How do you feel when you see a list of prices? the interplay among price dispersion,perceived risk and initial trust in Chinese C2C market

The issues of trust fraud, product genuineness and price dispersion jointly make Chinese C2C buyers difficult to identify trustworthy sellers with a low price. Little is known about the generation of initial trust when buyers search products and receive lists of widely ranged prices. This study proposes a theoretical model to explain how price dispersion interacts with other factors in C2C purchase, such as initial trust, perceived risk, perceived value and purchase intention. Product type is considered as a moderator. 261 students were invited in a survey-based experiment. The results from PLS analysis show that price dispersion negatively affects perceived value, whilst, positively affects perceived risk, which further influences perceived value negatively. Price dispersion also negatively influences initial trust through perceived risk. Moreover, the negative effects of price dispersion are stronger when buyers purchase high-touch products.     

The relationship between purchase regularity and propensity to accelerate

Identifying random and regular-buying household segments and relating them to demographic and shopping characteristics has been the focus of many marketing studies. Missing from the marketing literature, however, is a study that relates purchase regularity to marketing mix sensitivities. Such study could provide substantive implications since it would explore a practical dimension of a segmentation scheme based on purchase regularity. In this article, we investigate the relationship between purchase regularity and propensity to accelerate through the use of a mixture Weibull model of purchase timing. Applying this perspective to purchase timing data on four product categories (ketchup, sugar, bathroom tissue, margarine), we show that in the frequently purchased categories of bathroom tissue and margarine, random buyers do not exhibit any propensity to accelerate while regular buyers do. In the occasionally purchased categories of ketchup and sugar on the other hand, random buyers exhibit at least as much propensity to accelerate their purchases as regular buyers do. Our rationale for these results is based on information-theoretic arguments suggesting that propensity to accelerate depends on the frequency at which a product category is purchased.     

Benchmarking buyer behavior towards new brands

New brand launches are risky endeavors for marketers, as many fail to attract a sustainable customer base. This research examines the buying behavior of customers acquired by a new brand and revisits the theoretical norms of the NBD-Dirichlet model benchmarks. Investigating 40 new brand launches in the UK, across a wide range of brand and category conditions, we find that in the first 12 months, new launches have more, but less loyal buyers than expected from NBD-Dirichlet benchmarks, irrespective of type, price point, or the sales gained by the new launch. Further we find exploratory evidence that new buyers of brands have weaker associations than existing buyers. We propose that the combination of the new experience that lacks distinctiveness in encoding means that the experience of buying the new brand creates weaker memory traces in new buyers and that these buyers need additional marketing reinforcement to consolidate the memory of buying the brand to establish the brand in their ongoing repertoire.     

Risk-reduction strategies in competitive convenience retail: How brand confusion can impact choice among existing similar alternatives

Consumers tend to deliberate over their options by relying on risk reduction to facilitate the entire purchase journey. The present study was designed to be the first to investigate how brand confusion can impact consumers’ choice among existing similar alternatives with the use of risk-reduction strategies (i.e., decision postponement and inertia) in competitive convenience retail. The findings reflect two opposing strategies that consumers adapt to, that is, respond rationally or irrationally to brand confusion. Consequently, such a response either delays their purchase to search for additional external information or motivates them to depend on their behavioral inertia; whereas cognitive inertia completely relegates the decision-making process to the behavioral type. Taken together, the findings imply that rational decision-making could not function well to choose among existing similar alternatives. Accordingly, the study also provides some recommendations for marketers to reconnect cognitive inertia back to the process of decision making, and thereby encourage the acceptance of the new belief system.     

