Country of origin: A competitive advantage?

Country of origin has been identified in the literature as an important cue that might be used by global marketers to influence consumers' valuation of the brand. Its effect on consumer perceptions, affect and behavioral intentions has been widely documented, based on consumer surveys and laboratory experiments. Despite this empirical evidence, we argue that country of origin is only one extrinsic cue among many extrinsic and intrinsic cues available to the consumer in a real purchase situation. Furthermore, in real life, consumers are likely to engage in some level of information search, which would further dilute the country of origin effect in the marketplace. Based on these arguments, we conclude that country of origin might not necessarily lead to a competitive (dis)advantage in terms of a price premium or discount. For a sample of products, we show that the objective product quality varies significantly by country of origin, and that these differences are consistent with extant research on country of origin effects on consumers' perceptions. After controlling for quality differences across brands, we demonstrate that marketers from different countries charge prices that are justified by differences in product quality. Price premiums or discounts are therefore explained by differences in product quality rather than the image effect produced by the country of origin cue.     

Ambiguity and Exaggeration in Price Promotion: Perceptions of the Elder and Nonelder Consumer

This paper examines the effects of plausible as well as implausible or exaggerated tensile discounts on consumer discounting behavior, price perceptions, and behavioral intentions. The effects are compared across two consumer segments, elder and nonelder, for a product and a service. Findings indicate that age of the consumer had a significant interaction with discount level for consumer discounting behavior regarding the product offer. While consumers were skeptical of implausible discounts, the effects of implausible and high-plausible discounts on price perceptions were higher than that of low-plausible discounts. In addition, there were no significant differences between the implausible and high-plausible discount levels for price perceptions or behavioral intentions. The results provide implications for public policy makers.     

When do amount-off discounts result in more positive consumer responses? Meta-analytic evidence

Extant research has examined the effects of amount-off discounts on consumer responses, but the empirical findings are inconsistent. This study presents a meta-analysis of 19 studies and 86 effect sizes (N = 12,003) calibrating the effects of discount frames on consumer responses. Amount-off discounts are found to lead to positive consumer responses through positive changes in attitudes. Analyzing various moderators’ impacts shows that amount-off discounts have different effects depending on the product price level, the product type, and the price promotion mode. For instance, amount-off discounts tend to be more effective than percentage-off discounts when the price is high, when the product type is material, and when the price promotion mode is a discount.     

Budget over health unless overweight: A Solomon four‐group study

Budget and health motivations for food purchase (e.g., discounts and health consciousness, respectively) affect consumer choice while shopping and well‐being afterward. However, not all findings from research have suggested that discounts/taxations on healthy/unhealthy food encourage health‐conscious food choice. On the other hand, the consumer behaviour line of research on the influence of front‐of‐package health messages has mostly echoed similar results that such communication leads to overconsumption; thus, obesity. We examined the influence of market practices targeting consumers’ budget and health‐related motivations for food purchase in a 2 (price: recommended retail price, discount price) × 2 (product: regular potato chips, potato chips with ‘75% less saturated fat’) experiment using six Solomon four‐group designs. Our results indicate that overweight consumers are not prone to discounts, unlike their normal‐weight counterparts. A price cut nullifies the influence of health messages on purchase intentions among normal‐weight buyers when the regular and healthier packaged foods are both on discount.     

Customization of online advertising: The role of intrusiveness

This study examines the trade-off between tailoring an ad to an individual consumer’s needs and the demand for personal data required to do so, which is inherent in targeted online advertising. Two scenario-based studies in two different industries reveal the extent to which using personal information with greater distinctiveness affects consumers’ sense of intrusiveness and purchase intentions. We also manipulate ad fit to each consumer’s needs and the presence of a discount to investigate whether feelings of intrusiveness mitigate the potential positive effects of fit and discount. Higher degrees of personalization, such as adding personal identification or transaction information to browsing data, increase feelings of intrusiveness, and negatively affect purchase intentions. These negative effects are not compensated for by offering discounts but can be partly mitigated by presenting an ad with a high fit to consumers’ current needs. The positive effect of tailoring the ad is weakened at higher levels of intrusiveness though. Furthermore, high fit may lead to not only higher purchase intentions but also higher perceived intrusiveness levels. Presenting a consumer with a customized ad can thus be a double-edged sword, leading to higher purchase intentions but also greater perceived intrusiveness, which then negatively affects purchase intentions.     

