Do Negative Consumption Experiences Hurt Manufacturers or Retailers? The Influence of Reasoning Style on Consumer Blame Attributions and Purchase Intention

Negative consumption experiences adversely influence consumer perceptions of manufacturers and retailers. The author theorizes and finds that analytical thinkers are more likely than holistic thinkers to attribute the cause of the negative consumption experience to the manufacturer, resulting in lower repurchase intention of the manufacturer brand. In contrast, holistic thinkers are more likely than analytical thinkers to attribute the cause of the negative consumption experience to the retailer, resulting in lower repurchase intention at the retailer. These findings are important to marketing managers at both ends of the marketing supply chain—manufacturers and retailers—who deal with consumers with diverse cultural backgrounds.     

Do Immigrant Nurses in Canada See a Wage Penalty? An Empirical Study

The purpose of this study is to analyse the labour market for female immigrant nurses in Canada and to address the following question: does a nurse with foreign educational credentials have the same earning potential compared with a nurse who was educated in Canada? This is part of a more general question on economic discrimination against immigrants. Using data from the confidential master files of the 2001 Canadian Census on Individuals, this study finds that nurses educated outside of Canada do face wage penalties. This indicates that their credentials might not be fully recognized and/or valued in the Canadian labour market for registered nurses. This result is important to the business world since it suggests the possibility of a general finding that immigrant credentials may not be readily transferable and compensated in a new country. This can result in qualified workers not being able to gain meaningful employment and this source of labour might not be adequately used to fill jobs in industries facing labour shortages.     

The Hare and the Tortoise: Do Earlier Adopters of Online Channels Purchase More?

Earlier adopters of a product or service tend to be more valuable than later adopters. Does this empirical generalization equally apply to earlier adopters of a multichannel retailer's new online channel too? This study segments customers on the basis of their responses to a new online channel and investigates the effects of their online channel adoption on purchase volumes across segments. The data cover 12.5 years of purchase history and individual transactions at a large multichannel French retailer of natural health products. Contrary to conventional wisdom, it is not innovators or early adopters, but rather the late majority segment that purchases more than the other segments, both before and after online adoption. Adoption of the firm's new online channel does not influence purchase volumes of heavy shopper segments (late majority and innovators), whereas light shopper segments tend to increase their purchases after adopting this new channel.     

The Dynamics of Online Purchase Visits: Inertia or Switching?

This paper studies the dynamics of online purchase patterns, focusing on the impact of the channel used on conversion probability, as well as the transition of channel use over time. A novel data set from a major Chinese online travel agency is used for analysis, consisting of four months of data with 24,337 store visits through three types of channels: direct visit, search advertising and referral. Results of a Bayesian multinomial logit model show that the search channel significantly affects consumers’ conversion probability, and show a high degree of inertia in channel use. This finding contrasts sharply with suggestions of previous research that most future purchases will converge to the direct-visit channel.     

Drivers of SaaS-Adoption – An Empirical Study of Different Application Types

Software-as-a-Service (SaaS) is said to become an important cornerstone of the Internet of Services. However, while some market research and IT provider firms fervently support this point of view, others already conjure up the failure of this on-demand sourcing option. Oftentimes based on weak empirical data and shaky reasoning, these inconsistent perspectives lack scientific rigor and neglect to present a more differentiated picture of SaaS-adoption. This study seeks to deepen the understanding of factors driving the adoption of Software-as-a-Service (SaaS). Grounded in transaction cost theory, the resource-based view, and the theory of planned behavior, we develop a research model to assess SaaS-adoption at the application level. Survey data of 297 firms in Germany with 374 valid response items across different industries were collected to test the theoretical model. Our analysis revealed that patterns on the decision on SaaS-adoption differ across application types. Social influence, attitude toward SaaS-adoption, adoption uncertainty, and strategic value turned out to be the strongest and most consistent drivers across all application types. Furthermore, we found that firm size does not matter in SaaS-adoption, since large enterprises and small- and medium-sized companies had similar adoption rates. Overall, this study provides relevant findings that IT vendors can use to better appeal to potential companies that consider adopting SaaS.     

