Experiential goods with network externalities effects: An empirical study of online rating system

This paper uses online users' reviews and sales information from May 2003 to March 2007 to study a new experiential product: online video game (or virtual world). The results suggest that, first of all, for a hedonic product such as an online video game, the availability of online review system could not fully transform experience attributes into search attributes. The empirical study confirms that negative word-of-mouth has more significant impact than positive reviews. The study empirically verifies that the existence of direct network externalities (i.e. a product's value increases when more consumers join the network) is crucial for a hedonic product. The size of the user base signals the quality of the game, and works like a search attribute for potential users. A large user base will reduce the negative impact from unfavorable reviews.     

User Reviews Variance,Critic Reviews Variance,and Product Sales: An Exploration of Customer Breadth and Depth Effects

Online user reviews constitute a new element of the marketing communication mix that can significantly affect product sales. A general consensus holds that positive user reviews valence benefits product sales, yet the effect of variance is less intuitive and current findings are mixed. We propose that user reviews variance actually constitutes a double-edged sword that can either hurt or help product sales, depending on the variance of critic reviews and other quality signals. Three complementary studies in multiple industries (movies, digital cameras, and books) with multiple methods (secondary data analysis and behavioral experiment) reveal three key insights in this setting. First, after recognizing a high variance in user reviews, many potential buyers may simply exclude the focal product from their consideration sets for fear that it does not match their needs and preferences, which is termed the customer breadth effect. Second, high user reviews variance, in combination with high critic reviews variance, can elicit a sense of uniqueness and thus enhance purchase intentions of some consumers, which is termed the customer depth effect. Third, quality signals (e.g., product cost and product extension) can strengthen the positive customer depth effect. The overall effects of user reviews variance, therefore, can be negative, insignificant, or even positive. These findings have important theoretical and managerial implications.     

Verticality in product labels and shelves as a metaphorical cue to quality

This study investigates how subtle visual cues related to the design of a product's package (i.e., label position) and the context (i.e., shelf orientation) influence consumer evaluation and behavioral intention. Extending research on metaphorical cues, Study 1 shows that consumers perceive a product as more powerful when the label on the package is placed in a higher (vs. lower) vertical position. Extending the focus from package design to the display context of packages, Study 2 shows that consumer perception of a product's power is similarly enhanced when the package is placed on a shelf that is vertically (vs. horizontally) orientated. Across both studies effects of enhanced power perception extend to positively influence product quality inferences and behavioral intentions. These findings add to current knowledge on metaphorical cues in package design and the package's presentation context and offer insights into the underlying mechanism.     

Interactive influence of genre familiarity,star power,and critics' reviews in the cultural goods industry: The case of motion pictures

Academic research pertaining to the marketing of cultural products such as Broadway shows, books, music, and movies has identified a product's genre (or type), star power, and critics' reviews as important factors influencing the market performance of an individual product. Prior research, however, has not investigated the joint influences of these factors. The current study extends previous research by empirically investigating the managerially relevant interactive influences of these factors within the context of the motion‐picture industry. For example, should producers of more familiar genre movies, such as dramas and comedies, feature popular, but expensive, stars? Real‐world data from two distinct time periods are used to test the hypotheses. The findings are consistent across the two time periods and reveal that for more familiar genre movies, star power and the valence of critics' reviews have less impact on the movie's performance in the market. In contrast, for the less familiar genre movies, stronger (vs. weaker) star power and more (vs. less) positive reviews have positive influence on the market performance. Further, for movies with less star power, the valence of critics' reviews has no impact on the performance. In contrast, for movies with greater star power, more (less) positive reviews have positive (negative) influence on movie performance. Managerial and theoretical implications, along with limitations of the findings and directions for future research, are offered. © 2005 Wiley Periodicals, Inc.     

