Shaping online consumer choice by partitioning the Web

This research explores how partitioning attributes in online search interfaces changes the valuations of those attributes—and impacts subsequent choice—such that attributes that are displayed as separate categories tend to receive greater decision weight than attributes grouped under umbrella categories. Across several choice domains—cars, dates, and hotels—we show that different attribute partitions impact the importance assigned to attributes (Studies 1 and 2), as well as consumer choices (Studies 3 and 4). We argue that these effects are due in part to users' willingness to use the implicit recommendations of interface designers to determine the importance of attributes, a willingness that extends to following explicit recommendations of online agents based on those attributes (Study 5). © 2009 Wiley Periodicals, Inc.     

Managing Opportunism in China: The Roles of Guanxi,Environmental Uncertainty,and Management Culture

ABSTRACT

This cross-cultural comparison aims to understand whether the influence of consumer ethnocentrism (CE) on consumer preference for domestic versus foreign products is product category and country-of-origin dependent. Three countries with dissimilar cultural orientation and economic status—China, South Korea, and the United States—were examined. American consumers were found to be more ethnocentric than Chinese and South Korean consumers. CE was found to significantly and positively predict American and Korean consumers’ preference for domestic products across product categories, while Chinese consumers’ CE did not translate into their preference for Chinese products. In addition, the relationship between CE and purchase preference varied across product categories as well as countries of origin.     

Patterns of social reporting from an Islamic framework and the moral legitimacy factors that influence them

The objective of this study is twofold: to examine the patterns that govern social reporting with reference to an Islamic framework and to identify the moral legitimacy factors that influence them. We select 146 publicly listed Sharia‐compliant companies and classify the disclosures in their annual reports according to an Islamic framework that categorises items as either Required, Expected or Desired to indicate the degree of importance each item carries from an Islamic perspective. Based on this framework, we then analyse moral legitimacy factors, specifically the type of Sharia screening body and the proportion of Muslims in the population, that may influence the prioritisation of the different categories of social reporting. We find that disclosures that fall into the Required category of our framework—especially those that relate to companies’ involvement in “haram” activities (activities not permissible in Islam)—are still few among the companies studied. Our research also reveals that both moral legitimacy factors under investigation influence the three categories of social reporting, although in different ways. This research contributes to the existing literature by empirically examining how organisations prioritise their disclosure of virtues and the moral legitimacy factors that influence that prioritisation.     

Sharing contracts' marginalisation,adverse selection and markup calculation

This paper proposes a new approach to explain the dominance—in the Islamic banking market—of markup contracts at the expense of sharing ones. We show that the dual pricing practised in this market produces an additional—or artificial—dimension of adverse selection, which is causing the sharing contracts' marginalization. We suggest specialized use of two Islamic contractual categories as a device for eliminating artificial adverse selection. We suggest also an endogenous calculation of the markup, that is independent of the interest rate, based on the financing cost unification. This approach allows the deduction of default and liquidity risk premiums.     

Performance of domestic and foreign-invested enterprises in China

Despite increasing attention paid to China's enterprise reform since the late 1970s, relatively little is known about the performance of reformed state-owned enterprises (SOEs) and newly formed private firms vis-à-vis foreign firms in China. In this study, we examine the performance of domestic Chinese firms in various ownership categories versus foreign-invested enterprises (FIEs) based on two nation-wide surveys conducted by the National Bureau of Statistics in 1998 and 2002. We found that both domestic non-state-owned firms and foreign-invested enterprises performed better than state-owned enterprises. Meanwhile, three categories of Chinese firms—privately owned, collectively owned, and shareholding—had higher performance levels than the foreign-invested enterprises.     

Automated inference of product attributes and their importance from user-generated content: Can we replace traditional market research?

User-generated content, particularly online product reviews by customers, provide marketers with rich data of customer evaluations of product attributes. This study proposes, benchmarks, and validates a new approach for inferring attribute-level evaluations from user-generated content. Moreover, little is known about whether and when insights from product reviews gained in such a way are consistent with traditional research methods, such as conjoint analysis and satisfaction driver analysis. To provide first insights into this question, the authors apply their approach to a dataset with almost one million product reviews from 52 product categories and run conjoint and satisfaction driver analyses for these categories. Results indicate that the consistency between methods largely varies across product categories. Initial exploratory analyses suggest that consistency might be higher for categories characterized by low experience qualities, high hedonic value, and high customer willingness to post online reviews—but further work will be necessary to validate these findings.     

