Consumer habit forming,information acquisition,and buying behavior

Based on the three stages of consumer decision making proposed by Howard, this study analyzes the influences of consumer habit formation on information acquisition, stored information, and buying behavior. Using a sample of women having or expecting their first child, their habit formation with regard to three baby-related products is assessed. The data confirm most of the hypotheses derived from the theoretical model. Implications for marketing are discussed.     

Far from Eye,Far from Heart: Analysis of Graphical Decision Aids in Electronic Negotiation Support

Information is probably the most relevant element upon which decision makers base their judgments. Empirical evidence has demonstrated that the way information is presented inevitably influences human cognition and, consequently, the (electronically supported) decision making process. Presently, we lack an analytical approach of studying graphical decision aids implemented in electronic negotiation support systems (NSS). Therefore, the aim of this paper is to identify relevant factors for graphical decision aids in NSS, which provides negotiators with an analytical support approach. Secondly, based on a developed framework, we intend to categorize and analyze existing and newly developed graphical decision aids. Last, we develop research propositions showing avenues for future investigations in the field of graphical decision aids.     

Investigating Socialization,Work-Related Norms,and the Ethical Perceptions of Marketing Practitioners

This study examines the influence of socialization on work-related norms (WORKNORM). We tested the hypothesis that organizational (ORGSOC) and professional socialization (PROFSOC) are antecedent influences on WORKNORM, employing a sample of 339 marketing practitioners. The results of covariance structural analysis indicate that ORGSOC and PROFSOC and WORKNORM are discriminant constructs within the tested model. The study also reveals that the influence of ORGSOC on WORKNORM is stronger than the influence of PROFSOC on these same norms. Because this social learning occurs in work-related activities, in organizations, and in professional life, it is important that managers appreciate that these three separate domains influence decision making under ethical conditions. The limitations of the study and future research directions are discussed.     

Biased and overconfident,unbiased but going for it: How framing and anchoring affect the decision to start a new venture

Cognitive heuristics, biases, and overconfidence have been suggested as an explanation for entrepreneurial entry. Nevertheless, empirical research on the subject has produced mixed findings and has under-explored the cognitive mechanisms leading to overconfidence in entrepreneurial settings. In two within-subject experiments, we focus on three cognitive heuristics—reference point framing, outcome salience framing, and anchoring in conjunctive events—and examine their effects on perceived risk, confidence, required and estimated probabilities of success, and the decision to start a new venture. Our findings show that reference point framing and outcome salience framing affect the decision to enter directly and indirectly via risk perception, but do not affect confidence. In addition, the effect of anchoring is contingent on the congruence between its semantic and its numeric influences. Overconfidence only obtains when the numeric and semantic influences of anchoring are aligned and aimed at enhancing the salience of potential positive outcomes, i.e., through high probabilities of success.     

Consumer inventory sensitivity and the postpromotion dip

We summarize and critique seven theories that might explain the lack of a postpromotion dip in sales in the weeks following a promotion. We then propose and provide empirical support for a new explanation. We argue that in markets where the consumer category purchase decision is not strongly influenced by inventory levels, the displacement effect of accelerated sales will tend to be distributed fairly uniformly into the future such that clearly defined dips are not observed. We utilize a simulation based on real data to investigate this explanation. The simulation shows that given the degree to which inventory influences the purchase decision, we would not expect to see postpromotion dips, even though promotion influences the purchase decision. However, the simulation shows that if inventory had a greater influence on the purchase decision, we would expect to see postpromotion dips. We conclude with implications for both researchers and managers.     

An empirical investigation into international entry mode decision-making effectiveness

This study examines the effect of decision rationality and hierarchical centralization on international entry mode decision-making effectiveness (DME). The role of environmental uncertainty is additionally explored as a moderating variable in this investigation. Drawing from the strategic decision-making process perspective, this research is seemingly the first to include behavioral processes in explaining how effective the decision associated with adopting an international entry mode is. Based on a study of 233 internationalized Chinese private firms, the evidence suggests that decision rationality positively influences DME, while hierarchical centralization negatively affects DME. The moderating effects of environmental uncertainty are negative for both decision rationality and hierarchical centralization.     

Goodwill,going concern,stocks and flows: A prescription for moral analysis

This paper projects the decision making dilemma faced by managers when assessing moral consequences associated with planning proposals. A case is made for viewing the results of moral behavior as a capital asset. Accepting the idea that moral business behavior proportionally influences the firm's goodwill value, the author advances the recommendation that current U.S. accounting practices become involved with determining the moral wellness of the firm. The suggestion is made that stocks and flows are useful concepts in the development of a financial information system that incorporates benefits associated with morally accepted behavior. As a necessary part of the going concern operational strategy, a case is made for the preservation and advancement of the firm's moral capital. Overall, the intent of this paper is to offer a proposal which links moral behavior with financial decision making.     

