Multi-Attribute Dimensions of Service Quality in the Fast Food Restaurant Industry

Abstract

As the fast food restaurant industry grows in the Western industrialized world, it has also become increasingly competitive. In such an environment, marketers are concerned about how to increase or maintain market share through better service quality and effective segmentation strategies. This paper reports a two-phase exploratory study conducted to determine the dimensions of service quality in the fast food industry, from the consumer's perspective. Factor analysis revealed 10 dimensions made up of 57 different attributes. The 10 dimensions were able to discriminate among three groups of fast food patrons, namely: frequent, less frequent, and more frequent patrons. Managerial implications of these findings, for market segmentation, targeting, positioning, and promotional strategies are discussed.     

Masstige consumption values and its effect on consumer behavior

This study provides a basis for market research for a deeper understanding of the masstige by segmenting the market according to the multi-dimensional consumption value and by explaining how masstige consumption value affects masstige brand equity and consumer's purchase intention. This research explores the relationship between the two types of brand extensions and consumer behavior because most brands penetrate the masstige market via brand extensions. Study 1 validates the dimensionality of the masstige consumption value and performs value-based market segmentation. From the results obtained in Study 1, Study 2 identifies the linear relationships between the dimensions of the masstige consumption value, masstige brand equity, and purchase intention. The results contribute to the existing literature by comprehensively investigating the consumption value and its effect on consumer behavior in the emerging masstige market.     

Should reputable e-retailers undertake service activities along with sales?

With the growth of e-commerce and the elevated service requirements of consumers, e-retailers should carefully evaluate the profitability of delivering product services themselves that were once provided by suppliers. Within this context, we apply game theory to construct a principal-agent model to study a sales and service choice problem faced by an e-retailer. Three strategies are proposed in our paper, pure platform strategy (as the benchmark), resale strategy, and resale plus service strategy. Through comparison and analysis, we find that the sales and service strategy preferences of the e-retailer are influenced by reputation and service costs. Additionally, highly reputable e-retailers tend to provide superior levels of service and prices rather than excessively pursue market demand under the resale plus service strategy. Furthermore, we define the ratio of quality plus service to price as the consumer's performance ratio. Interestingly, reputable e-retailer may bring bad consumer's performance ratio. Moreover, the win-win situation occurs when the e-retailer provides the resale strategy or when the supplier prefers the resale plus service strategy. Our study suggests that e-retailers should make tradeoff between control over services and service costs, and make full use of the advantage of reputation to adjust their income strategy, avoiding blindly pursuing low prices and ignoring the service. In addition, for the supplier, it is appropriate to transfer the service to the e-retailer according to his own conditions.     

Determination of Export Channel Strategies–The Experience of New Zealand Firms

ABSTRACT

There are many issues which need to be considered when businesses decide to internationalise their operations. One of the issues is the choice of export channels. The choice of export channels has a decisive impact on a firm's international marketing program. Export channel decisions are well researched in many countries However little attention has been made to investigate the choice of export channels by New Zealand international marketers This study examines the factors influencing the choice of export channels of 115 New Zealand firms conducting business with Taiwan. The results suggest that marketer's choice of export channels is influenced by the host market's business system, market size of the industry in the host market, and the degree of produce differentiation. The host market's business system is revealed for the first time to be a factor influencing the choice of export channels.     

Tradeoffs between sensory attributes and organic labels: the case of orange juice

Researchers have investigated the role of sensory attributes and organic labels on consumers’ preferences and perceptions of food, but few has examined whether sensory attributes are relevant for consumers who prefer organic food and the extent to which sensory attributes influence consumer's marginal willingness to pay for organic food. The objective of this study is to determine how sensory attributes and organic label work together to influence consumer's stated preference and marginal willingness to pay for orange juice. To achieve this, we conducted a blind sensory evaluation of two orange juices followed by a discrete choice experiment to determine the extent to which consumer's stated preference for orange juice labelled as organic is affected by sensory experience preceding the choice experiment. Random parameter logit models and latent class conditional logit models are used to explain stated preference. Results indicate that the effect of sensory attributes on consumer's marginal willingness to pay differed by organic juice and conventional juice.     

