Money,mavens, time,and price search: Modelling the joint creation of utilitarian and hedonic value in grocery shopping

Abstract

This research deductively develops a model of both in-store price search and store deal proneness drawing on hedonic and utilitarian value creation. Based on a sample of 535 US grocery shoppers, the model reveals that in-store price search and store deal proneness share many of the same drivers, amongst these, the value of time being the most important. The opportunity cost of time engaged in price search is explained in terms of shoppers’ financial pressures and role construction as price mavens. Price mavenism influences store deal proneness directly due to its capacity to yield the price information required to build and maintain a role identity, and indirectly through its effect on the opportunity cost of time engaged in price search. The primary implication of the research is that the relationship between time, search, and price mavenism may be best explored by viewing price knowledge, the basis for identity maintenance, as a flow rather than a stock.     

Consequences of personalized product recommendations and price promotions in online grocery shopping

Shopping convenience can be turned into a competitive advantage for online grocery retailers. Consequently, we study how personalized product recommendations (recommendation agents) and price promotions (algorithmic pricing) compensate for the negative impact that consumer's perceived cognitive effort causes on loyalty. By default, the relationship from perceived cognitive efforts to attitudinal and behavioral loyalty is negative, yet these results demonstrate that personalized price promotions lessen the negative impact, while personalized product recommendations do not have such an influence. The findings contribute to a better understanding of personalized marketing activities in today's data-driven online grocery retailing.     

Shopping enjoyment and store shopping modes: The moderating influence of chronic time pressure

The objectives of this study were to investigate: (a) whether shopping enjoyment has a differential influence on two key store shopping modes (browsing vs. bargain hunting); (b) whether the level of chronic time pressure moderates the influence of shopping enjoyment on each shopping mode; and (c) whether each of the shopping modes has a differential influence on hedonic shopping value. Data were collected from a sample of US store shoppers (n=1009). Results revealed that the influence of shopping enjoyment was much stronger on the browsing mode than on the bargain hunting mode. In turn, the browsing mode exerted a stronger influence on hedonic shopping value. Also, this study confirmed that the level of chronic time pressure significantly moderated the influence of shopping enjoyment on the browsing mode. Implications for brick-and-mortar retailers were discussed with suggestions for future research.     

The effect of multi-purpose shopping on pricing and location strategy for grocery stores

Though it is a well-accepted fact that consumers indulge in multi-purpose shopping, most previous models of store choice assume that grocery shopping trips are single-purpose trips. This paper provides the first empirical analysis of multi-purpose shopping using data on actual shopping trips. A latent class factor analytic logit model is proposed, which provides a representation of the market structure of grocery store competition, while integrating; multi-purpose shopping, retail pricing format and location strategy. We conclude that incorporating multi-purpose shopping trips provides a better understanding of the competitive market structure, and discuss the managerial implications for the selection of marketing strategies.     

The relationship of antecedents of search and self‐esteem to adolescent search effort and perceived product knowledge

This article reviews pertinent research related to the antecedents of search and discusses a research study involving teenagers. For the low‐esteem group, “enjoyment of shopping” (intrinsic motivation) and “benefit of search” (extrinsic motivation) were the significant predictors of search effort and perceived product knowledge, whereas for the high self‐esteem group, only enjoyment of shopping (intrinsic motivation) was a significant predictor. The results are explained in terms of an intrinsic‐extrinsic motivation model. For the high–self‐esteem group, the intrinsic enjoyment of shopping leads to search effort, which in turn leads to perceived product knowledge. In contrast, for the low–self‐esteem group, the intrinsic enjoyment of shopping and the extrinsic benefit of search together lead to greater perceived product knowledge as a result of search effort. Thus, the intrinsic motivation model prevails for the high–self‐esteem group, whereas a hybrid intrinsic–extrinsic motivation model prevails for the low–self‐esteem group. The article concludes with directions for future research. © 1999 John Wiley & Sons, Inc.     

The effects of promotional package frames and price strategies on inaction inertia

Inaction inertia is the phenomenon in which people are less likely to accept a less attractive opportunity after having missed a relatively more attractive one. Previous studies have mainly explored the inaction inertia effect on single products or services, whereas this study explored how the promotional frames of sales packages influence inaction inertia toward the individual items within the sales packages and the inaction inertia effect of the target product under different price strategies. On the basis of the cost assignments of mental accounting and comparisons of the current inferior promotion with missed superior promotion, this study found evidence that when consumers encounter a freebie (bundle) condition, they assign a higher cost to the focal (supplementary) product and a lower cost to the supplementary (focal) product. Therefore, consumers who have missed a freebie (bundle) promotion exhibit lower (higher) inaction inertia toward the focal product, but higher (lower) inaction inertia toward the supplementary product. Applying a similar internal mechanism to pricing strategies, the findings also show that when consumers encounter a two‐component sales package with a surcharge promotion using a partitioned price (vs. a price discount promotion using an all‐inclusive price), they assign a higher cost to the base product and a lower cost to the surcharge. So, consumers who have missed the surcharge (vs. price discount) promotion show higher inaction inertia when the surcharge of the current inferior opportunity is salient, but show less inaction inertia when it is not salient. Moreover, the percent of a surcharge as a part of the total package value moderates the impact of promotional price strategy frames on inaction inertia. These findings have significant implications for both theoreticians and practitioners interested in inaction inertia, promotional frames, and price strategies.     

