The effectiveness of number of deals purchased in influencing consumers' response to daily deal promotions: A cue utilization approach

This research proposes and empirically tests a theoretical model of consumers' response to online daily deal promotions. A unique feature of such promotions is their social influence, as they provide information about how many others have already purchased the offer. Integrating cue utilization and social influence theories, the model outlines how the social cue about the number of deals purchased by others influences consumers' deal evaluations and purchase intentions across a variety of conditions. The research findings indicate that the number of deals as an extrinsic cue affects consumers' deal evaluations and intentions only when intrinsic product and deal cues (good vs. service, discount size) and consumer personal characteristics (familiarity with the provider) are not present or are insufficient to infer deal attractiveness. The research offers managerial implications with respect to effectively designing and promoting online daily deals.     

An Alternative Explanation of Consumer Product Returns from the Postpurchase Dissonance and Ecological Marketing Perspectives

Research on consumer product returns has identified product failure, dissatisfaction, and fraudulent intent as primary causes. In recent years, however, consumers return products even before experiencing dissatisfaction and when products are not defective. Moreover, most consumers who return products are ordinary scrupulous people. Ironically, product returns are on the rise while overall product quality has improved. This suggests that there are other reasons for product returns yet to be uncovered. This study critically examines such types of recently observed product‐return behaviors from the postpurchase dissonance (PPD) and ecological marketing perspectives. A proposition emerged through the critical review that in the current competitive and consumer‐centered market environment, consumers increasingly choose product return over other options identified in the literature as a viable strategy to cope with their PPD. Two empirical studies and a recent major industry study on consumer product returns provided strong support for the proposition. Managerial and future research implications of the findings are discussed.     

What if your dentist looked like Tom Cruise? Applying the match‐up hypothesis to a service encounter

Research in advertising suggests the positive effects of spokesperson attractiveness only enhance consumers' attitudes if the attractiveness of the spokesperson matches up with the image of the product (Kahle & Homer, 1985; Kamins, 1990; Parekh & Kanekar, 1994). This study examines the effects of service provider physical attractiveness and tests the application of the match‐up hypothesis to the service encounter. Provider physical attractiveness (high, moderate, low) and service type (related or unrelated to attractiveness) were varied in a 3 × 2 factorial design. The experimental results suggest that when service‐provider attractiveness is congruent with the image of the service, consumers' ratings of service quality and their attitudes toward the service provider will be maximized. The results are explained with the use of a schema‐based information‐processing paradigm. © 2002 John Wiley & Sons, Inc.     

“Seize the Deal,or Return It Losing Your Free Gift”: The Effect of a Gift‐With‐Purchase Promotion on Product Return Intention

The current article sheds light on an important issue in marketing: how marketers can prevent consumers from returning previously purchased goods. This research examines the relationship between a gift‐with‐purchase promotion and consumer product returns, hypothesizing that consumers who purchase products that come with a free gift will be less likely to return the products. Evidence shows that a gift‐with‐purchase promotion reduces consumer product returns and that this relationship is mediated by perceived loss in returning a product. Then, the results indicate that the choice of free gifts reduces product return intention and that this relationship is serially mediated by perceived ownership and perceived loss. The findings further suggest that when consumers with high product involvement can select free gifts among alternatives, they tend to perceive more ownership and loss and thereby are less likely to return the promoted product. Overall, the current research proposes that consumers prefer to seize the deal rather than to return it when they get a gift‐with‐purchase, have a chance to select a free gift, and are highly involved with the product.     

Japanese consumers' use of extrinsic and intrinsic cues to mitigate risky food choices

The stated preference data were used to simulate and examine consumers' valuation of important extrinsic and intrinsic cues that are associated with risky foods. This analysis generates information on how consumers assess trade‐offs between price and selected intrinsic and extrinsic cues to determine their choice among alternative products. From this, optimum level of product quality attributes (i.e. intrinsic cues) and optimum price level for import products can be derived. Also, most effective sources of communicating food safety and risk management can be identified. The results show that the country origin cue is a key factor in understanding consumers' choice behaviour for food product that entails potential risk, which may suggest that consumers are using this information as a risk‐reduction strategy.     

Consumers' intentions to remain loyal to online reputation systems

The implications of recent consumer research for information system usage in the e‐marketplace are still poorly understood. However, understanding consumers' intentions to continue to use these systems remains a priority in practical marketing management, as leading marketplaces such as Amazon.com have widely embraced online reputation systems as a useful tactic in online marketing. The re‐ported study proposes an approach that differs from past research on this theme by incorporating Foxall's style/involvement model, which relates innovative behavior to cognitive style and involve‐ment in the product area. Based on a sample of 387 buyers from a top e‐marketplace in Taiwan, the findings indicate that consumers' underlying style/involvement levels significantly shape their continuance use intentions toward online reputation systems. The paper argues that consumers' cognitive styles and involvement levels should be adopted by researchers as major influences on system users' decision making in virtual purchase environments. © 2010 Wiley Periodicals, Inc.     

