Advertising,product quality,and complex evolving marketing systems

The paper analyses the advertising as power vs. advertising as information controversy as well as its recent empirical testing. It is stressed that this distinction focuses too much on the interaction between consumer and manufacturer while ignoring the retailer as an important stake-holder. To compensate for this lack, a complex marketing system perspective is introduced in which consumer, retailer, and manufacturer interact. However, these complex marketing systems might drift towards market equilibria which are against the consumer interests: that is, firmsmight lock out brands from the market by means of trade and sales promotions and then use advertising to protect their position. Consequently brands of better quality and/or innovative brands are barred from trade shelves.

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Werbung, ProduktqualitÄt und komplexe Marketingsysteme

Zusammenfassung Der Beitrag behandelt die kontroverse Gegenüberstellung von Werbung als Marktmacht und Werbung als Information, sowie einen neueren Versuch, diese Kontroverse empirisch zu entscheiden. Der Autor betont, da\ sich die Kontroverse zu stark auf die Interaktion zwischen Konsument und Hersteller konzentriert, wÄhrend der Handel als eigenstÄndig beteiligte Instanz übersehen wird. Um diesen Mangel zu beheben, führt er eine komplexere Perspektive des Marketingsystems ein, in welcher alle drei Instanzen interagieren. Die Analyse ergibt jedoch, da\ sich solche komplexe Marketingsysteme auf Gleichgewichte zubewegenkönnen, die gegen das Konsumenteninteresse gerichtet sind. Unternehmen können Konkurrenten mit handelspolitischen Ma\nahmen vom Markt fernhalten und dann ihre eigene Position mit Mitteln der Werbung schützen. Folgich können Marken besserer QualitÄt oder innovative Produktenwicklungen vom Markt ferngehalten werden.

     

The effect of attribute-based and alternative-based processing on consumer choice in context

The current research proposes that the extent to which consumer choices are affected by the decision process depends on the underlying nature of the choice problem. Specifically, choices resulting from substantial inter-brand comparisons and tradeoff analyses are vulnerable to whether product information is evaluated by attribute- or alternative-based processing. By contrast, choices resulting from a minimal cognitive processing are less sensitive to variations in the decision strategy employed. We test our theory in the well-known domain of choice context effects. Across three studies using multiple operationalizations of the decision process (i.e., information display format, product presentation mode, and processing goal), we find converging evidence that the more cognitively involving compromise choice increases when the environment facilitates attribute- versus alternative-based processing. Conversely, the choice of asymmetrically dominating option, which is characterized by relatively little analytical processing, does not depend on the type of decision strategy highlighted by the task.     

Changes in consumer choice: Further investigation of similarity and attraction effects

Attraction and substitution effects have been shown to be important determinants of brand choice when a new brand is added to a choice set. A simple framework is proposed for predicting the effect on relative market shares when a new brand is added to the choice set in an experimental setting. The study attempts to replicate previous results concerning the relative impact of attraction and similarity and to extend empirical findings to brand attribute positionings not examined in recent research on the attraction effect. Generally, the proposed framework operates as hypothesized, and results suggest that, in some instances, a new brand may benefit substantially from the joint effects of attraction and similarity.     

Cross-channel free-riding consumer behavior in a multichannel environment: An investigation of shopping motives,sociodemographics and product categories

Cross-channel free-riding, in which consumers use one retailer′s channel to prepare a purchase and then switch to another retailer′s channel to purchase, can substantially erode profit margins. This research aims to understand such free-riding from a consumer empowerment perspective, investigating shopping motives and sociodemographic covariates, as well as how this behavior might differ across product categories. A survey study of decision-making behavior shows that cross-channel free-riders mainly seek to fulfill price comparison, convenience and flexibility needs. The likelihood of free-riding is higher when consumers adopt cross-channel rather than single-channel behavior, which highlights a negative outcome of multichannel retailing. The likelihood of cross-channel free-riding differs across products but not sociodemographic covariates. The findings can be used to develop recommendations for managing retention strategies.     

Disentangling country-of-origin effects: the interplay of product ethnicity,national identity,and consumer ethnocentrism

The country-of-origin (COO) of products has been shown to affect consumer choice, especially in situations where the origin has a stereotypical association with particular products and depending on certain consumer traits (e.g., national identity, consumer ethnocentrism). However, little is known about how these phenomena are related. Two controlled experiments conducted in two different countries and product categories reveal that product ethnicity moderates the impact of national identity but not of consumer ethnocentrism. National identity is found to influence consumer preference only if the foreign product ethnicity is higher but not lower than that of comparable domestic products. Furthermore, while consumers with a low national identity are positively affected by a high product ethnicity of foreign products, this effect vanishes with increasing levels of national identity. This research has implications for academics and practitioners alike, as it examines important boundary conditions of country-of-origin effects that have been undiscovered so far.     

Linear processing in a semantic network: An alternative view of consumer product evaluation

While the linear model has been very successful in explaining the product evaluation process of consumers, it is quite uncertain what the model actually means in terms of underlying cognitive processes. An alternative model is developed, based on semantic network models developed in the psychology of memory, and used to explain the product evaluation process. It is shown that in certain cases this model leads to an information integration process structurally similar to the lineat model.     

