Ad creativity in a negative context: How a thanking message frame enhances purchase intention in times of crisis

Traditionally, advertising relies on creativity to increase its effectiveness. However, little is known about the use of creativity in negatively-valenced situations. For instance, in times of crisis such as the COVID-19 pandemic, how should retailers engage in advertising? Should they strive to deliver creative advertising, or not? We investigate the role of ad creativity during times of crisis, based on 43,459 consumer responses to 49 retail and service brand ads. To do so, we investigate the separate effects of the two dimensions of ad creativity: originality and appropriateness. Results indicate that creativity works differently in a crisis context, with originality and appropriateness having different effects on consumers. Further, we find that originality and appropriateness trigger emotions in opposite ways. However, ads that engage thanking - be it of employees, customers, or frontline emergency workers - strengthen these effects.     

How consumers use product reviews in the purchase decision process

This paper uses individual level data to examine the influence of product reviews in different stages of the consumer’s purchase decision process. Specifically, a two-stage model consisting of consideration set formation and choice is posited, where the consumer can incorporate information from product reviews in each stage. The model is estimated using an online panel survey about hotel choice. We find that (1) consumers use product reviews more in the consideration set stage and less in the choice stage, (2) Bayesian updating of prior perceived quality better explains how consumers use product reviews compared to two competing updating methods, and (3) the monetary value of a unit increase in the mean of product reviews is computed. Our results suggest that managers should make product review information (their number, average, and variance) available from the beginning of the search process and encourage satisfied customers to write reviews.     

Country image,product image and consumer purchase intention: Evidence from an emerging economy

In offering fresh insights on the country-of-origin effect literature, this article provides evidence to suggest that cognitive country image (CI) is not necessarily consistent with affective country image. Based on a large scale consumer survey conducted in China, the findings reported provide empirical support for a hypothesized decomposing effect. In particularly, the results demonstrate that cognitive and affective CI have a different impact on the intention to purchase, with the former influencing purchase through product image, and the latter having a direct influence, independent of product image. Such a decomposing effect has important theoretical and managerial implications surrounding the mechanics of country image and the impact on purchase intention which are extracted from this study along with directions for future research.     

Increasing customer purchase intention through product return policies: The pivotal impacts of retailer brand familiarity and product categories

This study gauges customer perspectives to investigate how return policy generosity (the degree to which a retailer imposes minimal restrictions on returns) influences customer-perceived value and customer purchase intention. It also examines two moderators, retailer brand familiarity (the extent to which the retailer brand is well-known) and product categories (the difference between products with respect to the magnitude of effort required to make a return). An experiment with a 2 × 2 × 2 factorial design was conducted. The results show that return policy generosity increases customer purchase intention by enhancing the perceived value of the policy. Lesser-known retailers benefit more from generous return policies than their well-known competitors, particularly when a product requires significant return effort. Well-known retailers benefit from offering generous return policies only for product categories that involve low levels of return effort. The findings of this study suggest that if a retailer formulates a return policy without considering the moderating effects of retailer brand familiarity and product category, then it will tend to over-invest if the return policy is generous.     

Uniform pricing effect: The influence of uniform pricing on product value judgement and purchase intention

Uniform pricing, which is a pricing strategy that sets a unified price for all products in the store or all products in the same category, is becoming increasingly popular over the past decades. However, scarce attention has been paid to investigating its impact on consumer behaviour. This research investigates the influence of uniform pricing on product value judgements and purchase intentions. Four studies demonstrate that uniform pricing (vs. non-uniform pricing) could induce stronger promotion perception, which leads to more positive product value judgements and purchase intentions. Moreover, price sensitivity and product involvement moderate this effect, and this effect only exists for high price-sensitive consumers and low product involvement consumers.     