Mediated-moderated effects: High and low store image,brand awareness,perceived value from mini and supermarkets retail stores

This paper addresses how different store formats moderate the relationship between store image and purchase intention, mediated by brand awareness and perceived value. Questionnaire data was collected through face-to-face interviews with retail customers on the streets of a city in southern Brazil. Hypotheses testing were performed using the partial least squares structural equation modeling, supported by Smart-PLS and the Bootstrapping procedure run in the Process software. The model's sample included 298 retail customers for each store format (supermarket and mini-market). Results showed that store image positively impacted customer purchase intentions and the mediators, perceived value and brand awareness, which had a distinct effect on the direct relation of store image and purchase intention. Store format presented moderation effects on the relation between store image and brand awareness for both store formats: the higher the perception of store image, the greater the consumer's brand awareness. However, store format did not present a moderating effect on the relationship between brand awareness and purchase intention. Store image was found to be an important independent construct that improves brand awareness and increases perceived value. The number of mini-markets in Brazil is increasing, indicating that they are supplying a need unmet by supermarkets. The study design's implementation in the city streets, respondents were requested to imagine store image, which may have affected some of the parameters. The model integrated store image as an important construct influencing purchase behavior and this study presented a mediated-moderated model with managerial implications.     

Factors influencing generation Y’s purchase intentions of prototypical versus me-too brands

The current study examines self-confidence, perceived quality, extrinsic attributes and perceived risk as drivers and inhibitors of Generation Y’s purchase intentions of prototypical and me-too brands. A survey of 348 respondents demonstrated that self-confidence and perceived quality produced significant positive effects on purchase intentions for the me-too brands. Extrinsic attributes produced a significant positive effect on purchase intentions for the prototypical brand. Perceived financial/performance risk produced a significant negative effect on purchase intentions for both the prototypical and me-too brands, while perceived psychological risk produced a significant negative effect on purchase intentions for the prototypical brand. Understanding the factors underlying Gen Y’s consumer behaviour is crucial, particularly due to their considerable consumption potential and the increasing sophistication of brand marketing in the marketplace.     

Understanding the impact of store flyers on purchase behaviour: An empirical analysis in the context of Spanish households

The purpose of this paper is to analyse how Spanish consumers are really influenced by store flyers. The present study examines decisions of households regarding: (i) incidence (using a binary logit model); (ii) brand choice (using a multinomial logit model); and (iii) quantity (using a Poisson model). The models described above are applied to scanner choice datasets of the purchases made by Spanish households in two product categories (olive oil and coffee) over 53 weeks. The study finds that the main effect of such flyers is brand switching, rather than acceleration or stockpiling. However, consumers are not homogeneous in these responses to store flyers. Price sensitivity is found to be a more important driver of flyer-proneness than brand loyalty; moreover, the study finds a strong relationship between price-sensitive, flyer-prone consumers and decisions on incidence, choice, and purchase quantities. In contrast, the influence of the presence of brands in store flyers on incidence of purchases is not more prevalent among brand-loyal consumers than among non-brand-loyal consumer; however, such flyers are able to induce loyal users to stock up on their preferred brand. The managerial implications underline that manufacturers and retailers should be aware that the inclusion of a brand in store flyers (without necessarily offering a price discount) can simultaneously cut promotional costs and increase sales profits. In addition, managers should use other types of promotions (such as in-store displays) to encourage consumers to stock up on the brand.     

Constructing a conceptual model of purchase behaviour of village shopkeepers – a study of small rural retailers in Eastern India

Small rural retailers play a pivotal role in the success of marketing efforts of FMCG companies in developing markets. This is owing to the influence of small retailers, alternatively termed as unorganized retailers, on rural consumers. The present study attempts to develop an inventory of items that may predict purchase behaviour. Owing to the unavailability of a suitable instrument in extant literature, a survey of rural marketing practitioners has been conducted to develop relevant statements for questionnaire. The unobservable constructs and the relationships between the constructs are brought out through a study in the eastern region of India. The following constructs have been found to impact the purchase preferences of rural unorganized retailers: quality of supply and delivery, margins and profit, product demand, credit, brand reputation, social and personal recognition, sales force behaviour, seasonality and festivity, and company reputation. A marketer should understand the factors influencing purchase behaviour while targeting rural retailers in developing markets.     

