How do relational bonds affect user engagement in e-commerce livestreaming? The mediating role of trust

E-commerce livestreaming depends heavily on user engagement. However, the effect of relational bonds (i.e., financial bonds, social bonds, and structural bonds) on user engagement in e-commerce livestreaming has not been well understood. Our study develops a conceptual model to investigate the impacts of relational bonds on user engagement and addresses the mediating role of trust. We collected data from users of the DianTao App. The results show that social bonds and structural bonds positively affect user engagement, while financial bonds have no direct impact on user engagement. Financial bonds, social bonds, and structural bonds are positively related to trust in the broadcaster. Similarly, financial bonds, social bonds, and structural bonds are also positively associated with trust in the platform. Furthermore, trust in the broadcaster and trust in the platform directly affects user engagement, fully mediating the impact of financial bonds on user engagement, while partially mediating the impacts of social bonds and structural bonds on user engagement. In addition, we find that experience moderates the mediating effects of trust between relational bonds and user engagement. The findings of this study provide useful insights for operators who should invest in building relational bonds and user trust to improve user engagement in e-commerce livestreaming.     

LEADERSHIP IN CLIMATE CHANGE MITIGATION: CONSEQUENCES AND INCENTIVES

Initiatives in favor of unilateral action on climate change are frequently challenged by concerns over free riding. Nevertheless, we observe an increasing number of unilateral efforts at different administrative levels and in different parts of the world. Previous academic literature described various individual mechanisms where emissions abroad may increase or decrease as a reaction to unilateral emission reductions. In this paper, we collect a comprehensive set of both positive and negative reactions and analyze them in stylized models. This allows us to identify the most important characteristics that determine the potential of a leader to boost mitigation efforts abroad. We find that this potential depends on (i) a strong ability to generate knowledge through leadership, (ii) a high degree of credibility in the international community, and (iii) a similar economic structure to the most important emitters. While most effects are difficult to quantify, this comprehensive assessment suggests that leakage effects resulting from unilateral mitigation may well be outweighed by positive reactions.     

The promise and peril of dynamic targeted pricing

Dynamic pricing is widely adopted in many industries, such as travel and insurance. These industries are also gaining extensive capabilities in identifying and segmenting customers, partly fueled by the increasing availability of data. It is natural to ask whether firms should take advantage of such developments by charging different prices to different customer segments. If so, under what conditions? We seek answers to these highly managerially relevant questions.We consider a market with two customer segments served by a monopolist. The monopolist can choose among a set of pricing strategies to exploit consumers’ inter-temporal preferences and/or inter-segment variations. At one end of the spectrum, the firm can charge a constant price to all customers, which is called static pricing. At the other end of the spectrum, the firm can charge different prices to different customer segments and vary these prices over time, which is referred to as dynamic targeted pricing. We systematically compare these alternative pricing strategies. We show that dynamic pricing without targeting can be more effective than static targeted pricing when customers are not very forward looking, which corroborates the findings in the empirical literature. Interestingly, we find that the monopolist can be worse off when she adopts targeting in addition to dynamic pricing. We conduct laboratory experiments to test several key model predictions. The studies show that individuals behave in a manner consistent with the predictions of our model.     

Relief aid stocking decisions under bilateral agency cooperation

We aim to quantify the benefits of cooperation between humanitarian relief agencies in terms of stocking decisions. We consider two agencies that stock the same type of relief item at different locations prone to individual disaster risks and agree to transship the shortage amount from available stocks in case of a disaster. We incorporate the disaster risk to the Newsvendor model by conditioning the stock quantity decisions on the event that a major disaster occurs within the lifetime of the stocked relief item. We optimize the stock quantity for each agency in response to the other's quantity and compute a Nash Equilibrium solution numerically. We apply this game theoretic approach to the case of earthquake preparedness in Istanbul to optimize the stocking decisions of an agency for shelter units in cooperation with another agency. We investigate the characteristics of the solutions under various parameter settings and identify cases in which cooperation may be beneficial to one or both of the agencies.     

Increasing Shopper Trust in Retailer Technological Interfaces via Auditory Confirmation

This research examines the effects of sounds made by retail technological interfaces – self-checkout kiosks, credit card readers, mobile apps, websites – at point-of-sale. We propose that such sounds, retail transaction auditory confirmation (RTAC), increase trust in technological interfaces by providing auditory confirmation that stages of the checkout process have been successfully executed. Increased trust in technological interfaces leads to positive downstream consequences in the form of satisfaction and purchase intention. Visual and auditory distraction in the retail environment reduces trust, even when visual confirmation is provided, but synchronously provided audio-visual confirmation attenuates the negative effects of environment distraction.     

