The influence of multi-channel pricing strategy on price fairness and customer confusion

ABSTRACT

Multi-channel retailers face the challenge of coordinating marketing variables across their channels. In this respect, one of the main issues arising is whether to differentiate or integrate prices. Our study examines the impact of three multi-channel price differentiation instruments on perceived price fairness, customer confusion, and their consequences. In a scenario-based online experiment, we use a 2 x 2 × 2 between-subjects design and manipulate product price differentiation, online promotion and online shipping fees. The results indicate that price differentiation has an impact on fairness evaluations and customer confusion. Product price differentiation and online promotion are perceived as more unfair and lead to more confusion than price parity. Price fairness perceptions of shipping fees depend on product price differentiation. Customers perceive shipping fees as fairer than no shipping fees when prices are cheaper online but perceive shipping fees as less fair when prices are integrated. These results suggest that customers expect a consistent consideration of channel cost advantages and disadvantages and that shipping fees might serve as a cue for customers to consider the retailer’s channel costs. We further show that price fairness and customer confusion mediate effects of pricing instruments (in particular online promotion) on attitudinal and behavioral consequences.     

Using Internet Resources in Teaching Financial Reporting and Analysis of Multinational Enterprises

Abstract

There has been an increase in the number and type of sources of corporate financial information on the Internet in recent years. The number of corporations that have web pages which post corporate financial information is increasing; in addition, many government and regulatory agencies are also posting corporate financial information. Furthermore, there are some third-party sites that post corporate financial information. In recent years some software has been developed or is in the process of being developed to gather, analyze, and monitor information available on the Internet to accomplish specific tasks on behalf of users. The purpose of this article is to provide some sources of corporate financial information on the Internet and illustrate how to use these resources in teaching international business and, more specifically, financial reporting and analysis of multinational enterprises and to point out some of the advantages and limitations of these resources.     

Channels for search and purchase: Does mobile Internet matter?

Recent industry reports indicate that consumers own four digital devices on an average, and switching devices during shopping is the “new normal.” The addition of mobile Internet as a new channel of search and purchase has spurred the adoption of the digital medium, and easy accessibility of the Internet on multiple devices is influencing shopping patterns. A consumer may prefer some channels for search and others for purchase or use a combination of channels to search and purchase simultaneously. As a new channel, it is unclear 1) whether mobile Internet offers greater search or purchase benefits and 2) what type of products are more suitable for mobile Internet search and purchase. In this study, we develop a framework that describes the factors that drive the use of mobile Internet in a multi-channel environment. We test the framework using survey data from a sample of U.S consumers. The main findings from our study indicate that 1) the choice of channel combinations that include mobile relative to other channel combinations increases with an increase in perceived search convenience of mobile channel. 2) in the digital channel, mobile and desktop differ in their utility along search dimensions. The probability of choosing channel combinations that include mobile increases due to search convenience whereas desktop is attractive due to perceived gains of price comparison search; and 3) mobile Internet search increases for consumers searching for utilitarian products. The insights from this study deepen our understanding of how digital media is used in the search-purchase process and have important managerial implications.     

I need to touch it to buy it! How haptic information influences consumer shopping behavior across channels

Increasingly interactive touch-enabling technologies are mitigating the lack of haptic information for products online. This paper explores how consumers’ haptic traits – instrumental and autotelic – indirectly influence their impulse buying and channel stickiness intentions by the means of utilitarian and hedonic shopping motivations. A structural equation model investigating three shopping channels (i.e., physical, web, and mobile) reveals that haptic traits act differently across channels. Consumers with strong haptic traits prefer physical and mobile channels. The autotelic dimension is key in online channels. Findings support the implementation of effective multichannel strategies among retailers of high-haptic products, showing the mobile to be a valuable alternative to in-store shopping.     

Analyzing channel choice: Direct and indirect e-Tourism distribution

ABSTRACT

An increasing number of tourism service providers are involved in multichannel operations, combining online direct and indirect channels. Service providers and intermediaries need to know what drivers lead consumers to purchase on both channels in order to discover their own potential for differentiation and develop appropriate strategies. This research presents and tests a distribution channel choice model applied to data obtained by a survey aimed at online tourism purchasers. Not surprisingly, the results find that the Internet mitigates the differences between direct and indirect online channels from the demand perspective. Only one variable, information provided, has a positive effect on the choice of the direct channel, while two variables, assortment and basket size, have a positive effect on the choice of the indirect channel.     

