Cultural influences on consumer satisfaction with impulse and planned purchase decisions

This study examines factors thought to influence consumers' planned and impulse purchase decisions including subjective culture (individualist or collectivist consumers) and the presence of another person at the time of purchase. Data was collected in four countries — the USA, Australia, Singapore, and Malaysia. The results indicate that overall, consumers are differentially influenced by others in planned and impulse purchase situations, even after controlling for price. These differential influences can be explained by culture. Compared to more individualist consumers, more collectivist consumers are likely to be more satisfied with an impulse purchase when another person is present at the time of purchase.     

Online consumer learning as a tool for improving product appropriation

Online tutorials make access to information easier, faster and more interactive. This research seeks to investigate the role of online knowledge acquisition on the relationship between Internet users and products. In particular, we seek to develop the concept of product appropriation. A survey (N = 810) was conducted using five settings (i.e., different products and online learning media). First, findings support the two-dimensionality of product appropriation (i.e., control and identification). Second, results show a positive relationship between online consumer learning and product appropriation for novices, and a negative relationship for experts. Improved appropriation increases product attitude, word-of-mouth and purchase intention.     

Category management,product assortment,and consumer welfare

In this article, we endogenize product assortment decisions under a category management (CM) framework in a channel setup. We find that (1) product assortment is polarized more under CM than under a non-CM regime; (2) the price of a high-end (low-end) product in an assortment increases (decreases) under CM than under a non-CM regime; and (3) a high-quality manufacturer makes more profit than a low-quality manufacturer. In our model, the manufacturer’s choice of quality and its polarization is driven by the existence and the decisions of the retailer (CM or non-CM). Finally, we have an interesting result on consumer welfare. We find that the total consumer welfare, as measured by consumer surplus, worsens under CM only when there is sufficient heterogeneity in consumers’ tastes.     

Effects of consumer goals on attribute weighting,overall satisfaction,and product usage

With the use of field data from a live theater company, this article demonstrates that customers' goal orientation affects not only what information is used in assessing overall satisfaction, but also downstream measures of level of satisfaction and product usage. The study segmented the customers into four groups based on their goal orientations for the established arts goals of cultural enrichment and relaxation, finding that the different groups weigh the attributes of the service differentially in determining overall satisfaction based on each attribute's ability to fulfill their goals. Furthermore, customers whose goals match the organization's orientation give the product a higher evaluation and utilize it more often. © 2001 John Wiley & Sons, Inc.     

Culture, product type, and price influences on consumer purchase intention to buy personalized products online

With personalization, consumers can choose from various product attributes and a customized product is assembled based on their preferences. Marketers often offer personalization on websites. This paper investigates consumer purchase intentions toward personalized products in an online selling situation.The research builds and tests three hypotheses: (1) intention to purchase personalized products will be affected by individualism, uncertainty avoidance, power distance, and masculinity dimensions of a national culture; (2) consumers will be more likely to buy personalized search products than experience products; and (3) intention to buy a personalized product will not be influenced by price premiums up to some level. Results indicate that individualism is the only culture dimension to have a significant effect on purchase intention. Product type and individualism by price interaction also have a significant effect, whereas price does not. Major findings and implications are discussed.     

The influence of anthropomorphic appearance of artificial intelligence products on consumer behavior and brand evaluation under different product types

While artificial intelligence products are widely used in the market, their anthropomorphic appearance design is becoming a frontier issue in product strategy and consumer behavior research. The aim of this study was to investigate the influence of anthropomorphic appearance on consumer behavior and brand evaluation under different AI product types. It was conducted in China, a new but rapidly-growing country in the field of Internet, AI technology and AI product consumption. This study conducted four situational experiments with a 2 (anthropomorphic design: anthropomorphic vs. non-anthropomorphic) × 2 (product type: hedonic vs. utilitarian) between subjects’ experimental design. Data was collected from 1172 Chinese “Digital Natives” by using a structured questionnaire. The findings revealed that for hedonic AI products, anthropomorphic appearance improves consumers' purchase intention and brand evaluation through perceived entertainment, and intelligence level significantly moderates the mediating effect of perceived entertainment; while for practical AI products, anthropomorphic appearance improves consumers' purchase intention and brand evaluation through perceived usefulness, and intelligence level does not significantly moderate the mediating effect of perceived usefulness. There is no significant moderating effect of intelligence level on perceived usefulness. The study contributes to development and validation of a more comprehensive understanding and theoretical foundation of anthropomorphism, and furthermore explores the impact of anthropomorphic appearance on consumer behavior and brand evaluation under different AI product types. This study also provides insights for companies to apply anthropomorphic strategies.     

