Choose wisely: Crowdfunding through the stages of the startup life cycle

Crowdfunding is attractive to startups as an alternative funding source and offers nonmonetary resources through organizational learning. It encompasses the outsourcing of an organizational function, through IT, to a strategically defined network of actors (i.e., the crowd) in the form of an open call—specifically, requesting monetary contributions toward a commercial or social business goal. Nonetheless, many startups are hesitant to consider crowdfunding because little guidance exists on how the various types of crowdfunding add value in different life cycle stages and which type is best suited for which stage. In response to this gap, this article introduces a typology of crowdfunding, the benefits it offers, and how specific benefits relate to the identified crowdfunding types. On this basis, we present a framework for choosing the right crowdfunding type for each stage in the startup life cycle, in addition to providing practical advice on crowdfunding best practices. The best practices outlined have shown demonstrable contributions toward achieving funding goals and are likely to prove valuable for startups.     

Seeking funding in order to sell: Crowdfunding as a marketing tool

Websites such as Indiegogo and Kickstarter have attracted much attention for their ability to enable organizations and individuals to raise funds from ordinary people who contribute for a number of reasons. This phenomenon is called crowdfunding. Crowdfunding permits organizations and individuals to obtain investments they otherwise might not receive from more traditional sources such as banks, angel investors, and stock markets. A number of now well-known startups had their origins in crowdfunding. More recently, established organizations have begun to use crowdfunding websites not only as a source of finance, but also as marketing platforms. In this way, they have been able to ensure a ready market for their new offerings, with full sales pipelines, and to use the platforms as vehicles to boost brand image and gain support for brand-related causes. This adaptation of crowdfunding for marketing purposes is not without its problems, however, and organizations would be well advised to consider not only the opportunities these platforms provide, but also their limitations and risks.     

How institutional logics shape fairness in crowdsourcing: The case of Threadless

Fairness is essential for successful crowdsourcing. Without it, companies run the risk of consumers not participating, or worse, sabotaging the crowdsourcing initiative. Yet little is known about how consumers determine what is fair in crowdsourcing. Building on theories of organizational justice and institutional logics, and using a longitudinal netnography of Threadless, a popular crowdsourcing platform, this paper shows how experiences of fairness stem from the interaction between two conflicting crowdsourcing logics: the logic of renewal and the logic of community. The two logics inform notions of fairness in crowdsourcing contests across procedural, distributive, and interactional justice dimensions. A balance between the two logics is ideal for maintaining fairness among a crowdsourcing community. We show the conditions in which crowdsourcing participants tolerate transgressions to each justice dimension, consequently emphasizing one logic over the other. Overall, our study advances theory on crowdsourcing logics and how they guide notions of procedural, distributive, and interactional fairness in crowdsourcing. Our study also offers new guidance on how to manage fairness in crowdsourcing.     

International advertising campaigns in fast-moving consumer goods companies originating from a SMOPEC country

A particularly interesting area of research concerns how international fast-moving consumer goods (FMCG) companies from small and open economies that operate in turbulent markets plan successful advertising campaigns for international markets. The objective of this research was to determine how they are planned and what factors affect this planning. The theoretical part of the study reviews literature related to the internationalization of firms, international advertising campaigns, and standardization versus adaptation of international advertising. Based on the literature, a theoretical framework and propositions regarding the international campaign planning process for FMCG companies were developed. The empirical part uses the multiple-case study method to examine four FMCG companies that were founded in Finland. The empirical results show that five stages are especially important in the international campaign planning of FMCG companies. Moreover, the companies need to consider a number of factors when deciding on international adverting campaigns. The study presents a number of theoretical contributions and managerial implications. A novel finding relates to the importance of understanding the impact of the internationalization/globalization phase of the company. During internationalization often within the home continent, companies increasingly adapt advertising campaigns to different countries, whereas globalization to other continents calls for increased standardization across countries. Another interesting finding was that FMCG companies from small and open-economy (SMOPEC) countries often use innovative non-traditional campaigns to overcome the resource limitations.     

