who have minimum one active social media account. These participants are contacted through telephonic interview due to maintaining the social distancing. Findings reveal that uncertainties and insecurities proof, buying as persuasion, product unavailability proof, authorities' communication, global logic, and expert opinion are some of the causes on social media platforms that developed the situation of consumer panic buying during Covid-19 crises. Furthermore, the unprecedented level of real-time information on Covid-19 at users' fingertips can give them the tools they need to make smart decisions, but also make them more anxious about what is to come; experts say that may lead to panic buying or stockpiling of products. The study has tried to develop understanding about how social media generates social proof and offers a window into people's collective response to the coronavirus outbreak and shapes panic buying reaction. The study has provided a consumer panic buying theory based on the results of this study and on existing theories, such as global capitalism/information society risk society, social influence, and social proof. These theories help to understand how global logic is built due to the use of social media and how different social proofs are generated which developed the behaviour of consumer panic buying due to Covid-19 pandemic.     

Scarcity Appeals in Advertising: The Moderating Role of Expectation of Scarcity

Advertisers often use scarcity appeals to influence consumers, with announcements such as “hurry, limited quantities,” and “limit: two per customer.” Based on a persuasion knowledge framework, we show in three studies that the effect of scarcity appeals on product evaluation is moderated by consumers' expectation of scarcity, such that scarcity appeals have a positive effect when expectation of scarcity is high but not when it is low. We also show that this interaction effect holds for expectation of scarcity due to demand as well as supply, and that cognitive load constitutes a boundary condition for this effect. These findings contribute to the literature by identifying expectation of scarcity as a moderator, persuasion knowledge as a mechanism, and cognitive load as a boundary condition for the effect of scarcity appeals on product evaluation. From a managerial perspective, this research indicates that scarcity appeals are more effective when consumers have high compared to low expectations of scarcity; that activation of persuasion knowledge can eliminate the positive effect of scarcity appeals; and that cognitive load can reinstate the positive effect of scarcity appeals on product evaluation.     

When the customer has left the store: An examination of the potential for satisfaction rub-off effects and purchase versus no purchase implications

Two lacunae in the relationship marketing literature are examined in this paper: (1) effects of satisfaction stemming from one particular store visit on the customer׳s relation to other stores (the existing literature typically focuses on the customer׳s relation to one satisfaction-creating store), and (2) the extent to which the impact of customer satisfaction on future intentions is moderated by what happens during the satisfaction-creating visit in terms of purchase versus no purchase (the existing literature typically assumes that the customer subject to satisfaction has purchased something, despite the fact that the reality of retailing consists of many customers leaving stores without purchases).     

Aesthetic labor and visible diversity: The role in retailing service encounters

This study endeavors to investigate the role of the appearance of customer service staff in forming customer perceptions. It also aims to fill the gap in existing knowledge by exploring the notion of visible diversity, for example, ethnicity, age, gender and perceived sexual orientation of store staff in service encounter from the customers’ perspective. The study adopted a qualitative, inductive approach in data collection using a sample of 30 customers from leading Australian fashion retailers. This study identifies three themes explaining customer perceptions of staff's aesthetic labor, namely mirroring appearance, matching appearance, and charming appearance, which can be explained by the social identity theory, role theory and aesthetic capital. It is found that staff appearance might affect customers’ intention to revisit but does not guarantee sales. In addition, based on signaling theory, the results show that age, ethnicity, gender and perceived sexual orientation of the retail store staff are meaningful factors in determining customers’ attitudes and behavior. This study is one of the first that takes aspects of visible diversity into account along with aesthetic labor and customer experience in a retail setting.     

Building With Bricks and Mortar: The Revenue Impact of Opening Physical Stores in a Multichannel Environment

A crucial decision firms face today is which channels they should make available to customers for transactions. We assess the revenue impact of adding bricks-and-mortar stores to a firm's already existing repertoire of catalog and Internet channels. We decompose the revenue impact into customer acquisition, frequency of orders, returns, and exchanges, and size of orders, returns, and exchanges. We use a multivariate baseline method to assess the impact of adding the physical store channel on these revenue components. As hypothesized, store introduction cannibalizes catalog sales and has much less impact on Internet sales. Also as hypothesized, returns and exchanges increase. Interestingly, transaction sizes of purchases, returns, and exchanges do not change. The “availability effect” produces a net increase in purchase frequency across channels. This more than compensates for increased returns, producing a net increase in revenues of 20% by adding the store channel. Our findings yield a deeper understanding of the revenue relation between channels, and of the dynamic cross-channel effects of marketing actions.     