On consumer trust and product loyalty

Using a multidimensional conceptualization and drawing on previous theoretical frameworks, this study identifies the dynamic relationships between consumer trust and product loyalty, and explores the mechanism, by which these constructs are formed. It further examines the nature and direction of the chain of effects related to the formation of consumer trust and loyalty and their links, all in the context of the core relationship between consumers and firms from the production to consumption, and back to production again. This analysis implies that blind consumer loyalty to a product may lead to the elevation of producer's power and give a blank card for setting prices, adjusting quality and altering services, and ultimately reversing consumer sovereignty. The analysis also implies that consumer satisfaction domain spans much more over and beyond the consumption of a product and the consumer–firm relationship extends way beyond having the product and paying for it.     

Disconfirmation processes and consumer evaluations in product usage

Recent works on satisfaction theory have shown that disconfirmation plays a major role in the determination of satisfaction levels. Less, however, is known about the mental process used by consumers to form disconfirmation cognitions. This study operationalized and tested the role of two types of disconfirmation, inferential and overall (perceived), on the satisfaction of appetite suppressant users after first trial and repeat usage situations. Results showed that overall perceptions mediated the relationship between inferred disconfirmation and satisfaction in both time frames, as hypothesized.     

Effects of prior brand usage and promotion on consumer promotional response

We examine how prior purchases influence consumer response to promotional activity in brand choice decisions. To improve understanding of the nature of this influence, we separate previous purchases into those on promotion and those not on promotion, and consider their differential impact on subsequent brand choices. Impact may be observed at the brand level, category level, or both and we suggest circumstances in which each might occur. Across four product categories, consumer sensitivity to price, price promotions, and feature advertisements increases for all brands in the product category following a promotional purchase but also decreases for the most recently purchased brand. The magnitudes of the results indicate that prior promotional purchases influence choice more than prior brand usage does. We offer managerial recommendations regarding promotional activities, for both retailers and manufacturers.     

How looking forward over the short period to-go affects consumer enjoyment: Role of temporal scarcity in access-based services

Access-based services (ABS) have shown tremendous growth recently. We examine the relationship between service period framing and consumers’ anticipated ABS enjoyment. Four scenario-based experiments revealed that focus frame of the service period affected anticipated enjoyment of upcoming ABS experiences and this effect is mediated by perceived temporal scarcity. We also examine the moderating role of perceived product benefits, indicating that this mediated focus-frame effect is amplified among consumers tending to pursue hedonic benefits from the borrowed goods. Lastly, we confirm the anticipated enjoyment’s mediating role on the relationship between focus frame and consumers’ positive behaviors and attitudes toward ABS.     

How should a company respond to a product harm crisis? The role of corporate reputation and consumer-based cues

Product harm crises such as Vioxx and Firestone can be devastating events for companies. Although lawsuits by victims tend to draw most of the attention, observers, who typically learn of product harm crises through media outlets, can also cause extensive damage to the companies involved, as they represent current and potential customers of the product.This article provides guidance to practitioners in choosing the appropriate strategy to effectively deal with a product harm crisis. The authors recommend that corporate reputation and consumer-based cues, such as gender and nationality, be incorporated in the decision-making process regarding the choice of a corporate response.     

Online information search termination patterns across product categories and consumer demographics

While accessing information online, consumers exhibit differences in their patterns of search, that is, time spent per search episode and search frequency. The search patterns vary across both consumer characteristics and product categories. We empirically investigate consumer online information search termination patterns, and relate the differences to product categories and consumer characteristics. Findings of such an empirical study would be useful for planning communication strategies, website design, etc. The model is calibrated on empirical data collected through online surveys. We find that consumer learning occurs when consumers search across search goods, but not when they search across experience goods.     