The distinct effects of gratitude and pride on donation choice and amount

Consumer donation behavior includes the decision to donate and the amount donated. However, most previous work in this area implies that findings apply to both dimensions of the donation decision. The current research adopts an evolutionary psychology perspective to examine the role of two positive emotions – pride and gratitude – on the decision to donate and how much is donated. Two experimental studies demonstrate that pride positively influences the decision to donate when the donation is recognized; however, pride does not influence the amount that is donated. In contrast, gratitude positively influences the decision to donate and the amount donated via an affiliation motive, regardless whether the donation is recognized. This research contributes to the literature of prosocial behavior in the form of donating, by clarifying the role of positive emotions on each dimension of donation behavior.     

The influence of past behavior on behavioral intent: An information‐processing explanation

Despite considerable research on the impact of past behavior on decision making over the past two decades, little is yet known about how past experience moderates decision theoretic factors within models of behavioral intent. This research explores the implications of past behavior within the theory of planned behavior (TPB), and how it influences key decision‐making variables. A theoretical model of how past behavior can induce deliberative versus heuristic processing of information is developed and tested. Consumer implications of the impact of past behavior on behavioral intentions are discussed, highlighting the importance of addressing one's experience when making a decision. © 2008 Wiley Periodicals, Inc.     

Initiating Negotiations: The Role of Machiavellianism, Risk Propensity, and Bargaining Power

Initiation is an often-overlooked yet essential stage of the negotiation process. This study examined the effects of two measures of personality—Machiavellianism and risk propensity—and relative bargaining power (as based on multiple situational factors) on three phases of the initiation process—engaging a counterpart, making a request, and optimizing the request. Using a multi-scenario approach, one hundred fifteen participants indicated their initiation preferences for three distinct negotiations. The results of repeated measures ANOVAs indicate that bargaining power influences an individual’s decision to initiate negotiations. In addition, those high in Machiavellianism choose to initiate negotiations even when relative bargaining power is low, whereas those high in risk propensity tend to optimize their requests. The implications of these findings for practitioners and future research are discussed.     

The Influence of Corporate Culture on Managerial Ethical Judgments

The contention that organizational culture influences ethical decision making is not disputable. However, the extent to which it influences ethical decision making in the workplace is a topic for scholarly debate and investigation. There are scholars who argue that, though corporate values are a powerful force in explaining the behavior of individuals and groups within organizations, these values are unperceived, unspoken, and taken for granted. However, there are others who argue that the formalization of corporate values facilitates job and role clarity and is the key to influencing employee behavior. The purpose of this study is to examine the extent of the influence of organizational codes of ethics. The findings suggest that, depending upon the particular situation, corporate culture and ethics may mitigate individual personal moral convictions about right and wrong.     

‘From saris to sarongs’ ethnicity and intergenerational influences on consumption among Asian Indians in the UK

This paper investigates the role of ethnicity and intergenerational influences on the consumption patterns of Asian Indians living in the UK The research determines the extent to which (a) ethnicity and (b) intergenerational factors influence consumption and decision making. The empirical evidence suggests that ethnicity, background and cultural roots impact on consumer decision making and brand choice. The study aims to develop the research on the role and strength of intergenerational influences in an Asian Indian context; bringing together acculturation, generational and consumption theory.     

Does national sentiment affect foreign direct investment,and if so,how? Additional evidence

Studies of foreign direct investment (FDI) decisions typically assume that decision makers and stakeholders act rationally. Drawing on studies conducted at the individual level, this study focuses instead on affect and explores theoretically and empirically how national sentiment influences FDI decisions. In particular, we develop a typology for understanding national sentiment along two axes—positive versus negative and accumulated versus transient—and investigate their separate influences on FDI. The results indicate that negative sentiment has a greater influence on FDI than positive sentiment and that accumulated sentiment has a greater influence than transient sentiment. This study complements conventional FDI research by demonstrating that national sentiment offers additional explanatory power beyond the variables known to influence FDI decisions. Moreover, our study shows that research conducted at the individual level can be useful for understanding the influence of affective elements on FDI decisions.     

Decision constraints and consideration‐set formation in consumer durables

The central argument of this article is that the initial phases of the consumer decision process have a major effect on product evaluation and choice. Specifically, the need‐arousal event and the consequent retrieval of product‐related decision constraints from memory substantially influence the ensuing processes of external information search and alternative evaluation. Several hypotheses based on previous experimental research are formulated to capture these influences. Survey data from a large sample of new automobile buyers in New Zealand are used to test the hypotheses. The results suggest that the product‐related decision constraints that are activated as a consequence of problem recognition significantly change the remainder of the purchase process. The findings have important implications for understanding how consideration sets are formed. © 2001 John Wiley & Sons, Inc.     