Timing customer reactivation initiatives

Firms operating in non-contractual settings apply customer reactivation initiatives such as email messages to stimulate customers who have become inactive temporarily or permanently to resume their transaction activities. Thus, firms need to know which customers are inactive, and when a customer becomes inactive. Existing approaches struggle to distinguish active from inactive customers and do not provide time-scale estimates of when to send reactivation mails. To address these shortcomings, we develop an approach to target and time the sending of reactivation mails. Building on control chart methods, we introduce a gamma–gamma control chart, modelling the average customer interpurchase time and the variation therein to determine activity boundaries. Crossing these boundaries signals a potential change in a customer’s purchasing activity, providing a signal to initiate customer reactivation. A field experiment in the greetings and gifts industry, supported by several additional analyses, illustrates the improved performance of our approach when it comes to signaling customer activity against a wide range of competing models. The improved performance of our method occurs particularly in settings where customers vary strongly in purchase and inactivity patterns.     

The effects of store brand loyalty on store loyalty: evidence from the Spanish market

This article studies the impact of retailers' store brands on store performance. Specifically, we analyze the extent to which store brands contribute to store loyalty. On the one hand, a positive relationship between customers' familiarity with and loyalty to the retailer's own brand and customers' loyalty to the retailer should result from the potential of the store brand to differentiate the retailer. On the other hand, an negative relationship between customers' familiarity with and loyalty to the retailer's own brand and customers' loyalty to the retailer may result from store brands' association with more price-sensitive customers, who have a higher propensity to buy at different stores that offer the best bargain. The empirical analysis, conducted with a sample of customers of leading retailers in the Spanish detergent market, shows no relationship between store brand loyalty and loyalty to the retailer. Although the purchase of store brands relates positively to higher loyalty to the retailer, this relationship deteriorates with the degree of exclusivity of store brands within the customer's shopping basket.     

Engaging the unengaged customer: The value of a retailer mobile app

Mobile apps are becoming a go-to tactic for retailers because they offer the promise of highly convenient digital engagement. We hypothesize that two types of customers are best served by these apps — “offline-only” customers currently purchasing exclusively from the retailer's physical store, and “distant” customers who reside far from the physical store. For offline-only customers, the app complements the physical engagement they currently have. For distant customers, the app offers convenient engagement their remoteness currently precludes. We model app access and purchase behavior of 629 customers who downloaded a retailer's app. We find that apps generate more incremental sales among distant customers compared to near customers, and more incremental sales among offline-only customers compared to online customers. On an illustrative base of 100 K app users, we find accessing the app would generate $2.3 M in incremental sales. Consistent with our segmentation results, we find that the users with the greatest purchase lift (9.5%) due to app usage are those that are distant and offline-only. Our results confirm the economic value of retailer apps and their role as a segmentation strategy to enhance customer engagement.     

Virtual reality as a promotion tool for small independent stores

Based on flow theory, we examined whether, compared to conventional online stores, 360-degree based virtual reality (VR) videos of a small independent store can enhance customers' store experience and their responses to the store through heightened flow state. Two types of stimuli creating different experiences were used for the experiments. The first stimulus type was a 360-degree VR video experience where respondents experienced the store of a small fashion retailer. The second was a website experience exploring the website of the same store. Results indicate that customers' VR experience (i.e., exploring the physical store in a VR setting), compared to website experience (i.e., exploring the same store's online store), enhanced their flow state, which, in turn, increased interest and visit intention toward the store. The findings suggest that 360-degree VR videos can be an effective customer acquisition tool for small retailers with limited resources because the software and hardware required to operate 360-degree VR videos are inexpensive and less complicated for small companies.     

Regulatory fit effects of gender and marketing message content

Many US adults do not get enough daily physical activity. To change behavior, governments and other agencies design marketing messages encouraging more physical activity. A lab experiment draws on Regulatory Focus Theory to examine health communication's persuasive effects on physical activity. This study identifies gender differences in chronic regulatory focus and shows that congruence between message regulatory focus and the message recipient's gender is effective, particularly for males. Results also show that emotions mediate regulatory fit effects on intentions. Further, chronic regulatory focus mediates these effects on emotions. Results inform implications for theory as well as for practitioners who design health-marketing messages.     

