Role of Forgetting in Memory-Based Choice Decisions: A Structural Model

We propose a structural model to investigate the impact of forgetting on consumers' brand choice decisions in frequently purchased products. Forgetting results in consumers imperfectly recalling their prior brand evaluations when making a purchase decision in the category. We conceptualize the imperfect recall by positing that consumers recall their prior evaluations with noise. Based on prior research in the behavioral area, we characterize the extent of forgetting as an increasing and concave function of time. Our framework generates analytical results on the impact of forgetting on consumers' brand evaluations and their consequent purchase behavior. We calibrate our model using scanner panel data for liquid detergents. Furthermore, we obtain insights into the consumers' extent of forgetting in the category, extent of learning, predicted price elasticities and implications on state dependence and habit persistence. Our results underscore the importance of modeling consumers' ability to recall only imperfectly.     

The covariates of regularity in purchase timing

An examination of the timing of consumers' purchases for coffee reveals that consumers vary a great deal in terms of the regularity of their purchasing behavior. Some consumers make purchases at seemingly random time intervals, while others purchase at highly regular intervals. The measurement of regularity in purchase timing, as well as the identification of its covariates, is important in many contexts such as modeling purchase incidence and sales forecasting. We measure the degree of regularity among a sample of coffee purchasers and identify several consumer characteristics that vary with the degree of regularity in purchase timing. Results show that regularity in purchase timing is related to brand loyalty, store loyalty and deal proneness, as well as to certain pattern of routinization by the households, and that regularity may be used, along with other aspects of purchase behavior, to provide a basis for market segmentation.The authors wish to acknowledge the support of Information Resources Inc. for providing the data, and are grateful to Professor Jane T. Landwehr, University of Delaware, for her help.     

Understanding the impact of store flyers on purchase behaviour: An empirical analysis in the context of Spanish households

The purpose of this paper is to analyse how Spanish consumers are really influenced by store flyers. The present study examines decisions of households regarding: (i) incidence (using a binary logit model); (ii) brand choice (using a multinomial logit model); and (iii) quantity (using a Poisson model). The models described above are applied to scanner choice datasets of the purchases made by Spanish households in two product categories (olive oil and coffee) over 53 weeks. The study finds that the main effect of such flyers is brand switching, rather than acceleration or stockpiling. However, consumers are not homogeneous in these responses to store flyers. Price sensitivity is found to be a more important driver of flyer-proneness than brand loyalty; moreover, the study finds a strong relationship between price-sensitive, flyer-prone consumers and decisions on incidence, choice, and purchase quantities. In contrast, the influence of the presence of brands in store flyers on incidence of purchases is not more prevalent among brand-loyal consumers than among non-brand-loyal consumer; however, such flyers are able to induce loyal users to stock up on their preferred brand. The managerial implications underline that manufacturers and retailers should be aware that the inclusion of a brand in store flyers (without necessarily offering a price discount) can simultaneously cut promotional costs and increase sales profits. In addition, managers should use other types of promotions (such as in-store displays) to encourage consumers to stock up on the brand.     

The influence of price and brand loyalty on store brands versus national brands

Abstract

This article investigates how price and brand loyalty of three frequently purchased product categories can influence the purchase decision process of store brands versus national brands. A multinomial logit model was constructed to analyse the data obtained from a consumer panel. The results confirmed that brand loyalty is the main variable which influences the purchase decision process of both national and store brands. The influence of price on the purchase decision process is product specific. There is a clear distinction between the buyer's profile of store brands and national brands. But there is no evidence of any correlation between demographic variables and national brands or store brands.     

Coupon characteristics and brand choice

The effects of coupons on brand choice and repurchase behavior were examined in a laboratory panel experiment. Each of the 122 consumers purchased a candy bar on 10 different occasions; on the seventh purchase occasion, each consumer received an announcement of a new candy bar and one of four versions of a coupon. Results showed that whether or not a consumer will use a coupon depends on the size of the coupon offer, how easily the consumer can redeem the offer, how brand loyal the consumer is, and whether or not the consumer is deal prone. We also found, after statistically adjusting for our censored sample, that loyalty and coupon Characteristics influence whether or not a consumer will continue to purchase a formerly discounted brand. Information aggregation theory (Tybout & Scott, 1983) explains better than attribution theory how the coupon affects repurchase decisions.     

