Interfirm Arrangements in Different Institutional Environments

Abstract

This paper aims to investigate the effect of the institutional environment variables on the organizational choice by franchise chains that share a business format. Inasmuch as this type of franchising requires strict standardization, a comparative analysis of the same franchise chain operating in different institutional environments allows for the control of several variables, such as product and firm strategies, so that the observed organizational differences may be attributed to institutional variables. Different rules of the game may explain different governance structures in the transaction between franchisor and franchisees and their procurement contracts. In this paper, we did case studies based on semi-structured interviews with procurement and franchising managers of McDonald's in France and Brazil. The main finding is that McDonald's uses in Brazil governance structures that provide more control on transactions, both in the transactions with their outlets and their suppliers. In accordance with our results, institutional environment features explains differences in the organizational choice in each country. Results suggest the need for further research in two directions: a larger sample of countries and the investigation of other franchise chains.     

An investigation into the perceptions of Chinese consumers towards the country‐of‐origin of dairy products

The dairy incident in 2008 influenced Chinese residents’ attitudes towards domestic and foreign brands in the market. This paper highlights the strong consumer perceptions existing in the Chinese dairy market towards the country of origin of dairy products. Chinese residents generally believe dairy products from foreign countries are superior than those from China. A new theoretical framework is developed to explore the driving factors of country‐of‐effects and its corresponding impacts. Consumers’ image of different countries and national stereotypes, consumer ethnocentrism and animosity, product familiarity and experience, product involvement and some cultural value differences were found to drive country‐of‐origin effects. These effects directly impact on consumer's perceived quality, brand awareness, brand association and loyalty towards the related goods in the market, then influence the brand equity of products from different countries. This study provides a better understanding of country‐of‐origin effects on consumer behaviour, and will help relevant domestic and foreign firms improve their business strategies in China.     

Loving my local business as my neighbor: Religiosity's influence on local business support during a crisis

Many local businesses have and are continuing to struggle as a result of the pandemic crisis due in part to reduced consumer spending. However, the motives behind why some consumers are more supportive than others toward local businesses in such a crisis are not adequately understood. We address this gap in the literature through three experimental studies where we examine how the core consumer value of religiosity explains consumer response to the crisis as consumers seek to act in ways that align with their value system. Study 1 (257 adults from MTurk) shows a positive relationship between religiosity and support for local businesses but only during a pandemic. Study 2 (307 adults from MTurk) shows that this relationship is greatest for local (vs. non-local) businesses, and caring for one's neighbors mediates this effect. Finally, Study 3 (200 adults from MTurk) uses advertising to prime focus on one's neighbors, revealing that a neighbors-focused ad increases local business support to similar levels for consumers of all religiosity levels. Findings build on belief congruence theory with implications for marketing practitioners in the current pandemic crisis and other crises of medical, environmental, and other origins.     

The influence of religious commitment on consumer perceptions of closed-on-Sunday policies: an exploratory study of Chick-fil-A in the southern United States

Many businesses operate long hours that often include nights and weekends to accommodate consumers. However, a few businesses maintain a closed-on-Sunday policy and do so while still operating successfully although closed-on-Sunday policies mean forgoing potential sales hours. As most Christian faiths consider the Sabbath as a day of rest, an oft-used rationalization for the success of businesses maintaining this policy is that they must be supported by consumers with strong religious beliefs, who appreciate the message sent by the company and as a result perceive the company favorably. The purpose of this paper was to investigate whether consumers' religious commitment influences their ethical judgment of a company's closed-on-Sunday policy and to determine whether this ethical judgment impacts a company's corporate or brand image and consumer loyalty intentions. The results suggest that consumers with higher levels of intra-personal religious commitment are more likely to hold favorable ethical judgments of closed-on-Sunday corporate policies. In addition, favorable ethical judgments of closed-on-Sunday corporate policies are likely to positively influence corporate image. A more positive corporate image ultimately results in higher consumer loyalty intentions.     