Mobile shopping intensity: Consumer demographics and motivations

PurposeTo investigate how consumer demographics and motivations may influence their mobile shopping intensity.Design/methodology/approachAn online survey was developed to collect data using SurveyMonkey's online shopper panel. The final sample consisted of 937 mobile shoppers. Linear regression analysis was performed to test the hypotheses.FindingsConsumers' education and income levels significantly increase their number of mobile purchases, their frequency of purchases, and the amount of money spent on mobile purchases. Males have been found to spend more on mobile shopping than females, while younger people made more mobile purchases than older people. This study also identifies six types of motivations that drive consumers’ mobile shopping intensity, including convenience seeking, bargain hunting, enjoyment seeking, perceived usefulness, ease of use, and innovativeness.Research limitations/implicationsFuture research may examine additional motivational measures and situational factors and conduct cross-cultural studies.Practical implicationsFindings from this study can help businesses develop their mobile shopping strategies.Originality/valueThis is the first study to investigate how consumer demographics and motivations may influence their mobile shopping intensity.     

An omnichannel approach to retailing: demystifying and identifying the factors influencing an omnichannel experience

ABSTRACT

The purpose of this research is to identify the factors that influence an omnichannel experience. Omnichannel is an emerging approach to retailing that responds to the changing nature of how customers shop in alternation between online and offline shops, and the increasing use of digital devices (e.g. smartphones and tablets), as a consequence retailers are focusing and establishing a seamless integrated approach to their services. Omnichannel is now a hot topic in retailing but there is a lack of empirical studies into the factors that influence an omnichannel experience. Using a mixed methods approach, we propose and empirically test a conceptual model that identifies four factors influencing an omnichannel experience: brand familiarity; customisation; perceived value, and technology readiness. We conceptualise omnichannel to include three key channels; in-store, online and mobile. Two hundred and forty-six questionnaires were collected and analysed using PLS-SEM and 11 interviews were carried out with marketing/ omnichannel professionals. Our results indicate that brand familiarity has a strong influence on omnichannel (in-store, online and mobile) while perceived value has a negative impact on the mobile experience. Our results show that retailers need to consider multiple factors, such as brand familiarity, customisation, perceived value and technology readiness as influencing factors of an omnichannel experience, and plan the use of multiple touchpoints simultaneously to enhance their overall customer’s experience. Although this study demonstrates the significant factors influencing an omnichannel experience, questions remain regarding the exact use of each touchpoint by customers and the extent of overlap between the touchpoints. which .     

Duality of newspaper distribution channels: An analysis of readers' motivations

Abstract

The spread of the use of the internet has had a significant effect on the newspaper sector. Against this background, this paper analyses the duality of press distribution channels from the demand perspective. Specifically, we identify the main reasons that lead readers to read the press and, thereafter, we analyse the possible influence of such reasons on the decision to read online newspapers rather than the traditional press. The results confirm that both channels of information distribution are complementary, always provided that the products offered are sufficiently differentiated, given they may be associated to different motivations and use situations. Finally, the paper offers various recommendations for internet press management.     

Local Dealer Adoption of a Foreign Manufacturer-Sponsored Internet-Based Information System

ABSTRACT

Firms often use Internet-based interorganizational information systems (IBIS) to facilitate the integration of information and communication between channel members. However, in practice firms are sometimes reluctant or even refuse to adopt such systems, especially when sponsored by a foreign manufacturer to local dealers. This article presents an empirical study of 80 dealers faced with the IBIS decision from a large international tire manufacturer. The results indicate that perceived financial and usage benefits of the IBIS and security are important determinants of dealer adoption of an IBIS. Further, the results indicate that higher IBIS adoption levels correspond to changes in the nature of the channel relationship, operational and exchange benefits, and commitment of the dealer to the manufacturer.     

Consumers' Online Information Search for a New Restaurant for Dining-Out

ABSTRACT

By Nelson (1970)'s categorization, purchasing a service such as dining-out at a new restaurant is ‘experience-oriented’ in its nature, and its quality cannot be easily searched before the actual consumption. However, it has been suggested that the interactive nature of the Internet will improve market efficiency by creating a new channel of communication that allows the provision of information about experience attributes in a readily available format (e.g., other consumers' rating online). The paper empirically investigates this notion by exploring consumers' online information search behavior for a new restaurant for fine dining. The extent of usage of various online information sources and the perceived importance of each source are investigated in the United States and in Taiwan. Results show that information from other consumers is considered more important than information from sellers, but that US consumers favor non-Internet sources of information while Taiwanese consumers favor online sources.     

