The role of interdependent self-construal in consumers’ susceptibility to retail salespersons’ influence: A hierarchical approach

Based on a sample of 300 consumers, this paper develops and tests a hierarchical model that examines the effect of interdependent self-construal on consumers’ susceptibility to salespersons’ influence. Structural equation modeling shows that the relationship between the two constructs is mediated by several situational factors via two prediction paths. Along one path, interdependent self-construal positively affects consumers’ susceptibility to interpersonal influence, which is positively connected to consumers’ susceptibility to salespersons’ influence through the mediation of consumers’ susceptibility to store atmosphere influence. Along the other path, interdependent self-construal is positively correlated with public self-consciousness, which is then positively associated with consumers’ susceptibility to salespersons’ influence. Discussions on theoretical, practical and future research implications are provided.     

Initiating Negotiations: The Role of Machiavellianism, Risk Propensity, and Bargaining Power

Initiation is an often-overlooked yet essential stage of the negotiation process. This study examined the effects of two measures of personality—Machiavellianism and risk propensity—and relative bargaining power (as based on multiple situational factors) on three phases of the initiation process—engaging a counterpart, making a request, and optimizing the request. Using a multi-scenario approach, one hundred fifteen participants indicated their initiation preferences for three distinct negotiations. The results of repeated measures ANOVAs indicate that bargaining power influences an individual’s decision to initiate negotiations. In addition, those high in Machiavellianism choose to initiate negotiations even when relative bargaining power is low, whereas those high in risk propensity tend to optimize their requests. The implications of these findings for practitioners and future research are discussed.     

Brand choice and varying quantity of information

The research reported here examines the impact of varying information on brand choice decisions and the relationship between brand choice and consumers' confidence, satisfaction, and the assumptions they make about undisclosed information.     

Boundary conditions of the impact of a hypervigilant coping style on the subjective decision‐making experience

Two experiments explored how characteristics of the task environment and the consumer's propensity to a use a hypervigilant coping style interacted to influence ratings of perceived information amount, choice difficulty, decision‐process–related satisfaction,choice deferral, and the desire for decision assistance. Results indicate a series of main effects of time pressure on the dependent measures across two different choice scenarios. In addition, the findings suggest that a propensity to use a hypervigilant coping style seems to have little influence on the subjective decision‐making experience. Theoretically, this research establishes boundary conditions under which decision‐process–related thoughts, feelings, and behaviors are not likely to be influenced by coping style, and extends prior work on the determinants of choice deferral and the desire for decision assistance. © 2006 Wiley Periodicals, Inc.     

Making a first impression as a start-up: Strategies to overcome low initial trust perceptions in digital innovation adoption

High failure rates of digital innovations by start-ups indicate that consumers' initial trust perceptions are make-or-break for their survival. Hence, start-ups have to design adequate business models to manage consumers' initial trust perceptions of digital innovations. Five experiments explore how start-ups can signal trustworthiness in order to overcome low initial trust perceptions and boost adoption. We find three specific design strategies of start-ups' digital business models – customer ratings, benefit communication, and revenue model – to be effective to overcome low initial trust perceptions and to increase adoption of digital innovations. The findings demonstrate that initial trust serves as a critical mediator in the relationship between these design strategies and consumers' adoption intentions. Additionally, the chosen revenue model has differential effects on privacy concerns, which mediate the relationship between revenue model and initial trust. The present empirical insights help start-ups to craft business model design strategies for successful digital innovation launch.     

Dazing Diversity: Investigating the Determinants and Consequences of Decision Paralysis

This article makes new contributions to the assessment of negative effects on consumer choice behavior due to high product variety by (1) developing a holistic framework to identify the determinants and, for the first time, consequences of decision paralysis; (2) introducing a novel construct, namely, tendencies toward paralysis, that refers to the extent of decision makers’ preference (a) to maintain the status quo, (b) to omit, and/or (c) to delay choice, as well as providing an appropriate measurement model incorporating these three dimensions of decision paralysis that previously have been analyzed only separately; and (3) analyzing potential moderating effects of decision makers’ predisposition toward maximizing on the proposed model. The developed structural equation model as well as the conceptualization and operationalization of the novel construct are verified using data from the German cellular phone market. The model constructs of preference uncertainty and anticipated regret are evidenced to be the fundamental drivers of the formation of tendencies toward paralysis. In this context, the characteristics of variety under consideration—number, alignability, and complexity of alternatives—turn out to be appropriate parameters in avoiding decision paralysis. Moreover, a significant negative relationship between tendencies toward paralysis and subsequent customer satisfaction points out the importance of these findings for future research and business practice.     

Effects of inflation on consumer choice

Possible effects of a nonhomogeneous inflation on consumer choice among brands of energy-using durables are considered. For this purpose price differentials among brands are regarded as “investments,” while operating costs differentials are viewed as “returns.” Using a life cycle-cost approach, it is shown how inflation may affect consumers' critical implicit rates of return and ultimately their brand choice. Empirical observations which support the theoretical results are provided.     

