Exploring the influence of online reviews and motivating factors on sales: A meta-analytic study and the moderating role of product category

Online reviews, which significantly influence product sales, have been a central research topic in the field of marketing. Meanwhile, some motivating factors related to online retailers have been linked to product sales. While several articles have examined the impact between online reviews and motivating factors on product sales, many of the conclusions drawn are contradictory. From 28 studies focusing on online reviews and sales, this study performs a meta-analysis to analyze the true impacts of six review-related factors (i.e., the number of reviews, star ratings, standard deviation of ratings, helpfulness, review length and sentiment), and two motivating factors (i.e., price discounts and special shipping) on product sales. Meanwhile, this paper also studies how one product-related factor (i.e., product age) and one reviewer-related factor (i.e., reviewer's reputation) influence the relationship between online reviews and product sales. In addition, to study the moderating effect of product category, we divide the selected literature into two subgroups which are search and experience products. The results indicate that only review length and special shipping have no significant impact on product sales, while product category has a valid and specific moderating effect on the relationship between these determinants and sales. The presented conclusions will have important implications for academic research and for future industry practice.     

Corporate Governance, Ethics, and the Backdating of Stock Options

Backdating of stock options is an example of an agency problem. It has emerged despite all the measures (i.e., new regulations and additional corporate governance mechanisms) aimed at addressing such problems? Beyond such negative controlling measures, a more positive empowering approach based on ethics may also be necessary. What ethical measures need to be taken to address the agency problem? What values and norms should guide the board of directors in protecting the shareholders’ interests? To examine these issues, we first discuss the role values and norms can play with respect to underlying corporate governance and the proper role of directors, such as transparency, accountability, integrity (which is reflected in proper mechanisms of checks and balances), and public responsibility. Second, we discuss various stakeholder approaches (e.g., government, directors, managers, and shareholders) by which conflicts of interest (i.e., the agency problem) can be addressed. Third, we assess the practice of backdating stock options, as an illustration of the agency problem, in terms of whether the practice is legally acceptable or ethically justifiable. Fourth, we proceed to an analysis of good corporate governance practice involving backdating options based on a series of ethical standards including: (1) trustworthiness; (2) utilitarianism; (3) justice; and (4) Kantianism. We conclude that while executive compensation schemes (e.g., stock options) were originally intended to help remedy the agency problem by tying together the interests of the executives and shareholders, these schemes may have actually become “part of the problem,” and that the solution ultimately depends upon whether directors and executives accept that all of their actions must be based on a set of core ethical values.     

The paradox and change of Russian cultural values

Existing studies on Russian culture using the dominant dimensional theory of culture (e.g., Hofstede’s), in general, offer “stereotypical” characterization of that country’s societal culture but fail to capture the dynamics of cultural values that exist in Russian business and society. We argue that this weakness stems from the either/or logic associated with such an approach. We echo the call for improving the quality of cross-cultural research by going beyond Hofstede (Tung & Verbeke, 2010) through studying cultural paradoxes and their embedded contexts (e.g., Osland & Bird, 2000) in historical and contemporary Russia. To this end, we have applied Faure & Fang’s (2008) framework which builds on the holistic, dynamic, and paradoxical Yin Yang thinking to unravel the paradox inherent and changes to Russian cultural values over time. We find that underlying paradoxical values that traditionally coexisted in Russian culture during the Communist regime have been further reinforced as a consequence of Russia’s interactions with the rest of the world. In post-Communist Russia, traditional values have not disappeared; rather, they coexist and interact with new values as a result of cultural learning and knowledge transfer in global economy. We discuss the implications of these findings for future research.     