On‐line product presentation: Effects on mood,perceived risk,and purchase intention

Because the Internet purchase of apparel is risky, there is a strong need to develop better visual product presentation on‐line that may give some sense of fit and other tactile experience to reduce perceived risk and create pleasurable shopping experiences. Toward this end, the effect of product presentation on consumer responses was examined here. In addition, the relationships among variables were investigated to provide details of the nature of the effect of product presentation. This study employed a 2 2 between‐subjects factorial design: product movement (product in motion vs. product not in motion) image size (large vs. small). Mock Web sites were created to closely mimic the design of actual Web sites. Two hundred forty‐four female undergraduates logged on and evaluated two pairs of pants under the same treatment conditions. The present research showed (a) main effects for product movement on mood, perceived risk, and apparel purchase intention; (b) an interaction between product movement and image size on apparel purchase intention; (c) a negative relationship between mood and perceived risk; (d) a positive relationship between mood and apparel purchase intention; (e) a negative relationship between perceived risk and apparel purchase intention; and (f) mediating relationships among variables. Based on the results, apparel e‐tailers are advised to create positive mood using product rotation to decrease shoppers' perceived risk and increase purchase intent. © 2005 Wiley Periodicals, Inc.     

How customer engagement in the live-streaming affects purchase intention and customer acquisition,E-tailer's perspective

In the emerging retail market, e-tailers operating in developing economies have to cope with the rapid use of the Internet, new electronic purchasing methods and online selling platforms. However, e-tailers do not understand the effect patterns in which customer engagement on purchase intention and customer acquisition. From e-tailers’ perspective, this study explores how customer engagement behaviors are related to both purchase intention and customer acquisition. We obtained live streaming data in the mature e-tail live streaming market environment and found empirical evidence supporting the conceptual framework through regression model analysis. The analysis results show that the specific indicators of the customer engagement are not all positively related to customer purchase intention and customer acquisition, and it is worth noting that the influence of “like” behavior on customer acquisition is no statistical significance. This is expected to encourage e-tailers to rethink their focus on customer acquisition and sales enhancement digital strategies as they operate in emerging markets.     

“Retail is detail! Give consumers a gift rather than a bundle”: Promotion framing and consumer product returns

Retailers often use the promotion strategy of offering supplementary products (e.g., free gift, bundle) to attract consumers and increase sales. Despite the growing literature on the promotions that are differently framed but offer economically identical values, little research has examined the link between promotion framing and consumer product returns. The current article sheds light on this relationship, hypothesizing that a free gift promotion would be superior to a bundle promotion in reducing consumer product returns. The findings suggest that a gift‐framed promotion leads to a lower product return intention than an economically equivalent bundle promotion, because consumers tend to perceive more loss from giving up the gift‐framed (vs. bundle‐framed) deal. Further, this study examines a moderating role of brand familiarity (familiar vs. unfamiliar) and shows that the merits of free gift framing on product return intention via perceived loss are amplified (attenuated) when the promoted brand is familiar (unfamiliar). Overall, the investigations of this study imply that it is better to frame a promotion as a “free gift” than a “bundle” to increase perceived loss in returning the purchase and thus to decrease consumer product returns. This strategic intervention works especially when the gift is offered by familiar brands.     

Expectations and product performance as determinants of satisfaction for a high-involvement purchase

Customer satisfaction is a central issue for organizations wishing to create a sustainable competitive advantage in the 1990s. Empirical work to date, concentrating on low-involvement, nondurable products, has concluded that both prior expectations and postpurchase experience interact to influence the level of customer satisfaction. Only a few studies have examined the purchase of high-involvement, nondurable products. The current study employs a multiattribute approach using pre- and postpurchase questionnaires to assess determinants of customer satisfaction for a high-involvement product. Causal path analysis shows perceived product performance to be the most powerful determinant. Prior expectations did interact with performance to affect disconfirmation, which translated into only a minor impact on satisfaction. © 1993 John Wiley & Sons, Inc.     

The rhythm of shopping: How background music placement in live streaming commerce affects consumer purchase intention

There is growing evidence indicating that background music has a significant impact on consumer purchasing behavior. However, there is limited research on the placement of background music in live streaming commerce. This study conducted a single-factor experiment with three conditions (playing during purchase phase, continuous playing, and control group) to investigate the effects on arousal, consumer memory, and purchase intention. Results show that live streaming with background music increase consumer's purchase intention and arousal. Specifically, background music playing during purchase phase leads to higher purchase intention and consumer memory than continuous playing. Continuous playing induces higher arousal than background music playing during purchase phase. Process measures reveal that playing during purchase phase (vs. continuous playing) reduces arousal, thus enhancing consumer memory and leads to higher purchase intention. Continuous playing, however, induces arousal but impairs consumer memory, subsequently leading to lower purchase intention.     

