Have your cake and eat it too: how invoking post-purchase hyperopia mitigates impulse purchase regret

Marketing Letters - Impulse purchases are encouraged by retailers and can comprise a significant portion of a retailer’s sales. However, both consumers and researchers generally see impulse...     

Planned versus unplanned timing changes in payment and product receipt: Implications for sales promotion and services management strategy

Promotional tools and services management strategies are often intertwined with changes in the timing of payments for and receipt of products. A series of studies investigates how the timing of payments and the receipt of products impacts purchase intentions and consumer dollar valuations—e.g., how much extra customers would pay to receive a product more quickly. Using the “time and outcome valuation model” as a theoretical basis, the studies assess the impact of timing changes across four classes of phenomena: delaying the receipt of a good (DR), delaying the payment for a good (DP), advancing the receipt of a good (AR), and advancing the payment for a good (AP). Findings reveal that in unplanned timing changes, the hypothesized sequence for dollar valuations, DR > AP > DP > AR, is supported. However, in the planned timing changes, the sequence for purchase intentions reverses for AR and DR. Additionally, the study resolves the controversy in the literature over the gain/loss nature of the four classes of phenomena. The managerial and theoretical implications of these results are discussed for sales promotion and services management strategies. © 2010 Wiley Periodicals, Inc.     

Overcoming information overload in retail environments: Imagination and sales promotion in a wine context

Information overload is a common problem in retail environments. Reducing information in a retail environment is not always feasible or desirable given the plethora of products and extent of limitations on retailers in terms of merchandising and display decisions. Therefore, retailers need other ways of overcoming information overload than simply reducing the amount of information. However, extant research is unsettled with respect to arguments in favor of and against adverse effects of information overload. To enhance our understanding of these issues, the present research presents two studies that investigate the moderating role of consumer decision processing approaches in an information overload retail space. The findings reveal that the consumer imagination offers a more efficient processing route, circumventing the frustration associated with information overload and leading to enhanced consumer outcomes compared to the less efficient consideration route. Further, heuristic processing triggered by sales promotions in high information retail environments lead to piqued arousal and enhanced consumer imagination, ultimately bolstering consumer responses to the product. Implications, limitations, and future research directions are discussed.     

The roles of multiple channels in predicting website visits and purchases: Engagers versus closers

In today’s online environment, consumers and sellers interact through multiple channels such as email, search engines, banner ads, affiliate websites and comparison-shopping websites. In this paper, we investigate whether knowing the history of channels the consumer has used until a point of time is predictive of their future visit patterns and purchase conversions. We propose a model in which future visits and conversions are stochastically dependent on the channels a consumer used on their path up to a point. Salient features of our model are: (1) visits by consumers are allowed to be clustered, which enables separation of their visits into intra- and inter-session components, (2) interaction effects between channels where prior visits and conversions from channels impact future inter-session visits, intra-session visits and conversions through a latent variable reflecting the cumulative weighted inventory of prior visits, (3) each channel attracts inter-session and intra-session visits differently, (4) each channel has different association with conversion conditional on a customer’s arrival to the website through that channel, (5) each channel engages customers differently (i.e., keeps the customer alive for a next session or for a next visit within a session), (6) the channel from which there was an arrival in the previous session can have an enhanced ability to generate an arrival for the same channel in the current session (channel persistence), and (7) parsimonious specification for high dimensionality in a low-velocity, sparse-data environment. We estimate the model on easy-to-collect first-party data obtained from an online retailer selling a durable good and find that information on the identities of channels and incorporation of inter- and intra-session visits have significant predictive power for future visitation and conversion behavior. We find that some channels act as “closers” and others as “engagers”—consumers arriving through the former are more likely to make a purchase, while consumers arriving through the latter, even if they do not make a purchase, are more likely to visit again in the future or extend the current session. We also find that some channels engage customers more than others, and that there are interaction effects between the channels visited. Our estimates show that the effect of prior inventory of visits is different from the immediate prior visit, and that visit and purchase probabilities can increase or decrease based on the history of channels used. We discuss several managerial implications of the model including using the predictions of the model to aid in selecting customers for marketing actions and using the model to evaluate a policy change regarding the obscuring of channel information.     