Are Consumers International? A Study of CSR,Cross-Border Shopping,Commitment and Purchase Intent among Online Consumers

The purpose of this study is to investigate purchase intent in online marketplaces as an international phenomenon. A profile of the international online consumer is established, taking into account factors such as indicators of socio-economic development of their home countries. A structural model is analyzed using LISREL, testing the importance of CSR, the propensity to buy from international online vendors and commitment with purchase intent as the dependent variable. A cross-national dataset of 804 respondents from 57 countries is analyzed, showing that CSR activities alone do not increase purchasing intent, but they do when mediated by commitment.     

Why Do Microfinance Institutions Go Green? An Exploratory Study

In recent years, in addition to financial and social objectives, the microfinance industry has started to look at its environmental bottom line. The objective of this paper is to identify why microfinance institutions (MFIs) decide to go green. Data was collected through a quantitative survey of 160 MFIs and qualitative semi-structured interviews of 23 MFIs’ top managers. Basing our analysis on the model of ecological responsiveness developed by Bansal and Roth (Acad Manag J 43(4):717–736, 2000), we discover that MFIs for which legitimation (stakeholder pressure) is the dominant driver tend to adopt a defensive approach and set up more superficial negative strategies to appear green. In contrast, MFIs for which social responsibility is the dominant driver tend to be more proactive and innovative and develop adapted financial and non-financial services to promote environmentally friendly practices.     

Do Firms Spend More on Suppliers That Have Environmental Expertise? An Empirical Study of U.S. Manufacturers’ Procurement Spend

Stakeholders expect focal firms to improve their environmental performance. While firms may be able to accumulate the environmental expertise needed to achieve this goal internally, doing so may require significant time and resource commitments. Alternatively, buyer firms can leverage their suppliers’ existing environmental expertise and gain access to such expertise when they purchase products and services from these suppliers. The purpose of this study was to develop and test theory regarding under what conditions suppliers’ environmental expertise influences a buying firms’ procurement spend with these suppliers. We ground our study in transaction cost economics and agency theories and empirically test our hypotheses using a unique buyer–supplier dyadic data set. We find that buyer firms are willing to increase their overall business spend with suppliers that have strong environmental expertise, particularly when the buyer firms are more profitable and have higher levels of absorptive capacity. However, we find the opposite effect when the buyer firm’s executive compensation is linked to the firm’s environmental, social, and governance (ESG) performance. Likewise, we also find that the buyer firm’s environmental concern ratings negatively moderate the relationship between the supplier’s environmental expertise and the buyer’s procurement spend with the supplier.     

Organizational Virtue and Performance: An Empirical Study of Customers and Employees

This paper offers the first large-scale empirical study of organizational virtue as perceived by both internal and external stakeholders (employees and customers, respectively) and of the links between these virtues and organizational outcomes such as identification, satisfaction, and distinctiveness. It takes a strategic approach to virtue ethics, one that differs from a more traditional Aristotelian concept of virtue and from Alasdair MacIntyre’s manner of distinguishing between internal and external goods. The literature review compares three different perspectives on the empirical study of organizational virtues, taken by virtue theorists, POS scholars, and strategy scholars. The main study describes an empirical research undertaking that involved the analysis of 2548 usable questionnaires administered to employees and customers of seven organizations in the U.K. A structural equation model was used to test the linkages of the six dimensions of organizational virtue (empathy, warmth, integrity, conscientiousness, courage, and zeal) to satisfaction, identification, and distinctiveness. All the links were significant, with the strongest between virtue and identification. For employees, identification (with a firm) was driven most significantly by integrity, whereas customers’ identification was principally influenced by empathy. The empirical finding also sounds an alarm bell to the global firms who focus on creating a differentiated image based on CSR in the hope that it will lead to satisfaction. The results lead to a discussion of how companies might build favorable stakeholder perceptions of key dimensions of virtue that most shape their identification and differentiation in the marketplace.     

