How digital platforms influence luxury purchase behavior in India?

In an emerging country such as India, consumers are tech savvy and connect easily with digital media platforms. They use these platforms even for luxury purchases. However, there have been only a few conceptual papers on this process. Therefore, this study aims to explain how digital platforms influence consumers’ decision for luxury brands in India. Two qualitative studies were conducted with young Indian consumers as they are the heaviest users of digital platforms and the most frequent purchasers of luxury brands. The first study consisted of 156 respondents in 15 focus groups in four major Indian cities. The second was made up of 95 on-site customer observations in 18 retail luxury stores and 45 consumers’ interviews. These data were further validated by 32 interviews with luxury brand managers and retail managers We found and developed a cyclical framework that projects digital media influences on Indian consumers at all the phases of purchase, i.e., pre-purchase is digital and hedonic, purchase is experiential and enjoyable while digital media is used and post-purchase is based on aspirations, lifestyles and virtual networks. More importantly, these consumers are always connected to reference groups digitally who significantly affect their purchase behavior and subsequent brand choices.     

The new wave of AI-powered luxury brands online shopping experience: The role of digital multisensory cues and customers’ engagement

Academic literature retains a dearth of empirical evidence of the cutting-edge aspect of artificial intelligence (AI)-powered digital assistance and digital multisensory cues, despite the prospect of these factors on real-life customers' luxury brand online shopping experience. Thus, the aim of this study is to examine the significant pathway and effects of AI-powered digital assistance toward customers’ luxury brand online shopping experience. Drawing on S–O-R (Stimulus, organism, and response) and TRAM (Technology Readiness and Acceptance Model) paradigm, a multi-method research design was deployed to investigate constructs. Firstly, semi-structured interviews were utilized to explore customers' online behavior under the luxury brands and information technology aspect. Secondly, survey data were collected and analyzed by using partial least squares structural equation modeling (PLS-SEM) and fuzzy-set qualitative comparative analysis (fsQCA). The PLS-based analysis of quantitative data confirmed the exploratory insights of qualitative findings, establishing the connections of AI-powered digital assistance, customer engagement, and customers' luxury brand online shopping experience. Research findings also suggest that customer engagement plays a mediation role in the relationship between AI-powered digital assistance and customers' luxury brand online shopping experience. Besides, digital multisensory cues moderate the relationship between AI-powered digital assistance and customer engagement. Further, fsQCA complements the findings of PLS-SEM that reveal the significant combination of factors that lead to the perceptions of customers' luxury brand online shopping experience.     

The role of context in SME internationalization – A review

This article reviews how context has been considered in studies on SME internationalization. It examines 333 articles published during the period 2010–2020 in leading international business, entrepreneurship, strategy and international marketing journals. It identifies their key findings, discusses the theoretical perspectives informing this literature, analyzes conceptual and methodological challenges, and suggests paths for theory development and future research. The review also provides a platform from which to address some of the limitations in international business [IB] theories when applied to SMEs, including organizational size as a boundary condition.     

How far can luxury brands travel? Avoiding the pitfalls of luxury brand extension

Brand extensions are always tempting to marketers, and in the case of luxury brands the allure is particularly strong. While the path to luxury brand success may be partly paved with extensions, there are even more examples of brand extension disasters that litter the way. Brand extensions continue to be among the most researched and studied phenomena in marketing. When it comes to luxury brands, however, the factors that lead to successful extension have received far less attention. In this article, we consider the notion of perceived premium degree of the brand as a function of its category, and what we term the degree of adjacency between its product categories. Building on our research, which found that a luxury brand's perceived premium degree has a different impact on profitability depending on whether or not the brand is spread across adjacent product categories, we demonstrate when luxury brand extensions work—and when they fail. Perhaps most importantly, we herein introduce the premium adjacency matrix as a tool for luxury brand managers to consider in formulating extension strategies.     

