Managing loyalty program communications in the digital era: Does culture matter?

This research addresses an important, yet under-researched, issue concerning the real-time management of loyalty programs (LPs) in the digital era: how to leverage culture-specific communications to motivate LP members to pursue and redeem program rewards. Two experimental studies in different LP contexts provide corroborating evidence that to-date (to-go) progress feedback is more effective in motivating consumers from individualist (collectivist) cultures to pursue LP rewards. Moreover, process evidence suggests that these culture-specific progress framing effects are driven by individual differences in regulatory focus and realized through perceived reward attainability. Overall, this paper contributes to the LP and goal pursuit literatures by verifying that communication framing is an effective means to strengthen reward pursuit motivation.     

To donate or not to donate? Product characteristics and framing effects of cause‐related marketing on consumer purchase behavior

The present study examines potential influences associated with donation framing, product price, product type, and donation magnitude on cause‐related marketing (CRM) campaigns, where money is donated to a charity each time a consumer makes a pur‐chase. In addition to the main effects of the aforementioned factors, experimental results indicate that beneficial effects of product type (i.e., frivolous products bundled with a cause are more effective than practical ones) occur when donation information is framed in absolute dollar terms. The effects of donation framing are found insignificant when the donation magnitude is high. Influences of donation magnitude on CRM effectiveness are limited in high‐priced items. When the donation magnitude is constant, a donation amount framed in absolute dollar value is more effective than that in percentage terms for low‐priced products, and the opposite is true for high‐priced items. In practice, marketers thus stand to gain not only by matching the donation magnitude in their advertised products with the right price but also by an appropriate “framing” of the offered bundles. © 2008 Wiley Periodicals, Inc.     

A Critical Assessment of Libertarian Paternalism

This paper tries to assess to what extent libertarian paternalism lives up to its libertarian credentials, and whether this “softer” version of paternalism is more or less desirable than the traditional, more coercive (but also more transparent) form. Since much is made in the libertarian paternalistic programme of the ease of reversibility of “nudges,” it is argued that the distinction between effective and nominal ability to reverse a nudge is more important than its theoretical ease of reversibility—the more so, if anchoring, framing and status quo bias are as powerful as the libertarian paternalists maintain. If the libertarian paternalistic nudges are effective, but not always transparent, it is argued that this raises some questions (which do not seem to have been adequately addressed in the current literature) about the legitimacy of the interventions; about how the true preferences of the “consumer” can be guessed by the choice architect (and the role played by rationality in this process) and about the effective respect of her autonomy. Finally, this paper highlights some alternatives to “nudging” which place a greater emphasis on the full process of choice—rather than just on its outcomes—and can therefore better preserve true autonomy of choice.     

Long‐term information,short‐lived securities

The authors explore strategic trade in short‐lived securities by agents who have private information that is potentially long‐term, but do not know how long their information will remain private. Trading short‐lived securities is profitable only if enough of the private information becomes public prior to contract expiration; otherwise the security will worthlessly expire. How this results in trading behavior fundamentally different from that observed in standard models of informed trading in equity is highlighted. Specifically, it is shown that informed speculators are more reluctant to trade shorter‐term securities too far in advance of when their information will necessarily be made public, and that existing positions in a shorter‐term security make future purchases more attractive. Because informed speculators prefer longer‐term securities, this can make trading shorter‐term contracts more attractive for liquidity traders. The conditions are characterized under which liquidity traders choose to incur extra costs to roll over short‐term positions rather than trade in distant contracts, providing an explanation for why most longer‐term derivative security markets have little liquidity and large bid‐ask spreads. © 2006 Wiley Periodicals, Inc. Jrl Fut Mark 26:465–502, 2006     