Corporate Governance,Ethics, and the Backdating of Stock Options

Backdating of stock options is an example of an agency problem. It has emerged despite all the measures (i.e., new regulations and additional corporate governance mechanisms) aimed at addressing such problems? Beyond such negative controlling measures, a more positive empowering approach based on ethics may also be necessary. What ethical measures need to be taken to address the agency problem? What values and norms should guide the board of directors in protecting the shareholders’ interests? To examine these issues, we first discuss the role values and norms can play with respect to underlying corporate governance and the proper role of directors, such as transparency, accountability, integrity (which is reflected in proper mechanisms of checks and balances), and public responsibility. Second, we discuss various stakeholder approaches (e.g., government, directors, managers, and shareholders) by which conflicts of interest (i.e., the agency problem) can be addressed. Third, we assess the practice of backdating stock options, as an illustration of the agency problem, in terms of whether the practice is legally acceptable or ethically justifiable. Fourth, we proceed to an analysis of good corporate governance practice involving backdating options based on a series of ethical standards including: (1) trustworthiness; (2) utilitarianism; (3) justice; and (4) Kantianism. We conclude that while executive compensation schemes (e.g., stock options) were originally intended to help remedy the agency problem by tying together the interests of the executives and shareholders, these schemes may have actually become “part of the problem,” and that the solution ultimately depends upon whether directors and executives accept that all of their actions must be based on a set of core ethical values.     

The paradox of diminishing returns: Measurement and metrics for valuation of B2C sales professionals

Abstract

The realization of channel multiplicity is increasingly present in retail exchanges. Retailers understand that consumers may seek information in one channel and complete their purchases in another channel. Researchers have labeled this retailing concept as “showrooming.” Showrooming suggests that retail salespeople may provide information, services, and suggestions that generate retail sales revenues at another time in another place. While they likely mediate exchange value, retail salespersons’ contributions to building sales revenues and customer relationships may be difficult to measure. The degree of value engendered in the retail sales role set is associated with product and transaction complexity. As such, retail sales functions may range from highly transactional (i.e., facilitating a transaction) to highly relational (i.e., building retail patronage). This article proffers a taxonomy of retail salespeople based on sales role sets: Companions, Consultants, Clerks, and Closers. Managerial recommendations are provided for measuring retail salesperson performance in an omni-channel marketplace.     

WELL‐BEHAVED PRODUCTION ECONOMIES

We show that production economies are tâtonnement stable if consumers satisfy the weak axiom of revealed preference. To ensure that producer supply decisions are well defined, we restrict prices in the tâtonnement so that positive profits cannot occur but do allow supply decisions to be multi‐valued. The model therefore permits linear activities and hence the technologies that admit capital theory paradoxes. The result thus shows that if the consumer side of the economy is well behaved then capital theory paradoxes are irrelevant for stability. Other features of the Walrasian general‐equilibrium model that have aroused suspicion (e.g. that a price below its equilibrium value may have negative excess demand and thus temporarily move even lower in a tâtonnement) may be a sign of trouble but also have nothing to do with capital theory paradoxes. We show that these phenomena arise even when there is no choice of technique and there is an aggregate production function.     

Crisis leadership in economic recession: A three-barrier approach to offset external constraints

An economic recession is a type of crisis originated from external factors that may imperil an organization’s survival depending on the intensity and duration of the crisis. In peripheral European countries, such as Portugal, the recent financial crisis had devastating effects on various business activities. As a result, Portugal represents an important case study in examining how some corporate leaders have handled the economic recession successfully. I interviewed 20 corporate managers to capture their perceptions of the leadership traits and behaviors exhibited by their CEOs in guiding their companies through the recession. In economic recessions, negative constraints do not affect the most effective leaders, who instead erect barriers against the high-pressure conditions to create a supportive, positive work environment. In order to achieve maximum effectiveness, leaders must act as blocking agents against the negative social impacts of the economic crisis, including the fragility of trust in organizational life (i.e., a barrier against distrust), uncertainty of the future (i.e., a barrier against uncertainty), and toxic emotions (i.e., a barrier against toxic emotions).     