Celebrity endorsement in the world of luxury fashion – when controversy can be beneficial

ABSTRACT

Can a negatively publicised celebrity endorser ever lead to favourable brand attitudes toward a luxury fashion product (i.e. a perfume)? An online experiment was conducted with a sample of 260 target-relevant female consumers where two factors were manipulated: the brand’s positioning objective (image reinforcement versus revitalisation) and the type of celebrity endorser (naturally versus incidentally controversial). Consumer attitudes towards the luxury fashion brand were generally more positive when the type of celebrity endorser was consistent with the brand’s positioning strategy, that is, when a naturally controversial celebrity endorses a brand with a reinforcement strategy and when an incidentally controversial celebrity endorses a brand with a revitalisation strategy. Furthermore, this effect was mediated by consumers’ appreciation of the celebrity-positioning match-up (i.e. the consistency between the celebrity’s persona and the brand’s strategy) but not by their perceptions of appropriateness (i.e. the traditional match-up hypothesis). Several implications suggested by these findings are developed.     

I love the product but will you? The role of interpersonal attachment styles in social projection

Individuals often have a need to predict the preferences of others (e.g., offering a recommendation, gift giving). In doing so, it is not uncommon that individuals project their attitudes and preferences onto others. Extant consumer research literature related to social projection focuses largely on particular situational variables that influence social projection. The current research adds to a smaller body of consumer research which focuses on specific characteristics of consumers’ selves that may drive an individual's tendency to project his/her attitudes onto others. Specifically, the present paper explores an individual‐level moderator of social projection, namely, interpersonal attachment style. Across five studies, interpersonal attachment style, and attachment anxiety, specifically, is shown to influence social projection. In addition, the mechanism underlying this relationship is demonstrated. The results show that high (vs. low) anxious attachment individuals tend to naturally consider more counter‐valence attributes of a product, that is., liked attributes of a disliked product and disliked attributes of a liked product, and this availability of counter‐valence attributes lowers social projection. Important theoretical and practical implications are discussed.     

How does the biophilic design of building projects impact consumers’ responses? – Case of retail stores

The study that biophilic store design (BSD) has a much higher perceived visual quality, increases the desire to patronize, increases willingness to spend retail stores shopping times is on the increase in the literature. The study of greenery in building environments has been vastly studied, however, the inclusion of greenery study in retail stores and its potentials to provide a strategic business advantage have been scarcely explored. This research work draws from the Attention Restoration Theory to unearth the impact of biophilic design attributes on consumer responses. Hence, this study asked: “How do attributes of biophilic design in retail stores impact consumers’ responses in retail stores”. A quantitative research method with an online questionnaire was employed; 177 participants were recruited. Multiple regression analysis was computed via SPSS and demonstrated that the four attributes (predictors) of biophilic design positively impact consumer responses. Findings for three attributes (biomorphic forms and patterns, material connection with nature, and complexity and order) were significant, while a visual connection with nature was not significant. These findings suggest that a biophilic design positively impact consumer responses; however, simply presenting or using natural elements is not sufficient to produce positive consumers' responses. Additionally, the t-test revealed that intent to purchase was significantly higher for a store low in biophilic attributes than the study hypotheses. The study's limitations and implications are discussed herein. This work contributes to the biophilic design paradigm of building projects by empirically demonstrating the restorative potential of lifestyle centers.     

Uncertainty and affluent teenagers’ luxury buying-decision: The role of avoidance-related indecisiveness

Global teen population constitutes a sizable market in the luxury brands industry. However, little is known about the mechanism through which teens form an attitude towards luxury brands, particularly in the context of emerging economies. Drawing insights from self-concept theory, self-discrepancy theory, and social consumption motivation, our study proposes a theoretical framework to explain how teenagers' self-related perception influence social consumption motives through avoidance-related indecisiveness, thereby determining teenagers' attitude towards luxury brands. Using a sample of 610 affluent private school students across five major cities of India, we empirically validate our theoretical framework through structural equation modelling. Our study contributes to the existing literature by demonstrating the impact of teenagers’ self-perception on the display of avoidance-related indecisiveness and resisting social consumption motives of luxury brand purchases.     