Cue-recognition effects in the assessment of movie trailers

In the past, the role of recognition in inferential choice has often been investigated within the recognition heuristic (RH) that focuses on the recognition of options. In the present study I investigate instead whether the recognition of a cue influences the assessment of movie trailers. This extension of the RH to cues provides important and more comprehensive insights into recognition in everyday decision-making. One hundred and eighty-eight participants were randomly assigned to one paired comparison and had to decide which of two movie trailers (Epic and The Croods) was about to become more successful. All pairwise comparisons consisted of the same two unknown animated movie trailers. They differed merely from a fade-in of a short unknown or known movie title (e.g., “From the makers of Ice Age”). The central objective of this study was to test whether or not the participants judged movie trailers to be more successful and likeable when associated with the famous movie title and thus decide on the basis of the recognition of this cue. In fact, it was shown that people in this context often revert to this recognition cue. However, the prerequisite for this effect was that the faded-in title should be appropriate for the trailer. Furthermore the preference of animated films was identified as a key factor. Volunteers who liked animated films less, often decided due to the recognized cue. Moreover it is shown that participants increasingly use the recognized cue to decide if they specify a preference and high success for this faded-in movie.     

Everyday “low price” or everyday “value”? The interactive effects of framing and construal level on consumer purchase intentions

Academic literature uses the term “everyday low price” (EDLP) when referring to a pricing strategy that offers relatively stable, low prices across a wide assortment of product categories. However, in real-world situations, many brands and retailers opt to use a different term – “everyday value” (EDV). Do consumers differentially evaluate such framings of the same pricing strategy? The present research draws upon construal level theory and demonstrates – across two experimental studies – that EDV (vs. EDLP) framing is more effective among consumers with high (but not low) construal levels. This effect is mediated by perceived benefit such that consumers with high construal levels derive higher levels of perceived benefit when evaluating a product promoted with an EDV (vs. EDLP) framing. The findings of this research can be useful for marketers and retailers in promoting and framing the EDLP (or EDV) pricing strategies in their advertising and marketing communications.     

The Chinese warrant bubble: A fundamental analysis

We investigate the information content in Chinese warrant prices based on an option pricing framework that incorporates short‐selling and margin‐trading constraints in the underlying stock market. We show that Chinese warrant prices can be explained under this pricing framework. On the basis of this new model, we develop a price deviation measure to quantify stock market investors' unobserved demand for short selling or margin trading due to market constraints. We find that warrant‐price deviations are driven by underlying stock valuation to a great extent. Chinese warrant prices, save for the time around expiration dates, are better characterized as derivatives than as pure bubbles.     

Saving Behavior Messaging: Gain/Loss Framing,Self/Family Orientations,and Individual Differences in Collectivism

As the United States faces low savings rates and an aging population, examining messages that encourage saving behavior is critical. Adding to this need is growth in ethnic minority groups (e.g., Hispanic Americans) that tend to experience greater saving challenges. The current study tested framing effects (i.e., loss/gain), in tandem with message orientation (i.e., self/family) and the moderating role of collectivism, on ad response variables after exposure to public service advertisements about saving. Results across three experiments confirm that matching the level of collectivism with orientation impacted the effect of framing on the outcome measures but that individual differences in collectivism impacted the results more than membership in an ethnic group. Loss framing for both low and high collectivistic individuals, when matched with a self-oriented appeal in the former and a family-oriented appeal in the latter, were most effective. Gain framing was more effective when level of individual collectivism was not matched with self/family message orientation. Important theoretical issues are addressed as well as implications for advertisers who engage in saving behavior messaging.     

If Nothing is Achieved: Who Pays for the Brexit?

The United Kingdom will depart from the European Union in March 2019. Numerous open questions remain about details and conditions especially with regard to post-Brexit EU-UK trade relations. In case of a negotiation failure, a “hard Brexit” could cause considerably high costs on both sides of the Channel. In the short run, companies will be charged more than 15 billion euro as tariffs. In the long run, UK-EU trade could be reduced up to 50 percent.     

The contribution of vocational training to employment,job‐related skills and productivity: evidence from Madeira

In this paper, we analyse the transition to the labor market of participants in vocational training in Madeira in Portugal. The analysis is in two stages. First, we investigate how the employment status at different dates (1 month, 1 year, and 2 years after the completion of the training program) depends on relevant variables, such as age, gender, education and the content and duration of the training. Second, we use individuals' self‐assessment of the effectiveness of the training program along three dimensions: employment, job‐related skills and productivity. The respondents score training activities high on every dimension. Moreover, we find that training is more effective among the educated, indicating that vocational training is far from being remedial. We also find that long training programs and training related to tourism are particularly effective.     