A Model of the Effects of Self-efficacy on the Perceived Ethicality and Performance of Fear Appeals in Advertising

The primary purpose of this study was to better understand the effects of consumers' perceived self-efficacy on their perceptions of the ethicality of a fear appeal and subsequent attitudes towards the ad, the brand, and purchase intentions. In this study, a total of 305 consumer responses were investigated to determine attitudes toward a fear appeal ad. The results suggest that the use of strong fear appeals may not be perceived as unethical if consumers feel they can use the recommended product to effectively eliminate the threat posed by the ad.     

Impact of different types of in-store displays on consumer purchase behavior

Research on consumer in-store shopping behavior does not account for the existence of different types of display locations (e.g. storefront, store rear, secondary, front end cap, rear end cap, and shelf displays). This article focuses on accounting for and understanding the impact of various displays on consumer purchase behavior based on the Stimulus-Organism-Response (SOR) theory. Specifically, we study how displays closer to and farther from the main location of the focal category influence consumer purchase behavior. Furthermore, within the different types of displays we investigate the impact of specific types of displays on consumer's category purchase and brand choice and the moderating role of price and discounts. A hierarchical Bayesian model is estimated using scanner panel data for a large U.S. grocery chain that contains unique information on the number of product facings at multiple display locations within a store. We find that displays closer to the focal category have a larger impact, with front end cap displays having the largest impact on category purchase and shelf displays having the largest impact on brand choice. We also demonstrate the synergistic impact of price and discounts in enhancing the impact of displays on consumer purchase behavior and brand choice. Equipped with these findings we propose a display allocation optimization that results in an average increase in revenue of about 11.15% and a strategy to distribute displays across all locations in the store rather than letting one location dominate.     

The Case for Compatibility: Product Attitudes and Purchase Intentions for Upper versus Lowercase Brand Names

Although retailers know that brand names are important conveyors of product benefits, little is known about how subtle characteristics of brand names affect consumer attitudes and purchase intentions. This research proposes and shows that the letter case of brand names affects product attitudes and purchase intentions but that these effects depend on congruity between brand case and the gender of consumption benefits. Studies 1 and 2 show that lowercase brand names are associated with feminine characteristics while uppercase brand names are associated with masculine characteristics, as measured through judgments of name gender, gendered brand personality traits, and overall brand gender perceptions. Three additional studies demonstrate that greater congruity between brand case and the gender of consumption benefits increases product evaluations and purchase intentions. Study 3 demonstrates that greater congruity between brand case and the gender of a female consumer’s consumption goal leads her to have more favorable product attitudes. Study 4 replicates these effects by manipulating the gender of product benefits, shows that effects on purchase intentions are moderated by the consumer’s biological sex, and identifies processing fluency as the underlying mechanism. Study 5 demonstrates that brand case, rather than letter shape, drives these results. This work advances understanding of how seemingly subtle brand name characteristics affect gender perceptions and consumer behavior, with implications for brand design and positioning in the retailing industry.     

Brand promotions as a lottery

This paper shows that imprecisely stated discounts in brand promotions offered in the form of a low-probability lottery can lead to higher sales (purchase intentions) and consequently profits than equally costly conventional promotions offering a precise discount on the entire stock. Results from two different experimental studies support our findings. For high-probability lottery-like promotions, imprecise discounts lead to a lower performance for the brand than conventional promotions. We attempt to explain the findings by drawing on the behavioral decision theory literature.     

To Whom,When, and How Much to Discount? A Constrained Optimization of Customized Temporal Discounts

Customized temporal discounts are price cuts or coupons that are tailored by size, timing, and household to maximize profits to a retailer or manufacturer. The authors show how such discounts allow companies to optimize to whom, when, and how much to discount. Such a scheme allows firms to send just enough discounts just prior to the individual's purchase of a rival brand. To do so, the authors model household purchase timing and brand choice in response to discounts and use Bayesian estimation to obtain individual household parameters. They illustrate the model on a Japanese data set having price cuts, a US data set having coupons, and another US data set having discounts. They formulate the optimization task of customized temporal coupons as a constrained multiple-knapsack problem under a given budget. They use simulations of the empirical contexts to obtain optimal solutions and to assess improvement in profits relative to existing practice and alternate models in the literature. The proposed model yields increase in profits of 18–40 percent relative to a standard model that optimizes the value but not timing of discounts.     