The density–satisfaction relationship revisited: The role of scarcity and consumers affective reactions in a crowded retail situation

This article examines how individuals react in crowded utilitarian settings and investigates the specific role of scarcity in the density–dissatisfaction relationship. This paper also highlights the mediating role of affective states (i.e. positive and negative) in determining consumers' satisfaction or dissatisfaction in these contexts. The results suggest that the scarcity of the situation can reduce the extent to which consumers perceive negative experiences in a dense retail situation. In addition, it supports the critical role played by affective states in mediating the relationship between density perceptions and negative reactions. The article provides potential explanations and managerial insights on how managers can deal with crowding in diverse retail and services situations.     

The role of social value creation in business model formulation at the bottom of the pyramid – Implications for MNEs?

This paper presents an exploratory study of how social value creation and business models may be interrelated in the context of the bottom of the pyramid (BOP) business formation. We develop our analysis around five case studies of actual businesses set up in rural India by people in the BOP. We attempt to draw implications from the performance of the business models in the BOP for what MNE strategies of engagement with the BOP may learn from the processes we analysed.     

How can I Be as attractive as a Fitness YouTuber in the era of COVID-19? The impact of digital attributes on flow experience,satisfaction, and behavioral intention

In the past decade, the social media platform has dramatically changed individuals’ daily activities in real life and on the Internet, including shopping, socialization, entertainment, study, and even health and fitness. In the era of COVID-19, particularly, consumers tend to rely more on digital attributes of social media platforms for their decision-making process by reducing the physical touchpoint. Responding to this ongoing trend, this study investigates how fitness YouTube channel attributes and fitness YouTuber attributes influence flow experience, satisfaction, and behavioral intention of YouTubers who work out at home via a fitness YouTube channel during the COVID-19 pandemic. Based on the social media literature and the cognitive appraisal theory, this research formulates a research model that specifies the influence of three dimensions of fitness YouTube channel attributes (i.e., social interaction, information quality, and visual content) and three dimensions of fitness YouTuber attributes (i.e., social attractiveness, physical attractiveness, and attitude homophily) on flow experience, YouTube channel satisfaction, and behavioral intention in the context of YouTube. This study recruited participants in the United States who currently work out via a fitness YouTube channel through three waves of data collection during the COVID-19 era. The empirical results revealed that flow experience was significantly affected by information quality, visual content, and physical attractiveness. Also, YouTube channel satisfaction was significantly affected by social interaction, information quality, and visual content. Lastly, behavioral intention was significantly affected by flow experience and YouTube channel satisfaction. Based on the findings, this study proposes meaningful implications for the extant literature and social media industry during the COVID-19 pandemic.     

Managing loyalty program communications in the digital era: Does culture matter?

This research addresses an important, yet under-researched, issue concerning the real-time management of loyalty programs (LPs) in the digital era: how to leverage culture-specific communications to motivate LP members to pursue and redeem program rewards. Two experimental studies in different LP contexts provide corroborating evidence that to-date (to-go) progress feedback is more effective in motivating consumers from individualist (collectivist) cultures to pursue LP rewards. Moreover, process evidence suggests that these culture-specific progress framing effects are driven by individual differences in regulatory focus and realized through perceived reward attainability. Overall, this paper contributes to the LP and goal pursuit literatures by verifying that communication framing is an effective means to strengthen reward pursuit motivation.     

Understanding the ‘retail revolution’ in urban China: a survey of retail formats in Beijing

Retailing in Chinese cities has experienced rapid changes in the reform era. One of the most visible changes in the urban retail landscape has been the emergence and growth of new retail formats. Using Beijing as a case study, this paper examines the evolution of retail formats in Chinese cities. The paper investigates the impacts of the changing external environment, especially the shift in government policies, on the structure of retail formats. It argues that to understand the rapid restructuring of retail formats in Chinese cities one needs to take into account the factors such as political, economic and social-cultural environment, and perhaps more importantly, regulatory changes. The consequences and implications of observed retail changes are discussed.     

How do customers engage in social media-based brand communities: The moderator role of the brand's country of origin?