What motivates consumers to participate in boycotts: Lessons from the ongoing Canadian seafood boycott

Despite the tremendous growth in consumer boycotts, marketing has paid relatively little attention to consumer boycott motivations. Addressing this deficiency, this study uses netnography to investigate boycott motivations and perceived boycott participation costs by analyzing consumer comments submitted to an online boycott petition. The results show that boycott pledgees explicitly express their desire for the target to abolish its egregious behavior, their anger about the behavior in question, and their desire for punitive actions. Signatories also pledge participation for moral reasons and identify with the cause reflected by the boycott. Boycott motivations also include the belief that consumers have the power to impact the boycott target's bottom line and/or behavior as well as the belief that the boycott will succeed in forcing the target to cease its egregious behavior. Signatories, however, rarely refer to the costs of boycott participation.     

Not just a mother: embodied and positional aspects of consumer learning from a practice perspective

Consumer socialization is usually associated with young consumers, but transitions that require learning new types of consumption patterns can occur at any point in life. Although the literature on transitional consumers is quite fragmented, an important body of consumer research explores transitional consumers from the perspective of role theory. Nonetheless, role theory has not problematized learning and due to its static nature role theory tends to overlook how consumer learning becomes embodied over time as well as how this learning is affected by experiences from related practices. With a practice theory approach to learning and based on an ethnographic study of mothering through dinner consumption, this paper highlights learning as an embodied experience influenced by the practitioners’ positioning in time and space as well as by multiple sources among which the market has become increasingly important.     

Lessons from the COVID19 pandemic: The case of retail and consumer service firms

The COVID-19 pandemic has impacted business operations in every industry and sector around the world. Scholars, practitioners and policymakers continue to engage in understanding the effects of lockdowns, social distancing measures and other restrictions on trade; the impact of government stimulus and support measures, and how businesses have adapted their operations. The dynamic nature of the virus, and the changing socio-political and economic landscape, provide the opportunity for empirical scholarly research examining how retail and service firms have responded to the challenges and potential opportunities presented by the pandemic, and how owner/managers have pivoted in an (often) uncertain trading environment. This paper presents the findings of an applied study involving business owners (N = 268) of SME retail and service firms in the island state of Tasmania, in Australia, during the first wave of the pandemic in 2020. Findings show: (1) despite over 65 per cent of respondents reporting a downturn in revenue during 2020, almost 80 per cent indicated they had confidence in business survival heading into 2021; (2) whilst on average, businesses did not rate the level of environmental hostility as being particularly high, there was a significant correlation between perceived environmental hostility and assessment of business performance and with the level of confidence of business survival; (3) Australian federal government support and other stimulus measures were deemed crucial for business survival during 2020 with three quarters of businesses accessing the ‘JobKeeper’ scheme, and (4) businesses adapted their operations during the pandemic in terms of new products and services, increased marketing, pivoting their use of technology and promoting ‘localness’.     

Conceptualizing and measuring consumer social responsibility: a neglected aspect of consumer research

Despite the availability of extensive research on a wide range of consumer‐related areas, some socially sensitive consumer issues have still remained relatively unexplored. Since literature review revealed a gap in the conceptualization of consumer social responsibilities, this article conceptualized, developed and validated a measurement scale for consumer social responsibility (CnSR), using a rigorous methodology suggested in the scale development literature. The study responded to the scholarly calls for further research in this area. Using a total sample of 491 respondents (53 respondents for pilot, 207 for exploratory survey and 231 for confirmatory survey), the study proposed a six‐dimensional measurement scale for CnSR, including: (1) social impacts, (2) solidarity, (3) critical appraisal, (4) supporting business growth, (5) environmental impacts and (6) action. It is argued that with ever growing impacts of corporate social responsibility on business practices, the validated measurement scale will contribute to the advancement of research in this nascent consumer area.     

Private certification schemes as consumer protection: a viable supplement to regulation in Europe?

In the European single market, most product certification schemes are privately organized. This paper considers the goals and pitfalls of private certification as a form of market‐based and multi‐stakeholder consumer protection that relies on the transparency of information and the possibility of consumers choosing accordingly with their preferences.     

