Loyalty program structure and consumers' perceptions of status: Feeling special in a grocery store?

Loyalty programs are business practices increasingly pursued by companies in order to achieve customer loyalty. Recent studies have focused on the relationship between loyalty program structures (i.e., number and size of hierarchical tiers) and status levels (i.e., exclusivity) perceived by members. The current study examines two potential moderators of this relationship between program structure and perceived status. Specifically, the aim of our research was to test whether loyalty program structure affects status perceptions in more and less exclusive industries, and among consumers with more and less positive attitudes toward loyalty programs.An experimental design based on different scenarios was used. Two industries and three loyalty program structures were examined. In the airline industry, which is higher in perceived exclusivity, perceived status in the top tier of the loyalty program increased as the number of customers in the top tier decreased and as the number of tiers increased. Notably, however, loyalty program structure had no effect on perceived status in the supermarket industry, which is lower in perceived exclusivity. Moreover, even in the airline industry, status effects were only observed among respondents with a positive attitude toward loyalty programs. Those with neutral or negative attitudes toward loyalty programs were unaffected by the structure of the loyalty program. Thus, the effect of loyalty program structure on consumers' perceived status varied systematically across industries and across individuals.     

Are consumers' perceptions of price–quality relationships well calibrated?

Past research has shown that, to varying degrees, consumers tend to believe price is an indicator of quality, even though there is in fact often very little correlation between objective measures of price and quality (PQ). Moreover, consumers have been observed to be poorly calibrated in their knowledge of precisely which categories exhibit the strongest association between PQ for products. Given the profound changes that have occurred in consumer markets, such as the rise of the Internet and the flood of product quality information now readily available online, the present work seeks to update this line of research. Specifically, it seeks to determine if changes in the marketplace have affected (1) consumers' perceptions of the PQ relationship; and (2) consumers' PQ calibration. Data from two sources were collected and compared: (1) Subjective ratings of the PQ relation for various common products, collected using a questionnaire format in a survey of 313 US consumers; and (2) Objective estimates of the actual PQ association of the same products, gathered from independent third‐party information providers who report both prices and rank‐ordered quality measures for each. Results indicate that consumers today (1) continue to perceive a modest positive relationship between PQ (more so for durables, less for non‐durables); and (2) are modestly calibrated for durable products. But they are much less well calibrated in the realm of non‐durables, where consumers expect a positive link between price and quality in precisely those product categories in which the relationship is actually negative. Relative to past research, the calibration of consumers has apparently ‘flipped’ from non‐durables to durables today. Potential explanations for this result include (1) the rise of the Internet as an information source for quality ratings of durables; (2) a higher level of perceived risk for durable goods purchases; (3) a greater tendency for durables to exhibit a positive correlation between actual quality and price; and (4) the rising quality level of private label brands, which may render prior price–quality perceptions for non‐durables outdated or obsolete.     

What constitutes a “good assortment”? A scale for measuring consumers' perceptions of an assortment offered in a grocery category

This research investigates how consumers form subjective judgments of what constitutes “a good grocery assortment”. By conducting three exploratory focus groups and a field study, we develop a multi-item scale that reflects consumers' cue utilization processes in forming perceptions of a grocery assortment. Our findings suggest that consumers use only a limited number of informational cues to form perceptions about four higher-level assortment dimensions: (1) the assortment's pricing, (2) its quality, (3) its variety, and (4) its presentation. In line with the attitude theory, we found that consumers integrate these higher-level assortment dimensions into a summary evaluation of the grocery category's attractiveness. Accordingly, we derive the grocery assortment perception (GAP) scale as a second-order construct composed of four first-order factors. Significant positive relationships between the GAP scale and customer satisfaction as well as loyalty intentions provide empirical support for the scale's predictive ability and nomological validity. In the last section of this article, we discuss how the GAP scale will support category managers in their assortment decisions and provide directions for further research.     

Capital-flow management measures: What are they good for?

Are capital controls and macroprudential measures related to international exposures successful in achieving their objectives? Assessing their effectiveness is complicated by selection bias; countries which change their capital-flow management measures (CFMs) often share specific characteristics and are responding to changes in variables that the CFMs are intended to influence. This paper addresses these challenges by using a propensity-score matching methodology. We also create a new database with detailed information on weekly changes in controls on capital inflows, capital outflows, and macroprudential measures related to international transactions from 2009 to 2011 for 60 countries. Results show that these macroprudential measures can significantly reduce some measures of financial fragility. Most CFMs do not significantly affect other key targets, however, such as exchange rates, capital flows, interest-rate differentials, inflation, equity indices, and different volatilities. One exception is that removing controls on capital outflows may reduce real exchange rate appreciation. Therefore, certain CFMs can be effective in accomplishing specific goals—but most popular measures are not “good for” accomplishing their stated aims.     

