A purchase decision support model considering consumer personalization about aspirations and risk attitudes

Ranking alternative products to help consumers make better purchase choices is a valuable research topic. Most previous decision support models cannot be well applied to heterogeneous consumers. This paper focuses on establishing a personalized interactive model to assist consumers make better buying decisions with less effort. For the alternative products provided by consumers, we collect online reviews and parameter configurations of alternative products and then obtain the fusing evaluative information. As consumers are dominated by bounded rationality, they only provide partially key attribute weights, based on which, we construct an optimizing model to obtain the optimal attribute weights of customers for products. Then, a satisfaction function is proposed by uniting aspiration levels and risk attitudes of consumers and a compensatory decision rules is established to rank and recommend the brands to consumers. Finally, practicability of this study is illustrated with a real car purchase case. Through the case study, it can be seen that the proposed decision support model generates a personalized list of alternatives based on consumer's own utility function about risk attitudes, aspiration levels, and preferences for product attributes, which further confirms that the proposed model can capture the personalized needs of consumers. Theoretical and managerial implications of this model as well as advantages are further illustrated.     

Purchase decision regret: Negative consequences of the Steadily Increasing Discount strategy

The Steadily Increasing Discount pricing strategy pits product scarcity against a future discount and forces consumers to make a choice between cost savings and the potential risk of missing the purchase opportunity. Dual non-student samples provide insight into the regret associated with this decision. The first study finds that product scarcity increases both action regret (purchase) and inaction regret (non-purchase) while the level of discount only influences inaction regret. In study two, the individual characteristics of materialism and price consciousness both impact the decision to buy, only materialism influences purchase decision regret. Theoretically, the results reverse the omission bias, demonstrating that regret from inaction is more salient than regret from action in this purchase situation. The studies underscore the high-risk, high-reward nature of multi-period pricing for managers. While firms control product availability and discount levels, they cannot control their customers' personality traits. Therefore, they should make every effort to understand their customers before embarking on such a strategy.     

Do online sales channels save brands of global companies from consumer boycotts? A geographical analysis

This study empirically investigates the link between global companies' brand strength and consumers' actual purchase behavior by considering online purchasability and the geographical area in the context of boycott campaigns. To test the hypotheses, we employ a hierarchical multiple regression model using online survey data collected from 571 South Korean consumers. Our findings reveal that online purchasability with strong brand strength could be a beneficial strategy for global companies to increase consumers’ actual purchase behavior. Further, non-metropolitan consumers show an increase in actual purchase behavior as compared to metropolitan consumers. This study has implications for global companies to adequately respond to unexpected consumer boycotts.     

Impact of trust and knowledge in the food chain on motivation-behavior gap in green consumption

The motivations and barriers of the actual green purchase behavior are as real as the product itself, which makes it a systematic process to examine the inconsistency between consumers' motivations and their actual behavior (motivation-behavior gap). The study aimed to clarify the direct and indirect effects of motivations on the purchase behavior of green food. The proposed conceptual model was adopted from the Motivation-Opportunity-Ability (MOA) framework and was extended by adding the serial mediation of consumer perceived knowledge and trust as major constructs. Data were collected from 1788 consumers in China. Results provided support for the model and showed that perceived knowledge about the food supply chain could be both barrier and a positive factor of consumers’ purchase behavior, which mainly depends on the trade-off between certification and planting knowledge. Differences in trust exist and consumers hold authorities and certification bodies more accountable than farmers and retailers. For the direct effects, food safety concern is positively associated with behavior, whereas environmental concern is not. Policymakers shall use the results to narrow the motivation-behavior gap, especially for emerging economies.     

A hierarchical analysis of the green consciousness of the Egyptian consumer

This study investigates the influence of various cultural values and psychological factors on the green purchase behavior of Egyptian consumers. Using a large sample of 1093 consumers, a conceptual model has been developed. The survey results provide reasonable support for the validity of the proposed model. Specifically, the findings from the structural equation model confirm the influence of the consumers' natural environment orientation, ecological knowledge, and environmental concern on their attitudes towards green purchase. Consumers' attitudes toward green purchase, in turn, are also found to affect their actual green purchase behavior via the mediator role of green purchase intention. However, one of the other important findings suggests that the link between intention and actual purchase is weak. In other words, on a declarative level, more and more consumers in Egypt express their concern over the ecological situation and declare their willingness to contribute somehow to the protection of environment by buying green products. However, in reality this concern may not be manifested consistently. © 2007 Wiley Periodicals, Inc.     