Tradeoffs Between Price and Quality: How a Value Index Affects

The present research examines how the availability of information about the value of a product, expressed as a ratio of the quality received per dollar, influences preference formation. This index, similar to unit price which provides information about how much quantity is received per dollar, presents consumers with information regarding the quality received per dollar. An experiment that compares consumers' preferences inferred from a choice task with their preferences inferred from a conjoint task was conducted. In the choice task consumers selected the most attractive alternative from a set of options, while in the conjoint task the attractiveness of each option was rated. Consumers, presented with an index of quality received per dollar paid (the value index), are more likely to choose a lower priced, higher value option rather than a higher priced, higher quality option compared to consumers presented with only price and quality information. Clearly, how a consumer chooses to “get the best for his or her money” depends on the ease with which information about the choices can be processed.     

I guess that is fair: How the efforts of other customers influence buyer price fairness perceptions

Past research has demonstrated that consumers' price fairness judgments are influenced by comparisons between the offer price they receive and the prices paid by other consumers for the same product offering. In today's digital age, reference points for purchases are more prevalent than ever. However, investigations on how certain inputs of the transaction affect these judgments is lacking. Specifically, extant research has failed to account for how the purchase efforts of other consumers can influence one's own price fairness evaluations. Moreover, relatively little empirical research has endeavored to understand the simultaneous cognitive and affective processes that explain how consumers arrive at price fairness judgments. To address these gaps in the literature, we introduce two studies aimed at understanding the process through which the salient efforts of referent consumers serve to mitigate perceptions of price unfairness when two customers pay different prices for the same product. The findings support a dual‐process model whereby the efforts of other (referent) customers serve to simultaneously reduce buyer anger and increase buyer understanding of the price disparity, ultimately mitigating perceptions of price unfairness.     

Exploring the Interplay of Cognitive Style and Demographics in Consumers' Financial Knowledge

Despite substantial research and advances in consumers' financial knowledge, many Americans still lack basic financial skills. One overlooked research area is the relationships between consumers' cognitive style and subjective knowledge and objective knowledge, and how these relationships vary by demographics. Based on a nationwide study (n = 817), results indicate that consumers' perception of their subjective financial knowledge varies by cognitive style, with those consumers having an intuitive cognitive style, having a higher perception of their subjective financial knowledge than those who are more analytical. More nuanced results suggest that subjective knowledge is related to the interplay of cognitive style with demographics, whereas objective knowledge is not dependent on this interplay. These and other results illustrate that understanding nuances of financial knowledge is still of pressing importance to ensure consumer well‐being.     

Beyond presence: Creating attractive online retailing stores through the cool AR technology

Augmented reality (AR) is increasingly coming into the spotlight for its potential to improve the consumer experience through the creation of presence. This research aims to explore the theoretical mechanisms through which AR-based product presentation influences online store attractiveness and whether the effects differ in the purchasing contexts of hedonic and utilitarian product types. From the perspective of consumers' bidimensional experience, we find that AR increases online store attractiveness by creating perceived coolness (intrinsic attribute) and spatial presence experience (extrinsic attribute), which would further have a positive impact on consumers' purchase intention. The mediating mechanisms are different in purchasing contexts of various product types: for hedonic products, perceived coolness and spatial presence are parallel mediating factors leading to the improvement of online store attractiveness; while for utilitarian products, only the mediation effect of spatial presence presents. Our findings enrich the literature on AR marketing by proposing an insightful mediating force (i.e., perceived coolness) to complement the effect of presence, and explore the different purchasing contexts. We also provide managerial guidance for e-retailers to differentiate AR interface design for diverse product types to apply AR technology effectively.     

Consumer perception of packaging: An eye‐tracking study of gluten‐free cookies

The growing interest in gluten‐free products makes it crucial to understand the mechanism of consumers' perception of gluten‐free claims. Due to the limited research measuring the influence of the type (verbal/nonverbal), number and location of gluten‐free statements on product labels on visual attention and consumers' purchase decisions, the main aim of this research was to evaluate the perception of gluten‐free claims and the Crossed Grain symbol on cookie packages of both consumers who are on a gluten‐free diet and those who are not. To that end, a questionnaire survey (600 respondents) and an eye‐tracking study (67 respondents) were carried out. The results showed that the respondents are aware of the basic rules of gluten‐free products' labelling, but 32% of those on the diet claimed that the products were not labelled properly. The analysis proved (p < .05) the significant relation between the number of gluten‐free claims and consumers' purchase intention. The respondents paid more attention to verbal gluten‐free claims than to nonverbal ones on packaging (p < .05). In the case of the Crossed Grain symbol, addition of verbal statement strengthened the information and decreased the respondents' level of uncertainty about a given product, which is important, especially for people newly adopting the diet. No difference in the visual attention to gluten‐free statements between the followers and non‐followers of the diet was found (p > .05), which allowed us to conclude that the perception of gluten‐free claims is an automatic process. These results suggest that designing product labels by considering the information architecture concerning gluten may help strengthen consumers' attitudes towards gluten‐free products and impact buying behaviour.     

