The effect of distribution channel diversification of foreign luxury fashion brands on consumers’ brand value and loyalty in the Korean market

The purpose of this research is to examine South Korean consumers’ brand value and brand loyalty toward foreign luxury fashion brands and current distribution channels for those brands (i.e., Department stores/Specialty stores, Factory outlet, Internet retailing, TV home shopping). Furthermore, this research examines the impact of channel diversification on consumers’ brand value and brand loyalty toward foreign luxury fashion brands. This study employed a quantitative research method. Factor analysis, ANOVA, Duncan test, and multiple regression analysis were employed to test the hypotheses. When testing brand values for each channel diversification case, participants evaluated brand value differently depending on the type of distribution channel. Participants did not show significantly different brand loyalty depending on distribution diversification cases. When the influence of brand value on brand loyalty was tested, different brand values affected brand loyalty depending on the type of distribution channel. Also, this research could suggest possible distribution channel options for foreign luxury brands to be successful in the Korean market and values they need to put an importance depending on the retail types. In addition, foreign luxury brands could apply the results of this study to their own markets.     

Do green packages lead to misperceptions? The influence of package colors on consumers’ perceptions of brands with environmental claims

Consumers need accurate information about brands’ environmental impacts to guide their purchase decisions. Researchers have studied consumers’ perceptions of green products and marketers’ environmental claims. Policy makers provide guidelines to minimize deceptiveness of environmental claims. Yet, little attention has been paid to what contextual cues can influence consumers’ judgments of environmental claims and green products. Drawing on conceptual fluency theory, the current research proposes that a color that matches the content of a message makes the information easier to process, thereby increasing the appeal of the message. The authors demonstrate that using the color green on a product’s package can enhance consumers’ perceptions of the brand’s environmental impact. Ironically, this positive effect of green can also lead to consumers’ misperceptions of the brand’s environmental impact if green is used for brands that are not environmentally superior. Implications and suggestions for policy makers, marketers, and consumers are provided.     

How competent are consumers? The case of the energy sector in France

This paper discussed the notion of value co‐creation and the concept of customer competence as suggested by this notion. This led us to consider the competent customer as a social construction related to managerial representations. In order to examine this issue, a longitudinal exploratory research based on participant observation and in‐depth interviews with employees of a French energy supplier was conducted to explore whether customers are perceived as competent or incompetent market actors. The data analysis revealed four categories illustrating customers' profiles coping with the new situation of the ‘Utility X’ group in the energy sector. ‘Utility X’ employees define their customers according to four profiles: myopic, ignorant, uncreative and organizer of company resources. Even if the marketing studies that share the Service‐Dominant Logic point‐of‐view suggest that the customer would be competent at all times, our findings showed that customer competencies are in fact socially constructed and emerge partially from managerial representations. Therefore, the adoption by companies of a marketing philosophy (‘market with’ philosophy), in which the customer and supply chain partners are collaborators in the entire marketing process, seems only possible if they recognize customers' competencies and identify situations when customers do not activate their competencies or do not have the resources that enable them to develop their competencies.     

Examining the influence of cultural and ethical ideology on consumers’ perceptions about the ethics of online retailers and its effects on their loyalty

The main purpose of this study was to develop and empirically test an integrated model that examines the antecedents and outcomes of consumers perceptions regarding online retailing ethics. A quantitative approach was utilised and the data were collected from 797 consumers. We used AMOS 22.0 for assessing the associations between the latent variables. The results of the analyses revealed that uncertainty avoidance and power distance are a key driver of idealism, while masculinity and individualism are a key predictor of egoism. Idealism was negatively related to consumers perceptions about e-retailing ethics, while egoism had a positive effect. Finally, customers perceptions about e-retailing ethics was positively related to customers loyalty. Implications for practitioners and academics were discussed.     

Examining the role of store design on consumers’ cross-sectional perceptions of retail brand loyalty

This paper compares new and established store design prototypes of the same retailer to examine the role of consumers’ cross-sectional perceptions of retail brand loyalty. In-store surveys were administered to capture consumers’ store-level perceptions towards a new store prototype and an older established prototype of the same fast fashion retailer. The data was subjected to multi-group analyzes with structural equations modeling. The findings suggest that store novelty and complexity promote both store design pleasure and retail brand loyalty outcomes. The different store designs do not, however, account for differences in brand loyalty perceptions at the overall retailer level when multi-group comparisons of both store designs are made. Consumers of newer store designs are found to possess a heightened sensitivity to price perceptions. Managerial implications of the effects of store novelty and complexity on retail brand loyalty are also presented.     

