A study on promotion with strategic two-stage customized bundling

In order to enhance both purchase willingness and consumer satisfaction, firms may sell products in a customized bundling way, with which consumers are allowed to select their preferred products to form a bundle. However, such a way needs to be carried out with an efficient strategic tool. This study contributes to the literature by proposing a two-stage customized bundling strategy with the aims of maximizing the firm's profit and satisfying the consumers' demands. The proposed strategy may assist managers in enhancing consumer satisfaction and loyalty under consideration of consumer heterogeneity. Consumers can select one main product with the greatest utility from the main product category at the first stage, and then, at the second, consider the associations between the chosen main and possible add-on products in the add-on product category, and finally select an add-on product to form a customized bundle with the greatest overall utility. Pricing strategies are investigated and compared for the customized and other traditional bundling strategies. The results show that when consumers are highly sensitive in their preferences, the use of a customized bundling strategy would be more profitable. However, in an extreme case when the consumer's perceived value of the add-on product and product association are both high, the traditional individual sales strategy would earn more profits than the customized bundling strategy.     

Service bundling and strategic equilibrium in the information services industry

The information service industry is characterized by successive levels of access; e.g., network service and data base service. Within this structure firms may have incentives to bundle services and exclude independent service providers from media access. This multilevel structure is incorporated into mathematical models that can be used to characterize interactions between unregulated firms in a variety of industries, including switched network services, software, and television.Incentives for vertical merger between complementary service providers are evaluated for several cases. We show that cross subsidy occurs under vertical merger, and that the likelihood of merger is greatest when one of the firms can unilaterally exclude other complementary firms from media access. In this case the access controlling firm is in a position to enforce bundled pricing and limit the availability of independently supplied services. This ability to bundle services leads to cross subsidy and merger, even in the absence of economies of scale or scope.     

How consumers form product quality perceptions in absence of fixed posted prices: Interaction of product cues with seller reputation and third-party reviews

The uncertainty about product quality has increased in online settings, and consumers' often use multiple product cues to assess product quality. The authors have tested the simultaneous effects of multiple product cues in Pay-what-you-want (PWYW) online settings. PWYW lacks posted prices and allows buyers to decide the prices. This paper investigates how consumers process multiple cues of varying diagnostic nature simultaneously and form product quality perceptions. Specifically, study 1 examines the interactions among seller reputation, online product presentation, and external reference price and study 2 examines the interaction effect of third-party reviews and online product presentation and the external reference price. The results add to the theoretical domain by suggesting that consumers' online cue processing behaviour is much more complicated than previously presented in the literature.     

Identity salience and shifts in product preferences of Hispanic consumers: Cultural relevance of product attributes as a moderator

Culturally relevant products, services, and communications play a crucial role in the success of ethnic targeted marketing. Employing a bi-dimensional approach, two studies examine how cultural relevance of product attributes interacts with acculturation level, and situational and contextual factors to affect product attribute evaluations (PAE) of Hispanic consumers. Across both studies, cultural relevance had main effects on PAE. In Study 1, cultural relevance interacted with cultural situations to affect PAE. Hispanic consumers evaluated Hispanic (or Mainstream) relevant product attributes more favorably when exposed to a Hispanic (or Mainstream) cultural situation. In Study 2, cultural relevance interacted independently with cultural primes and acculturation level to significantly affect PAE. PAE shifted as a result of cultural primes and moved toward being typical to the activated cultural identity. Results are discussed in the context of consumer acculturation, social identity-based consumption, biculturalism, and cultural frame shifting.     