How Do Customers Alter Their Basket Composition When They Perceive the Retail Store to Be Crowded? An Empirical Study

Using data from a large-scale field study, we show that (perceptions of) crowding change(s) the composition of a consumer's shopping basket. Specifically, as shoppers experience more crowding, their shopping basket contains (a) relatively more affect-rich (“hedonic”) products, and (b) relatively more national brands. We offer a plausible dual-process explanation for this phenomenon: Crowding induced distraction limits cognitive capacity, increasing the relative impact of affective responses in purchase decisions. As we are the first to show that level of crowding relates to what shoppers buy (at both product and brand level), the implications of these effects for retailers are discussed.     

Will Consumers Purchase Stevia as a Sugar Substitute?: An Exploratory Study on Consumer Acceptance

Stevia rebaudiana Bertoni, commonly known as Stevia, is an ancient sweet herb native to Paraguay. The plant, especially the leaves, has a sweetening effect 300 times sweeter than saccharose. Malaysia has taken a particular interest in promotion of Stevia derivatives as a precautionary measure to combat chronic diseases. This study aims to investigate factors that influence the acceptance of Stevia-based products by consumers. Face-to-face interviews were conducted using a structured questionnaire with 900 consumers from Klang Valley areas. The results revealed that most of the respondents were willing to use Stevia-based products as a substitute for sugar. There was also a significant relationship between level of education and consumer’s willingness to change for Stevia-based products. Health benefits, promotion, availability, and price were found to be the most influential factors toward acceptance of Stevia-based products by consumers. An effective promotion is necessary to increase consumer’s awareness toward a more healthy diet.     

Relationship Marketing and Repurchase Intention in Ghana’s Hospitality Industry: An Empirical Examination of Trust and Commitment

Globally, the hospitality industry ranks as one of the most competitive business sectors, with competing organizations relying on a cocktail of strategies such as relationship marketing to stay relevant, and attract and retain customers. This article examines how relationship marketing impacts trust, commitment, and repurchase intension of customers in the Ghanaian hospitality industry. The data collection questionnaire was administered to 167 randomly selected customers at a four-star hotel in the Accra metropolis. The data analysis used structural equation modeling to ascertain the significance of the relationship that exists between trust, commitment, and customer repurchase intension regarding the relationship marketing practices of hoteliers in Ghana. The findings show a positive and significant relationship between trust, commitment, and repurchase intension. The study also revealed that commitment partially mediates the association between trust and repurchase intension. This implies that both trust and commitment are necessary to attain repurchase and, eventually, loyalty.     

Who Says There is an Intention–Behaviour Gap? Assessing the Empirical Evidence of an Intention–Behaviour Gap in Ethical Consumption

The theories of reasoned action and planned behaviour (TRA/TPB) have fundamentally changed the view that attitudes directly translate into behaviour by introducing intentions as a crucial intervening stage. Much research across numerous ethical contexts has drawn on these theories to offer a better understanding of how consumers form intentions to act in an ethical way. Persistently, researchers have suggested and discussed the existence of an intention–behaviour gap in ethical consumption. Yet, the factors that influence the extent of this gap and its magnitude have not been systematically examined. We, therefore, contribute to the debate on the intention–behaviour gap by reviewing the empirical TRA/TPB studies that have assessed both intention and behaviour in ethical contexts. The findings from our review show that few studies assessed the intention–behaviour relationship and as a result, there is limited empirical evidence to date to quantify more accurately the intention–behaviour gap in ethical consumption. Our second contribution aims to provide an empirical case study which assesses the magnitude of the intention–behaviour gap in the context of avoidance of sweatshop clothing and to assess the roles of planning and actual behavioural control in potentially reducing the intention–behaviour gap. The findings of our case study suggest that there is indeed a large gap between intention and behaviour, and we conclude by calling for more empirical longitudinal studies to assess the complex nature of the relationship between intention and behaviour.     