Comparing stated and realized preferences for shade‐grown vs. conventionally grown coffee

We used both stated preference and revealed preference data to estimate willingness to pay (WTP) for shade‐grown coffee as compared with conventionally grown coffee. Stated preference data was collected using contingent valuation studies. Revealed preference data came from an experiment where all survey participants received a personally identifiable voucher redeemable for a free bakery item when the holder purchased a coffee. We compared estimates of mean and median WTP a price premium for shade‐grown coffee from stated preference data with similar estimates from revealed preference data. We used a logit model to evaluate the effect of explanatory variables (measures of environmental attitudes, personal norms for pro‐environmental behaviour and demographic variables) on respondents’ WTP a price premium for shade grown coffee. Model parameters were estimated using the maximum likelihood approach. Respondents with higher scores on measures of environmental attitudes and personal norms for pro‐environmental behaviour were, on average, willing to pay more for shade‐grown coffee. While this paper examined a specific case, purchase of shade‐grown coffee, our results confirmed that stated environmental concern was a good predictor of pro‐environmental behaviour. We found that mean and median WTP estimates from stated preference methods were higher, but not significantly different than mean and median WTP estimates from actual purchases, indicating convergent validity between stated and realized preference methods. The majority of individuals both stated WTP a price premium and purchased shade‐grown coffee at a price premium. We did, however notice some interesting behaviour at the individual level where stated preferences under‐predicted realized preferences at low price‐premia and over‐predicted realized preferences at high price premia.     

对已购品牌的危机反应：不同品牌危机类型对消费者购后行为的差异化影响研究

基于自我分类理论,文章研究品牌危机类型(能力相关型与道德相关型品牌危机)对消费者购后行为(重复购买与口碑传播)的影响。通过分析实验数据以及消费者实际购后行为数据发现,道德相关型品牌危机会导致更高的矛盾态度,从而产生更低的重复购买和口碑传播。在能力相关型品牌危机下,强自我品牌联结消费者的重复购买和口碑传播都显著大于弱联结的消费者,而且强联结的消费者面对本土品牌的重复购买和口碑传播要显著高于外国品牌;在道德相关型品牌危机下,强联结消费者的重复购买显著大于弱联结的消费者,而口碑传播没有显著差异。文章拓宽了品牌危机与消费者行为研究视角,并为品牌商正确认识品牌危机与消费者群体关系提供理论指导。     

A comparison of two types of price discounts in shifting consumers' attitudes and purchase intentions

This study focuses on consumer responses to two different types of price discounts: 1) a price discount with and 2) a price discount without a minimum purchase requirement. The effects of the discounts are examined to the extent that they may change consumers' attitudes and purchase intentions regarding a particular brand, by moving it from consumers' hold set to consideration set. A three-phase study on fast-food services in China was conducted. The results of the study provide new empirical insights regarding how to use a brand categorization model to predict the effects of different types of price discounts on consumer purchase behavior. More specifically, this study demonstrates that when a price discount with and without a minimum purchase requirement is applied to a brand in a hold set, the brand moves from the consumers' hold set to the consideration set. However, the effects of the two types of price discounts on consumers' attitudes and purchase intentions are not significantly different. The results are discussed in relation to brand management and marketing strategies in consumer goods industries.     

Estimating the effects of higher coupon face values on the timing of redemptions,the mix of coupon redeemers,and purchase quantity

One of the key decisions a manager must make in designing a coupon promotion is to decide on the face value. In this study we examine the effects of higher face values on coupon redemption timing, category purchase timing, the mix of buyers who redeem the coupon, and purchase quantity. Data from a field experiment on coupon face values are used to test the hypotheses. A new method of measuring the effects of a coupon on category purchase timing is proposed. We find that coupons per se tend to advance category purchase timing, but higher face values do not increase the magnitude of this effect. Surprisingly, higher face values appear to increase redemption rates for both the prior nonbuyers and prior buyers of the brand in a similar way. However, higher face values have little effect on the package size purchased, the number of units purchased, or the total quantity (package size times units) purchased.     