Just moseying around and happening upon it versus a master plan: Minimizing regret in impulse versus planned sales promotion purchases

This article proposes and tests a model of regret minimization in the consumer decision‐making context of sales promotions. The work examines how regret is minimized in a risk‐avoiding planned purchase by conducting information search and primarily rejoicing afterwards. For risk‐seeking impulse purchases, the model proposes a one‐or two‐pronged strategy for minimizing the regret over lost opportunities to experience immediate pleasures of an impulse purchase. The one‐pronged strategy is characterized by a rapid impulse purchase without prior intent, and the two‐pronged strategy involves moseying around and deliberate placement in harm's way of an impulse purchase followed by the rapid conclusion of the impulsepurchase transaction. Results from three studies indicate that regret is minimized before and after planned and impulsive purchases in different ways. The results also indicate that, consistent with the idea of defending self‐image by emulating a master plan where there was none, consumers will confess to moseying around and deliberate placement in the presence of a potential impulse purchase more readily when they actually conclude the purchase as opposed to walk away from the impulsive purchase. © 2006 Wiley Periodicals, Inc.     

危机产品的购买行为研究: 威胁评估和不确定规避的作用

文章旨在探讨影响消费者继续购买危机产品的因素。归纳了产品危机的3个重要属性（伤害性、群发性、持续性）,并基于保护动机理的威胁评估概念构建了危机属性对购买意愿影响的模型。在“速成鸡”事件后及时展开问卷调查,通过对数据的结构方程和层级回归分析,得出以下结论：产品危机属性（伤害性、群发性、持续性）通过威胁评估（感知严重、感知易损）的完全中介作用对消费者购买意愿产生负面影响;消费者不确定规避水平能调节威胁评估与购买意愿之间的关系,具体而言,与不确定规避较低的情况相比,当不确定规避较高时,感知严重与感知易损对购买意愿的负向影响更大。     

Partnerships that go places: How to successfully market products from vendor partners at retail stores from the vendors’ perspective

This study constructed a model using multiple attribute decision making (MADM) to evaluate the successful marketing of products from vendor partners at an on-campus training store. We used the 5Ps of marketing (people, product, price, promotion, and place) as the research framework and applied the fuzzy analytic hierarchy process (FAHP) to calculate the weight of each evaluation criterion. A gap analysis was performed on each evaluation criterion, using the modified VlseKriterijumska Optimizcija I Kaompromisno Resenje (modified VIKOR) to identify the important factors that students at an on-campus training store should prioritize for improvement when formulating marketing strategies from vendor partners. The results indicatae that when collaborating with the on-campus training store, vendor partners placed the greatest emphasis on promotion and the least on people. The results indicatae that when collaborating with the on-campus training store, vendor partners placed the greatest emphasis on promotion and the least on people. The evaluation dimensions were ranked according to their weights in descending order as follows: promotion(0.279), product(0.239), price(0.179), place(0.157), and people(0.143). Based on the overall weights of all evaluation criteria featured in present study, vendor partners placed the top five greatest emphasis on product quality and safety assurance(0.088), social media marketing(0.078), price promotion activities(0.071), product uniqueness(0.069), as well as brand advertising and promotion(0.066). The current research provides practical and appropriate strategies for planning successfully product marketing strategies from vendor partners, and further helping vendor partners increase product exposure and attract consumers to purchase their products at the on-campus training store. The findings may help vendor partners increase and improve product exposure and attract consumers to purchase their products.     

Short and sweet: Effects of pop-up stores’ ephemerality on store sales

Responding to increasing demand for ephemeral and experiential consumption, pop-up stores have developed into a preferred retail concept. By considering the juxtaposition of pop-ups’ non-sales focus and recent research finding experiential stores generating immediate store purchase, two experiments test how and when pop-ups’ distinguishing feature, ephemerality, affects purchases. We integrate commodity and regret theory to propose that store ephemerality boosts purchase of standard products for low-need-for-uniqueness (NFU) consumers as well as exclusive product purchases for high-NFU consumers. The implications for academic researchers and retail managers are discussed.     

Determinants of a lasting purchase: The case of the tattoo patron

Evidence suggests that both cognitive and emotive factors elucidate consumer decision processes; yet, research exploring such factors jointly (i.e., a dual-process approach) as antecedents of high-involvement, lasting purchases is lacking. To address this paucity, we developed two studies, each with a unique dual-process model for explaining consumers’ intention to get a tattoo. Study 1 explores anticipated regret about getting a tattoo, emotional response before and now regarding a tattoo purchase, and self-expression via tattoo acquisition. Study 2 examines perceived trust in the tattoo artist, self-esteem, attitude toward art paintings, and age as determinants of intention to get a tattoo. Data collected for testing these models support dual-process theory in the tattoo context. Implications and future research directions are offered.     