Vulnerability of the unbanked: evidence from a developing country

Financial exclusion is an apparent phenomenon globally, the majority of people without bank accounts living in the developing countries. Those who lack access to financial services could experience vulnerability. Therefore, the purpose of this study was to unfold the vulnerability of the low‐income unbanked consumers in a Pakistani context. Qualitative data were gathered from low‐income unbanked consumers through in‐depth interviews. The findings suggest that unbanked consumers are vulnerable in many ways. The participants faced several negative consequences due to their financial exclusion, which resulted into their personal, economic and social detriment. Based on our study findings, we provide managerial and public policy implications for the well‐being of the low‐income unbanked consumers. Lastly, study limitations and future study guidelines are discussed.     

Challenges and opportunities of new retail horizons in emerging markets: The case of a rising coffee culture in China

Economic growth and a rising middle class consumer base make emerging markets an attractive prospect for many international businesses. Changing patterns of retail in these countries present opportunities for business expansion that many are keen to capitalize on, but also present challenges for reaching their ambitions. This article examines the growth of the coffee shop industry in China—considering its key dynamics and drivers—in order to address questions about successful retail expansion in emerging markets. We aim to explore how changing consumer cultures have contributed to a rapidly growing industry and what strategies businesses have used to enter the market and maintain growth, as well as considerations for potential retail success in the future.     

Critical consumer issues in St. Lucia: an examination of consumer challenges and related learning among rural adults according to income levels

Consumer education is a relatively new and growing interest in St. Lucia. Neither the government nor the National Consumer Association has established a consumer education programme to address the growing consumer concerns in the country. The purpose of this study was to examine critical consumer issues, related learning challenges and strategies among rural adults in St. Lucia according to income levels. Rural adult consumers are most disadvantaged in terms of levels of education, income and access to resources, which may help to prevent and mediate consumer concerns. The specific research questions examined were: (1) What is the nature of problems experienced by rural St. Lucian adult consumers in the marketplace? (2) How do rural St. Lucian adult consumers solve the challenges they encounter in the marketplace? (3) What is it like for rural St. Lucian adult consumers as they go about trying to learn to solve the consumer issues they face? and (4) What do rural St. Lucian adult consumers perceive to be the requisites for effective decision making in the marketplace? Data were collected using a questionnaire comprising of 29 questions divided into four sections (problems, strategies, solving consumer problems and making effective decisions) and two biographical questions. A total of 500 rural adult consumers were surveyed verbally through door‐to‐door contact. The findings of this study revealed that middle‐income rural adult consumers experience more problems in the marketplace than those with each lower or higher level of income. Middle‐income rural adult St. Lucian consumers in particular seek more information and are comfortable with using more strategies than the lower‐ and higher‐income rural adult consumers. This research gives us a better understanding of the problems faced by rural adult consumers based on their income. Research results will be useful to the government of St. Lucia and the National Consumer Association when they decide to establish an adult consumer education programme for St. Lucia.     

Antecedents of consumers' time perceptions in a hypermarket retailer

This study examines the effects of five antecedents on consumers' time perceptions in a hypermarket environment. Findings indicate that the actual shopping time spent in the store and planned shopping activities significantly influence consumers' shopping time perceptions, while consumers' waiting time perceptions are driven by both actual checkout waiting time and actual shopping time. The article examines time gaps, i.e. consumers' errors in time estimation, as related to store loyalty intention and finds that past consumer purchases moderate the relationship between both time gaps and store loyalty intention. Managerial implications are discussed in the article.     

Understanding the vulnerability of blind consumers: adaptation in the marketplace,personal traits and coping strategies

ABSTRACT

The purpose of this article is to examine the vulnerability perceived by blind consumers in the marketplace. By analysing the narratives of 16 people that have acquired blindness, we develop an understanding of the internal and external factors that affect their degree of vulnerability and identify their coping strategies. Data analysis consisted of content interpretation and a search for the meaning of the particular experiences, events and states reported by the respondents. Results show how emotional well-being, consumption-facilitating social support, acceptance, autonomy and perceptions about marketplace difficulties all relate to coping mechanisms.     