Do online sales channels save brands of global companies from consumer boycotts? A geographical analysis

This study empirically investigates the link between global companies' brand strength and consumers' actual purchase behavior by considering online purchasability and the geographical area in the context of boycott campaigns. To test the hypotheses, we employ a hierarchical multiple regression model using online survey data collected from 571 South Korean consumers. Our findings reveal that online purchasability with strong brand strength could be a beneficial strategy for global companies to increase consumers’ actual purchase behavior. Further, non-metropolitan consumers show an increase in actual purchase behavior as compared to metropolitan consumers. This study has implications for global companies to adequately respond to unexpected consumer boycotts.     

品牌与国家联结、品牌刻板印象与消费者购买意愿的研究

基于品牌全球化背景，文章探究了品牌与国家联结核心构念的两个维度对消费者购买意愿的影响机制。实证结果表明，从国家联想到品牌的维度显著影响消费者购买意愿，并显著影响品牌能力，同时品牌能力在该维度对购买意愿的影响路径中起到部分中介作用：从品牌联想到国家的维度显著影响品牌温暖，并通过品牌温暖的完全中介作用对购买意愿产生促进效应。另外，品牌典型性正向调节了从国家联想到品牌的维度对品牌能力的影响路径。上述发现在理论上洞察了品牌刻板印象内容的两个维度如何受到品牌与国家联结的影响，厘清了品牌与国家联结以及品牌刻板印象如何作用于消费者购买意愿。在实践上为中国提升国家品牌形象，中国品牌推进全球化战略提供策略参考。     

The competing roles of variety seeking in new brand adoption

We examine how consumers' attribute-level variety-seeking behaviors can explain their propensity to adopt a new brand in the consumer packaged goods (CPG) market. We leverage consumers' purchase history among extant brands prior to a new brand introduction as an indicator of the new brand adoption upon its launch. We incorporate variety seeking at two product attribute levels – brand and flavor – and find that variety seeking along these two dimensions predicts different outcomes for new brand adoptions. The estimation results of our discrete-time hazard model show that consumers' brand-level and flavor-level variety-seeking behaviors affect their likelihood to adopt a new brand in different manners: consumers who purchase various brands are more likely to adopt a new brand, whereas those who choose various flavors are less likely to adopt a new brand. The results also show that the new brand's price promotions and in-store displays can affect the role of variety seeking in consumers' new brand adoption. We assess the robustness of our findings by replicating our empirical model with an additional measure of variety seeking as well as a variety-seeking measure in another product category.     

A simultaneous model of multiple-discrete choices of variety and quantity

In many categories, consumers purchase discrete quantities of multiple varieties. For example, when doing grocery shopping for cereals, consumers may purchase in each category three units of brand A, four of brand B, and one of brand C. These decisions are often influenced by nonlinear pricing strategies such as quantity discounts. Modeling such multiple-discrete choices is challenging, as they violate assumptions of standard choice models. In this research, the author introduces a computationally attractive choice model that simultaneously captures 1) variety, 2) discrete quantity, and 3) nonlinear pricing strategies, such as quantity discounts. The model assumes that consumers maximize variety of the choice outcome, while taking into account constraints on utilities of alternatives. Application of the proposed model to two datasets demonstrates the superior fit compared to several rival models. Counterfactual analyses demonstrate that the model is a valuable tool for assortment and pricing decisions.     

