Loyalty program rewards and their impact on perceived justice,customer satisfaction,and repatronize intentions

This study examines three types of rewards in a retail loyalty program context (under-reward, equity-reward, and over-reward) and their impact on perceived distributive justice, customer satisfaction, and repatronize intentions. The results from a between-subjects experiment showed that equity-reward produced higher levels of perceived distributive justice than both under-reward and over-reward. Moreover, equity-reward and over-reward produced higher levels of both customer satisfaction and repatronize intentions than did under-reward. Yet there were no differences in satisfaction and repatronize intentions for equity-reward and over-reward. These outcomes suggest that loyalty programs have the potential of not boosting members' loyalty, at the same time as they may reduce loyalty among non-members.     

Consumer Cynicism toward Collective Buying: The Interplay of Others’ Outcomes,Social Value Orientation,and Mood

This research examines whether consumer cynicism about collective buying depends on consumers’ observations of fellow buyers being treated unfairly in a cobuying context. Prosocial consumers should differ from proself consumers in their level of cynicism, because they value equality in outcomes. Study 1 reveals that prosocials become cynical if others receive an unfair outcome and therefore do not repatronize the provider. This effect does not occur for proselfs. Study 2 shows that mood mediates this effect. Specifically, when prosocial consumers are in a positive mood, the others’ outcomes no longer influence their cynicism. © 2012 Wiley Periodicals, Inc.     

Customers on the web are not all created equal: the moderating role of internet shopping experience

Consumers' previous shopping experience has been found to be an important influence on future shopping intentions. Prior internet shopping experience, however, has been largely overlooked as a moderator of attitudes and online-retail outcomes. Specifically, key influences on online retail buying behavior such as site reputation, advertising likeability, site security and hedonic and utilitarian shopping values can be expected to have differential effects on intentions to repatronize an e-commerce website based on the level of internet shopping experience by prospective buyers. This study proposes and tests an integrated model in which level of prior internet shopping experience is treated as a moderator of relationships among attitudinal variables and repatronage intentions with the variable attitude toward the site as a mediator of buying intentions. Findings are consistent with the proposed model with an interesting exception. Perceptions of site security were in the opposite direction of the model prediction. Managerial and theoretical implications are provided for consideration.     

The effectiveness of number of deals purchased in influencing consumers' response to daily deal promotions: A cue utilization approach

This research proposes and empirically tests a theoretical model of consumers' response to online daily deal promotions. A unique feature of such promotions is their social influence, as they provide information about how many others have already purchased the offer. Integrating cue utilization and social influence theories, the model outlines how the social cue about the number of deals purchased by others influences consumers' deal evaluations and purchase intentions across a variety of conditions. The research findings indicate that the number of deals as an extrinsic cue affects consumers' deal evaluations and intentions only when intrinsic product and deal cues (good vs. service, discount size) and consumer personal characteristics (familiarity with the provider) are not present or are insufficient to infer deal attractiveness. The research offers managerial implications with respect to effectively designing and promoting online daily deals.     

For our valued customers only: Examining consumer responses to preferential treatment practices

Preferential treatment is a prevalent relationship marketing practice of companies treating some customers better than others. Using two studies, the authors explore the practice of preferential treatment and show that preferential treatment influences both consumers who receive it and those who do not. Two underlying mechanisms for this effect are identified. When treated unfavorably, fairness concerns arise, negatively affecting consumers' subsequent behavioral response toward the firm. On the other hand, when treated favorably, consumers experience feelings of gratitude, which positively influence their purchase behaviors and word-of-mouth. However, a presence of others who do not get the same treatment leads to feeling of embarrassment, consequently reducing fairness perceptions. As a result, receiving preferential treatment does not always lead to positive attitudinal and behavioral consequences. Overall, fairness and gratitude represent two mechanisms underlying the effect of preferential treatment on consumer subsequent behaviors and each has its distinct antecedents.     