Shaping consumer preference using alignable attributes: The roles of regulatory orientation and construal level

The structural alignment literature suggests that people place more weight on alignable (vs. nonalignable) attributes when evaluating competing options. The present research proposes that consumers' regulatory orientation moderates this process. Specifically, consumers differentially weight alignable versus nonalignable attributes depending on whether they are prevention or promotion-oriented. Results of four studies indicate that prevention-oriented consumers who tend to construe information at a more concrete level rely more on alignable attributes when evaluating two options as compared to promotion-oriented consumers who tend to construe information at a more abstract level, and are influenced more by nonalignable attributes. The authors further show that consumers' construal level and differential ease of processing the two types of attributes mediate the influence of regulatory orientations on their relative weighting of alignable versus nonalignable attributes and product evaluations.     

Choice deferral: The interaction effects of visual boundaries and consumer knowledge

Choice deferral is a common and lousy phenomenon for companies and consumers. This research examines how visual boundaries (by-alternatives vs. attributes) interact with consumer knowledge to influence choice deferral. Five studies (N = 1,245) and two single-paper meta-analyses demonstrate that by-alternative (vs. attribute) visual boundaries reduce choice deferral and that choice difficulty mediates this effect. The research also shows that these effects are stronger for less knowledgeable consumers. However, the interactive effect of visual boundaries and consumer knowledge on choice deferral depends on task and context characteristics. We discuss future research about choice deferral moderators and how to facilitate consumer choice.     

The distinct influence of power distance perception and power distance values on customer satisfaction in response to loyalty programs

In today's fiercely competitive environment, firms are increasingly relying on loyalty programs to influence customers' repeat purchase behavior. However, little is known about how customers' cultural values shape their satisfaction in response to loyalty programs. Such knowledge is important because it allows marketers to identify cultural segments that may be more or less likely to respond favorably to loyalty programs, and hence increase the effectiveness of such programs. In the current research, we propose that power distance perception — defined as the extent to which people observe power disparities in society — positively influences satisfaction of customers who hold loyalty status, but negatively influences satisfaction of customers who do not hold loyalty status with a firm. In contrast, power distance values — defined as the extent to which people endorse power disparities in society — negatively influences satisfaction of customers who hold loyalty status, but positively influences satisfaction of customers who do not hold loyalty status with a firm. A quasi-field study and several lab experiments support these propositions, shed light on the underlying mechanisms, and rule out alternative explanations. Our findings also uncover several distinct tools that marketers could use to influence non-loyalty status and loyalty status customers' satisfaction with businesses.     

Do Consumers Care About Ethical-Luxury?

This article explores the extent to which consumers consider ethics in luxury goods consumption. In particular, it explores whether there is a significant difference between consumers’ propensity to consider ethics in luxury versus commodity purchase and whether consumers are ready to purchase ethical-luxury. Prior research in ethical consumption focuses on low value, commoditized product categories such as food, cosmetics and high street apparel. It is debatable if consumers follow similar ethical consumption patterns in luxury purchases. Findings indicate that consumers’ propensity to consider ethics is significantly lower in luxury purchases when compared to commoditized purchases and explores some of the potential reasons for this reduced propensity to identify or act upon ethical issues in luxury consumption.     

When self‐customization backfires: The role of a maximizing mindset

Self‐customization in online shopping contexts readily offers an abundance of options for consumers. However, the sheer amount of information can quickly become overwhelming. One way to give people the freedom to choose without overwhelming them with information is to simplify the decision process by breaking it down into a series of smaller steps. Contrary to a common assumption that simpler decisions increase choice likelihood, however, this study demonstrates that a simple by‐attribute self‐customization process may activate a maximizing mindset, which increases people's desire to find better options and decreases their satisfaction with the ones available. Consequently, simplifying the self‐customization process can sometimes backfire by decreasing choice likelihood. Three studies suggest that although by‐attribute self‐customization formats are easier to choose from, compared with more complex matrix formats, they may sometimes—paradoxically—increase choice deferral. The findings suggest that a maximizing mindset mediates this effect, casting doubt on information‐based alternative explanations. The findings also suggest that whether by‐attribute self‐customization increases or decreases choice likelihood may depend on the presence of objective quality cues, which indicate that an objectively‐best option can be found. This study furthers the understanding of how decision difficulty and maximizing influence self‐customization decisions.     

How May Consumer Policy Empower Consumers for Sustainable Lifestyles?

AbstractConsumer policy can empower consumers for changing lifestyles by reducing personal constraints and limitations, but it should also attempt to loosen some of the external constraints that make changes towards a more sustainable lifestyle difficult. In terms of reducing consumers’ subjectively felt restrictions on their ability to change lifestyle, the two approaches are equivalent. Policies that increase a feeling of empowerment may also have a positive effect on consumers’ motivation to make an effort, thus amplifying its effects. In this paper both types of constraints on lifestyle changes in a sustainable direction are discussed as well as policies for reducing constraints. Possible motivational effects of the proposed policies are also outlined.     