The effect of product touch information and sale proneness on consumers' responses to price discounts

Since price discounts are costly and can negatively affect consumers' perceptions of quality, it is crucial to identify the factors that make them effective in stimulating purchase behavior. Drawing on cue utilization theory, we examine price discount effectiveness in affecting consumers' reliance on the sale cue based on the provided product touch information as an intrinsic cue and individual consumer differences in sale proneness. Two experimental studies indicate that price discount information, product touch information, and sale proneness interact to determine consumers' responses. Perceived quality is the underlying mechanism behind the observed effects. For nonsale-prone consumers, product touch information favorably influences responses to large price discounts by addressing product quality concerns and enhancing purchase confidence, but has no effect for regularly priced or low discounted products. For sale-prone consumers, product touch information is not effective in increasing their responses regardless of the discount size. A qualitative study provides support for these results and highlights the role of perceived quality and purchase confidence. The research contributes to behavioral pricing, cue utilization theory, and sensory marketing and suggests that marketing managers should provide consumers with product touch information when implementing high discounts for products for which prepurchase touch is important.     

Effects of sales promotion type and promotion depth on consumer perceptions: the moderating role of retailer reputation

This study uses a between-subjects experimental design to test the effect of two sales promotion formats (coupon versus markdown) with either high and low face values on consumer attitudes toward the deal, perceived product quality, and purchase intentions. The reputation of the retailer offering the deal is predicted to moderate the relationship between the promotional offer and consumer responses. Consumers perceive product quality to be higher when offered a high value coupon vs. markdown but there is no significant difference in perceived quality across promotion types when the promotion face value is low. When a deep price discount is offered by a retailer with a negative reputation, however, consumers have more favorable attitudes toward the deal and higher purchase intentions when provided with a markdown vs. coupon. Conversely, a high value coupon elicits more favorable evaluations than a markdown when the retailer has a positive reputation. When the value of the promotion is low and the retailer has a positive reputation, consumers have more positive deal attitudes and purchase intentions when offered a markdown vs. coupon. There is no significant difference in the effects of promotion type when the retailer has a negative reputation. The findings therefore establish retailer reputation as an important moderator of sales promotions effectiveness. This research is limited by the use of a single product category and a student sample. Process measures are also needed to validate the proposed theoretical conceptualization. The results provide managers insight into the type and value of the sales promotion to offer based on consumer perceptions of the retailer's reputation in the market.     

The effect of permanent product discounts and order coupons on purchase incidence,purchase quantity,and spending

This paper examines the influence of a permanent discount strategy on customer purchase behavior, i.e., purchase incidence in each week, purchase quantity (in units), and total order spending (in CNY). Permanent discounts are defined as discounts continuously provided by retailers. We identify two types of permanent discounts, namely, product-specific price discounts (PD) and order coupons (OD, which can be redeemed for a total order). We collect transactional data from a Chinese online retailer and empirically examine the effects of the two types of permanent discounts and customers’ expectations of PD and OD. We find nonlinear relationships between permanent discounts and customer purchase behavior. PDs negatively influence spending when they are lower than 19% but show a positive effect beyond this threshold, hence depicting a U-shaped relationship. They also affect purchase quantity positively but at a decreasing rate. Customer expectations of PD influence purchase incidence, spending, and purchase quantity following a U-shaped patter with a positive influence appearing when PD expectations are high than 31%, 27%, and 18% respectively. On the other hand, ODs influence spending and purchase quantity positively at an increasing rate. Customer expectations of OD influence purchase incidence, spending, and purchase quantity following a U-shaped relationship where the positive influence on purchase incidence shows beyond OD expectations of 426 CNY, and the positive effect appearing on spending and purchase quantity when these expectations are higher than 34 CNY. We also find that customer expectations of discounts interact with current discount levels in their influence on spending. Combining these results and considering that order coupons negatively affect the profit margin of the total basket, we suggest that retailers should offer order coupons with relatively low value but product-specific price discounts with high discount depth.     

