Manufacturers' brand advertising and how it influences manufacturers' and retailers' margins

This article describes the effects of manufacturers' brand advertising on the costs, margins and prices of firms in a real-life, 'dual-stage' world where manufacturers sell to retailers who resell to consumers. Unlike 'single-stage' models, which are frequently used by economists, in which manufacturers appear to sell directly to consumers or to deal with them through an inert distribution system, retailers in a dual-stage world neither buy nor sell as perfect competitors. Although in some industry structures advertising will raise prices to consumers, the welfare effects of advertising are far more benign in a dual-stage world. In intensively advertised categories consumers are more disposed to switch stores within brand than brands within store (just the opposite of relationships in categories where brand franchises are weak) causing there to be an inverse association between margins at the two stages. Thus, while intensive advertising will normally raise factory prices it will drive down retailer margins, often to the point that retail prices are below the levels that would be obtained if the industry were only lightly advertised.     

Time price differentials in the rent‐to‐own industry: implications for empowering vulnerable consumers

Rent‐to‐own enterprises represent a lucrative and rapidly growing industry. They are of particular concern to social service agencies, policy makers and consumers because they target a vulnerable, economically disadvantaged segment of the population. This article presents an investigation of a major player in the industry in one US state that fell under scrutiny by the courts because of a question of whether it is a retail enterprise covered by truth in lending legislation. Findings indicate that the average time price differentials charged by the largest retailer in this state exceed by more than three times the regulated 30% cap on interest rates. Rent‐to‐own is an example where regulation must be put into place so consumers can make more informed decisions. Such regulation, however, must be accompanied by financial literacy education that will further empower vulnerable consumers in the marketplace.     

Consumer debt in Australia: why banks will not turn their backs on profit

Five years into the 21st century and consumer debt levels in Australia are still escalating. Simultaneously, there is concern that an increasing number of consumers may be unable to meet their future financial commitments and also mounting alarm at the relative ease with which the majority of consumers can access additional credit facilities. At the same time, credit providers are avidly seeking greater profits by enticing consumers to borrow more and more. Against this background, the issue of corporate social responsibility (CSR) in the Australian consumer credit industry is discussed. The application of strategic stakeholder management theory to the activities of a specific class of lender – banks – is then discussed. The aim is to better understand why the contemporary demands of CSR will not lead banks to undertake a more vigilant approach to consumer lending advocated by consumer groups who, witnessing the impact of the growing level of consumer indebtedness on a number of consumers, are calling for more responsible lending practices. The opportunity to contribute to debate aimed at alleviating the risk of growing consumer indebtedness is highlighted. The paper concludes with an acknowledgement that, without intervention, factors such as competition in the free market for consumer credit, the demands of shareholders for profits, and consumers’ own folly in demanding immediate gratification and readily accepting additional credit as a means of financing their consumption, ensure that consumer debt levels will continue to rise.     

Biometric technology in retailing: Will consumers accept fingerprint authentication?

Biometric technologies are currently being tested by retailers to determine their applicability to business operations. Generally, the benefits of biometric systems relate to improved speed, more secure transactions, and better information management; however, such technologies also present retailers with the problem of protecting consumer privacy. This paper concentrates on one form of biometrics that is most often being tested by retailers––fingerprint authentication at point-of-sale. The purpose of this paper is to determine how readily this specific biometric technology will be accepted by consumers. Findings presented in the paper indicate that there has not been strong support by consumers.     

CONSUMERS’ VIEWS ON RESTRICTING IMPORTED APPAREL

The United States and most developed countries have experienced a dramatic influx of imported apparel, usually from low-wage, developing countries. In the U.S., industry representatives, retailers, economists, and others have been vocal in expressing their views to influence trade negotiations aimed at orderly trade in this commodity area. Consumers are affected by trade agreements but appear never to have been consulted previously regarding the restriction of imported apparel. This paper gives results of a telephone survey of 408 consumers in 10 areas of the eastern U.S. to ascertain their views toward apparel imports. Overall, respondents expressed strong preference for domestically produced apparel. A majority of the consumers perceived a trade deficit in apparel, saw imports as damaging to the domestic industry, felt that stronger laws should be passed to further restrict imported apparel, and said their clothing purchases were influenced by their views toward limiting imports. Chi-square tests determined relationships among the variables. A noteworthy contradiction was present in the findings. If further restrictions on imports were to become a reality, as the consumers said they would prefer, this means that respondents expressed loyalty to the domestic industry at the expense of being able to make choices which might be most advantageous to them as consumers.     

