Corporate Transparency and Green Management

How can firms support their customers’ collaborative, social responsibility initiatives – and especially pro-environmental, firm–customer collaborations? Does corporate transparency affect customers’ willingness to undertake pro-environmental collaborative programs? This study addresses these questions in relation to the US residential electricity market. It focuses on the impact of customers’ perceptions of the utility’s degree of transparency and on the willingness to engage in pro-environmental behavior (PEB) related to electricity consumption. The responses of 1257 interviewees from US households to questions related to their electricity suppliers are analyzed through structural equation models (SEMs) using latent variables. Results show that customers’ perceptions of an electricity utility’s transparency affect their willingness to collaborate in environmental programs, and that the degree of perceived transparency of the utility is related to customers’ environmental awareness.     

Perceived Organizational Motives and Consumer Responses to Proactive and Reactive CSR

Corporate social responsibility (CSR) has emerged as an effective way for firms to create favorable attitudes among consumers. Although prior research has addressed the direct influence of proactive and reactive CSR on consumer responses, this research hypothesized that consumers’ perceived organizational motives (i.e., attributions) will mediate this relationship. It was also hypothesized that the source of information and location of CSR initiative will affect the motives consumers assign to a firms’ engagement in the initiative. Two experiments were conducted to test these hypotheses. The results of Study 1 indicate that the nature of a CSR initiative influences consumer attribution effects and that these attributions act as mediators in helping to explain consumers’ responses to CSR. Study 2 suggests that the source of the CSR message moderates the effect of CSR on consumer attributions. The mediating influence of the attributions as well as the importance of information source suggests that proper communication of CSR can be a viable way to inculcate positive corporate associations and purchase intentions.     

Role of downward versus upward social comparison in service recovery: Testing a mediated moderation model with two empirical studies

This paper extends prior research into the role of social comparison in service recovery by investigating the role of both downward and upward social comparison. Social comparison theory and attribution theory are applied to explore the differences in how upward and downward inter-customer comparison affects post-recovery satisfaction and word-of-mouth intentions. The mediating role of distributive justice perceptions and the moderating effects of the attribution of inter-customer differences in service recovery and customers’ justice sensitivity are also examined. Two online scenario-based experimental studies show that downward social comparison leads to greater satisfaction and lower negative word-of-mouth intentions. In addition, distributive justice mediates the relationship. Finally, attribution of difference in inter-customer influence and individual-level justice sensitivity moderate these effects. Besides its conceptual contributions, the findings from this paper may help managers design more effective service recovery strategies.     

Comparison of localized and foreign restaurant brands for consumer behavior prediction

This study used two comparison studies to examine the potential brand perception of localized and foreign restaurants to predict consumer behavior. A total of 680 participants (e.g., 318 foreign restaurant customers and 362 localized restaurant customers) were included to discover and confirm the causal relationships among the quality of food and meals, environmental evaluation, willingness to pay more, and recommendations. Our study of foreign restaurant brands (Study 1) found that food and meals may indirectly affect the willingness to pay more and recommendations through providing a friendly environment. The destination's moderating role is also confirmed. Additionally, our study of localized restaurant customers (Study 2) identified the mediating roles of risk evaluation and willingness to pay more, which link the relationship between food and meals and recommendation behavior. Furthermore, destination trust was found to strengthen the relationship between risk evaluation and willingness to pay more.     

Customer perceived value,satisfaction, and loyalty: the role of willingness to share information

This study proposes and tests an integrative model to examine the relationships among customers’ willingness to share information, satisfaction, perceived value, and loyalty in a retailing context. This study extends research on customers’ willingness to share information from trust and privacy concerns toward key outcome measures such as perceived value, customer satisfaction, and loyalty, and is thus among the first to model customers’ willingness to share information with companies in robust theoretical retailing frameworks. The proposed relationships were tested using data from two retailing contexts – groceries (N = 429) and do-it-yourself (DIY) (N = 895). Findings from the two samples suggest that both perceived value and satisfaction are significant determinants of customers’ willingness to share information with a company. Although some differences emerge in the two studies, structural modeling largely supports the hypothesized framework and positions customers’ willingness to share information as an important antecedent of their loyalty intentions and behavior. This study provides practitioners with preliminary insight into the relationship between willingness to share information and perceived value, customer satisfaction, and customer loyalty. This study advances retailing research, as it is one of the few empirical studies investigating the role of customers’ willingness to share information in driving loyalty and its relationship with perceived value and satisfaction in a retailing context.     