Why Do Consumers Go Internet Shopping Again? Understanding the Antecedents of Repurchase Intention

Consumer intention of reusing online websites for shopping is a major consequence for an electronic commerce company's profitability. Therefore, understanding the factors that influence online customers' repurchase intentions is of great importance to the EC companies. Drawing on specific dimensions of Social Cognitive Theory (SCT), Information Systems continuance model, Technology Acceptance Model (TAM), and empirical findings from prior studies as antecedents, the related factors were adapted and integrated within the context of Internet shopping repurchase intentions and were tested in a field study. Empirical data for hypotheses testing were collected from the online virtual store of 7-ELEVEN in Taiwan, yielding 444 valid samples. The results show that online consumer repurchase intention is determined by satisfaction, perceived usefulness, perceived ease of use, and Internet shopping self-efficacy. Satisfaction is influenced by perceived usefulness, perceived ease of use, confirmation, and positive Internet shopping experience. Perceived usefulness, in turn, is influenced by behavior modeling, positive Internet shopping experience, Internet shopping self-efficacy, and confirmation. Confirmation is affected by positive Internet shopping experience and behavior modeling. In addition, confirmation has significant effects on perceived ease of use. Finally, positive Internet shopping experience appeared to have a significant impact on Internet shopping self-efficacy. From the empirical data, meaningful findings and conclusions are derived, and suggestions for future research are also discussed.     

Which Targets Stimulate Cross-border Acquisitions? An Empirical Investigation of Industrial Organization and Trade Factors within a Competition Framework of International and Domestic Acquisition Targets

This paper provides new evidence on the determinants affecting cross-border acquisitions in a small open economy such as that of Greece. Specifically, our paper tests two sets of hypotheses: Firstly, factors stemming from industrial organization (IO) theory, such as market structure indicators of takeover targets, positively affect the decision of a foreign Transnational Corporation (TNC) to enact a takeover in Greece. Secondly, factors stemming from integration and trade theory, such as openness of targets, increase their significance in the development of international takeovers, due to the active participation of the country in the European integration process. Using a statistical model of “international vs. national targets” and an original data set of 229 targets during the 1989–1998 period, the paper finds, most importantly, that market structure indicators such as market share of targets have a positive effect on the acquisition decision of foreign TNCs. Also, some control variables such as firm size and liquidity of targets are found to be statistically significant. This specific pattern of foreign target characteristics is because cross-border acquisitions, which have been emerging as a new generation of FDI after the integration of Greece into the European Union (EU), are surprisingly still inclined to prefer the market-seeking motive to the efficiency-seeking motive.

Do You Recognize Its Brand? The Effectiveness of Online In-Stream Video Advertisements

The effects of ad length, ad position, and ad-context congruity on brand name recognition in an online in-stream video advertising context were investigated. Video ads and video programs were selected from YouTube as stimuli. Findings from a laboratory experiment indicate that long ads enhance recognition. Mid-roll ads lead to better brand name recognition than pre-roll and post-roll ads because of attention spillover. However, a mid-roll ad is futile when the ad is unrelated to the video content. In contrast, post-roll ads can improve brand name recognition in an incongruent context.     

Something Free or Something Off? A Comparative Study of the Purchase Effects of Premiums and Price Cuts

As an alternative to promotional price cuts, retailers and manufacturers often rely on non-price promotion techniques, such as premium promotions, where consumers receive a free gift with the purchase of a product. We compare the effectiveness of premiums to that of price cuts, and study moderators of this comparative premium effectiveness. We use data from a large online shopping simulation study with more than 2,000 participants to model consumers’ purchase decisions in response to premiums and price cuts. Results indicate that the impact of premiums on purchase behavior is systematically lower than that of equivalent price cuts. However, a premium’s smaller sales impact may be offset by a cost advantage. This is especially true for private label brands where the premium’s purchase effects do not differ too much from those of a price cut. We calculate how large the cost advantage has to be for a premium to be more profitable than a price cut, and show that premiums entail risks as well as opportunities, for both manufacturers and retailers.