A model of product compatibility introduction with consumer recognition

Firms recognizing consumers often use behavior-based pricing (BBP), i.e., condition prices on purchase history. Prior research studies the framework with independent product offerings and shows that BBP leads to poaching and decreases each firm's profits. In this paper, we investigate the efficacy of BBP in a two-period duopoly where firms provide compatible product categories and endogenously determine the levels of cross-compatibility. We first revisit the impact of behavior-based pricing in the traditional framework with independent offerings and verify the competition-increasing effect of BBP. We then examine how the impact of BBP differs when firms introduce product compatibility. Interestingly, we find that firms can benefit from BBP when firms introduce product compatibility. More specifically, when the value consumers obtain from perfect compatibility is moderate, implementing BBP is more profitable than without consumer recognition. The intuition is that when the value of perfect compatibility is medium, consumers do not expect good switching deals in the second period and firms can charge higher prices in the first period. Our findings not only complement the BBP literature but also shed light on the firms' strategic decisions on product compatibility.     

Consumer ethnocentrism,product necessity and quality perceptions of Russian consumers

Retail buyers in Russia have indicated that some customers have expressed a desire to purchase domestically produced products over imports. Consumer ethnocentrism has been proposed as a measure to provide retail buyers with the information necessary to market to these consumers. The purpose of this research is to determine if perceived product quality of products differs based on country of origin, product necessity and consumer ethnocentric tendency. A repeated measures ANOVA test indicates that perceived quality differs by necessity, by product, by country. A consumer ethnocentrism effect on the overall model, however, was not significant. We conclude that Russian consumers do perceive differences in product quality based on country of origin and product necessity, but that consumer ethnocentrism does not have an effect on perceived product quality.     

How culture shapes consumer responses to anthropomorphic products

Anecdotal evidence suggests that Eastern consumers respond more favorably to anthropomorphic products than their Western counterparts. In the present work, we examine the validity of this common intuition and uncover the specific cultural dimension underlying this difference in consumer response. Specifically, across a cross-national field study and three controlled experiments, we demonstrate that collectivistic consumers favor anthropomorphic products more than non-anthropomorphic products, whereas non-collectivistic consumers do not display this relative preference. This interactive effect holds across various product categories, regardless of whether collectivistic thinking is measured, manipulated, or operationalized based on nationality or ethnicity. We offer managerial and theoretical implications that stem from our findings.     

How consumer ethnocentrism modulates neural processing of domestic and foreign products: A neuroimaging study

Consumer services literature offers substantial evidence that ethnocentric consumers tend to prefer domestic over foreign products. Yet no research to date has delved into the question how consumer ethnocentrism (CE) modulates the neural processing of products. This is the first study resorting to neuroimaging to explore to what extent CE levels affect the processing of domestic (Spain) and foreign (USA and China) products. The brain data yielded by neuroimaging reveal that highly ethnocentric consumers experience a greater degree of activation in brain regions linked to self-reference and reward when considering to purchase domestic products and a greater activation in brain regions related to risk in the case of foreign products.     

Using product design strategically to create deeper consumer connections

Historically, product design has most often been considered a process for creating functional differentiation through added features, superior performance, and so forth. However, with the advent of more design-oriented companies, such as Apple, Dyson, and others, design is increasingly being seen as an important strategic tool in creating preference and deeper emotional value for the consumer. In this research, we show how different design elements may be used strategically to create two very different outcome chains from a consumer's perspective. This work shows that certain design elements are more likely to create functional product differentiation and transactional consumer outcomes, while other design strategies tap a more emotional form of value creation. As we show, an emotional focus in value creation is more likely to create desired and powerful outcomes such as loyalty, joy of use, and even passion. Given current business trends towards relationship-based customer management, this emphasis on emotional value creation through product design is particularly relevant. In order to make these ideas actionable, we offer specific product design strategies that managers can use to enhance the transactional and relational value of their customer relationships.