On manufacturers complementing the traditional retail channel with a direct online channel

With the explosion of the Internet and the reach that it affords, many manufacturers have complemented their existing retail channels with an online channel, which allows them to sell directly to their consumers. Interestingly, there is a significant variation within product categories in manufacturer's use of the Internet as a direct distribution channel. The main objective of this study is to examine the strategic forces that may influence the manufacturer's decision to complement the retail channel with a direct online channel. In particular, we are interested in answering the following questions:

1. Why is it that in some markets only a few firms find it optimal to complement their retail channels with a direct Internet channel while other firms do not?
2. What strategic role (if any), does the direct Internet channel serve and how do market characteristics impact this role?

To address these issues we develop a model with a single strategic manufacturer serving a market through a single strategic retailer. In addition to the focal manufacturer's product the retailer carries products of competing manufacturers. Consumers in this market are one of two types. They are either brand loyal or store loyal. The retailer sets the retail price and the level of retail support, which impact the demand for the manufacturer's product. The retailer's decisions in turn depend on the wholesale price as well as the Internet price of the product if the manufacturer decides to complement the retail channel with an online channel. Our analysis reveals that the optimality of complementing the retail channel with an online channel and the role served by the latter depends critically upon the level of support that the retailer allocates to the manufacturer's product in the absence of the online channel. The level of support allocated by the retailer, in the absence of the online channel, depends upon the retail margins on the manufacturer's product relative to that on rival products in the product category. When the size of the brand loyal segment is small relative to the size of the store loyal segment then in the absence of the online channel, the manufacturer can lower wholesale price and enhance retail support, especially when the retail margins on the rival products are low. In contrast, when the size of the loyal segment is large and the retail margins on rival products are high the manufacturer will find it more profitable to charge a high wholesale price even if that induces the retailer to extend low levels of support. If the manufacturer decides to complement the retail channel with an online channel, some consumers who would have purchased from the retailer might prefer to purchase online. Our analysis reveals that when consumers' sensitivity to price differences across the competing channels exceeds a certain threshold it is not optimal for the manufacturer to complement the retail channel with an online channel. However, this price sensitivity threshold itself depends upon product/market characteristics, suggesting that manufacturers seeking to complement their retail channels with an online channel should look beyond the nature of threat the online channel poses to the retail channel in devising their optimal distribution strategies. When the retail margins on rival products are sufficiently small, complementing the retail channel with an online channel when optimal allows the manufacturer to price discriminate and enhance profits. In contrast when retail margins on rival products are sufficiently high, complementing the retail channel with an online channel serves to enhance retail support. We also identify market conditions under which profits of both the manufacturer and the retailer are greater with the online channel than that without it. This is particularly interesting since the online channel competes with the retail channel.     

Consumers’ channel choice for university-licensed products: Exploring factors of consumer acceptance with social identification

This research investigated a modified-technology acceptance model (TAM) with two added antecedents (e.g., information search motivation and perceived risk) to examine whether online shopping channels would be adopted by college students, the main target market of university-licensed products (ULP). Moreover, this study tried to adopt the social identity theory to fit a modified TAM model to explain the role of identification with a university on the attitude toward shopping for collegiate products. This research surveyed college students from two large Midwestern universities and utilized structural equation modeling (SEM) to test the hypotheses in a conceptual framework. As expected from previous TAM research, two specific behavioral attributes explained students’ adoption of online channels. Moreover, the results showed that both information search motivation and perceived risk have significant positive effects on attitude toward shopping via online channels. Specifically, the students who have strong information search motivation from concerns about online shopping had a higher level of online channel purchase intention. In addition, the attitude toward ULP online shopping formed by the antecedents gave a different level of purchase intention about the multiple distribution channels. The results suggest that retailers in the ULP industry should build efficient multi-channel strategies by adopting online channels.     

Customer Channel Preferences in the Finnish Banking Sector

Abstract

This research examined a survey of 3,000 and indepth interviews of 30 financial customers who provided information regarding their usage of, and attitudes towards, financial distribution channels. Improvements in technology are facilitating the development of alternative delivery methods and channels, and this paper examines the implications both for customers and for banks. This study looks at customers' behavior and links it with their usage of financial distribution channels to determine if there are particular behavioral segments of customers who exhibit similar patterns of access to financial services. This should enable financial institutions to more efficiently market their delivery of financial services.     

