How the Temporal Framing of Energy Savings Influences Consumer Product Evaluations and Choice

Consumer interest in behavior that is good for the environment is increasing, but actual behavior consistent with this objective has not risen accordingly. This may in part be due to consumers not realizing that their environmentally protective behaviors may have tangible future benefits for them. These studies examine the influence of message frames and a consumer's propensity to think about the future for products that have future benefits. More specifically, these studies examine how consumers respond to temporal frames of savings on product packaging for energy efficient products. Two studies suggest that the temporal framing of savings can influence product choice, purchase intentions, attitudes, and perceptions of savings. The results indicate that future‐oriented consumers are likely to have more positive evaluations when savings are framed in the distant future compared to the near future. In addition, there is a mediating effect of perception of savings. These experiments provide information of interest to marketers and researchers regarding the influence of temporal frames and a consumer's temporal orientation on products that have future benefits.     

The Impact of Power Distance Belief on Consumers' Brand Preferences

Five lab studies and a field study explore how power distance belief (PDB) influences consumers' preference for mass-market versus niche brands, the underlying mechanisms, and boundary conditions. We find that high (vs. low) PDB consumers are more likely to prefer mass-market over niche brands because they tend to be risk averse, which in turn increases preference for widely used brands. Consequently, the relationship between PDB and brand preferences is mediated by risk aversion. Further, when product usage contexts are risky, low (but not high) PDB consumers' preference for mass-market brands increases, whereas offering an extended money-back guarantee increases high (but not low) PDB consumers' preference for niche brands. In addition, we find that when choosing service providers (versus choosing physical goods), low (but not high) PDB consumers are significantly more likely to prefer mass-market brands over niche brands. We conclude with the implications of these findings for marketers, such as for their segmentation and targeting endeavors. We also provide specific tools that marketers could use, both inside and outside the store, to influence consumers' preference for mass-market versus niche brands.     

Who will embrace upward line extension? The role of power distance belief

Upward line extension is a significant strategy for enterprise brand management and market expansion. However, a new status product launched by a non-status brand through upward line extension inevitably forms a competitive relationship with the status product launched by a status brand. Based on the categorization theory, this study explores the influence of status product type (non-extended status product, upward-extended status product) on consumer responses and its potential psychological mechanisms. Furthermore, it examines the moderating role of power distance belief (PDB) in the relationship between status product type and consumer responses. The results indicate that consumers develop lower product evaluations and purchase intentions for upward-extended status products compared to non-extended status products (Studies 1, 2a, 2b, and 2c). Perceived fit and signaling effectiveness mediate the effect of status product type on consumer responses (Study 1). More importantly, PDB moderates the effect of status product type on consumer responses, as high-PDB consumers respond similarly to upward-extended and non-extended status products, whereas low-PDB consumers respond more negatively to upward-extended status products compared to non-extended status products (Studies 2a, 2b, and 2c). Perceived fit and signaling effectiveness mediate the interaction effect between PDB and status product type on consumer responses (Studies 2a and 2b). This study augments the literature on vertical brand extension and PDB, and provides practical guidance for marketers intending to launch upward line extension.     

Ethnocentric tendencies of Indian consumers: impact on preference for domestic versus foreign products

India is witnessing a plethora of foreign and domestic products competing against each other in its retail market. In order to understand how ethnocentrism among Indian consumers leads to attitudes toward foreign/domestic products, this study aims to understand the antecedents (socio-psychological and demographic) of consumer ethnocentric tendencies (CET) among Indian consumers, the impact of ethnocentrism on attitude toward domestic versus foreign product and service, and the impact of a moderator (perceived economic threat) on the relationship between ethnocentrism and attitudes. Using a sample of 800 Indian consumers, the relationships among variables were analyzed by means of structural equation modeling (SEM) using one product (soap) and one service (mobile phone service) category. The findings suggest that Indian consumers who are ethnocentric prefer domestic product/service to foreign product/service. Ethnocentrism of Indian consumers is influenced by education, income, cultural openness, and collectivism. The relationship between ethnocentrism and attitudes was moderated by perceived economic threat. Implications are provided for both Indian and foreign marketers to successfully promote their products to Indian consumers.     

