First-mover advantage in an Internet-enabled market environment: conceptual framework and propositions

The competitive market environment has evolved from a physical market environment (PME) to an Internet-enabled market environment (IME) encompassing the physical and electronic marketplaces. At the same time, an increasing number of information products are available in both analog and digital forms. For information products in digital form, the IME also serves as a distribution channel. Such developments raise questions concerning the extent to which extant perspectives on first-mover advantage developed in the context of the PME hold in the IME, generally, and for information products specifically. We address this issue by developing a conceptual framework that focuses on selected sources of first-mover advantage delineated in the extant literature and advance propositions concerning sources that will have a greater or lower effect in the IME relative to the PME. A central message for first-movers in the IME that emerges from our conceptual analysis is to focus on achieving superior positions in resources that would enable them to get close to the customers fast, create switching costs, and retain them though ongoing investments in multi-faceted innovations. A second message that emerges for first-movers in the IME is they must take note of and make strategic adjustments for the potentially diminished significance of some traditional sources of first-mover advantage. These sources include spatial preemption, preemptive investment in capacity, and consumers’ choice behavior under conditions of uncertainty about product quality. We discuss the implications for further conceptual and empirical work in this area of increasing significance.

Situational and brand attitude models of consumer choice behavior

Three situational factors may directly affect consumers' brand intentions: the likelihood a given situation will occur for the consumer, the likelihood the product will be a part of the situation, and the likelihood that a given brand will be consumed in the situation. Models relating situational effects and consumer attitudes to brand intentions are discussed in this article. The literature on situational influences in consumer behavior is briefly reviewed.     

The consumer retail search process: A conceptual model and research agenda

Consumers are continually faced with the task of finding their way through a wide variety of retail environments. Surprisingly, very little research has addressed questions about how consumers physically search through retail settings. This article explores this important, yet little researched behavior. A conceptual model of the consumer’s retail search process (CRSP) and several research propositions are advanced. The CRSP model integrates research findings relevant to an understanding of consumer retail search behavior. Literature from such diverse fields of scientific inquiry as environmental psychology, human factors, architecture, and marketing are reviewed and serve as the theoretical basis of the CRSP model. He received his Ph.D. in marketing from Pennsylvania State University in 1991. His current research interest concerns how consumers interact with the physical environment and how this interaction influences subsequent behavior. His research has been published in theInternational Journal of Research in Marketing and theJournal of Marketing Education. His teaching and research interests focus on marketing and the environment and services marketing. He has carried out extensive research under sponsorship of federal, state, and local agencies on consumer behavior and urban travel and energy consumption. He received a B.S. degree in psychology from the University of Washington in 1966 and a Ph.D., also in psychology, from the University of North Carolina in 1972.     

Stratification in consumer behavior research: A re-examination

The role of the stratification concept in consumer behavior research is examined and compared to its sociological foundations. Misapplications of the concept in consumer research along with weaknesses in methodology, hypothesis formulation and criterion variable selection are identified and remedies suggested. Strengths and weaknesses of different stratification scales for consumer research are assessed and the key issues involved in stratification research are illustrated by reviewing the stream of stratification and consumer research in the area of banking behavior.     

Theory in consumer behavior: A status report

This article examines the attitudes of 40 opinion leaders in marketing toward theory in consumer behavior. These individuals exhibited favorable attitudes toward theory in marketing in general. More favorable perceptions of the value of the contributions of theory to consumer behavior existed than for promotion and channels of distribution. In comparison to eight other areas of marketing, the consumer behavior area was perceived as having made the greatest past contribution to marketing thought and the one most likely to make worthwhile future contributions. The sample believed that much future effort was needed in progressing toward a general theory of consumer behavior and that such effort would indeed be forthcoming.     

Market-oriented sustainability: a conceptual framework and propositions

Utilizing Resource-Advantage Theory as the underlying theoretical foundation and drawing on literature from a variety of disciplines, we develop a market-oriented sustainability framework. By incorporating sustainability into market orientation, the goal of strategic alignment of sustainability with marketing strategies is achieved to create a competitive advantage. Three constructs identified in the model are DNA, stakeholder involvement, and performance management. These three constructs are the drivers of sustainability. DNA is used as an extended metaphor to clarify and illustrate the workings of an organization and how sustainability may be implemented. This construct includes core ideology, dynamic capabilities, and societal engagement. The firm’s DNA is communicated to both internal and external stakeholders, and stakeholders’ concerns should be an influence on strategic marketing planning. Performance management is the third major construct in the model and includes corporate social performance and corporate financial performance metrics. Within the model explication, we offer propositions to support market-oriented sustainability research and provide directions for sustainability theory, research, and practice.     

Leisure and consumer behavior

The topic of consumer's leisure-time behavior is receiving increasing attention by marketers as Americans' leisure-related spending rapidly approaches the $200 billion level. This paper first examines the concept of “leisure” and then reviews various measurement issues. It concludes with several marketing implications and suggested issues needing further research.     