An Integrated Group Decision Making Support Model for Corporate Financing Decisions

The essential goal of corporate finance is to maximize corporate value while reducing a firm’s financial risks. Corporate financing decision is a kind of multi-criteria based group decision making that embodies major approaches to handle qualitative criteria and quantitative limitations. However, in literature related to financing decision making, very little research uses decision making trial and evaluation laboratory (DEMATEL) and analytic network process (ANP) methods to consider the impact and dependency of its factors, or uses Goal programming (GP) to find the satisfactory financing decision under the related financial constraints. This study proposes an integrated group decision making support (GDMS) model to assist corporate financing group decision makers (DMs) in obtaining a satisfactory group solution. ANP, DEMATEL and GP are combined in this GDMS model. By using this model, the group DMs can systemically structure a multi-criteria network framework and derive priority weights of those criteria, and then deal with the quantitative financial constraints for a satisfactory group solution. An illustrative case is demonstrated for the effectiveness and practicability of this GDMS model.     

Profiling the reference price consumer

Researchers in marketing have devoted considerable attention to understanding how price impacts the purchase decision. Some individuals, termed memory-based reference price (MBR) consumers, take into account price expectations developed from past purchase behavior when making a current choice. Other individuals, termed stimulus-based reference price (SBR) consumers, make choices by constructing a reference point from the currently observed distribution of prices. Using a latent class model of structural heterogeneity applied to purchase histories from the toilet tissue category, we classify households in terms of the pricing mechanism used in buying decisions. We find strong evidence that memory-based (internal) reference price consumers are more price sensitive than other consumers. Moreover, we find that variables associated with the accessibility of price information are predictive of consumer use of memory-based reference prices. Managerial implications of these results are discussed.     

When the decision ball keeps rolling: An investigation of the Sisyphus effect among maximizing consumers

Maximizing and satisficing consumers are distinguished by the quest for perfection (the former) versus the acceptance of good-enough options (the latter). The emerging literature in this field leans toward a view of maximizers as consumers who take into account as much information as possible in order to achieve the best purchase outcome. Our article explores the paradoxical phenomenon that maximizers minimize the value of information resulting from their past experiences; i.e., their previous purchase decisions. As a modern Sisyphus rolling his boulder back up the hill after every decision, a maximizer starts anew for each decision that is undertaken even if a similar process has been undertaken in the past; the very quest for perfection makes a maximizer minimize the value of past decisions. Furthermore, the generalizability of this finding is examined for different levels of purchase involvement. Results from two studies, including a probabilistic sample drawn from the general US population, show that past retail store performance becomes a weaker predictor of repurchase intention as maximization tendencies increase among consumers. In the same vein, regret has less negative impact on maximizers?? behavioral intention than on satisficers??. In addition, when involvement increases through price, satisficers start to behave like maximizers as past service experiences becomes less strongly related to their intention. The support found for the Sisyphus Effect is discussed in light of the current theorization of Schwartz and colleagues regarding maximizing consumers. Finally, suggestions for further research are developed.     

The Development and Use of a Regret Experience Measure to Examine the Effects of Outcome Feedback on Regret and Subsequent Choice

This research provides insight into the experience of regret and its influence on the decision maker's subsequent aversion to risk. First, a study is conducted in order to construct a reliable multi-item measure of regret and to demonstrate that different levels of outcome feedback result in different levels of regret. A second experiment tests the validity of the regret experience measure (REM) by examining whether considering the degree of regret experienced by the respondent on a prior decision better explains subsequent choices and judgments involving risk than considering the effects of outcome feedback alone. The results of the experiment indicate that 1) the REM is both a reliable and valid measure of regret and 2) decision behavior can be better understood when both outcome feedback and regret resulting from that feedback (or the lack of feedback) are considered. Finally, the implications of these results and directions for future research are discussed.     