The covariates of regularity in purchase timing

An examination of the timing of consumers' purchases for coffee reveals that consumers vary a great deal in terms of the regularity of their purchasing behavior. Some consumers make purchases at seemingly random time intervals, while others purchase at highly regular intervals. The measurement of regularity in purchase timing, as well as the identification of its covariates, is important in many contexts such as modeling purchase incidence and sales forecasting. We measure the degree of regularity among a sample of coffee purchasers and identify several consumer characteristics that vary with the degree of regularity in purchase timing. Results show that regularity in purchase timing is related to brand loyalty, store loyalty and deal proneness, as well as to certain pattern of routinization by the households, and that regularity may be used, along with other aspects of purchase behavior, to provide a basis for market segmentation.The authors wish to acknowledge the support of Information Resources Inc. for providing the data, and are grateful to Professor Jane T. Landwehr, University of Delaware, for her help.     

Cigarette brand loyalty and purchase patterns: An examination using US consumer panel data

This study analyzes data on cigarette purchasing using an extensive panel dataset. Major findings are: (1) cigarette purchasing in this market exhibits a reverse-J, or NBD (Negative Binomial Distribution)-like shape: many infrequent buyers and fewer frequent buyers; (2) Cigarette brands do exhibit high loyalty compared to other consumer categories, and show a trend to higher brand loyalty over time coinciding with fewer price promotions; (3) The data shows a weak double jeopardy pattern of smaller brands enjoying somewhat lower loyalty; (4) Smokers of a given brand are on average more likely to purchase another large cigarette brand than another small brand; (5) A straightforward analysis method identifies occurrences of excessive cross-brand cannibalization in the portfolio of one of the major tobacco corporations; and (6) Certain brands enjoy particular appeal among specific demographic groups. The study sheds more light on consumer behavior towards a product with addictive qualities and known harmful effects.     

Would you bring home ugly produce? Motivators and demotivators for ugly food consumption

It is important to reduce food waste by successfully promoting ugly food consumption. Thus, this study uses the food quality attribute model to investigate certain key factors - motivators and demotivators that can influence consumers’ attitudes toward and subsequent purchases of ugly produce. This study further examines differences in these key factors between ugly food buyers and non-buyers. The results indicate that price consciousness and environmental self-identity stimulate ugly food consumption, but physical appearance discourages its purchase. The influences of the motivators are more salient for buyers, while the influences of the demotivators are more salient for non-buyers.     

The (Dis)Advantage of Friendship on Information Search and Satisfaction

Across four experiments, and focusing on consumer behaviour in a high uncertainty market (i.e., a used car market), this research shows that prior to a purchase, buyers are less motivated to search for information when they purchase a product from a friend (compared to someone they do not know). We also show that buyers are more willing to search for information after a transaction when sellers are their friends, a reversal in search behaviour due to the greater social risk that buyers bear when dealing with a friend. Finally, this research shows that both the transaction outcome (i.e., positive versus negative) and the buyer–seller relationship determine the degree to which people are satisfied or dissatisfied with a seller. Copyright © 2018 ASAC. Published by John Wiley & Sons, Ltd.     