The effect of message credibility,need for cognitive closure,and information sufficiency on thought-induced attitude change

Marketing Letters - Self-generated thought has been shown to have a significant impact on attitude change. Merely thinking about an attitude can result in more extreme attitudes. Although research...     

The effects of time pressure and information load on decision quality

This study attempts to identify conditions under which consumer information overload occurs. A theory which states that information overload will occur when the time-related task demands exceed the capacity of the system is suggested and tested. An experiment is reported in which an inverted U-shaped function relating decision quality to information load occurred when time pressure was present, but did not when it was absent.     

The influence of college students' shopping orientations and gender differences on online information searches and purchase behaviours

Using the data collected from a survey of 1277 US college students, this study investigated college students' shopping orientations, and examined the relationships between their shopping orientations and searches for information about and purchases of apparel products online and the differences between male and female students in their shopping orientations, online information searches and purchase experiences. Seven shopping orientation constructs were identified: shopping enjoyment, brand/fashion consciousness, price consciousness, shopping confidence, convenience/time consciousness, in‐home shopping tendency and brand/store loyalty. Results showed that participants' shopping orientations were significantly related to their searches for information about and purchases of apparel items online. In addition, male and female participants showed significant differences in their shopping orientations, online information searches and purchase experiences. This study provided suggestions for apparel e‐tailors to develop effective marketing strategies to reach their target market, for consumer educators and for educators in the retail merchandizing area to prepare their students for future careers.     

Attitudes towards corporate social responsibility and perceived importance of social responsibility information characteristics in a decision context

This study addressed the questions of perceived importance of social responsibility information (SRI) characteristics in a decision context, as well as the attitudes of institutional investors toward social responsibility involvement. The results showed that SRI presently disclosed in company annual reports did not have any significant impact on institutional investors' decisions. However, if SRI were presented in quantified, financial form, and were focused on product improvement and fair business practices, such information would be perceived as more important for investment decisions. Attitudes toward corporate social responsibility also suggested that institutional investors were not totally opposed to company involvement in social activities. Hai Yap Teoh is associate professor in the Department of Accountancy, The University of Wollongong, New South Wales, Australia. He has published extensively in local and international journals including Accounting, Organizations and Society and The International Journal of Accounting Education and Research. His major areas of research interest include corporate social responsibility and reporting.Godwin Shiu is teaching fellow in the Department of Accountancy, The University of Wollongong, New South Wales, Australia. He is also doing a master's degree in accountancy.     

The effects of need for cognition and trait anxiety on price acceptability

This research explored the effects of two personality variables, the need for cognition and trait anxiety, on consumers' price acceptability. The study used 124 subjects to determine support for the predicted relationships between the two personality variables and price acceptability. The results showed that the low need for cognition individuals had significantly lower price acceptability than the high need for cognition individuals. On the other hand, price acceptability showed a U‐shaped relationship with trait anxiety. Price acceptability for both high‐ and low‐anxiety individuals was higher than that for individuals with moderate levels of anxiety. © 2001 John Wiley & Sons, Inc.     

The influence of pre-decisional constraints on information search and consideration set formation in new automobile purchases

We propose that the manner in which a purchase decision is initiated has an important influence on subsequent product evaluation and choice. Specifically, we propose that the problem recognition “event” and the consequent retrieval of pre-decisional constraints from memory significantly influence the ensuing processes of external information search and consideration set formation. Several hypotheses are developed to model these interrelationships. The data were collected from a national probability sample of new automobile buyers. Log-linear, logistic regression and linear regression analyses were used to test the hypotheses. The results suggest that the type of pre-decisional constraints that are activated as a consequence of the problem recognition event significantly influences the “route” consumers follow through the remainder of the purchase process. The findings have important theoretical and practical implications for understanding the consumer decision process for consumer durables.     

The influence of national culture and industry structure on grocery retail customer loyalty

This study examines, for the first time, the influence of national culture and industry structure on customer loyalty in grocery retailing. Grocery retailers have a long and continued history of international expansion and it is vital to understand how loyalty can be nurtured in different contexts. Thematic analysis of focus groups conducted in the culturally and structurally disparate countries of the United Kingdom and Sri Lanka provide unique insights. Key differences have been identified around consumer preferences and perceptions of loyalty programmes and the key drivers of different loyalty types. Theoretical and managerial implications are discussed.     