Joint or separate? The effect of visual presentation on imagery and product evaluation

In this research, we examine the effect of joint versus separate visual presentation on consumers’ product evaluation. Counter to prior research on hedonic editing and unpacking, which suggests that separate presentation or unpacking produces greater utility, we propose and demonstrate in this paper that joint visual presentation can increase product evaluation. This pattern of effects occurs because presenting products together facilitates mental imagery of the product consumption, which leads to greater perceived psychological ownership and higher product evaluation. As such, the effect of joint presentation on product evaluation is attenuated when mental imagery is disrupted under joint presentation, encouraged under separate presentation, or when products lack complementarity to elicit mental imagery of one cohesive consumption episode. Evidence from seven studies provides converging support for these hypothesized effects and their underlying process. Our findings contribute to the literature on visual presentation, unpacking, and imagery, offering relevant implications to marketers and retailers.     

Finding the Right Shade of Green: The Effect of Advertising Appeal Type on Environmentally Friendly Consumption

There are two forms of advertising appeals for environmentally friendly products and policies: those that provide consumer benefit (e.g., cost savings) and those that provide societal benefit (e.g., lower emissions). This research examines the role of decision-making and consumption contexts on the efficacy of each appeal. The results of three studies indicate that in contexts where consumers experience heightened public accountability they are more responsive to other-benefit appeals, and in more private settings they favor self-benefit appeals. We replicate this finding across multiple samples, product categories, and consumption and decision-making contexts. Our findings reconcile previously conflicting research on the efficacy of either appeal type and provide guidance for marketers seeking to promote environmentally friendly consumption.     

Consumer Responses to English Accent Variations in Advertising

Abstract

With the growing use of different types of English accents in international advertising, it is important for marketers to understand the factors that influence the credibility of the spokesperson in order to select the most persuasive character. This study investigates the effects of a spokesperson's accent on spokesperson's perceived credibility across high and low involvement products and products of different country-of-origin. Two different accents-the standard English accent and the local Singaporean English accent (Singlish)-were tested. Results indicated that accent, product country-of-origin and product involvement significantly influence the spokesperson's perceived credibility and attitude towards the ads. The accent effects appeared to be strong enough to offset the country-of-origin, gender and product involvement effects, attesting to the importance of considering this factor in advertisements. Specifically, the Standard English accent outperformed the Singlish accent in terms of spokesperson credibility, attitude towards the ad, attitude towards the brand and purchase intentions. However, the Singlish accent outperformed the Standard English accent in terms of attention to the ad. Implications for marketers are discussed.     

Mediating Role of Company Information in the Relationships among Perceived Risks and Purchase Intentions in an Online Retailing Context

The exponential growth of the online retail sector has attracted the attention of researchers across the globe. Understanding the consumer decision-making process in an online retail context is of vital importance to all online retailers. The objective of this study was to examine the direct and indirect impacts of perceived risks on consumers’ purchase intentions in an online shopping context. This study applied structural equation modeling to test the study model with data from 234 samples. We found a significant negative full mediating impact of performance risk, financial risk, physical risk, and psychological risk on consumers’ purchase intentions. Moreover, we found a partial mediating impact of social risk on purchase intentions. However, we did not find a mediating impact of time risk on purchase intentions. These empirical results may help online retailers to better understand their consumers, their intentions to purchase, and their level of risk perceptions. Accordingly, online marketers can frame contemporary strategies to attract retail customers, leading to greater profitability of the organization.     

Consumer satisfaction with shopping experiences and clothing products in the children's wear market

This study, utilizing a model of the satisfaction process in retail settings, analysed the relationship between problem disconfirmation and satisfaction with (i) shopping for children's clothing and (ii) the quality of children's clothing. In addition, the effect of shopping satisfaction on product satisfaction was also examined. The sample comprised 957 children's wear consumers from one mid-western state. Factor analysis and ordinary least-squares regression were the statistical techniques used to analyse the data. The results indicate that sizing and fit problems are significantly related to satisfaction with the shopping experience. Product attributes related to the lasting ability of a garment, as well as those specific to infants' wear, were significantly related to satisfaction with product quality. Satisfaction with the shopping experience was also found to affect product satisfaction. These results have tangible implications for apparel marketers.     

