Influence of Language of Packaging Labels on Consumers’ Buying Preferences

Can packaging labels of three different foreign languages (Korean, Japanese, and English) affect consumers’ preferences? In a month of field experiment involving 203 Chinese undergraduate students, this study used coffee as an experimental product and created a fictitious brand “7 AM COFFEE.” Using analysis of variance (ANOVA) as a statistical tool, the results of the experiment show that the English language represents the strongest effect for (1) consumers’ attention, (2) trust, (3) perceived quality, (4) taste perception, and (5) purchase intention. Moreover, consumers with high or low frequencies of drinking a coffee do not have a specific preference in relations to their attitude. The findings and discussion of this research provide better direction for marketing managers of beverages in establishing market strategies to promote products and generating appeal among coffee drinker.     

Food choices in Ethiopia: does nutritional information matter?

This article reports results from a framed market experiment conducted to examine whether milk choices are responsive to changes in the nutritional characteristics of milk products. Using a random‐effect Tobit model, we analyzed experimental data collected from 160 participants in urban Ethiopia. It shows that sensory properties play a key role in the acceptance of reduced‐fat milk while the provision of nutrition information has a mixed effect on a price premium. Further, a substantial percentage of participants were found to have a strong preference for whole milk while only 19% of them prefer reduced‐fat milk with 2.8% price premium. The study unveils a heterogeneous preference for the nutritional quality of milk products. Consumers’ health problems and socio‐demographic characteristics influence their preference for the nutritional quality of milk products. The result also shows a nutrition‐taste tradeoff, yet consumers place more value on sensory experience. Contrary to earlier studies, we found that prior belief about milk quality influences how consumers value sensory experience and nutrition information.     

Evaluation and Choice as a Satisficing Process

The question of whether individuals are rational or irrational in their decision‐making has long been an area of interest to academics and marketers, as the different decision styles require differing use of information sources and choice criteria by consumers during the buying process. As such, marketers would be required to adopt different communication strategies and stress different marketing mix or product features if they were to be successful in influencing the consumer’ s final choice.

The debate can be classified into whether or not consumers follow a formalised decision sequence of search and evaluation leading to final product choice. If consumers are not prepared to commit themselves to the cognitive and behavioural effort required by this formal process then they will satisfice their decision‐making, applying simplifying strategies to arrive at a satisfactory, although not the optimum, choice.

This paper reviews the common assumptions of search and choice, suggesting a three‐stage model which can be used to guide marketing strategy. Research into the decision process used by consumers in the acquisition of a video recorder is used to illustrate the operation of the satisficing model. Implications for marketing strategy are then discussed.     

Consumers' switching inertia in a fictitious electricity market

Consumers in the deregulated Swedish electricity market do not switch from their incumbent supplier to the extent that would be economically beneficial. To examine potential causes for this switching inertia, a mail survey was administered to 540 Swedish electricity consumers who were randomly assigned to four experimental conditions and a control condition. Survey participants in the experimental conditions first made a choice of a supplier; then, they made choices between this alternative (their ‘incumbent supplier’) and other alternatives that differed from the incumbent supplier on price, quality of information, market share and availability of ‘green’ electricity. The results showed that lower price, higher quality of information, medium–large market share, and availability of green electricity increased switching to the alternatives to the incumbent supplier. A remaining general preference for choosing the incumbent supplier was reduced by instructions that removed feelings of loyalty and informed about the economic benefits of switching for all consumers.     

Okay,Google!: An empirical study on voice assistants on consumer engagement and loyalty

E‐commerce shopping has gradually become a norm in consumers’ choice of shopping channel and part of this shopping process is aided by advance technologies including voice assistants (VA). There is a variety of artificial intelligence that is being developed in the market currently, and one of which has gradually gained its presence or information acquisition is the VA. In this paper, we propose a model that investigates the technology acceptance model constructs (perceived ease of use and perceived usefulness) and its effect on the engagement and loyalty between VA and consumers. Our model also investigates the moderating role of localizing VA between transactional and nontransactional based online activities. This study highlights the implication of technology integration in an e‐commerce environment.     

