A game theoretic approach for analyzing the competition between national and store brands by considering store loyalty

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Creation of consumer loyalty and trust in the retailer through store brands: The moderating effect of choice of store brand name

Within the current economic context, store brands play an important role in differentiation strategies based on assortment and positioning in terms of distributor prices. To begin with, this study identifies three determining aspects of retail loyalty and trust: satisfaction with price levels, the perceived image of the assortment and loyalty to the store brands (SB). Secondly, this study proposes a theoretical relational model among the aforementioned aspects. Finally, this study analyzes the moderating role that the strategy of choosing SB name (umbrella brand label vs. brands different from the label brand) plays in the relationship between loyalty to SB and loyalty to and trust in the retailer. By including this moderating variable, we seek to contribute to current academic research and to provide insights into the importance that SB strategy (label vs. own name) has for the effect of loyalty to SB on the relative results of the retail company. Our research results show that making the umbrella SB name the same as the label brand name increases the positive effect of customer loyalty to SB on loyalty to the retailer, but not the effect of trust on this loyalty compared to chains that use SB names different from those of the label. These results have important implications for management.     

How category characteristics affect the number of store brands offered by the retailer: a model and empirical analysis

Our research examines why retailers offer, not one, but multiple store brands in some product categories. More specifically, we are interested in how certain product category characteristics affect the number of store brands. We model a product category consisting of two incumbent national brands that may differ in strength. The retailer may introduce one or two store brands depending on which maximizes category profits. Our analysis suggests that the retailer is likely to carry two store brands in categories where (i) the national brands are similar in strength; and (ii) the price sensitivity between the national brands is low. Interestingly, the conditions that support the introduction of more than one store brand are quite different than the conditions that would facilitate the introduction of additional national brands. We provide empirical evidence that support our model-based predictions.     

A comparison of determinants of consumer satisfaction/dissatisfaction with the performance of apparel products between South Korea and the United States

The purpose of the present study was to identify the determinants of consumer satisfaction and dissatisfaction (CS/D) with the performance of apparel products at the purchase and product-consumption stages for Korean consumers, and to examine if these determinants were similar to those for US consumers. Results showed that at the purchase stage, the three variables, found significantly related to CS/D at purchase for US consumers, were also significant for Korean consumers. These three at-purchase variables were: perceived at-purchase performance, performance expectation and experience-based norm disconfirmation (i.e. the discrepancy between consumers’ experience-based norm and their perception of product performance at purchase). When the variables related to CS/D at the product-consumption stage were examined, both similarities and differences were found between Korean and US consumers. For both countries, perceived consumption performance and satisfaction at purchase were significantly related to CS/D at the product-consumption stage. Differences were found in the effects of expectancy disconfirmation and performance expectation on CS/D at the product-consumption stage. Expectancy disconfirmation is the discrepancy between consumers' performance expectation and their perception of product performance after consumption. Expectancy expectation was found to be a significant determinant of CS/D for US consumers, but was not a determinant for Korean consumers. Performance expectation, which was found not to be a significant determinant of CS/D for US consumers, was a significant determinant for Korean consumers.     

Investments in consumer relationships: a critical reassessment and model extension

This study is a critical reassessment and extension of De Wulf et al.'s (2001) framework investigating retail investments in consumer relationships. Their initial model relates four types of relationship marketing efforts to perceived relationship investment, in turn influencing relationship quality and ultimately behavioural loyalty. Based upon signalling theory, we extend this model by introducing product and service efforts as additional antecedents. Moreover, in contrast to the use of self-reported measures in the initial model, we apply customer database information in order to measure the construct of behavioural loyalty. Based upon 187 consumers reporting on their relationship with a Belgian apparel retailer, the SEM results provide guidelines for retailers how to increase the quality of their relationships with consumers by strengthening consumers' perceptions of relationship investment.     