Adult consumer education across Europe – redressing the market or reaching the vulnerable consumer

Consumer education is an important EU and United Nations priority. In most countries’ formal education systems, it is not a single discipline in its own right, but a cross‐curricular subject involving many areas of the school curriculum. Adult consumers are expected to be critical and informed consumers but may not know how to acquire the appropriate skills. The formal school system in many countries has failed to deliver these skills and values and adults need consumer education through both formal and informal means. With increasingly varied societies consumer education will help to produce active socially responsible citizens and citizenship is an essential element of the delivery of consumer education to adults. It is particularly important that consumer education should reach the vulnerable groups in society. Increasing globalisation and business power necessitate ethical and sustainable business practices; an informed, educated and empowered consumer will strengthen the market place to the benefit of both consumers and business. Unlike school education, adult education across Europe is fragmented with a mixture of formal education, including training for vocational qualifications, continuing and community education, and informal education, an essential contributor to life‐long learning delivered through media, women's groups, consumer groups and many other large and small organisations. The issues have been addressed by the EU Socrates supported CEA (Consumer Education for Adults) project which has 10 partners from 7 European countries drawn from non‐government organisations, teacher training and adult education institutions, universities and research institutes. The project has produced a training manual for adult consumer education, a training module, piloted in Vienna, which includes a handbook of teaching materials and a video, and has initiated a dialogue between consumers, consumer educators, business and producers.     

“What’s the Harm in Being Unethical? These Strangers are Rich Anyway!” Exploring Underlying Factors of Double Standards

Previous studies show evidence of double standards in terms of individuals being more tolerant of questionable consumer practices than of similar business practices. However, whether these double standards are necessarily due to the fact that one party is a business company while the other is a consumer was not addressed. The results of our two experimental studies, conducted among 277 (Study 1) and 264 (Study 2) participants from a Western European country by means of an anonymous self-administered online survey, demonstrate that the respondents were not only harsher in their judgments of unethical business (vs. consumer) behavior, but also harsher in their judgments of unethical behavior by prosperous (vs. non-prosperous) consumers and prosperous (vs. non-prosperous) business companies (Study 1). Further, they were also less tolerant of unethical behavior by consumers (vs. one’s best friend) and business companies with which they have a less than good (vs. a good) relationship (Study 2). These results indicate that double standards are due to differences in perceived wealth between subjects and in the individual’s relationship with subjects. These two factors imply that double standards are not strictly reserved to consumer–business relations, but might also be used in business–business and consumer–consumer relations. Further, these results indicate that companies need to be aware of the fact that good financial figures may backfire as they might lead individuals to be more critical of a company’s deceptive practices. Moreover, these findings point to the importance of businesses investing resources—and to keep investing resources—in developing a good relationship with stakeholders as these good relationships lead to stakeholders being less prone to make moral condemnations.     

Validating the search,experience, and credence product classification framework

Prior research identifies the influential factors for patronage intentions as product classes, retailer attributes, and risk perceptions. The Internet's ability to offer easy information search, therefore to reduce certain types of risk for products mandates evaluation of a new product classification framework called Search, Experience, and Credence. To test the nomological validity of the SEC-framework, this study investigates whether the SEC-products influence the (1) level of importance consumers place on retailer attributes, (2) level and types of risks consumers perceive, and (3) consumer patronage intentions for Internet and physical stores. The relationships between the (4) importance consumers place on retailer attributes and their risk perceptions, and (5) risk perceptions and patronage intentions for Internet and physical stores are investigated. The findings indicate while the importance of retailer attributes is equally significant across the four product classes, the SEC-products influence consumer risk perceptions and purchase-intentions for online and physical-stores. The relationship between important retailer attributes and risk perceptions is also significant.     

A psychological examination of attachment insecurity,loneliness, and fear of missing out as drivers of retail patronage among emerging adults

Recent consumer literature has shown that attachment insecurity (i.e., anxious, avoidant) enhances individual's motivations for retail shopping. We extend that literature using attachment theory to explain how attachment insecurity, loneliness (i.e., social, emotional), and fear of missing out (FoMO) affect retail patronage. We posit that these three negatively valenced psychosocial conditions generally incline emerging adult consumers toward retail patronage to resolve their relational deficits. Based on results from partial least squares-structural equation modeling (n = 509), we find support for most of our hypotheses. The study presents previously unavailable knowledge about antecedents of FoMO and multiple negative psychosocial drivers of retail patronage. We provide a foundation for future scholarship to examine more broadly how attachment, loneliness, and FoMO impact consumer behavior. Managerial and theoretical implications are also provided.     

A cross‐cultural and cross‐gender analysis of compulsive buying behaviour's core dimensions

This study seeks to address the disagreement in the literature about compulsive buying behaviour's (CBB) dimensional structure and tests for cross‐cultural and cross‐gender invariance in young British, Chinese, Czech and Spanish consumers using structural equation modelling. The results show that CBB has two compulsive dimensions: Compulsive Purchasing (CP) and Self‐control Impaired Spending (SIS). These dimensions are cross‐culturally invariant, although the influence of SIS on CBB is higher in more developed countries, particularly among females. The confirmation of the SIS dimension and the external validity of the CBB construct established through the cross‐cultural invariance in CBB dimensions indicate that screening tools should be revised accordingly. The SIS dimension has possibly been previously misinterpreted as impulsive and/or as spontaneous buying and may explain the higher incidence of CBB among female consumers.     

