The country-of-origin lie: impact of foreign branding on customers’ willingness to buy and willingness to pay when the product’s actual origin is disclosed

If you think about the last television commercial for an Italian pasta brand you have seen, are you sure it is really Italian? In many cases, especially in the food sector, neither the company nor the product originate from the advertised country, meaning that the company is pursuing a foreign branding strategy and is trying to benefit from positive stereotypes customers have about the specific foreign country. By collecting both quantitative and qualitative data through a point-of-sale intercept survey, this article assesses the impact of alleged origins on customers’ willingness to buy (WTB) and willingness to pay (WTP) if the actual origin is disclosed. The sample consisted of 200 German customers who were asked to answer questions related to one of two hedonic products they had just bought. It is empirically shown that foreign branding has a positive impact on the brand’s performance. However, as soon as customers find out that they were misled with regard to the origin of the product, both their WTB and their WTP decrease. This study contributes to the knowledge on the role of products’ origins on customers’ WTB and WTP. In contrast to the vast majority of the studies in this field, the communicated origin of the product is based on a foreign branding strategy and not on the product’s actual origin. Consequently, it was possible to manipulate within-subject variables by disclosing the actual origin of the product. The results of our study suggest that foreign branding may be a successful strategy for companies to increase their customers’ WTB and WTP. At the same time, our results raise concerns about the suitability of foreign branding as a long-term marketing strategy, unless a company can successfully maintain its foreign image. Future research opportunities include the choice of consumers with a different cultural background, of other hedonic products or of utilitarian products.     

Determinants of green electricity adoption among residential customers in Germany

The label ‘green electricity’ is commonly used to refer to power generated from various renewable natural sources (e.g. wind). The present article develops hypotheses on the effects of eight attitudinal and perceptual characteristics of residential electricity consumers on their propensity to adopt a green electricity supplier. The hypotheses are tested empirically with data generated by means of a standardized telephone survey of 267 household electricity customers of a German regional power supplier. Questionnaire answers are augmented with information derived from the supplier's billing system on a participant's actual annual electricity consumption. Measurement and structural relationship models are obtained via Partial Least Squares analysis. Regardless of a person's level of actual power consumption in the recent past, propensity to adopt green electricity is most strongly influenced by general consumer attitudes towards environmental protection issues and social endorsement of green power use by close social contacts. In the subsample of participants with low actual electricity consumption, the propensity to purchase green energy is significantly positively affected by the weight an individual attaches to electricity prices in supplier selection decisions and the person's belief that his current electricity supplier takes over social responsibility. In contrast, in the subsample of respondents with high actual electricity consumption consumer's willingness to adopt green electricity is significantly enhanced by the degree of perceived dissimilarity among power company offerings. The identification of factors influencing the adoption of green electricity offers both practical implications for marketers of utilities and contributes to the academic knowledge base of a service domain characterized by increasing societal importance.     

The Power of Consequential Product Sounds

Building on theory in sensory marketing, mental simulation, and cue diagnosticity, this research investigates when consequential product sounds, or ancillary sounds generated by the normal operation of a product, can impact customers’ perceptions and behavioral intentions. Across four studies, we demonstrate how consequential product sounds coupled with imagery and phrasing of products in use can encourage customers into a mental space in which they can clearly envision using the product, also known as a process mindset. This mindset allows customers to use the amplitude of the consequential product sound to make inferences about its power, and subsequently enhances their willingness to pay for louder products (versus quiet products or those with no sound). Effects are attenuated when customers are encouraged into an outcome mindset, or a mental space in which they only consider the end benefits of using a product. We provide clear theoretical and managerial implications and, based on our findings, propose that retailers should consider incorporating consequential product sounds into customers’ shopping experiences, as these auditory cues can help to encourage a process mindset and thereby, positively impact customers’ willingness to pay.     

The role of customer gratitude in making relationship marketing investments successful

This paper recognises that customer loyalty is important for many competitive organisations, and that retail firms make investments to build and maintain loyal relationships with their existing and potential customers (e.g. loyalty programs). However, there has been little focus on the mechanisms by which these relationship investments operate to achieve customer loyalty. This paper examines one mechanism, namely customer gratitude, which works to make a firm’s relationship marketing investment a success or a failure. Using data from 1600 undergraduate students, this study empirically confirms the mediating role of customer gratitude between the customers’ perceptions a firm’s relationship marketing investments and customers’ perceptions of the value of the relationship with the firm. Further, a significant moderating effect of perceived benevolence on the relationship between customers’ perceptions a firm’s relationship marketing investments and customer gratitude was identified. For theorists, this customer gratitude model offers a better psychological explanation of how relationship marketing investments operate to improve the value that customers place on their relationships with retailers. Our research suggests that managers should invest resources to stimulate customer gratitude in order to build strong customer–seller relationships.     