Peer presence promotes popular choices: A “Spicy” field study on social influence and brand choice

Retail research has highlighted how the presence of others can affect consumers' brand evaluations, purchase intentions, and choice behavior. This field study investigated whether the presence (vs. absence) of peers and other consumers, respectively, could influence consumers' propensity to purchase popular brands (i.e., a market leader) within a given product category. Consumers at a supermarket were observed when standing in front of a spice shelf and their choices were analyzed as a function of whether they shopped alone or in the presence of peers versus other consumers. The results revealed that peer presence, but not the mere presence of other consumers, increased consumers' inclination to make popular brand choices, and that this effect was mediated by their stated familiarity with the chosen brand. As such, peer presence seems to increase consumers’ reliance on heuristics and the accessibility of concepts linked to popularity, leading to congruent popular brand choices. Moreover, consumers shopping in the presence of others generally took a longer time before choosing a brand and touched slightly more products in the presence of other consumers. Taken together, these results contribute to theory refinement in social influence from ecologically valid conditions and offer a set of implications for companies, store managers, and people working in the food industry.     

The Impact of “Encouragement” in the Development of Professionals for the Non-Profit Service Sector

Abstract

This study examines the role of perceived intent in the context of penalty evaluation. Based on prior attribution research, the study proposes that customers' responses to penalties are different depending on their perceptions of the organization's intent of using penalties. Using the data collected across the service industry, the study shows that when customers perceive the organization's intent as defensive rather than offensive, their evaluations of the penalty and the organization (e.g., perceived justice, satisfaction, behavioral intentions) are more positive than when they do not. Managerial implications are offered.     

Electronic word-of-mouth (eWOM) generation in new media platforms: The role of regulatory focus and collective dissonance

In this research, we examine the role of two motivational forces associated with creation of electronic word-of-mouth (eWOM): regulatory focus and collective dissonance. Our studies show that generation of eWOM is enhanced by regulatory fit, while traditional WOM is dominated by the negativity effect. In study 1A, we show that prevention-focused consumers produce stronger intentions to post eWOM when they undergo a negative compared to a positive service experience. In study 1B, we find that promotion-focused consumers are more likely to post eWOM in reaction to a positive service experience when one's self-construal is independent. The final study shows that due to collective dissonance, consumers have greater intentions to create eWOM when their experiences are inconsistent with others' postings. We discuss the implications of these results for the development and management of eWOM communication in virtual communities.     

Trying to complain: the impact of self‐referencing on complaining intentions

This paper introduces the Theory of Trying to complaining behaviour, and argues that complaining intentions can be explained by the model. Moreover, we model propensity to self‐reference (SR) as a moderating variable, and suggest that the effects of the causes to complaining intentions depend on the SR‐level held by consumers. A sample of undergraduate business students participated in the study, where the goal was to get a better understanding of complaining intentions. Our study provides new and additional insights in the drivers of complaining by also taking dispositional personality differences into consideration. The results demonstrate that boundary conditions for main‐effect models like the theory of trying can be fruitfully addressed through the notion of individual differences. The research documented that customers' propensity to complain systematically differed as a function of their level of self‐referencing. This is both good and bad news to managers. The good news is that a proportion of the customers rely less on their previous experiences in the complaining domain when they form intentions to complain. The bad news is that some others do. The obstacle is that managers cannot tell by the look if they are talking to an individual with high or low propensity to self‐reference. As the customer base contains both types case could be taken in designing marketing communication campaigns that target the groups differently.     

Understanding Non-Profit and For-Profit Social Marketing on Social Media: The Case of Anti-Texting While Driving

Previous studies suggest that consumers tend to infer more negative motives of for-profit sponsorship on social cause than to non-profits. The current study is aimed at identifying potential effective strategies for for-profit organizations to engage in social marketing efforts. Results showed that participants expressed lower texting while driving intentions when the message was initiated by a non-profit than a for-profit organization. For-profit messages were more likely to elicit desirable persuasive effects if their business offering was congruent with the social cause. Participants' intentions to interact with promotion messages on social media predicted their offline behavioral intentions regarding the promoted behaviors.     