Young consumers’ food preferences within selected sectors of the Hospitality Spectrum

In society, young consumers are influenced by an array of factors within their home, school and social environments. The adolescent period is one in which the individual becomes a more independent consumer, exerting increased degrees of independence and a subsequent freedom of preference. Such independence may be particularly apparent within the social environment, despite young consumers generally being categorized under the ‘family market’, within the Hospitality Spectrum. The aim of the study was to analyse young consumers’ food preferences within the home, school and social environments, with particular reference to the role of the Hospitality Spectrum. Young consumers for the study, are defined as being between 11 and 16 years, segmented into two age groups: 11–13 years and 14–16 years. The selected sectors of the Hospitality Spectrum which were studied, were the fast food service and school canteen sectors. In order to fulfil the research aim and objectives, a range of research instruments and analysis techniques were used. The results of the study to date would illustrate that tentative steps have been taken within the school and fast food sectors, to bridge the ‘gaps’ between business supply and consumer preferences. Gender differences were found in food selections within school canteens and fast food establishments, with females more likely to select ‘British’ styled fast foods at school and males more likely to select ethnic foods at fast‐food establishments. No significant differences were found between the two age segments. It is vital that the increasingly important role of the young consumer segment is recognized, in particular considering them as individuals rather than as a part of the ‘total’ family consumer package. However, in market segmentation young consumers are an important consumer group and it must not be overlooked that they will be the future adult consumers. The Hospitality Spectrum must therefore treat this group with respect for the consumer service industry to achieve its full potential. The results of this Northern Ireland study indicates that although the young consumer segment is viewed as important within the selected sectors of the Hospitality Spectrum, the extent of their full potential has yet to be recognized.     

Variety-seeking as an emotional coping strategy for chronically indecisive consumers

The present research provides evidence that variety-seeking is a generalized emotional coping strategy for chronically indecisive consumers. Recent research reveals that (1) chronic indecisiveness is associated with increased variety-seeking behavior and (2) chronically indecisive consumers (vs. not) feel more positive after choosing a mix of products. The present research demonstrates that chronically indecisive consumers’ increased tendency to seek variety can be further inflated by inducing them to experience negative emotion unrelated to the choice task. This finding is directly at odds with past research that has repeatedly found an increasing effect of positive emotion on variety-seeking behavior. The present research shows that this effect does not hold for chronically indecisive consumers, who variety-seek even more when made to feel negative.     

Older is better: Consumers prefer older drugs

Despite increasing research attention to healthcare marketing in academia and the concerted effort of the pharmaceutical industry to market its latest products, limited research has explored the effect of launch time on individuals' drug choices. Building upon findings in medical literature that many newly launched drugs are indeed no better than existing ones, this study found that the majority of consumers consistently prefer older drugs when both options are claimed equally safe and/or effective. The reason is that consumers disregard declarative information and, instead, make their own inferences. Although there is a small segment that chooses the newer option for what they infer to be its higher efficacy, most consumers believe that an older drug is both safer and more efficacious. Further, promotion-focused consumers are more likely to choose newer drugs. The underlying mechanism for how promotion focus affects choice is identified. A sample of practicing doctors cross-validated our findings, which have implications for practitioners in the pharmaceutical industry.     

Facing society's demands for environmental protection: Management in practice

Although managers must stay abreast of all socictal concerns in developing organizational objectives, protecting the environment seems to be a major issue for consumers in the 1990s. This increased environmental concern leaves managers no choice but to go beyond mere social obligation when it comes to protecting the environment. Society is demanding social responsiveness at a minimum, and the call for social responsibility seems to be getting louder and clearer. This paper reviews the response business has made to this call for responsibility for the environment. Specifically, this paper will address the impact of increased business awareness on: (1) the passage of laws and legislation to protect the environment (social obligation); (2) specific organization actions to meet consumer demands (social responsiveness); (3) specific organization endeavors which reflect a sincere attempt to address the environmental issue (social responsibility). An awareness of these activities should aid managers in developing future plans which will allow them to become more responsible for our environment.Allayne Barrilleaux Pizzolatto is Assistant Professor of Management at Nicholls State University. Her research interests include business ethics, managing by fun, and job applicant testing. Dr. Pizzolatto has published in various journals includingJournal of Management Education, Journal of Vocational Behavior, andLabor Law Journal.Cecil A. Zeringue, II is a MBA student at Nicholls State University. He is also the general manager/system analyst of an electrical supply company.     

