First-time buyers' subjective knowledge and the attribute preferences of Chinese car buyers

This research focuses on the subjective knowledge of first time buyers (FTBs hereafter) and how it influences their preference attributes in a market, more specifically, the emerging Chinese car market. Previous research has considered the difference in the subjective knowledge of a product between owners and non-owners but does not account that some non-owners have stronger intentions to make a purchase. Yet, the impact of the purchase goal of FTBs on their subjective knowledge remains unexplained. This research demonstrates that the effect of the purchase goal on subjective knowledge is moderated by product ownership. Specifically, the findings show that the purchase goal only affects the level of subjective knowledge of FTB but not those of potential repurchasing buyers. Furthermore, when segmenting potential FTBs on the basis of their subjective knowledge, the segment of potential FTBs with higher subjective knowledge display similar attribute preferences to owners, while the preference differences are observed when segmenting potential buyers into owners and non-owners. From a managerial perspective, the findings of the research demonstrate the value of using subjective knowledge for consumer segmentation when targeting car buyers.     

Why Consumers Don't Always Accurately Predict Their Own Future Behavior

There is much theoretical and empirical evidence that consumers' predictions of their future behavior are positively correlated with their actual subsequent behavior. However, consumers are not perfectly calibrated in predicting what they will do in the future. This article examines several factors that moderate the link between consumers' stated purchase intentions and their subsequent purchase behavior. Specifically, we examine how the relationship between purchase intentions and purchase behavior is moderated by (1) factors that affect how accurately respondents can represent their current intentions and (2) factors that affect how accurately respondents can predict whether and how their intentions will change over time. The article summarizes the extant literature and develops propositions for future research.     

Exploring the impact of the physical conditions of mannequin displays on mental simulation: An embodied cognition theory perspective

This study examines how mannequins' physical conditions of display height and distance are related to consumers’ shopping motivations in generating mental simulation resulting in purchase intention. A 2 × 2 x 2 between-subjects lab experiment (n = 249) was conducted to address this question. The results reveal a significant three-way interaction effect of display height, distance, and shopping motivation. Specifically, it is found that for those with a dominant hedonic shopping motivation, a mannequin displayed up high generates greater mental simulation than one displayed down low, but for those with a dominant utilitarian shopping motivation, a mannequin displayed high and close to consumers generates greater mental simulation than one displayed low and close to them. This study also reveals that mental simulation mediates the influence of the interaction effect of “display height x distance,” moderated by shopping motivation, on purchase intention. Important theoretical and practical implications for retail managers are discussed.     

Effects of cognitive age,dispositional time perceptions,and time view manipulations on product attribute evaluations

Researchers manipulate time perceptions in experiments, but the efficacy of such manipulations demands further scrutiny. Two studies test the effects of dispositional time views and time view manipulations on product attribute evaluations, as well as the interaction between cognitive age and manipulated time perceptions and that between dispositional and manipulated time perceptions. The results suggest that time manipulation drives and predicts consumer product evaluations. In addition, cognitive age interacts with time manipulation as a meaningful moderator/predictor, and dispositional time view interacts with time manipulation to influence consumer evaluations. An incongruency effect (i.e., a time manipulation condition that differs from consumers' time perceptions) occurs for hedonic attribute evaluations but not for utilitarian attribute evaluations. The research offers several managerial implications of these findings.     

Strategies to offset dissatisfactory product performance: The role of post-purchase marketing

This research examines the role of post-purchase recovery initiatives in offsetting the negative effect of a dissatisfactory product experience. Experiment 1 explores the effect of counterfactual thinking, a mental simulation process of reflecting upon past events and generating alternative possible outcomes, on product evaluations after an individual experiences a negative purchase outcome. Experiment 2 builds on these findings and shows how customer surveys can be used as tactical tools to boost post-purchase product evaluations. The results indicate that post-purchase marketing efforts, such as customer surveys, can engage consumers in counterfactual thinking and positively affect their product evaluations.     

