Multi-Group Latent Variable Models for Varying Numbers of Items and Factors with Cross-National and Longitudinal Applications

Varying sets of items and constructs are a problem frequently encountered in cross-national and longitudinal studies in marketing. We discuss the use of multi-group latent variable models in this situation and describe a method that can be used to handle unequal sets of items and constructs across groups in such models. A simulation study based on cross-national marketing data from Belgium and Great Britain revealed that accurate estimates of differences between latent means can be obtained with this procedure with as few as two common items, although a fairly large sample size is required to obtain small standard errors of the estimates of latent mean differences. A substantive example involving a confirmatory factor model as well as a structural model is also provided, using longitudinal data concerning the quality image of a food product in the Netherlands.     

Approaches to learning at work and workplace climate

Three studies are reported concerning employees' approaches to learning at work and their perceptions of the workplace environment. Based on prior research with university students, two questionnaires were devised, the Approaches to Work Questionnaire (AWQ) and the Workplace Climate Questionnaire (WCQ). In Studies 1 and 2, these questionnaires were administered to two different samples of employees, and the factor structure of the questionnaires was explored. In Study 3, the two data sets were combined, and a random half of it was used to develop reduced sets of items that addressed selected factors for each of the questionnaires. The other half of the data was used to test the scales developed. For the AWQ, three factors are proposed: deep, surface‐rational, and surface‐disorganised. The first of these is consistent with the student learning literature, but the other two represent a division of a unitary surface factor. The three components of the WCQ are good supervision, choice‐independence, and workload. Correlations between scales indicated that the deep approach is positively associated with good supervision and choice‐independence, whereas the surface‐disorganised approach is negatively associated with these two constructs and positively associated with workload. Surface‐rational is negatively, though less strongly associated with choice‐independence. Suggestions are presented for use of these instruments in future research and practice.     

Motives for purchase decision-making: combining attribution and functional approaches

The motivations which lead to consumer decisions have been given relatively little research attention, since motivations are difficult to quantify. The four part typology developed by Katz,¹ when combined with self-perceived attributions, provides a useful method of examining the motivational underpinnings of consumer-purchase decisions. This study involved an experimental design to evaluate self perceptions of the four functional motives—ego defensive, value expressive, knowledge and utilitarian. A sample of 105 undergraduate students attributed their use or purchase for each of 52 items to one of the four functional motives. Using these responses as self-perception attributions, two research questions were examined: (i) would the four part typology be useful in explaining self-perceptions of past behaviour? and (ii) would one function of the typology dominate these reports for each item? An across-subject analysis suggested the four part typology could be meaningfully employed within a self-perception context. However, one functional motive dominated attributions for only six of 52 items. Since motivations and consumer behaviour are clearly linked, this research offers a method of providing additional insight into that linkage. The paper concludes with further research possibilities that integrate the functional motive approach and self-perception attributions.     

Heart rate variability in marketing research: A systematic review and methodological perspectives

Heart rate variability is a promising physiological measurement that accesses psychophysiological variations in response to a marketing stimulus. While its application spans diverse fields, there is a limited understanding of the usability and interpretation of heart rate variability in marketing research. Therefore, this hybrid literature review provides an overview of the emerging use of heart rate variability in marketing research, along with essential methodological considerations. In this context, we blend marketing mix framework with stimulus-organism-response theory, segregating the use of heart rate variability in various marketing research contexts. We follow the preferred reporting items for systematic reviews and meta-analyses (PRISMA) framework to reflect on 33 records obtained from six databases. Our findings suggest that 42% of studies used heart rate variability to investigate promotion-related topics. Overall, heart rate variability is mostly used in combination with Galvanic skin response (48%). Further, 39% of studies used non-portable systems for data collection. Last, using the theory characteristics methodology (TCM) framework, we identified six research avenues: (1) affective, cognitive, and sensorial constructs; (2) personality, thinking style, and demographics; (3) product experience; (4) advertising and branding; (5) correlation with immersive technologies; and (6) triangulation with other neurophysiological tools.     

