The effect of social media communication on consumer perceptions of brands

Researchers and brand managers have limited understanding of the effects social media communication has on how consumers perceive brands. We investigated 504 Facebook users in order to observe the impact of firm-created and user-generated (UG) social media communication on brand equity (BE), brand attitude (BA) and purchase intention (PI) by using a standardized online survey throughout Poland. To test the conceptual model, we analyzed 60 brands across three different industries: non-alcoholic beverages, clothing and mobile network operators. When analyzing the data, we applied the structural equation modeling technique to both investigate the interplay of firm-created and user-generated social media communication and examine industry-specific differences. The results of the empirical studies showed that user-generated social media communication had a positive influence on both brand equity and brand attitude, whereas firm-created social media communication affected only brand attitude. Both brand equity and brand attitude were shown to have a positive influence on purchase intention. In addition, we assessed measurement invariance using a multi-group structural modeling equation. The findings revealed that the proposed measurement model was invariant across the researched industries. However, structural path differences were detected across the models.     

The effects of document language quality on consumer perceptions and intentions

This article establishes a link between language quality in the documentation accompanying a product and consumers' evaluations of, and behavioural intentions towards, both the product and the manufacturer. In a laboratory experiment, 116 participants assembled a product using assembly guides with different language quality levels. Results show that language quality affects document evaluation, which spills over to the evaluations of both the product and the manufacturer. Findings also indicate that the documentation accompanying a product is a vital extrinsic cue used by consumers to evaluate both the product and the manufacturer, which implies that these documents are secondary products that add value to the primary product. Theoretical and managerial implications of these findings are discussed. Copyright © 2010 ASAC. Published by John Wiley & Sons, Ltd.     

Effects of price reframing tactics on consumer perceptions

This article compares the effects of three pricing tactics—temporal reframing of prices (TRP), measure-based unit pricing (UP), and usage-based UP—on various consumer perceptions. Although these tactics are similar as they all reframe retail prices to a smaller amount, dissimilarity also exists as the respective units used for calculating these reframed prices differ. A laboratory experiment was performed to draw comparisons among the three types in a context of print advertisement. The results suggest that usage-based UP provided the most beneficial information for consumers; however, the differences between usage-based UP and TRP were not substantial.     

The effect of weather on consumer spending

There has been a great deal of anecdotal evidence to suggest that weather affects consumer decision making. In this paper, we provide empirical evidence to explain how the weather affects consumer spending and we detail the psychological mechanism that underlies this phenomenon. Specifically, we propose that the effect of weather – and, in particular, sunlight – on consumer spending is mediated by negative affect. That is, as exposure to sunlight increases, negative affect decreases and consumer spending tends to increase. We find strong support for this prediction across a series of three mixed methods studies in both the lab and the field.     

The effect of duration metrics on consumer satisfaction

Consumers increasingly feel that time is scarce. To guide time expectations, many marketers have begun communicating duration metrics—information about how long most consumers typically spend on a given activity. Despite the rising prevalence of duration metrics, little is known about how they shape consumption experiences. Five experiments and an analysis of digital engagement data from articles on a popular online publishing platform show that longer (vs. shorter) duration metrics enhance satisfaction and word-of-mouth after an activity is completed. Subjective time perceptions underlie these effects, such that longer duration metrics make consumers feel like they have spent more time on a given activity, and consumers infer their ex-post satisfaction from the amount of time they feel they have invested. Thus, this research provides insight into how duration metrics operate and challenges the intuition that consumers prefer activities that demand less of their time.     

The roles of sensory perceptions and mental imagery in consumer decision-making

The current study examines the relationship between sensory perceptions and mental imagery and the mechanism through which sensory perceptions and mental imagery influence behavioral intent in store-based retailing. An online survey was conducted with in-store purchasers (N = 455). The results showed a significant correlation between sensory perceptions and mental imagery. Supporting the sensory marketing framework, both sensory perceptions and mental imagery indirectly influenced behavioral intent via anticipatory emotion and decision confidence. No direct relationships between sensory perceptions and behavioral intent, and between mental imagery and behavioral intent were found. Supporting Construal Level Theory, sensory perceptions had consistently stronger influences on consumer responses than mental imagery, while the underlying process was identical between sensory perceptions and imagery. The findings from this study shed new light onto sensory research and offer relevant managerial implications to enhance in-store shopping experiences.     

Differences in consumer perceptions of similarity and dissimilarity

Researchers have usually treated similarity ratings as the simple inverse of dissimilarity ratings. Tversky's theory of perception of similarity and dissimilarity (1977), however, explicitly recognizes that the attributes used in the perception of similarity and the attributes used in the perception of dissimilarity are decidedly different. In fact, the weights assigned to common and distinctive features changes according to the task at hand (i.e., when similarity is to be rated the common features are weighted more, and when dissimilarity is to be rated the distinctive features are weighted more). This study demonstrates these differences in a judgment task of rating similarity and dissimilarity on the basis of data that is external to the subjects.     

