Should Prices of Consumer Goods Be Better Indicators of Product Quality?

In contrast to the common assumption that prices are good indicators of quality, this note argues that price-quality correlations are typically rather low. Such low coefficients are not surprising since mass-produced goods of high quality may have lower prices than scarce goods of lower quality. In addition, low correlations can be characterized as desirable, since prices are an indicator not of quality but of scarcity.     

Excellent Product … But Too Early to Say: Consumer Reactions to Tentative Product Reviews

This research explores the effects of tentativeness in online product reviews on consumers' product attitude certainty and behavioral intentions. Drawing on salience theory, attribution theory, and work in attitude certainty, I predict that, when consumers who have seen positive reviews of a product are exposed to a tentative review, their attitude certainty and willingness to purchase is reduced. I also predict that consumer reactions differ depending on the expertise of the review source as well as the product experience of the consumer.I also address confidence in information completeness as the metacognitive mechanism that explains the tentative review effect. Specifically, I argue that consumers who see a tentative review are sensitized to potentially missing information, which reduces their attitude certainty and willingness to purchase.Our hypotheses are tested in a series of experiments which demonstrate that tentativeness reduces attitude certainty and willingness to purchase but that the effect is attenuated when the reviewer is a novice and when the consumer has a high level of product experience. Based on the findings, I discuss our contributions to theory and suggest practical steps that firms can take to mitigate the effects of tentative reviews.     

Agreement Between Product Ratings Generated by Different Consumer Testing Organizations: A Statistical Comparison of Consumer Reports and Which? from 1957 to 1986

This study attempts to determine the reliability of product quality ratings published in Consumer Reports and its British counterpart, Which?, over the last 30 years. Ratings on the same product brands and models as well as the same evaluative dimensions are compared by statistically analyzing the report findings for 43 pairs of parallel tests conducted by the two magazines. Three measures of agreement were employed in this analysis, and all three revealed statistically significant (above chance) levels of agreement between the two magazines. Implications of the study findings are discussed for consumer testing organizations as well as for consumer researchers and consumer educators.     

The Consumer Product Safety Commission: Benefit or Boondoggle?

The Consumer Product Safety Commission has been subject to the criticism of all parties involved in the regulation of the safety of consumer products. This paper evaluates the Commission's performance, examining both the sources of the Commission's regulatory problems and the extent to which recent amendments to the Consumer Product Safety Act will ameliorate these problems. Alternative approaches to the regulation of consumer product safety are suggested.     

The Impact of Cause Branding on Consumer Reactions to Products: Does Product/Cause 'Fit' Really Matter?

This paper examines the issue of 'fit' between causes, companies, products and brands in the field of Cause Related Marketing (CRM). The linking of charitable causes and commercial ventures via their branded identities has become very widespread in the last ten years. The literature states that obtaining a good 'fit', in terms of the positioning and objectives of both product and charity, is very important to the success of CRM initiatives. However, there is no empirical support for this common assertion. This paper describes an experiment that was designed to test the assumption that 'fit' is important. The results of the experiment indicate that the degree of 'fit' between products and causes does have a significant effect on consumers' evaluations of products that carry a cause 'brand identity' as part of a CRM campaign. The results also indicate that cause cues in low involvement purchase situations create their impact by disrupting existing decision heuristics, rather than by the creation of new heuristics of assessment. This finding has implications for commercial managers when they are assessing the 'fit' and potential benefits of CRM associations.     

The Country-of-Origin Effect and Consumer Attitudes to “Buy Local” Campaign

Abstract

The objective of this paper is to investigate the relationship between ethnocentrism of Ghanaian consumers and their attitudes toward a “buy local” campaign. Two hundred and thirty three consumers were interviewed in Cape Coast, the capital city and administrative centre of the Central region of Ghana. Data for the study were collected through interviewing using the mall intercept approach and factor analysed. Our findings show a relationship between ethnocentrism and attitudes of Ghanaian consumers toward the “buy local” campaign. Furthermore, the factor analysis results indicate that the attitudes of the Ghanaian consumers to the buy locally-made products can be characterized as protectionist, nationalistic, and self-interest. Implicitly, the consumers will buy Ghanaian-made products where they are of comparable quality and price as foreign-made products. This requires companies to ensure that their products are of high quality and prices are commensurate with quality. This study contributes to the ethnocentrism and country of origin literature pertaining to the African region, which is sorely under-researched.     

Consumer Education: Does It Change Students' Competencies and Attitudes?

A number of states require or are considering the required teaching of consumer education in secondary schools. However, almost all previous research has found no difference in consumer economic competency between students who had taken a consumer education/economics course and students who had not taken the course. This research was conducted in a state that requires consumer education of all students to see if there was a change in competency level and attitudes toward business. Potential differences in types of courses used to meet the state requirements were also investigated. The basic finding is that students who took a course specifically designed to present consumer education topics did improve their consumer economics competency and developed a more positive attitude toward business.     