Efficient theory development and factor retention criteria: Abandon the ‘eigenvalue greater than one’ criterion

Other things being equal, a theory with fewer constructs is preferable over others. In exploratory factor analysis, a common method used in theory development, the most popular factor retention criterion used in marketing is the eigenvalue greater than one rule. Its use often results in over extraction, which leads to the development of less than parsimonious theories. Even the use of confirmatory factor analysis fails to detect the presence of these superfluous constructs. Although several more accurate criteria exist, they are not discussed in major marketing research texts, journals, and popular statistical software packages. In this paper, we appraise popular factor retention practices in marketing, demonstrate how they may lead to the development of inefficient theories, draw attention to a number of resources for choosing appropriate retention criteria, and develop an easy-to-use Web-based engine to effortlessly implement one such method, parallel analysis.     

Personalized digital marketing recommender engine

E-business leverages digital channels to scale its functions and services and operates by connecting and retaining customers using marketing initiatives. To increase the likelihood of a sale, the business must recommend additional items that the customers may be unaware of or may find appealing. Recommender Engine (RE) is considered to be the preferred solution in these cases for reasons that include delivering relevant items, hence improving cart value, and boosting customer engagement. The paper describes a model for delivering real-time, personalised marketing information concerning the recommended items for online and offline customers, using a blend of selling strategies: up-selling, cross-selling, best-in-class-selling, needs-satisfaction-selling and consultative-selling. The model further defines the e-marketplace by clustering items, customers and unique selling proposition (USP), and then gathering, storing, and processing transactional data, and displaying personalised marketing information to support the customer in their decision-making process, even when purchasing from large item spaces. An experimental study using a quantitative research methodology was conducted in a mid-size healthcare retailer, based out of India, to determine the tangible benefits. The model was tested with 100 online customers and, with the adoption of the proposed methodology, the results indicated growth in average monthly revenue (33.49%), Average Order Value (AOV) (32.79%) and Items per Order (IPO) (1.93%).     

Computer-based adaptive testing in 1991

Tests, questionnaires, and inventories can advantageously be administered by computer. The use of item response theory (IRT) is described, and its application to making the instruments adaptive. Practical aspects of adaptive tests are discussed, including timing and safeguarding. Adjustments can be made for mastery tests. More elaborate partial-credit models are needed for items with more than two response alternatives.     

The effect of item reduction on assortment satisfaction—A consideration of the category of red wine in a controlled retail setting

This study aims to investigate the effect of item reduction on assortment satisfaction within the red wine category. The study conducted an online experiment using a simulated online wine store. Lowest selling wines were removed after the first buying phase, and the respondents repeated the browsing process in the reduced assortment. A questionnaire measured the shift in perceptions. The results show that assortment perceptions can be maintained in the face of item reduction. There is also a strong association between category familiarity and assortment satisfaction, with differing levels of assortment satisfaction between high and low category familiarity groups. The presence of a favourite item also plays a role in maintaining assortment perceptions. The results suggest that retail managers can reduce assortments by removing low selling items while not affecting customers' assortment perceptions. Furthermore item reduction can be used to increase consumers' satisfaction if they are unfamiliar with the product category. This particular study is limited in the sense that the results were obtained exclusively in an online environment. Future studies may therefore be useful in validating these results in brick and mortar wine outlets.     

The interrelationships between relationship marketing constructs and customer engagement dimensions

The study examines the interrelationships between selected relationship marketing constructs, namely customer satisfaction, trust, perceived value and commitment, and their effect on the dimensions underlying customer engagement. The study is quantitative and an explanatory research design was followed. A total of 489 self-administered questionnaires were collected from customers of short-term insurance providers on the basis of convenience. Customer satisfaction impacts positively on affective commitment and trust. Customer value also impacts positively on affective commitment and trust, while trust impacts positively on affective commitment. Affective commitment in turn impacts positively on the four customer engagement dimensions: interaction, attention, absorption and affection. The research findings offer an initial understanding of the interrelationships between key relationship marketing constructs and their ultimate effect on various customer engagement dimensions. These matters have received little attention in marketing research, and knowledge of the proposed relationships may lead to further research on this topic.     