Out-of-stock,sold out,or unavailable? Framing a product outage in online retailing

Terms, such as “out-of-stock,” “sold out,” and “unavailable” are commonly used by retailers to communicate a product or brand outage. Although these terms are technically equivalent, prior research on product outage and product scarcity suggest that they may be interpreted and processed differently by consumers. The present research investigated whether the manner in which a product outage was framed elicited different consumer behavioral intentions, attributions, and perceptions in the context of online retailing. Data were collected by means of an online experiment. The experiment incorporated a hypothetical scenario approach in which research participants were asked to react to a particular combination of treatment and blocking factors. Results demonstrated that ceteris paribus, framing a product or brand outage as “sold out” produces fewer negative product and website reactions than does framing it as “out-of-stock” or “unavailable.”     

The Eyes Have It: How a Car's Face Influences Consumer Categorization and Evaluation of Product Line Extensions

This research focuses on a previously unexamined risk associated with the widely used new product development strategy of line extensions. Specifically, it explores consumer reactions when line extensions become too visually similar and examines both short‐term and longer term strategies for solving the problem. Examined in the context of consumer durables, specifically, automobiles, the results show that consumers who make categorization mistakes when trying to distinguish between two visually similar product lines have more negative attitudes not only toward the product but also toward the parent brand. The results of Study 1 confirm that providing a design vocabulary that articulates the car's design features is effective in reducing consumer's categorization mistakes. In addition, results of Study 2 indicate that changes to the car's “eyes” (headlights) are more effective than changes to the car's “mouth” (grille) in helping consumers to differentiate among cars in the line.     

Problem Gamblers’ Harsh Gaze on Casino Services

This study provides a first look at the perspectives and profiles of casino problem gamblers. The study proposes that problem gamblers (1) have unique antecedent conditions and (2) evaluate their casino service more favorably than nonproblem gamblers. While first proposition receives support, the findings counter the second; surprisingly, problem gamblers view casino service with a harsh gaze. The coverage here includes overall and specific findings from face‐to‐face interviews with gamblers (n = 348) inside seven casinos in the world's largest gaming destination (Macau). The interviews included asking participants to complete the “Problem Gambling Severity Index” (identified to participants as “My gambling‐related experiences”). The study includes both fit and predictive validities of overall service quality models for each of the seven casinos—these findings support the nomological validity that specific patterns of antecedents and outcomes associate with problem gambling. Policy and managerial implications inform how to go about creating unique marketing service designs to assist problem gamblers in managing their gambling behavior.     

The moderating influence of ad framing for ad–self‐congruency effects

Prior research indicates that ad–self‐congruency effects are significant only when participants are not motivated to process ad messages, as when they are in a positive rather than negative affective state (Chang, 2002a). In line with this reasoning, it was expected that ad tactics such as ad framing that can evoke emotional responses would determine reliance on ad–self‐congruency for making judgments. As expected, when positive emotions were evoked by positive ad framing, participants formed brand evaluations based on ad–self‐congruency, generating more positive responses to self‐congruent ad messages than to self‐incongruent messages. In contrast, when negative emotions were elicited by negative ad framing, responses to self‐congruent ad messages and self‐incongruent messages were not significantly different. © 2005 Wiley Periodicals, Inc.     

Ample Consumption Period Available Until Use-by Dates: A Potential Marketing Position for Store Brands

SUMMARY

Store brands, when moving upscale, inevitably relinquish their value for money appeal and therefore require some quality dimension to compete. This article is proposing that the promise of “generous” use-by dates as a surrogate for quality could be considered as a positioning plank to promote store brands as alternatives to manufactured brands. Logit analysis is employed to explain shoppers' perceptions and responses to use-by dates, of products that they regularly buy, and of alternative products that they have never bought before if the use-by dates of their regular items are perceived to be too short.     