Consumer confidence and green purchase intention: An application of the stimulus-organism-response model

Environmental commentators have speculated, but not empirically validated, that consumers’ positive (negative) evaluation of the economy will lead to more (less) green consumption. The purposes of this study were to (1) ascertain whether consumer confidence affects green consumption and (2) uncover the psychological mechanisms of this relationship, in a non-recession context. Drawing upon the stimulus-organism-response model, we developed a conceptual model, which we tested via mediation analysis, using data from a sample of Chinese consumers (n = 1,184). Results show that there is a positive relationship between consumer confidence and green purchase intention. Environmental and status consciousness partially mediates the positive relationship between consumer confidence and green purchase intention. We contribute to the literature on antecedents of green consumption by being the first to empirically establish the salience of consumer confidence in this domain. Investigating green purchase intention, which differs depending on consumer confidence level, has the potential to assist retailers in developing better marketing tactics. Our study also benefits economists and environmentalists by helping them better understand how consumer confidence fluctuations play critical roles in addressing economic growth-driven major environmental challenges.     

How background visual complexity influences purchase intention in live streaming: The mediating role of emotion and the moderating role of gender

There is growing evidence that visual complexity plays a crucial role in consumer purchase behavior. However, existing research on background visual complexity’s effect on individuals’ purchase intention in live streaming is limited. This study explores the relationships between live background visual complexity, emotional states, and purchase intention, by drawing on the stimulus-organism-response theory. A 3 × 2 between-subjects online experiment was developed with participants’ emotional and intention data. The results indicate that the background visual complexity of the livestream room influences consumers’ purchase intention positively via the evoked emotional states (pleasure and arousal). Background visual complexity exhibits an inverted U-shaped effect on consumers’ emotions. Additionally, the results reveal a significant moderating effect of gender on the relationship between background visual complexity and purchase intention. Women exhibit an inverted U-shaped effect on emotion and purchase intention, whereas men show a positive linear relationship when faced with complexity.     

Influence of hedonic and utilitarian motivations on retailer loyalty and purchase intention: a facebook perspective

Social networks are an innovative tool that people use to communicate with family, friends and, increasingly, businesses. To optimize social networks as a marketing strategy, apparel retailers must understand consumers׳ motivations to interact with retailers via social media. We argue consumers׳ motivations for shopping on Retail Facebook Pages (RFP) compared to traditional retail formats may differ. The purpose of the study was to examine the influence of utilitarian and hedonic motivations (i.e., time savings, information access, bargain perception, and experiential shopping) on purchase intention and loyalty among consumers that use RFP. Using SEM, we show that experiential shopping influences loyalty, but not purchase intention, that bargain perception influences neither purchase intention nor loyalty, that information access influences time savings and loyalty, and that loyalty impacts purchase intention.     

Factors influencing clothing interest and purchase intention: a study of Generation Y consumers in Malaysia*

The purpose of this study is to examine the factors influencing clothing interest among Generation Y consumers in Malaysia. Brand image, word of mouth (WOM), self-concept, perceived quality, and need for uniqueness were hypothesized to be related with clothing interest, which in turn, was deemed to be related with purchase intention. The interaction effect of price consciousness on the relationship between clothing interest and purchase intention was also examined in this study. Self-administered questionnaires were used to collect data from a total of 300 respondents from Malaysia to test the hypothesized relationships. Results showed that need for uniqueness, self-concept, brand image, WOM, and perceived quality are significant predictors of clothing interest among the Generation Y consumers in Malaysia and price consciousness moderated the relationship between their clothing interests and purchase intention. The practical implications of the research findings were discussed.     