Does Social Media Matter? Investigating the Effect of Social Media Features on Consumer Attitudes

The purpose of this study is to explore the impact of social media's features (i.e., entertainment, usefulness, informativeness and irritation) toward consumers’ attitude toward the brand. Subsequently, this study explores the impact of this attitude toward consumers’ brand loyalty, brand awareness and purchase intention. Data for this study was collected through a large public university in Australia. Paper surveys were distributed to students, their friends and members of their immediate families (N = 724). The findings show that entertainment feature has the strongest impact on consumers’ attitude toward the brand's social media use, followed by informativeness, usefulness and finally, irritation. Consumers’ attitude toward a brand's social media strongly influences consumer loyalty, awareness and purchase intention. The findings of this research provide some insights into the impact of different features of social media which will be useful for practitioners and academics interested in social media.     

Determinants of Consumer Attitudes and Purchase Intentions With Regard to Genetically Modified Food – Results of a Cross-National Survey

Previous research has shown consumers to be highly sceptical towards genetic modification in food production. So far, however, little research has tried to explain how consumers form attitudes and make decisions with regard to genetically modified foods. The paper presents the results of a survey which was carried out in Denmark, Germany, Italy, and the United Kingdom to investigate the formation of consumer attitudes towards genetic modification in food production and of purchase decisions with regard to genetically modified yoghurt and beer. Altogether, 2031 consumers were interviewed in the four countries.Results show that attitude formation and decision-making are more comparable among Danish, German, and British consumers than with Italian consumers. Italian consumers turned out to be significantly less negative towards genetic modification in foods than particularly Danish and German consumers. Across countries, the attitude towards genetic modification in food production was deeply embedded in more general attitudes held by the consumers, in particular attitude towards nature and attitude towards technology. These general attitudes were found to influence perceived risks and benefits of the technology. Purchase decisions with regard to the two product examples were almost exclusively determined by attitudes towards purchasing the products. These were, in turn, significantly influenced by the overall attitude towards genetic modification in food production through their effects on beliefs held by consumers regarding the quality and trustworthiness of the products.The results suggest that attitudes towards genetically modified foods are quite strong, despite their lack of basis in actual product experience. Likewise, the strong relation of product-specific attitudes to the attitude towards using genetic modification in food production suggests that at present consumers reject the technology overall rather than evaluate products on a case-by-case basis. This situation may, however, be changed by a possible increased availability of genetically modified food products on the consumer market.     

The Mediated Influence of a Traceability Label on Consumer’s Willingness to Buy the Labelled Product

Although stakeholder theory is concerned with stakeholder engagement, substantive operational barometers of engagement are lacking in the literature. This theoretical paper attempts to strengthen the accountability aspect of normative stakeholder theory with a more robust notion of stakeholder engagement derived from the concept of good faith. Specifically, it draws from the labor relations field to argue that altered power dynamics are essential underpinnings of a viable stakeholder engagement mechanism. After describing the tenets of substantive engagement, the paper draws from the labor relations and commercial law literatures to describe the characteristics of good faith as dialogue, negotiation, transparency, and totality of conduct; explains how they can be adapted and applied to the stakeholder context; and suggests the use of mediation and non-binding arbitration. The paper concludes by addressing anticipated objections and shortcomings and discussing implications for theory and research.     

Do Consumers Acculturated to Global Consumer Culture Buy More Impulsively? The Moderating Role of Attitudes towards and Beliefs about Advertising

This research advances knowledge that can foster understanding of how global consumer culture (GCC) and its elements relate to impulsive buying and sheds light on how advertising attitudes and beliefs interact with this main relationship. Specifically, this study examines the moderating effects of attitudes towards and beliefs about advertising on the relations between consumers’ level of acculturation to global consumer culture (AGCC) and impulsive buying. Consumers who are the most acculturated to GCC, and who have positive attitudes towards and beliefs about advertising, buy the most impulsively. AGCC is related to increased impulsive buying, even when attitudes towards and beliefs about advertising are negative. The article contributes to the development of a theoretical explanation of these understudied relations by employing acculturation theory and congruity theory. Social and practical implications are discussed.     

What Drives Consumer Participation to Loyalty Programs?

Abstract

Little is known about the way in which different loyalty program attributes underlie consumers' intentions to participate in such a program. Based upon equity theory, the current study distinguished between consumer inputs (personal data release, participation cost, purchase frequency, participation exclusivity, and participation efforts) and outputs (program benefits, number of program providers, and program duration) as underlying attributes potentially affecting participation in a loyalty program. Using conjoint analysis, we explored how different levels within each of these eight attributes affect consumers' intentions to participate. The study holds major implications for the design of successful customer loyalty programs.     

Ethical Responses to Public Allegations of Skin Tone Manipulation in Print Advertising: Consumer Indifference or Consumer Concern?

This study examines the effect of consumer prejudice on ethical responses to public allegations of skin tone manipulation in print advertising. A sample of 156 undergraduate business students read a fictitious news story in which an advertising watchdog group accused business executives of using digital manipulation to lighten the skin tone of a Black female model featured in a product print ad. Participants then answered questions on ethical perceptions, behavioral intentions, and prejudice toward Blacks. Results suggest that low-prejudice consumers have stronger ethical concerns toward the digital lightening of ethnic models in print ads than do high-prejudice consumers. The authors discuss the findings, limitations, and directions for future research.     