The Effect of Stylistic Product Information on Consumers’ Aesthetic Responses

This paper investigates the effect of stylistic information about a product, defined as verbal product information aimed at helping consumers to interpret a product's visual design, on consumers’ aesthetic responses. The results of three experimental studies show that for consumers with higher centrality of visual product aesthetics (CVPA), stylistic information positively influences aesthetic responses through perceived meaningfulness of product design (i.e., the extent to which an individual is able to make sense of a product's visual appearance and understands what it represents). Further, these effects translate into consumers’ purchase intentions. For consumers with lower CVPA, stylistic information neither affects aesthetic responses nor perceived meaningfulness of product design. These findings contribute to existing research on consumers’ aesthetic processing by highlighting the importance for consumers to grasp a product's design meaning in order to maximally appreciate its visual appeal.     

The influence of thematic product displays on consumers: An elaboration‐based account

Marketers commonly adopt a theme to unify their design of an environment in which their products are displayed. A thematic display environment can be congruent with or unrelated to the concept of a product on display. The elaboration likelihood model and the knowledge activation literature suggest that conceptual congruence between the thematic display context and the product could affect product evaluation by a cue‐based mechanism and an elaboration‐based mechanism. First, the positive feeling associated with conceptual congruence serves as a peripheral cue, making product evaluation favorable. Second, the congruence provokes thoughts about the product's attributes, and these attribute‐related thoughts affect product evaluation. Whether the evaluation is dominated by the affective cue or attribute thoughts depends on the consumer's shopping motivation (planned purchase vs. browsing), because the motivation affects the consumer's elaboration likelihood. The results of three experiments support these propositions. The results indicated that under planned purchase motivation, the congruence effect on purchase intention through attribute‐related thoughts was observed. In contrast, under browsing, the congruence effect on purchase intention was dominated by a direct positive effect that reflected the influence of the affective cue. Implications of the findings for visual merchandising are discussed.     

How managerial responses to online reviews affect customer satisfaction: An empirical study based on additional reviews

This study investigates the internality of managerial responses (MRs) to online reviews on the responded customers' (i.e., customers who have posted an initial review and then being responded by the company through an MR) satisfaction. By utilizing the data of additional reviews (ARs), an innovative social media module for customers to express follow-up opinions that complement their initial reviews, we examine the impact of MR treatment on the customers' AR valence. We leverage the insight that the observability of MR at the time of the responded customer posts an AR is a crucial condition to the impact of the MR, and thus regard the observability of MR as an exogenous treatment for model identification. Fixed effects models with extensive control variables are proposed to estimate the MR treatment effects. The results show that MRs have significant positive impacts on customers' satisfaction in ARs. Further explorations show that the positive impacts are mainly due to the positive effects of MRs on nonpositive initial reviews (MR-Ns), suggesting that MR-Ns are an effective management tool for customer complaints. Moreover, this study identifies MR delay as a boundary condition for the internality of MRs because MR delay negatively moderates the positive impacts of MRs. Therefore, companies should promptly respond to customers' negative opinions in their reviews. This study is among the very first to clearly identify the internality of MRs on the responded customers’ satisfaction. We show that the existing results on the externality of MRs are not directly applicable to the internality of MRs, highlighting the novelty of this study. The obtained new insights provide practical guidelines for companies to adjust their intervention strategies on e-commerce platforms.     

The product development process of an enterprise from an SSME perspective

This study empirically explores a real-world manufacturer product development process from a service science perspective. In this era of keen global competition, the process of product development is crucial for companies before the final product is launched to the market. The poor development of a product can fail to meet customer needs and result in product failure, which can even lead to significant losses for manufacturers. However, traditional product development processes are much more manufacture-oriented rather than customer-involved. In this paper, we aim to use the Service science, management, and engineering (SSME) perspective, proposed by IBM, to improve product demand asymmetries by discovering true user requirements in order to enhance customer involvement and lead to better product development. We show how SSME is applied in the context of product development and in the discovery of customer needs, and propose a modified process based on SSME to the product development process.     