A nonconscious processing explanation of consumer response to product design

Even though there is an established body of research concerning nonconscious memory processes and how they may influence preference formation, the importance of this work for understanding consumers' responses to product designs has been largely overlooked. Although evidence that product design can have a significant influence on consumers' reactions to products continues to grow, the process(es) by which responses to designs are formulated has received relatively little attention. The primary purposes of this article are to develop a nonconscious processing explanation of consumer response to product design and to focus attention on the area of design processing. A conceptual basis for understanding product design response formation is provided by research relating to various aspects of nonconscious processing (e.g., mere exposure, implicit learning). The implications of the proposed approach for consumer behavior and marketing are explored. Finally, several suggestions for future research directions are discussed. © 1999 John Wiley & Sons, Inc.     

Expectancy‐value theory contributes to understanding consumer attitudes towards cow's milk alternatives and variants

Although South Africans mostly consume cow's milk, cow's milk alternatives/variants are increasingly becoming popular and this could be attributed to higher demand and changing consumer attitudes. Using expectancy‐value theory approach, this study aimed to explore consumers' beliefs that exist to influence their attitude towards cow's milk alternatives/variants and consequently the acceptance or non‐acceptance thereof. Thirteen focus groups, each with four to eight participants, were conducted at the University of South Africa (Unisa) Science Campus in Florida, Gauteng, South Africa. Genders were separated to improve the facilitation of the discussion. The semi‐structured discussions explored and gave an insight into consumer attitudes and perceptions that influence acceptance of cow's milk alternatives/variants. The recorded discussions were transcribed and the content was analyzed for emerging themes and categories by two independent parties, who then compared these emerging themes and categories. Results showed that the primary factors that influence consumers' beliefs and, ultimately, attitude formation and predisposition to accept or reject cow's milk alternatives/variants are acquired through knowledge and perceptions coming from (1) direct experiences, such as familiarity with the products' internal and external attributes, conditional willingness and causal factors, (2) indirect experiences ingrained from childhood and (3) association, where consumers had no reference to the product to attach attributes for belief formation, leading to being astonished at the thought, being curious about the product or having no interest in it. This study demonstrated that consumers' acceptance of cow's milk alternatives/variants will ultimately depend on product‐related expectations.     

A Simulation Model Of Multi‐Echelon Retail Inventory With Cross‐Channel Product Returns

This study explores the relationship between a retailer's product returns processing structure and Multi‐Echelon inventory system performance under cross‐channel and same‐channel product returns policies with nonstationary demand. Our research contributes to the growing body of reverse logistics literature, offering insight into how a retailer's logistical returns management strategy can impact inventory effectiveness in cross‐channel retail environments. Adopting a contingency framework, we develop research hypotheses which we test through experimentation on a Multi‐Echelon retail inventory system within a discrete‐event simulation. Model parameters are derived from data collected from a large U.S. retailer of consumer durable and nondurable goods. We find an amplifying effect of a cross‐channel returns policy on the positive relationship between a decentralized returns processing structure and inventory effectiveness. Further, through our analysis of nonstationarity in demand and resulting returns, we uncover strong main and interaction effects that seasonal demand variation can have on inventory outcomes, even under only moderate levels of seasonality. Our results highlight the need for firms to align logistical structures for returns processing with the returns policy and the external environment, while also lending credence to calls within the logistics literature for improved modeling of nonstationary demand in inventory management research.     

How does consumers' Perception of Sports Stars' Personal Brand Promote Consumers’ brand love? A mediation model of global brand equity

Previous research on the sports marketing of global brands has focused mainly on the sponsorship of sporting events and the endorsement of products by athletes. This study reveals the unexamined effect of the impact of sports stars' personal brand on global brand equity and consumers' brand love. Based on global consumer culture (GCC) theory and self-expansion theory, this paper examines the influence of sports celebrities' personal brand on consumers' perceptions of global brand equity and brand love. Using survey data from 372 users of “HUPU”, our results revealed that the use of sports stars' personal brand (attractiveness, expertise, and congruence) was positively related to global brand equity and brand love. Belief in global brand citizenship has a full mediating effect between attractiveness and brand love but a partial mediating effect between expertise, congruence and brand love. Product quality partially mediates the relationship between expertise and brand love. These findings suggest that it is appropriate to use sports stars' personal brand to build global brand equity and increase consumers’ brand love.     