The Impact of Cause-Related Marketing on Millennials’ Product Attitudes and Purchase Intentions

This study, using scenarios, examined the impact of two kinds of cause-related marketing (CRM) efforts (a traditional donation of a portion of sales to a related cause and a more strategic one-for-one donation of donating a product to a related cause when that product was purchased) on millennials’ (those born between 1982 and 2000) attitudes and purchase intentions for four different consumer product categories. The four different consumer product categories selected included a specialty good (laptop), a shopping good (hat), a convenience good (bottled water), and a service (food restaurant). Given the importance of social media to millennials, this research also examined the role of social media on CRM awareness. While millennials had relatively low awareness of CRM campaigns, there was a positive correlation between social media use and CRM awareness. Additionally, CRM efforts may not work for all products as there was no impact on attitude or purchase intention for the product category of laptops. Additionally, the positive attitudes created by marketers’ CRM efforts will not always translate to increased purchase intentions. The use of a strategic one-for-one CRM effort though had a greater impact, specifically for products that deal with needed fundamentals, such as food and water.     

Helping You to Waste Less? Consumer Acceptance of Food Marketing Offers Targeted to Food-Related Lifestyle Segments of Consumers

ABSTRACT

Consumer households and consumer behavior have been identified as the major cause of food waste in the supply chain. Food marketing might offer products and services that help consumers to reduce their food waste or reduce the consumer-related food waste at the consumer–retailer interface. However, such strategies require consumer acceptance and targeting the right customers. Through an online survey of 800 Danish consumers and a measure of food-related lifestyle, four clusters of consumer segments are identified. The segments are compared with regard to their acceptance of a number of actions consumers can take to reduce food waste or their acceptance of food marketing services they would need to pay for. Acceptance differs with food involvement and the role of the price criterion, as well as with gender, education and age. The findings show how food marketing can help consumers to reduce food waste, through actions targeted to specific segments of consumers characterized by food-related lifestyle differences.     

Are Exporters More Likely to Introduce Product Innovations?

A firm’s export status may improve its ability to introduce product innovations (learning by exporting). We explore this idea using very rich firm‐level data on Italian manufacturing, which enables us to control for many confounding factors in the exporting–product innovation link (i.e. selection on observable variables). We also make an attempt to address the potential self‐selection of firms into exporting according to unobservable characteristics using an industry–province specific measure of firm distances from their most likely export markets, and of these export markets’ potentials as sources of presumably exogenous variations in export status using an instrumental variables strategy. We find that export status significantly increases the likelihood of introducing product innovations and that this effect is not fully captured by the channels commonly stressed by the theoretical literature, such as larger markets (and accordingly firm size) or higher investments in R&D. We argue that heterogeneity in foreign customers’ tastes and needs may explain our findings.     

Do Product and Consumer Characteristics Affect the Relationship Between Online Experience and Customer Satisfaction?

ABSTRACT

This study utilizes a survey to understand how relevant product and consumer characteristics affect the relationship between online experience and satisfaction. Results indicate that Web shoppers' satisfaction is strongly affected by a superior online experience if they have no prior experience with the purchased brand, they are purchasing a high priced product, and their general attitudes toward online shopping are not very favorable. Further, the relationship between online experience and satisfaction was found to be stronger for females as compared to males.     

Does the U.S. Consumer Product Safety Commission make a difference? An assessment of its first decade

In 1972 the Consumer Product Safety Commission (CPSC) was given the mandate of protecting the U.S. public against unreasonable risks of injury associated with consumer products. Pooled cross-sectional time-series data from 1961 to 1982 on states' accidental home death rates are used to examine how effective the CPSC has been. This evaluation controls for several relevant historical forces (besides the CPSC) which may have contributed to fluctuations in the accidental home death rate. The results indicate that after controlling for those exogenous factors for which there are data, the CPSC reduced accidental home deaths by an estimated 17,941 over its first ten years of operation.     

Determinants of Consumer’s Willingness to Purchase Gray-Market Smartphones

The study analyzes the influential factors of consumers’ willingness to purchase gray-market smartphones by considering the model of novelty seeking, status consumption, integrity, and perceived risk. Attitude toward counterfeit is used as mediation in the model. The causalities in the model of problematic willingness of consumer to purchase gray-market smartphones are hypothesized. A total sample of 350 respondents with 238 effective samples is collected by interviewing with questionnaires at the service counters of telecommunications operators. Structure equation modeling (SEM) is adopted in the analysis. Consumers’ attitude toward counterfeit goods is found to be positively related to the willingness of consumers to purchase gray-market smartphones, but perceived risk is negatively related to consumers’ willingness to purchase. As for personality constructs, integrity and status consumption are found to be negatively related to consumers’ attitude toward counterfeit goods, but novelty seeking is positively related to the attitude. Further, managerial implications for branded smartphone manufacturers and telecommunications regulators are provided by the research.