Do Consumers Really Know How Much They Are Willing to Pay?

Previous research reveals willingness‐to‐pay (WTP) obtained through consumer surveys and experiments is often influenced by arbitrary information that, from a normative perspective, should have no influence on WTP. This article utilizes data collected from a split‐sample online survey to determine whether the bias induced from arbitrary anchors can be mitigated with a preference elicitation approach designed to facilitate the preference‐discovery process by revealing tradeoffs and consequences implied by stated WTP. The approach forces internal consistency between statements of value and preference orderings. We compare the WTP elicited using the new approach to two more simplified elicitation devices by determining sensitivity to an arbitrary anchor and by determining predictive validity relative to a holdout choice. Our results indicate that the imposition of internal consistency yields more stable estimates of WTP; however, there is no evidence to support the hypothesis that the method provides WTP estimates that lead to a higher degree of predictive validity .     

Are Consumers Disadvantaged or Vulnerable? An Examination of Consumer Complaints to the Better Business Bureau

Questions have emerged recently about the appropriateness of defining disadvantaged consumers based on their membership in certain demographic categories, such as income, age, education, and race. This study assessed whether these traditional classifications are useful for understanding consumer complaining behavior with the Better Business Bureau. Results of analysis of more than 24,000 consumer complaints filed with a local BBB office during a 13-year period do not provide consistent support for this disadvantaged consumer perspective. Instead, the emerging vulnerable consumer perspective may provide a more promising basis for future research.     

Are You a Chocolate Lover? An Investigation of the Repurchase Behavior of Chocolate Consumers

This study aimed to understand the factors affecting repurchase behavior of chocolate brands and, consequently, customer retention and acquisition. The study adopted a qualitative, inductive approach using in-depth interviews with 31 Australian consumers. The factors identified in the extant literature as antecedents of customers’ repurchase intention in the chocolate industry, including brand recognition, sales promotion, product price value, variety, taste, texture, size, packaging, and customer satisfaction, were confirmed. The results also indicated that functional value, product selection value, self-gratification value, socialization value, and transactional value were also considered during the consumer decision-making process. Implications for practitioners are provided.     

Do Consumers Understand PCP Car Finance? An Experimental Investigation

Personal contract purchase (PCP) plans are innovative and increasingly popular forms of car finance. PCPs are inherently more complex than established financing options. The present study used experimental behavioural science to explore consumers’ comprehension of PCP plans and scope for beneficial interventions. Choice tasks, product rating tasks, and multiple choice comprehension questions were deployed to measure the consistency of decision-making and explicit comprehension of the product. Disclosures and advice were varied across conditions. A representative sample (n?=?100) of consumers was initially given information on PCP deals as typically disclosed by car dealers. Results revealed that understanding was poor. One quarter of participants performed below chance on multiple-choice comprehension questions. Participants were prone to inconsistencies and objective mistakes when deciding between and rating offers. Disclosures designed to improve processing of mileage and cost information had ambiguous effects. Consumer advice sheets improved comprehension and reduced mistakes, with advice containing a diagram outperforming advice containing only text. The findings raise consumer protection concerns and support improved advice and stronger regulation.     

The Affordability of Energy: How Much Protection for the Vulnerable Consumers?

Affordability is a new “alien” concept penetrating the field of contract and consumer law as one of the obligations related to the provision of “universal services” or “public service” in the context of services of general economic interest. Affordability becomes an important element of the European social model (using Scharf’s terminology; Scharf, J Common Mark Stud 40:645–670, 2002) and its constitutional dimension will be confirmed by the Treaty of Lisbon and the Charter of Fundamental Rights of the European Union (EU). The major European Commission policy tool for ensuring the Affordability of Energy Supply is, on the one hand, functioning competition, which should bring about reasonable prices in general, and on the other hand, regulation targeted at so-called vulnerable consumers. First tested in the UK, it was later spread mainly by the requirements of the Second Energy Package in other Member States (MS). The Third Energy Package (to be implemented by March 2011) further develops this idea and clarifies the set of obligations that the protection of consumers and ensuring the Affordability of Energy Supply require in the understanding of the EU legislator. One could speculate to what extent this is a reaction to the fact that some MS and, in particular, the new MS did not implement the consumer protection requirements of the Second Energy Package, but rather opted for very different regulatory strategies. This paper will examine different regulatory strategies employed in four MS (the UK, France, the Czech Republic, and Slovakia), with special focus on the situation in the two new MS, in order to respond to the question as to whether these different regulatory strategies provide what is promised, i.e., affordable energy for all.     