Brand alliance and customer‐based brand‐equity effects

This research examines brand alliances, a specific marketing strategy designed to transfer the positive brand equity of two or more partner brands to the newly created joint brand. The study explores how customer‐based brand equity (that is, brand equity as seen from the customer's perspective) of partner brands affects consumer evaluations of an alliance brand; how the brand equity of one partner brand affects the other; how customer‐based brand equity of the partner brands affects consumers' evaluations of the search, experience, and credence attribute performance of the alliance brand; and how product trial influences such evaluations. Results suggest that merely the act of pairing with another brand elevates consumers' evaluations of the partner brands' customer‐based brand equity, and high‐equity partners enhance pretrial evaluation of experience and credence attributes that are relevant to the high‐equity partner. As hypothesized, product trial moderates the equity value of the alliance partner for experience attributes, and brand equity of the partner brands influences consumer perceptions of the alliance brand's equity. © 2004 Wiley Periodicals, Inc.     

Measuring consumer's willingness to pay for organic and Fair Trade products

Previous research has extensively studied consumer's environmental and social concerns. However, measuring the value of the environmental or social dimension of a product remains a challenge. This paper proposes to partially fill this gap by measuring the double ‘Fair Trade and organic’ labels' value using an experimental method – the Becker‐DeGroot‐Marschak's mechanism. Two ‘organic and Fair Trade’ and two conventional chocolate products were tested on a sample of 102 consumers. Results show that organic and Fair Trade labels increase consumers' willingness to pay, and allow the identification of three consumers clusters. The first cluster represents people insensitive to the label. For the second cluster, the ‘organic and Fair Trade’ labels' influence on the improving image of the products is positive and important. And finally, for the third cluster, the valuation of the ‘organic and Fair Trade’ label is determined by the product's taste. Our research contributes to a better understanding of consumers' valuation of Fair Trade and organic labels, leading to our conclusions, which offer managerial implications with respect to this market (importance of taste and usefulness of double labels).     

Is Firm‐specific Return Variation a Measure of Information Efficiency?

The issue of whether firm‐specific return variation measures the private information reflected in stock returns or trading noise is controversial. Using a firm's geographic proximity to its investors as a proxy for a firm's private information, we investigate the relation between firm‐specific return variation and price informativeness. We find that firms located in metropolitan areas experience higher firm‐specific return variation and that holdings and trading by local institutional investors positively affect firm‐specific return variation. These findings suggest that higher firm‐specific return variation is indicative of more informative stock prices.     

It's not only what they buy,it's also what they keep: Linking marketing instruments to product returns

Online retailers implement various marketing instruments to boost their sales. These marketing instruments can not only impact sales, but also product returns. However, when assessing the performance of marketing instruments, retailers often ignore potential return effects. Theoretically, marketing instruments could increase or decrease returns, depending on how they affect expected and experienced costs and benefits related to a product. In this paper, we empirically examine whether, and how a comprehensive set of marketing instruments (newsletters, catalogs, coupons, free shipping, paid search, affiliate advertising and image advertising) affects product returns. We use data from two major online retailers and show that return effects vary largely across marketing instruments. Surprisingly, none of the instruments reduces product returns. Newsletters, paid search, catalogs and free shipping increase returns substantially by up to 18%. For free shipping and catalogs, the return effects emerge prevalently for fashion categories, whereas online advertising and newsletters increase returns of both fashion and non-fashion products. These findings enhance our understanding of how firm-initiated marketing instruments affect returns and provide guidance for online retailers in multimedia environments.     

Consumer rights or unethical behaviors: Exploring the impacts of retailer return policies

While a product return guarantee plays an important role in reducing perceived risk, a liberal product return policy may generate a moral crisis in consumers and induce unethical post-consumption behaviors. Situational questionnaires with two return policies, liberal and rigorous, are used to investigate how such policies influence consumers' moral reasoning and fraudulent return activities. This study finds that a return policy with different attributes results in differing consumer moral recognition, moral judgment, moral intensity, and intentions toward fraudulent return. Among these constructs, evidence of a strong correlation between moral judgment and unethical returning behaviors was found. Social consensus has a greater impact on moral recognition, moral judgment, and fraudulent return intention than on the magnitude of consequences and probability of effect. These findings from consumers' moral perspectives address gaps in the literature in which most studies take the retailer point of view in examining the effects of return policy. Understanding consumers’ moral decision-making is helpful for retailers who seek to avoid consumer abuse of return policies.