How different types of partners influence innovative product sales: Does technological capacity matter?

Extant empirical studies examine the effect of different types of partners on innovative product sales. Although these studies present ambiguous results, little research pays attention to the factors leading to this ambiguity. Therefore, this study investigates how technological capacity affects the relationships between different types of partners and innovative product sales. Based on a sample of manufacturing firms from the technological innovation survey, this study reveals several interesting results. First, for the sales from significantly improved products, technological capacity positively impacts on the links between the sales and collaborations with suppliers and also with customers, but negatively moderates with competitors and with research organization. Second, however, on the sales of marginally changed products, technological capacity negatively affects the collaboration with suppliers, but positively impacts on alliance with research organizations. These results increase understanding of the relationships between different types of partners and innovative product sales.     

Do myriad e-channels always create value for customers? A dynamic analysis of the perceived value of a digital information product during the usage phase

The academic literature generally asserts that omnichannel strategies create value throughout the customer journey based on the principle of synergy between channels. However, such strategies may appear complex to customers, notably when they face myriad e-channels that constitute all means of accessing the offer. Specifically, for digital information products, such as those of the press, digitalized content is now consumed through multiple e-channels. Our study aims to investigate the impact of e-channel combinations on the perceived value of a digital information product during the usage phase. We hypothesize that the similarity between the e-channels used by customers has a negative impact on the perceived value model. To test the research hypotheses, we conducted a longitudinal study of the readers of a digital version of an international newspaper. The results demonstrate that the similarity of e-channels impedes value creation. Our findings reintroduce a more ambivalent vision of the omnichannel strategy in a digital environment and provide insights into how managers should support customers by clarifying the usefulness of each e-channel proposed.     

Go green: how to influence the perceived effectiveness of a green product?

Across two studies, this research elucidates on which green messages in advertising are most effective in influencing the perceived effectiveness of green products by examining the moderating role of environmental consciousness. This study further considers a mechanism underlying the interaction between green messages and environmental consciousness on brand attitude with the perceived effectiveness of green products. The results show that when environmentally conscious individuals are exposed to abstract and distant temporal messages, they will report greater perceptions of a green product's effectiveness and brand attitude than for concrete and proximal temporal messages. In contrast, less environmentally conscious respondents will not have different responses to the abstract/concrete and distant/proximal temporal messages. Furthermore, the perceived effectiveness of a green product mediates the interaction between green messages and environmental consciousness for predicting brand attitudes. With an understanding of how environmentally conscious individuals evaluate green advertising, marketers can better understand how to promote their green products more effectively.     

Impact of trade openness on GDP growth: Does TFP matter?

ABSTRACT

The objective of this study is to empirically explore the impact of trade openness on GDP growth initiating with the idea that trade openness cannot be fully characterized through the different openness measures only, we propose to account for total factor productivity (TFP) development level as an additional dimension of countries’ trade integration. Our empirical application is based on 35 years’ balanced panel of 82 countries spanning 1980–2014. To address the potential endogeneity issue, we use the system GMM estimator developed for dynamic panel data models. The results outline that there exists an interesting non-linear pattern between trade openness and GDP growth when TFP development level is taken as an intervening variable into account: trade may have a negative impact on GDP growth when countries have specialized in low-TFP development level; trade openness clearly boosts GDP growth once countries exhibit a minimum threshold of TFP development level. Therefore, there is some pattern of complementarity between trade openness and TFP development level so that the higher the TFP development level, the higher the impact of the trade openness on GDP growth.     

Similar or contrastive? Impact of product–background color combination on consumers' product evaluations

Based on arousal theory, this study explores the impact of product–background color combination on consumers' product evaluations through four empirical analysis. As predicted, the interaction of product–background color combinations and product types has a significant influence on consumers' product evaluations. For functional products, the product–background similar color combination can cause consumers' higher product evaluations. However, for sensory-social products, the product–background contrastive color combination can cause consumers' higher product evaluations. Moreover, the arousal level mediates the interaction effect of product–background color combinations and product types on consumers' evaluations. This research also demonstrates that only when the product color matches product type, the interaction of product–background color combinations and product types can improve consumers' product evaluations through increasing (decreasing) the arousal level, however, the interaction effect is no longer significant when the matching degree of product color and product type is low. We contribute to the visual marketing research by providing new insights and useful implications for using color clues to present products in marketing practice.     

