Processing contradictory brand information from advertising and social media: an application of the multiple-motive heuristic-systematic model

This study tested two major theoretical assumptions of the heuristic-systematic model – (1) concurrent information processing and (2) multiple processing motives – in a common advertising situation where contradictory brand information from different sources (e.g. a positive advertising claim [a persuasive argument] vs. negative consensus information from a third-party source [a persuasion cue]) was available to consumers with varying motivation (accuracy and defense motivation). Results showed that individuals employed different information processing strategies, depending on motivation type. Accuracy-motivated individuals engaged in concurrent (both cue- and argument-based) processing when involvement was high. Defense-motivated individuals sought positive valence, regardless of the level of involvement and type of information.     

Give mind to the gap: Measuring gender differences in financial knowledge

Prior research consistently finds a gender gap in financial knowledge where males appear to outperform females. Despite the wealth of studies attempting to explain this gap, none have considered whether the gender gap may be a product of measurement method. This study re-examines the gender gap with item response theory (IRT) which can account for guessing behavior and differential item functioning. Survey data on 184,869 individuals from 39 countries and territories is analyzed. Results show that when IRT is employed, a gender gap exists in only 54% of the sample. In contrast, when a conventional measurement approach is used, there is a gender gap in financial knowledge in 81% of the sample. These results reveal that prior measurements may underestimate women's financial knowledge and inflate the gender gap.     

How information processing and mobile channel choice influence product returns: An empirical analysis

The mobile internet is starting to overtake the desktop device‐based internet as a purchase channel. Its impact on consumer behavior is therefore increasingly important to understand. This study seeks to understand and measure, if usage of mobile devices for online purchases leads to a lower decision quality and, in effect, to more product returns. In doing so, the impact of information environments on the end‐to‐end consumer purchase decision‐making process is better understood and it is investigated, if the information environment of mobile devices leads consumers to take more error‐prone purchase decisions. An exclusive data set spanning more than 140 million transactions of a European online retailer is used to empirically analyze changes in product return behavior after mobile channel adoption. The results show that mobile channel usage is positively related to product returns, overall and for both, purchases made with mobile devices and purchases made with desktop devices, although prior literature predicts that returns from desktop purchases should not increase. These findings suggest that through new channels, consumers’ information environment is altered sufficiently to affect their decision accuracy. Moreover, the results indicate that previous research may be overestimating the positive effect of mobile channel adoption on sales by disregarding changes in product return behavior.     

An item response theory approach to constructing and evaluating brief and in-depth financial literacy scales

We applied item response theory (IRT) to construct and evaluate new brief and in-depth financial literacy scales. A survey of a UK adult sample (N = 589) included 50 questions to assess knowledge about managing financial resources and competence in using personal finance-related information—including five widely used items, on interest rates, inflation, investment diversification, mortgages and bonds. IRT applied to a scale of these items identified some limitations, overcome via further iterations to construct a new brief scale with sound psychometric properties. IRT was then applied iteratively to our pool, resulting in an in-depth, 20-item scale, also psychometrically sound, covering four broad financial domains: everyday money transactions; the concept of money; borrowing; and saving and investment. Parallel 10-item sub-scales were also evaluated. The validity of the new scales was demonstrated by regression analyses which found that, controlling for demographic variables, financial literacy predicted key indicators of financial well-being.     

Managing the reputation of the banking industry after the global financial crisis: Implications of public anger,processing depth and retroactive memory interference for public recall of events

The global financial crisis of 2007/2008 devastated the reputation of the UK banking industry. This paper examines possible connections between the depth of an individual's cognitive processing of information about the banking industry's role in the onset of the crisis obtained from UK media (and elsewhere) and the subsequent extent and accuracy of the person's memory of events. Depth of processing was posited to depend on the level of an individual's feelings of anger at the banks' reported behaviour before and during the crisis and on the degree to which a person had suffered financially as a consequence of the crisis. A number of hypotheses were developed on the basis of Nabi's (1999) cognitive functional model and were tested via a survey of 413 members of the public in Greater London. It was further hypothesised that, because media coverage of the banks' involvement in the crisis was largely hostile, many members of the public attributed blame for the crisis mainly to the banks, resulting in extensive feelings of anger and hence deeper cognitive processing.     

From an information consumer to an information author: a new approach to business intelligence

ABSTRACT

Self-Service Business Intelligence (SSBI) enables business users, such as executives, managers, analysts, and knowledge workers to build reports on a need-basis to support their decisions and actions toward business success. This suggests that business users are empowered not only to consume information but also to author it. Yet, research on SSBI is mainly concentrated at the industrial level, and furthermore little is known on the way SSBI is changing the current state of BI. To address this lack of knowledge, this study explores the attributes of SSBI that are necessary to extend the role of a business user beyond that of an information consumer by drawing on the literature of Self-Service Technologies (SST). This study provides a new definition of SSBI as a new approach to BI. Furthermore, it highlights the duality of high levels of co-production and low levels of dependency as key to the SSBI approach.     

