What drives brand love for natural products? The moderating role of household size

Natural products, including food, cosmetics, and other fast-moving consumer goods, are becoming increasingly popular, and their health-related benefits are widely recognized. Despite the growing awareness and use of natural products, little is known about the enablers and barriers that influence consumers' brand love toward them. The present study attempts to address this gap and better explain consumer behavior toward natural products by utilizing the stimuli-organism-response (S–O-R) theory. The study rests on the premise that certain stimuli influence the internal state of consumers (i.e., the organism), which, in turn, shape their response to products and services. This study uses health consciousness and environmental concern as the stimuli, both facilitators (natural content and regional product) and inhibitors (usage and image barriers) as the internal state of the ‘organism’, and brand love as the response. Based on analysis of 720 responses, the study empirically reveals that health consciousness and environmental concern significantly influence the consumers' internal state, as represented by the identified facilitators and inhibitors . Three of these, namely, regional product, image barriers, and usage barriers, are found to shape brand love for natural products. The moderating role of household size on brand love is also confirmed.The findings of the study contribute to the literature on consumer behavior and practice.     

Consumers’ store-level price knowledge: Why are some consumers more knowledgeable than others?

What consumers know or think they know about stores’ relative price levels is an important research area from both a societal as well as a retail perspective. This study investigates the determinants of objective as well as subjective store-price knowledge. Using structural equation modeling, the effects of price consciousness, income, education, and three forms of price-related experience on the two knowledge dimensions, as well as the relationship between objective and subjective knowledge, are tested. Whereas out-of-store price search had positive effects on both subjective and objective price knowledge, the two other types of experience, number of stores shopped, and length of residence in the market only affected objective price knowledge, indicating that the two knowledge dimensions are determined differently. Furthermore, price consciousness had a larger effect on subjective than on objective knowledge. Finally, subjective and objective store-price knowledge were not significantly related in this study.     

An empirical investigation of the antecedents and performance outcomes of export innovativeness

The present study develops and empirically tests a conceptual model of the organizational, strategic, and environmental drivers of export innovativeness. The relationship between export innovativeness and export performance is also examined. Using data collected from 168 small- and medium-sized direct exporters, we find that decentralization in decision making, export market orientation, information exchange and export market dynamism have a significant influence on exporting firms’ degree of innovativeness. Furthermore, export innovativeness has a significant positive effect on export performance. Several theoretical and managerial implications are derived from these findings. Directions for future research are also provided.     

Two new methods for estimating structural equation models: An illustration and a comparison with two established methods

The application of structural equation models (SEMs) is common in marketing and the behavioral sciences. Accordingly, the exploration of more effective methods to estimate SEMs is also a popular area of research. [Croon, 2002] and [Skrondal and Laake, 2001] have each proposed a new method for estimating SEMs, but since these proposals nearly a decade ago, these methods have been mostly overlooked by applied researchers. We suggest that reasons for this oversight may include not only a lack of guidance in implementing these new methods but also the absence of a formal comparison to review these new methods relative to the more familiar maximum likelihood structural equation modeling (MLSEM) and partial least squares (PLS). In this paper, our goal was to make the Croon and Skrondal-Laake (SL) methods more accessible to applied researchers. We first provide a step-by-step illustration of how to implement the Croon and SL methods. We also present the first comprehensive evaluation of the new methods relative to MLSEM and PLS. From this evaluation, we can better appreciate the circumstances under which these new methods are preferable to MLSEM and PLS. Thus, we intend to help readers understand how and when to apply these new methods.     

Cross-cultural entrepreneurship research: Current status and framework for future studies

Although cross-cultural research in the field of entrepreneurship is still in its infancy as a research stream, it offers important inferences for both theory and practice. Some have criticized the relative immaturity of previous survey-based studies’ methodology. In order to address this flaw, we analyze existing survey-based studies in the field of cross-cultural entrepreneurship to identify research gaps in content and methodology and then derive the most appropriate analytical approach to fill the gaps for this type of research. Finally, we present a practical framework in which to conduct sound and prudent future studies, integrating the most appropriate analytical approach, general methodological insights, and the particularities of entrepreneurship research in a cross-cultural setting.

An empirical comparison of the efficacy of covariance-based and variance-based SEM

Variance-based SEM, also known under the term partial least squares (PLS) analysis, is an approach that has gained increasing interest among marketing researchers in recent years. During the last 25 years, more than 30 articles have been published in leading marketing journals that have applied this approach instead of the more traditional alternative of covariance-based SEM (CBSEM). However, although an analysis of these previous publications shows that there seems to be at least an implicit agreement about the factors that should drive the choice between PLS analysis and CBSEM, no research has until now empirically compared the performance of these approaches given a set of different conditions. Our study addresses this open question by conducting a large-scale Monte-Carlo simulation. We show that justifying the choice of PLS due to a lack of assumptions regarding indicator distribution and measurement scale is often inappropriate, as CBSEM proves extremely robust with respect to violations of its underlying distributional assumptions. Additionally, CBSEM clearly outperforms PLS in terms of parameter consistency and is preferable in terms of parameter accuracy as long as the sample size exceeds a certain threshold (250 observations). Nevertheless, PLS analysis should be preferred when the emphasis is on prediction and theory development, as the statistical power of PLS is always larger than or equal to that of CBSEM; already, 100 observations can be sufficient to achieve acceptable levels of statistical power given a certain quality of the measurement model.     