Consumer Product Redistribution

Abstract

Formats for product redistribution are emerging and evolving, creating alternative channel options for consumers' disposition of unwanted possessions. These retail formats operate in both informal (e.g., garage sales) and formal (online auctions) economies. As consumers participate in redistribution channels, some retailers are confronted with new competition and the potential for declining sales. This article expands on both recycling and disposition literature by examining consumer disposition behavior and the flow of used products through various redistribution channels. Strategies are offered to address consumer disposition behaviors as well as to assist retailers in combating traditional and non-traditional competition.     

Consumer response to marketing channels: A demand-based approach

Abstract

Marketing channels have faced rapid structural and functional transformations during the last few decades. While a large body of research has been devoted to understanding the supply-side aspects of marketing channels, much less research has taken the demand-side perspective to study consumer perception of channel position and functions. This article extends the channel literature to a broader domain and develops a consumer-based theoretical framework reflecting factors that influence consumer perception of and reaction to channel strategies and decisions. The authors conceptualize that consumers’ perceived channel value is a critical factor in determining their loyalty behavior. Seven important channel features are identified that would positively influence the perceived channel value. The relationship between perceived channel value and channel preference is strongly dependent on the level of customer value co-creation. The article concludes with research implications and suggestions of avenues for future research.     

The effect of presentation,product availability and ease upon transaction reliability for online food delivery aggregator applications – moderated mediated model

ABSTRACT

With advancements in mobile technologies, online food-delivery aggregators (OFA) have become an important distribution channel for restaurants. This study examines how the OFA applications affect diner’s cognitive and affective states and subsequent behavior by empirically testing a research model that incorporates antecedents of transaction reliability for restaurant order booking using a mobile application. Data collected from a survey of 458 respondents are analyzed using SEM. Drawing from SOR, CVT, and cue theory, the research established that product presentation and ease of use predict transaction reliability and are important mobile application attributes while choosing a particular OFA. The moderated mediation model extends the stimulus-organism-response framework and the consumer value theory. The findings demonstrate the moderating influence of gender, where the relationship is stronger for females. The study has a positivist approach with causalities satisfying the fundamental law of SOR theory. Higher media richness shall lead to a positive feeling about the product. A good presentation of the products on the mobile screen shall enhance the perception of product availability. The presence of abundant products makes it easy to search, thereby ease of searching the mobile screen. Mobile applications should be updated regularly to keep pace with the ever-changing mobile technologies.     

基于购买决策的网络购物感知风险

消费者消费观念的转变,使得网购从尝试性形态逐步向日常形态转变。由于网络购物在时间和空间上的特殊性以及心理和社会原因,使得消费者在网购与实体购物时所感受的风险存在较多差异,往往感到网购比实体商店购物存在更高的风险。相对于实体购物,影响网络购物感知风险的因素主要集中在消费者、商品、零售商和技术四方面。商家要消除由于信息的失衡给消费者带来的不安全感,同时,还需要商家具有广泛的营销手段和工具,从而提高企业的产品或品牌被消费者选择的可能性。     

The Impact of a Third-Party Assurance Seal in Customer Purchasing Intention

ABSTRACT

Although e-commerce is evolving at an incredible speed, asymmetric information and opportunism have increased online purchasing risks and market inefficiencies. The lack of face-to-face contact and the inability of the customer to touch and feel tangible products necessitate that online business must provide customers with reliable information and convince customers of their trustworthiness. While the research on Third-Party Assurance Seals (TPAS) is not new, the effectiveness of TPAS has not been persuasively addressed by empirical studies. Our study is different from previous efforts in that it is comprehensive because it combines consumer trust, perceived risk, and influences of TPAS in the B2C e-commerce context. The results of the study show that (1) the effects of TPAS on perceived risk are channeled through perceived trustworthiness, thus demonstrating the mediating role of perceived trustworthiness in B2C e-commerce, (2) perceived risk, perceived usefulness of website, and subjective norm appear to be significant predictors of intention to purchase from the website, (3) a third-party assurance seal strongly affects online shoppers' perceived trustworthiness toward online retailers, while the seal appears to have little effect on perceived risk directly; perceived risk is strongly associated with intention to purchase from the website.     

Does the Use of Mobile Phones by Smallholder Maize Farmers Affect Productivity in Ghana?

ABSTRACT

This study evaluates the effects of mobile technology on productivity and the channels of transmission of these effects. Using propensity score matching procedures, the results show that mobile phone ownership and use significantly improves agricultural productivity. Specifically, the mobile phone improves the productivity of user-farmers by at least 261.20 kg/ha per production season. Further, we find that phone ownership and use impacts productivity more than phone use only. The identified channels of effect are extension services, adoption of modern technology and market participation. These results have key policy implications for Ghana and developing economies at large.