Consumer Acceptance of the New Red-Fleshed Apple Variety

The aim of this study was to investigate consumer preference for the novel red-fleshed apple genotypes. The information presented provides us with insight into consumer propensity to accept a new variety with radical visible innovative attributes and societal demand for a more sustainable production. The survey was carried out on the population of a province in central Italy, where there is consumer demand for organic and high-quality foods. The consumers’ opinions contrasted greatly and can be divided into two groups. Over one quarter of the respondents declared that they did not like the innovative fruit. The cluster analysis and CHAID analyses were performed on the consumers’ responses to determine sample groupings. Three clusters were identified among the consumers with positive opinions, enthusiastic, health-conscious, and unmotivated illustrating how the hierarchical level of preferences of the potential consumers of the red-fleshed apple fruit are triggered by various motivations. The surveys also pointed out that most consumers of the sampled population were not biased against research activities producing innovative food products. A large number of consumers, especially women, declared that they were willing to pay a higher price considering the increased nutritional value of red-fleshed apple fruits. By examining the broad context of this study, decision-making researchers and operators of the fruit industry will be able to make informed and realistic predictions concerning possible future scenarios and to determine the possible effects and desirability.     

The environmental value‐attitude‐system model: A framework to guide the understanding of environmentally‐conscious consumer behaviour

Business writers such as Charter in 1992 predict that addressing the environmental consciousness of consumers will be one of the most important issues industry will face in the 1990s, and was seen by Ottmann in 1992 as the marketing trend of the decade. In 1993 Coddington judged much of green consumer potential to be latent as the environmental concern expressed in surveys was not clearly visible in current consumer behaviour. How best to respond to this new challenge and exploit the potential market is still causing confusion amongst marketers. However, it is a practical business concern as consumers may become more explicit in their demand and use their purchase power as an economic vote to effect social and environmental change. It is argued that marketing conclusions can only be drawn from a thorough understanding of the phenomenon. In this paper, the value‐attitude‐system model of Vinson et al. in 1977 is applied and extended to provide an insight into the complex phenomena affecting environmentally‐conscious purchase behaviour by integrating the underlying influences from the individual belief system.     

Policy makers’ paradigms and evidence from consumer interpretations of dietary supplement labels

The regulation of marketplace information regarding health and nutrition is in flux. Nowhere, perhaps, is this more evident than in the dietary supplement industry. Herein, we present an experiment that examines the two major types of claims used for dietary supplements, testing the underlying assumptions made by policy makers. Our study suggests that a direct‐effects consumer decision‐making model does not apply in this context; instead, consumers process label claims through various biasing filters.     

The role of product history in consumer response to online second-hand clothing retail service based on circular fashion

The circular fashion system (CFS) posits that clothes not only need to be designed and produced sustainably but also need to circulate among consumers for as long as possible to minimize waste. Fashion industry experts believe that circular fashion will be the dominating future trend of the industry, and many brands and start-ups have launched platforms following the CFS where consumers can exchange or donate their used clothes. However, circular fashion still needs to overcome the negative images associated with second-hand clothes, such as contamination. What can decrease consumers' concerns with used clothes as well as promote circular fashion effectively among consumers? Based on the narrative competence theory, this study examines the effects of providing the product history of clothes on enhancing consumers' trust, perceived benefits, attitude, and usage intentions toward circular fashion service. An online experiment was conducted with 238 U.S. consumers. Results revealed that providing product history enhances consumers' trust toward the service and the perceived hedonic, social, and economic benefits of the service. Greater trust and hedonic benefits of the service enhance consumers’ attitude toward the service, which consequently increase their intentions to use the service. Implications and suggestions for future research are discussed in this paper.     

Neuromarketing: Ethical Implications of its Use and Potential Misuse

Neuromarketing is an emerging field in which academic and industry research scientists employ neuroscience techniques to study marketing practices and consumer behavior. The use of neuroscience techniques, it is argued, facilitates a more direct understanding of how brain states and other physiological mechanisms are related to consumer behavior and decision making. Herein, we will articulate common ethical concerns with neuromarketing as currently practiced, focusing on the potential risks to consumers and the ethical decisions faced by companies. We argue that the most frequently raised concerns—threats to consumer autonomy, privacy, and control—do not rise to meaningful ethical issues given the current capabilities and implementation of neuromarketing research. But, we identify how potentially serious ethical issues may emerge from neuromarketing research practices in industry, which are largely proprietary and opaque. We identify steps that can mitigate associated ethical risks and thus reduce the threats to consumers. We conclude that neuromarketing has clear potential for positive impact on society and consumers, a fact rarely considered in the discussion on the ethics of neuromarketing.     