Uniform or spatially differentiated? Pricing Strategies for Information Goods under simultaneous and sequential decision-making in multi-market context

Product pricing has been one of the central issues in the field of marketing and consumer services for managers and researchers alike. However, pricing of information goods has not been paid much attention in literature. For information goods the marginal costs of production and transportation of information goods (online movies, video games, etc.) is almost zero. Hence, the pricing decisions need to be thought of purely in competitive profit maximizing terms. This paper proposes mechanisms for managers to evaluate and base their pricing decisions on rational frameworks that takes into account various situations when they enter a new market and when they are incumbent in a new market. This paper addresses the research gap of spatially differentiated pricing strategy for information goods that has not been studied in literature so far. We create stylized theoretical models under both, sequential and simultaneous decision-making conditions. We determine the equilibrium price and the equilibrium profit for the two firms for each of the four possible scenarios based on their pricing strategies. Our analysis reveals that the dominance of one pricing strategy over the other depends on product differentiation factor capturing joint effect of the product substitutability and consumer's price sensitivity under sequential decision making and the market size along with consumer's price sensitivity for simultaneous decision making. As an extension, we propose a generalized model demonstrating the uniform and spatially differentiated pricing strategies of the firms under simultaneous and sequential selection for multiple domestic and international markets.     

Segmentation and communication in the industrial marketplace

This article reports the results of a study undertaken in an intensely competitive industrial market in which the sponsoring company needed to identify those segments of the market that would lead to sales growth. The marketing planning and segmentation literature is used to provide conceptual guidance in developing a viable marketing strategy. Commercially available data were combined with data obtained from a telephone survey to identify potential new customers and to test a series of hypotheses. The results of the study suggest that 1) awareness of the company by potential buyers, 2) the size of the buyer's firms, and 3) the geographic location of the buyer's firms are all related to the buyers' interest in the company's products and their willingness to receive both impersonal and personal communications from the company.     

Organic as a Heuristic Cue: What Spanish Consumers Mean by Organic Foods

One of the strategies employed by companies to differentiate themselves from others, in the food market, has been to market organic products according to the assumption that environmental values are an important influence on people's behavior. However, studies of the behavior of organic food consumers show that there is some debate on this subject. Although some studies associate organic food consumption with motives and attitudes in which the environment plays a predominant role, a greater number conclude that the motives for consuming this type of food are basically egoistic (related to health, food safety, or the quality or flavor of the food). This can lead to problems in deciding the central thrust of the marketing strategy. The purpose of this paper is to analyze the meaning and interpretations placed on the term “organic,” and how they are integrated, as a way to explain consumption behavior. Qualitative research methods were adopted for this purpose. Four focus group sessions with different sociodemographic profiles, held in the cities of Madrid and Seville, in Spain, displayed two evident paradoxes, which could indicate that environmental motives are not important for consumers in this market. It is concluded that the term “organic” plays an important role as a heuristic cue to superiority, irrespective of the consumer's knowledge about the real features of organic food. Three alternative models are presented to explain consumer behavior. These results could be useful to food companies, largely in connection with positioning this type of product and with their communications policy.     

Ethical consumerism and wage levels: Evidence from an experimental market

This paper contributes to the promotion of multidisciplinary research on ethical consumerism by providing experimental evidence on consumer's willingness to reward sellers by paying higher wages to their workers. We analyze repeated interactions occurring between workers, sellers, and consumers within the framework of an experimental market. By successfully performing a task, workers allow sellers to offer a good through a market. Sellers set the price of goods and decide the wages of workers. Consumers enter the market sequentially and decide whether to accept one of the offers or to leave the market. Our data show that, especially in the first periods of the experiment, some sellers opt to pay high wages to their workers. However, this behavior is not rewarded by consumers, whose purchasing choices are almost exclusively driven by self-interest. In our interpretation, the connection between workers and sellers that connotes our experimental design, with workers who allow sellers to enter the market, may induce consumers to believe that eventual sacrifices for paying high wages to workers must be entirely on sellers. Our result suggests that the more salient is made the importance of some stakeholders in allowing the firm's activity, the fewer consumers' may be willing to sacrifice their monetary payoff to improve these stakeholders' condition.     

