Tactics to Enhance the Effectiveness of Delayed Incentive Offerings in a Competitive Environment

Abstract

Managers often try to gain repeat purchases by using delayed incentives such as bounce-back coupons or continuity programs that require consumers to make multiple or long-run purchases to receive the incentive's reward. Yet, given a choice, consumers presumably would rather receive their rewards sooner, than later. We used choice scenarios in a study to identify tactics that likely result in consumers' preferences for incentive offers delayed in time over competitors' offers whose rewards are realized immediately. The results suggest that offering a delayed incentive that has a higher face value than competitors' immediate incentives may result in consumers choosing the delayed reward. Additionally, framing the incentives as gains appears to be more effective at acquiring consumers' choice than framing them as reduced losses. Finally, some limited findings indicate that targeting delayed incentive programs toward consumer segments high in future time orientation may be effective at gaining choice of delayed incentive offers.     

An empirical examination of the effects of design elements of email newsletters on consumers’ email responses and their purchase

In this research, we empirically explore the effects of various design elements of email newsletters on consumers' email responses and their purchases. We capture the consumers' email responses using three metrics, namely email open, email click, and email reopen. We operationalize consumers' purchases as their spending on product items that are featured in email newsletters. Using a novel email marketing database, first, we model the influence of design elements of email newsletter on consumers' email responses at the individual consumer level. The email design elements constitute several email attributes, situational factors, and integrated marketing communication. Second, we quantify the effects of these three email responses, open, click, and reopen, on consumers' purchases. Our empirical results suggest a significant influence of email attributes, situational factors, and marketing communications on consumers' email responses. Furthermore, among open, click, and reopen, we find clicks tend to have the highest impact on consumers’ purchase, followed by email reopening and opening. However, email newsletters with higher opening probability are more effective in influencing purchases than those email newsletters with higher reopening probability. Furthermore, consumers who indulge in all three email responses, namely opening, clicking, and reopening, tend to purchase the most. Results from our study offer several critical insights for email marketing strategy helping managers improving the effectiveness of email campaigns by careful consideration for the design elements of email newsletters.     

Exploring the Interplay of Cognitive Style and Demographics in Consumers' Financial Knowledge

Despite substantial research and advances in consumers' financial knowledge, many Americans still lack basic financial skills. One overlooked research area is the relationships between consumers' cognitive style and subjective knowledge and objective knowledge, and how these relationships vary by demographics. Based on a nationwide study (n = 817), results indicate that consumers' perception of their subjective financial knowledge varies by cognitive style, with those consumers having an intuitive cognitive style, having a higher perception of their subjective financial knowledge than those who are more analytical. More nuanced results suggest that subjective knowledge is related to the interplay of cognitive style with demographics, whereas objective knowledge is not dependent on this interplay. These and other results illustrate that understanding nuances of financial knowledge is still of pressing importance to ensure consumer well‐being.     

Rebate usage: A motivational perspective

This study investigates the motivational factors in consumer rebate usage. Three motivational factors were identified and tested: price consciousness, perceived time and efforts associated with rebate redemption, and perceived satisfactions from using rebates to obtain the savings. The variables were operationalized by Likert-type statements. Validity and reliability were assessed and found to be acceptable. Moreover, the three factors were found to be useful in predicting consumers' decisions to redeem rebates. Managerial implications and recommendations for future research are offered. © 1994 John Wiley & Sons, Inc.     

Ethical judgment,subjective norms,and ethical consumption: The moderating role of moral certainty

Although various empirical works have attempted to explain the gap between consumers' ethical judgments and actual purchasing behaviours, the role of moral certainty has received relatively little attention. Moral certainty refers to the subjective sense of conviction or confidence one holds about his/her ethical judgment of an object. This study contributes to the ethical consumption literature by empirically examining whether the associations among consumers' ethical judgment, intention, and actual purchasing of ethical products (EPs) vary according to their level of moral certainty. We also examined the effect of subjective norms under the same conditions. The results of regression analysis revealed that the ethical judgment of EPs has a stronger effect on consumers' intention when consumers are more confident or convinced that buying EPs is fundamentally right, as compared to moral ambiguity. The effect of subjective norms was less effective under a high level of moral certainty. Nevertheless, the results indicated that there is no evidence for the claim that consumers’ intention towards EPs has a stronger effect on the actual purchasing of EPs under a high level of moral certainty. We discuss the implications of these findings to theory and practice.     