The effect of category label specificity on consumer choice

The current research demonstrates the category specificity effect, whereby an individual’s choice of options belonging to different categories depends on whether the options are categorized in a specific or abstract manner. In particular, when categories do not contain labels that specifically convey category knowledge, individuals tend to view the assortment as having more varied alternatives, leading to greater variety-seeking. Three laboratory studies employing the context of food menu selections were conducted to test our hypotheses. Study 1 and Study 2 reveal that, given the identical assortment of dishes, individuals are likely to order a greater variety of dishes when the menu contains no category labels or abstract category labels, as opposed to when it contains specific category labels. Furthermore, the use of abstract category labels increases the number of dishes individuals order. We further show that this category specificity effect on choice is mediated by the enhanced perception of variety offered in the menu. Study 3 demonstrates that the effect of category specificity is moderated by an individual’s familiarity with the food category.     

Income disclosure and consumer judgment in a multilevel marketing experiment

Consumer protection concerns have been raised related to income misrepresentation in multilevel marketing (MLM) recruitment. Though not required by law, some MLM firms choose to voluntarily disclose income information about previous participants. Through replication and extension of the experiment created in Bosley, Greenman, and Snyder (2020), we investigate the impact of these disclosures on consumer interest and earnings expectations. We test the external validity of their findings with subjects from Mechanical Turk and explore issues regarding treatment heterogeneity and better-than-average bias. Supporting prior findings, we present evidence that income disclosures, on average, do not significantly affect subjects' interest in the MLM opportunity, but they do decrease earnings estimates for most while increasing earnings estimates for a few. These effects depend on a subject's numeracy skills and whether they see their earnings potential as better-than-average. We also find that asking about earnings estimates first tends to decrease interest.     

Maximizing earnings and price fairness perceptions in online consumer-to-consumer auctions

We examine the effects of starting bids on seller earnings in online consumer-to-consumer auctions. As starting bids increase, and the number of bidders increase, seller earnings increase. Both the affiliated private value model and a reference price explanation explain seller earnings. Bidder price fairness perceptions are also evaluated and, higher starting bids positively impact price fairness perceptions for winning bidders but have an adverse effect on losing bidders. In total, these findings suggest that sellers receive greater earnings as well as no adverse price fairness perceptions from winning bidders by setting starting bids higher.     

Consumers’ perceptions of the fairness of price-matching refund policies

This paper examines the antecedents and consequences of perceived price-matching policy fairness. Among the antecedents, we study the effects of the refund depth if a lower competitive price is identified, the degree that the retail product assortment is available at competing retailers, and the consumers’ inference as to the retailer's motive for the price-matching policy. Product assortment uniqueness is identified as a key driver of fairness perceptions, both directly and indirectly through inferred motive. The three experiments show that consumers’ perceptions of the fairness of a store's pricing policy influence their price fairness perceptions, consequently influencing their retail shopping intentions.     

Price fairness perceptions and customer loyalty in a retail context

Loyalty and fairness are major research topics in the marketing literature. However, research examining how customer loyalty and fairness perceptions affect each other is lacking. This study examines these two topics in the context of a retailer increasing its prices, develops hypotheses, and tests these hypotheses using an experimental design approach. Results indicate that loyalty has a positive effect on fairness perceptions when price increases are low, though no such effect is found when price increases are high. Also, justifiable reasons for price increases lead to increased fairness perceptions when price increases are low, but any reason offered when price increases are high increases fairness perceptions. Whether distributive or procedural fairness influences post customer loyalty in the presence of price increases is dependent on both the level of the price increase and the reason offered for the price increase. This research provides implications for retailers and directions for future research.     

The effects of consumer perceptions of the salesperson,product and dealer on purchase intentions

This study examines effects of consumer attitudes toward a salesperson, a product, and a retailer on purchase intentions for a major purchase. A structural equations model is tested that allows a comparison of the size of effects attributable to these three attitudinal sources. The results suggest a significant direct influence of attitude toward the product on purchase intentions whereas the effect of attitude toward the salesperson is mediated by attitude toward the retailer. These findings suggest that from a retailer’s perspective, appropriate salesperson behavior can be a critical success factor since consumer attitudes toward the product appear to work independently. Other results and implications are also discussed.     

The role of attributions in consumer perceptions of retail advertisements promoting price discounts

This study examines whether information in an advertisement promoting a price discount is capable of affecting attributions made about the price reduction and whether these attributions, in turn, affect consumer perceptions and evaluations of the sale. Findings show that price image of the retail advertiser had a strong effect on attributions pertaining to the merchant and a marginal effect on product attributions. The attribution variables, in turn, explained significant amounts of variance in criterion variables measuring consumer perceptions of value, attitude toward the ad, and shopping intentions, beyond the variance explained by the store and discount claim variables manipulated in the study. These results suggest the importance of the role of attributions made by consumers when exposed to ads promoting discounts.     