The Impact of the Multi-channel Retail Mix on Online Store Choice: Does Online Experience Matter?

More and more grocery retailers are becoming multi-channel retailers, as they are opening an online alternative next to their traditional offline supermarkets. While the number of multi-channel grocery shoppers is also expanding at a fast growth rate, there are still large differences in online shopping frequency, and as a result, in the levels of experience with buying in the online grocery channel. This study wants to (i) identify the underlying drivers of online store choice and (ii) explore if and how these drivers change when multi-channel shoppers gain online grocery shopping experience. We investigate this question with an online store choice model using purchase data of an extensive UK household panel over a two-year period, covering all multi-channel retailers in the grocery market. Our results show that multi-channel shoppers, at the start of online grocery shopping, tend to select the online store belonging to the same chain as their preferred offline store, especially when the online store is strongly integrated with the offline store in terms of assortment. When online grocery shopping experience increases, multi-channel shoppers’ focus shifts from a comparison within a chain across channels to a comparison across chains within the online channel, resulting in an increasing importance of online assortment attractiveness and online loyalty when choosing an online store.     

The effects of eWOM volume and valence on product sales – an empirical examination of the movie industry

The present research examines how quantitative and qualitative aspects – volume and valence – of eWOM on various social media platforms in the movie industry, along with other forms of marketing communications (e.g. advertising expenditure), predict box office and DVD sales for pre- and post-periods of movie releases. The analysis of aggregated big data from multiple sources – 65,665,859 social media postings from blogs, forums, news, and Twitter, Nielsen’s ad expenditure data, and Rotten Tomatoes ratings for 170 movies—revealed that the explanatory power of the model for box office revenue and DVD sales mostly comes from the volume, rather than valence, of eWOM.     

Looking at the brain: Neural effects of “made in” labeling on product value and choice

International business research posits that, under certain circumstances, consumers prefer goods manufactured in their own country regardless of their country of origin image. Yet the psychological origin of such Domestic bias remains unknown. This study presents a neuroimaging experiment developed in Spain. The task combined low and high involvement goods marked with Domestic “Made in Spain” and Foreign “Made in USA” (similar culture) and “Made in China” (different culture) labels. The findings reveal that Domestic goods always convey neural rewarding sensations. Neural aversive biases toward Foreign goods occur only when the products are culturally different and high involvement. These findings help improve business retailing strategies.     

The influence of corporate social responsibility appeals (CSRAs) on product sales: Which appeal types perform better?

This paper examines product-package Corporate Social Responsibility (CSR) messages called Corporate Social Responsibility Appeals (CSRAs) that directly convey CSR messages to shoppers on product packages. Using a multi-source dataset of more than 10 million transactions from a large grocery chain, this paper first presents a typology consisting of seven CSRA types that provide buyers functional or symbolic benefits and examines their effects on product sales. Second, the paper presents the analysis of the moderating effects of store-generated promotions (price promotions and feature advertisements) and product types (virtue and vice) on the effects of functional and symbolic CSRAs and seven CSRAs on weekly sales. Results show that functional CSRAs perform better than symbolic CSRAs and that price promotions strengthen the sales of functional CSRAs. Featured advertising was also found to positively influence the sales of Functional CSRAs, but is found to have no impact on Symbolic CSRAs. Finally, the results show that Functional CSRAs are a better strategy for virtue products than Symbolic CSRAs. This paper concludes with managerial implications, theoretical contributions, and additional findings regarding price elasticity, sales trajectory, and sales performance across product categories.     

Do tech products have a beauty premium? The effect of visual aesthetics of wearables on willingness-to-pay premium and the role of product category involvement

Does design, not technology, affect consumers' valuation of wearable devices? This study empirically examines the impact of the visual product aesthetics of wearables on consumers’ willingness-to-pay (WTP) premium, along with the relevant intervening consumer psychology of perceived benefits. The results of an online survey revealed a significant and positive association between the visual product aesthetics of wearables and WTP, perceived product quality (PQ), and perceived enjoyment (PE) of wearables. In addition, PE mediated the relation between visual aesthetics and WTP, while PQ did not. Meanwhile, consumer involvement moderated the relation between visual aesthetics and WTP. Implications and limitations were discussed.     