Market Mavens in Social Media: Examining Young Chinese Consumers' Viral Marketing Attitude,eWOM Motive,and Behavior

A paper survey of 835 Chinese college students was conducted to examine young Chinese consumers' social media use, market mavenism, viral marketing attitude, and product recommendation behavior. Structural model testing results showed that young Chinese consumers' perceived pleasure, affection outcome expectation, and subjective norm of viral marketing affected their market mavenism while their subjective norm and pleasure influenced their viral marketing attitude. More importantly, young Chinese consumers' frequency of product recommendations on social networking websites was determined by their social media use, viral marketing attitude, and electronic word of mouth motive to help the company and market mavenism.     

Shopping centers revisited: The interplay between consumers’ spontaneous online communications and retail planning

This paper revisits shopping centers' characteristics in the light of consumers' choices of actual centers in spontaneous online communications. We argue that modes of shopping centers marketing, which comprise a certain set of attributes to ensure consumers' choice, need to be updated to relate to new specific consumers' needs and choices, taking into account the recent increasing role of technologies, leisure activities and changes in consumer behavior. To this end, the paper considers consumers' unsolicited communications on Twitter as an effective source of insights. Drawing upon 10,544 consumers' tweets relating to the 19 main shopping centers in UK posted in May 2019 analyzed through machine learning algorithms. Results report the interplay between consumers' unsolicited online judgments and retail planning, while suggesting new methods for understanding consumers’ insights.     

The Role of Income Distribution in the Diffusion of Corporate Social Responsibility

The purpose of this paper is to investigate the link between corporate social responsibility (CSR) growth and income distribution. We present a general equilibrium model where social responsibility enters both firms' and consumers' decisions. At equilibrium, different degrees of CSR diffusion may arise. We study the conditions under which there exists a virtuous circle which ties increases in the diffusion of CSR to reductions in income inequality. Under certain circumstances, any policy which promotes CSR diffusion induces a reduction in income inequality. By contrast, when such conditions are not satisfied, only redistributive policies may generate the virtuous circle.     

Effects of loyalty program rewards on store loyalty

This investigation examines consumers' preferred loyalty program (LP) designs across two retail contexts, grocery retailing and perfumery, with varying degrees of personal involvement. The research employs in-store full profile conjoint analysis by using the following attributes: timing of the reward, reward compatibility with the store's image, and tangibility.Our research reveals that the underlying effects of reward types on preferences and intended store loyalty differ depending on the level of consumers' personal involvement. In sectors with high personal involvement, compatibility with the store's image and intangible rewards increase LP preference and loyalty intentions. The time required to obtain the reward (immediate/delayed) has no impact. In sectors with low personal involvement, immediate and tangible rewards increase LP preference and loyalty intentions. Compatibility with the store image has no impact.     

Effects of Conditional Sales Promotion Tactics on Consumers' Feelings of Unfairness

ABSTRACT

The purpose of this research is to demonstrate the negative effects of the conditional sales promotion tactics on nonpreferred consumers' feelings of unfairness from the viewpoint of motivation. A two-by-two between-subjects design experiment was conducted to examine the consumers' psychological mechanism. The results show that three types of consumers' perceptions—tactic attractiveness, task difficulty, and tactic irrationality—positively affected their feelings of unfairness. The results show an important mediating role among consumers' perceptions, short-term consumption intention and long-term satisfaction. This research provides new insights for future research and concrete strategic suggestions for retailers.     

Does shared consumption affect consumers' values,attitudes, and norms? A panel study

Shared consumption is proposed as a comparably sustainable consumption practice. However, little is known about effects of shared consumption on individuals. We build on the theory of planned behavior and the value-belief-norm theory using cross-lagged structural equation modeling based on a two-wave panel study with 168 consumers to examine the effects a shared consumption pattern has on consumers' values, attitudes, and norms. Our structural model explains a medium to large amount of variance in self-reported shared consumption. We find shared consumption has statistically significant positive cross-lagged effects on future altruistic values, attitudes, subjective norms, and personal norms. However, no statistically significant effects of shared consumption are found on consumers' future biospheric and egoistic values. Thus, the more consumers engaged in shared consumption, the more concerned they were for others, while it did not affect their concern for the environment or themselves. Theoretical and practical implications of our results are discussed.     