Key influencing factors of green vegetable consumption in Beijing,China

Green-certified vegetables are nutritious, attractive to the senses, and in line with the principles of sustainable development. The objectives of this study are to reveal the mechanism of green-certified vegetable consumption; that is, to explore the key influencing factors behind consumers' purchase intentions, purchase behavior, and willingness to pay for green-certified vegetables. Based on the Theory of Multi-attribute Attitudes and the Theory of Planned Behavior, a research framework of the consumption mechanism oriented to consumers' preferences regarding green-certified vegetable quality was established. By collecting 520 questionnaires from Beijing, China, the model was confirmed by the ordered logistic regression and interval linear regression method. The results showed that consumers have heterogeneous quality preferences, and their purchase intentions and purchase behavior levels are relatively high, with an average willingness to pay (WTP) of 138.58%. The key influencing factors driving consumers' purchase intentions, purchase behavior, and WTP include protein content belief, mineral content belief, vitamin content belief, organic vegetable safety belief, freshness belief, and taste belief. In addition, color belief and packaging quality belief significantly influenced consumers' WTP, while origin reputation belief and brand reputation belief significantly influenced consumers' purchase intention and purchase behavior. The findings of this study can guide the supply side of green-certified vegetables to improve product quality according to consumer demand, so as to promote the sustainable development of green-certified vegetables.     

Optimal image mix cues and their impacts on consumers’ purchase intention

This study strives to find the different possible combinations of three relevant image cues (i.e., country-of-origin image, corporate image, and brand image) which optimally predict the purchase intention of a foreign-made product. A sample of 314 Canadian participants was used to assess their image perceptions and purchase intention of a Chinese product. Data were analysed using the fuzzy-set qualitative comparative analysis (fsQCA). The results reveal that there are two configurations. The first one represents consumers whose purchase intention is shaped by the country-of-origin-image, the corporate image, but excluding the brand image. The second configuration combines the country-of-origin image and the brand image, but excludes the corporate image. Because the country-of-origin image continues to play an important role in influencing consumers' behavioural intention, international marketers need to meticulously assess consumers’ perceptions of countries from which the product originates. Also, companies should consider the hybrid approach with respect to their branding strategy. Accordingly, they can consider a branded house strategy in some cases, while considering a house of brands strategy in other cases. This study contributes to the literature by attempting to close the debate on the relationships among the three image cues (i.e., which variable is the precursor of the other), but opens new perspectives for marketing scholars and invites them to delve into the topic by investigating the possible combinations of different marketing information cues (e.g., image cues) that may lead to an optimal outcome for the consumer and the firm.     

The Case for Compatibility: Product Attitudes and Purchase Intentions for Upper versus Lowercase Brand Names

Although retailers know that brand names are important conveyors of product benefits, little is known about how subtle characteristics of brand names affect consumer attitudes and purchase intentions. This research proposes and shows that the letter case of brand names affects product attitudes and purchase intentions but that these effects depend on congruity between brand case and the gender of consumption benefits. Studies 1 and 2 show that lowercase brand names are associated with feminine characteristics while uppercase brand names are associated with masculine characteristics, as measured through judgments of name gender, gendered brand personality traits, and overall brand gender perceptions. Three additional studies demonstrate that greater congruity between brand case and the gender of consumption benefits increases product evaluations and purchase intentions. Study 3 demonstrates that greater congruity between brand case and the gender of a female consumer’s consumption goal leads her to have more favorable product attitudes. Study 4 replicates these effects by manipulating the gender of product benefits, shows that effects on purchase intentions are moderated by the consumer’s biological sex, and identifies processing fluency as the underlying mechanism. Study 5 demonstrates that brand case, rather than letter shape, drives these results. This work advances understanding of how seemingly subtle brand name characteristics affect gender perceptions and consumer behavior, with implications for brand design and positioning in the retailing industry.     

Private labels versus national brands: The effects of branding on sensory perceptions and purchase intentions

Consumers increasingly consider private labels to be as good as national brands. This research raises the question of whether national brands and private labels equally affect consumers’ sensory perceptions and purchase intentions. The results of two studies show that consumers reverse their evaluation of private labels (vs. national brands) when tasting the product in an informed (vs. blind) condition. When consumers are not aware of brand names, they indicate better taste and higher purchase intentions for private labels. However, the opposite is true when they try products in an informed condition. We discuss the implications for private labels and national brands.     