Profitability analysis for table-service restaurants

Here's how to calculate contribution margins for the three meal periods, for different menu categories, and for individual menu items—as well as for the operation as a whole. The procedure is a useful method for analyzing menu items and builds on the portfolio analysis inherent in other menu-analysis methods     

Tactical use of rewards to enhance loyalty program effectiveness

A key member benefit for participating in a loyalty program (LP) is the rewards earned for points accrued. One popular reward structure is a catalog of many diverse items. The rewards among this broad selection are likely to differ in their appeal due to their intrinsic differences and customer heterogeneity. Prior research has shown that after redeeming a reward, LP members are more motivated to increase their purchase volume/frequency and share-of-wallet within the program, thereby becoming more active. In this study, we fit a hidden Markov model to a 4½ year longitudinal data set of points accrual and reward redemption activity for about 4500 members of a large coalition LP. Our analysis reveals three latent states — active, hyperactive and inactive. We then investigate the likelihood of LP members transitioning between these states across successive time periods, and examine the reward categories and marketing effort associated with these transitions. Subsequently, we use our model to optimally promote particular reward categories to encourage LP member migration to managerially desirable states or prevent them sliding into a less desirable state. Our proposed optimal reward strategy potentially increases the estimated proportion of LP members in the hyperactive latent state from 35.7% to 40.1%, with a resultant increase in sales revenue for retailers and service providers in the LP of 7.7%. We find that rewards which are more fungible have the strongest influence on increasing points accrual activity.     

Health Care Matters: Supply Chains In and Of the Health Sector

Providing health care involves a complex enterprise, and the trade‐off between quality and cost has been particularly stark compared to other industries. However, a recent focus on health sector supply networks is now producing significant innovations and improvements. This Special Topic Forum illustrates for the academic and practitioner community how health care supply chain research can benefit from our evolving understanding of supply chains and help push that understanding even further. We classify health care supply chain research into two broad categories—supply chain in health care and supply chain of health care—to set an agenda for future research.     

A comparative study of the determinants of future plans and expectations of business students

Current university juniors and seniors have plans and expectations for after they graduate. In an effort to better understand these plans and expectations, the authors assessed a sample of 334 university students enrolled in business classes. The study examined the impact of three categories of independent variables—family influences, demographic influences, and academic influences—on the dependent variables of student degree aspirations, career aspirations, and expected salaries. Determinant variables with the most consistent influences on these dependent variables include birth order and parents' income (family influences); age and ethnicity (demographic influences); and grade point average, college entrance exam scores, and academic major (academic influences).     

Heed Our Advice: Exploring How Professionals Guide Small Business Owners in Start‐Up Entity Choice

There is little work on how attorneys and accountants evaluate new small businesses when giving advice. The focus of this paper is to gain a better understanding of those factors that are important in the practice of advising small business owners on entity choice. We utilize a policy‐capturing methodology to study how attorneys and accountants evaluate the likelihood they would advise a particular entity. Our results suggest that these two categories of advisers appear to prefer different factors when determining the form—a sole proprietorship, partnership, limited liability companies, or S corporation—small business should take.     

Rethinking international subsidy rules

Geo-economic tensions, notably associated with the rise of China, and global collective action problems—climate change and the COVID-19pandemic—call for international cooperation to revise and develop rules to guide both the use of domestic subsidies and responses by governments to cross-border competition spillover effects. Current WTO rules dividing all subsidies into prohibited or actionable categories are no longer fit for purpose. Piecemeal efforts in preferential trade agreements and bi- or trilateral configurations offer a basis on which to build but are too narrow in scope. Addressing spillover effects of subsidies could start with G20 countries launching a work programme to mobilise an epistemic community concerned with subsidy policies, tasked with building a more solid evidence base on the magnitude, purpose and effects of subsidy policies. The need for such cooperation has become even more pressing by the COVID-19 pandemic and associated increase in the use of subsidy programmes in major economies.     

National versus private brand: A regulatory focus perspective

Why do consumers choose a private versus national brand? A between-subjects factorial design was used to address this question in two product categories: shampoo and athletic shoes. Three determining factors were used—regulatory focus: promotion versus prevention; brand types: national versus private; and attribute framing: hedonic versus utilitarian—to predict consumer attitude towards the brand, its ad, and purchase intention. The results provide support for the interactions between regulatory focus and attribute framing for shampoo, and between regulatory focus and brand types for shoes. When exposed to shampoo ads, promotion focused consumers have a more positive attitude toward the ad and a higher purchase intention if the ad features utilitarian rather than hedonic attributes. Further, both promotion and prevention focused consumers prefer national brands of shoes to private labels. One possible explanation may lie in private versus public consumption of shampoo and shoes.     