The Cognitive Side of Social Responsibility

Individuals sit on the board of directors and set organizational goals, individuals make the product, push new marketing campaigns, make tough decisions, create new products, and so on. What is the role of social responsibility (SR) in their thinking? Do individuals need to behave responsibly to live in a social environment? Could this be grounded in their cognition? Furthermore, is there room for SR in our cognitive processes? And then, how can this analysis help studies on socially responsible business? The article presents how the distributed cognition approach provides a viable explanation for SR in human thinking. The exploitation of external – both social and nonsocial – resources shapes cognitive processes such that the idea of the “isolated brain” is definitely abandoned. Our social cognition uses responsibility as a support mechanism that sustains or discharges distributive processes. The article uses the notion of docility to keep cognition and social behavior together. The conclusion is that SR is (1) a mechanism that allows individuals to maintain cognitive advantages and (2) it emerges when the same social channel is exploited for extended periods of time.     

The reward gap in hierarchical loyalty programmes: how to enhance bottom-tier customers’ loyalty without alienating top-tier customers

ABSTRACT

Reward gap is the difference in the number and nature of rewards allocated to specific customer groups (or tiers) in a hierarchical loyalty programme. Building on the social comparison, equity and attribution theories, and two experiments conducted in a retailing context, we investigate the effect of reward gap size and visibility on both bottom-tier (BT) and top-tier (TT) customers. Findings from Study 1 show that a large reward gap reduces loyalty to the programme in BT customers, while it enhances it in TT customers. These effects are mediated by perceived fairness and perceived control. Findings from Study 2 show that a non-visible large reward gap increases loyalty to the programme in BT customers without affecting it in TT customers. This effect is mediated only by perceived fairness. Altogether, the findings highlight the mechanisms that explain the effect of the reward gap on BT and TT customers’ loyalty to the programme.     

Determinants and Performance Effects of Social Performance Measurement Systems

This study investigates the performance measurement systems adopted by companies to manage their social responsibility activities, a theme that remains under-researched despite the important role that these mechanisms may play in helping firms control and improve their social performance. An integrative model is developed to examine how the three fundamental drivers of corporate social strategies, i.e., business motivations, perceived stakeholder pressures, and top management’s social commitment, influence the use of social performance indicators for internal decision-making and control and how such use impacts companies’ social and economic performance. The results from a survey of 97 Italian companies suggest that economic motivations and top management’s commitment are associated with a more intensive use of social performance indicators for decision-making and control, whereas perceived pressures from stakeholders do not represent a significant determinant of such use. The use of social performance indicators, in turn, is found to directly influence a firm’s social performance and, indirectly, its bottom line.     

Predicting customers’ intentions to check in on Facebook while patronizing hospitality firms

Within the last decade, the introduction of Web 2.0 has created many opportunities for hospitality organizations. Facebook has become one of the most influential and powerful social media platforms. However, limited efforts have been made to explore customers’ intentions to check in on Facebook while visiting hospitality companies. Based on motivation theory, this study developed a research model containing two main categories of variables: (1) extrinsic factors (i.e. social influence, external rewards, and Cyber community utility) and (2) intrinsic factors (i.e. presenting oneself, perceived enjoyment, and altruism), and suggested that these potential variables can directly influence customers’ behavioral intention to check in. Data collected from 490 respondents in Taiwan were tested against the research model using the structural equation modeling approach. The results indicated that all the proposed variables (i.e. social influence, external rewards, Cyber community utility, presenting oneself, perceived enjoyment, and altruism) were the critical components significantly influencing online customers’ intention to check in on Facebook; the proposed model accounted for 70.7 % of the variance. The findings of this study will not only help hospitality and tourism practitioners in understanding the perceptions of potential customers, but also provide insights into research on technology’s influence on hospitality.     

Does emotional labor moderate customer participation and buying?