Are Sustainable Consumers Health Conscious? A Segmentation Study of Wine Consumers

As a result of consumers’ increasing concerns with ethical, environmental, and health issues, sustainable consumption and production have become a popular topic of recent academic research and industry practices. The current study sought to provide in-depth insights into consumers’ views on sustainability by simultaneously examining their environmental and social awareness and behavior, health-conscious lifestyles, and diets; as well as the perceived importance of social and nutrition information on wine labels. Based on empirical data obtained through a web-based survey distributed to consumer panels in three markets – the US, the UK, and Germany – this research segmented wine consumers into four categories: Apathetic Consumers; Health-Conscious Diners; Holistic Perfectionists; and Ethical Advocates. The findings indicate that in general wine consumers are mindful about the environmental problems, social responsibility of companies, ethically produced and sustainably sourced products. The majority adhere to healthy lifestyles and watch their diets. Nevertheless, with the exception of only one cluster (Holistic Perfectionists), wine consumers do not actively seek social, environmental, or nutritional information on wine labels. This study shows that, at least currently, the preferences for the social factors are unlikely to outweigh dominating traditional wine purchase drivers, such as price, brand, country of origin, and grape variety. Industry implications for tailored marketing strategies are discussed.     

Too Much of a Good Thing? The Adequacy of International Reserves in the Aftermath of Crises

This paper has a number of purposes. First, it revisits the older theory of reserve adequacy and optimality to see whether this can still be used and perhaps strengthened in ways that would inform the current debate. Second, it explores the connection between reserve adequacy and currency crisis in the light of recent experience and empirical research. Third, it critically investigates alternative rule‐of‐thumb measures of reserve adequacy. Fourth, and drawing on the foregoing analysis, it examines the extent to which crisis countries should seek to replenish and build up their international reserves in the post‐crisis period. Additional owned reserves represent a guaranteed and unconditional source of liquidity; is this what is needed?     

Where Did They Go Wrong? An Analysis of the Failure of Knowledgeable Internet Consumers to Detect Deception Over the Internet

This paper uses an information-processing model of deception detection to understand the reasons underlying Internet consumers' success and failure at detecting forms of intentional deception that occur on the Internet. Eighty MBA students visited either a real commercial site or a deceptive copycat (page-jacking) site. The deceptive site was identical to the clean site except that it contained six deceptive manipulations (e.g., forged favorable quotes from authoritative sources). This study compares the information processing behavior of four groups of subjects: those who detected the deception, those who missed it, those who correctly identified the real site as non-deceptive, and those who incorrectly believed that the real site was deceptive. It was found that (1) priming subjects to generate the hypothesis of deception weakly facilitates detection success, (2) competence at evaluating the hypothesis of deception is a strong differentiator between successful and unsuccessful detectors, and (3) successful detectors rely on assurance cues and heavily discount trust cues. Unsuccessful detectors do the opposite.     

Assessing the Prerequisite of Successful CSR Implementation: Are Consumers Aware of CSR Initiatives?