Shopping orientations as antecedents to channel choice in the French grocery multichannel landscape

This paper investigates the influence of consumer shopping orientations on grocery channel attractiveness and choice. It extends the concept of shopping orientation (utilitarian and hedonic) to account for emerging motivations among French consumers: shopping in line with sustainable and ethical values. In doing so, it helps profile segments of consumers who choose to shop through new online channels (Drive through) and newly deployed store formats (city stores). A sample of 300 French customers, responsible for shopping in the household, was surveyed. Hypotheses were tested through Latent Class Analysis and Structural Equation Modeling with categorical outcomes. Our findings indicate that consumers shopping orientations influence the way consumers will combine the different channels and store formats for grocery purchase. In particular, our results highlight the importance of responsible retail practices and ethical assortments in consumers' choice of online formats whilst local product orientation influences the choice of city stores and market places.     

Multi-Group Latent Variable Models for Varying Numbers of Items and Factors with Cross-National and Longitudinal Applications

Varying sets of items and constructs are a problem frequently encountered in cross-national and longitudinal studies in marketing. We discuss the use of multi-group latent variable models in this situation and describe a method that can be used to handle unequal sets of items and constructs across groups in such models. A simulation study based on cross-national marketing data from Belgium and Great Britain revealed that accurate estimates of differences between latent means can be obtained with this procedure with as few as two common items, although a fairly large sample size is required to obtain small standard errors of the estimates of latent mean differences. A substantive example involving a confirmatory factor model as well as a structural model is also provided, using longitudinal data concerning the quality image of a food product in the Netherlands.     

Cross-national invariance of the entrepreneurial orientation scale

This study utilizes data from 1279 SMEs spanning seven countries to assess the cross-national invariance of the Covin and Slevin entrepreneurial orientation scale. We first examine the psychometric properties of the scale across the full sample and each of the individual countries, identifying the optimal model for invariance testing. We then conduct a series of tests for invariance, utilizing the American sample as a reference in each. Study results highlight the optimality of a three-factor, six-item scale, and provide additional information regarding the level of measurement equivalence that exists between the U.S. and each of the other countries analyzed.     

Country-image discourse model: Unraveling meaning, structure, and function of country images

The country-image discourse model provides an alternative theoretical framework to explain the meaning of country-of-origin (COO) effects. Unlike previous work, this research relies on the key principles underlying semiotics and discourse theory. The model integrates the semantic and pragmatic dimension of COO and provides hypotheses regarding the structure and function of country-images. Empirical verification through structural equation modeling indicates that the data offer substantial support for the proposed internal structure of the country-image construct, such that country-specific cognitions influence affect, which influences conation. Country-related conations also represent the predominant influence on subjects' beliefs, evaluation, and purchase intentions.     

Headquarters to subsidiary transfer effects on marketing strategy exploitation

The transfer of locally created marketing strategies worldwide represents a key competitive advantage for multinational corporations (MNCs). Although a research topic of much interest, empirical content of past studies is scarce. Absorptive capacity studies typically test direct effects of either the transfer capacity of the strategy's initiator or the recipient's ability to process and exploit the strategy on related learning outcomes. Mixed findings allow the possibility of more complex relationships. This study examines the relationships between MNC headquarters and marketing units located in subsidiary firms using a sample of 213 marketing managers. The study systematically explores linear, interaction, and quadratic effects within a structural equation modeling paradigm. The findings indicate that the relationship between a MNC headquarters' transfer capacity and a subsidiary marketing unit's processing capacity on the strategy's exploitation is one of mediation and moderation. The subsidiary marketing unit's processing capacity is a key mediating variable and headquarters' transfer capacity moderates the effects of this variable on the exploitation of the marketing strategy by the subsidiary's unit.     

Entrepreneurship capital and its impact on knowledge diffusion and economic performance

In this paper, we develop two hypotheses: First, regional innovation efforts have a positive impact on regional knowledge based entrepreneurial activity. Second, knowledge based entrepreneurship positively affects regional economic performance. We test these hypotheses using county level data from West Germany, employing a structural equation model to analyze the relationships between latent variables. Our empirical analysis provides evidence supporting both hypotheses. In particular, our results suggest that innovation efforts have an indirect effect on economic performance via entrepreneurship. This indirect effect is neglected in existing empirical studies focusing on the direct effect of innovation on economic performance.     

Creating and appropriating value in collaborative relationships

Business relationships provide means for creating and appropriating superior value in the marketplace. To date, research pertains almost exclusively to the value after relationship creation and sharing among exchange partners. Consequently, the interaction between value creation and value appropriation remains relatively unknown in collaborative relationships. Drawing on equity theory, this study proposes a conceptual model that positions value creation and value appropriation as focal variables within the nomological net of business relationships. Data collected from industrial customer-supplier projects reveal that value appropriation is the strongest driver of project satisfaction. Customer firms perceive value creation as positive only if they appropriate a larger slice of the bigger value pie. Information exchange moderates customer firms' evaluations of value creation and appropriation efforts. In contrast to the highly competitive nature at the project level, embedding the supplier project in an ongoing sourcing relationship reveals cooperative elements in the customer-supplier interaction. Greater relational satisfaction favors less aggressive value appropriation efforts. These insights help bridge the gap between managerial metrics that focus on successful value appropriation and academic models that attend to variables that capture the quality of ongoing relationships.