The role payment depreciation in short temporal separations: Should online retailer make customers wait?

In recent times, it has become common for customers to pre-pay for goods but consume them later. The pain of payment reduces over time, in a phenomenon called payment depreciation (PD). Researchers have examined this phenomenon in situations when payment precedes consumption by long periods, ranging from three weeks to several years. The present study examines the occurrence of payment depreciation when costs precede benefits by short periods, such as three days to two weeks. The three experiments establish the presence of PD in short intervals of less than two weeks. The results are robust for both inventoried and non-inventoried consumption. The results further suggest that the sunk cost of a payment devalues discretely and not continuously. The value of the sunk cost in the consumer's mental account drops significantly after two weeks, as compared to one week. The results fail to demonstrate the effect of payment mode on the payment depreciation phenomenon. Implications indicate that retailers can vary their order delivery period to reduce product returns.     

Predicting consumers’ cheating behavior. The role of mental representation of goods and psychological ownership

This study examines the likelihood of cheating when consumers are offered with the option of using postponed payment plans after purchasing hedonic goods. It addresses how the nature of the good combined with payment timing affects its perceived psychological ownership, which in turn influences consumers’ cheating behavior. Three experimental studies indicate that when consumers mentally represent a hedonic (vs. utilitarian) good, they are more likely to cheat. This effect is greater with a postponed payment than with an immediate one. Findings also show that perceived psychological ownership is lower for hedonic goods and this explains different levels of cheating behavior. The paper offers managerial guidance on how to increase perceived psychological ownership for hedonic goods, with the goal of reducing cheating behavior.     

Different Effects of Utilitarian and Hedonic Benefits of Retail Food Packaging on Perceived Product Quality and Purchase Intention

Since consumers primarily make in-store purchase decisions, firms use product packaging to attract potential consumers. Ever-increasing market competition in many food product industries has further fueled this phenomenon in firms. However, the question of how retail food packaging affects consumer processes has received very little attention. This study investigates the benefits of food packaging on consumer responses to hedonic products by comparing different benefits (i.e., utilitarian and hedonic) of food packaging to understand which one has more impact on consumers’ perceived quality and purchase intention. The results show that both utilitarian and hedonic benefits of retail food packaging are critical predictors of consumer evaluations but play different important roles in determining customers’ reactions. Utilitarian benefits of food packaging impact perceived quality more than hedonic benefits do. Compared to utilitarian benefits, hedonic benefits of retail food packaging have more impact on consumer purchase intention.     

We Eat First with Our (Digital) Eyes: Enhancing Mental Simulation of Eating Experiences via Visual-Enabling Technologies

This research examines how consumers’ intentions to purchase food change depending on the visualisation mode (3D vs. AR) and product format (served vs. packaged). In three studies, we demonstrate that mental simulation of eating experiences (process and outcome) mediate these effects. Study 1 shows that AR visualisation of a served food improves simulation of the eating process over 3D visualisation, with a positive effect on purchase intention. Study 2 reveals that 3D visualisation improves purchase intention for packaged products (high instrumental properties) over served products (low instrumental properties) while the opposite is true for AR visualisation. In addition, interactivity and immersion mediate the effects of 3D (vs. AR) on mental simulation of the eating process for packaged products. Study 3 extends these results by showing that 3D increases purchase intention by eliciting mental simulation of the eating outcome, when the food is visible due to transparent (vs. opaque) packaging (displaying both sensory and instrumental properties), but that no such differences emerge for AR. This research highlights the importance of using different visualisation modes to promote food depending on the product format. The findings have important implications for both offline and online retailers.     