Learning About Computers: An Analysis of Information Search and Technology Choice

We estimate a dynamic model of how consumers learn about and choose between different brands of personal computers (PCs). To estimate the model, we use a panel data set that contains the search and purchase behavior of a set of consumers who were in the market for a PC. The data includes the information sources visited each period, search durations, as well as measures of price expectations and stated attitudes toward the alternatives during the search process. Our model extends recent work on estimation of Bayesian learning models of consumer choice behavior in environments characterized by uncertainty by estimating a model of active learning—i.e., a model in which consumers make optimal sequential decisions about how much information to gather prior to making a purchase. Also, following the suggestion of Manski (2003), we use our data on price expectations to model consumers’ price expectation process, and, following the suggestion of McFadden (1989a), we incorporate the stated brand quality information into our likelihood function, rather than modeling only revealed preference data.Our analysis sheds light on how consumer forward-looking price expectations and the process of learning about quality influence the consumer choice process. A key finding is that estimates of dynamic price elasticities of demand exceed estimates that ignore the expectations effect by roughly 50%. This occurs because our estimated expectations formation process implies that consumers expect mean reversion in price changes. This enhances the impact of a temporary price cut. Finally, while our work focuses specifically on the PC market, the modeling approach we develop here may be useful for studying a wide range of high-tech, high-involvement durable goods markets where active learning is important.JEL Classification: C15, C33, C35, C42, C51, C52, D83, D84     

Integrating Time-Preferences into E-Negotiation Systems: A Model,Elicitation Approach and Experimental Implications

Researchers have advocated that the acquisition of user preferences is important to the successful adoption of electronic negotiation systems. In this paper, we focus on one such preference, namely time preference, wherein the price of a good/service varies according to the delivery/consumption time. Time preference is a behavioral aspect that varies across buyers. We discuss how different types of preferences can be elicited, represented and integrated with electronic negotiations. We discuss three experiments to study the effect of time preferences on negotiation. The first is a preference elicitation experiment involving 36 subjects. The next two are agent-to-agent negotiation experiments, one based on the individual preferences obtained earlier and the other based on an expanded dataset on both individual preferences as well as negotiation parameters. The agent-based experiment compares outcomes and efficiencies between the standard exponential discounting model and two behavioral models of time preference. Our results bring out the preferences of subjects, as well as the extent to which negotiation is affected and enhanced by the incorporation of time-preferences.     

Marketing Strategy, Product Safety, and Ethical Factors in Consumer Choice

Firms that wish to be morally responsible in providing products that meet a high standard of safety may face problems competing against firms that make unsafe products and sell these products at cheap prices; these problems may be compounded when consumers do not accurately process information about safety and risk. This paper presents a conceptual argument that the tort system may serve to promulgate information which makes it feasible for firms to market safe products even in the face of these competitive obstacles.To corroborate the conceptual argument, the paper presents the results of an experimental study about the impact of negligence liability information on consumer product safety evaluation. The results show that provision of negligence information heightens consumer concern for safety and firms' ethical behavior, and increases the proportion of consumer choices in favors of the brands sold by manufacturers with a favorable track record for quality. More importantly, they indicate that provision of negligence information reduces the likelihood that brands which conform to inferior safety standards will be chosen by consumers who care about safety standards.     

Exploring Japanese consumers’ cultural meanings and consumption of American fashion

The purpose of this research is to explore how Japanese consumers perceive American fashion and how this perception is related to the purchase of American fashion products based on Consumer Culture Theory. For this research, cultural meanings of American fashion in Japanese fashion market were collected and analyzed using a thematic analysis method through Japanese consumers’ online postings and discussions. Results showed Japanese consumers perceived American fashion to (1) be economical/causal and lack fashion sense, (2) have different fashion trends for celebrities and general population, and (3) be individualistic without obvious fashion trends. This research also found Japanese consumers preferred American fashion for four reasons: (1) preference for American casual fashion styles, (2) emulation of existing styles of American celebrities, (3) availability of styles and sizes for non-regular Japanese body size, and (4) unique fashion styles rare in the Japanese fashion market. On the other hand, Japanese consumers identified various reasons why they are reluctant to consume American fashion. Three reasons include (1) different styles, (2) different aesthetics views due to different body sizes, and (3) reluctance to conform to current American fashion styles in the Japanese fashion market.     