Are two brands better than one? Investigating the effects of co-branding in advertising on audience memory

Co-branded advertising, where advertisements feature two partnered brands from different categories, should ideally benefit both brands. We test this assertion by studying the effect of featuring a second brand in advertisements on ad and brand name memorability, and the role of category context on which brand is recalled. Our test covers online display advertisements for consumer-packaged brands paired with charity and retailer brands in three markets (USA, UK, and Australia). Independent sample comparisons across 54 brand pairs show that advertising two brands has a neutral effect on ad memorability and negative effect on brand memorability. Furthermore, the advertisement’s category context determines which of the brands is recalled. Our findings support a competitive interference theory of dual-brand processing, whereby the two brands compete for attention resources. The results have implications for the return on investment from advertising expenditure, which will vary substantively depending on whether the costs of advertising are shared or borne by one brand in the pair.     

Suckers in the morning,skeptics in the evening: Time-of-Day effects on consumers’ vigilance against manipulation

Persuasion knowledge is defined as a consumer’s vigilance against manipulative persuasion. In this paper, we explore the relationship between persuasion knowledge and consumer’s diurnal preference. It is proposed that evening-type consumers display enhanced persuasion knowledge relative to morning types. Also, heightened persuasion knowledge is exhibited during their respective optimal times of day for both morning-type and evening-type consumers. We propose cognitive resource availability as the key underlying mechanism for this relationship. Finally, we also demonstrate an analogous relationship between consumer skepticism and diurnal preferences. Over three studies we find supportive evidence for our claims.     

Negative effects of ambient scents on consumers’ skepticism about retailer’s motives

Ambient odors are used to enhance consumer’s emotional and attitudinal responses so that he behaves in a way that is profitable for the retailer. However, the literature reveals that consumer’s knowledge about such marketing tactics may make that proposition fail. This article suggests that environmental characteristics can influence consumer skepticism and in turn emotional and attitudinal responses. We begin by reviewing the literature on (1) ambient odors and (2) skepticism to emphasize the potential influence of store environment on consumer skepticism. Then, we turn to a scenario-based experiment designed to shed light on the underlying process.     

Research on the influencing factors of consumers’ green purchase behavior in the post-pandemic era

The severe impact of the COVID-19 pandemic on the world has caused consumers to think about environmental issues. Although green products are very important to environmental sustainability, the factors that influence consumers' purchase behavior of green products is unclear. This study aims to explore the impact mechanism of social media marketing on consumers' green product purchase behavior in the post-pandemic era. Based on the theory of planned behavior (TPB), this study constructs an extended TPB model to understand the influencing factors of Chinese consumers' green product purchase behavior in the post-pandemic era. The empirical results of 489 questionnaires show that social media marketing, product knowledge and crisis awareness have a direct or indirect positive influence on purchase intentions. Perceived behavioral control and intentions have positive effects on behavior. The attribution of responsibility facilitates the relationship between intentions and behaviors. The results have important implications for enterprises’ sustainability strategies and provide a framework for investigating green buying behaviors in Chinese culture in the post-pandemic era.     

Correction to: Are two brands better than one? Investigating the effects of co-branding in advertising on audience memory

Marketing Letters - The article Are two brands better than one? Investigating the effects of co-branding in advertising on audience memory, written by Cathy Nguyen, Jenni Romaniuk, Margaret...     

The effects of tolerance of negativity on consumers’ responses to comparative attack advertising

This paper focuses on ‘tolerance of negativity’ (TON) as a means of understanding and predicting consumers’ responses to negative marketing communications. The results of three empirical studies suggest that consumers who are low (as opposed to high) in TON (when measured and/or primed) find negatively framed comparative ads to be less fair, less useful, and have less favorable attitudes toward the ad and sponsor brand. Importantly, cognitive elaboration is shown to moderate these effects. Specifically, one’s TON is found to be more impactful when individuals are engaged with an ad (i.e. when cognitive elaboration is greater) as opposed to when cognitive elaboration is lower. Interestingly, TON’s moderating influence was not observed in any of the studies when attitudes toward the compared-to brand were the dependent variable.     

Visual merchandising of pastries in foodscapes: The influence of plate colours on consumers’ flavour expectations and perceptions

