Does attitude predict purchase behaviour of apparel products?

During the 1980s the world market in textile and apparel products has become increasingly internationalized. Retailers in Western Europe and North America import goods from around the world, often at the expense of domestic manufacturers. In an effort to encourage consumers to buy locally manufactured products, associations in several countries have tried to change consumer attitudes toward domestically produced textiles and apparel. The goal of this study was to assess the relationship between consumer attitude and consumer behaviour in an apparel purchase. Intercept surveys were conducted with 3,766 consumers in nine locations in the eastern U.S.A. Consumers were questioned about their attitudes toward domestic versus imported clothing and their awareness of the country of origin of their purchase. Reasons for purchase and demographic information were also collected. Some differences between variables were found related to sex, age and geographic location. While it was evident that a large proportion of the consumers sampled said they cared whether the clothing they purchased was domestically produced or imported, a far smaller proportion was aware of the country of origin of the garment just purchased. Therefore, a consistent link between consumers' professed attitudes and their buying behaviour could not be established. Summary and conclusions The consistency of consumer attitudes with consumer behaviour was assessed for a sample of U.S.A. apparel purchasers. Respondents in the eastern U.S.A. were asked about their awareness of and concern with their garment's place of production. Although some differences were found related to sex, age and geographic location, the lack of consistency between attitudes and behaviour was a common phenomenon. Of the total sample, only 20% professed both concern and awareness of their garment's country of origin. In contrast, 60% knew of the ‘Crafted with Pride’ campaign, 44% expressed concern for place of production, and 28% said they knew where the garment just acquired had been manufactured. These relatively low percentages may be due in part to the demographics of the consumers surveyed. This study included a high proportion of females, young and middle-age shoppers. This sample composition is consistent with other research citing these groups as the most frequent apparel purchasers. The results of this study indicate that the oldest age groups and male shoppers are most likely to be aware and concerned. This suggests that those wanting to change attitudes and/or behaviour need to target the groups most likely to be spending on apparel, females, young and middle-age groups. These consumers appear to be the least motivated by patriotic appeals or to base purchase decisions on cues such as country of origin. People from the south, who were more likely to be directly affected by the textile industry, generally were more aware, expressed a higher level of concern, and were more likely to know of the ‘Crafted with Pride’ campaign. Since the south has not been selectively targeted by the ‘Crafted with Pride’ Council, it is very possible that the demographics and personal link of southerners to the apparel and textile industries may be more influential than the Council's media campaign. While it is true that concern, awareness, and knowledge of the campaign are highly correlated, what has not been determined is the causal relationship between these three variables. Does knowledge of the campaign cause one to care more and therefore be more likely to be aware? Or does caring make consumers more susceptible to patriotic appeals and more likely to say they are aware when they really may not be? It has been determined that people who are aware are more likely to care and know of the campaign; it has not been determined that people with knowledge of the campaign will be more aware and therefore guided in their purchase decisions. The intense media campaign by the ‘Crafted with Pride’ Council suggests that the level of concern for domestic clothing production may be influenced by the level of marketing effort. However, the Council's expected behavioural effect of raising the number of potential clothing buyers who actively seek out and purchase American-made apparel was not displayed by respondents in this study. Since it is consumers who ultimately make the final purchase decision, industry representatives and legislators should examine more closely the link between attitudes and action before making production and public policy decisions that will have significant economic effects on all parties concerned.     

Price Elasticity Dynamics over the Product Life Cycle: A Study of Consumer Durables

Extending the work of Parker (1992), which considers only firstpurchases, and Simon (1989), which considers brand-level sales, weempirically provide support for the hypothesis that total categorysales price elasticities first decease in absolute value but thenultimately increase if the product in question faces the decline phaseof the product life cycle (due to competitive substitutes, changes intastes, and so on). As an interesting artifact of the methodology, thearticle also shows how the Bass model can be easily modified to accountfor total category sales (first plus repeat purchases) and that, in thelimit, the Bass model converges to stochastic repeat purchase models(bridging two radically different modeling traditions). If unadjusted,the Bass model applied to sales data is grossly misspecified when thetime series studied exceeds five to ten years for consumer durables.     

Do Managers Withhold Bad News?

In this study, we examine whether managers delay disclosure of bad news relative to good news. If managers accumulate and withhold bad news up to a certain threshold, but leak and immediately reveal good news to investors, then we expect the magnitude of the negative stock price reaction to bad news disclosures to be greater than the magnitude of the positive stock price reaction to good news disclosures. We present evidence consistent with this prediction. Our analysis suggests that management, on average , delays the release of bad news to investors.     

Price and Volume Reactions to Public Information Releases: An Experimental Approach Incorporating Traders' Subjective Beliefs*

This paper examines how market prices, volume, and traders' dividend expectations respond to public information releases in laboratory markets for a long-lived financial asset. The objective is to study deviations from the symmetric information risk-neutral rational expectations (RE) benchmark, which predicts no trade in such settings. The results of a series of double-auction and call markets are reported in which traders manage a portfolio of cash and asset shares over 15 rounds of trading. A public signal regarding the value of the liquidating dividend is released every third round, and traders' subjective expectations of the liquidating dividend are elicited each round as cash-motivated forecasts. We find that, despite the public dividend signal, traders' dividend forecasts are heterogeneous. Forecasts and prices both underreact to the public signals, with prices under-reacting more than forecasts. In general, price changes are not closely associated with public signals, and there is greater excess price volatility in double auctions than in call markets. Forty-three percent of trades are inconsistent with the trader's forecasts, and inconsistent trades occur more frequently in the double-auction markets. On average, approximately 10 percent of the outstanding shares are traded in each round, and trading volume is increasing in the mean absolute forecast revision and decreasing in the contemporaneous dispersion in forecasts. These results suggest that differential processing of the public signal and/or speculative trading for short-term gain may help to explain why symmetric information RE predictions are often not supported in empirical and experimental settings. They also suggest that market reactions to public information releases may be influenced by market microstructure.