A paradox of price–quality and market efficiency: a comparative study of the US and China markets

The price–quality schema rests on an assumption that price is credible information about product quality. However, the credibility of price information varies across different markets. In an inefficient market, consumers would believe in the price–quality relationship to a lesser extent because price information is less credible. Paradoxically, in such a market, sometimes consumers have to rely more on price to infer quality because other product information is less available. With a cross-national perspective, this study investigated the influences of market efficiency and consumer risk aversion on the price–quality schema between the China and the US markets. We found that due to the inefficient market environment, Chinese consumers possess a weaker price–quality schema than American consumers. Chinese consumers are more risk averse than their American counterparts. However, in China, risk-averse consumers are more likely to use price to infer product quality. Implications for global marketing are discussed, and directions for future research are suggested.     

Organic consumers’ preferences and willingness‐to‐pay for locally produced animal products

In Germany, a large share of organic animal products is being produced with imported protein feedstuffs. Products labelled as ‘local’ are also often produced with imported feed. At the point of purchase, animal products are not usually labelled with any information on the feed that was used to produce it. Therefore, it remains unclear what consumers think about the use of imported feed, in particular in the case of products labelled as ‘local’. The aim of the present research study was to analyse whether the use of local feed represents an option for successful product differentiation in the organic animal products market. Discrete Choice Experiments and computer assisted personal interviews were conducted with 597 organic consumers in Germany to investigate their preferences and willingness‐to‐pay for local organic animal products produced with local feed. The choice experiments revealed a strong preference for local feed. The outcome of our investigation also shows that the provision of information on feed imports into Germany can be an important tool for promoting organic animal products produced with local feed. The results suggest the use of local feed could be an option for successful product differentiation in the organic animal products market, especially if effort is put into raising consumer awareness of current organic feed importation practices.     

Tradeoffs Between Price and Quality: How a Value Index Affects

The present research examines how the availability of information about the value of a product, expressed as a ratio of the quality received per dollar, influences preference formation. This index, similar to unit price which provides information about how much quantity is received per dollar, presents consumers with information regarding the quality received per dollar. An experiment that compares consumers' preferences inferred from a choice task with their preferences inferred from a conjoint task was conducted. In the choice task consumers selected the most attractive alternative from a set of options, while in the conjoint task the attractiveness of each option was rated. Consumers, presented with an index of quality received per dollar paid (the value index), are more likely to choose a lower priced, higher value option rather than a higher priced, higher quality option compared to consumers presented with only price and quality information. Clearly, how a consumer chooses to “get the best for his or her money” depends on the ease with which information about the choices can be processed.     

Is a $200 Nordstrom Gift Card Worth More or Less Than a $200 Gap Gift Card? The Asymmetric Valuations of Luxury Gift Cards

Gift cards account for a $200 billion market in the US, yet little is known about consumers’ preferences and valuations of different gift cards. We examine how average US consumers feel about exchanging luxury brand gift cards (LGCs) versus non-luxury brand gift cards (NLGCs). Using secondary data analyses, surveys, and experiments, we demonstrate two asymmetries: between valuations of LGCs versus NLGCs and between valuations of gift cards by givers versus recipients. We show that LGCs are valued less than NLGCs with identical price tags. LGCs are more likely to be swapped or sold. Resellers demand and buyers pay lower prices for LGCs. These effects are mediated by the perceived utility of the gift cards as gifts and moderated by a person’s role in the gifting process. Gift givers value and prefer to give LGCs more, whereas recipients prefer and value NLGCs more.     

Applying transaction utility theory to sales promotion – the impact of culture on consumer satisfaction

Customer satisfaction is known to have a positive impact on market share and satisfaction levels may be moderated by factors such as price sensitivity and perceived value. Transaction utility theory tells us that consumers make overall cognitive judgements about a price-based promotion after the experience, driving their intention to repeat the process in the future. Studies do show a link between unexpected product promotions and increased cognitive processing of satisfaction and pleasure, and other studies highlight the relationship between consumption satisfaction and culture. However, few studies consider links between culture and acquisition and transaction utility. This study examines the impact of culture on satisfaction and pleasure with, and resultant preference for, price-based sales promotion in two culturally dissimilar consumer markets, New Zealand and China. The study finds that, while transaction utility theory is supported in the collectivist market of China, it is not in the individualist market of New Zealand, suggesting a need for further investigation cross-culturally.     