Scarcity signaling in sales promotion: An evolutionary perspective of food choice and weight status

Obesity rates are increasing worldwide, with an alarming number of associated co-morbidities and deaths. Evolutionary psychology explains this development with an inherent preference for fatty and sweet foods. Recent evidence shows that consumers with a low socioeconomic status are more prone to being obese, but also that consumers with few resources respond more to scarcity signals. Based on this background, this paper investigates whether overweight individuals with a low income respond more to scarcity signaling in terms of sales promotions than others.To this end, a large-scale online survey was conducted across four food product categories in the setting of an online supermarket. Results show that overweight or obese individuals with low income levels responded more strongly to scarcity signaling. The findings inform researchers in terms of explaining different responses to sales promotions and support practitioners in aligning sales promotions to target group-specific behavior.     

Money use and purchases in families in which the wife works: a Turkish example

This study, which has been undertaken to find out the manner in which money is utilized and shopping is done in families in which the wife works, has revealed that in more than half of the families studied the spouses co-operate in financial planning. The study has also found that the nature of shopping determines the shopper in the family.     

Salaries and promotion opportunities in the English banking industry, 1890–1936: a rejoinder

The article is a rejoinder to Andrew J. Seltzer's article, published in Business History in August 2010, which critiqued an article published in May 2008 on the topic of clerical salaries in London, 1870–1914. It examines trends in salaries and promotions of branch clerks at the London, County and Westminster Bank and at the National Provincial Bank, and focuses on the London area for the period 1880–1913. It argues that salaries increased between 1880 and 1895 and then declined from 1895 to 1913. Adjusting for tenure and inflation, salaries were approximately at the same level in 1913 as they were in 1880. It also examines the relationship between tenure and salary, linking both to the rise of internal labour markets in Britain's large retail banks.     

Offering value and capturing surplus: A strategy for private label sales in a new customer loyalty building scenario

The competition between private label brand and national brands in the diaper category is investigated from the view of the private label brand manager. In this category, new customers routinely enter the category buying entry-level diaper sizes (for infants) and then progress to buy larger diaper sizes over time (as their child grows older). Thus, consumer comparisons between the private label brand and national brands are focused on single diaper sizes during any single purchase scenario. Because private label brands are known to suffer from low quality perceptions that often understate the true quality levels of private label brands, this paper advances a pricing strategy to optimize private label performance in the category. The private label brand should price significantly low for small diaper sizes (maintaining a sizeable price gap from national brand competitors). Then, in most cases, the private label brand should shrink the size of this price gap for large diaper size offerings. This strategy will successfully offer initial value to new customers, build private label brand quality perceptions and loyalty, and then capitalize on these gains through higher dollar sales in the late stages of the customer relationship. The price gap shrinking strategy is found to be generally effective, but high national brand competition and too high of an initial price gap diminish the effectiveness of the strategy.     

Ethics in MBA programs: The rhetoric,the reality,and a plan of action

Unethical behavior on the part of business corporations and their leaders has led many business executives and university administrators to call for the inclusion of ethics in MBA programs. This paper reviewed studies and commentary relating to the teaching of ethics in MBA programs in the United States. The results showed that ethics has not yet gained an integral place in the curricula of business schools. A plan of action for the systematic incorporation of ethics into the MBA curriculum was proposed based on the system model of training commonly used in the training field. In concluding, a question about the total responsibility of the business schools toward the promotion of ethical behavior on the part of their graduates was raised.     