How close do we feel to virtual product to make a purchase decision? Impact of perceived proximity to virtual product and temporal purchase intention

This study, utilizing construal level theory, aims to understand the underlying effect of perceived proximity to a virtual product on perceived purchase intention in the near future through perceived measurement feedback and perceived generality. This research examines a lab experiment to test six hypotheses. Results indicate that perceived proximity to virtual products enhances perceived measurement feedback and, thereby, perceived generality. In addition, perceived generality fully mediates the effect of perceived measurement feedback on perceived purchase intention in the near future when consumers interact with non-augmented reality applications. In contrast, perceived measurement feedback directly influences perceived purchase intention in the near future in AR applications. Furthermore, the absence of product in consumers’ consideration set dilutes the effect of perceived generality on perceived purchase intention in the near future when consumers interact with non-augmented reality application. This study suggests several managerial implications for AR developers and online retail managers.     

Does customer sex influence the relationship between perceived quality and share of wallet?

This study examines the within and between sex differences on the relative importances of merchandise quality and interaction quality as drivers of behavioral loyalty (share of wallet). A sample of customers of a national retail chain serves as the study setting. The results indicate that for female customers, interaction quality and merchandise quality have equally strong total influence on share of wallet. For male customers, the total effect of merchandise quality on share of wallet is significantly stronger than the total effect of interaction quality. Across sex comparisons reveal that the total effect of interaction quality on share of wallet is stronger for female customers. However, merchandise quality exerts a stronger total influence on share of wallet for male customers. Implications of the results are discussed and avenues for future research are offered.     

Does Psychological Contract Violation Moderate the Impact of Severity and Recovery Satisfaction on Boycott? An Analysis of Halal Violation

Halal violation is a critical issue in the Islamic market, but little is known on its impact on the Muslim consumer. Thus, this study investigates the effect of psychological contract violation (PCV), recovery satisfaction, and severity of halal violation on product boycott. The moderating role of PCV in the relationship between recovery satisfaction and seriousness of a violation on the product boycott is also examined. Data collected from a sample of 360 customers were analyzed using PLS-SEM. The results show that recovery satisfaction, severity, and PCV significantly influence product boycott and PCV significantly moderates the relationship between recovery satisfaction and product boycott. This study provides new insights into the relationships among recovery satisfaction, the severity of the halal violation, psychological contract violation, and product boycott and helps the managers to design recovery action toward halal violation.     

The extension of animosity model of foreign product purchase: Does country of origin matter?

Although a growing literature has investigated how animosity and consumer ethnocentrism change customers’ perceptions of foreign products in developed markets, research examining these effects in developing markets is scarce. Additionally, the role of country of origin on such effects has received far less attention. The current paper is developed to bridge these gaps. The primary objectives of this paper are to examine whether the animosity and consumer ethnocentrism models that work in the Western world could be applied into a developing market like Vietnam, and whether these relationships are moderated by country of origin (USA versus China). Data from 485 Vietnamese customers illustrate that most of the main effects are significant except for the relationship between ethnocentrism and product judgement, and the relationship between cosmopolitanism and willingness to buy. Furthermore, out of the three moderation effects, the influence of country of origin on the relationship between ethnocentrism and willingness to buy is significant. The paper concludes with theoretical and managerial implications, limitations, and future research.     

Does shape in backgrounds matter? Effects of Shape–Taste congruence on product evaluations

While previous studies have examined the correspondence between shape and taste perceptions, the effects of shape–taste congruence on product evaluations remained underexplored. This research investigates whether and when shape–taste congruence in product display background can increase product evaluations. Study 1 shows that shape–taste congruence can intensify product evaluations. Study 2 shows that feelings of pleasantness work as a mediator between shape–taste congruence and product evaluations. Study 3 shows that consumers’ design sensitivity moderates the relationship between shape–taste congruence and product evaluations. Our results shed light into shape–taste perception and product display strategy, thus helping marketers and retailers to customize their brand strategy to communicate more effectively to customers.     