On the Go: How Mobile Shopping Affects Customer Purchase Behavior

Mobile shopping (M-shopping) has become increasingly important in marketing and retailing. Using a unique dataset from an Internet-based grocery retailer, we evaluate changes in customers’ spending behavior upon adopting M-shopping, i.e., using smartphones or tablets to compose, modify, or place orders online. We find that order rate, i.e., number of orders placed per year, increases as customers adopt M-shopping. Especially for low-spending customers, both their order rate and order size, i.e., the amount of the order in dollars, increase as they become accustomed to M-shopping. In addition to the effect on customer's spending behavior, we also find that M-shoppers tend to use mobile devices to shop for habitual products that they already have a history of purchasing. We propose that customers utilize mobile devices because the technology provides convenient access, which leads them to incorporate M-shopping into their habitual routines. Managerially, we recommend that firms should fully leverage their mobile platforms, but they should also keep in mind that mobile devices may not be the most optimal channel for launching new products or promoting products that require more consideration during the buying process.     

Honey they shrank the food! An integrative study of the impact of food granularity and its operationalization mode on consumption

Larger portions of tempting food spur consumption, yet the question remains whether altering food granularity (i.e., dividing a fixed portion into more, smaller versus fewer, larger partitions) also drives consumption. As current insights on the impact of food granularity on consumption are contradictory, this paper offers clarification by zooming in on the different ways in which food granularity has been operationalized in extant research. One can achieve a finer (vs. coarser) food granularity either by partitioning food into more, smaller morsels (vs. fewer larger morsels), or by grouping similarly sized food morsels together into more, smaller packages (vs. fewer, larger packages). Hence, this article introduces the operationalization mode of food granularity (i.e., partitioning vs. grouping) as a variable moderating the effect of food granularity (i.e., fine vs. coarse) on consumption. Consumers are expected to eat less when tempting foods are partitioned in more, smaller portions (as opposed to fewer, larger portions). However, consumers eat more when such tempting foods are grouped into more, smaller packages (as opposed to fewer, larger packages). Both a meta-analytic review (Study 1) and a lab experiment (Study 2) confirm this anticipated interaction effect. In addition, Study 2 shows that the extent of experienced self-control conflict underlies this combined effect of food granularity and operationalization mode on consumption. This study also shows that (un)restrained eating is an additional moderator of the interaction. These findings highlight that the manner used to divide tempting foods has important implications for consumption, which is relevant in light of the current obesity epidemic.     

Shared Value Through Inner Knowledge Creation

The notion of shared value presents business with a challenge: to generate social benefit and profit simultaneously. This challenge involves resolving tensions/paradoxes inherent when integrating the apparent contradictory elements of social and economic values. Unfortunately, resolving such tensions is difficult due to the habitual, automatic nature of sensemaking. This paper offers a mechanism whereby individuals can, over time, begin to overcome habitual sensemaking and potentially resolve tensions inherent in shared value. The mechanism is labeled inner knowledge creation (IKC). IKC is described and its role in creating shared value for businesses is illustrated through a conceptual model. The model shows how IKC develops metacognitive capabilities, builds capacities to resolve tensions/paradoxes, and cultivates openness to others’ perspectives.     

Celebrity versus film persona endorsements: Examining the effect of celebrity transgressions on consumer judgments

This study introduces film personas (e.g., Hermione Granger, Jack Sparrow, Bridget Jones) as effective brand endorsers. A three study, mixed‐method approach is used. Results show that a film persona (e.g., Legolas, from Lord of The Rings, vs. celebrity, Orlando Bloom) is a more (less) effective endorser (i.e., resulting in more positive attitudinal and behavioral judgments). Exploratory findings indicate that this may be due to film personas possessing a tight (vast) association set, which is more (less) easily transferred onto the endorsed brand. Results of this study also illustrate that endorsed brands are shielded from the negative effects of celebrity transgressions when they are featured as their film persona in an endorsement. This study has important implications for advertisers in the choice and execution of their advertisements featuring celebrities.     