Local and/or organic: a study on consumer preferences for organic food and food from different origins

This paper gives a deeper insight into consumer preferences for different food products of varying place of origin (i.e. local, Germany, neighboring country, non‐EU country) and production practices (i.e. organic vs. non‐organic). Consumer surveys combined with choice experiments were conducted with 641 consumers in eight German regions. Mixed logit models were estimated to draw conclusions on consumers’ preferences for different product attributes. The Stimulus‐Organism‐Response model was applied to theoretically frame the key findings. Results reveal that consumers prefer locally produced food to organic food. However, conclusions on consumers’ preferences should not be generalized as they vary depending on product type and consumers’ place of residence. When looking at the willingness‐to‐pay estimates for ‘organic’ and ‘local’ while distinguishing among consumers from different regions of Germany, results indicate that consumers living in rural areas and consumers living in the eastern part of Germany are less willing to pay a premium for organic products than urban consumers and consumers from other parts of Germany. As preferences for origin attributes and organic production vary between different food products and in different regions of Germany, market actors should design marketing activities accordingly. This study adds to the international research on consumers’ preferences for organic and/or local food. The results provide better insights into preference structures, as more than one product has been included and surveys were conducted in different regions across Germany.     

Ethical consumerism and wage levels: Evidence from an experimental market

This paper contributes to the promotion of multidisciplinary research on ethical consumerism by providing experimental evidence on consumer's willingness to reward sellers by paying higher wages to their workers. We analyze repeated interactions occurring between workers, sellers, and consumers within the framework of an experimental market. By successfully performing a task, workers allow sellers to offer a good through a market. Sellers set the price of goods and decide the wages of workers. Consumers enter the market sequentially and decide whether to accept one of the offers or to leave the market. Our data show that, especially in the first periods of the experiment, some sellers opt to pay high wages to their workers. However, this behavior is not rewarded by consumers, whose purchasing choices are almost exclusively driven by self-interest. In our interpretation, the connection between workers and sellers that connotes our experimental design, with workers who allow sellers to enter the market, may induce consumers to believe that eventual sacrifices for paying high wages to workers must be entirely on sellers. Our result suggests that the more salient is made the importance of some stakeholders in allowing the firm's activity, the fewer consumers' may be willing to sacrifice their monetary payoff to improve these stakeholders' condition.     

How retailer money-back guarantees influence consumer preferences for retailer versus national brands

Retailers often use money-back guarantees to reduce consumer perceived risk about brand quality and to increase their market share. The effect of such guarantees on perceived product quality and ultimately preference and product choice depends on their perceived value and credibility, related to other extrinsic clues, such as price and brand. An analysis of an experimental design with a national sample of consumers shows that compared with a simple money-back guarantee, a double money-back guarantee does not further increase the relative preference for a retailer brand over a national brand. Furthermore, the size of the effect of a money-back guarantee is small, moderated by the effects of other information on product quality, such as the size of the price differential between retailer and national brands. Finally, the effect of a money-back guarantee differs, depending on the customer–retailer relationship: A retailer with high credibility can influence regular customers less by guarantees.     

Consumer behaviour of Brazilian primary school students: findings from focus group interviews

Children worldwide are becoming avid consumers of virtually every type of product and service, which qualifies them as an important primary market. The purpose of this study was to obtain primary data about the consumer behaviour of a group of Brazilian children using a qualitative approach. Twelve focus group interviews were conducted with primary school students (7–10 years, n = 57), and results were processed through content analysis. Many, but not all students, received an allowance, mostly from parents and grandparents. Many students spent the money immediately or after just saving only enough to buy a desired item; others preferred to save their money for the sake of saving it or for a specific future endeavor. Money was spent mainly on food, toys and clothes; sometimes on the impulse of the moment and associated with later guilt. Television was considered a big source of information on new products, but regarded as untrustworthy. When they could not get what they wanted, most children appealed to negotiation strategies; many also reported feeling sad or cross. Results showed a situation of late socialization as consumers, suggesting the children could benefit from consumer education strategies targeted at them.