Associations between demographics and perceptions of unethical consumer behaviour

Retailers may lose profits as a result of shoplifting and other unethical consumer behaviour. Research focusing on consumer ethical decision making is needed. Information provided by 1117 undergraduate students from universities within the US revealed that women are less accepting of unethical consumer behaviour than men. Subjects who reported that they very consistently follow the teachings of their primary faith are less accepting of unethical consumer behaviour than subjects who reported that they do not very consistently follow the teachings of their primary faith. Relationships between consumer ethical response scores and other demographic characteristics are discussed.     

The effect of loyalty program expiration policy on consumer behavior

Although loyalty programs can help divert costs to the future by using delayed rewards, unredeemed program currency can become significant liability for the firm. To alleviate this concern, many programs have introduced a point expiration date or have shortened their expiration time horizon. This issue of point expiration has received scant attention in the literature. Contrary to an intuitive negative effect one would expect from a more stringent expiration policy, our real-life data and lab experiment demonstrated that a finite expiration policy can affect purchases positively but only for consumers who have the flexibility to adapt their behavior to such a policy. We identified usage level and engagement in multi-store shopping as two sources contributing to flexibility. Overall, our findings point to a need to understand one’s customer base to design the optimal point expiration policy and program communication.     

The effect of exogenous product familiarity on endogenous consumer search

When a consumer is familiar with one product but not its competitor, she is faced with a decision: either buy what she knows, or engage in search to learn more. When search is costly, competing firms may attempt to encourage or discourage search by adjusting prices. In this paper we consider how competitive dynamics between two quality differentiated firms are affected if one product enjoys a familiarity advantage. Familiarity is defined as a consumer’s ex-ante knowledge of fit for a particular product. An increase in the level of familiarity for one product allows a firm to charge higher prices since there are more consumers with information on that product relative to the competition. We call this the direct effect of familiarity. However, an increase in familiarity also has an indirect effect, since it gives the rival firm a stronger incentive to decrease price in order to encourage searching, in turn increasing overall competition. The effect of familiarity on profits depends on the magnitudes of these effects, and it is moderated by the level of quality differentiation between products. For very high or very low levels of differentiation, the results are relatively straightforward. However, when the level of differentiation is moderate, the results are more nuanced, with the higher-quality firm realizing higher profits from more familiarity, even if it must lower prices due to the indirect effect. We also find that, contrary to conventional wisdom, overall competition may be higher when firms are more quality differentiated. This is driven by the fact that higher quality differences bolster the indirect effect, with a lower quality firm providing deeper price cuts to counter increased familiarity of a high quality rival. We conclude by examining how changes in the cost of searching impact equilibrium outcomes.

     

The effect of phosphate detergent bans on consumer clothing expenditures

Metropolitan sales data from the 1977 Census of Retail Trade were analysed to test whether phosphate detergent bans increased consumer expenditure on clothing: positive effects were found for men's clothing and domestic fabrics (sheets and towels). In areas with medium water hardness the average annual cost in 1977 equalled $11·08 per household. For 1984, the equivalent cost was $14·17 per household. These results are consistent with laboratory studies that show decreased detergency associated with non-phosphate detergents and increased fabric wear associated with carbonate-built detergents, the principle substitute for phosphate detergents. The bans impose the largest cost on hard water areas. In both ban and non-ban areas in 1977 higher laundering costs were associated with higher water hardness. Analysis of 1972 data indicated that water hardness did not affect clothing expenditures significantly when detergents contained large amounts of phosphates.     

The effect of activity identity fusion on negative consumer behavior

Negative consumer behavior is an important research topic as it explores consumer behaviors that threaten a brand's image and financial stability. However, prior research offers conflicting findings on whether a strong consumer‐brand relationship hurts or protects a brand after a market disruption or a brand transgression. To provide clarity on this issue, this work argues that disrupting the consumer‐activity relationship motivates consumers to reaffirm and protect their identity, thereby leading to negative consumer behavior. The data reveal that, after a brand‐initiated market disruption, consumers with high activity identity fusion are more likely to spread negative word‐of‐mouth, boycott the brand, and avoid repurchasing the brand in the future. Moreover, the data suggest that high brand identity fusion protects the brand during market disruptions; therefore, prior conflicting results may be due to the fact that the consumer‐activity relationship was not accounted for. Theoretically, this work establishes that consumers' relationship with their consumption activities has significant impacts on consumer behavior. Brand managers and marketers are urged to develop strategies that focus on strengthening the consumer‐brand relationship and not the consumer‐activity relationship.