“顾客满意—顾客遗憾”矩阵与“顾客重购倾向”管理

影响“顾客重购倾向”的两种基本因素是顾客满意和顾客遗憾,二者对“顾客重购倾向”的作用机理是完全不同的。可用顾客满意和顾客遗憾这两个顾客心理变量构建一个影响“顾客重购倾向”的“顾客满意———顾客遗憾”矩阵,通过该矩阵企业可以把自己的产品在其中进行对号入座,以便发现企业产品存在的问题,并采取针对性的营销策略来有效控制和影响“顾客重购倾向”。     

Conflicts and Regrets in the Venture Capitalist–Entrepreneur Relationship

The goal of this paper is to examine whether conflicts with venture capitalists (VCs) could prompt chief executive officers (CEOs) to experience regret of action (regarding their poor partner choice) or regret of inaction (regarding their own inability to avert conflict). We argue that it is important to examine such feelings of regret that could motivate CEOs to change their financial intermediation and collaboration strategies in the future. We propose that VCs and CEOs may experience two types of conflict: (1) pacing conflicts regarding the direction and speed of venture advancement driven by perceived inequities in economic and social exchange; and (2) prerogative conflicts about the allocation of control rights and relationship issues driven by the perceived inequities in power relations. We hypothesize that pacing conflicts will be related to increasingly intense prerogative conflicts, whereas the latter will be associated with both types of CEO regret. The proposed model is tested with structural equation modeling techniques applied to the data collected from104 CEOs of VC‐backed ventures. All the hypotheses are supported. Our main finding is that CEOs appear to be ambivalent about their conflict with VCs, regretting both their prior choices as an error of judgment (regret of action) and their own lack of initiative (regret of inaction).     

How anticipated regret influences the effect of economic animosity on consumers’ reactions towards a foreign product

We use regret theory to explain the negative effect of economic animosity on consumers’ reactions towards a foreign product (i.e., product judgment and reluctant to buy). We conduct our study in Taiwan by collecting data via an online survey. Our results show that consumers’ economic animosity increases their anticipated regret towards purchasing a foreign product originating from a target market of animosity. Specifically, anticipated regret is found to mediate the link between economic animosity and foreign product judgment, which in turns affects consumers’ reluctance to buy. Our study is the first to consider the role of anticipated regret in explaining the negative effect of economic animosity on consumers’ reactions towards a foreign product. We also contribute to research by introducing two antecedents of economic animosity: perceived economic competition and consumer ethnocentrism.     

Situational price sensitivity: the role of consumption occasion, social context and income

Research on consumer reaction to price has been largely confined to examining consumers’ price information search, evaluation of price alternatives, and individual purchase behaviors without regard to situational influences. At the same time, consumption has often been dichotomized in terms of its functional-hedonic nature and has been examined with regard to social influence. Surprisingly, researchers have heretofore not examined the potential effect of the consumption occasion or social context on consumers’ price sensitivity. Further, research examining the effect of household resources on price sensitivity has produced mixed results. We argue that household income effects on price sensitivity are dependent upon the situation. This research addresses two key issues. First, we examine whether individuals are equally price-sensitive when purchasing products for functional (e.g., purchasing frozen vegetables or paper towels) versus hedonic (e.g., purchasing ice cream or cookies) consumption situations and whether social context (i.e., consuming the product alone or with others) influences price sensitivity. Second, we explore the interaction effects of household income and consumption context on price sensitivity. We examine these issues across a series of three studies, finding that consumers’ price sensitivity is in fact attenuated by both hedonic and social consumption situations and that income moderates these effects. Implications for researchers and practitioners are discussed.     

The Effect of Set Composition on Stopping Behavior in a Finite Search Among Assortments

The process by which individuals make sequential searches among choice sets prior to choosing a single item is examined. Economic search theory prescribes that such searches should be made by focusing on expectations of the maximum utility likely to be found in each set, ignoring external features of sets such as their complexity. Empirical research in psychology, however, suggests that search behavior may be highly influenced by set features, most notably a tendency to defer choices from sets that are perceived as difficult to evaluate. An experimental investigation of choice-set search reveals that stopping decisions are indeed influenced by normatively irrelevant external features of sets, but not in a way that is completely consistent with previous work on context effects. In particular, we find that individuals are likely to stop sooner in search when encountering larger versus smaller choice sets (holding their maximum utilities constant), and decisions to stop are unaffected by two traditional measures of difficulty: whether a choice set lacks dominant options and the similarity of overall utilities of options in a set. Implications of the work for the ability to generalize findings in static choice to dynamic task settings are explored.     

Too much of a good thing? Consumer response to strategic changes in brand image

The current research investigates a potential disadvantage of building brand associations that resonate with consumers' identities and facilitate consumer–brand bonding. The authors propose a theory of consumer response to changes that either dampen or augment the associations central to brand image (e.g., due to brand acquisitions or repositioning). The results show that consumers with a high degree of self–brand connection respond more negatively than others do to changes that dampen brand associations. Counterintuitively, changes augmenting brand associations can also lead to unfavorable consumer sentiments in certain instances. When brand connection was linked to an ideal self-identity (i.e., self-enhancement motives), changes that augmented the brand image increased the brand's ability to signal an ideal identity. Conversely, when brand connection was linked to the actual self-identity (i.e., self-verification motives), augmenting brand image reduced the perceived similarity between the self and the brand, thus causing brand identification to deteriorate.