Product information and consumer choice confidence in multi-item sales promotions

This research augments efforts to produce a richer understanding of the drivers of consumer choice confidence. It examines the interplay between two marketing interventions that consumers encounter in retail marketplaces, diagnostic product information and multi-item sales promotions. Results indicate that the influence of product information varies as a function of sales promotion format. The information effect is weaker when consumers are allowed to select the products that will be included in the promotion. Perception of information adequacy is revealed as a mediator of the information diagnosticity effect. The implications for marketing theory and promotional strategy are discussed.     

Effectiveness of Marketing Cues on Consumer Perceptions of Quality: The Moderating Roles of Brand Reputation and Third‐Party Information

Consumers usually infer unobservable product quality by processing multiple‐quality cues in the environment. Prior research considering the simultaneous effects of marketing cues on consumer quality perceptions is sparse. Despite the growing importance of third‐party information, research examining its simultaneous effects with marketing cues on consumers’ decision making is especially absent. This research, drawing on cue‐diagnosticity, cue‐consistency, and negativity bias theories, proposes and tests a conceptual framework to reveal interplays among various marketing‐ and nonmarketing‐controlled product cues. The first study examines how two‐ and three‐way interactions of high‐scope (i.e., brand reputation) and low‐scope marketing cues (i.e., price and warranty) affect consumer perceptions. The second study examines a set of interaction effects between third‐party quality ratings and marketing cues (i.e., price and warranty) on consumers’ perceptions. Overall, the results reveal theoretical and managerial implications for processing multiple‐quality cues in consumers’ inference‐making behaviors and suggest that consumers generally aggregate perceptions in more complex ways than suggested in the prior literature when making global product quality evaluations.     

Need for cognitive closure and information search strategy

The authors investigated whether need for cognitive closure (NFCC) affected one's style of information search (attribute‐based search vs. alternative‐based search) in consumer choice. There has been growing interest in NFCC in marketing and its relationship to consumer information processing. However, no study to date has examined the different information search strategies that consumers employ when they (1) possess different levels of NFCC or (2) are exposed to situations that evoke more or less NFCC. Across two studies where Study 1 measured NFCC while Study 2 manipulated NFCC, the authors commonly found that higher NFCC compared to lower NFCC resulted in (1) a greater preference for the attribute‐based search over the alternative‐based search and (2) a consideration of a smaller amount of information to make a final choice. Implications for consumer information processing and sales strategies are discussed along with future research directions. © 2008 Wiley Periodicals, Inc.     

Revisiting attribute diagnosticity in the context of product typicality

This article investigates the categorization of an ambiguous product (i.e., one that may be categorized in multiple ways) by applying insights from recent psychological and artificial-intelligence research on concept representation. In particular, the article introduces a type of prototype representation (attribute-value structure) that utilizes the notion of attribute diagnosticity. Attribute diagnosticity is defined as an attribute's usefulness for distinguishing instances from noninstances of a category and proposed as a determinant of an ambiguous product's typicality as a member of a category. A new measure of attribute diagnosticity is also developed based on a linear combination of cue validity and category validity. Attribute diagnosticity is shown to influence the perceived typicality of an ambiguous product. Several suggestions are provided for future use of attribute diagnosticity in research on product categorization. © 1996 John Wiley & Sons, Inc.     

When goliaths win and davids lose: The moderating role of perceived risk in brand biography effects

Brand biographies trace a brand's evolution to position it as an underdog (i.e., passion and determination that lead to success despite limited resources) or a topdog (i.e., success based on abundance of resources) brand. This study examines how consumers’ risk perceptions associated with brand choice influence brand biography effects. It demonstrates that when perceived risk associated with brand choice is low, consumers process brand biographies narratively, experience greater narrative transportation into underdog (vs. topdog) brand biographies, and evaluate the underdog brand more favorably. When perceived risk associated with brand choice is high, consumers respond more positively to topdog (vs. underdog) brand biographies, due to topdog brands’ greater perceived ability to reduce risk. The topdog effect observed at higher levels of perceived risk reverses, however, when consumers have the opportunity to process the brand biography before receiving high risk information, as this allows for narrative transportation into the brand biography. This study contributes to research on moderators of brand biography effects and suggests that perceived risk should play a role in marketers’ decision to emphasize underdog or topdog characteristics in brand biographies.     