Effects of in-store information quality and store credibility on consumer engagement in green retailing

Literature has reported that store-level information is crucial in determining consumer engagement with green stores. This study examines the effects of in-store (green) information quality on consumer engagement behaviours and mediating effects of store credibility. Moreover, the study reveals whether consumer passion for the environment moderates the effect of in-store (green) information quality on store credibility. Statistical analyses of useable data from 763 respondents examined the relationships. Credibility emerged as a key mechanism to enhance the effects of information quality on consumer engagement. Thus, this study extends theoretical discussions on information quality, consumer passion, and consumer engagement for green retailing.     

Motivating purchase of private brands: Effects of store image, product signatureness, and quality variation

This study examines the effects of intangible extrinsic cues on consumer quality perception and purchase intention of private brands. We find that store image and product signatureness enhance quality perception and purchase intention of private brands while quality variation reduces both outcomes. All effects of the three extrinsic cues on purchase intention are partially mediated by quality perception. In addition, consumer value consciousness strengthens the relationship between quality perception and purchase intention of private brands.     

A comparison of parents' and children's knowledge of brands and advertising slogans in the United States: implications for consumer socialization

Research in the area of consumer socialization suggests that parents act in an agent–learner relationship with their preadolescent children and have the greatest influence on their young children's purchase behaviour. The present study examines this assumption in light of changes in family roles and composition, media exposure and marketing efforts aimed at children. A cognitive recognition test of advertising slogans drawn from recent television commercials is used to determine knowledge levels of a sample of preadolescent children and their parents. Results suggest that children, beginning at age nine, have as much knowledge of advertising slogans as do their parents, even in product categories targeted at adults.     

A study of the impact of Corporate Social Responsibility and price image on retailer personality and consumers' reactions (satisfaction,trust and loyalty to the retailer)

This study investigates the impact of a retailer's Corporate Social Responsibility (CSR) policy and its price image on retailer personality, along with the impact of these two variables on the consequences of retailer personality: consumers' satisfaction, trust and loyalty toward the retailer (measured by their attitude and future behavioral intentions). Data were collected on a convenience sample of 352 consumers of a French grocery retailer. Using Partial Least Squares analysis (PLS), we show that perceived Corporate Social Responsibility and price image have a significant positive/negative influence on retailer personality traits (“agreeableness” and “conscientiousness”/“disingenuousness”) and that Corporate Social Responsibility has also a significant positive influence on the “sophistication” personality trait. For the consequences examined (satisfaction, trust and loyalty to the retailer), we show that Corporate Social Responsibility, price image and retailer personality have a direct or indirect impact on these dependent variables.     

The impact of weather on consumer behavior and retail performance: Evidence from a convenience store chain in China

Despite extensive use of weather data to adjust replenishment and inventory strategies in the retail industry, these companies do clearly know the effect of weather on consumer behavior and retail performance. How does weather affect consumers' purchasing behavior and thus retail performance? We study empirically these questions by analyzing more than 6 million transactions made by more than 1.62 million unique consumers at 146 convenience stores in a convenience store chain in China. We choose sun, rain, temperature, and air quality index as the main weather variables. We use the average number of items per order and the average price of each item in each order as indicators of consumer behavior, and use store daily sales as an indicator of retail performance. We found that under rainy weather, people will buy more products with higher item prices in one order. When temperature rises, people will buy fewer products with a lower item price in one order. In addition, sunny weather and rainy weather have a positive impact on daily sales than cloudy weather. Air quality has a negative impact on daily sales, while temperature has a positive impact on sales. Finally, we study the impact of weather on different product categories. We find that the results depend on the product category characteristics.     