Suchmaschinen unter der Lupe: Informationsherrschaft und ihre Schranken

Informational power by search engines should be analysed from different perspectives. On the one hand, unlimited access to personal data can be in conflict with the interests of individuals whose data can be accessed. These interests are part of a right to privacy, including a “right to be forgotten,” which, however, must be balanced against the public interest in disclosure of information. Balancing these conflicting interests is a difficult task — a task that lies with the search engines themselves. On the other hand, firms and individuals may have an interest in their information to be found, in particular (but not only) for commercial purposes. Suppressing or “downgrading” this information as displayed to users may significantly reduce visibility. In light of these interests, it has been proposed to oblige search engines to implement “search neutrality“; i.e., that they have to present search results in an unbiased way. In this article, we take a clear position against ex ante regulation. Instead, competition law provides a sufficient framework, to protect against the abuse of “informational” market power. We sketch a new approach that may allow competition law to be applied more quickly in dynamic markets such as internet search markets.     

The Implicit Association Test in Market Research: Potentials and Pitfalls

Direct measures of attitudes, such as self‐reported evaluations of consumer products and brands, are vulnerable to biases that undermine their validity (i.e., social desirability, self‐deception, and self‐ignorance). In contrast, indirect measures, many of which rely on reaction time to index underlying associations, resist such biases. Here, one such indirect measure, the Implicit Association Test (IAT), is highlighted, and its promise and pitfalls in market research, evaluated. It is concluded that the IAT can serve as a viable and valuable methodological tool. Its diagnostic and predictive advantages, which have been empirically established, outweigh its practical and theoretical drawbacks, which can be satisfactorily addressed.     

The Psychology of Impulse Buying: An Integrative Self-Regulation Approach

Impulsive buying grossly violates the assumptions of homo economicus. A variety of perspectives on impulse buying are presented, which have been put forward in consumer, economic, social, and clinical psychology. These include heuristic information processing, time-inconsistent preferences, personality traits and values, self-identity, emotions, conscious self-control, and compulsive buying. These perspectives may sometimes lead to contradictory or paradoxical findings. For instance, impulse buying is often associated with joy and pleasure but has also been found related to negative emotions and low self-esteem. Our argument is that impulsive buying can be understood in terms of psychological functioning, in particular as a form of self-regulation. Regulatory focus theory is then used to bring the various perspectives together by classifying each as a promotion focus strategy (e.g., seeking pleasure) or a prevention focus strategy (e.g., avoiding feelings of low self-esteem). Finally, the question is discussed whether consumers can and should be protected against impulsivity. Our assertion is that regulation against misleading practices that play on the vulnerabilities of impulsive buyers could be sharpened and that information provision to consumers and retailers aimed at strengthening consumers’ self-regulatory capacities may mitigate adverse consequences of impulse buying.     

The Role of Cultural and Symbolic Capital in Entrepreneurs' Ability to Meet Expectations about Conformity and Innovation

We conceptualize entrepreneurs' success in acquiring resources as the outcome of a socially embedded process of pursuing legitimacy, which in turn encompasses their ability to meet field incumbents' expectations about conformity and innovation. Drawing from Bourdieu's theory of practice, we specifically discuss entrepreneurs' ability, when entering a business field, to simultaneously conform to existing field arrangements (i.e., to "fit in") and to be perceived as innovators (i.e., to "stand out"). A possible paradoxical relationship marks entrepreneurs' ability to meet both of these expectations; we discuss the role of entrepreneurs' cultural and symbolic capital in this process. In addition, two contingency factors may influence how entrepreneurs' ability to fit in and stand out affects their resource acquisition. First, the contribution of the two facets of legitimacy to resource acquisition is influenced by the maturity of the field the entrepreneur enters. Second, entrepreneurs' resource acquisition may be enhanced by their ability to artfully navigate the possible conflicting demands to fit in versus stand out through impression management.     

Personality traits and complaining behaviors: A focus on Japanese consumers

Despite the fact that personality is thought to be one of the main factors that may explain unhappy consumers’ behavior, very little is known about how it affects their attitudes and complaining strategies. This is particularly true in the case of Japanese consumers where scant research has been conducted on their complaining behaviors. Hence, the main objective of this study is to investigate the roles of three personality traits (i.e., self‐confidence, aggressiveness, and altruism) of Japanese consumers in explaining their attitudes toward complaining, perceived likelihood of successful complaints (PLSCs), and complaining behaviors. On a sample of 263 respondents, a univariate general linear model (GLM) analysis is performed to assess the moderating roles of personality traits on complaint‐related variables. The results show that, on the one hand, in contrast to self‐confidence, the levels (i.e., high vs. low) of aggressiveness and altruism have significant impacts on attitudes toward complaining and PLSCs. However, the level of self‐confidence appears to have the most significant impacts on public complaining behaviors. On the other hand, altruism is found to be the only personality trait that may explain consumers’ private complaining behaviors. Additional analyses reveal interactive effects of the personality traits on complaining attitude and behaviors.     