One-to-One and One-to-Many Business Relationship Marketing: Toward a Theoretical Framework

ABSTRACT

Purpose. This work addresses mixed findings in relationship marketing literature regarding the importance of micro-level (interpersonal) relationships on firm outcome.

Methodology/Approach: The article leverages impression formation theory to advance a framework to understand one-to-one and one-to-many marketing relationships to better predict firm outcome.

Findings: The authors suggest that 5 framework moderators—the type and consistency of the encounters, relationship age, purchase frequency, relationship interruptions, and two customer side characteristics (i.e., need to evaluate [NTE] and need for cognitive closure [NFCC]”)—can qualify the relationship building process and impact the effectiveness of interpersonal and/or group relationships on firm outcome.

Practical Implications: The framework suggests that (1) highly consistent sales team behaviors reduce the risk of losing business in case of a sales team member leaving; (2) low frequency purchases are better suited for one-to-many selling relationships; (3) temporarily suspending relationships by individual salespeople is more harmful than suspending relationships by sales teams; (4) involving the customer in the acquisition process facilitates team selling; and (5) a positive first impression is more important for high (vs. low) NFCC and high NTE customers.

Originality/Value. The theoretical framework (1) distinguishes between individual-to-individual and individual-to-group relationships, (2) suggests a distinction between micro-level individual-to-individual and individual-to-group relationships and macro-level individual-to-firm relationships, (3) analyzes the impact of micro-level relationships under the influence of context-related and customer-related factors, and (4) provides managerially relevant guidelines for strategic sales planning.     

The effects of 3rd party consensus information on service expectations and online trust

The marketing literature has recently explored a number of ways in which trust can be communicated by Internet retailers, including 3rd party consensus ratings. This paper explores the impact of consensus sequences over time and across high and low ranges, rather than the mere valence of ratings as presented in past research. Second, effects are compared across products with variant levels of risk. Two experiments investigate service quality inferences, expected satisfaction, and trust beliefs for online retailers as outcomes of 3rd party consensus information (i.e., agreement among a firm's past customers). Results indicate that online trust beliefs vary positively with consensus ratings and trust is higher when ratings trends increase rather than decrease. Service quality inferences and expected satisfaction are shown to mediate these relationships. More interestingly, results of study two suggest sequence direction becomes insignificant when ratings do not approach certain range limits (e.g., high, moderate, low cut-offs). Comparisons across products varying in risk show that consensus ratings are more important when consumers evaluate high risk products. Implications for both researchers and practitioners are offered.     

The Role of Context Intensity and Working Memory Capacity in the Consumer's Processing of Brand Information in Entertainment Media

Despite the increasing use of entertainment media such as movies, sport telecasts, or video games as a way to get in touch with consumers, the understanding of the cognitive processing of brand information in these environments is still limited. This current research investigates the role of two moderating factors on brand information processing in entertainment media: Context intensity and working memory capacity. Context intensity relates to the perceived level of excitement in a communication environment, while working memory capacity indicates a consumer's ability to control his or her cognitive resources. The results of an experimental laboratory study reveal that context intensity negatively affects visual attention for brand information (i.e., intensity attention assumption), while working memory capacity has a positive influence on memory for brands (i.e., capacity memory assumption). These findings hold important implications for marketing management: First, managers should place brand information in situations where context intensity is rather low in order to facilitate the target group's visual attention. Second, the frequency and duration of brand information should be adjusted to the target group's ability to cognitively process such information.     