The influence of gender,social cause,charitable support,and message appeal on Gen Y's responses to cause-related marketing

Abstract

This study examined the influence of gender, type of social cause, amount of charitable support, and message appeal on Gen Y consumers' attitudes and purchase intentions towards an apparel brand within the context of cause-related marketing. A questionnaire, with an experimental design component, was administered to a sample of 562 Gen Y college students. Results suggest that Gen Y consumers are more likely to form positive attitudes towards an apparel brand when the amount of the charitable support is clearly communicated. Gender did not influence attitude towards brand, but did predict purchase intentions. Attitude towards brand, subjective norm, evaluation of the advertisement, and involvement in social causes were strong predictors of purchase intentions. When developing CRM initiatives, marketers should consider Gen Y's involvement in a social cause (e.g. volunteerism) rather than their stated interest in the given cause, and they would be well advised to state precisely (in advertisements) the amount of monetary contribution made to charitable causes.     

Informational Cascades,Herding Bias,and Food Taste Evaluations

Herding behavior is observed when consumers simply replicate the behavior of others instead of making their own elaborate decision. This study contains two experiments in which participants are asked to evaluate how good different food products taste under different conditions of induced herding situations. The results of the first experiment show that simply convincing consumers that a herd exists (i.e., informing them of the behavior of others) will influence their judgment of how good the food product in question tastes, and also their purchase intentions and belief in future product success. Whether they are informed about the existence of the herd before or after they taste the product also affects their evaluations. In the second experiment, the characteristics of the herd (who it consists of) are manipulated along with the country from where the food product originates. Here, the characteristics of the herd have significant effects on the evaluation of taste, purchase intentions, and expectations of future product success, whereas country-of-origin has no significant main effects. Theoretical and managerial implications are offered.     

Effects of voice assistant recommendations on consumer behavior

The present study compares the influence of text-based recommendations; traditionally known as online consumer reviews, and the influence of voice-based recommendations provided by voice-driven virtual assistants on consumer behaviors. Based on media richness theory, the research model investigates how voice versus text modality influences consumers' perceptions of credibility and usefulness, as well as their behavioral intentions and actual behaviors. In addition, the study analyses if these relationships vary based on the type of product and compares the influence of masculine and feminine voices. Two studies were conducted using between-subjects experimental designs, partial least squares-structural equation modeling, and logistic regression. The core finding is that voice-based recommendations are more effective than online consumer reviews in altering consumer behaviors. In addition, the first study showed that the influence of recommendations on behavioral intentions is mediated by consumers' perceptions of their credibility and usefulness. The second study confirmed, in a realistic setting, that voice-based recommendations affect consumer choices to a greater extent. Recommendations for search products and provided by males are also found to be more effective. These results contribute to the voice assistant and e-WOM literature by highlighting the effectiveness of voice-based recommendations in predicting consumer behaviors, confirming that credibility and usefulness are key factors that determine the influence of recommendations, and showing that recommendations are more effective when they focus on search products.     

Why do people use and recommend m-wallets?

In recent years, mobile wallets (m-wallets), a special form of mobile payment, have garnered much attention in various emerging markets. M-wallets were designed to offer customers swiftness, ease of use, efficiency, effectiveness, transparency, and accessibility. Despite these benefits, usage intentions and adoption of m-wallets in most emerging markets have been low, and they have not received widespread acceptance. Notably, existing research related to intentions to use (IUs) mobile payments has largely focused on developed economies and mobile payments in general. Additionally, few studies have examined intentions to recommend (ITRs), even though researchers have recognized that word-of-mouth is an important driver of consumer behavior. In the present study, we addressed the lack of specific findings on use and recommendation intentions in the context of m-wallets by conducting a large cross-sectional survey of 1256 smartphone users based on diffusion of innovation theory (DOI). Results revealed that relative advantage, compatibility, complexity, and observability were significantly associated with participants' intentions toward m-wallets. However, trialability had no association with participants’ intentions to use and recommend m-wallets to others.     