“Autonomous,yet Connected”: An esthetic principle explaining our appreciation of product designs

Esthetic principles describe the levels or combination of design dimensions that are esthetically appreciated. Current principles focus on dimensions connected to product design itself (e.g., unity and variety) or dimensions that refer to a product design's relationship to other product designs (e.g., typicality and novelty). However, product design also has a social significance—they help consumers shape their identity—and this social dimension has hitherto been overlooked in research on esthetic appreciation. In this paper, we propose and investigate the social esthetic principle “Autonomous, yet Connected.” In four studies, we show that a product's design leads to the highest esthetic appreciation if it strikes an optimal balance between nurturing the two seemingly opposite needs for connectedness and autonomy. Further, we show how conditions of safety and risk moderate the effects of the principle, which suggests our principle may have evolutionary grounding.     

Engaging Customers through Social Media to Improve Industrial Product Development: The Role of Customer Co-Creation Value

This study aims to investigate the effect of social media on customer loyalty with the mediation of customer co-creation value and to build a customer engagement model through co-creation value, which is supported by product improvement perceived in increasing customer loyalty. The data collection employed a survey method with structured questionnaires which were distributed to 150 respondents who were the members of social media product communities in Indonesia. The findings showed that interactions through social media are able to increase customer engagement, facilitaitng collaboration in co-creation value, allowing the company to improve and develop products based on customers' needs and desires, which will eventually increase customer loyalty.     

Ownership Sentiments Towards the Customer Care Function in E-Business Situations

ABSTRACT

Effective management of customer care is critically important for successful electronic commerce. The executive in charge of the customer care function in a business based on e-commerce might have a technical IT background, a marketing background, or be from general management. This empirical study examined the degrees to which a sample of 86 marketing and IT managers responsible for customer care in e-commerce environments felt they “owned” the customer care function, and the antecedents and consequences of powerful ownership sentiments. It emerged that heads of department with marketing backgrounds reported significantly stronger feelings of ownership of customer care than heads with IT backgrounds. The level of ownership sentiment varied with respect to the extent of the personal investment a manager had devoted to developing the customer care function, the belief that he or she was an expert in customer care, the person's commitment to the organisation as a whole (rather than to a specific function within it), and the degree of centralisation of the firm's decision making. People who felt strongly that they owned their company's customer care function experienced a heavy sense of responsibility for its effective management. However, the same individuals were more likely to be in conflict with managers of other departments and to resist change.     

Exploring the conditions under which salesperson work satisfaction can lead to customer satisfaction

A number of recent research studies have demonstrated the presence of a positive link between customer‐contact employees' work satisfaction and customer satisfaction. However, existing studies have largely neglected describing conditions under which the link between these two constructs is stronger or weaker. The authors of this study argue that certain customer characteristics (such as customer trust, customer price consciousness, and the importance of product/service to the customer) and salesperson characteristics (such as empathy, expertise, and reliability) moderate the relationship between salespeople's work satisfaction and customer satisfaction. Balance theory is used to justify the hypotheses of the study. Tests of the hypotheses are based on a dyadic data set collected across manufacturing and services industries in a business‐to‐business context. Results reveal that the link between work satisfaction and customer satisfaction is systematically moderated by the salesperson and customer characteristics under consideration. © 2005 Wiley Periodicals, Inc.     