Consumer showrooming: Value co-destruction

PurposeThis research employs value co-destruction as a theoretical lens to investigate the antecedents of consumer showrooming behavior. Drawing on relevant literature, a research model specifying showrooming dynamics from the consumer's perspective is conceptualized and empirically tested.MethodologyUtilizing survey data from 275 consumers, structural equation modelling is employed to assess a research model including thirteen hypotheses.FindingsThe study findings reveal that showrooming behavior is complex and comprises differing degrees of accumulative value co-destruction and value co-creation behavior across online and offline channels. Specifically, consumer characteristics, channel characteristics and product characteristics are shown to be associated with in-store value taking and online value co-destruction and co-creation.Originality and valueScholarly insights into the antecedents of consumer showrooming are rare. In responding to calls for research, this paper represents the first empirical investigation of consumer showrooming behavior utilizing the lens of value co-destruction. The study adds to academic understanding of the showrooming phenomena and demonstrates that co-destructive and co-creative behaviors can occur in a simultaneous, concurrent and iterative fashion. Focusing on practice, the findings reveal opportunities for experience-led shopping environments.     

Managing future uncertainty: Reevaluating the role of scenario planning

The business environment for many firms is changing rapidly and is becoming increasingly uncertain due to the disruption caused by new digital technologies, deregulation, new business models, and the threat of new competitive entrants. This dynamic competitive environment increases the level of uncertainty for senior executives and strategic planning teams who bear responsibility for the strategic development of the firm, particularly in terms of the future direction, scope, and the strategy required to deliver on corporate objectives. This in turn, places increased scrutiny on the strategic planning tools that are used to undertake a rational and comprehensive analysis of the competitive dynamics that inform strategy formulation. This article presents empirical findings and reflections on a scenario-planning project that sought to develop a long-term corporate level strategy. While scenario planning is an established constituent of the strategist’s toolbox, the increasing level of dynamism and uncertainty in many markets has meant that it has seen a resurgence. This article presents empirical findings on how the scenario-planning tool was selected and applied before reflecting on the individual and organizational outcomes of using scenario planning to develop an organizational strategy in uncertain market conditions.     

Guilt online vs. offline: What are its consequences on consumer behavior?

Although various consumption episodes, types of products, and dimensions of guilt have been examined in previous studies, the existing literature has not addressed whether guilt could arise differently depending on the purchase channel (online versus in-store). This research thus investigates the effect of the purchase channel on consumer's guilt and the consequences of that guilt on consumer's anticipated satisfaction. Two experiments conducted in different contexts show that perceived value moderates the relationship between the purchase channel and guilt. Further, we demonstrate that perceived value is also a moderator of the mediating effect of guilt in the influence of the purchase channel on anticipated satisfaction.     

The Sunrise Economy: 24-hour Drinking Legislation in Leeds

ABSTRACT

As the growth of the public houses has become static within the UK the government has been looking at different ways in which they can strategically expand the market, of which one is the 24-hour drinking legislation.

The 24-hour drinking legislation has been operative in the United Kingdom for just over one year now and this article looks at how a chain of public houses has adopted this legislation into their day-to-day running of the business. The paper also discusses the types of consumer's who frequent the public houses at the new trading times and in particular, with the aid of consumer behaviour theory and in particular the PIECE model, discusses the process in which these consumer's go through.

The main conclusions denote that shift workers, the unemployed, and blue collar workers all use these premises at the new trading times.     

Market segmentation

Market segmentation is a crucial marketing strategy. Its aim is to identify and delineate market segments or “sets of buyers” which would then become targets for the company's marketing plans. The advantage to marketing management is that this technique divides total demand into relatively homogeneous segments which are identified by some common characteristics. These characteristics are relevant in explaining and in predicting the response of consumers, in a given segment, to marketing stimuli.

The market can be subdivided by geographic, demographic, psychological, psycho‐graphic or behavioural variables. The advantages and disadvantages of each of these types of segmentation variables are discussed in detail in this paper. Kotier (1984) has identified four requirements that a marketer can use in evaluating the desirability of potential market segments, namely measureability, accessibility, substantiality and actionability. Once a segment has been identified which meets these requirements, it is possible to develop a product or service which meets the unfulfilled needs of this segment. A marketing mix can then be devised to reach the segment identified economically and efficiently. A strategy of market segmentation attempts to regain some of the benefits of the closer association with customers which was the strength of traditional business operations.     