How Hand Proximity Impacts Consumer Responses to a Persuasive Communication

This research examines the impact of hand proximity (i.e., proximal or distal) on how consumers process the information contained in an advertisement or on a product Web site. Four studies demonstrate that when hands are proximal to that information (e.g., when using a mobile device to view the information), there is more detail‐oriented processing that results in greater attribute recall and a greater amount of attribute‐related thoughts. When hands are distal to that information (e.g., when using a desktop to view the ad or product Web site), there is more holistic, conceptually oriented processing that results in greater thematic recall and more thoughts about the theme. This research also demonstrates that hand proximity can differentially impact choice and product evaluations. Specifically, when hands are proximal consumers prefer ads communicating detailed product information; when hands are distal consumers prefer ads that focus on a theme. Hand proximity effects are driven by the innate tendency to manipulate or inspect an item. The research has important practical implications, given the ubiquity of both hand‐held devices and computers.     

Whether,when, and why functional company characteristics engender customer satisfaction and customer-company identification: The role of self-definitional needs

Beyond merely satisfying customers, companies are increasingly striving to build deeper and more meaningful customer relationships characterized by strong customer-company identification. However, whereas previous research has solely focused on symbolic drivers of identification, it remains unclear whether, when, and how managers can build on core functional company characteristics (i.e., quality, innovativeness, and price) to establish customer–company identification. The present study addresses these questions by developing a theoretical framework based on theoretical notions of social identity theory and the cue diagnosticity framework. Evidence from two field studies and one experimental study shows that functional company characteristics are not effective in creating customer–company identification per se, but that their influence depends on whether they match with a self-definitional need that is important to the customer (i.e., self-continuity, self-distinctiveness, or self-enhancement). The findings also reveal the underlying mechanism of this contingency by showing that a self-definitional need fosters customer–company identification because it strengthens the symbolic value of a matching functional characteristic. By identifying specific characteristic–need matches, this research offers novel insights into how managers can leverage functional company characteristics in their targeting and communication efforts to establish meaningful long-term relationships with customers.     

Taking care of you and me: How choosing for others impacts self-indulgence within family caregiving relationships

Consumers frequently make choices for family members they take care of or from whom they receive care (e.g., their children or partner), yet marketing research has given little attention to how these other-oriented choices might impact the chooser’s self-indulgence. In this research we consider familial caregiving relationships as a relevant and ubiquitous context of other-oriented choices and identify the role of the chooser (i.e., caregiver versus care-receiver) as an important moderator that determines when virtuous other-oriented choices within caregiving relationships lead to licensing and when they encourage consistent virtuous consumption behaviors.Three studies demonstrate that making virtuous food choices for others affect the chooser’s subsequent self-regulatory behavior in two ways: After making a virtuous choice for a care-receiving other (e.g., a young child), caregivers (e.g., parents) are more likely to license, and thus to subsequently self-indulge (Study 1, 3). In contrast, care-receivers are more likely to act consistently with an initial virtuous choice for the caregiver and thus are less likely to self-indulge (Study 2, 3).Our findings extend research on moral licensing and consistency effects by demonstrating that—within familial caregiving relationships—the degree to which one receives and provides care may determine when choosers engage in licensing and when they act consistently with an initial virtuous other-oriented choice.     

I might try it: Marketing actions to reduce consumer disgust toward insect-based food

Despite the potential health- and sustainability-related benefits of insect-based food products, many consumers do not perceive them as an alternative to conventional foods. This research provides a systematic approach to explain consumer reactions to insect-based food products conducting a series of multi-method studies involving implicit, self-reported, and actual behavioral responses to real insect-based food products (provided by a partner company). The authors investigate how product type (i.e., whether the insect-based food is utilitarian or hedonic in nature) and packaging characteristics (i.e., whether the image of a real or stylized insect is present on the front packaging or not) interact with consumer-related characteristics (i.e., health consciousness and food neophobia) to affect feelings of disgust, which in turn influence willingness to try insect-based food products. A distinctive feature of this research is that a partner company used the findings to change its marketing tactics and observed an improvement in its market performance. Our research has clear implications for marketing managers trying to overcome consumer resistance to eating insect-based foods, as well as retail managers considering marketing such food products.     