Bringing product and consumer ecosystems to the strategic forefront

The widespread adoption of technology and electronic media has dramatically altered the set of products consumers compare before making a purchase decision. Online platforms have succeeded at drawing linkages among products by highlighting those that are preferred, evaluated, or purchased together. However, despite the increase in both product and customer inter-connectedness across markets, managers continue to make decisions based largely on the dynamics of competition within narrow product categories. In this article, we raise the call for a migration from a category-focused mindset to an ecosystem-focused strategic mindset that acknowledges and accounts for the network of related or unrelated entities that a specific product resides within. We illustrate the importance of this shift using examples of preference, choice, and customer networks from popular online platforms. We then discuss the impact of the shift in strategic mindset toward ecosystems on competitive structure analysis, market research, brand footprint analysis, intra-band ecosystems, promotion planning, new product development, customer valuation, strategic alliances, and market segmentation.     

Consumer ethnocentrism,product necessity and quality perceptions of Russian consumers

Retail buyers in Russia have indicated that some customers have expressed a desire to purchase domestically produced products over imports. Consumer ethnocentrism has been proposed as a measure to provide retail buyers with the information necessary to market to these consumers. The purpose of this research is to determine if perceived product quality of products differs based on country of origin, product necessity and consumer ethnocentric tendency. A repeated measures ANOVA test indicates that perceived quality differs by necessity, by product, by country. A consumer ethnocentrism effect on the overall model, however, was not significant. We conclude that Russian consumers do perceive differences in product quality based on country of origin and product necessity, but that consumer ethnocentrism does not have an effect on perceived product quality.     

Inclusive apparel shopping experiences for older consumers in China: product attributes and retail environment

ABSTRACT

The study explored apparel shopping experiences of older Chinese consumers, which integrate apparel product and retail environment aspects from an inclusive strategy perspective. Research questions include: What factors contribute to older Chinese consumers’ satisfaction and dissatisfaction? What are the major implications of older consumers’ (dis)satisfying shopping experience? What role can fashion practitioners play to make the retail environment and apparel products more accessible to the aging segment? Critical Incident techniques were used for data collection at a community park in Beijing. A total of 151 usable critical incidents from 84 older Chinese informants (55 years and older) were included in the data analysis. Content analysis with deductive qualitative data analysis method was used. Findings suggest that the older Chinese consumers assess their shopping experiences largely based on shopping outcome achieved (product purchased). This is in contrast to the movement toward more experiential focus in the developed markets in the recent decades. A significant number of tangible product attributes (including design/styling, comfortability/fit, and material) and intangible attributes (such as price and product assortment) contributed to the older Chinese informants’ satisfying or dissatisfying shopping experience. Aspects related to retail environment, including retail atmospherics and service quality were also important, but to a lesser extent than product attributes. This study represents an early attempt to explore how the tangible and intangible aspects of product attributes and retail environment contribute to the aging Chinese consumer’s shopping experience. Findings of the Chinese older consumers’ utilitarian, rather than experiential focus in their shopping experience evaluation provide insights on this market segment and valuable implications are developed.     

Religiosity and consumers' use of product information source among Korean consumers: an exploratory research

In response to the lack of research on the impact of religion on consumer behaviour, this study investigates how consumers' use of various product information sources can differ depending on their levels of religiosity (high, low and none). Data were collected from Korean consumers in Korea. The findings from data analyses indicate that the usages of product information sources among Korean consumers generally vary based upon their levels of religiosity. Limitations and suggestions for future research to further understand the effects of religiosity on consumer behaviour were addressed.     

Consumer reactions to food and drug product recalls: A case study of Hawaiian consumers

A telephone survey of 350 consumers found that one-third to one-half used the recalled food and drug products, and the balance threw them away or returned them to the store. A significant percentage, 16–33%, said they now buy less of these products, and 11–32% stated that they switched brands due to these recalls.