Exploring the core factors of online purchase decisions by building an E-Commerce network evolution model

With the continuous development of the Internet and information technology, online shopping has become a popular purchase mode. The in-depth analysis of consumer decision-making in online shopping is an important issue. Our purpose is to study how the factors of the shopping web pages corporately affect online purchase decisions and determine which are the core factors that affect consumer purchase decisions. We screen the influencing factors on the shopping webpage and deploy e-commerce network evolution based on various weight combinations of these factors to generate sales distributions of online products. By comparing these simulated sales distributions to the real data, the optimal weight of each factor is obtained. The results show that sales volume and the number of high-quality negative comments are the most important factors influencing consumers' decision-making, the number of comments and the number of comments with pictures are relatively minor factors, store type and video presentation of the products have the least impact. The optimal simulated sales distribution is very close to the real case and verifies that the introduced network evolution technology is applicable. The proposed model can be used as a uniform evaluation platform for correlational study, which is an important link in the purchase research chain.     

Generalizations regarding the growth and decline of manufacturer and store brands

Stimulating growth or staving off decline in market share are core objectives for brand managers, including retailers who now offer store brands (SBs). This study identifies how changes in brand penetration and repeat-purchase loyalty accompany changes in brand share. We examine 1093 changes in brand share over 63 packaged goods categories in the UK from 2003 to 2007, covering both growth and decline. Two measures of repeat purchase loyalty are used—annual purchase frequency (PF) and share of category requirements (SCR). Our results show that brand share growth is accompanied by greater change in penetration than in loyalty, at a ratio of approximately 3:1. This finding generalizes across brand type, loyalty measure, retailer SB or manufacturer brand (MB), category purchase frequency, category type, and initial brand share. However, while brand share growth is accompanied by stronger changes in SCR than PF for MBs; the reverse is the case for SBs. For MB decline, both penetration and SCR change are significant correlates. However for SBs, the decline in brand share happens predominantly in loyalty—more strongly in SCR, followed by PF. Therefore, both brand types need to focus on building penetration to grow. While MBs also need to prevent light buyers from lapsing, SBs need to pay more attention to retaining heavy buyers to avoid repertoire demotion.     

Estimating the effects of higher coupon face values on the timing of redemptions,the mix of coupon redeemers,and purchase quantity

One of the key decisions a manager must make in designing a coupon promotion is to decide on the face value. In this study we examine the effects of higher face values on coupon redemption timing, category purchase timing, the mix of buyers who redeem the coupon, and purchase quantity. Data from a field experiment on coupon face values are used to test the hypotheses. A new method of measuring the effects of a coupon on category purchase timing is proposed. We find that coupons per se tend to advance category purchase timing, but higher face values do not increase the magnitude of this effect. Surprisingly, higher face values appear to increase redemption rates for both the prior nonbuyers and prior buyers of the brand in a similar way. However, higher face values have little effect on the package size purchased, the number of units purchased, or the total quantity (package size times units) purchased.     

Regular Price $299; Pre-order Price $199: Price Promotion for a Pre-ordered Product and the Moderating Role of Temporal Orientation

Retailers typically use the strategy of providing a discount to induce the sale of a new product at a pre-order stage. Despite the prevalence of this strategy, providing discounts might not be effective for all consumers. The present research shows that the positive effect of a discount depends on consumer temporal orientation. Results from four experimental studies reveal that a large discount positively affects present-oriented, but not future-oriented, consumers. The findings suggest that perceived financial risk and perceived product quality sequentially mediate the effect of discount size on value toward the deal and purchase intention. A third-party product quality rating boosts quality perceptions, which in turn reduces perceived financial risk and positively enhances value toward the deal along with purchase intention. Our findings demonstrate that when the brand itself acts as a reliable signal of quality, a discount has its intended effect for both present- and future-oriented consumers. Overall, the findings of this research suggest that a retailer can use quality cues along with a discount, especially for a new brand, to appeal to the broadest group, as it will attract both future- and present-oriented consumers.