Relying on the heuristic of trust: a case study

This study examines the reliance on trust as a heuristic by individuals when making personal financial decisions, using a qualitative case study. We show that in the face of complexity and choice, individual investors predominantly resorted to the heuristic of trust to make financial decisions. This demonstrates the need for industry and public policy‐makers to be aware that individuals can and will resort to simplified heuristics as a basis for financial decision‐making, particularly within an environment where substantial complexity and choice exist.     

Consumers buying behaviour towards agri-food products: A mixed-method approach

This study aims to identify the factors that can influence consumer purchasing behaviour in the context of agri-food. Based on the Stimulus-Organism-Behaviour-Consequence theory, this study proposed a model to explain purchasing behaviour that included environmental factors as well as a set of cognitive processes. This study adopted a mixed method approach and in the first stage, a qualitative analysis was conducted to extract the constructs for the study. In the second stage, the quantitative analysis was performed by means of CB-SEM using 891 responses collected through a survey. This resulted in identifying the factors that influence agri-food purchasing behaviour. According to the findings, health consciousness and food safety concerns in the form of a stimulus have a positive relationship with agri-food image, agri-food label, and agri-food benefits acting as the organism. Similarly, the three organisms have a positive relationship with trust. Ethnocentrism is also found to have positive and significant association with trust. The combination of trust and ethnocentrism has consequences, in the form of agri-food purchase behaviour. The study's findings have significant implications for marketers and marketing strategists.     

A game theoretic approach for analyzing the competition between national and store brands by considering store loyalty

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Price and quality decisions in a vertically-differentiated supply chain with an “Online-to-Store” channel

Because of the prevalence of “Online-to-Store (OS)” channel, customers can purchase differentiated products online and pick up in-store. We develop a Stackelberg game-theoretic model to study the impact of an OS channel on quality levels, demands, prices, and profits of a manufacturer and a retailer in a supply chain. We assume that the retailer acts as a Stackelberg leader, and the manufacturer acts as a Stackelberg follower. The manufacturer produces and sells two products with vertically-differentiated quality levels to the retailer who in turn sells the products to customers through a Store channel, an Online channel, or an OS channel. The retailer incurs a handing cost if the OS channel is available, and consumers bear a shipping cost and a transaction cost when the products are purchased from the Online and Store channels, respectively. We find that the manufacturer should reduce both products’ quality levels and wholesale prices, whereas the retailer can increase the selling prices for a relatively small shipping cost and a not too small handling cost. When the products are available both online and in-store, however, the quality levels, wholesale prices and selling prices might increase for a small shipping cost and a not too small handling cost. Compared to the case in which both products are available online only with the OS channel, adding the Store channel is always beneficial for both parties. The intuition behind these results hinges on the trade-off between the handling cost and the increased market demand for the retailer. Moreover, the quality levels, the wholesale prices of both products, and the selling price of the low-quality product would decrease, while the selling price of the high-quality product increases for a sufficiently low transaction cost and a not too small shipping cost.     

Value co-creation and social media: Investigating antecedents and influencing factors in the U.S. retail banking industry

This study seeks to examine and unearth antecedents to co-creation behaviours within a U.S. retail banking context. A critical aspect for marketing managers and academics alike, co-creation has a strong influence on tangible factors such as profit and intangible factors such as referrals, satisfaction and feedback. Antecedents were identified as trust, customer engagement and participation attitude whilst social media usage was a consumer characteristic identified as influencing co-creation. Data was collected from 489 U.S. retail banking customers via an online survey. The data was analysed via structural equation modelling. The findings indicate that customer engagement influences trust, co-creation and participation attitude. Participation attitude was found to influence trust and co-creation but trust had no direct effect on co-creation. The study further found that social media usage intensity influenced co-creation behaviours. The findings contribute in three ways. First, this is one of the first studies to scrutinise participation attitude in an attempt to explain co-creation behaviours for U.S. banks over social media. Second, identification of precursors to value co-creation has been ascertained in a U.S. retail banking social media context. Third, the study additionally contributes to the findings that social media usage has a moderating effect in value co-creation and offers a potential segmentation strategy.