A new methodology for aggregating tables: Summarizing journal quality data

Often successive studies are conducted to rank items across time or across different raters. For instance, different consumers may be asked to rank products, or banks may be ranked at different points of time based on their lending practices. In such cases, a simple model would suggest arriving at a summary set of rankings by averaging across the sets. However, when the rank of an item is missing in some of the sets, a simple mean can produce a biased result. This is because the absence of an item in a particular set may be important information that is being ignored.MacMillan conducted a series of studies to identify a forum for publishing business policy research, the most recent of which appeared in this journal. The design of the study involved two stages of selection: first, the journals were to be voted into a set, and second, they were to be ranked by a panel of scholars. This procedure resulted in some of the journals not appearing in every study. Thus, taking a simple average across the studies would result in misleading information, because the absence of a journal in a particular study is information that is important (because the panel chose not to vote it into consideration) but lost in averaging.One of the objectives of the MacMillan studies was to provide scholars with information about the importance of the journal as a publication outlet. Thus, it is important to be able to arrive at a summary set of rankings to provide cumulative information. To achieve this, a left-censored model was developed. Assuming that the ranks follow a normal distribution, with unknown mean and the same variance, maximum likelihood estimates of the means were calculated.. The summary set of ranks were then calculated using these estimates. The summary ranks were compared with those arrived at from an independent estimate of journal quality and found to have validity.Our model helps enhance the value of the MacMillan studies by providing cumulative information on the journals and facilitating their comparison with other studies. We see the applicability of the model in other areas too. Known by the generic term of league tables, such sets of data are generated in marketing research, educational studies, etc. Thus, the model is an important contribution to the tool kit of empirical research.     

Modeling the determinants of consumers' attitudes toward online group buying: Do risks and trusts matters?

The aim of this research is to investigate the determinants of consumers' attitude towards online group buying (OGB). Furthermore, this study compares male and female shoppers based on their purchasing behavior in OGB. Partial Least Square-Structural Equation Modeling (PLS-SEM) approach supported by Smart-PLS 2.0 was used for data analysis as it avoids biases in the parameter estimation in regression analysis. A PLS-SEM approach revealed that website trustworthiness was the strongest predictor of consumers’ attitude towards OGB. Consumers noted that the site of initiator appeals to be more trustworthy than other sites and delivers every promise made. Indeed, they felt trusted for their group buying on the Internet when clear legal privacy statements including guarantees are available on the websites. They were assured that initiator's protective measures for online payment are secured. The reliability and validity of the measurement items used and collection of data via survey questionnaires clearly confirmed the robustness of the research methodology applied which led to the creation of reliable and valid discoveries. Online retail managers should improve their transaction security mechanisms and Internet technology to dwindle consumers' perceived risks in terms of financial, product and time risks, strengthen their trusts, and grow online trading confidence when executing OGB. With sufficient knowledge of network group-buying platform, customers would develop more trust to the security of online group-buying platform which lessen the risk cost thereafter. The viable quantitative empirical results transport new and substantial ideas into the marketing model as it systematically and precisely investigates the significant factors and adds to the emergent works around consumer OGB behavior.     

The Relationship Marketing View of the Customer and the Service Dominant Logic Perspective

Based on the concept of service-dominant logic as the emerging organizing logic of marketing that would replace the traditional goods-dominant view, Vargo and Lusch (2004) originally proposed that among several other approaches to research and marketing practice that had emerged, relationship marketing would be subsumed by this broader view. More recently, however, Vargo (2009) suggested that because relationship marketing focuses on increasing the series of on-going transactions with a customer, coupled with the goal of enhancing their long-term patronage, that relationship marketing extends the goods-dominant perspective, rather than transcending into the service-dominant logic. This article counters that the relationship marketing view of the customer has already transcended the goods-dominant view to the to service-dominant view based on the way that customers are brought into the relationship as active participants in the service creation, and act as “co-producers” of value. To address the apparent goods-dominant approach in two widely used relationship marketing practices and measures, customer relationship management and customer lifetime value, this article proposes that these tools can be used from a goods-dominant view, but they can also serve as essential steps towards the practice of relationship marketing from the service-dominant logic.     