The combined influence of time pressure and time orientation on consumers’ multichannel choice: evidence from China

This article deals with the influence of time pressure and time orientation on consumers’ multichannel shopping behaviour. Previous studies have documented the role of time pressure on customers’ channel choice in developed countries, without examining the moderating effects of time orientation on the relationship between perceived time pressure and consumers’ attitudes towards online/offline channels. To fill this gap, this article aims to investigate the combined influences of time pressure and time orientation on consumers’ attitude towards both online and offline shopping. The results show that time pressure helps consumers form more favourable attitudes towards online shopping than towards offline shopping. Further, the effect of time pressure on consumers’ channel attitudes depends on one's time orientations. The implications for marketing channel strategies and market segmentation in Asian emerging markets are discussed.     

How the Temporal Framing of Energy Savings Influences Consumer Product Evaluations and Choice

Consumer interest in behavior that is good for the environment is increasing, but actual behavior consistent with this objective has not risen accordingly. This may in part be due to consumers not realizing that their environmentally protective behaviors may have tangible future benefits for them. These studies examine the influence of message frames and a consumer's propensity to think about the future for products that have future benefits. More specifically, these studies examine how consumers respond to temporal frames of savings on product packaging for energy efficient products. Two studies suggest that the temporal framing of savings can influence product choice, purchase intentions, attitudes, and perceptions of savings. The results indicate that future‐oriented consumers are likely to have more positive evaluations when savings are framed in the distant future compared to the near future. In addition, there is a mediating effect of perception of savings. These experiments provide information of interest to marketers and researchers regarding the influence of temporal frames and a consumer's temporal orientation on products that have future benefits.     

Implementing Marketing Strategy Through a Market Orientation

The adoption of specific marketing strategies is related to several factors in an organization including the organization's mission, objectives, resources, and market orientation. We report an exploratory study in which we define relationships between market orientation and marketing strategy in a high technology environment - the telecommunications industry in the United States. Market orientation is defined as a culture that influences how employees think and act. Our results indicate that a market orientation provides a context for the implementation of specific marketing strategies by serving as a moderator of operational marketing strategy. For example, those organizations who possess a strong market-oriented culture (high-spirited cultures) engage in value creation strategies such as market segmentation, developing new products/services for new markets, and product or service customisation. Those organizations possessing low market orientations (ineffectual cultures) generally practice less aggressive and internally focused strategies such as charging lower prices, providing limited customer service, product/service standardization, and undertake limited market research.     

Numeric or weighted distribution? The effect of different channel performance metrics on market share

Abstract

Previous studies have found a convex relation between weighted measures of distribution and market share for consumer products in developed economies, while companies in emerging markets often use a non-weighted (numeric) distribution measure to manage their channel strategy. In contrast to the markets with high retail concentration, the numeric distribution could be best suited to a more fragmented retail market in which the percentage of physical distribution is important. We investigate the effects of expanding numeric versus expanding weighted distribution by studying stores in channels and regions characterized by structural differences in an emerging market. Our data come from retail audits in Brazil and include 91 soft drink manufacturers, 195 brands and 1,110 stock-keeping units. Our study highlights the importance of numeric distribution as a performance measure in this market. Additionally, we show that the effects of numeric and weighted distribution on market share vary by region and channel format.     

Geographic export diversification: Determinants and their link with export performance

This study examines company‐specific factors that may help explain the choice of an export‐market strategy and explores how the selected export strategy contributes to explaining company's export performance (XP). Concentrating on a specific area within a broad spectrum of export behavior analysis has enabled us to examine these factors in greater depth. The results of our research, which was carried out using a sample comprising Spanish exporting companies, show a firm's size, a firm's age, and a firm's greater foreign ownership in its share capital are all determining factors for adopting a strategy geared to export‐market diversification. A greater level of investment in R&D and greater international commitment are also important in this regard. We suggest reinforcing these two factors because there is evidence of a better XP among firms that have a wider range of foreign markets.     

A meta-analysis of consumer choice and subliminal advertising

A meta-analysis is used to demonstrate the ineffectiveness of subliminal advertising to influence the consumer's decision between alternatives. A review of narrative reviews is provided to illustrate that sample size and effect size is seldom used as the basis for evaluating whether subliminal marketing stimuli are an effective means for influencing consumer choice behavior. The results of the meta-analysis indicate that there is very little effect. The resulting coefficient had a value r=0.0585, which places the effectiveness of subliminal advertising on choice between the impact of aspirin on heart attacks and the relationship between alcohol abuse and a tour of duty in Vietnam (Rosenthal, 1990). © 1996 John Wiley & Sons, Inc.