As a reflection of the values and ethics of firms, corporate social responsibility (CSR) has received a large amount of research attention over the last decade. A growing area of this research is the CSR–consumer relationship. Results of experimental studies indicate that consumer attitudes and purchase intentions are influenced by CSR initiatives – if consumers are aware of them. In order to create this awareness, business is increasingly turning to ‹pro-social’ marketing communications, but such campaigns is met with scepticism and their effectiveness are therefore uncertain. Consequently, researchers in the field (for example, Maignan, 2001; Mohr et al., 2001) have called for empirical studies to determine the level of actual consumer awareness of CSR initiatives. This study examines the Australian banking sector, which engages in and promotes its CSR activities, to help fill this gap. Results from our qualitative study with bank managers, and our quantitative study with consumers, indicate low consumer CSR awareness levels. Consumer understanding of many of the social issues banks engage with is also low. While CSR is effective in eliciting favourable consumer attitudes and behaviour in theory, CSR has not proven its general effectiveness in the marketplace. The low consumer awareness of the various social issues in which firms engage with their CSR programs suggests that firms may need to educate consumers, so they may better contextualise CSR initiatives communicated. However, better context may amount to little if claimed CSR initiatives are perceived as inconsistent with other facets of the business that reflect its values and ethics.     

Are Expired/Unused Coupons Worhless to Consumers and Advertisers?

This article calls for a reconsideration of the criteria commonly used to evaluate couponjng strategies. The paper outlines how potentially significant effects from merely collecting coupons without redeeming may be ignored by using the traditional means of redemption to evaluate a coupon drop. Several theoretical explana- tions for the possible impact of coupon collecting are posed along with managerial implications considering these theories.     

Does Religion Affect the Materialism of Consumers? An Empirical Investigation of Buddhist Ethics and the Resistance of the Self

This paper investigates the effects of Buddhist ethics on consumers’ materialism, that is, the propensity to attach a fundamental role to possessions. The literature shows that religion and religiosity influence various attitudes and behaviors of consumers, including their ethical beliefs and ethical decisions. However, most studies focus on general religiosity rather than on the specific doctrinal ethical tenets of religions. The current research focuses on Buddhism and argues that it can tame materialism directly, similar to other religions, and through the specific Buddhist ethical doctrines of the Four Immeasurables: compassion, loving kindness, empathetic joy, and equanimity. The empirical results show the following: (1) Buddhism reduces materialism directly and through some of the Four Immeasurables, and (2) despite the doctrine of non-existence of the self, positive emotions toward the self are still present, and the self absorbs the effects of Buddhist ethics on materialism. The latter finding suggests a “resistance of the self” that is coherent with the idea of a consumer who leverages the self to go beyond it.     

Consumers to Become the New Momentum of China''''s Economy

Vice President of the State Statistical Bureau, Qiu Xiaohua, gave a thematic speech at the Further Research onChina's Economy seminar. He said interms of the overall achievement ofChina's economy over more than 50years, the momentum of the economyvaried. During the first period, it wasthe government. Under the plannedeconomy, the government was the engine of the economy. Since the reform,companies have gradually become theengine of the economy, and corporateperformances have directly dete…     

Can Consumers Forgo the Need to Touch Products? An Investigation of Nonhaptic Situational Factors in an Online Context

Touch is an important source of information for consumers, and there is much to learn about its role in an online purchase decision context where the ability to touch products is not (at least currently) possible. The present investigation examines three nonhaptic situation‐specific factors that moderate the relationship between haptic motivation and consumer responses. The results indicate that positive mood, price promotions, and level of situation‐specific product expertise are influential, yielding greater purchase intentions and product judgment confidence when touch is not available. Additionally, the findings of the investigation suggest that imagining a Web site is comparable to actually viewing a Web site. Several implications for consumer behavior research and online marketers are discussed.     

Do the Same Models Apply to Consumers and Business Firms? Comment on the Paper by Frey

Journal of Consumer Policy -     

Applying Ethical Concepts to the Study of “Green” Consumer Behavior: An Analysis of Chinese Consumers’ Intentions to Bring their Own Shopping Bags