I am who I am: Sharing photos on social media by older consumers and its influence on subjective well-being

We are faced with an aging population whose longer lives need to be lived well. Extant marketing scholarship has largely neglected older consumers' behavior in relation to the social media realm and its influence on well-being. This two-stage qualitative study investigates subjective well-being, exploring whether and how sharing photos on social media increases the dimensions of self-acceptance, positive relations with others, autonomy, environmental mastery, purpose in life, and personal growth. The findings indicate that photo-sharing is a powerful behavior in augmenting older consumers' well-being as it enables individual self-reflection, self-representation and transforms the individual experience into a collective one. Contributions include, that photo-sharing acts as a bridge in creating, reinforcing but also breaking bonds among older consumers, also a tension exists between the desire for autonomy and the need for relationships with others, and finally that the digital self is a component of subjective well-being in older consumers.     

In the consumers’ eye: A mixed-method approach to understanding how VR-Content influences unbranded product quality perceptions

Virtual reality (VR) is an exciting technology that offers great promise as a novel promotional tool. The notion that promotional tools can signal brand quality to consumers is supported in the literature, but the impact for products when brand signals are not paramount is less understood. We use a mixed-method approach to explore how VR-content influences consumers' quality perceptions for products where branding is less relied upon. Findings from a qualitative study reveal that the perception of VR-content's innovativeness acts as a heuristic to signal product quality for unbranded property products. Results from two quasi-experimental studies reveal that while industry-perceived innovative VR-content may not signal consumers' product quality perceptions, consumers' perception of media innovativeness can signal product quality for the offering and increase purchase intentions. Theoretical and managerial implications are discussed.     

To use or not use: Understanding Chinese consumers' intention toward “serving chopsticks”

Serving chopsticks (or “community-use chopsticks”) refers to chopsticks that are used to serve food from a shared dish to an individual's plate, they are used because of concerns about hygiene. This study aims to examine consumers' perceived values toward serving chopsticks and provide an insight into the formation of consumers' intentions to use serving chopsticks. A mixed-method approach was utilized to collect data; interviews were conducted with 62 consumers, followed by a web-based survey with 630 consumers. Qualitative analysis and structural equation modeling analysis were used in the data analysis. Qualitative analysis highlighted four dimensions that contribute to consumers' perceived value of serving chopsticks: functional, altruistic, symbolic, and emotional values. Structural equation modeling analysis illustrated that the more positive values consumers endorse toward serving chopsticks, the stronger they believe not using serving chopsticks has negative consequences. Also, the more they feel responsible for problems caused by not using serving chopsticks, the more they feel personally obliged to use serving chopsticks. Moreover, subjective norm was confirmed as having positive impacts upon consumers' intention to use serving chopsticks. This study contributes to the development of the value-belief-norm theory through exploring the dimensions of the value construct. In addition, the results can assist governments and industry in developing more effective strategies that promote the use of serving chopsticks.     

Why Nonprofits Are Easier to Endorse on Social Media: The Roles of Warmth and Brand Symbolism

Brands often seek endorsements by consumers on social media (e.g., likes on Facebook). But is this marketing strategy feasible for all brands? To answer this question, this research investigates in seven studies the processes that underlie consumers' intention to endorse brands on social media. We suggest that consumers aim to signal their identity by endorsing brands online. Based on the Brands as Intentional Agents Framework and related research in (social) cognition and consumer behavior, we argue that consumers on social media primarily want to emphasize their warmth rather than their competence. Experimental studies 1, 2, and 3 distinguish between nonprofit and for-profit brands and show that brand warmth (and not competence) mediates the effect of brand type (nonprofit vs. for-profit) on consumers' intentions to endorse brands and branded content on social media. Experiment 4 demonstrates that this process is moderated by brand symbolism (moderated mediation). A high level of brand symbolism increases the positive effect of warmth on consumers' intention to endorse brands online, but only for for-profit brands. The fifth experiment shows that these effects are conditional upon the public vs. private distinction in consumer behavior: consumers prefer to publicly affiliate with nonprofit (vs. for-profit) brands but with regard to private affiliations, there is no difference between both types of brands. In experiment 6, the causal role of warmth (vs. competence) is further examined. Finally, we demonstrate that perceptions of brands' warmth and not competence reduce the efforts that brands need to make to achieve consumers' endorsements on their real brand pages on Facebook.     