Two studies examined whether employees’ emotional labor as perceived by customers, moderates the relationship between customers’ participation and money spent. In Study I, 30 in-depth interviews were conducted with customers to examine participation during shopping as well as customers’ awareness of their service employees’ behaviors. The interviews revealed two types of customer participation: emotional engagement and physical effort. Based on Study I, Study II investigated 114 customers, and the moderating role of perceived employees’ emotional labor on the relationships between customer participation and spending money. Even when customers were highly involved in the purchasing process, they spent less money when they observed employee inauthenticity as manifested in Surface Acting. However, Deep Acting positively moderated the relationship between customer participation and spending money. These findings help shed light on the circumstances in which customer participation is strengthened (leading to greater spending) or weakened.     

Identifying the critical factors of customer behavior: An integration perspective of marketing strategy and components of attitudes

The purpose of this empirical study is to operationalize the relationship of green marketing's influence on consumer attitudes via the mediating role of marketing mix towards green products to validate the proposed research model in the Taiwanese context of explaining consumers' willingness to be environmentally friendly. The model is based on structural equation modeling (SEM) from data collected from 977 online consumers. The findings revealed that green consumption intention was significantly and indirectly driven by attitude to green products. Additionally, the effect of perceived quality on marketing mix and consumer willingness in environmental concern is both significant and positive. However, when a restaurant has high consumer social responsibility (CnSR) for marketing mix, the consumer attitudes of cognitive, affective, and behavioral model (C-A-B model) is less effective. These findings have contributed to the revival of the theory of planned behavior (TPB) and offer a comprehensive understanding of consumer attitude, consumer social responsibility, marketing mix and perceived quality impact that a restaurant has on the ability to raise consumer willingness to purchase green products or food. We provides valuable suggestions to marketers to design from the perspective of green marketing policies and strategies in order to accommodate Taiwan's indigenous green restaurants.     

Triadic relationship between customers,service providers and government in a highly regulated industry

This study investigates the triadic interplay among the government, service providers and customers in a highly regulated environment in a centrally planned economy influenced by communist political ideology. In order to answer the research question, we conducted two studies: Study 1 is a qualitative study aiming at exploring various aspects of the triadic interplay among customers, service providers and the regulatory framework, and Study 2 employed a quantitative approach to validate some findings in Study 1. It was found that the relationships between the three main entities in the market were not balanced. Service providers were more passive in their relationship with regulators. In addition, communications between customers and regulators were limited and not well-established. Customers had not been sufficiently engaged and thus, had little voice in the formulation of regulations. Furthermore, the perception of a firm's service quality and innovativeness was different among customers with different levels of perceived regulatory control and regulatory knowledge. As regulatory control and knowledge increased, customers were more likely to perceive a higher level of service quality and innovativeness. The research extends the domain of relationship marketing by incorporating the influence of the government or regulatory framework in the relationship between customers and service providers. The findings of this study can provide practical insights for policymakers and help service providers to effectively manage the relationships with their customers and regulatory bodies.     

Locally Sourced Restaurant: Consumers Willingness to Pay

This study tested (1) the theory of planned behavior to identify factors influencing customers’ willingness to pay more when visiting a locally sourced restaurant, and (2) assesses the effect of health consciousness and community attachment on willingness to pay more through attitude, subjective norms, and perceived behavioral control in visiting a locally sourced restaurant. A total of 423 responses were analyzed using a two-step approach of structural equation modeling. The findings indicated that health consciousness and community attachment positively influences attitude, subjective norm, and perceived behavioral control in visiting a locally sourced restaurant, which ultimately influence willingness to pay more.     

Distinguishing between the impact of social media public and private compliments on customers’ future service recovery expectations

We seek to explore whether customers’ levels of service recovery expectations differ across customers who, prior to the service failure, publicly complimented the firm on social media and customers who, in advance of the service failure, privately complimented the firm on social media. We explore these differences in terms of satisfaction with the service provider and willingness to go back to the service provider. We conduct an experiment to test the research hypotheses. Our study results show that customers who complimented the service provider publicly (relative to privately) on social media in advance of a service failure require a higher level of service recovery to be satisfied with the service provider and go back to the service provider. Further, these effects are partly moderated by customer loyalty and social media usage intensity.     