The effect of augmented reality versus traditional advertising: a comparison between neurophysiological and self-reported measures

Despite the growing application of augmented reality in advertising, there is limited understanding about how customers respond to their interaction with the augmented reality advertising and how it differs from a standard paper-based advertising. Augmented reality ads are immersive, interactive, and lifelike, which means they may help companies create an emotional connection with their customers. The authors test if customers would respond in terms of emotional and affective intensity differently to augmented reality versus standard paper-based advertising. The results of two laboratory studies that consider physiological measures of arousal (galvanic skin response), self-reported measure of affect intensity and willingness to pay show that the higher willingness to pay for customers exposed to augmented reality as opposed to standard paper-based ads is driven by the physiological arousal, but not by the self-reported affect intensity and that processing fluency possibly underlies consumer’s enhanced emotional responses toward AR. These results suggest that replacing traditional advertisements with augmented reality advertisements enhances customer physiological responses and willingness to pay, with possible implications on customer segmentation and marketing communication.

     

Hide and uncover: the use of secrets in marketing

ABSTRACT

Amidst the forceful public demand for organisational transparency, there is an ambition to explore the limits of openness. What kind of information could and should firms keep secret and under which conditions? In this paper, we explore the limits of transparency in the marketing domain and develop a conceptual model of secrecy in marketing. We describe three modes of ‘secretive’ relations: between the brand and customers who know the brand secret (insiders), between the brand and customers from whom the secret is hidden (outsiders), and between insiders and outsiders. The effects of secrecy in marketing extend along with these three modes. First, secrecy creates value for insiders by reinforcing their connection to the brand. Second, it provokes outsiders’ curiosity, especially when the secret is related to a prominent brand. Finally, secrecy establishes insiders as an aspirational reference group for outsiders.     

Design and Communication of Ecological Content on Sustainable Packaging in Young Consumers’ Opinions

Many companies today have noticed the growing sensitivity of consumers to social problems, reflected by their interest in environmental concerns (e.g., the use of sustainable packaging materials that are eco-friendly and safe for consumers and the environment). Producers seek, often based on intuition rather than knowledge, eco-arguments for their packaging to affect the perceptions of buyers and to influence their behavior. Creating an effective design and content for environmental messaging on sustainable packaging may be a significant element in building a competitive advantage for both product and brand. Therefore, the main objective of this article will be to answer the following questions: What content do consumers expect for ecological messages on packaging? Which attributes of sustainable packaging have a positive impact on consumer behavior? In what ways are consumers’ purchasing intentions based on sustainable packaging? To answer these questions, the results of research conducted among Polish and French students will be presented.     

Exploring Individual Factors Affecting Business Students’ Willingness to Study Abroad: A Case Study From the Caribbean

Despite a low rate of student participation in study abroad programs in the Caribbean, there is insufficient research about the individual factors that help determine business students’ willingness to study or to participate in internship programs abroad. This study aims to explore business students’ attitudes toward study abroad. The positive perceptions of students toward study or internship abroad raises questions about individual factors for business students’ outflow to study or participate in an internship abroad. This study also explores business students’ preferences for short- and long-term international study or internship abroad, as well as certification programs in international business. Moreover, it provides some insight into the segments of business students that are more likely to support these programs.     

Willingness to act and environmentally conscious consumer behaviour: can prosocial status perceptions help overcome the gap?

Green marketing has not shown expected results in recent years in terms of real changes in behaviours, products and market structures as had been anticipated. Consumer behaviour plays an important role in making these changes happen, and drivers of environmentally conscious consumer behaviour still need to be examined. Concepts of ‘concern’, ‘information about environmental impact’ and ‘willingness to act’ are seen as the key predictors of environmentally conscious consumer behaviours. Although green marketing has been able to address genuinely concerned consumers, additional insights are needed regarding how to appeal to more mainstream consumers. Thus, this paper proposes an extended model of environmentally conscious consumer behaviour in which the gap between willingness to act and actual environmentally friendly consumption is addressed by the moderating role of ‘prosocial status’ perceptions. In the model, ‘concern’ is positively related to ‘willingness’ and both ‘willingness’ and ‘information’ are positively related to ‘behaviour’, while ‘prosocial status’ perceptions moderate ‘behaviour’. The model was verified using a quota sample of 319 general population respondents from a Central European country. According to data, ‘prosocial status’ perceptions increase the positive association between ‘willingness’ and ‘behaviour’ and could be incorporated into green products and advertising to signal personality traits like kindness and intelligence. One possible implication for marketers is that women have a higher average representation in groups of people with high prosocial status perceptions.     