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Verbraucherreaktionen auf Rückrufaktionen bei Lebens- und Arzneimitteln: eine Fallstudie bei Verbrauchern in Hawaii

Zusammenfassung Während die bisherige Forschung die Folgen von Rückrufaktionen vorwiegend im Automobilsektor untersucht hat, geht die vorliegende Studie den Verbraucherreaktionen bei Lebensmitteln und Arzneimitteln nach. Sie wurde 1983 auf Insel Oahu durchgeführt und bezog sich auf einen Zeitraum von einem Jahr. Während dieser Zeit hatte es 13 Rückrufaktionen gegeben. Befragt wurde eine Stichprobe von 350 Konsumenten, die alle mindestens ein Jahr auf Oahu gelebt hatten und in ihrem Haushalt für den Einkauf von Lebensmitteln zuständig waren. Die Interviews wurden telefonisch durchgeführt. Die Ergebnisse variieren von Produkt zu Produkt, zeigen aber im wesentlichen, daß ein Drittel bis die Hälfte der Konsumenten ein zurückgerufenes Produkt weiterverwendeten, wogegen die anderen das Produkt wegwarfen oder zum Händler zurückbrachten. Ein Prozentsatz von 16 bis 33% gab an, von den zurückgerufenen Produkten jetzt weniger zu kaufen und zu verwenden, und 11 bis 32% berichteten, wegen der Rückrufaktionen die Marke gewechselt zu haben.

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Charles F. Keown is Associate Professor of Marketing at the University of Hawaii's College of Business Administration, 2404 Maile Way, Honolulu, HI 96822, USA.     

The effectiveness of strategic planning: competitiveness in the Brazilian supermarket sector

This paper considers the relative impact of management strategic planning practices and economic changes on company performance. The paper focuses on the Brazilian supermarket sector during the period 1988–1999. This was a period marked by significant changes in economic and competitive conditions. Using sales figures as indicators of company performance, ANOVA tests were applied. The results derived suggest that variables representing changes in economic conditions and strategic planning were both statistically significant when they were used to explain performance differences among Brazilian supermarket operations. Differences in company management practices were found to play a more important role than changes in the environment. However, the results clearly suggest that management by itself was unable to take advantage of the upward and downward movements in the economy to modify the relative competitive positions of companies operating within the market. This finding challenges the existing literature on strategic planning.     

Stakeholder involvement in strategic HRD aligning: the impact on HRD effectiveness

The study reported here focusses on the question to what extent stakeholder involvement in HRD policymaking (here referred to as strategic HRD aligning) predicts effective HRD programmes. The study involved 44 large companies in the industrial, financial and commercial services sectors. The findings indicate that involvement of stakeholders in the strategic HRD aligning process, and their opinions on the quality of this aligning process in particular, have a positive effect on perceived HRD effectiveness. The perceived effectiveness is even more positive when the mean company score on the quality of strategic aligning is higher.     

Adoption of augmented reality in online retailing and consumers’ product attitude: A cognitive perspective

With the application of augmented reality (AR) technology by online retailers to improve online services, the impact of AR adoption on consumer behavior has attracted attention both in academic and in practical circles. Based on the cognitive perspective of information processing and from the two aspects of cognitive load and cognitive fluency, this study discusses the influence of AR adoption on online consumers' product attitudes. The results of the experimental study show that two AR characteristics—environmental embedding and simulated physical control—can reduce consumers’ cognitive load, enhance their cognitive fluency, and improve their product attitude. Furthermore, product type can moderate the influence of AR environmental embedding and simulated physical control on cognitive fluency.     

Linking strategic HRM,performance management and organizational effectiveness: perceptions of managers in Singapore

Strategic human resource management (SHRM) theory is predicated on the assumption that effective human resource management (HRM) processes have the capacity to contribute significantly to organizational effectiveness, expressed in terms of productivity, flexibility, effectiveness, efficiency, return on investment, competitiveness, and ultimately, profitability. Earlier research studies have explored the overall value-adding potential of HRM processes as a whole. Few have focused on the links between strategic HRM, performance management systems and organizational effectiveness, and even fewer have examined these relationships in Southeast Asia. This paper addresses this gap in the literature by examining the perceptions of a split sample of senior managers in Singapore. It reveals an interesting gap between their rhetoric and the realities of their performance management systems, and suggests future research directions.     