A normative approach to motivating savings behavior: the moderating effects of attention to social comparison information

Research examining the influence of social norms on motivating savings behavior is scarce. The current study tested social norm effects in conjunction with benefit information and the moderating role of attention to social comparison information (ATSCI) when responding to public service advertisements (PSAs) promoting savings behavior. Results from two experiments, testing positive and negative social norm information, respectively, support the argument that lower ATSCI individuals exhibit greater intellectual autonomy and discernment of information, especially regarding norm information, while higher ATSCI individuals generally demonstrate greater social compliance tendencies. Implications for theory development and enhancing savings campaigns are discussed.     

An Examination of the Effect of Consumer Personal Traits on Show Rooming Behavior: The Effect of Product Type

The rapid growth of online commerce and spread of mobile devices have created various trends in product-purchasing behaviors of consumers. Especially in online-to-offline commerce, “showrooming” has increased. This involves searching for products offline but purchasing them online. Among theories of consumer buying behavior based on traditional consumer characteristics, this study empirically analyzes whether there are group-specific differences in showrooming. The results show that innovative consumption tendencies are significantly related to push, pull, and mooring factors. The findings also elucidate the role of showrooming buying behavior in these relationships. In terms of push and mooring factors, these relationships are strengthened by showrooming purchase experience. This study divides products into electronic products and apparel and analyzes the effects on purchase experience using a moderator.     

Consumer response to uncertain promotions: An empirical analysis of conditional rebates

We formulate, estimate, and analyze a model of consumer response to promotions where consumers' receipt of the promotional reward is uncertain. The model incorporates consumers' risk aversion and their subjective assessment of the probability that they will get the reward. It is used to assess the effectiveness of a “conditional rebate”, where the uncertainty arises because the reward is contingent on an external event, versus a traditional rebate, which is similar in all respects except that it is certain. We estimate the model using a conjoint choice experiment. Response to conditional rebates is highly segmented and related to perceived thinking costs and savings and entertainment benefits of conditional rebates as well as to event involvement and gambling proneness. In our application, conditional rebates are more cost effective than certain rebates, mostly because consumers' subjective probability of the event occurring is higher than what market wisdom suggests.     

The influence of information communications technology (ICT) on cash management and financial department performance: An explanatory model

We delineated the extent to which various facets of information communications technology (ICT) are used and are perceived as useful by treasury managers, focusing on three indicators of financial department performance: cost savings, improvements in the quality of the information, and enhancements in the use of scenario simulations for decision making. Specifically, we examined the relationship between ICT use in cash management functions within financial departments, perceptions of the importance of cash management to treasury managers, and their perceptions of the usefulness of ICT to financial department performance. The theoretical and applied implications of these findings are discussed. Copyright © 2009 ASAC. Published by John Wiley & Sons, Ltd.     

Venture planning and analysis: An integrated approach to investment evaluation and product pricing

The venture planning and analysis (VPA) system is a quantitative analysis useful for developing pricing policy, projecting financial results, and comparing various investment opportunities. It is an integrated approach to product (investment) evaluation utilizing both marketing and cost information to determine an optimum pricing strategy.A venture plan is developed which covers several years of the anticipated life of the product (venture). The pricing strategy is determined by identifying the relationship between price, volume, and variable cost which yields the greatest positive cash flow. Revenue, variable expense, fixed expense, and engineering expense are input by fiscal year.The VPA system computes interest expense/income and cash flows. Ratios of the venture's quality-marginal investment quality factor and investment quality factor-are displayed, as are matrices which indicate the sensitivity of the venture to changes in the input data. Computer generated plots also help illustrate the cash flow and optimum level of production for each fiscal year of the analysis.     

Health marketing communications: An integrated conceptual framework of key determinants of health behaviour across the stages of change

Despite the development of many health behaviour theories across various topics, the inconsistency in empirical support for their propositions and the on-going criticism about their limitations highlight the need for an adjusted and integrated approach. These theories have never been ‘abandoned’ or altered significantly to address their limitations, since their conceptualisations. The aim of this paper was to make a conceptual contribution by integrating distinct health behaviour theories (i.e. Health Belief Model, Extended Parallel Process Model, Transtheoretical Model), with a popular information-processing and attitude change theory from the marketing communications arena (namely, the Elaboration Likelihood Model). The specific objectives of this paper were: (1) to address limitations of prevailing health behaviour theories, by identifying key determinants of health behaviour across the most commonly used health behaviour theories; (2) to identify source, consumer, channel, and message characteristics, in addition to executional/situational factors and attitudinal variables, which may influence health behaviour; and lastly, (3) to explain under which conditions (i.e. stage of change) these determinants and factors are likely to impact health behaviour change and maintenance. In doing so, four assumptions and several propositions are developed. Future research directions and practical implications for creating health marketing communication messages are also discussed.     