Systematic Distortion:

Most marketers of food products feel that they know their target market in terms of how customers evaluate their product. Unfortunately, marketers may not know as much as they think the do! For some product groups, consumers may evaluate products and their characteristics differently from what is expected. Consumers may actually distort or bias their evaluation of food products in the marketplace. This article identifies a problem that may be costing marketers of food products thousands or even millions of dollars a year without their knowing it. The results of this study suggest that consumers may distort their evaluation of cereal products on the basis of beliefs about how certain product attributes should go together. Important implications and recommendations are discussed to aid marketers of food products address what is referred to as "systematic distortion."     

The Perfect Fit: The Moderating Role of Selling Cues on Hedonic and Utilitarian Product Types

With the need among retailers to create effective promotional campaigns, scarcity, and popularity cues are increasingly used. Drawing from regulatory focus and popularity versus scarcity cues literature, this research explores the impact of popularity versus scarcity cues and product types on consumer perceptions of risk, product uniqueness, and purchase intentions. Results from three studies provide primary insights: (1) A utilitarian product aligns with prevention goals and hence the popularity cue will enhance consumers’ purchase intentions, and (2) a hedonic product aligns with promotion goals and hence the scarcity cue will enhance consumers’ purchase intentions. Further, we theorize that perceived risk and perceived product uniqueness will act as psychological mechanisms. We discuss theoretical contributions and strategic insights for retailers and marketers that the findings indicate.     

Energy efficient household appliances in emerging markets: the influence of consumers' values and knowledge on their attitudes and purchase behaviour

This research integrates both motivational and cognitive approaches to better understand consumers' purchase behaviour of energy efficient household appliances in emerging markets. A unique values, knowledge, attitudes and behaviour model was developed, and then validated by obtaining data from Vietnamese consumers which yielded 682 usable responses. The findings confirm that consumers with stronger adherence to egoistic values are more likely to develop negative attitudes towards environmental protection, and they tend to formulate positive attitudes towards individual inconvenience associated with the purchase of energy efficient appliances. In contrast, biospheric and altruistic values facilitate consumers' purchase behaviour by enhancing their attitudes towards environmental protection, and by also reducing their attitudes in relation to individual inconvenience. Interestingly, consumers with high knowledge about energy efficient appliances tend to believe that the purchase of such products is important for environmental protection, and they are likely to negate the perception of inconvenience associated with the purchase. Attitudes were found to be significant determinants of both purchase intention and behaviour. The implications for policymakers, marketers and other stakeholders are discussed and future research directions presented.     

The impact of product knowledge on consumer product memory and evaluation in the competitive ad context: The item‐specific‐relational perspective

Research evidence to date suggests that the combined presence of item‐specific and relational processing is necessary to induce higher memory performance of the target ad and proper evaluation of the target brand. This elaborative processing, however, requires cognitive capacity. In this paper, an item‐specific‐relational processing framework was employed to explain the roles of consumer product knowledge in the competitive and non‐competitive ad contexts. Findings from an experimental study suggest that high‐ and low‐knowledge consumers differed in product memory and evaluation in competitive and non‐competitive ad contexts. Such differences could be explained by consumers' engaging in item‐specific and/or relational processing depending on whether target brand information was presented with or without information on competing brands. It appears that competitive ad context would benefit low‐knowledge consumers by serving as a reference. In contrast, high‐knowledge consumers did not seem to be affected by ad context. Both theoretical and managerial implications are discussed. © 2011 Wiley Periodicals, Inc.     