When Do Relationships Pay Off for Small Retailers? Exploring Targets and Contexts to Understand the Value of Relationship Marketing

Relationship marketing has taken on a significant role in both retail practice and academic study. However, from the introduction of the concept of relationship marketing into the literature scholars have noted that relationship building may not be beneficial to all firms under all conditions. In this study, we investigate this issue attempting to gain a greater understanding of the value of relationship marketing activities across targets (i.e., customers and suppliers) and within contexts (i.e., competitive intensity and three elements of market dynamism) on a retailer's ability to develop the capability of market responsiveness. Our findings, based upon a sample of 172 small retailers, demonstrate that differences do in fact exist in the value delivery to retailers from relationships with different targets and across different contexts in which the retailer operates. As such, the results of this study extend the extant relationship marketing literature, refining our understanding of the value of relationship marketing. Implications for academics and practitioners are discussed.     

Understanding how the message appeal of moral beauty influences advertising effectiveness under mortality salience

Consumers may be reminded of life mortality by some life events and media content. Mortality salience as a contextual factor has not been sufficiently investigated in the existing literature of advertising. The present research analyzes how the interplay between mortality salience and moral beauty influences consumers’ perceptions of life meaning and their responses to advertisements. Results of two studies confirmed that participants perceived increased life meaning when viewing advertisements that presented moral beauty. In Study 1, participants who were reminded of death evaluated an advertisement that presented moral beauty more favorably than an advertisement without such content. In Study 2, younger (i.e., age 18–25) and older participants (i.e., 55 and above) were recruited and the results indicated that the phenomenon observed in Study 1 was only prominent among younger participants. These results are believed to provide interesting insights to marketing communication both theoretically and practically.     

The effect of privacy choice in cookie notices on consumers' perceived fairness of frequent price changes

Recent regulatory changes (i.e., General Data Protection Regulation of the European Union) enforce that seller (e.g., retail and service) and all other websites disclose through cookie notices which data they collect and store. At the same time, websites must allow consumers to disagree to the tracking of their browsing behavior. Despite sellers' concern about the loss of consumer insights—as consumers might disagree to the collection of their browsing data—cookie notices might also have a surprising side-effect: Consumers might accept frequent price changes (from personalized or dynamic pricing) more readily, if they agree through a cookie notice that their behavior can be tracked. Specifically, two experimental studies show that consent to the tracking of browsing behavior increases consumers internal attribution of a price change, as consumers attribute the cause of the change (here: giving up data) to themselves. This increases price fairness perceptions and, in turn, purchase intent. As a result, for online sellers of goods or services the implementation of cookie notice should no longer be thought as a matter to be avoided, but rather a trade-off decision: Loss of a part of consumer insights versus higher acceptance of data-driven marketing mix decisions, such as frequent price changes.     

Examining Antecedents of Health Insurance Literacy: The Role of Locus of Control,Cognitive Style,and Financial Knowledge

Today's consumer is expected to make health-care decisions that have serious implications for their welfare. However, a major barrier to these decisions is a basic lack of understanding of health insurance. A critical first step is to examine drivers of health insurance literacy and in turn offer interventions that can have a positive impact on consumer welfare. This article explores the relationship between relevant consumer psychographics, financial knowledge, and demographics with health insurance literacy. Results indicate that while demographics play a role, the degree to which consumers believe a situation or event is under their own control (i.e., locus of control), how they process information (i.e., cognitive style), and consumer's financial confidence (i.e., subjective knowledge) is a critical indicator of their health insurance literacy. Cluster analysis reveals three “faces” of health insurance literacy.