The aim of our research is to find out how pastries should be visually merchandised in retail environments most effectively. In particular, we want to answer the question whether the colour of the surface (black vs. white) against which pastries are presented influences consumers’ expectations (sensory and hedonic), i.e., before tasting (stage 1) and perceptions (sensory and hedonic), i.e., after tasting (stage 2). In addition, we seek to detect any differences in sensory and hedonic evaluations as well as purchase intentions between stage 1 and stage 2.For this purpose, we conducted two studies on a special type of pastries, i.e., macarons: first, based on our observational research, we selected the most popular macaron flavours (colours): pistachio (green), raspberry (pink), coffee (light brown), chocolate (dark brown), lemon (yellow), and vanilla (off-white); second, we carried out a between-participants experiment among 432 participants.Our results reveal that customers seem to show a high degree of identification of the actual flavour in stage 1, with some doubts related to the colours light brown, yellow, and dark brown. Moreover, the assessment of the sensory attributes of crunchiness, creaminess, and sweetness, as well as the hedonic value and purchase intent appear to be higher in stage 2 than in stage 1. Furthermore, no main effects of the plate colour on the evaluations of greasiness, crunchiness, creaminess, and sweetness, as well as the hedonic value and purchase intent in stage 1 and stage 2 could be found. However, while the expectation of greasiness for the macaron colours green, pink, light brown, lemon, and off-white is higher when served on a black plate, for the colour dark brown, the expectation of greasiness is higher when served on a white plate. Finally, managerial implications for retailers, like, bakeries, pastry shops, restaurants, or caterers, are provided, the limitations of our research are mentioned, and avenues for further research are given.     

Cross-cultural examination of the effects of promotional framing on consumers’ responses: A comparison of China and Pakistan

Although extensive studies have focused on the impact of different types of sales promotions on consumers’ responses, few studies examined the effects of online sales promotional framing on consumers’ responses from cross-cultural perspective. Therefore, this study explored how cross-cultural differences moderated the effects of buy one get one free and buy two get fifty percent off promotion on consumer responses across China (lower uncertainty avoidance) and Pakistan (higher uncertainty avoidance). Based on the promotional framing effect theory, an empirical investigation across these two countries revealed that people with higher uncertainty avoidance (vs. lower uncertainty avoidance) prefer buy one get one free to buy two get fifty percent off promotion. Buy one get one free will lead to higher consumer perceived quality and purchase intention than buy two get fifty percent off promotion in both Pakistan and China, while the impact of buy one get one free and buy two get fifty percent off on perceived risk, perceived quality, perceived value and purchase intention are significantly larger in Pakistan than in China. In addition, the study verified the negative perceived risk-perceived value link, positive perceived quality-perceived value link and positive perceived value-purchase intention link from cross-cultural investigated data. The study provides new insights into the effects of online sales promotions on consumers’ responses considering cultural differences. Our findings have implications for multinational corporate managers to design appropriate online sales promotions strategies.     

The role of national institutions in the effects of consumers’ perceived customer orientation and firm innovativeness

Many multinational corporations force global customer orientation and firm innovativeness. However, little is known about how or why they benefit from perceived customer orientation and firm innovativeness in one country but not in another. The authors fill this gap by referring to information processing and institutional theories. They contribute to research by analyzing the roles of country development and dimensions of national culture in the direct and indirect effects of perceived customer orientation through firm innovativeness on consumer product purchase intention across 53 countries. The results of multilevel structural equation modeling show different explained variances of the institutions and varying moderations for the differently strong effects of perceived customer orientation and firm innovativeness. Institutional theory strongly complements behavioral theorizing. The findings have direct implications for managers interested in understanding how perceived customer orientation and firm innovativeness interact and attract consumers in different country contexts.     

Understanding consumers’ perceptions of competitive tiers—can perceived risk help?

A review is presented showing the increasing power of multiple grocery retailers from which an argument is developed questioning whether consumers perceive packaged grocery product fields in terms of brands versus own labels versus generics. Consumers’ perceptions of risk are reduced through information search and it is thought that the different search activities between the high and low risk perceivers may explain perceptions of the competitive structure of product fields. For six packaged grocery fields, separately, qualitative research was undertaken to elicit the dimensions consumers use to evaluate competing items. Data was then collected from 829 householders and was subsequently subjected to cluster analysis. Consumers’ perceptions of the competitive structure of product fields differed from marketers’ expectations and brands were always perceived as being distinct from retailer labels. The result did not appear to be influenced by consumers’ perceptions of risk. Reasons for the result are considered, and managerial implications explored.     

Technology and counterfeiting in the fashion industry: Friends or foes?

This article addresses the relationship between technology and counterfeiting in the fashion industry. Starting with an economic analysis of counterfeiting, I examine how new technologies encourage counterfeiters while at the same time provide important tools to combat it. The development of sophisticated technologies to obtain, process, and reproduce images and the extensive use of new digital channels for online sales have simplified both production and distribution of counterfeit products. Based on tagging and DNA analysis, as well as web-based monitoring systems, trace and track technologies allow rights holders to combat counterfeiting through effective control of the entire production and distribution chain. This article considers an innovative method of product monitoring based on latest-generation IT platforms, integrated with portable devices, that can easily and immediately verify product authenticity. The spread of these new technological systems is closely related to the role of a party that is glaringly absent in the battle against counterfeiting: the consumer. Indeed, new technologies are the driving element in a virtuous circle where the consumer becomes an essential instrument in the battle against counterfeiting, along with the other players involved: companies, public institutions, and civil society.