The effect of time pressure on the choice between brands that differ in quality,price, and product features

Consumers often make purchase decisions while under time pressure. This research examines the effect of time constraints on the choice of brands that differ in perceived quality, price, and product features. Specifically, when making choices under time pressure, consumers were found to be more likely to choose higher-quality brands over lower-quality brands and top-of-the-line models with enhanced product features over basic models with fewer features. Alternative explanations for these effects are explored, and practical implications are discussed.     

The role of a consumer interest group in new product development: a case study of Canadians for home equity conversion

Since the mid-1960s there has been a significant increase in the number of public interest groups in Canada and the United States. Representing environmental, social and consumer interests, these groups serve as focal points through which consumer, business and government sectors interact. In the area of housing and community planning, public interest groups have been able to influence housing and planning policy to reflect the interests of housing consumers. Never, however, has a senior's advocacy group arisen with the purpose of attempting to influence the public and private sectors in the field of mortgage finance. Canadians for Home Equity Conversion (CHEC) is a grassroots advocacy group that represents exactly this cause. It is the purpose of this paper to describe the evolution of CHEC in order to broaden our understanding of the role of consumer interest groups in new product development. Home equity conversion will be discussed in the context of consumer, business and government interaction, and will serve as a case study that illustrates the public interest movement.     

Usage of,and satisfaction with,a governmental consumer protection agency

State consumer protection agencies provide alternatives for consumer inquiries and for redress when consumers are unable to obtain satisfaction. In this study, the major objectives were to determine whether consumers used the services of the Kentucky Consumer Protection Division, the frequency of contact, the method of contact, the satisfaction/dissatisfaction with handling of inquiries or complaints and characteristics of inquirers/complainers. Four different surveys were used to obtain the data. The data analysis indicated that a large percentage of those who made inquiries or complained were satisfied. However, only a small percentage of the consumers had contacted the CPD, and very few used the hotline in making requests or complaints. Those who had contacted the CPD were younger, better educated and had higher incomes. Among the recommendations are that increased efforts be made to publicize the hotline and other CPD services.     

Product liability and product safety-complementary approaches to consumer safety. Some observations of the situation in the EEA

Abstract

In this paper the author asserts that product liability and product safety are complementary instruments to achieve a safer environment for consumers. Whereas legislation on product liability has a remedying function, legislation on product safety has a preventive one. The present situation in the EEA countries as regards the implementation of the Council Directives on Product Liability and Product Safety is summarized as well as the basic content of the Directives. It seems that almost all EEA countries have implemented the Liability Directive. The EFTA countries probably have-in comparison with the EU countries-to some extent a more positive implementation approach. It is too premature to foresee how the EEA countries will implement the Product Safety Directive of June 29, 1994. However, for many years most West European countries have had rules regulating product safety. The product safety policy in the EEA countries has been enhanced by co-operation within the OECD, the EU and the EFTA. Market control co-ordination will be an important part of the EEA efforts in the future to increase safety for consumers.     

The dynamics of experiential learning: Microprocesses and adaptation in a professional service INV

In international new ventures (INVs), experiential learning happens in quick succession and across a wide number of diverse contexts. Yet, we lack an empirical understanding of the microprocesses through which INVs learn and adapt in their foreign expansion. Understanding those microprocesses is important because timely adaptation can save the venture time and resources, thus promoting sustainable growth. In this study, we investigate the dynamics of experiential learning and adaptation in the internationalisation process of an INV in the professional service sector. Findings from our study illustrate that the firm applies deliberate experiential learning by developing, revising, and finalising criteria for important dimensions in the international growth process, and adapts its internationalisation practices accordingly. We further show that deliberate experiential learning is predicated on an actively and closely monitored learning process, involving critical evaluation, adjustment of criteria, and acceptance of affordable mistakes, as opposed to learning by default.     

Creation of consumer loyalty and trust in the retailer through store brands: The moderating effect of choice of store brand name

Within the current economic context, store brands play an important role in differentiation strategies based on assortment and positioning in terms of distributor prices. To begin with, this study identifies three determining aspects of retail loyalty and trust: satisfaction with price levels, the perceived image of the assortment and loyalty to the store brands (SB). Secondly, this study proposes a theoretical relational model among the aforementioned aspects. Finally, this study analyzes the moderating role that the strategy of choosing SB name (umbrella brand label vs. brands different from the label brand) plays in the relationship between loyalty to SB and loyalty to and trust in the retailer. By including this moderating variable, we seek to contribute to current academic research and to provide insights into the importance that SB strategy (label vs. own name) has for the effect of loyalty to SB on the relative results of the retail company. Our research results show that making the umbrella SB name the same as the label brand name increases the positive effect of customer loyalty to SB on loyalty to the retailer, but not the effect of trust on this loyalty compared to chains that use SB names different from those of the label. These results have important implications for management.     