How a “China-made” label influences Chinese Youth's product evaluation: The priming effect of patriotic and nationalistic news

This study is to verify whether and how a “China-made” label can influence online consumers' product evaluation as adding labels to highlight products' attributes has become an acquainted measure online by e-tailers/firms to attract online consumers' attentions. For this purpose, we conduct a 2 (label of “China-made” vs. no label) x 3 (patriotism priming vs. nationalism priming vs. no priming) between-subject factorial design to verify hypotheses. The results reveal that when consumers' nationalism is primed, the label significantly enhances the product evaluation by increasing the perceived social value of the product. Priming consumers’ patriotism, on the other hand, does not play a moderating role for this effect. A follow-up study confirms such effects for both low involvement and high involvement products. Therefore, e-tailers/firms that own China-made brands/products are advised to signal the “Chinese identity” of their products to online consumers under the current circumstance when nationalism and domestic brands are rising in China. The results also indicate that although products produced in a developing country are marked with a negative country of origin effect, marketers can turn it into a strength in marketing in certain conditions.     

How close do we feel to virtual product to make a purchase decision? Impact of perceived proximity to virtual product and temporal purchase intention

This study, utilizing construal level theory, aims to understand the underlying effect of perceived proximity to a virtual product on perceived purchase intention in the near future through perceived measurement feedback and perceived generality. This research examines a lab experiment to test six hypotheses. Results indicate that perceived proximity to virtual products enhances perceived measurement feedback and, thereby, perceived generality. In addition, perceived generality fully mediates the effect of perceived measurement feedback on perceived purchase intention in the near future when consumers interact with non-augmented reality applications. In contrast, perceived measurement feedback directly influences perceived purchase intention in the near future in AR applications. Furthermore, the absence of product in consumers’ consideration set dilutes the effect of perceived generality on perceived purchase intention in the near future when consumers interact with non-augmented reality application. This study suggests several managerial implications for AR developers and online retail managers.     

Staging luxury experiences for understanding sustainable fashion consumption: A balance theory application

Increasingly, sustainable fashion products consumption (SFPC) receives attention from both academic scholars and practitioners. While fashion consumers profess concerns about sustainability issues, the extant literature demonstrates a gap between such concerns and actual consumption decisions and behaviors. This study illustrates how marketers can encourage contemporary consumers to become strongly oriented toward sustainable fashion product consumption (SFPC). Heider's balance theory and consumer luxury brand experiences explain and reveal how a state of psychological imbalance causes the attitude–behavior gap between sustainable fashion and SFPC behaviors. This report includes new propositions explaining SFPC that receive support via focus group interviews and direct observations and post-behavior interviews of staged shopping trips— each participant was given money (approx. USD $180) to spend in the two eco-fashion stores. Developing and staging memorable consumer-centered experiences that orient consumers toward SFPC encourages the consumers achieving desired balance states.     

The Moderating Influence of Country of Origin Information Seeking on Homophily and Product Satisfaction

ABSTRACT

The purpose of the research was to investigate when consumers concurrently select a range of retail products online, what percentage of products need country of origin (COO) identification. Moreover, will COO information seeking positively moderate the relationship between homophily and product satisfaction. Participants were recruited through an online survey platform (MTurk). The results appear to be the first to quantify the number of retail products within a basket that need some form of country of origin (COO) identification. Electronic word of mouth (eWOM, e-reviews) has become an important factor in the purchasing process for consumers. When COO information is unavailable, consumers will search online reviews to determine the COO of products. When reading the e-reviews, consumers will also evaluate the reviewer and the similarities they share. If they are not similar (low in homophily) their satisfaction with the product is low. By contrast, when homophily is high, product satisfaction is high. Specifically, as homophily increases, an individuals' need for COO information seeking has a positive moderating effect on their perceived product satisfaction. Online retailers promoting their products could benefit from sales increases due to their ability to provide COO information at a low cost, which in turn, provides ease, peace of mind and purchase satisfaction for consumers.     