Stress and consumer behavior

Although stress research has received increased attention in the behavioral and social sciences, it has been virtually ignored by marketing researchers. This paper attempts to advance the stress perspective as a useful framework in consumer research. First, the author presents theoretical and conceptual foundations of stress research. Second, the author develops a general conceptual model of the causes and consequences of stress on the basis of theory and research. The model serves as a blueprint for presenting theory and research on stress, organizing and interpreting findings of consumer studies in the context of stress theory, and developing propositions for needed research. Finally, the author provides a research agenda to guide future studies in this area.     

The role of rationalization in consumer decision processes: A revisionist approach to consumer behavior

Consumer behavior theory, as it has largely evolved from economics with its rigid adherence to marginal utility theory, suggests that consumers are highly rational and that they basically strive to maximize utility or satisfaction by the careful rationing of resources. In this paper, the typical assumptions in consumer decision process models are reviewed and analyzed, the empirical evidence supporting the models of the rational consumer is challenged, the concept of rationalization is developed and the existential support for the concept is examined, the role and significance of alternative ego state on consumer decision processes are explained and finally, the rudiments of a revisionist approach to consumer behavior are advanced. An earlier draft of this paper entitled “Consumer Decision Processes: The Role and Influence of Rationalization” was presented at the annual meeting of The American Psychological Association Division 23 in 1977. The author was assisted in the preparation and development of this earlier draft by Dr. Chem Narayana. This assistance is herewith acknowledged.     

Customer loyalty: Toward an integrated conceptual framework

Customer loyalty is viewed as the strength of the relationship between an individual’s relative attitude and repeat patronage. The relationship is seen as mediated by social norms and situational factors. Cognitive, affective, and conative antecedents of relative attitude are identified as contributing to loyalty, along with motivational, perceptual, and behavioral consequences. Implications for research and for the management of loyalty are derived. His research interests include consumer decision making, information processing, and consumer loyalty. He has published in theJournal of Consumer Research andAdvances in Consumer Research. His research interests are consumer information processing, persuasion cues in advertising, and international marketing. His articles have appeared in theJournal of Consumer Research, Journal of Marketing Research, Journal of Consumer Psychology, andCanadian Journal of Administrative Sciences as well as in a number of conference proceedings.     

A conceptualization of the consumer behavior discipline

Consumer behavior, as a social science discipline, is analyzed from a developmental perspective. Seven developmental levels or stages are identified reflecting the growing role of consumer behavior study in applied social settings. A classification schema is also presented in an attempt to categorize consumer behavior research     

Social class and consumer behavior: A review for the 70's

Stratification of American society creates social classes— large groups of people sharing approximately the same life styles who are ranked according to social prestige. Class membership is determined on the basis of occupation, artifacts, association, and influence. Classes themselves are measured empirically through reputational, subjective, and objective techniques. The most popular models of American class structure provide for five or six distinct social strata. In recent years, however, divisions have become somewhat blurred by the spread of affluence and rapid social change. Social class appears to determine buying behavior for some products and services, and may be useful as a basis for market segmentation. School of Business, C. W. Post Center, L.I.U. Rapp & Collins A Division of Doyle, Dane Bernbach Advertising     

Serving customers and consumers effectively in the twenty-first century: A conceptual framework and overview

In this article, the authors first propose and discuss a conceptual framework pertaining to the theme of this special issue. This framework portrays “markets” as consisting of “customers” and “consumers,” specifies the distinction as well as linkages between the two, and outlines specific components of individual linkages between pairs of entities within markets. Using this framework as a backdrop, the article then provides an overview of the rest of the special issue by discussing how each of the remaining articles relate to the framework and to one another. A. Parasuraman (D.B.A., Indiana University) is a professor and holder of the James W. McLamore Chair in Marketing at the University of Miami. He teaches and does research in services marketing, service-quality measurement, and the role of technology in marketing to and serving customers. He has received many distinguished teaching and research awards, including, most recently, the “Career Contributions to the Services Discipline Award” given by the American Marketing Association's (AMA) SERVSIG. He has written numerous articles in journals such as theJournal of Marketing, theJournal of Marketing Research, theJournal of Retailing, andSloan Management Review. He is the author of a marketing research text and coauthor of two books on service quality and services marketing. In addition to being the editor of theJournal of the Academy of Marketing Science (JAMS), he serves on the editorial review boards of five other journals. Dhruv Grewal (Ph.D., Virginia Tech) is Interim-Chair and a professor of marketing at the University of Miami. He has published more than 40 articles in journals such as theJournal of Marketing, theJournal of Consumer Research, theJournal of Marketing Research, theJournal of the Academy of Marketing Science, and theJournal of Retailing. His research interests focus on retailing, pricing, international marketing, and consumer behavior issues. He currently serves on the editorial review boards of theJournal of Marketing, theJournal of the Academy of Marketing Science, theJournal of Retailing, and theJournal of Public Policy & Marketing. He has won awards for both his teaching and research. He has coedited a special issue of theJournal of Public Policy & Marketing and of theJournal of Retailing. He was recently elected to the AMA Academic Council—VP Research and Conferences (1999–2001). He is currently writing a book onMarketing Research (publisher: Houghton Mifflin).     