Men on a mission,women on a journey - Gender differences in consumer information search behavior via SNS: The perceived value perspective

Gender has a considerable effect on how consumers search for information, shaping their behavior through a variety of motives. Previous research shows that the benefit consumers wish to gain from the information influences their search behavior on social networking sites (SNS). This study examines the extent to which gender influences the connection between perceived information values and the choice of SNS information source: commercial (marketer-generated content) and non-commercial (user-generated content). A representative Facebook users' sample (N = 525) and SEM statistics show gender differences in search behavior on SNS. Findings also demonstrate the impact of gender on the relationships between information values and preferred source of information, and demonstrate different motivations for male and female search behavior. The implications for both theory and practice are presented and analyzed.     

The influence of sharing versus self-use on the preference for different types of promotional offers

Sharing, which refers to giving something you have to someone else, is one of the most ubiquitous forms of human behavior in the world. Everyone experiences it in various situations, including buying food. Nonetheless, although buying something to share with others is quite common in our daily lives, most consumer research on buying focuses on the condition of “self-use” rather than “sharing.” The main purpose of this study is to investigate the influence of promotional offers on consumers' purchase decisions when buying food for self-use/sharing with others. The authors conducted four experiments to answer the main research questions. The results indicated that consumers prefer “price discounts” over “bonus packs” when the shopping task relates to self-use due to their concern about “loss reduction.” In contrast, they prefer bonus packs over price discounts when the shopping task relates to sharing with others because of their focus on “extra gains.” In addition, consumers’ perceived responsibility is a moderator. When perceived responsibility is low and the purchase is for self-use (sharing with others), price discounts (bonus pack) are favored over bonus packs (price discounts). However, when perceived responsibility is high, consumer preference to promotional offers are not significant different either in self-use or sharing with others condition. It seems that role of responsibility is influential when the shopping task relates to self-use. This study not only contributes to a deeper understanding of consumer psychology but will also be beneficial to practitioners in designing effective promotional strategies that consider motives for food shopping.     

The effect of perceived advertising effort on brand perception: implication for retailers in Hong Kong

This paper examines how advertising effort, specifically advertising creativity and advertising believability, may influence consumers’ perceptions of a retailer’s business philosophy, and in turn consumers’ behavior toward retailers in Hong Kong. Altogether five hundred and eighty-three respondents (i.e. 320 college students and 263 shoppers) were surveyed. The results suggested that retailers that are regarded as having more creative advertising are perceived as being more learning-oriented, which leads to higher brand recognition. Meanwhile, retailers that are regarded as having more believable advertisements are perceived as having higher levels of integrity, and as a result are better recognized and more likely to be patronized. This research contributes to literature in retailing and marketing communication by establishing the antecedents and consequences of building a learning-oriented and trustworthy business philosophy in a cultural specific context. It also provides practical guidance for retailers who aim to increase brand recognition and purchase intentions through promotional effort.     

The moderating effects of need for cognition and cognitive effort on responses to multi-dimensional prices

We investigate how need for cognition and cognitive effort associated with multi-dimensional pricing combine to influence demand. Experiment 1 shows that individuals with low (vs. high) need for cognition are less likely to purchase products that list price and relative discount separately. The direction of the effect of need for cognition on demand is found to depend on whether consumers’ inaccurate arithmetic generally leads them to overestimate or underestimate final prices. Therefore, experiment 2 finds that individuals with low (vs. high) NFC are more likely to purchase products that list price and relative surcharge separately. As expected, the effect is eliminated for absolute discounts or surcharges and mediated by recalled purchase prices.     

Consumer perceptions of corporate social responsibility in town shopping centres and their influence on shopping evaluations

This paper investigates the effects of retailer and town centre actions to demonstrate corporate social responsibility (CSR) on consumers’ evaluations of town shopping centres. Examples of CSR actions are donations to charities, support for schools or cultural or sports events and demonstrations of concern for the natural environment. Recent research literature suggests such actions can have positive effects on the attractiveness of retail stores, and hence are a potential basis of competitive advantage. This paper investigates if similar effects occur for evaluations of town shopping centres. Hypotheses about the mediating and moderating effects of CSR are tested in two conjoint experiments conducted on shoppers in the UK. The results shows that the explanatory and predictive performance of destination choice models for shopping can improve if they include indicators of a centre's CSR performance but the effects of CSR attributes are small compared to the effects of non-CSR attributes.     

In-store quality (in)congruency as a driver of perceived legitimacy and shopping behavior

This research builds on the institutional theory literature to investigate the impact of retailer’s in-store quality (in)congruency on consumer shopping behavior. Specifically, considering the consensual view of legitimacy as a variable of main interest to explain organizational survival, this research focuses on legitimacy as the mediating variable explaining the effects of in-store quality (in)congruency on shopping behavior. Results from a scenario-based experiment show that in-store quality (in)congruency affects legitimacy such that when merchandise quality is low, a high store environment quality leads to lower legitimacy. Also, the results show that legitimacy acts as a mediator that induces a decrease in shopping behavior. By highlighting perceived legitimacy as the underlying mechanism explaining the effect of in-store quality incongruency on consumer behavior, this research offer new insights for retailers.