Pseudo-Transformational Leadership: Towards the Development and Test of a Model

We develop and test a model of pseudo-transformational leadership. Pseudo-transformational leadership (i.e., the unethical facet of transformational leadership) is manifested by a particular combination of transformational leadership behaviors (i.e., low idealized influence and high inspirational motivation), and is differentiated from both transformational leadership (i.e., high idealized influence and high inspirational motivation) and laissez-faire (non)-leadership (i.e., low idealized influence and low inspirational motivation). Survey data from senior managers (N = 611) show differential outcomes of transformational, pseudo-transformational, and laissez-faire leadership. Possible extensions of the theoretical model and directions for future research are offered.     

Linking Sources of Consumer Confusion to Decision Satisfaction: The Role of Choice Goals

Previous empirical research on the relationship between consumer confusion and customer satisfaction has largely neglected the role of choice goals. In a context of technologically complex products, the authors analyze the effect of selected choice goals on the consumer confusion‐decision satisfaction link. The empirical findings, which are based on a field study of smart phone users, show that different sources of confusion have distinctive effects on choice goals, which in turn influence decision satisfaction. For example, while confusion caused by ambiguous information and choice overload is found to reduce choice confidence, perceived attribute similarity between products or brands increases choice confidence. Among the choice goals, evaluation costs and negative affect are found to increase decision satisfaction. The findings have important implications for marketers and consumer policymakers in terms of marketing communication and customer satisfaction.     

Decision-Making Strategies for the Choice of Energy-friendly Products

Although energy efficiency of many products has been improving constantly, residential energy consumption is not decreasing as much as desired. Therefore, the goal of the European Union (EU) and many other countries is to promote energy-friendly product choices (i.e., choice of products with low energy consumption). In a purchase situation, consumers are confronted with a wide range of energy-related information that can influence the decision-making process. Understanding how consumers reach a decision based on the information provided and identifying decision-making strategies that are beneficial or destructive in terms of energy friendliness is crucial for the improvement of existing energy-policy measures and, consequently, for the successful achievement of target energy saving goals. This paper provides insights from an exploratory eye-tracking study (N?=?59) investigating consumers’ decision-making process. Participants were required to identify the most energy-friendly television (i.e., the television with lowest energy consumption). Cluster analysis revealed three consumer segments with different decision-making strategies: the energy-directed lexicographic, unsystematic lexicographic, and unsystematic exhaustive strategies. The energy-directed lexicographic strategy resulted in 60% optimal choices in terms of energy friendliness, unsystematic lexicographic in 33%, and unsystematic exhaustive in 38%. No decision-making strategy resulted in 100% optimal choices in terms of energy friendliness. Findings emphasize that lexicographic strategies can successfully identify energy-friendly products when the correct information (i.e., actual energy consumption) is used. However, a lexicographic strategy can be very misleading and result in non-optimal choices in terms of energy friendliness when it is based on ambiguous information (i.e., energy efficiency information) that does not enable a conclusive decision. Further, this paper discusses implications for policy-makers and marketers for the promotion of energy-friendly consumer behaviour.     

When distraction may be a good thing: The role of distraction in low-fit brand extension evaluation

This study examines the effect of distraction after being exposed to information on low-fit brand extension evaluation. We show that when consumers are distracted (vs. engaging in deliberate thinking) after encoding extension information they evaluate low-fit brand extensions more favorably. Findings suggest that distraction can help establish connections of remotely associated information between a parent brand and a low-fit extension. We also find that the effect of distraction is contingent on the individual characteristic of consumers' agency–communion orientation. The core effect holds strongly for consumers high in communion orientation, but not for those with an agency orientation. Finally, we examine how marketing communication strategies (i.e., manipulating product message construal level) interact with distraction to influence consumer perceptions of low-fit brand extensions. Theoretical and practical implications of these findings are discussed.     