Communicating With Nonprofit Publics In China: Applying the RISP Model to Prosocial Intentions

This study applied the Risk Information Seeking and Processing (RISP) model to social risk information seeking and processing on social media and prosocial behavioral intentions. Survey data were collected among Chinese college students. Structural Equation Modeling revealed that the model can be successfully applied to social risk information seeking and processing on social media. Students who exhibit high tendencies for systematic information processing and for the interdependent self-construal are more likely to engage in prosocial activities. NPOs are suggested to target young adults with high inter-dependent self-construals, and to craft compelling messages on social media.     

Information use and company performance : An application to the retail electrical appliances sector

While there is no doubt that we are living in an information age, the question as to whether information is really beneficial to its users has not often been addressed empirically. This paper aims to address this issue by analysing information use by retail electrical appliance companies in order to explain differences in company performance. The results suggest that some companies spend too many resources on information, so that information use becomes counterproductive.     

The role of food eating values and exploratory behaviour traits in predicting intention to consume organic foods: An extended planned behaviour approach

The extant literature on predicting organic food choice as a consumption behaviour has overlooked the role of food eating values (utilitarian and hedonic values) and individuals exploratory buying behavioural traits (exploratory information seeking and exploratory acquisition seeking). The novelty of the study is the use of food eating values and individuals exploratory buying behaviour traits as an extension to the theory of planned behaviour in predicting attitude and intentions towards organic food consumption with a representative sample of N = 431. Data was collected in two phases. In the first phase, a small qualitative face to face (semi structured) interviews were held from 22 respondents to elicit the utilitarian and hedonic values individuals attach with the organic food consumption. This is followed by the collection of survey data from two Indian metropolitan cities (New Delhi and Chennai) using a mall intercept method from the individuals visiting hypermarkets and supermarkets. The hypotheses were tested using structural equations modelling or SEM in IBM AMOS 24. Attitude to consume organic foods was found to be most dominant in predicting behavioural intention in both basic and the extended TPB model followed by subjective norms. Perceived behavioural control was found to be a significant predictor only in the extended TPB model, suggesting a dual role. Findings also suggested that utilitarian values are more influential than hedonic values in the formation of attitudes towards organic foods.Further, the exploratory information seeking traits are found to strengthen the relationship between a) perceived behavioural control and behavioural intention to consume organic foods and b) attitude to consume organic foods and behavioural intention to consume organic foods whereas exploratory acquisition seeking traits to be strengthening the relationship between attitude and behavioural intentions only. Implications for the policy makers is discussed towards the end of the study.     

Retailing and the period leading up to the Great Recession: a model and a 25-year financial ratio analysis of US retailing

Today, more than ever, retailers need to analyze the key solvency (liquidity) and efficiency financial ratio measures that affect how well their firms perform and to engage in long-term activities that will lead to improved results. Clearly, the recent ‘Great Recession’ has had a significant negative impact on retailers worldwide. Yet, an important question remains largely answered: Was the retail industry a major contributor to the events leading up to the economic crisis or was it an affected bystander shaken by the recession? This paper addresses the question for US retailing, the largest retail economy in the world. Although there has been considerable research on some aspects of the performance of the industry and individual firms, no prior studies exist that comprehensively examine the financial ratio performance of the totality of US retailing over time. Here, the financial performance of US retailers in 54 different sectors is analyzed for the 1982–2007 period using a model and data derived from Dun & Bradstreet's annual Industry Norms & Key Business Ratios. Results show that for many financial measures – such as the current ratio, liabilities to net worth, return on sales (profit margin), return on assets, financial leverage, and return on net worth – US retailing's financial performance has been in a steady decline for decades. The model introduced here is largely validated.     

A comparative analysis of hedonic models of nutrition information and health claims on food products: An application to soup products

Over time, the quality of data on food purchases and label information has improved such that hedonic analyses to determine the implicit prices of product attributes can be conducted using more detailed data than in the past. With the availability of more extensive data, it is important to understand the characteristics of the data and implications of using different data sources on results of analyses. The purpose of this study was twofold: (1) compare results between two sources of label information and (2) develop a better understanding of the effects of product claims and nutrition information on the value of products to consumers. Trans fat claims, organic claims, private label, package size, and several nutrients were found to influence implicit prices for soup products, and the results between the two data sources are comparable.