Trade Liberalisation and Poverty: What are the Links?

This paper asks whether a developing country's own trade liberalisation could translate into increased poverty, and what information would be required to identify whether it will do so. It plots the channels through which such effects might operate, identifying the static effects via four broad groups of institutions – households, distribution channels, factor markets and government – and the dynamic issues of volatility, long–term economic growth, and short–term adjustment stresses. An increase in the price of something a household sells (labour, good, service) increases its welfare. Thus, the paper first explores the likely effects of trade liberalisation on the prices of goods and services, taking into account the distribution sector. Also critical is whether trade reform creates or destroys markets. Trade reform is also likely to affects factor prices – of which the wages of the unskilled is the most important for poverty purposes. If reform boosts the demand for labour–intensive products, it boosts the demand for labour and wages and/or employment will increase. However, not all developing countries are relatively abundant in unskilled labour and trade can boost demand for semi–skilled rather than unskilled, labour. Hence poverty alleviation is not guaranteed. Trade reform can affect tariff revenue, but much less frequently and adversely than is popularly imagined. Even if it does, it is a political decision, not a law of nature, that the poor should suffer the resulting new taxes or cuts in government expenditure. Opening up the economy can reduce risk and variability because world markets are usually more stable than domestic ones. But sometimes it will increase them because stabilisation schemes are undermined or because residents switch to riskier activities. The non–poor can generally tide themselves over adjustment shocks from a liberalisation, so public policy should focus on whether the initially poor and near temporary, setbacks. The key to sustained poverty alleviation is economic growth. There is little reason to fear that growth will not boost the incomes of the poor. Similarly, while the argument that openness stimulates long–run growth has still not been completely proven, there is every presumption that it will.     

What about sustainability? Understanding consumers' conceptual representations through free word association

The United Nations (UN) conceptualizes sustainability as development that meets the current needs of the planet's populations, but without compromising the ability of future generations to meet their own needs. Although the concept of sustainability has been widely discussed in the international political agendas, inconsistent interpretation and ambiguity of the concept by consumers is observed. In this paper, the understanding of the term sustainability amongst Brazilian consumers is reported. Using the word association projective technique, the participants were asked to write down all the words that came to their mind when thinking about “sustainability.” Thematic content analysis was performed by grouping words by similarity of meaning in categories, which were further submitted to correspondence analysis (CA) to create a perceptual map. Brazilian consumers made different associations reflecting the complexity and multidimensionality of the concept amongst different groups of consumers. The most frequently cited categories are related to environment, health and nutrition, behaviour, production and economy and sustenance. CA accounted for 76.7% of the data variance and the perceptual map evidenced that younger individuals with higher education made associations with categories related to the current concept of sustainable development, similar to that proposed by UN. Moreover, consumers with basic education were associated with categories related to food and sustenance. The findings of this study can contribute to the formulation of education strategies directed towards different social groups, besides directing further research on consumer behaviour.     

What do we know about consumers' ontological security in disaster scenarios?

While prior consumer studies have adopted various theoretical perspectives to explain individuals' reactions to disasters, scant attention has been paid to the role of ontological security in shaping those responses. This study attempts to fill this knowledge gap by qualitatively exploring ontological security in two contexts: man-made and natural disasters. To this end, we conducted 35 focus groups in the UK, Germany, and France to address how people reacted to terrorist attacks and the COVID-19 pandemic respectively. Through thematic analysis, three themes emerged: fear versus anxiety, oneself versus others, and materialistic versus experiential purchases. Man-made disasters appear to elicit fear, concern for self, and a preference for materialistic purchases, whereas natural disasters seem to trigger anxiety, concern for others, and a preference for experiential purchases. Both types of disasters seem to evoke a desire to escape from reality. In closing, we discuss both transitory and prolonged threats to ontological security and how they shape individuals' behaviours while restoring their security.     

Predicting consumers' reactions to product failure: Do responsibility judgments follow from consumers' causal explanations?

Recent research in psychology suggests that people's causal attributions for an occurrence may not reflect the entirety of their beliefs about how the event transpired but rather which subset of this information has explanatory relevance given the context of the causal question. The present research examines the implications of this proposition for causal judgments about product failure and manufacturer responsibility. An experiment is presented which shows that consumers' attributions for product failure — to manufacturer-related vs. consumer-related factors — may vary with the causal background or reference case against which the occurrence is considered. These findings are discussed in light of previous research in marketing which suggests responsibility judgments should be related to the locus of consumers' attributions.     