Price-aware enhanced dynamic recommendation based on deep learning

Price is one of the essential elements influencing consumer purchase behavior. Like consumers’ preferences in products, their price preferences also dynamically change over time. However, dynamic price preferences haven’t been fully considered in existed recommendation studies. In this study, we propose a deep learning-based dynamic recommendation model by considering consumers’ dynamic preferences in both product and price. We specially design a review-and-rating-based sequence generator to select products whose prices the consumers are satisfied with to form the new purchase sequence. We also develop a multi-level attention mechanism in the transformer layer to explore the correlations between consumers’ price choices and to combine the price preferences with the product preferences. Experimental results show the proposed model outperforms the state-of-the-art models on some real-world datasets. Our findings can help retailers understand consumers’ price preferences and make informed decisions related to pricing, discounting, and bundle sales strategies.     

To Justify or Not to Justify: The Role of Anticipated Regret on Consumers’ Decisions to Upgrade Technological Innovations

Prior research suggests that adoption decisions are primarily based on product features and experiential opportunities, like trial and observation. Our research follows inquiries that identify anticipated regret (AR) as an emotion integral to consumer decision making. Prior research and current retailing practice assume that AR can be alleviated by compelling product attribute-based rationales for immediate purchase. These rationales often take the form of direct attribute comparisons between the current best and the future technologies. Counter-intuitively, we find that giving consumers attribute-based justifications for immediate purchase produces a uniform level of AR and purchase delay regardless of the perceived rate of innovation (PRI). However, under conditions of low PRI and no justification, AR decreases significantly. A clear implication of our findings is that firms marketing current technology should not rush to provide consumers with justifications for immediate upgrade since such communications will remind consumers of what they might miss if they adopt now, resulting in increased AR and purchase delays. Instead, we suggest that retailers focus promotional efforts on highlighting the hedonic benefits consumers experience by adopting today.     

Examining impacts of negative reviews and purchase goals on consumer purchase decision

Extensive literature has studied the impact of positive online reviews on consumers’ purchase decisions. Research on the role of negative reviews in consumer price perception is heavily under-investigated. This study examines effects of negative reviews on consumer price perception and subsequent purchase behavior while considering the moderating effect of purchase goals. Results from two experiments show that the proportion of negative reviews has stronger negative impacts on purchase decision for consumers with a purchase goal than those without. This research contributes to growing knowledge about negative online reviews and consumer goal literature and offers practical implications for online retailers.     

Applying an extended theory of planned behavior to examine state-branded food product purchase behavior: The moderating effect of gender

ABSTRACT

The purpose of this study was to use an extended model of the theory of planned behavior to investigate the antecedents which lead to consumers’ purchase of state-branded food products. Relationships among attitude, subjective norm, perceived behavioral control, health-consciousness, intention to purchase, and actual purchase were examined. In addition, the moderating role of gender on consumer purchasing was assessed. The hypothetical model was empirically tested using data collected via Amazon Mechanical Turk (Mturk). Results implicated that consumers’ attitude, subjective norm, and perceived behavioral control of purchasing state-branded products significantly predicted their intention to purchase, and consumers’ intention to purchase significantly predicted their actual purchase of state-branded products. The relationship between health-consciousness and intention to purchase, however, was not found. Gender differences were found only between consumers’ perceived behavioral control of state-branded purchasing and their intention to purchase. Implications for marketers, farmers, and restaurant owners are provided.     

A nested logit model of brand choice incorporating variety-seeking and marketing-mix variables

We model the effects of variety-seeking and marketing-mix variables on consumers' purchases of coffee using a nested logit model. We premise that on any given purchase occasion, the utilities of brands other than the one purchased on the previous occasion may be correlated due to the consumer's tendency to seek variety or to avoid variety. This results in a two-level hierarchical model where choice on any purchase occasion is conditioned on the brand purchased on the immediately preceding occasion. Such a structure accounts for variety seeking and inertia tendencies of consumers and is consistent with a hierarchical decision process, where consumers first decide whether or not to make a repeat purchase and then decide which brand size to purchase. The assumed hierarchical structure is shown to be consistent with observed coffee purchase behavior, and the model is shown to outperform a nonhierarchical logit model in predicting consumers' brand choices.     

A model of buyer regret: Selected prepurchase and postpurchase antecedents with consequences for the brand and the channel

This research examines how two prepurchase stages of the buyer decision process–information search and alternative evaluation–and two postpurchase stages–evaluation of product and service attributes–influence buyer regret. The study extends prior consequences of regret to include purchase intentions toward both brand and the channel. Tested in a field sample of luxury automobile purchasers, results show that higher information search and alternative evaluation lead to more buyer regret; lower evaluations of service (but not product) attributes lead to more regret; and regret's consequences include reduced intentions to repurchase either the brand or from the dealership. Buyers who switch brands experience more regret than buyers who did not switch brands.