Consistency and commonality in advertising content: Helping or Hurting?

Scholars and practitioners widely argue that strong, successful brands are built on consistent and unique positioning, which should be reflected in the brands’ advertising. Surprisingly, however, little empirical evidence supports this claim, especially with regard to advertising content. The authors investigate whether and to what extent brands’ advertising content consistency—the similarity in the firm’s own advertising content over time—and commonality—the similarity between the firm’s and competitors’ advertising content—affect brands’ sales. Insights emerge from the analysis of the impact on sales of the content of 247 television ads aired by 33 brands in six consumer packaged goods categories over a four-year period. Results indicate that more than advertising spending, both consistency and commonality in advertising content affect sales, especially with respect to long-term cumulative sales. However, brands differ considerably regarding the direction of the effects. While small brands tend to benefit from increased consistency and commonality in advertising content, large brands tend to suffer from increased consistency. Thus, whether consistency and commonality in advertising content will help or hurt depends on the size of the brand.     

Multiple-Category Decision-Making: Review and Synthesis

In many purchase environments, consumers use information from a number of product categories prior to making a decision. These purchase situations create dependencies in choice outcomes across categories. As such, these decision problems cannot be easily modeled using the single-category, single-choice paradigm commonly used by researchers in marketing. We outline a conceptual framework for categorization, and then discuss three types of cross-category dependence: cross-category consideration cross-category learning, and product bundling. We argue that the key to modeling choice dependence across categories is knowledge of the goals driving consumer behavior.     

Metaphors of hospitality organizations: An exploratory study

Metaphors are used by organizational members to characterize their employing firm and to filter their experiences in them. Metaphors thus become an important source of diagnostic information for management. This exploratory study surveyed a large number of hospitality workers to discover the metaphors they held about their employing organizations. Seven different categories were found, about a third reflecting the organizations' structure. Among the tentative findings were the prevalence of negative metaphors and that longer-term, male, and managerial employees were more likely to hold them—perhaps because of managerial concerns for control and predictability.     

Whose interests do hired top managers pursue? An examination of select mutual and stock life insurers

In this article theoretical and empirical explorations that have addressed the question, Whose interests do top managers pursue? are synthesized and grouped under two categories. Based on the review of the literature, three propositions are tested on two groups of organizations—mutual insurers and stock insurers. The results of the study lend support the premise that top executives do not necessarily act in the best interests of owners.     

Methodological Issues in Cross-Linguistic and Multilingual Advertising Research

This article discusses methodological issues related to language in advertising research. We introduce a framework that distinguishes between cross-linguistic research settings, where several languages are used in the study and different samples of respondents are studied in their own language, and multilingual research settings, where only a single language is used and multilingual respondents are studied either in their native or nonnative language. We review key principles that govern cross-linguistic and multilingual effects in advertising research to formulate guidelines for research design and data analysis. In the cross-linguistic context, these principles address nonuniform cross-linguistic differences in responses (related to nonequivalence of individual questionnaire items) versus uniform response effects (related to nonequivalence of verbal response category labels). In the multilingual context, we bring together evidence that shows how—even when comprehension is not a problem—stimuli, questions, and response categories may be processed differently in respondents' native versus nonnative language.     

Media influences on consumption trends: Effects of the film Food,Inc. on organic food sales in the U.S.

In this paper, we empirically investigate the effect of Food, Inc. – an influential documentary film on the US food industry – on organic food sales. We use a novel dataset of Google search volume to measure the influence of the film. Organic food sales are measured using store-level data for three categories in 33 major US markets. For two out of the three studied categories – yogurt and peanut butter – we find that areas with more Google searches for the film experienced a greater increase in the share of organic sales subsequent to the film's release. The effect of the film is more pronounced for the yogurt category, which is closer to the farm and more relevant to animal welfare — one of the key issues featured in the film. The effects are economically significant: ceteris paribus, a one standard deviation increase in our Google search stock measure translates into a 0.66% increase in organic market share for the yogurt and a 0.15% increase for the peanut butter category. In addition, we provide a measure of the decay of the film's effect by deriving the 90% duration interval of the focal search stock variable. We find that, for both categories, the film's effect on organic shares faded within six months.