Customer Service as a Strategic Weapon in International Operations

Customer service is an important competitive weapon in international markets becuase of its ability to acquire and retain overseas customers (especially intermediate firms) and, thus, enhance companies' revenues. Customer service is especially critical when foreign vendors are perceived as offering similar products at comparable prices, and purchasers have doubts about suppliers' willingness to carry out various post-purchase responsibilities. This paper reports the results of a study of the customer service programs of 151 U.S. non-service companies with international operations in five or more foreign countries. Sixty-nine firms responded to their customer service efforts in international markets and 81 addressed domestic customer service programs, allowing for comparisons to be made between international and domestic customer service operations. The study's results indicate that copmanies realize the importance of customer service in marketing to international customers, yet customer service for international markets is not considered to be appreciable more important than it is for domestic ones. Much similarity in perceptions about international and domestic customer service programs being in place. Whether this similarity occur from a careful analysis of domestic and international markets or simple expediency is uncertain.     

Customers’ judgments and misjudgments of corporate responsibility communication: A cross‐country investigation of the effects on confidence and trust within the banking sector

Customers’ judgment of corporate responsibility (CR) communication and the effect on confidence and trust as interlinked paradigms are intriguing areas of investigation from both theoretical and empirical perspectives. This research aims to clarify the nature of effective CR communication toward customers by identifying situations of over‐ and undercommunication of CR that might cause misjudgments and therefore lower the level of confidence among customers. The study also provides insights to better explain the link between confidence and trust related to customers’ perceptions of CR communication and compares different judgments and misjudgments regarding the banking industries in Italy and the United Kingdom. The study adopts real and fictitious bank case studies to conduct focus groups investigations of 160 millennial customers’ perceptions of CR communication and how it affects their level of confidence. The findings highlight the role of trust in making independent judgments on CR communications. Some similarities and slight differences in the impact of CR communication on confidence emerge between the countries and greatly depend on the customers’ level of trust in real banks and the influence of the industry effect characterizing the banking sector. This study provides fertile ground for future research into the implementation of a more effective and balanced CR communication strategy to increase customers’ confidence and into the understanding of which communication drivers, apparently independent of CR, affect trust in the long term.     

How price complexity takes its toll: The neglected role of a simplicity bias and fairness in price evaluations

Marketing managers commonly employ complex price plans. Surprisingly, limited and conflicting evidence reports how customers perceive and react to complex prices. This study examines perceptions about price complexity and shows that customers tend to prefer simple prices. Two experimental studies show that perceived price complexity negatively affects customer perceptions of price fairness and influences product choice because customers negatively evaluate the transparency of the firm's pricing practices and infer higher total prices. Customers comparing alternate offerings may therefore prefer simple over complex prices, even when the latter are less expensive. Study results suggest limiting price plan variations positively affects customer inferences about transparency and fairness, and thus customer choice.     

Comparison of localized and foreign restaurant brands for consumer behavior prediction

This study used two comparison studies to examine the potential brand perception of localized and foreign restaurants to predict consumer behavior. A total of 680 participants (e.g., 318 foreign restaurant customers and 362 localized restaurant customers) were included to discover and confirm the causal relationships among the quality of food and meals, environmental evaluation, willingness to pay more, and recommendations. Our study of foreign restaurant brands (Study 1) found that food and meals may indirectly affect the willingness to pay more and recommendations through providing a friendly environment. The destination's moderating role is also confirmed. Additionally, our study of localized restaurant customers (Study 2) identified the mediating roles of risk evaluation and willingness to pay more, which link the relationship between food and meals and recommendation behavior. Furthermore, destination trust was found to strengthen the relationship between risk evaluation and willingness to pay more.     

The role of benefits and transparency in shaping consumers’ green perceived value,self-brand connection and brand loyalty

Building on the literature on green consumption, this study investigates consumers’ perceptions of a brand's green benefits (utilitarian environmental and warm glow) and green transparency on their green perceived value (GPV). In particular, this study tests the mediating role of GPV and self-brand connection on the relationships between green benefits and green transparency and brand loyalty. We used structural equation modeling to test the research model with a sample of 826 Chinese respondents. Our findings suggest that most of the hypotheses were supported. However, comparison between brands of physical goods and services indicate that the approach to develop consumers’ green value perceptions is different and that the influences of GPV and self-brand connection on brand loyalty are significantly different between these two groups of brands. Hence, it would be more effective for organizations to have diverse green branding strategies between these two groups of brands.     

Pro-environmental Behavior in Egypt: Is there a Role for Islamic Environmental Ethics?