Retail market segmentation: the use of consumer decision-making styles,overall satisfaction and demographics

The objective of the current study was to determine segments of younger and older retail shoppers on the basis of the use of decision-making styles, overall satisfaction and demographic factors. To collect data for this study a structured questionnaire was administered to a sample of 894 urban shoppers residing in two cities in Botswana whose ages were between 18 and 64 years. The shoppers were intercepted in the shopping malls. The unique aspects of this study include the analysis of age differences in the factor structure of consumer decision-making styles as well as the investigation of hybrid segments of the general shopping public using consumer decision-making styles in conjunction with overall satisfaction and demographic factors. Eight decision-making styles emerged for both younger and older shoppers. However, only three styles being Time energy conserving, Perfectionism, and Habitual buying emerged in both age groups. The key findings also reflected that both younger and older shoppers were represented in three segments which were labelled as: uninhibited, functional and laid-back shoppers. Younger shoppers were also classified as recreational quality seekers whilst older shoppers were labelled as novelty–quality seekers. The use of decision-making styles varied significantly across the four segments in each age group. Further differences were observed based on overall satisfaction, education, marital status and income subject to the age group. These results represent a solid attempt to extend knowledge of shopping behaviour in a modern retail sector within a developing country, which is essential for retail mix development and positioning strategies.     

The picture of luxury: A comprehensive examination of college student consumers' relationship with luxury brands

This study examines college student consumers' relationship with luxury brands through two studies. Study 1 analyzes collages to determine what represents luxury to them, how consumers perceive their relationships with luxury, and who they are as luxury consumers. Study 2 analyzes qualitative interviews to validate the findings of Study 1 and to add further insights. Results of Study 1 suggest that college student consumers represent a vibrant segment in the luxury market. These consumers perceive a wide variety of products and brands as meeting their luxury needs. They are currently interested in luxury and their potential will only increase as their incomes do. Results of Study 2 confirms their views of luxury and emphasizes the critical roles social media, peers, and family play in influencing college student consumers' luxury consumption and provide insights for how to build an emotional bond with them. Luxury marketers can build brand relationships with college student consumers by offering them entry-level products as they are current luxury consumers and see their consumption expanding in the future. Given that college student consumers are both vulnerable and savvy in recognizing when they are being manipulated, caution needs to be taken in approaching this segment in relationship-building efforts.     

The influence of eco-label knowledge and trust on pro-environmental consumer behaviour in an emerging market

Consumers are increasingly concerned about the negative environmental implications of purchasing goods, which in turn shape their behaviour. Yet, there are indications that consumers do not always act on these concerns, causing an attitude–behaviour gap. For consumers to make ecologically responsible purchases, they need relevant product environmental information. Therefore, marketers and firms are increasingly integrating more detailed environmental information in their offerings, including eco-labels with externally validated information. This study integrates consumers’ knowledge and trust in eco-labels with their environmental knowledge to determine how these affect pro-environmental consumer behaviour (PECB). The findings suggest environmental and eco-label knowledge is positively associated with attitudes towards the environment, and that positive environmental attitudes and trust in eco-labels affect PECB. This implies that firms, policy-makers and accreditation organisations (i.e. labelling) can educate consumers about eco-labels and the environment to increase PECB. Such strategies will also build consumer knowledge and trust in eco-labels, necessary for facilitating PECB.     

A higher-order model of consumer brand engagement and its impact on loyalty intentions

Consumer brand engagement is increasingly gaining popularity among practitioners and academics as a prominent consumer-brand relationship construct. The emergent literature on consumer brand engagement, largely conceptual, offers various definitions of the construct, though without much consensus. We offer a novel higher-order model of consumer brand engagement that we derive from organizational psychology. We adapt the concept of employee engagement and examine its factorial validity in a consumer-brand relationship context, defining consumer brand engagement as consumers' positive, fulfilling, brand-use-related state of mind that is characterized by vigor, dedication and absorption. We develop and empirically test a three-dimensional model of brand engagement, outlining relevant antecedents and outcomes. More importantly, we assess the managerial utility of consumer brand engagement by examining its impact on consumer loyalty intentions. We additionally compare the explanatory capability of brand engagement relative to traditional consumer judgments of value, quality and satisfaction. A survey of 408 mobile phone consumers from India provided data for empirical testing. The results support the three-dimensional factor structure of consumer brand engagement. Brand engagement not only exerts a significant impact on loyalty intentions, but also explains significantly more variation in the outcome in addition to the variation explained jointly by value, quality and satisfaction. Theoretically, we offer a holistic multi-dimensional measure of consumer brand engagement, and examine key nomological relationships. Managerially, we demonstrate the explanatory capability of brand engagement in explaining consumer loyalty intentions, offering a useful tool in the relationship-building repertoire of managers.     