Perceptions of older consumers regarding food packaging as a prerequisite for its improvement: A case study of Polish market

In many societies, the scale of demographic change associated with increased longevity has the potential to influence the market for consumer goods. As a result, continuous improvement in packaging design that takes into account the needs of older people should become an important challenge for both packaging producers and product manufacturers. Due to the fact that there is limited research concerning the design of food packaging for older people, the aim of the study was to identify the expectations of this group of consumers in this respect. Milk packaging was selected as a model subject of study. Factors influencing older consumers and their buying patterns when purchasing milk have been thoroughly examined. The research was conducted among people over the age of 60 with the use of three methods: a questionnaire (600 subjects), an in‐depth interview (60 subjects) and eye tracking (30 subjects). The results of the study show that older consumers have specific preferences regarding packaging type and design. When considering milk packaging, for example, they prefer glass bottles, simple graphics and font and subdued colours. They most frequently look for information concerning the product's expiration date, its producer's name and its composition. Eye tracking revealed that the older the consumers are, the more problems with finding expiration date they have. The time required to find such information, however, strongly depends on where exactly the expiration date is printed on the packaging. The preferred place in this case is the top of the bottle. Older consumers identify product's brand with the name of the producer. Moreover, the absence of the term ‘ingredients’: on the milk packaging oftentimes causes confusion among older people, who are concerned about potential food additive content.     

National advertising,dual-channel coordination and firm performance

With the rapid development of e-commerce, many manufacturers nowadays opt to open an online channel to engage in direct online sales. The mix of retailing with an online channel adds a new dimension of competition and complementarity to a product's distribution channels. Our model focuses on the strategic effect of the manufacturer's national advertising on alleviating the channel competition. We use a game-theoretical model to show that opening an online channel with the added national advertising effectively alleviates the channel conflict and thus helps improve the whole channel and each channel member performance. Depending on the different product categories and the degree of channel substitutability, the manufacturer's investment in the national advertising also will be different. The value of national advertising increases as product is more compatible with online sales and channel substitutability increases.     

Positive uncertainty: the benefit of the doubt in advertising

Positive uncertainty refers to uncertainty surrounding an anticipated positive outcome. It provides consumers with the opportunity to imagine and speculate on a product's or experience's potentially positive characteristics. Research has shown that when uncertainty is associated with something positive, consumers may prefer uncertainty to certainty. In a between-subjects experimental design with a large US (n = 446) and Japanese sample (n = 453), the present study demonstrates that positive uncertainty increases consumers’ positive feelings when they evaluate a product, particularly for high-involvement products that allow consumers to imagine and speculate about potentially positive product benefits. Unexpectedly, the study findings are consistent across the two different markets, which vary substantially in terms of consumers’ level of uncertainty avoidance. Specifically, results show that future-framed advertisements are effective in generating positive uncertainty and that positive uncertainty generates positive attitudes, both in countries scoring high (Japan) and low (USA) on uncertainty avoidance.     

Active or avoidance coping? Influencing mechanisms of streamers' coping strategies on viewers’ word of mouth after livestreaming e-commerce failures

Livestreaming e-commerce, as an emerging form of e-retailing and livestreaming monetization, is developing rapidly throughout the world. In the realm of livestreaming e-commerce, streamers inevitably need to cope with potential failures. However, few existing studies have examined livestreaming e-commerce failures, making it difficult to understand what strategies streamers can utilize to cope with these failures and how different strategies influence viewers' word of mouth (WOM). Building on social exchange and attribution theories, this study proposes two types of coping strategies (active and avoidance coping) and establishes a moderated-mediation model to explore the differential impact mechanisms of these coping strategies on viewers' WOM. Based on two-wave time-lagged data collected among 251 consumers who had experienced livestreaming e-commerce failures, results of a PLS-SEM analysis show that active coping has an indirect positive impact on viewers' WOM, while avoidance coping has an indirect negative impact on viewers’ WOM, both of which are fully mediated by cognitive and affective trust. Livestreaming e-commerce failure severity weakens the indirect negative effect of avoidance coping on WOM via both cognitive and affective trust. These findings advance our understanding of service recovery mechanisms in the context of livestreaming e-commerce failures and indicate that streamers can utilize active coping to alleviate the negative impacts of livestreaming e-commerce failures and recover from the failures.     