Trade liberalization, product variety and growth in a small open economy: a quantitative assessment

We develop a numerical growth model that quantifies the welfare effects of trade liberalization. Additional intermediate input varieties provide the engine of growth and dramatically magnify the welfare gains from trade liberalization. In our central model, a 10% tariff cut leads to a 10.6% estimated gain in Hicksian EV. Systematic sensitivity analysis shows that there is virtually no chance of a welfare increase less than 3%, but a 6.6% chance of a welfare gain greater than 18%. We show that complementary reforms are crucial to fully realize the potential gains from the trade reform.     

Advances in computation,statistical methods,and testing of discrete choice models

This paper gives a brief overview of recent developments in computation, estimation, and statistical testing of choice models, with marketing applications. Topics include statistical models for discrete panel data with heterogeneous decision-makers, simulation methods for estimation of high-dimension multinomial probit models, specification tests for model structure and for brand and purchase clustering, and innovations in numerical analysis for estimation and forecasting. In collaboration with Denis Bolduc, David Bunch, Michael Keane, Don Kridel, and Steve Stern.     

Comparative performance of polyester,polypropylene and chlorofibre thermal fabrics in simulated consumer use

Polyester, polypropylene, chlorofibre/acrylic and polypropylene/acrylic/wool thermal fabrics were compared for water absorption/wicking, pilling and relaxation following elongation. The polypropylene fabrics did not absorb water. Wicking was related to the mass of all but the polypropylene/acrylic/wool fabric, which had a structure unlike that of any of the other fabrics. The polypropylene/acrylic/wool blend had the optimal resistance to pilling, least dimensional change in laundering and negligible growth after elongation.     

Placing snacks in children's movies: cognitive,evaluative, and conative effects of product placements with character product interaction

ABSTRACT

Type of placement integration has been shown to influence placement effects in adults. However, no studies have explored the role of character product interaction (CPI) for product placement effects on children. We also lack knowledge about the moderating role of age in this context. We therefore exposed N = 363 children aged 6–15 years to a movie containing no placement, a static placement, or a CPI placement. The presence of placements affected cognitive and conative brand outcomes. However, children's product memory and consumption were higher for CPI placements compared to static placements. As a relevant implication for product placement research, we found that brand outcomes were independent of the children's ages and prior movie familiarity. This suggests that children's developmental stage concerning age does not mitigate product placement effects. Implications for educators and consumer advocates are discussed.     

Development and validation of a measure of consumer behaviors toward nutritional labeling in restaurants

This study identifies multiple steps for the development and validation of a measurement of consumer attitudes and behaviors regarding nutritional information in restaurants. These steps include an extensive literature review, in-depth interviews, experts’ reviews, a pilot test, and a customer survey. The final questionnaire that collected data from 617 restaurant customers was verified through statistical analysis of reliability test, construct validity, and confirmatory factor analysis. The measurement offers a method to evaluate customers’ use of nutrition information in restaurants and, thus, a tool to prevent obesity for the public.     

Consumer education as a parameter of consumer action in Latin America and the Caribbean

This article is based on a research project carried out at the Regional IOCU Office in Montevideo in 1990 in order to outline a general framework for the development of consumer education in Latin America and the Caribbean. Even if consumer organizations cannot control all variants of consumer education to the same degree, this article will highlight the consumer policy aspect by considering consumer education as a parameter of consumer action. Using a social systems approach to consumer policy as a point of departure, a typology of consumer problems and consumer action is outlined, and two paradigms relevant as a metatheoretical framework for the development of consumer education are accentuated. Within this context two approaches to consumer education are set out. The contents and methodology of consumer education in the broader sense of the word are highlighted, and a teaching guideline based on this approach is specified in further detail.

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Verbrauchererziehung als ein Parameter von Verbraucheraktionen in Lateinamerika und der Karibik

Zusammenfassung Der Beitrag basiert auf einem Forschungsprojekt, das im Regionalbüro von IOCU in Montevideo im Jahr 1990 mit dem Ziel durchgeführt wurde, einen generellen Bezugsrahmen für die Entwicklung von Verbrauchererziehung in Lateinamerika und der Karibik zu entwickeln. Auch wenn Konsumentenorganisationen nicht alle Spielarten von Verbrauchererziehung gleichermaßen beeinflussen können, betont der Beitrag den verbraucherpolitischen Aspekt dadurch, daß er Verbrauchererziehung als einen Parameter von Verbraucheraktionen auffaßt. Ausgehend von einer Typologie von Konsumentenproblemen und Konsumentenaktionen werden zwei Paradigmen als metatheoretischer Bezugsrahmen für die Entwicklung von Konsumentenerziehung hervorgehoben; in diesem Zusammenhang werden zwei Ansätze für Verbrauchererziehung dargestallt. Inhalt und Methodik von Verbrauchererzidhung im weiteren Sinne des Wortes werden betont und anhand einer Unterrichtsrichtlinie exemplarisch erläutert.

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Hans Rask Jensen is an Associate Professor at the Southern Denmark Business School, College of Business Administration, Grundtvigs Allé 150, DK-6400 Sønderborg, Denmark.