Drawing on the general ethics and social psychology literature, this study presents a model to delineate the major factors likely to affect consumers’ intentions to bring their own shopping bags when visiting a supermarket (called “bring your own bags” or “BYOB” intention). The model is empirically validated using a survey of 250 Chinese consumers. Overall, the findings support the hypothesized direct influence of teleological evaluation and habit on BYOB intention, as well as that of deontological evaluation and teleological evaluation on ethical judgment about the BYOB practice. Teleological evaluation exerts a much stronger influence on ethical judgment than does deontological evaluation. In addition, the findings reveal that consumers who perceive the BYOB practice to be more important are more inclined to rely on their ethical judgment to derive their BYOB intention. Academically, these findings provide some encouraging evidence for the application of general ethics theories to explain green consumption-related practices. Practically, the findings also suggest that a utilitarian approach (i.e., emphasizing the consequences of BYOB) may represent an effective means for the Chinese government to promote BYOB practice among consumers. Dr. Ricky Y. K. Chan is associate professor of the Department of Management and Marketing at the Hong Kong Polytechnic University. His research interests lie in green marketing and behavioral aspects of Chinese consumers. He has contributed to such journals as Business Horizons, European Journal of Marketing, International Business Review, Journal of Business Ethics, Journal of International Marketing, Journal of Management Studies and Journal of Services Marketing. Dr. Y. H. Wong is associate professor of the Department of Management and Marketing at the Hong Kong Polytechnic University. He is the author of a book, Guanxi: Relationship Marketing in a Chinese Context (co-authored with Dr. T. K. P. Leung). His research has been published in journals, including Industrial Marketing Management, International Business Review, Journal of Business and Industrial Marketing, Journal of International Consumer Marketing and Journal of Services Marketing. Dr. T. K. P. Leung is associate professor of the Department of Management and Marketing at the Hong Kong Polytechnic University. His research areas include business to business marketing, Chinese cultures and their implications to Sino-foreign negotiation. He has published articles in such journals as European Journal of Marketing, Journal of Business Ethics, Journal of International Consumer Marketing and Marketing Intelligence and Planning. He also co-authored a research book with Dr. Y. H. Wong titled Guanxi: Relationship marketing in a Chinese context published by the Haworth Press.     

Are Relationally Transparent Leaders More Receptive to the Relational Transparency of Others? An Authentic Dialog Perspective

Journal of Business Ethics - Using a sample of 114 leaders (described by 516 team members), we show empirically that the association between leader relational transparency and leader receptiveness...     

How Important Are CEOs to CSR Practices? An Analysis of the Mediating Effect of the Perceived Role of Ethics and Social Responsibility

Drawing on the Agency–Stewardship approach, which suggests that manager profile may range from the agent model to the steward model, this article aims to examine how important CEOs are to corporate social responsibility (CSR). Specifically, this exploratory study proposes the existence of a relationship between manager profile and CSR practices and that this relation is mediated by the perceived role of ethics and social responsibility. After applying a mediated regression analysis using survey information collected from 149 CEOs in Spain, results show that those closer to the steward model are more inclined to attach great importance to ethics and social responsibility, and to implement CSR practices in their companies. Results also provide support for the suggested mediating effect. Thus, this article extends research in understanding top managers as drivers for CSR and suggests new ways to deal with this issue empirically.     

Consumers’ online responses to the death of a celebrity

Humans have long been fascinated with celebrated persons. Because celebrities are usually protected, fans rely on celebrity-related products to connect to a beloved individual. As symbolic embodiments of celebrities, these related products often become cherished personal possessions. The death of a celebrity appears to strongly elevate a celebrity’s stature and increase the value of the celebrity’s products. This research examined marketplace effects of celebrity deaths using longitudinal data obtained from online auctions. Results indicated that a celebrity's death strongly boosts demand for surviving memorabilia. Marketers were also found to act with incredible speed in offering products to meet this heightened demand. These findings suggest that the effect of death on memorabilia sales varied by product type and death context.     

Insidious Effects of Syntactic Complexity: Are Ads Targeting Older Adults Too Complex to Remember?

This research examines the role of syntactic complexity—complexity induced by the sentence structure of the text—on memory for print ads. The authors find that ads aimed at older adults contain significant complexity, which commonly used readability indexes fail to detect. Further, syntactic complexity adversely affects message recall in older (age 65 and up), but not younger, adults. This adverse effect of syntactic complexity on memory continues even when motivation to process the message is high. The authors discuss the implications of these findings.