Are consumers inherently or situationally brand loyal?—A set intercorrelation account for conscious brand loyalty and nonconscious inertia

Why do some consumers stick with a certain brand(s), whereas others are prone to switch? This study proposes, and empirically examines, the hypothesis that the structure of the evoked set is the nonconscious memory representation of consumers' repeat purchase behavior. Two causes of repeat purchase are identified: Brand loyalty, which is inherent to consumers and is constant over time, and inertia, which fluctuates with marketing variables. A model selection procedure is performed to compare the relative efficiency of using multinomial and binary logit models to examine the theoretical accuracy of the hypotheses. Findings suggest a U‐shaped relation: Consumers who hold moderately intercorrelated evoked sets are intrinsically brand loyal, but are susceptible to the impact of marketing variables. They are intrinsically prone to switch, but less open to marketing variables, when their evoked sets are high or low in intercorrelation. The findings contribute to the understanding of both conscious and nonconscious aspects of repeat purchase patterns. © 1999 John Wiley & Sons, Inc.     

Indian consumers' purchase intention toward a United States versus local brand

This study of Indian consumers examines the effects of individual characteristics (i.e., consumer's need for uniqueness and attitudes toward American products) and brand-specific variables (i.e., perceived quality and emotional value) on purchase intention toward a U.S. retail brand versus a local brand. A total of 411 college students in India participated in the survey. Using Structural Equation Modeling (SEM), this study finds that Indian consumers' need for uniqueness positively influences attitudes toward American products. Attitudes toward American products positively affect perceived quality and emotional value for a U.S. brand while this effect is negative in the case of a local brand. Emotional value is an important factor influencing purchase intention toward a U.S. brand and a local brand as well. Implications for both U.S. and Indian retailers are provided.     

基于产品信任的我国自主品牌培育研究

产品信任是消费者信任的重要一环,是品牌形成与发展的根本.产品信任有利于消费者对企业品牌产生美好的印象及感知;产品信任有利于形成"口碑效应",提升企业的满意度,为更多的消费者所认知;产品信任会产生消费者对该产品的重复购买行为,带来品牌的忠诚度提升.产品信任条件下自主品牌的培育,应以产品为本,获取消费者信任,构建自主品牌;履行承诺,积累自主品牌资产;加强监管,预防信任缺失,防范自主品牌信任危机.     

Nutrition Ad Claims and Disclosures: Interaction and Mediation Effects for Consumer Evaluations of the Brand and the Ad

The effects of ad disclosure information on evaluations of the brand, the advertisement, and purchase intentions are postulated to vary across different ad claim types. In addition, consumers' product health perceptions are hypothesized to mediate the effects of the disclosure information and ad claim type on brand and ad-related evaluations. Results from a between subjects' experiment show that the health perception measure mediates the effect of the disclosure on brand and ad evaluations, but the interaction between the ad claim type and the disclosure is not mediated by the inclusion in the model of consumers' product health perceptions.     

网络负面谣言与品牌崇拜：品牌口碑与沟通技巧的作用

文章对网络负面谣言与消费者品牌崇拜的关系，以及品牌口碑与沟通技巧在以上关系中所起的中介与调节作用进行了实证研究。研究以广州地区211家品牌服饰企业的品牌管理者为实证研究对象，通过对问卷调查数据进行层级回归分析发现：(1)网络负面谣言不但会直接负向影响消费者对企业的品牌崇拜，而且还会通过负向影响企业的品牌口碑，继而对消费者品牌崇拜产生负面影响，品牌口碑在网络负面谣言与消费者品牌崇拜关系中起部分中介作用；(2)沟通技巧程度强的企业品牌更能抵制网络负面谣言的影响，相对于低沟通技巧的企业，高沟通技巧企业的消费者较少因为网络负面谣言而降低其对原有消费品牌的崇拜。     

Empirical Analysis of Consumer Purchase Behavior: Interaction Between State Dependence and Sensitivity to Marketing-Mix Variables1

People are intent to make similar choices especially in consumer goods markets. To address both explanations of this persistence, i.e. state dependence and heterogeneity in preferences, we use random coefficient logit model based on scanner panel data on juice purchases. The product differentiation of the chosen category allows us to model three dimensions of state dependence on brand, size and flavor characteristics. We provide evidence that the persistence in brand choices is positively correlated with persistence in size and flavor choices, thus the consumer pattern is prone to be inertial or variety seeking in every product characteristics. Simultaneously we show that the more sensitive to price and promotional activities consumers are, the less inertial is their behavior.