The interaction of retail density and music tempo: Effects on shopper responses

Research examining the effects of store environment on shoppers has found that a number of atmospheric cues have significant effects on shoppers' cognitive, affective, and behavioral responses. To date, retail atmospheric cues have been studied in isolation, instead of simultaneously, like they occur in the retail setting. This study examines the interactive effects of two atmospheric cues—retail density and music tempo—and their impact on shopper responses within a real shopping environment. Based on the schema incongruity model, it is found that shopper hedonic and utilitarian evaluations of the shopping experience are highest under conditions of slow music/high density and fast music/low density. Significant main effects of music tempo are found for behavioral responses such as approach/avoidance tendency and extent of browsing behavior. The results underscore the need to examine interactive effects of atmospheric cues to better understand the impact of the store environment on shoppers. © 2005 Wiley Periodicals, Inc.     

The Influence of Cognitive Dissonance on Retail Product Returns

Given the significant costs and customer service ramifications associated with the return of retail merchandise it is important to understand the underlying reasons for product returns. One such underlying reason is cognitive dissonance. Customers who experience cognitive dissonance may seek to undo the effects of a regretted choice by returning the product in question. This research examines the influence of two forms of cognitive dissonance (emotional dissonance and product dissonance) on the frequency of product returns. Three antecedents (consideration of liberal return policies, customer opportunism, and switching barriers) are examined in terms of their influence on cognitive dissonance and product returns. In addition, the moderating role of gender and store brand is reported. The research is based on a survey of Wal‐Mart and Target customers who engaged in product returns. Structural equation modeling is used to verify and test these relationships. Emotional dissonance and product dissonance were found to be positively related to product returns frequency. It was found that consideration of liberal return policies reduces both emotional and product dissonance, while customer opportunism and switching barriers increase both dimensions of cognitive dissonance. Both gender and store brand were found to be significant moderators of the relationships between cognitive dissonance and two antecedents (consideration of liberal return policies and customer opportunism). In addition, gender and store brand moderated the linkage between product dissonance and emotional dissonance, and the linkage between emotional dissonance and return frequency.     

Using a hedonic price model to test prospect theory assertions: The asymmetrical and nonlinear effect of reliability on used car prices

This paper investigates prospect theory implications in used goods markets. In particular, it develops a hedonic price model that addresses the price structure of the used car market in the light of prospect theory. The proposed hedonic price model provides empirical evidence in support of prospect theory predictions for explaining used car prices after controlling for observed product differentiation. It is demonstrated that consumers are risk seeking when used car reliability is below the expected reference value and risk averse when used car reliability is above the expected reference value. The model also illustrates how car quality affects residual values and how buyers evaluate used cars.     

Impacts of product type and representation type on the perception of justice and price fairness

Consumers make purchasing decisions every day. This paper investigates perceptions of justice and price unfairness, where the product (hedonic vs. utilitarian) is presented either in a more abstract (verbal) or a more concrete (photo) way in a context of discriminatory pricing—a widely-employed marketing practice. Two experimental studies were completed. Results show an interaction between product and representation types. When consumers pay more than others to purchase utilitarian products that are concretely represented, participants perceive more unfairness when compared to hedonic products. However, when consumers pay more than others to purchase utilitarian products abstractly represented, the perception of unfairness decreased compared to hedonic products. For consumers and practitioners, this study offers important contributions—it presents situations in which a discriminatory price can result in a different perception of injustice or price unfairness to informed consumers. Accordingly, implications of these findings for the literature, consumers, and managers are discussed.     

Determining Customer Satisfaction From Mobile Phones: A Neural Network Approach

Abstract

This research examines the effects of extension mode (online to online vs. online to offline), web-brand concept (function oriented vs. experience oriented) and extension similarity (high vs. low) on consumer web-brand extension evaluations, attitude, perceived quality, and purchase intention of the extension brands. The analysis reveals two significant interaction effects: (1) the positive effect of brand extension similarity on consumer evaluations is stronger when the parent brand is function oriented compared to the experience-orientated ones; (2) the positive effect of brand extension similarity on consumer evaluations is more pronounced when the web-brands extend to offline markets rather than to online markets. Implications for marketing theory and practice are discussed.     