Egypt, a less affluent, predominantly Muslim country, suffers from numerous forms of environmental pollution, some severe. This study investigates pro-environmental behaviors of citizens in Cairo, Egypt’s largest metropolis, and studies the relationship between pro-environmental behavior and demographic variables, beliefs, values, and religiosity. Analysis shows that three types of pro-environmental behavior are present: Public Sphere, Private Sphere, and Activist Behavior, with the latter occurring less frequently. Importantly, the study identifies an ecocentric value among respondents which is correlated with Public Sphere Behavior. It also confirms earlier research that characterized Egyptians’ perceptions of the environment as being set in the context of health and cleanliness. Religious teachings and religiosity are shown to be associated with pro-environmental behavior, thus lending support to the presence of an Islamic environmental ethic.     

The role of other customers during self-service technology failure

Service recovery through inter-customer helping is especially meaningful in the self-service technology (SST) failure context because SSTs are associated with a high risk of failure due to the lack of face-to-face contacts with employees. In understanding the phenomenon of inter-customer helping, two fundamental questions are investigated in the current research: (1) does social influence play a role in customers’ helping decisions? and (2) what are the motives for helping? Through two experimental studies, we provide evidence that two different forms of social influence play a role in helping others during SST failures, and customers have self-centered (vs. other-centered) motives. Results from Study 1 showed that individuals in the private environment indicated more willingness to help than individuals in the public environment did due to heightened perceived responsibility. Study 2 revealed that tie strength influenced willingness to help via a dual pathway: perceived responsibility and social approach motives. Finally, we discuss and highlight the positive influence that self-centered motives can exert in the SST failure scene.     

Product attributes and consumer acceptance of nutritionally enhanced genetically modified foods

Using data from a national survey, this study analyses US consumers’ acceptance of genetically modified foods that provide additional nutritional benefits. Using an ordered probit model, this study examines the relation between the willingness to consume genetically modified foods and consumers’ economic, demographic and value attributes. Empirical results suggest that despite having some reservations, especially about the use of biotechnology in animals, American consumers are not decidedly opposed to food biotechnology. Consumers’ economic and demographic variables are only weakly related to their acceptance of food biotechnology, especially when technology involves plant‐to‐plant DNA transfer. However, public trust and confidence in various private and public institutions are significantly related to their acceptance of food biotechnology. Overall, consumer acceptance of bioengineered foods is driven primarily by public perceptions of risks, benefits and safety of these food products.     

The Retailer's Perspective on the Link Between Logistical Resources and Perceived Customer Loyalty to Manufacturer Brands

The objective of this study was to investigate the relationships between logistics and brand‐related resources, and assess their impact on the retailer's perceptions of customer loyalty to manufacturer brands. On the basis of theoretical underpinnings of the resource‐based view, this study explores the relationships among four main variables: (1) variety of collaborative logistics technologies shared between retailers and manufacturers, (2) manufacturer's logistics operations quality provided to retailers, (3) retailer's brand differentiation orientation, and (4) retailer's perceptions of customers loyalty to manufacturer brands. An online survey was conducted on 313 senior marketing and supply chain managers from retailer firms. The results of the structural equation analysis support a mediated relationship between logistical resources and perceived loyalty to manufacturer brands. The retailers believe that shared logistics technologies enable manufacturers and retailers to offer higher levels of availability and visibility of preferred brands to their end‐user customers. In turn, the end‐users become more confident with their decisions to repurchase the same brand offerings.     

Enhancing customer self-efficacy in co-producing service experiences

The service sector is dependent upon customers’ willingness to contribute their knowledge, skills, and abilities to co-produce the service experiences they want and expect. Service organizations therefore seek to employ strategies that will enhance their customers’ ability to do whatever they must to be successful in co-producing those experiences. Applying the concept of self-efficacy, we offer a theory-based approach to developing these strategies that firms may utilize. These strategies involve focusing both employee training and environmental cues on how to enhance the self-efficacy of the customer in performing whatever tasks are necessary toward a successful service experience.     

Customer Referral Reward–Brand–Fit: A Schema Congruity Perspective

Customer referral programs (CRPs) are widely applied as an effective means to stimulate word‐of‐mouth. While previous research mainly focuses on CRPs’ impact of acquiring new customers, this study introduces referral programs as a strategic brand management tool. In doing so, this article emphasizes what has been largely neglected by scholars: A “recommenders‐perspective.” Guided by two competing theoretical perspectives, this article proposes that the perceived congruity between a reward and the recommended brand is an essential driver of referral program performance outcomes. The results show that rewards that conform to the image of the recommended brand yield more favorable reward attractiveness perceptions. Furthermore, the authors show that reward attractiveness perceptions inevitably affect the brand customers are asked to recommend in exchange for receiving this reward. The research reported here extends the literature on judgmental evaluations resulting from schema‐based processing and provides novel insights into the design of CRPs.