Place as a site and item of consumption: an exploratory study

While places are recognized as sites of consumption within the field of consumer behaviour, they have yet to be generally accepted as forms of consumption. This study investigates the idea of place as a consumption object by comparing conceptions of city and country within a cross‐cultural sample. Thirty‐six consumers living in the US, the UK and Australia were interviewed to explore their thoughts and feelings relating to the cities and countries in which they reside. The findings provide empirical support for key conceptualizations of place in the sociology literature and extend consumer behaviour theory to include considerations of the physical, social and cultural aspects of place that impact upon consumption. In addition, the findings portray places as entities that are assessed, selected and experienced in comparable ways to products.     

Teens' consumer interaction styles: the impact of assertive and aggressive behaviour on attitudes towards marketing practices

Over half‐billion global teens between the ages of 13 and 18 years represent a dynamic opportunity for marketers who wish to grow their businesses and build consumer loyalty. Consumer interaction styles are the consistent behaviour patterns that individuals employ in transactions or exchanges in the marketplace. Assertiveness and aggressiveness represent two distinct interaction styles that enable individuals to achieve a desired outcome. Because teen consumers are an important consumer segment and subscribe to the notion that their voices must be heard, understanding their interaction styles is necessary for businesses and marketers. The purpose of this study was to examine teens' consumer interaction styles according to specific demographic and lifestyle characteristics and investigate the impact of assertive and aggressive interaction styles on attitudes towards marketing practices (i.e. product, retailing, advertising, and pricing). Data were collected from a US teen sample (n = 467) at both rural and urban high schools. Independent t‐tests compared the propensity of teens' assertive and aggressive consumer interaction styles according to specific demographic and lifestyle characteristics. Structural Equation Modeling using AMOS 6.0 program was performed to test the hypothesized relationships. Results indicated that an assertive interaction style was pervasive among US teen consumers, while the aggressive interaction style had disparities according to unique demographic and lifestyle characteristics. Assertive and aggressive interaction styles demonstrated negative influences on teen consumers' attitudes towards products and retailing practices. By interpreting the negative impact of teens' assertive and aggressive consumer interaction styles, marketers can develop effective strategies that appeal to this demanding consumer.     

Antecedents of Taiwan Chinese Consumers’ Purchase Intentions Toward U.S.- and Japanese-Made Household Appliances

ABSTRACT

The purpose of this article is to understand the factors influencing Taiwan's Chinese consumers’ purchase intentions toward U.S. and Japanese household appliances. The authors attempt to develop and test a comprehensive model linking such purchase intentions to several constructs including Taiwan Chinese consumers’ openness to foreign cultures, consumer nationalism, product familiarity, traditional cultural values orientation, and product-country image. The result of analysis using structural equation modeling shows that consumer nationalism has a strong indirect effect on purchase intention via the product-country image construct. Taiwan Chinese consumers’ traditional cultural values orientation and openness to foreign cultures have direct effects on consumer nationalism and, hence, are important antecedents in explaining the purchase intentions toward foreign-made goods by Taiwan Chinese consumers. With the growing importance of the Chinese domestic market, this study provides international marketing managers with practical implications in important areas such as market segmentation, branding strategy, and market research and practices in the Chinese consumer market.     

Materialism and conspicuous consumption in China: a cross‐cultural examination

With the growing rise in consumer spending and economic power in Asian societies, it is increasingly important to explore the implications of these developments on consumer culture. This cross‐cultural study first discusses the rise of materialism and conspicuous consumption in post‐revolution China then examines differences in these phenomena between young adult consumers, aged 18–35, living in urban China and the United States. Utilizing survey data from over 600 respondents, significant differences were found in both materialism and conspicuous consumption, with Chinese young adults scoring higher in both variables. The findings show, that compared with past comparative studies, it appears both materialism and conspicuous consumption are on the rise among urban Chinese consumers.     