Hotel guest satisfaction among business travelers: What are the important factors?

In their quest for improved quality, hospitality industry managers often face two major obstacles: (1) They do not know what aspects the guest considers to be important when evaluating the hotel experience, and (2) they do not have reliable and valid instruments for measuring quality perceptions. The objective of this study was to examine both of these obstacles. By employing LISREL analysis to two alternative models of hotel guest satisfaction, we found that the majority of variation in overall satisfaction can be explained by the intangible and tangible dimensions of three departments of the hotel: reception, the housekeeping department, and the food and beverage department. Further, tangible aspects of the housekeeping department and intangible aspects of reception were found to have the strongest effect on overall satisfaction. This calls for a more focused approach to service quality management than the total quality management literature generally recommends. Managers are advised to concentrate attention and resources on the aspects that have the highest importance for obtaining overall satisfaction. Because of the small amount of research in this area, the study must be regarded as preliminary and exploratory. Recommendations for further research are presented.     

What are the functions of corporate home pages?

Researchers have identified a number of functions performed by corporate home pages on the World Wide Web. Although commerce and marketing functions are growing, they may be of minor importance in the evolving Internet strategies of corporations. The research presented here examined the functions of corporate home pages in the United States, Germany, and Japan, guided by theories in management studies and communications technology research. Results suggest that image creation rather than marketing, cost control, stakeholder relations, or disclosure is the major function of corporate home pages in each of the countries studied. This raises the question of why image creation is so important.     

Guilt online vs. offline: What are its consequences on consumer behavior?

Although various consumption episodes, types of products, and dimensions of guilt have been examined in previous studies, the existing literature has not addressed whether guilt could arise differently depending on the purchase channel (online versus in-store). This research thus investigates the effect of the purchase channel on consumer's guilt and the consequences of that guilt on consumer's anticipated satisfaction. Two experiments conducted in different contexts show that perceived value moderates the relationship between the purchase channel and guilt. Further, we demonstrate that perceived value is also a moderator of the mediating effect of guilt in the influence of the purchase channel on anticipated satisfaction.     

Barriers to Exporting: What are They and Who do They Matter to?

The international trade literatures on gravity modelling and firm‐level export behaviour have established that nontariff barriers are important impediments to international trade flows. In this paper, we provide fresh evidence on the actual barriers to exports firms face and how they vary with firm‐level characteristics. Our results indicate that the higher the export experience of firms the lower are the trade costs they face. These barriers are not related to other firm‐level characteristics, such as productivity and size, found by the literature to be associated with export market entry. Overall, these results suggest the existence of a process of learning to export whereby firms learn how to cope with export barriers through direct experience in export markets.     

Anti‐dumping: What are the Numbers to Discuss at Doha?

While tariff barriers have decreased worldwide through various GATT rounds, anti‐dumping has surged to play a crucial role as the most important non‐tariff barrier. After much debate and opposition, anti‐dumping is on the agenda of the Doha round of multilateral trade negotiations and it is one of the most important issues, especially for developing countries as they are the main targets of this policy instrument. With this prospect, it is important to assess the relevance of anti‐dumping not only by focusing on traditional users but by analysing the experience of new users, which are now major players in the field. This paper improves upon existing studies by providing a comprehensive assessment on the use of anti‐dumping. First, data on the time pattern of worldwide implementations of anti‐dumping laws are presented. This time profile shows interesting relationships with legal developments in GATT and WTO dispositions. Second, usual sources of data are complemented with various other sources. This allows the inclusion of recent heavy users like China, Russia, Taiwan and Ukraine, which are ignored in similar studies but important for their trade volumes. This enlarged and updated dataset shows that new users are even more important than previously thought, with implications for the Doha negotiations.     

What should we call this color? The influence of color-naming on consumers' attitude toward the product

Many companies use unique color names to differentiate products, attract consumer attention, and promote sales. This study categorizes the names of colors in detail, and uses schema incongruity and affect regulation theory to elucidate the effects of color names with different typicality and ambiguity. We identify the underlying mechanism and explore how color attribute importance and color name valence moderate the effects of the color name. The results of five studies show the following: (a) atypical-low ambiguity color names (vs. atypical-high ambiguity and typical color names) create a more favorable consumer attitude toward the product; (b) when color is the primary attribute of the product, typical color names are more effective; when color is a secondary attribute, atypical color names yield more favorable effects; (c) for positively-valenced color names, an atypical-low ambiguity naming method yields a better response, while for negatively-valenced color names, an atypical-high ambiguity naming method yields a more favorable response; and (d) the color-naming effects are mediated by perceived product uniqueness or playfulness, depending on different conditions.