Ecological rationality and entrepreneurship: How entrepreneurs fit decision logics to decision content and structure

During new venture creation, entrepreneurs make decisions in a variety of areas from seeking funding to hiring employees. When and why entrepreneurs use effectual or causal logics to make such decisions is poorly understood. In this study, we integrate ecological rationality theory and effectuation theory to examine how the nature of decisions influences entrepreneurs' use of decision logics. In a qualitative study with 41 entrepreneurs across 290 decisions, we explore how decision content (what the decision is about) and decision structure (what information about a decision is represented in the decision-maker's mind) influence entrepreneurs' use of effectual or causal logics. We extend our findings in an experiment with 224 entrepreneurs where we manipulate decision structure. Our results suggest that decision content influences entrepreneurs' mental representations of decision structure. In turn, the combination of two elements of decision structure — decision complexity and the perceived costs of implementing different options — drives entrepreneurs' use of decision logics. We contribute to the effectuation literature by integrating it with ecological rationality theory, introducing the concept of decision fit as a driver of decision logics, and developing our understanding of hybrid decision-making (the simultaneous use of effectuation and causation).     

A Comparison Study of Manufacturing Industry in Taiwan and China: Manager's Perceptions of Environment,Capability, Strategy and Performance

This article compares managers' perceptions of environment, capability, strategy and business performance in Taiwan and China. Based on an analysis of survey data collected from the fastener industry, results show that the industrial environment and network capability are significantly associated with performance in China, but not in Taiwan. The findings highlight the difference between actual and perceived situations which results from what specific context decision makers find themselves in and how they allocate attention to specific issues. In addition, path analysis reveals that both organizational and network capability of Chinese firms are significantly associated with strategy and performance. This demonstrates that the strategy selected by the Chinese firms as a mediator influences their performance. Implications of these findings are discussed.     

Beyond Just Being There: An Examination of the Impact of Attitudes,Materialism, and Self-Esteem on the Quality of Helping Behavior in Youth Volunteers

ABSTRACT

Young people represent a strong and growing source of volunteers for not-for-profit organizations (NPO) and are an important focus for NPO marketing efforts. Using helping behavior theory, this paper reports a study conducted with a sample of teenagers to examine influences on their decision to volunteer and their goal setting for fund-raising. The relationship between three individual variables (attitude toward the organization, self-esteem, and materialism) and the quality of helping behavior provided was found to be mediated in large part by attitude towards the actual volunteering task. Implications for NPO marketing and future research are discussed.     

Non-Conscious Influences on Consumer Choice

While consumer choice research has dedicated considerable research attention to aspects of choice that are deliberative and conscious, only limited attention has been paid to aspects of choice that occur outside of conscious awareness. We review relevant research that suggests that consumer choice is a mix of conscious and nonconscious influences, and argue that the degree to which nonconscious influences affect choice is much greater than many choice researchers believe. Across a series of research domains, these influences are found to include stimulus that are not consciously perceived by the consumer, nonconscious downstream effects of a consciously perceived stimuli or thought process, and decision processes that occur entirely outside of awareness.     

Recurrent Marketing Decisions: Decision Complexity,Decision Focus,and Firm Performance

In this paper we examine the nature of the decision-making process for recurrent marketing decisions and its effects on firm performance. A conceptual model of recurrent decision-making in a competitive environment is developed and used as a framework for analyzing 96 tactical decisions made by 35 management groups in the last three periods of a management simulation. The decisions were based entirely on a set of decision rules developed by the management groups. The decision rules were coded for whether they were internally or externally focused and how complex their decision process was. These two factors were then used to predict firm performance. There are a number of important results. The greater the uncertainty in the link between a decision variable and its outcome, i) the more likely managers are to prespecify the value of the decision variable rather than construct a decision rule, ii) the less complex the decision rules that are constructed, and iii) the greater the proportion of internally-focused decision rules. In addition, the focus of a decision rule, but not the complexity of the process—independent of the focus—is positively related to performance with firms that focus on both internal and external factors doing best.     

The Role of Decision Importance and the Salience of Alternatives in Determining the Consistency between Consumers' Attitudes and Decisions

This research examines how the importance of a consumer decision influences attitude-decision consistency and choice in decision contexts that contain versus do not contain specified alternatives. Results demonstrate that decision importance moderates attitude-decision consistency when alternatives are not specified, but not when alternatives are specified. These results, in conjunction with the time participants devote to choice, suggest that importance plays a larger role in attitude-decision consistency when alternatives are unspecified versus specified because importance leads to greater effort in generation of alternatives when alternatives are unspecified (an unnecessary task when alternatives are specified in context). Implications for promotion are discussed.