How language abstractness affects service referral persuasiveness

Due to the inherent risk and uncertainty characterizing pre-purchase service evaluation, consumers tend to rely on referrals from other consumers who already have experiences with that service. Thus, companies are eager to stimulate such referrals and improve their effectiveness. To this end, this research investigates how consumers' linguistic framing of service recommendations influences recipients' attitudes and behavioral intentions. Specifically, this study focuses on one key dimension of language—its abstractness (vs. concreteness)—and hypothesizes that the effect of language abstractness on referral persuasiveness depends on recipients' prior knowledge about the service in question. The results of two experiments in the context of financial and medical services demonstrate that abstract language is more effective than concrete language for recipients with high prior knowledge. Moreover, this research shows that recipients' engagement in mental imagery processing is that makes abstract language more effective for those with high prior knowledge. This articles ends with a discussion of the study's implications for academic research, social communication and service management, along with its limitations and future research directions.     

Promoting charitable donation campaigns on social media

It is salient to investigate how to increase persuasiveness of donation campaign messages communicated on social media. The purpose of this paper is to propose that a construal fit between different message frames (loss/gain framing and desirability/feasibility framing) and donation temporal proximity enhances the persuasiveness of charity donation messages. A convenience sample of 120 adults in Izmir voluntarily participated in this study and participants were randomly assigned to one of four experimental conditions. This research shows that gain-framed donation-promoting messages paired with desirability-framed messages are more effective on distant-future donation intentions, whereas loss-framed messages paired with feasibility-framed messages are more effective on near-future donation intentions. The findings of this paper are to figure out ways to enable marketers to develop effective Corporate Social Responsibility strategies for telecommunication service companies to encourage consumers’ charitable donations in a social media context.     

Positively versus negatively framed product attributes: The influence of involvement

Previous studies have shown that the positive framing of a meat product attribute (i.e., 75% lean) results in more positive evaluation of the product than its presumed equivalent negative framing (25% fat). Other framing studies, particularly those dealing with health messages, show mixed results, although there is a tendency in favor of negative framing. Involvement has been hypothesized to account for these conflicting results, in that under high‐involvement conditions, negative framing has been found to be superior, with positive framing superior under low‐involvement conditions. This article replicates the original meat product study with respect to product attribute framing, and extends this by analyzing the data with respect to subjects' involvement in dietary fat decisions. The study also explores the relationship between framing effects and the influence of the frame on some decision‐making reference point. © 1999 John Wiley & Sons, Inc.     

Towards more effective sourcing and supplier management

While most acknowledge the cost savings associated with more efficient buying, lower purchase costs alone are not an adequate measure of world-class procurement management. To focus solely on cost savings, we believe, falls short of excellence in sourcing and supplier management. Firms that buy “smarter” achieve lower costs and leverage supply market opportunities to accomplish corporate goals. While the importance of cost savings is acknowledged, this paper argues that other “above the line” metrics deserve attention. This paper accomplishes two related goals. First, 10 principles that lead to effective sourcing and supplier management are presented and discussed. Second, a set of parallel data is used to add credibility to our normative presentation. The findings suggest that high performing supply chains do, in fact, support the tenets of more effective sourcing and supplier management. Implications for managers are presented as well.     

Feeling lucky: How framing the target product as a free gift enhances purchase intention

The present research investigates how consumers respond to alternate premium promotion framings that have equal value (e.g., “buy a flash drive and get a free earphone” vs. “buy an earphone and get a free flash drive”). We show that the counterintuitive framing of the target (vs. non-target) product as a free gift makes consumers feel lucky, which in turn increases their purchase intention for the product bundle. We further show the effects of two moderators—salience of targeting and promotion magnitude, such that the main effect is mitigated when the marketer’s targeting efforts are salient for consumers and when the target product is price discounted but not free. Four studies (i.e., a lab study, two online experiments, and a field experiment involving actual purchases of the promoted products) for a range of products and services across two countries provide converging evidence supporting the hypotheses. The findings contribute to the literatures on bundle framing effects, pricing, and luck research in marketing, and have practical implications on designing more effective promotions for both online and brick-and-mortar retailers.