Cultural influences on consumer satisfaction with impulse and planned purchase decisions

This study examines factors thought to influence consumers' planned and impulse purchase decisions including subjective culture (individualist or collectivist consumers) and the presence of another person at the time of purchase. Data was collected in four countries — the USA, Australia, Singapore, and Malaysia. The results indicate that overall, consumers are differentially influenced by others in planned and impulse purchase situations, even after controlling for price. These differential influences can be explained by culture. Compared to more individualist consumers, more collectivist consumers are likely to be more satisfied with an impulse purchase when another person is present at the time of purchase.     

Estimating Consumer Preferences for Value-Added Fish Products in Oman

Abstract

The European meat industry is confronted with substantial changes of consumer preferences in relation to the type and quantity of meat in everyday diet. One of the main reasons behind these changes is the public impression that meat is a “dangerous” to consume food. This feeling is the result of recent food scares where meat played a central role and their effect on consumers' perceptions about meat safety. The research at hand explores the market potential of organic meat in Greece and emphasizes the perceptions about meat consumption held by organic consumers as opposed to those held by non-consumers of organic foods. It is expected that organic consumers will be more interested in a series of quality attributes of meat commonly found in its organic type, in comparison to non-consumers of organic food. However, the main finding of the survey is that consumer demands in relation to meat quality and safety are particularly high, irrespective of meat's production method. The research concludes that the particularly low consumption of organic meat in Greece should be partially attributed to its insufficient differentiation in consumers' minds.     

The impact of consumers' time constraint and conspicuous consumption behaviour on the throwaway society

In highly competitive economies, productivity is always increasing as entrepreneurs, driven by the profit motive, strive to build a better mousetrap. Over time, this has given consumers a wealth of material goods. However, within this type of economy, the consumers need to consume all that is produced or else there will be distortions in the labour markets. However, as it turns out, we are able to consume all that is produced by having transitioned into a throwaway society, but there are environmental consequences associated with the replacing of malfunctioning household products instead of repairing and reusing these products. There are a number of factors responsible for causing consumers to replace a malfunctioning household product as opposed to repairing the product for reuse. The research in this paper will focus on two of these factors. The first factor is the time constraint that consumers are faced with and the second factor is conspicuous consumption. This research uses the results of an international survey conducted in seven different countries at different stages of economic development. The survey was conducted between November, 2015 and December, 2016. The results show that both the time constraint factor and the conspicuous consumption factor are significant in determining that if a consumer will look to replace a malfunctioning household product as opposed to repairing the product for further reuse. Furthermore, as more nations continue to develop economically and their GDP per capita grows, then the environmental impacts resulting from an increasing throwaway society by those nations will yield more hazardous environmental consequences.     

UK supply performance and company behaviour

On the basis of past performance, the medium term prospects for the British economy are grim. A trade deficit of current proportions cannot be sustained indefinitely. Nor can it be eliminated except by a long period of slow growth—no more than 1% or so for up to five years. Even a continuation of the remarkable increase in manufacturing productivity shown in the 1980s will not resolve this dilemma. As the British economy enters the 1990s the key question is whether the responsiveness of British industry to the export incentives offered by devaluation and slow domestic growth is much greater than in previous periods of recent economic history. There is evidence to suggest that this might in fact happen.     

The effect of income growth on the mix of purchases between disposable goods and reusable goods

With each passing year consumers find more and more disposable goods for sale in the market place. Even goods that were considered to be reusable goods just a few years back are now disposable goods. As a result the American economy has been labelled a ‘throwaway society’. This paper examines a main underlying cause for this trend by linking growth in consumer income with the purchases of disposable goods. More specifically, the model proposes that as incomes rise, consumers will purchase more of both reusable goods and disposable goods. However, as incomes rise, consumers will naturally substitute purchases away from reusable goods and into disposable goods. The shift towards disposable goods occurs because it becomes too costly for consumers to spend their time repairing and maintaining products. Their time is better spent in more productive endeavours. It is simply cheaper (in terms of opportunity cost of time) to dispose of old products and replace them with new products.