Consumers' experiences of cold chain food packaging: A qualitative study among women in South Africa

Food packaging defines a product's uniqueness and strengthens consumers' relationship with a brand, in this way offering functional and experiential benefits. Although cold chain food is predicted to become even more important to consumers, consumers' experiences of the packaging of these products have been neglected in the literature. Thus, this exploratory study investigated these experiences of female participants in Potchefstroom, South Africa, using semi‐structured interviews and a projective technique assisted by ambiguous mock packaging. The findings reveal that despite marketers' intention to use packaging to lure consumers to purchase food products, participants also valued functionality and quality in cold chain food packaging. This study also identified a dislike of carton boxes and preference for plastic bottles for this kind of packaging, as well as further negative and positive characteristics for consideration by manufacturers. Although brand loyalty and price sensitivity were stronger considerations for some participants than the packaging, the latter seemed to play a pre‐eminent role in most participants' purchasing decisions. Therefore, it is recommended that when designing packaging for frozen and refrigerated foods, product developers and manufacturers should take into account consumers' experiences, requirements and needs of the packaging specific to cold chain food. Our research offers a starting point for designing cold chain food packaging that complies as closely as possible with consumers' expectations.     

Impact of Consistency in Customer Relationship Management on E-Commerce Shopper Preferences

Customer Relationship Management (CRM) in e-commerce is concerned with retaining the existing customers on a long-term basis, motivating them to come back to shop for more and to talk positively to their peers about the products and services provided. Fourteen items have been identified in a developed questionnaire to measure CRM factors in consistency of customer treatment. They are consistencies of: price-quoting, steps to execute a transaction, design of the shopping Web page, site navigation, promotions offered, indication of in-stock products, product variety, alternative product suggestions, fraud protection, presented guarantees involving the product, fairness of the site, help offered, return policies, and personal information. To determine the validity of the items, 100 e-commerce experts from academia were presented the questionnaire and asked to rate the importance of the individual items. The developed tool had a Cronbach's Alpha internal consistency value of 0.81. A multivariate analysis was conducted to cluster the aspects of consistency in CRM. For this purpose, two factors were identified: Technical and Customer Treatment Factors. The individual Cronbach's Alpha values were 0.84 for Treatment Factor and 0.74 for Technical Factor. The analysis indicated that the Technical Factor included the consistencies of shopping steps, site design, and navigation, while the Customer Treatment Factor included the consistencies of promotions, in-stock indication, product variety, fraud protection, presented guarantees, customer fairness, and return policies. Based on the analysis, 10 guidelines for Consistency in CRM were produced. The guidelines can be applied to Business-to-Consumer (B2C) e-commerce sites as part of their CRM policy.     

All or Nothing in Sensory Marketing: Must All or Only Some Sensory Attributes Be Congruent With a Product’s Primary Function?

Given the challenges and costs of implementing high sensory congruence, this article examines whether all sensory attributes, such as product color and ambient music, must match a product's primary function to ensure favorable product evaluation or whether a match of only some sensory attributes is sufficient. For this purpose, we consider multiple sensory attributes and their fit with a product's primary function in terms of key semantic associations. In contrast with approaches that focus on a single sensory attribute and its fit with a product's primary function, this approach allows investigating the impact not only of high versus low sensory attributes–function congruence but also of partial sensory attributes–function congruence. We conduct three experimental studies in online and field settings and two product settings (cooling and heating pads) that consider sensory attributes at the product and ambience level across the senses of vision, smell, and hearing. Our findings show that depending on its type, partial sensory attributes–function congruence can lead to favorable product evaluation similar to high sensory attributes–function congruence or unfavorable product evaluation similar to low sensory attributes–function congruence. Thus, sensory attributes–function congruence has non-linear degressive or progressive positive effects on product evaluation. Overall, these findings indicate that if properly designed, a match of only selected sensory attributes with a product's primary function can indeed lead to sufficiently favorable product evaluation and, thus, help avoiding unnecessary effort in implementing high sensory congruence.