Review of Honorable Business: A Framework for Business in a Just and Humane Society by James R. Otteson

Journal of Business Ethics -     

A measurement model of the dimensions and types of informal organizational control: An empirical test in a B2B sales context

Sales organizations are replete with informal forms of organizational control. Despite this, marketing and management literature has primarily focused on the theoretical development and empirical testing of formal, managerial forms of control. One reason research on informal controls has lagged is a lack of comprehensive measurement scales. Specifically, existing measures of the three principal types of informal controls—self, social, and cultural—do not capture the full dimensionality of the constructs (i.e., information, reward, and punishment aspects of informal controls). The authors take steps to remedy this situation by (1) outlining nine distinct dimensional types of informal control based on organizational control theory, (2) developing scales to measure the nine informal control constructs in a qualitative field study with 28 B2B salespeople, and (3) empirically validating the scales by establishing their psychometric properties and nomological validity using data collected from a diverse panel of 750 B2B salespeople.     

New entrants versus establishers in China and US electric vehicle marketplace: a comparative analysis

The article looks at the phenomenon of the new entrants surpassing the market establishers in China’s and the USA’s electric vehicle marketplace. Most of the current studies focus on the leading companies having first moves on early technology adoption. Based on the results from the expert interviews and literature review, we compared cases from both China and the USA. The study constructed and validated a framework for a theoretical model for the innovation drive, the technological mode and the business model to explain underlining driving factors and mechanisms where new entrants are taking the lead in the electric vehicle market. Suggestions for both new entrants and establishers are provided based on the established framework.     

Exchange rate versus inflation targeting: a theory of output fluctuations in traded and non-traded sectors

This paper develops a basic model for output fluctuations in traded and non-traded sectors under two alternative monetary policy regimes; exchange rate targeting (or monetary union) and inflation targeting. The conventional wisdom from one-sector models says that inflation targeting gives better output stabilization than exchange rate targeting when demand shocks occur, but the opposite when supply shocks occur. In a model with a traded and a non-traded sector, we show that the conventional wisdom holds for the non-traded sector. However, for the traded sector, we show that inflation targeting destabilizes output compared with exchange rate targeting when both supply and demand shocks occur. The only shocks where inflation targeting provides the better output stability for the traded sector are shocks to world market prices. The two-sector structure introduces new mechanisms that may turn around earlier results for aggregate production. For instance, a demand shock may induce higher aggregate output fluctuations with inflation targeting than with exchange rate targeting. Furthermore, a positive demand shock may prove to be contractionary under inflation targeting.     

Whistleblowing in a changing legal climate: is it time to revisit our approach to trust and loyalty at the workplace?

This article suggests that the introduction of employment protection rights for whistleblowers has implications for the way in which trust and loyalty should be viewed at the workplace. In particular, it is argued that the very existence of legislative provisions in the United Kingdom reinforces the notion that whistleblowing should not be regarded as either deviant or disloyal behaviour. Thus, the internal reporting of concerns can be seen as an act of trust and loyalty in drawing the employer's attention to wrongdoing. Equally, external whistleblowing may result from a worker's belief that he or she also has a loyalty to the wider society. Given that the interests of employees do not necessarily coincide with those of their employer and that whistleblowers sometimes suffer reprisals, the author concludes that it is inappropriate to impose a contractual duty to report concerns. Instead, employers should endeavour to promote a culture of openness and create confidence in the mechanisms they provide for whistleblowing.     

The effect of a similarity versus dissimilarity focus in positioning strategy: The moderating role of consumer familiarity and product category

Results of three studies show that the effectiveness of positioning strategies based on similarity and dissimilarity vis‐à‐vis other brands or with respect to the product category as a whole is moderated by the degree of familiarity of the consumer with the objects of comparison (Study 1) and by the degree of imageability and concreteness of the memory representation of the product category (Studies 2 and 3). Perceptual judgments appear to be more responsive to similarity and dissimilarity positioning either when consumers are more familiar or when product categories allow consumers to form clear, concrete memory representations. Study 3 shows that such effects are due to a shift in the relative proportion of common and distinctive features made salient under similarity and dissimilarity instructions. Methodological and practical implications are discussed. © 1999 John Wiley & Sons, Inc.