Antecedents and consequences of consumer satisfaction/dissatisfaction with the performance of apparel products at purchase and after consumption: a comparison of male and female South Korean consumers

The purpose of the study is to investigate antecedents and consequences of consumer satisfaction/dissatisfaction (CS/D) with the performance of apparel products at purchase, and after consumption, for male and female South Korean consumers. An experimental research technique with a 2 × 2 × 2 between‐subjects factorial design with gender (female, male), expectation for future performance, (high, low) and perception of product consumption performance (good, poor) was used. Both similarities and differences between genders were found. Implications and applications of results are discussed.     

The Precursor Role of Cooperation,Coordination, and Relationship Assets in a Relationship Model

ABSTRACT

Purpose: The primary purpose of this study is to test the importance of activity-oriented precursors in a relationship model. This study supports the theoretical view that firms create trust and knowledge through activities and these activities make a commitment decision less risky (Johanson & Vahlne, 2009). The secondary purpose of this study is to collect and examine data from interorganizational relationships in both Sweden and the United States. By including data from two countries, results will be more generalizable. Results can also lead to several managerial implications.

Methodology/approach: This study focuses on a sample of distributors from both the United States and Sweden. One hundred sixty-one usable surveys were returned from the U.S. survey, for a response rate of 27%. One hundred twenty-four usable surveys were returned from the Swedish survey, for a response rate of 21%. The PLS-SEM method was used to examine the model’s constructs.

Findings: Similar to past research results show that trust and commitment have a direct positive influence on satisfaction, and that trust also has a direct positive influence on commitment. However, this study uniquely supports four out of six newly tested hypotheses. Both cooperation and relationship assets have a direct positive influence on commitment. Cooperation has a direct positive influence on trust and commitment. Relationship assets have a direct negative influence on trust but a direct positive influence on commitment. Surprisingly, two hypotheses were not supported: Coordination did not have a significant relationship with either trust or commitment.

Research implications: Managers who want to achieve a satisfactory relationship based on trust and commitment need to prioritize their attention toward cooperation. They should also be aware that participation in joint activities (i.e., coordination and relationship investments) does not guarantee higher levels of trust or commitment in the relationship. It is the quality of the joint activities and the how dependent firms are on each other and not just participation in joint activities that are likely to create higher levels of trust or commitment. The quality of coordination and manageable levels of dependence may counteract the higher costs associated with joint activities compared to the costs associated with cooperation. Managers may be wise to not make major commitments to other firms unless high quality joint activities have created knowledge and trust between firms. Originality/value/contribution: The model adds the joint activity-oriented antecedents associated with collaboration which is essential to a successful relationship. Because of the high failure rate of collaboration may be due to cooperation and coordination failures and because these two constructs are underspecified in interorganizational research, this study is unique in examining activity-oriented antecedents in a trust/commitment model of relationship satisfaction in a cross-cultural context (i.e., with U.S. and Swedish samples).     

Using food pictorial metaphor in the advertising of non-food brands: An exploratory investigation of consumer interpretation and affective response

Using visual metaphors in ads is one of the communication techniques that brands have adopted to grab consumers' attention. The phenomenon of using food pictorial metaphors in non-food brand ads has spread in recent years, and given food's sensory nature, using this cue for a non-food brand can affect the way in which consumers interpret such ads. This research seeks to understand whether and how consumers perceive and process such a rhetorical figure. An exploratory qualitative approach is taken in two studies by using semi-structured interviews to explore consumers' reactions to different types of ads with food visual metaphors. The results reveal the predominance of congruency as a key processing mechanism of the ad at three levels: (a) between the food pictorial metaphor and the brand product category, (b) between the food visual metaphor and the brand itself, and (c) between the visual metaphor and the headline. Moreover, the food appetizing dimension, ad creativity, aesthetic appreciation of the ad, and consumers' aesthetic sensitivity are all revealed to play major roles in attitudes toward the ad.     