Women's responses to fashion media images: a study of female consumers aged 30–59

The purpose of this study was to examine whether female consumers ranging in age from 30 to 59 prefer fashion advertising models more closely resembling their age. The sample for this study consisted of 182 women. Stimuli included full‐colored photographs of current fashion models. A questionnaire designed to explore participants' responses to the stimuli included scales measuring participants' beliefs about the stimulus models' appearances and attractiveness, participants' purchase intentions and perceived similarity with the models and participants' perceived fashionability of the model's clothing. Participants rated models appearing older in age significantly higher than younger models on the characteristics related to appearance and attractiveness. Advertisements with older models also had a significant positive relationship to participants' purchase intentions as compared to younger‐age models. Participants who perceived more similarity to the models were found to have more positive beliefs about the model's appearance and attractiveness and the fashionability of the model's clothing. Perceived similarity also had a significant positive relationship to participants' purchase intentions. As a result of this study, findings suggest that marketers and retailers should consider the age of the model used in their promotional materials. Specifically, it is possible that female consumers either transitioning into, or currently in, the middle adulthood life stages may have a preference for fashion models more closely resembling their age group.     

Ostracizing sources avoid communal tastes: Effect of ostracizing behaviour on extraordinary consumption

Although people often exclude others in their daily encounters and social media interactions, no consumer research on ostracism has solely focused on sources of ostracism. We argue that the influence of ostracism on evasive behaviour is worth investigating since the scant academic investigations on sources are limited to their reparation intentions for their harmful behaviour. Three experiments were conducted to examine the influence of ostracizing behaviour (vs. neutral vs. social interaction) on extraordinary consumption in face-to-face and social media contexts. It was uncovered that sources sense dissonant feelings in dissimilar contexts when their behaviour transcends society's normative boundaries and, hence, prefer consumption that does not commonly appear in society as a means to evade this dissonance. The effect was moderated by sources' justification of their behaviour. We initiate consumer research on sources of ostracism and contribute to the marketing practice of introducing extraordinary consumption options by investigating the psychological consequences of ostracizing behaviour.     

Kick‐starting diffusion: Explaining the varying frequency of preferential trade agreements’ environmental provisions by their initial conditions

Most recent preferential trade agreements (PTAs) include environmental provisions. While a number of these environmental provisions remain rare and are incorporated in just a few PTAs, others are widely popular and are duplicated in more than 100 PTAs. We still lack a convincing explanation for this varying frequency. While the diffusion literature typically tries to explain how diffusion occurs, we investigate why certain provisions diffuse more often than others. We hypothesise that the initial conditions under which provisions first emerge determine the scope of their diffusion. Our results support this hypothesis and indicate that provisions originating from intercontinental agreements diffuse more often than others. At the same time, provisions first designed by economically powerful or environmentally credible countries are not related to more frequent occurrences of diffusion. These findings are of interest for the literatures on international institutions' design, interaction and diffusion.     

Social Networks and Credit Card Overspending Among Young Adult Consumers

Research that has looked at the reasons why young individuals overspend using their credit cards has not paid attention to the perceptions that they have about important others' credit card debt, their expectations as to how much to spend when they consume in the presence of them, and how the strength of the social relationships within their social network potentially influences the extent to which they overspend using their credit cards. A survey of 225 US university students composing a culturally diverse sample revealed that these social norms and network variables have interactive effects on credit card overspending. Specifically, the results show that the perceptions that young adult consumers have about important others' credit card debt impact their overspending using credit cards when they feel that they are expected to consume at the same level as important others in shared experiences, and when they are strongly connected to these individuals.     

Understanding the moderating effect of motivational values on young consumers' responses to luxury brands: A cross-cultural study of South Korea and the USA

By applying motivational values of luxury consumption, this study examined the impact of cultural differences on young consumers' attitudes and purchase intentions toward luxury brands. With the use of survey data (N = 331 for South Koreans and N = 409 for Americans), the study provided support for the hypothesized moderating effect of three perceived values: conspicuous, social, and quality values. The perceived social value was found to influence attitude change favorably among young Korean consumers. The young American consumers tended to increase their attitudes and purchase intentions toward luxury brands if they perceived superior product quality. However, they were more likely to lower their purchase intention as they recognized conspicuous value of consuming luxury brands. On the other hand, the moderating effect of uniqueness and hedonic value was not found. Theoretical and managerial implications were discussed.