Buying free rewards: the impact of a points-plus-cash promotion on purchase and reward redemption

While many studies have investigated consumer purchase behavior in reward programs, a better understanding of customer redemption behavior is lacking, particularly when promotions affect a core aspect of reward programs—free rewards. In this paper, we examine the impact of a promotion on purchase and reward redemption in a reward program in which consumers can partially cover the cost of a free reward with their money. The literature on reward programs suggests a positive reinforcement caused by reward redemption, whereas the literature on promotion provides different views regarding the existence of a postpromotion dip. Using data from a major retailer’s reward program, we verify that such a promotion attracted customers with less transaction activity and shorter tenure. Interestingly, consumers using the promotion increased their preference for hedonic rewards compared to their previously observed behavior. This change in preference persisted after the promotion ended. Overall, the promotion significantly increased the number of redemptions but generated a negative impact on subsequent consumer behavior by decreasing purchase incidence and quantity. Our findings point to a need to understand the trade-off between spending money on buying an otherwise free reward and future regular purchases.

     

The effects of online shopping attributes on satisfaction–purchase intention link: a longitudinal study

Attributes of online satisfaction are dynamic. Specifically, it remains to be examined how online shopping attributes empirically affect changes in satisfaction that leads to repurchase behaviours over time and why. The present study develops a theoretical framework for conceptualizing satisfaction with temporal effects and empirically tests it using longitudinal data from 219 online customers. The results indicate that the relationship between attribute‐level evaluations and satisfaction, which has only been examined in terms of predictors of satisfaction in prior literature, is dynamic and changes over time. Changed attributes (particularly convenience and site design) might signal an opportunity to capture the dynamics of attribute‐level evaluations over time. Furthermore, the findings reveal significant temporal effects of satisfaction and purchase intention at time point T on satisfaction and purchase intention at time point T + 1. The results suggest that temporal effects occur as a diagnostic function of a previous attribute rating of a subsequent satisfaction evaluation and the consumer's level of subjective knowledge.     

Cooling off and backing out: Understanding consumer decisions to rescind a product purchase

Consumers sometimes have the right to exit a sales contract during what is known as a cooling-off period. Sales process research generally does not address cases when consumers withdraw from sales contracts during this period. Since securing product sales involves substantial marketing and sales costs, a need exists to better understand not only consumer rescission decisions and their legal context but also the managerial implications of the cooling-off period. This exploratory qualitative study examines purchase rescinding and develops a conceptual model using timeshare as the context. Results suggest that rescission relates to a mismatch between product features and personal circumstances, post-purchase concerns about product value, reassessment of financial capability, reflections on sales presentations, and cautionary influences of reference groups.     

Predicting the antecedents of consumers' intention toward purchase of mutual funds: A hybrid PLS-SEM-neural network approach

The current study intends to identify the behavioural antecedents of investors' attitude and investment intention toward mutual funds using a robust SEM-ANN approach. It focuses on novel factors in the purview of the COVID-19 pandemic, increasing digitalization and social media usage. The research outcome indicates that attitude (ATB), awareness (AW) and investment decision involvement (IDI) have a significant positive relation with investment intention (BI). In contrast, perceived barrier (PBR) negatively relates to investment intention. Herd behaviour (HB) and social media influence (SMI) do not influence investment intention toward mutual funds. Moreover, all the tested predictors share direct relation with the attitude toward mutual fund investment, barring perceived risk (PR), which has an inverse relationship. As per the outcome of ANN sensitivity analysis, attitude is the most crucial determinant of investment intention. It is followed by awareness (AW), perceived barriers (PBR) and investment decision involvement (IDI). Among the significant determinants of attitude, self-efficacy (SE) is the most important determinant, followed by perceived usefulness (PU), perceived emergency (PEMER), subjective norms (SN) and perceived risk (PR).     

The role of involvement: Investigating the effect of brand's social media pages on consumer purchase intention

This study examined the influence of consumer's brand familiarity and the information quality of social media content on their involvement with a brand on the brand's social media pages. Also studied were the influence of involvement on consumer's attitude towards the brand's social media page and the effect of their attitude on future purchase intention from the brand. The results indicated that both brand familiarity and information quality had significant effects on a consumer's involvement with a brand on its social media page, yet the brand's social media content had a greater influence on a consumer's involvement with the social media page. Further, involvement with a brand's social media led to a positive attitude towards the brand's social media page, which in turn influences future purchase intention from the brand. However, the involvement did not directly influence future purchase intention from the brand. The results suggest the significant importance of quality of social media content.