Nutrition Ad Claims and Disclosures: Interaction and Mediation Effects for Consumer Evaluations of the Brand and the Ad

The effects of ad disclosure information on evaluations of the brand, the advertisement, and purchase intentions are postulated to vary across different ad claim types. In addition, consumers' product health perceptions are hypothesized to mediate the effects of the disclosure information and ad claim type on brand and ad-related evaluations. Results from a between subjects' experiment show that the health perception measure mediates the effect of the disclosure on brand and ad evaluations, but the interaction between the ad claim type and the disclosure is not mediated by the inclusion in the model of consumers' product health perceptions.     

基于慈善捐赠的事业-品牌联盟对消费者响应的影响

文章以企业的慈善捐赠行为为例,探讨了对事业-品牌联盟有重要影响的三个因素.数据分析结果表明,企业捐赠的产品同非营利组织是否契合与事业-品牌联盟受消费者影响大小对消费者品牌态度、质量感知及购买意愿均存在显著影响;企业知名度对品牌态度与质量感知存在显著影响.另外,研究还发现企业知名度与捐赠产品契合度对消费者质量感知存在显著影响,企业知名度作用强于捐赠契合度,当企业知名度低时,捐赠是否契合的作用才会突显出来.     

Gulping the Poison: How Webcare Attributes Reduce Damages to Brands Caused by Negative Reviews

Negative reviews written by unsatisfied consumers can significantly erode the image of a brand. Therefore, marketers regularly respond to these reviews through written messages posted on online channels: a practice known as webcare. The present article seeks to explore whether selected webcare attributes, such as strength, sidedness, and ownership, have any effects on consumers’ forgiveness of the service failures caused by transgressing firms. Furthermore, the effects of consumer forgiveness on satisfaction with webcare, brand attitudes, and purchase intentions are also investigated. The article examines these relationships in the context of a fine dining restaurant (Study 1) and a hotel (Study 2). The results reveal that webcare attributes play a salient role in achieving consumer forgiveness. Furthermore, the studies also reveal that consumer forgiveness leads to satisfaction with webcare and improved brand attitudes and purchase intentions.     

An exploration of celebrity business ventures and their appeal to fans and non-fans

Recently, an increasing number of celebrities have launched their own businesses. Although celebrity entrepreneurs may expect their credibility to enhance customers’ purchase intentions, this study does not find this effect. Instead, it finds that customers’ purchase intentions rely mainly on customers’ attitudes toward the celebrity's venture brand. Customers’ perceived congruence between a celebrity and the celebrity's business significantly affects their brand attitudes. Additionally, this study finds that a celebrity's credibility can only increase fans’ positive attitudes toward the celebrity's venture brand; therefore, being a celebrity entrepreneur is riskier than being a brand endorser in terms of consumer attitude.     

The role of attributions in consumer perceptions of retail advertisements promoting price discounts

This study examines whether information in an advertisement promoting a price discount is capable of affecting attributions made about the price reduction and whether these attributions, in turn, affect consumer perceptions and evaluations of the sale. Findings show that price image of the retail advertiser had a strong effect on attributions pertaining to the merchant and a marginal effect on product attributions. The attribution variables, in turn, explained significant amounts of variance in criterion variables measuring consumer perceptions of value, attitude toward the ad, and shopping intentions, beyond the variance explained by the store and discount claim variables manipulated in the study. These results suggest the importance of the role of attributions made by consumers when exposed to ads promoting discounts.     

网络口碑如何促进购买意愿？——基于消费者鼓舞的被调节中介模型

网络口碑引导了消费,然而对于网络口碑影响消费者心理和行为的机制研究仍缺乏明确结论。文章以消费者鼓舞为切入点,基于SOR理论和精细处理可能性模型,构建出一个有调节的中介模型,揭示了不同口碑成分对于消费者鼓舞和购买意愿的影响作用与中介机制,以及产品类型作为边界条件形成的差异。实证检验表明,网络口碑的偏向和评分对消费者鼓舞具有正向作用,但是网络口碑数量的影响却不显著。其次,消费者鼓舞在网络口碑对消费者购买意愿的影响中起到了中介作用。同时这种中介作用受到了产品类型的调节,相对非体验性产品而言,体验性产品的网络口碑会产生更强的消费者鼓舞与购买意愿,以及更强的中介作用。最后,实验结果检验和排除了信任对于消费者鼓舞的替代性解释。文章拓展了网络口碑的研究视角,为企业有针对性地完善口碑管理提供了理论基础和实践启示。