How U.S. consumers view in-store promotions

Most sales promotion analysis, either at the external-to-the-store or in-store level, has been conducted based on what marketers have done and how consumers have responded in specific retail situations and for specific promotional techniques. Most studies, therefore are reported as, point-in-time and point-of-place specific, historical, after-the-fact results and imply a consumer preference for the measured activity. This paper provides a holistic view of how U.S. consumers regard all forms of promotion, both external-to-the-store in the form of 31 media alternatives and 23 in-store techniques across thirteen broad product categories. Data comes from twice a year online studies of representative groups of U.S. consumers, conducted since 2002. Consumers report on which in-store activities most influence their purchase decisions. From that, predictive models of consumer response to alternative promotional combinations are developed using CHAID analysis. This predictive approach is superior to traditional after-the-fact measures.     

Consumers' and retailers' practices and attitudes towards energy-efficient clothing

The purpose of this study was to compare the extent to which consumers and retailers consider energy efficiency in evaluating and selecting indoor sportswear. Little research has been conducted in which retail buyers are subjects; no published research has focused on a comparison of consumers and merchants in regard to their attitudes towards a specific product. The value of such research lies in determining whether a particular consumer need is being met. The results of the present study revealed that retail buyers were less concerned about energy-efficient clothing than were consumers. Significant differences were found between the two groups for four of the nine variables studied. In all cases, consumers gave greater consideration to the energy efficiency of indoor sportswear than retail buyers believed. Further investigation of differences in consumers' and retailers' attitudes and practices is needed.     

On manufacturers complementing the traditional retail channel with a direct online channel

With the explosion of the Internet and the reach that it affords, many manufacturers have complemented their existing retail channels with an online channel, which allows them to sell directly to their consumers. Interestingly, there is a significant variation within product categories in manufacturer's use of the Internet as a direct distribution channel. The main objective of this study is to examine the strategic forces that may influence the manufacturer's decision to complement the retail channel with a direct online channel. In particular, we are interested in answering the following questions:

1. Why is it that in some markets only a few firms find it optimal to complement their retail channels with a direct Internet channel while other firms do not?
2. What strategic role (if any), does the direct Internet channel serve and how do market characteristics impact this role?

To address these issues we develop a model with a single strategic manufacturer serving a market through a single strategic retailer. In addition to the focal manufacturer's product the retailer carries products of competing manufacturers. Consumers in this market are one of two types. They are either brand loyal or store loyal. The retailer sets the retail price and the level of retail support, which impact the demand for the manufacturer's product. The retailer's decisions in turn depend on the wholesale price as well as the Internet price of the product if the manufacturer decides to complement the retail channel with an online channel. Our analysis reveals that the optimality of complementing the retail channel with an online channel and the role served by the latter depends critically upon the level of support that the retailer allocates to the manufacturer's product in the absence of the online channel. The level of support allocated by the retailer, in the absence of the online channel, depends upon the retail margins on the manufacturer's product relative to that on rival products in the product category. When the size of the brand loyal segment is small relative to the size of the store loyal segment then in the absence of the online channel, the manufacturer can lower wholesale price and enhance retail support, especially when the retail margins on the rival products are low. In contrast, when the size of the loyal segment is large and the retail margins on rival products are high the manufacturer will find it more profitable to charge a high wholesale price even if that induces the retailer to extend low levels of support. If the manufacturer decides to complement the retail channel with an online channel, some consumers who would have purchased from the retailer might prefer to purchase online. Our analysis reveals that when consumers' sensitivity to price differences across the competing channels exceeds a certain threshold it is not optimal for the manufacturer to complement the retail channel with an online channel. However, this price sensitivity threshold itself depends upon product/market characteristics, suggesting that manufacturers seeking to complement their retail channels with an online channel should look beyond the nature of threat the online channel poses to the retail channel in devising their optimal distribution strategies. When the retail margins on rival products are sufficiently small, complementing the retail channel with an online channel when optimal allows the manufacturer to price discriminate and enhance profits. In contrast when retail margins on rival products are sufficiently high, complementing the retail channel with an online channel serves to enhance retail support. We also identify market conditions under which profits of both the manufacturer and the retailer are greater with the online channel than that without it. This is particularly interesting since the online channel competes with the retail channel.