Toward a contingency view of new product creativity: Assessing the interactive effects of consumers

Although creativity is widely recognized as a critical element for firms to develop new products, knowledge about how consumers evaluate product creativity remains far from definitive. The authors analyze how the relevance of novelty and appropriateness—two main elements of creativity—varies according to the characteristics of the consumer. A sample of 283 consumers indicates a negative interaction effect between novelty and appropriateness, suggesting that creativity depends on either, according to contingencies. Novelty is more relevant when consumers are highly involved or have little knowledge of the product. Appropriateness is more relevant when consumers are minimally involved or have significant knowledge. Theoretical and managerial implications are provided.     

The influence of thematic product displays on consumers: An elaboration‐based account

Marketers commonly adopt a theme to unify their design of an environment in which their products are displayed. A thematic display environment can be congruent with or unrelated to the concept of a product on display. The elaboration likelihood model and the knowledge activation literature suggest that conceptual congruence between the thematic display context and the product could affect product evaluation by a cue‐based mechanism and an elaboration‐based mechanism. First, the positive feeling associated with conceptual congruence serves as a peripheral cue, making product evaluation favorable. Second, the congruence provokes thoughts about the product's attributes, and these attribute‐related thoughts affect product evaluation. Whether the evaluation is dominated by the affective cue or attribute thoughts depends on the consumer's shopping motivation (planned purchase vs. browsing), because the motivation affects the consumer's elaboration likelihood. The results of three experiments support these propositions. The results indicated that under planned purchase motivation, the congruence effect on purchase intention through attribute‐related thoughts was observed. In contrast, under browsing, the congruence effect on purchase intention was dominated by a direct positive effect that reflected the influence of the affective cue. Implications of the findings for visual merchandising are discussed.     

Centrality of visual product aesthetics,tactile and uniqueness needs of fashion consumers

The purposes of this study were to determine whether fashion consumer groups (fashion followers, fashion innovators, fashion opinion leaders and innovative communicators) differ in centrality of visual product aesthetics, consumers' need for uniqueness and need for touch, and to examine possible correlations among these variables. Fashion design and merchandizing students completed the following scales: Need for Touch, Consumers' Need for Uniqueness, Centrality of Visual Product Aesthetics, Measure of Fashion Innovativeness and Opinion Leadership plus demographic information. Innovative communicators had a greater need for uniqueness than followers and opinion leaders, but not than innovators. Fashion followers scored lower on Centrality of Visual Product Aesthetics than did innovative communicators, innovators and opinion leaders. There was no difference in Need for Touch among fashion consumer groups. Scores on Need for Touch were positively correlated with scores on Centrality of Visual Product Aesthetics and Consumers' Need for Uniqueness. Scores on Centrality of Visual Product Aesthetics were positively correlated with scores on Consumers' Need for Uniqueness. Scores on Fashion Innovativeness and Opinion Leadership were positively correlated with scores on Centrality of Visual Product Aesthetics and Consumers' Need for Uniqueness. Scores on Fashion Innovativeness and Opinion Leadership were not significantly correlated with those on Need for Touch. Fashion consumer groups did differ in centrality of visual product aesthetics and need for uniqueness, but not in need for touch.     

Improving relationships between sales and marketing: the relative effectiveness of cross-functional coordination mechanisms

ABSTRACT

The importance of effective sales and marketing working relationships is well known and this article examines the effectiveness of various coordination mechanisms used to improve this cross-functional relationship. Six coordination mechanisms are measured to identify their effect on sales and marketing conflict and collaboration, which in turn influence business performance. The results reveal that not all coordination mechanisms are equally effective. Structuring sales and marketing as a single unit and creating cross-functional project teams improve the interface, as do providing opportunities for job rotation and establishing cross-functional meetings. However, employing cross-functional training and co-locating sales and marketing do not influence this working relationship. Finally, reducing conflict and increasing collaboration between sales and marketing is shown to independently, and positively, influence business performance.