Cobranding arrangements and partner selection: a conceptual framework and managerial guidelines

Cobranding, the strategy of marketing brands in combination, has received increasing attention from academics and practitioners alike. This study examines two cobranding decisions facing a firm: the cobranding structure and the selection of a partner. Propositions rooted in the theories of attribution and categorization posit (a) how the levels of cobranding integration, exclusivity, and duration influence brand evaluation and consideration and (b) how consistency with the partner brand in hedonic attributes, complementarity in functional attributes, and brand breadth moderate the effect of partnership structure. Higher integration or longer duration likely has a greater impact on evaluation and consideration; an exclusive arrangement has a greater effect on evaluation but lowers consideration. For managers, these propositions are directly applicable; the outcomes of brand evaluation and consideration map onto the strategic goals of brand development and market development, respectively.     

The effect of employee behavior on brand personality impressions and brand attitudes

This research examines how consumers update their brand personality impressions and brand attitudes after interacting with one of the brand's employees. Drawing on stereotyping theory, the author develops a framework that proposes that the impact of an employee's behavior depends on how the employee is categorized. When the employee is considered primarily as an exemplar of the brand's workforce, his or her behavior is generalized more strongly to the brand. When, however, the employee is judged as a relatively unique individual (i.e., when the employee is subtyped), the behavior is not transferred to the brand to the full extent. The results of three studies provide converging evidence and show that the degree to which consumers subtype an employee is determined by the amount of information they possess about the employee, the extent to which they depend on the employee, and their motivation to form an accurate impression. The findings have direct implications for marketers interested in understanding how employees affect the brands they represent.

Price and brand name as indicators of quality dimensions for consumer durables

Delivering quality products requires an understanding of the critical dimensions and cues that consumers use to judge quality. To that end, this article addresses two fundamental research issues. Using a qualitative study, the authors first develop a generalizable typology of quality dimensions for durable goods that includes ease of use, versatility, durability, serviceability, performance, and prestige. Second, the authors conduct a process-tracing laboratory experiment to examine how key marketing variables—price, brand name, and product attributes—affect consumers’ judgment processes and inferences about how products perform on the six quality dimensions. Results of the experiment indicate that consumers use price and brand name differently to judge the quality dimensions, searching for price and brand name much more frequently when evaluating prestige than when evaluating any other quality dimension. Results suggest that managers must determine the relevant quality dimensions for a product category and the cues that are salient for judging those dimensions. Merrie Brucks is a professor of marketing at the University of Arizona, where she also holds a joint appointment in the Department of Psychology. She received her Ph. D. in marketing from Carnegie Mellon University. Her research first received scholarly recognition in 1984, when she won the Robert Ferber Award for the best doctoral dissertation in the field of consumer behavior. Since that time, she has published extensively in consumer psychology, focusing on memory, information search, judgment, and decision-making processes. In other research she has examined a variety of public policy issues related to advertising. Valarie A. Zeithaml is a professor and area chair at the Kenan-Flagler Business School of the University of North Carolina, Chapel Hill. She is also a Sarah Graham Kenan Distinguished Scholar at that institution. She obtained an MBA and doctorate from the University of Maryland and has devoted the past 20 years to researching and teaching the topics of service quality and services management. She is the author ofDelivery Quality Service: Balancing Customer Perceptions and Expectations and ofServices Marketing, a textbook now in its second edition. She has won numerous teaching and research awards, including the Ferber Award from theJournal of Consumer Research, the Maynard Award from theJournal of Marketing, the Jagdish Sheth Award from theJournal of the Academy of Marketing Science, and the O’Dell Award from theJournal of Marketing Research. Gillian Naylor is an assistant professor of marketing at the University of Nevada Las Vegas. She obtained a doctorate from the University of Arizona in 1996. Her research interests are within the consumer judgment and decision-making domain, with specific interest in postpurchase processes and services marketing.     

Factor analysis: Key tool in consumer behavior research

Quantitative techniques are in frequent use by students of consumer behavior. Most of these techniques, such as correlation analysis and Chi-square tests for significant differences are treated in the various quantitative methods courses taught in or for schools of business across the country. Factor analysis, on the other hand, is rarely included in the content of these courses. Nevertheless, it is not uncommon to find journal articles in which results of factor analytic studies are reported. This state of affairs must produce some frustration among marketing practitioners and even among some academicians, who find it difficult to interpret those results, much less understand how they were obtained. This article is designed to assist those who need to read and comprehend journal articles, who need to discuss such articles with others and who may find it desirable to use factor analysis in their own work.     

Self-congruity versus functional congruity: Predictors of consumer behavior

Four studies were conducted to test the hypothesis that (1) consumer behavior is more strongly predicted by functional congruity than by self-congruity, and (2) functional congruity is influenced by self-congruity. The pattern of the results provides support for hypotheses.