Organic food corporate image and customer co-developing behavior: The mediating role of consumer trust and purchase intention

The impact of organic food corporate image on customers' surpassing purchasing behavior is absent in prior literature. Based on the S–O-R framework, the current study focuses on organic food member customers to explore the influence of corporate ability (CA) image and corporate social responsibility (CSR) image of organic food company on the consumption behavior and co-developing behavior of customers. The consumer samples came from 269 member customers of an organic food enterprise in southwest China. The results show that organic food company CA and CSR image positively affect consumer trust and co-developing behavior. CSR image enhances consumer trust and co-developing behavior than CA image does. Additionally, consumer trust and purchase intention play a multi-step mediating role in the relationship between corporate image (CA and CSR) and consumers' co-developing behavior. In conclusion, our findings provide new insights for understanding the relationship between the corporate image of organic food and the co-developing behavior of customers. The research results provide support for organic food companies that can effectively promote consumer trust, continuous purchase, and active engagement in the co-development of products and services by creating an image of ability and social responsibility.     

The Value of Environmental Social Responsibility to Facility Managers: Revealing the Perceptions and Motives for Adopting ESR

This study is grounded in the debate surrounding the perceived value of environmental social responsibility (ESR). Applying the Managerial Theory of the Firm, in-depth interviews were conducted to identify managerial motives, perceptions, and perceived value of ESR. Using sport and public assembly facilities as the research context, environmentally responsible information was obtained from facility managers who were members of the International Association of Venue Managers. In total, 15 one-hour, interviews with key facility personnel demonstrate that (1) internal stakeholder pressure, (2) organizational culture, (3) financial cost-benefit, (4) competitiveness, and (5) ethical motives were the drivers for ESR engagement. Taken together, the findings suggest that establishing a culture of ESR, the ??business case?? for environmental responsibility, and ethical concerns offered the most value for the sport and public assembly facility managers.     

The role of self-service technologies in restoring justice

As an increasing number of customers choose to interact with service firms via technology, there is an urgent need to understand whether consumers react differently to technology-based failures/recovery efforts than human failures/recovery efforts. Using resource exchange theory as a framework, the present investigation examined the role of failure mode (SST vs. face-to-face encounter) and recovery mode on customers' fairness perceptions. Results from Study 1 suggest that compensation offered by a front-line employee might be more effective in restoring justice with traditional failures (match condition) than with SST failures (mismatch condition). Findings from Study 2 further support the matching hypothesis in terms of distributive justice. On the other hand, human touch seems more effective in restoring interactional fairness than on-line recovery. The follow-up study extends the matching hypothesis to satisfaction with problem handling and repurchase intent. Managerial implications of these findings are discussed.     

All eyes on you: The social audience and hedonic adaptation

Marketers have a keen interest in keeping customers happy past the point of product acquisition. However, consumer happiness with products typically declines over time, a process called “hedonic adaptation.” Understanding this process is essential for managing consumers' post-acquisition experiences, and yet marketers have not explored how the ubiquitous social environment influences hedonic adaptation. We explore the effect of a social audience (i.e., the presence of others and the perception that those others are noticing you) on adaptation to positive products using two real-world studies and one lab study. We show that a social audience can slow hedonic adaptation by cuing consumers to believe that others are admiring their product. This perceived admiration, in turn, helps consumers see the product through fresh, unadapted eyes. These findings help clarify the role of the consumption environment in adaptation, help explain why product happiness can vary by consumer over time, and show that the effects of social forces do not always occur at the moment of product acquisition.     

Does environmentally responsible purchase intention matter for consumers? A predictive sustainable model developed through an empirical study

Rapidly increasing demand for eco-friendly products is an example of responsible purchasing intention of customers. That responsible behaviour forces businesses not only to understand their responsible purchase intention, but also helps them to sustainability in the market for the long term. In this regard, very little discussion is available in current literature, especially in the context of apparel product consumption. Therefore, to contribute to literature in this field, this work aims to build a predictive sustainable model through an empirical study to examine the relationships among different factors such as attitude, social norms, perceived behaviour control, environmental consciousness, willingness to pay (WTP) premium and consumer purchase intention for environmentally friendly apparels. The data of two hundred and thirty-two respondents were analysed by structural equation modelling (SEM). With the help of the findings, it can be concluded that Indian consumers are aware of green apparels, have a positive attitude to them and show a responsible purchase intention to protect the environment. This is in contrast to the old saying that Indians are price sensitive given the emergence of higher WTP premiums for green apparel products. Other factors such as subjective norms, perceived behaviour control and environmental consciousness are also positively affecting consumer purchase intention. From the study findings, retail managers can benefit through more focused strategies for environmental protection to make a reduction in apparel material while educating their consumers about green apparel.