Does the origin of a succession CEO matter in the market value of innovation? Disentangling the origin of internal CEOs

This study complements previous research regarding CEO origin and family businesses by incorporating upper echelons theory with the perspective of family effect as well as disentangling CEO origin to provide a better understanding of how external, unrelated internal, and family succession CEOs affect innovation performance. We further reveal how a family founder helps improve the value of innovations undertaken by family heirs. The results show that firms with unrelated internal succession CEOs experience higher (lower) stock market reactions to innovation announcements than those with family (external) succession CEOs. Founders serving on the board reduce the negative effect between family heirs and innovation performance. Copyright © 2016 ASAC. Published by John Wiley & Sons, Ltd.     

Synergy between R&D and advertising on shareholder value: Does firm size matter?

Using the hierarchical linear model, we examine whether R&D and advertising and their synergy influence firm value. We also investigate whether firm size moderates the market value effects of R&D, advertising, and the synergistic effect of R&D and advertising on firm value. We find that R&D and the synergy between R&D and advertising have significant positive effects on shareholder value. Moreover, we find that the effects of R&D and advertising are significantly higher in large firms than small firms, while the synergistic effect is significantly positive in small firms but not in large firms. These results offer important insight for executives on the implications of resource allocation on R&D and advertising expenditures to create firm value. Copyright © 2016 ASAC. Published by John Wiley & Sons, Ltd.     

Longing for the past and embracing the new: Does nostalgia increase new product adoption?

Existing research has mostly focused on the salutary impact of nostalgia on nostalgia-related products (e.g., childhood products, classic brands). The current research examines whether this effect can extend to nostalgia-unrelated products: new products. We demonstrate that nostalgia fosters social support, which in turn encourages consumers to adopt new products, and this effect is weakened when individuals have independent self-construal. Three studies provide support for these predictions. Study 1 revealed that nostalgia increases new product adoption. Study 2 demonstrated that this positive effect of nostalgia on new product adoption is mediated by social support. Study 3 showed that this salutary effect occurs only when consumers’ interdependent self is activated. The marketing implications of these findings are discussed.

     

Advertising’s sequence of effects on consumer mindset and sales: A comparison across brands and product categories

Advertising has the power to influence how consumers experience, think, and feel about brands, but the sequence of these mindset effects may differ by brand and category. This paper analyzes how the mindset factors of cognition, affect, and experience mediate advertising effects on sales, using data from 178 fast-moving consumer good brands in 18 categories over seven years. The authors compare the models proposed in the literature and conclude that the concept of sequentiality in advertising effects holds up well. Importantly, the sequence varies across brands, with the affect → cognition → experience (ACE) sequence being the most common. Brand differentiation and the hedonic versus utilitarian nature of the product category moderate the incidence of the ACE sequence: this sequence is even more likely for utilitarian products and less differentiated brands. For managers, the results show that the last mindset factor in the sequence is the most important in driving sales, with cognition being most responsive to advertising among the mindset factors. Moreover, in utilitarian categories, highly differentiated brands can expect about seven times higher advertising responsiveness of affect than less differentiated brands.     

Investment in online advertising and return on sales: Does it pay to outsource the services to an advertising agency?

Abstract

The effect of investing in online advertising on a firm’s financial outcomes can depend on whether or not the development and implementation of advertising campaigns are managed by advertising agencies. Agencies may have experienced professionals or workload to perform these jobs, but the costs are greater. This paper aims to investigate the effects of investments in digital marketing on the financial outcome of a company’s services, comparing whether or not it is outsourced to advertising agencies. The secondary data relates to services advertised and marketed by a firm. We tested the possible moderating effect of outsourcing the service in the relationship between investment in online advertising (Google and Facebook) and return on sales (profit margin), by controlling the effect of covariates. Through four regression analyses, the results showed that outsourcing the service moderates the relationship. Specifically, the higher the amount of advertising investment, the more it pays to outsource the service to an advertising agency in order to generate greater profit margin. But with a low investment value, it does not pay to outsource. This study helps to identify situations in which it pays to outsource digital marketing services to an advertising agency.