Self-construals,symbolic and hedonic preferences,and actual purchase behavior

The study explores the influence of the independent and interdependent self-construals on actual purchase behavior and the mediating role of consumer preferences for symbolic and hedonic meanings. Data were collected through a survey of about 1000 respondents. Results indicate that independent consumers draw on the self/hedonic- and status-symbolic resources of clothing in the construction and expression of their identities. Regarding the interdependent consumers, they show no interest in clothing affiliation and status symbolism. The degree of preference for status-symbolic meaning mediates all effects of the independent and interdependent self-construals on actual purchase behavior; self-expressive/hedonic preferences mediate two of the three effects of the independent self on actual purchase behavior when accounting for suppression effects, whereas the expected mediation of preference for affiliation meaning is not supported.     

Receiving word-of-mouth from the service customer: An emotion-based effectiveness assessment

This study examines how receiving negative and positive word-of-mouth from satisfied and dissatisfied customers influences the potential customer. By explicitly including responses in terms of emotions—which hitherto have been neglected in research on word-of-mouth—it was found that emotional contagion and affect infusion were involved in the response process. The net effect was that receiving positive word-of-mouth as opposed to receiving negative word-of-mouth produced more positive evaluations of the service firm in the word-of-mouth conversation and higher levels of purchase intent vis-à-vis this firm. The results are thereby consonant with implicit assumptions in existing literature that word-of-mouth from the existing customer may have a significant impact on the potential customer, and this study indicates that emotional variables play an important role in the influence process.     

Increase hedonic products purchase intention through livestreaming: The mediating effects of mental imagery quality and customer trust

Although online retailing is applying livestreaming to promote both hedonic and utilitarian products, the differential effectiveness of utilizing this tool across the two types of products is still unclear. With an online experiment, the study found that livestreaming (vs. traditional e-commerce) is more effective in boosting hedonic products while making no difference in increasing purchase intentions of utilitarian products. By running a moderated serial mediation analysis, the research also demonstrated the underlying mechanism that livestreaming could significantly enhance mental imagery quality and customer trust in hedonic rather than utilitarian products. Therefore, our research has discovered an important boundary condition for the livestreaming effect and also the mechanism for the success of utilizing livestreaming to boost hedonic products. Considering the indiscriminate use of livestreaming regardless of product types and the huge amounts of resources required to sustain livestreaming, the study not only provides a theoretical glimpse of where livestreaming is more effective and why, but also practical insights as to how to apply livestreaming to different types of products and how to leverage mental imagery and customer trust to achieve business growth in an online retailing context.     

Attitude formation from product trial: Distinct roles of cognition and affect for hedonic and functional products

Affective and cognitive responses to a product trial are examined in an experiment containing two cells representing two product types: hedonic and functional. The stimulus products were a computer game and grammar‐checking software. Forty‐two college students comprised the sample for the experiment. The specific affective responses studied are pleasure and arousal, and brand cognitions are represented as the expectancy value from brand attributes (the product of brand beliefs, belief confidence, and attribute evaluations, summed across the attributes (σ b_ic_ie_i)). The relative level and influence of affective and cognitive responses to a product trial were shown to differ significantly, depending on whether the product was hedonic or functional in nature. Specifically, for the hedonic product, felt arousal during the trial was higher than for the functional product, and emotional responses were significant antecedents of subjects' evaluations of the trial experience. Brand cognitions, however, were not significantly related to trial evaluations for the hedonic product. In contrast, for the functional product, brand cognitions and pleasure were significant antecedents of trial evaluations, but arousal was not. The findings of this study demonstrate the importance of considering both the cognitive structure created by a product trial and the consumer's emotional reactions to the trial. For hedonic products, especially, emotional responses to the trial were shown to be powerful antecedents to consumers' evaluations of a trial experience, and subsequently, brand attitude. Marketers and marketing researchers can use these results to predict which category of responses to product trial (affective or cognitive) will be most important for brand evaluation for the particular product in question. This knowledge may also enable marketers to manipulate aspects of a product trial that are most influential on the set of trial responses that this study has shown to significantly affect brand evaluation for that product type. © 1999 John Wiley & Sons, Inc.