Modelling Perceived Quality in Fruit Products

Abstract

Quality is in the eye of the beholder. Therefore, the firm's marketing strategy must be carried out by taking into consideration not only the consumers' objectively measurable needs and expectations but also their subjective perceptions as to what actually constitutes a quality product. Turning to Olson and Jacoby's distinction regarding the difference between a product's intrinsic and extrinsic attributes, the authors performed the estimation of structural equation models in order to assess the contribution of fruit product attributes to the Spanish consumers' perception of quality. In this article, the authors demonstrate that: (a) perceived quality in fruit products is a multidimensional concept depending on both intrinsic and extrinsic attributes; (b) intrinsic attributes exert a greater influence on perceived quality in fruit products than do extrinsic attributes; and (c) a very limited number of attributes (only seven out of twenty) stand out as being statistically significant to the consumers' perception of quality in fruit products. Finally, they provide statistical estimates pertaining to the relative contribution of the most significant intrinsic and extrinsic attributes to perceived quality in fruit products.     

Social status and country‐of‐origin preferences

This paper explores consumers' attitudes towards products of foreign origin according to consumer social status, particularly when purchases come from countries that have a low‐cost/low quality image. The research question is: for an identical good (same manufacturer, same brand), do consumers belonging to lower social classes ask for a larger price discount than higher social status consumers when they are offered the opportunity to switch from a country of manufacture whose quality image is well established, to a country of manufacture, the image of which is more uncertain (e.g. South Korea)? A structural equations model is used to highlight the fact that social status has only an indirect influence on the discounts for shifting to lower‐image countries. The relatively weak image of Korean products (at least against Germany and Japan) tends to result in higher price rebates asked for the Korean manufacturing origin. But lower social status consumers evaluate Korea more positively as a country‐of‐origin. The normative recommendation for the advertising strategy of “cheap” origins' goods in highly developed markets would be to put emphasis on quality rather than price, especially when modest consumers and lower classes are explicitly targeted.     

Cultural influences on new product adoption of affluent consumers in India

The purpose of the study was to explore how individual/personal and group-level factors influence Indian consumers' adoption of new food products. The results reflect the interdependence of consumers' individual views and beliefs with those of the group. Indian consumers' perceived characteristics of new foods and their innovativeness are key personal-level factors in impacting their new food purchase decisions. Reflecting collectivist tendencies, interpersonal communication sources and subjective norms at the group level are important mediators of Indian consumers' new food purchases. Marketing implications for food businesses are discussed.     

Impact of personalization and privacy concerns on information disclosure and pricing

Advances in IT have enabled some firms to offer personalized products according to the private information disclosed by consumers, while others are still offering standardized products, which brings about asymmetric competition. For consumers, disclosing private information for personalized products leads to reduced misfit cost as well as privacy loss. To illuminate the impact of consumers' trade-off between the benefit of information disclosure and the associated privacy concerns on firms' asymmetric price competition, we consider a setting where only one firm is capable of product personalization based on consumers' personal information. The capable firm makes a profit from selling the product and monetizing consumers' information. We demonstrate that as the capable firm becomes more adept at personalization, he may raise or lower the price depending on his profit foci, and an improvement in his capability does not always guarantee a higher profit. Counterintuitively, an increase in the unit misfit cost (i.e., greater product differentiation) can, under certain circumstances, intensity price competition, making both firms worse off and leading to higher consumer surplus. We also show that when consumers are more privacy-concerned, there exists an indirect effect that weakens the impact of an increase in price on the monetization of consumers’ information, and hence price competition can be mitigated and both firms can be better off. Furthermore, we demonstrate that product personalization with misfit-reducing effect always increases consumer surplus under the asymmetric competition. Our findings provide firms and policy-makers with great managerial insights.     

The competing roles of variety seeking in new brand adoption

We examine how consumers' attribute-level variety-seeking behaviors can explain their propensity to adopt a new brand in the consumer packaged goods (CPG) market. We leverage consumers' purchase history among extant brands prior to a new brand introduction as an indicator of the new brand adoption upon its launch. We incorporate variety seeking at two product attribute levels – brand and flavor – and find that variety seeking along these two dimensions predicts different outcomes for new brand adoptions. The estimation results of our discrete-time hazard model show that consumers' brand-level and flavor-level variety-seeking behaviors affect their likelihood to adopt a new brand in different manners: consumers who purchase various brands are more likely to adopt a new brand, whereas those who choose various flavors are less likely to adopt a new brand. The results also show that the new brand's price promotions and in-store displays can affect the role of variety seeking in consumers' new brand adoption. We assess the robustness of our findings by replicating our empirical model with an additional measure of variety seeking as well as a variety-seeking measure in another product category.