Agent-based modeling in marketing: Guidelines for rigor

Agent-based modeling can illuminate how complex marketing phenomena emerge from simple decision rules. Marketing phenomena that are too complex for conventional analytical or empirical approaches can often be modeled using this approach. Agent-based modeling investigates aggregate phenomena by simulating the behavior of individual “agents,” such as consumers or organizations. Some useful examples of agent-based modeling have been published in marketing journals, but widespread acceptance of the agent-based modeling method and publication of this method in the highest-level marketing journals have been slowed by the lack of widely accepted standards of how to do agent-based modeling rigorously. We address this need by proposing guidelines for rigorous agent-based modeling. We demonstrate these guidelines, and the value of agent-based modeling for marketing research, through the use of an example. We use an agent-based modeling approach to replicate the Bass model of the diffusion of innovations, illustrating the use of the proposed guidelines to ensure the rigor of the analysis. We also show how extensions of the Bass model that would be difficult to carry out using traditional marketing research techniques are possible to implement using a rigorous agent-based approach.     

Opinion leadership vs. para-social relationship: Key factors in influencer marketing

The literature on influencer marketing has identified opinion leadership of influencers and parasocial relationship with influencers as two focal constructs affecting followers' purchase intention; yet they are only studied in isolation. This research aims to provide a comprehensive understanding of the effects of the two key constructs by combining and comparing them in a model with the moderators of post characteristics, namely post type and correspondent inference. Empirical results from 409 online followers of two Instagram accounts confirm the complementary effects of opinion leadership and parasocial relationship in influencer marketing and reveal the more prominent role of parasocial relationship over opinion leadership in affecting followers’ purchase intention. These effects are moderated by post characteristics. Storytelling posts intensify both effects. Correspondent inference enhances the effect of parasocial relationship, but not that of opinion leadership. These findings point to the importance of the social aspect of influencer marketing and inform the influencer marketing research and practice on “who says what” for improving communication effectiveness.     

The influence of non-anonymity deriving from feedback of research results on marketing professionals' research ethics judgements

The study examines, in the context of Crawford's (1970) study items, the influence of non-anonymity deriving from feedback of research results on marketing professionals' research ethics judgements, particularly that of response patterns (social desirability of responses) and item omissions. The results indicate that such non-anonymity does not significantly influence the social desirability of responses or item omissions — thus suggesting the appropriateness of its use to stimulate research ethics responses. Ishmael P. Akaah is Associate Professor of Marketing at Wayne State University. He received his M.B.A., M.A., and Ph.D. degrees from The Wharton School, University of Pennsylvania. His articles have appeared in the Journal of Marketing Research, Journal of Advertising Research, Journal of Health Care Marketing, Journal of Business Research, International Marketing Review, Journal of Global Marketing, Journal of Business Logistics, Journal of the Academy of Marketing Science, Journal of Macromarketing, Journal of Direct Marketing, Journal of Business Ethics, Proceedings of the American Marketing Association, and elsewhere. His current research interests include consumer decision processes, marketing ethics, and international marketing strategy.     