Social Capital or Ethnic Enclave Location? A Multilevel Explanation of Immigrant Business Growth

The rapid increase in migration into host countries and the growth of immigrant‐owned business enterprises has revitalized research on ethnic business. Does micro (individual)‐level social capital, or meso (group)‐level location within the ethnic enclave lead to immigrant business growth? Or do you need both? We analyze quantitative data collected from 110 Chinese restaurants in Australia, a major host country. At the micro level we find that coethnic (same ethnic group) networks are critical to the growth of an immigrant entrepreneur's business, particularly in the early years. But non‐coethnic (different ethnic group) social capital only has a positive impact on business growth for immigrant businesses outside the ethnic enclave. Our findings are relevant, not only to host‐country policymakers, but also for future immigrant business owners and ethnic community leaders trying to better understand how to promote healthy communities and sustainable economic growth. © 2015 Wiley Periodicals, Inc.     

Young Europeans abroad in Scotland: an exploration of how their attitudes to consumer credit reflect dimensions of culture

Nineteen young Europeans from across the Continent took part in in‐depth interviews where a wide range of consumer‐related issues were explored. These issues ranged from specific consumer behaviours and consumer value gained to consumer protection and other aspects of policy. Respondents were postgraduates studying at Scottish universities or young professionals currently working in Scotland. The interviews were structured around a number of key themes that were developed both from the literature and from an in‐depth pilot study. One of these themes was designed to explore the respondents’ attitudes towards saving and borrowing, in particular, consumer credit; and this forms the focus for the current paper. The theme had been developed initially with reference to Hofstede’s cultural dimension of ‘uncertainty avoidance’. However, it also successfully illuminated some of the other cultural dimensions in Hofstede’s typology. As anticipated, respondents tended to benchmark consumer culture in their home country against that of the host country (Scotland). What was surprising was the consensus with which they considered the Scottish/British consumers to be the ‘odd ones out’. This observed convergence appears to indicate that historical cultural differences between continental and Anglo‐Saxon cultures survive and may be stronger and more sustained than any differences between the post‐World War II socialist and market democracies.     

The effect of firm scale and CSR geographical scope of impact on consumers' response

The role of corporate social responsibility (CSR) in shaping consumer perception and attitude has received many attentions both in the academia and practitioner world. While this domain has invited numerous research, but research highlighting how consumers react toward learning the size of a firm conducting CSR and geographical scope of the CSR impact is still scarce. We investigate how consumers shape their attitude and consumption behavior after knowing that the CSR action is done by a small, locally-owned business that brings impact to the local community through an experimental study. Our study adds a shade in understanding how the effect of a firm size and geographical scope of CSR impact might increase consumers' favorable attitude and behavior toward the business and its products. Our findings show that when consumers learn that the firm conducting CSR is a small, locally-owned (in coffee shop business) that directs its action toward local beneficiaries, they demonstrate more favorable attitudes toward the action and the firm, which manifest in the form of better intentions to acquire the product as well as willingness to pay premium prices for it. Our findings confirm the US consumers' love affair with local businesses, in particular. While the findings generally benefit small, locally-owned businesses, they also suggest recommendations for large, multinational businesses to design their marketing strategy in an attempt to increase favorable reactions from consumers.     

Digital humans in fashion: Will consumers interact?

The ongoing COVID-19 pandemic is disrupting the fashion industry and forcing fashion businesses to accelerate their digital transformation. The increased need for more sustainable fashion business operations, when coupled with the prospect that business might never be as usual again, calls for innovative e-commerce led practices. Recently, stakeholders have been experimenting with the idea of introducing digital humans for a more active role in fashion through the developments in artificial intelligence, virtual, augmented and mixed reality. As there is a lack of all-important empirical evidence on the consumer's propensity to interact with digital humans, we aim to quantitatively analyse consumer attitudes towards the propensity to interact with digital humans to uncover insights to help fashion businesses seeking to diversify their operations. The results reveal interesting, and statistically significant insights which can be useful for fashion business stakeholders for designing, developing, testing, and marketing digital human-based solutions. Besides, our findings contribute current insights to the existing literature on how consumers interact with digital humans, where research tends to be scarce.     

The Effect of Consumer Multifactorial Gender and Biological Sex on the Evaluation of Cross‐Gender Brand Extensions

Introducing cross‐gender brand extensions—masculine or feminine brands that extend to the opposite gender—is a growing trend on the marketplace, though not always a successful one. This research examines the effect of consumer multifactorial gender and biological sex on consumers’ evaluation of cross‐gender brand extensions. The influence of gender role attitudes is demonstrated: consumers with traditional gender attitudes are significantly more reluctant to accept these extensions than consumers with more liberal attitudes. Hence the extensions have a negative impact on the subsequent attitude of the former group toward the parent brand, contrary to their effect on more egalitarian consumers. No significant impact of the consumer's biological sex, gender identity, or sexual orientation is identified. The theoretical and managerial implications of these findings for the development of cross‐gender brand extensions are discussed.