Across the globe, companies increasingly use social media-based brand communities (SMBBC) to facilitate customer engagement (CE). This study clarifies the relationship between brand trust and CE in SMBBC, which is often inconsistent in previous literature. Drawing on the uses and gratifications theory, we examine the motivations that drive customers' active and passive engagement behaviors. Additionally, this study employs multi-group analysis to compare the differences in the customer engagement process concerning the brand's country of origin. The empirical results demonstrate that brand trust is an antecedent to customer engagement in a long-term relationship. Brand affiliation, entertainment, and investigation prompt customers' active and passive engagement behaviors; the opportunity-seeking only encourages the passive engagement, but the motivation of conversation prompts neither active nor passive behaviors of the customers. Notably, there is no significant difference in Chinese customer engagement between domestic and foreign brands on Sina Weibo. The research enriches the understanding of customer engagement in SMBBC and provides valuable insights for international brands keen on the Chinese market.     

The impact of retail out-of-stock options on preferences: The role of consumers’ desire for assimilation versus differentiation

This study tested the hypothesis that retail customers’ drive to assimilation or differentiation moderates the effect on their initial preference for a particular product of their discovery in the store of a previously unconsidered comparable alternative, which happens to be presently out of stock. The results revealed that new awareness of alternative options has an impact on customers’ preferences, even if they are unavailable when the choice is being made. Participants who were more concerned with differentiation exhibited a stronger preference for the option originally under consideration if they were told that the alternative was out of stock due to heavy demand rather than short supply. By comparison, those more concerned with assimilation had a weaker preference for the initial product when they learnt that its unavailability was said to be due to heavy demand, not supply shortfall. The article concludes with theoretical implications and areas for future research.     

Examining the role of store design on consumers’ cross-sectional perceptions of retail brand loyalty

This paper compares new and established store design prototypes of the same retailer to examine the role of consumers’ cross-sectional perceptions of retail brand loyalty. In-store surveys were administered to capture consumers’ store-level perceptions towards a new store prototype and an older established prototype of the same fast fashion retailer. The data was subjected to multi-group analyzes with structural equations modeling. The findings suggest that store novelty and complexity promote both store design pleasure and retail brand loyalty outcomes. The different store designs do not, however, account for differences in brand loyalty perceptions at the overall retailer level when multi-group comparisons of both store designs are made. Consumers of newer store designs are found to possess a heightened sensitivity to price perceptions. Managerial implications of the effects of store novelty and complexity on retail brand loyalty are also presented.     

The role of social network websites in the consumer–brand relationship

Building and leveraging the brand community on a social network website (SN) such as Facebook is one of the popular social media strategies that companies employ to build a consumer–brand relationship. This research empirically tests a theoretical argument that the perceived benefits of a brand׳s social network website (BSN) influence the consumer׳s relationship with the brand׳s SN, which in turn leads to loyalty behavior. After qualitative exploration of the community to understand the practice of BSN, a quantitative method was utilized to test the hypothesized relationships. The results provide general support for the positive effect of BSN benefits on outcome variables. Specifically, experiential and functional benefits of a brand׳s SN positively influence the consumer׳s perception of relationship investment made by the brand, resulting in both brand relationship quality and the willingness to spread good words about the brand׳s SN. In addition, experiential benefits of BSN positively influence BSN relationship quality, which in turn leads to brand relationship quality, while the effect of functional benefits on BSN relationship quality is not found. The findings provide practical managerial suggestions to marketers and theoretical implications for future studies.     

Do they matter? The role of non-academics in the internationalization of academic spin-offs

Internationalization and academic entrepreneurship have been receiving a lot of attention not only in academic research but also in policy practice. While academic spin-offs suffer from limited resources and lack of entrepreneurial skills, they often penetrate international market through their innovative products and technology since the very early years of their establishment. In the literature, little attention has been paid to explicitly examine the internationalization process of academic spin-offs as well as the role of non-academics. In order to investigate the impact of non-academics on the performance of spin-offs, we carried out an empirical analysis of 126 Spanish spin-offs which were divided into two market categories, international and domestic market. With regard to the percentage of non-academics in founding team, we found that their impact was more relevant to the performance goals than to innovativeness. On the other hand, the size of non-academic networks contributed significantly not only to the performance goals but also to innovation. However, we did not find a significant relationship between the strength of non-academic networks and the performance goals and innovativeness of the international spin-offs. Overall, we concluded that the role of non-academics was crucial for supporting the internationalization of the spin-offs.