‘You really are a great big sister’ – parasocial relationships,credibility, and the moderating role of audience comments in influencer marketing

ABSTRACT

This study examines the moderating role of audience comments in influencer marketing. A YouTube vlog entry by a social media influencer featuring the endorsement of a brand was studied, and an experimental design featuring two conditions related to audience comments was created. The results indicate that a parasocial relationship with the influencer builds the perceived credibility of the influencer, while comments by other audience members moderate the effect. Influencer credibility positively affects brand trust and purchase intention. The findings enhance the understanding of the role of an active audience in influencer marketing.     

Where the twain shall meet? A study of best practices to resolve retailer–supplier acrimony in post-audit recovery of trade promotion dollars

Abstract

Deductions and claims to recover trade promotions incentives through post-audit of previous years’ transactions is a highly contentious but prevalent practice in the industry. Retailers, given their low margins of operations, are motivated to seek every opportunity to obtain extra incentives from suppliers to boost their profits. They often hire third-party post-auditors to scrub through all their transactions and “deal sheets” or supplier agreements to search for potential unclaimed trade promotion dollars promised by suppliers in prior years. Third party auditors have an incentive to also make dubious claims as they are compensated on contingency fees of a percent of claims recovered. Such practices lead to acrimony between retailers and suppliers. They often have differing viewpoints and opinions about the contextual terms of the trade promotion deals itself leading to an opinion “chasm” that is sometimes difficult to bridge. The resulting tension among retailers and suppliers, along with regulatory compliance under the Sarbanes–Oxley Act, and prevailing questions on the role and practices of post-auditors, motivated this study. Conducted over a 24-month period with extensive collaboration and research discussions between the study team and responsible managers from leading US retail and manufacturing companies. The distinctive mix of academic rigor and practitioner relevance was the hallmark of this study that involved three retail summits conducted with industry participants to discuss the research method and its resultant findings. Evidence suggests that transactional discrepancies will continue to happen, despite technological advances, because of large volume of transactions and multiplicity of complex trade promotion methods in vogue in the retail world. So, as long as there are claim opportunities, post-audit recovery practices will continue, confounding the darker side of the retailer–supplier relationship. Through a multi-stage and multi-level study, and data from a variety of sources, we identify best practices in post-audit recovery and suggest ways to reduce associated conflict and improve relationship satisfaction.     

Role of consumer health consciousness,food safety & attitude on organic food purchase in emerging market: A serial mediation model

The study aimed to investigate the direct and indirect impact of health consciousness (HCN) on the purchase intention (PIN) of organic food products in India – a rising hub of organic food consumption. For the indirect effect of health consciousness on the purchase intention, the study added the serial mediation of consumer attitude (ATT) (based on the Theory of Planned Behaviour) and food safety concern (FSC) as major constructs. There is a lack of empirical evidence on the mediating role of FSC in the impact of HCN on ATT or their PIN. Further in a developing country like India, there lacks a comprehensive study considering all the above four factors on organic food consumption. 438 useable responses were collected using the mall intercept method from purchasers frequenting five exclusive organic food stores in a metropolitan city in India. The hypotheses on direct and indirect effect of HCN on PIN and the serial mediation of FSC and ATT was tested using Structural Equation Modelling (SEM). CFA/SEM analysis upon establishing the conceptual model's goodness-of-fit, revealed the insignificance of FSC having direct impact on ATT and PIN and having any mediating role in the impact of HCN on ATT. There was also no significant impact of HCN on FSC. ATT too showed no significant mediating role in the impact of FSC on PIN. Nevertheless, both FSC and ATT together as serial mediators significantly influence the impact of HCN on PIN. Retailers and marketing professionals need to devise strategies based on the study's findings, emphasizing on the details of health benefits and improvements consumers will obtain upon consuming their organic products. Practical implications and theoretical contributions are discussed.