Effects of Prominence,Involvement, and Persuasion Knowledge on Children's Cognitive and Affective Responses to Advergames

The integrated and highly involving nature of advergames has led to criticism and concern among academics and caretakers. It is assumed that children are highly susceptible to persuasion via advergames, but empirical evidence is scarce. Therefore, this study examined the effects of three factors typically associated with advergames: brand prominence, game involvement, and (limited) persuasion knowledge on cognitive and affective responses. An experiment among 7 to 12 year old children (N = 105) showed that brand prominence and game involvement influenced children's responses, while persuasion knowledge did not. Brand prominence led to increased brand recall and recognition, whereas game involvement led to more positive brand attitudes. The effect of game involvement was mediated by game attitude, indicating that children are susceptible to affective mechanisms induced by the game. Crucially, our results demonstrate that brand prominence evokes cognitive responses, while game involvement leads to affective responses. Finally, our study revealed that persuasion knowledge (i.e. knowledge of the commercial source of the game and its persuasive intent) did not influence cognitive or affective responses to the brand or game. This implies that even if children understand the game's commercial and persuasive nature, they do not use this knowledge as a defense against the advergame's effects. This study has important theoretical and practical implications regarding the influence of new marketing techniques on children.     

The young and the reckless: Social and physical warning messages reduce dangerous driving behavior in a simulator

Road accidents are mostly avoidable and young males seem to be the group most prone to adopt dangerous driving behavior. Many efforts have been made to specifically target this group using two different kinds of warning messages: social and physical warnings. The relative effectiveness of these warning messages has never been compared directly, and their direct effectiveness has never been assessed in a realistic driving simulator to observe possible immediate changes in behavior while driving. Fifty young Israeli drivers (27 women) performed a driving task in a life-size driving simulator before and after watching either a physical or a social warning message. We compared the subject's driving behavior in terms of collisions, speed excesses, and non-compliance with traffic lights before and after watching the warning videos. We show that physical and social warning messages both had an immediate positive influence on reckless driving behavior in a realistic driving scenario, and that viewing the social video had a greater impact on men than on women. Our results indicate that both kinds of warning messages are effective in immediately reducing reckless driving behavior, but that publicity campaigns targeting specifically young males would benefit from developing social warning messages.     

Values associated with luxury brand consumption and the role of gender

We investigate the role of gender in the perceptions of and motives for luxury brand consumption. Based on the social structural theory of gender, we propose that differences in men's and women's luxury values result from asymmetries in social status. We conduct three studies with samples of frequent luxury brand buyers. Study 1 (N = 512) generates main values associated with luxury brand consumption. Study 2 (N = 640) identifies a four-factor model of luxury brand values, including refinement, heritage, exclusivity, and elitism, and shows that women give more importance to refinement, while men give more importance to exclusivity and elitism. Study 3 (N = 1024) demonstrates that public self-consciousness has a stronger positive influence on refinement for women rather than men. In contrast, consumer need for uniqueness and status consumption exert respectively a stronger positive influence on exclusivity and elitism for men rather than women.     

Customer pre-participatory social media drivers and their influence on attitudinal loyalty within the retail banking industry: A multi-group analysis utilizing social exchange theory

Social media pervades everyday life and firms need to understand what consumer traits antedate participation over these channels. Utilizing social exchange theory (SET), this study seeks to determine what factors precede SET's cost-benefit analysis of social media participation along with these factors' influence on attitudinal loyalty. Important antecedents to this cost-benefit analysis for social media participation are online interaction propensity (OIP), participation attitude and trust. Further, demographic (age, gender, income) and social media page factors (perceived page size and page visit frequency) are identified as potential precursors to customers' cost-benefit analysis towards social media participation. A sample of 482 U.S. banking customers was collected via an online survey. The results found that OIP and trust had direct statistically significant effects on attitudinal loyalty and participation attitude's effect was fully mediated by trust. Age, gender and page visit frequency facets exhibited no differences between groups whilst income (with higher income groups displaying higher levels of loyalty) and page size groups (smaller page sizes demonstrated greater loyalty) demonstrated differing effects on attitudinal loyalty. The study contributes to knowledge and practice by extending particular pre-SET traits in social media to a U.S. retail banking context. The study also furthers academic and managerial capabilities for segmentation analysis' and explicating connections between pre-participatory influences and attitudinal loyalty.     

Functional matching effect in CRM: Moderating roles of perceived message quality and skepticism

By applying the functional matching effect to the domain of cause-related marketing (CRM), this study examined the conditions under which the CRM message matching to attitude bases would elicit greater persuasion. In this study, a matched (or mismatched) CRM message is represented by the ad message featuring an argument that matches (or mismatches) consumers' primary motivation for purchasing the product supporting a social cause. Using a before-and-after experimental design, the perceived message quality and consumer skepticism about CRM practices were tested as moderators of the relationship between the functional matching of arguments and persuasion. This study assessed persuasion by measuring attitudes toward the CRM ad and the brand, and purchase intention. As expected, the functionally matched message appeared to generate greater persuasion when the argument was perceived to be strong. Additionally, low skeptics showed more favorable responses to the matched message compared to high skeptics. Theoretical and managerial implications were discussed to enhance the persuasiveness of CRM messages.