Persist or let it go: Do rational entrepreneurs make decisions rationally?

We theorize that both highly rational entrepreneurs and entrepreneurs with a high need for cognitive closure (NFCC) are likely to put more emphasis on retrospective factors (period and degree of underperformance, personal investments) and less on prospective factors (risk of going into default, potential for growth, personal options) when deciding whether to persist with an underperforming venture. Our findings from three discrete choice experiments with three independent samples of entrepreneurs (a sample of 176 Australian entrepreneurs; a narrow-replication with 128 Australian entrepreneurs; and a quasi-replication with 157 United Kingdom entrepreneurs) consistently show that entrepreneurs who perceive themselves as rational do not always demonstrate rational behavior and entrepreneurs with a high NFCC put more emphasis on retrospective factors in persistence decisions. Important theoretical and practical contributions flowing from our study are shared in the concluding section.     

普通消费者口碑和专家评论对消费者购买决策的影响研究

在线评论作为营销信息中新的要素,已成为当下消费者购买产品或服务时的重要因素。文章根据获得诊断性模型和调节导向理论,引入自我调节导向作为调节变量,探讨在线评论信息源对品牌评价和购买意愿的影响。文章采用情境模拟实验方法,考察了普通消费者口碑和专家评论对消费者的品牌评价和购买意愿具有不同的影响。具体来说当消费者处于促进调节导向时,普通消费者口碑比专家评论更容易使消费者产生良好的品牌评价和购买意愿;当消费者处于预防调节导向时,专家评论比普通消费者口碑更容易使消费者产生良好的品牌评价和购买意愿,其中感知诊断性在这个过程中起到中介作用。文章整合了不同领域的理论,拓宽了不同来源的在线评论对消费者影响的理解力,而且研究结论对网站的营销人员如何管理在线评论有一定的启示意义。     

Eat,drink, and create content: a multi-method exploration of visual social media marketing content

As visual social media marketing (VSMM) content continues to increase in popularity, it is imperative for marketers to understand the elements of such marketing efforts that capture consumers attention. Across three empirical studies, the researchers use eye tracking technology and a scenario-based experimental design to explore the impacts of the use of figurative language (i.e., antithesis and alliteration) and Snapchat’s drawing feature on consumers attention to the verbal element (i.e., caption) of company-generated and consumer-generated VSMM content (i.e., snap), specifically, on Snapchat. Results demonstrate the positive impact of the use of figurative language on consumers attention to the caption in VSMM content. Furthermore, consumers attention to the caption in company-generated (consumer-generated) VSMM content is greater when the caption uses antithesis (alliteration). Finally, the presence of pictorial information (i.e., drawings) in VSMM content may impact the relationship between the use of figurative language (i.e., alliteration) and consumers attention to the caption in consumer-generated VSMM content. Implications for marketing and advertising theory and practice are discussed.     

Who needs a reason to indulge? Happiness following reason-based indulgent consumption

While consumers and marketers perpetuate the lay theory that indulging with a reason is more pleasurable and makes everyone happier, this research identifies a condition under which indulging without a reason “feels right” and produces a more positive emotional reaction. The authors show that indulging with or without a reason and consumers' trait self-control interact to influence happiness felt following an indulgent purchase. While high self-control consumers are happier when they have a reason to buy indulgent products (e.g., when they can justify the indulgence), low self-control consumers are happier when they do not have a reason to indulge. That is, indulging with a reason is less pleasurable for consumers with low self-control. This effect on happiness has an impact on downstream judgments about the product and yields important implications for consumer welfare as well as marketing managers. Across four studies we show the effect on consumption happiness, examine consequences of the effect, and report evidence for the underlying process.