Measuring Consumer Ethnocentrism: An Assessment of Reliability,Validity and Dimensionality of the CETSCALE in a Developing Market

ABSTRACT

Based on 305 surveyed consumers in Zimbabwe’s two major cities (Harare and Bulawayo), the study sought mainly to measure consumer ethnocentrism and to test psychometric properties of the CETSCALE in Zimbabwe using structural equation modeling. It was established that the construct of consumer ethnocentrism comprises two dimensions, namely negative influence of foreign products, and preference for domestic products. Consumer ethnocentrism was found to be moderately high. The psychometric properties of the CETSCALE tested above the required thresholds. Consumer ethnocentrism was found to negatively influence consumer attitude towards imported poultry products. The study has implications for managers and future researchers.     

The impact of weather on consumer behavior and retail performance: Evidence from a convenience store chain in China

Despite extensive use of weather data to adjust replenishment and inventory strategies in the retail industry, these companies do clearly know the effect of weather on consumer behavior and retail performance. How does weather affect consumers' purchasing behavior and thus retail performance? We study empirically these questions by analyzing more than 6 million transactions made by more than 1.62 million unique consumers at 146 convenience stores in a convenience store chain in China. We choose sun, rain, temperature, and air quality index as the main weather variables. We use the average number of items per order and the average price of each item in each order as indicators of consumer behavior, and use store daily sales as an indicator of retail performance. We found that under rainy weather, people will buy more products with higher item prices in one order. When temperature rises, people will buy fewer products with a lower item price in one order. In addition, sunny weather and rainy weather have a positive impact on daily sales than cloudy weather. Air quality has a negative impact on daily sales, while temperature has a positive impact on sales. Finally, we study the impact of weather on different product categories. We find that the results depend on the product category characteristics.     

No easy solutions: lessons learned from an intervention to reduce clinic non‐attendance rates in a Scottish hospital

Hospital waiting lists and times have become the public measure of government success or failure. This research examined existing hospital outpatient capacity and considered the age‐old problem of patients who fail to attend their appointment. A reduction in did‐not‐attend (DNA) rates would maximize utilization of capacity, ensure early diagnosis and drive down waiting times. The research was designed to determine whether the introduction of outpatient letters, which included the need for positive confirmation of attendance, decreased the incidence of patient non‐attendance. Utilizing an experimental design, data gathered at two Plastic Surgery clinics were compared over two three‐month periods, pre‐ and post‐implementation. Total attendance and non‐attendance were examined in terms of new and review patients, gender and age profile. The research concludes that the intervention tested in this form can now be discounted thus allowing the exploration of subtler solutions.     

An empirical assessment of the Consumer Agency Model: Evidence from India and China

Abstract

This research empirically validates the Consumer Agency Model which illustrates consumer reactions to the introduction of new Western products to emerging markets. This study represents the first quantitative effort to test the framework in a comparative field study of consumer attitudes towards a franchised business in the two largest emerging markets globally, China and India. It builds on the original model with McDonald’s as the prototypical representative of the Western franchise industry. The analysis confirms existence of the Consumer Agency Model with remarkable similarity in both countries. Implications for franchise companies as they target the two investigated markets are provided.     

Perceptions of food quality: Evidence from a survey in Shanghai

Recent food scandals in China significantly decreased the level of consumer trust toward the food chain, and, at the same time, increased the demand for food quality and safety. This paper investigated perceptions and determinants of food quality among a sample of households in Shanghai. Survey questionnaires were collected between June and December 2014, and a total of 509 interviews were completed. Questions asked about food purchasing behaviours, dietary habits, and the importance of food quality when food shopping. Socio‐demographic and socio‐economic variables were also collected. We used ordered logit regressions to investigate the most significant factors associated with food quality. We found that respondents who frequently bought vegetables were 31% more likely to look for quality attributes (p < .1) and respondents who often bought rice 28% more (p < .01). Branding was also positively associated with the demand for food quality. In particular, consumers considering brand an important element were 25% more likely to believe that the product was of high quality (p < .05). Among socio‐economic variables, higher income and education were significantly associated with food quality demand. Our results indicated that consumers in Shanghai paid increasing attention to food quality, and they especially associated it with traditional foods and brand. We suggested that policy makers and stakeholders in the food chain should strengthen food quality certification systems, and help consumers make better and more informed choices.