The Hotal and Catering Industry: Employment Prospects for the Eighties

Small business enterprises (SBEs) are considered to be the economic engine leading to worldwide economic development. They have attracted substantial consideration from researchers, academics and practitioners in the last three decades. Meanwhile, E-marketing (EM) has emerged as one of the key drivers in sustaining an organisation's competitive advantage. Yet, there is a lack of systematic empirical evidence regarding marketing activities that are affected by the use of EM in the (SBEs) context, and their consequent performance outcomes. Therefore, the purpose of this paper is to examine the impact of EM use by SBEs on marketing success and to develop and test a conceptual model of the antecedents and consequences of EM use by SBEs. The conceptual framework consists of the following constructs: EM budget, EM tools, pre-sales activities, after-sales activities, marketing performance and marketing effectiveness. Moreover, 12 hypotheses were developed and tested. Exploratory and confirmatory factor analyses were used to test the validity of measures, while structural equation modelling was used in hypotheses testing. Data were collected from 114 SBEs who had used different EM tools. Findings reveal that the use of EM tools has a positive influence on SBEs pre-sales activities, after-sales activities, marketing performance and marketing effectiveness. The results of this study have major implications for the marketing domain, as they stress the central role of marketing people in the successful implementation of EM in SBEs.     

‘Mum,can I play on the internet?’

Research about the role of parents in children’s consumption of online advertisements is scarce. Parents are viewed as having a responsibility to deter children from invasive marketing, yet with the rise of non-traditional marketing it is unclear whether they have the knowledge and skills necessary to undertake this role. The authors address this research gap and demonstrate that parents have limited understanding of the effectiveness of online advertising and this restricts their ability to protect their children from online marketing endeavours. Parents recognize online persuasive techniques only when they themselves have been exposed to them (e.g. banners, pop-up advertisements) and are often unable to appreciate more subtle marketing techniques in their persuasive capacity (e.g. advergames). In addition, they erroneously believe that children respond to online marketing the same way adults do. Finally, parents display naivety in their conviction that their children would never be taken in by marketers but, paradoxically, this complacency is only limited to online advertising.     

Flow Online: Lessons Learned and Future Prospects

Although the flow construct has been widely studied over the past decade in marketing and related fields, it has proven to be an elusive construct to measure and model. In this paper, we examine two of the most important themes in flow research in the last decade: the conceptualization and measurement of flow in online environments and the marketing outcomes of flow. In addition, while the unique characteristics of the Internet contributed to our belief that flow was an important construct for understanding consumer use of the Web in 1996, the environment of the Web itself has changed radically over the past decade. Thus, we consider the current context of the Internet, including virtual worlds, for the role and application of the flow construct, as well as important related constructs that will be useful for understanding compelling experiences in the contemporary online environment.     

Theoretical Applicability vs. Environmental Straitjacket:

This article is concerned with the application of the marketing audit, a commercially derived marketing tool, to a public sector non-profit organization. The paper reviews the literature extensively before turning to research findings derived from interviews with internal and external publics in the organizational environment. While findings indicate that a marketing audit would indeed be useful in underpinning marketing orientation, possibly as a prelude to marketing planning, they also show that organizational constraints may militate against adoption of marketing orientation. The article concludes by suggesting that marketing itself, as a generic paradigm, may not be an appropriate mechanism for organizations like ERS (Employment Rehabilitation Service). Rather ERS, and its private sector counterparts, may require the development of an entirely new discipline which may be more applicable than marketing.     

Hypotheses in Marketing Science: Literature Review and Publication Audit

We examined three approaches to research in marketing: exploratory hypotheses, dominant hypothesis, and competing hypotheses. Our review of empirical studies on scientific methodology suggests that the use of a single dominant hypothesis lacks objectivity relative to the use of exploratory and competing hypotheses approaches. We then conducted a publication audit of over 1,700 empirical papers in six leading marketing journals during 1984–1999. Of these, 74% used the dominant hypothesis approach, while 13% used multiple competing hypotheses, and 13% were exploratory. Competing hypotheses were more commonly used for studying methods (25%) than models (17%) and phenomena (7%). Changes in the approach to hypotheses since 1984 have been modest; there was a slight decrease in the percentage of competing hypotheses to 11%, which is explained primarily by an increasing proportion of papers on phenomena. Of the studies based on hypothesis testing, only 11% described the conditions under which the hypotheses would apply, and dominant hypotheses were below competing hypotheses in this regard. Marketing scientists differed substantially in their opinions about what types of studies should be published and what was published. On average, they did not think dominant hypotheses should be used as often as they were, and they underestimated their use.