Capturing flexible correlations in multiple-discrete choice outcomes using copulas

This paper aims to examine three purchase patterns which frequently occur in multiple-discrete choice situations: joint-purchase, quantity-preference, and quantity-concordance. First, “joint-purchase” refers to the tendency that two products are either purchased together or separately. Second, “quantity-preference” refers to the tendency to purchase a product in preferred amounts. Third, “quantity-concordance” refers to the tendency that purchase quantities of two products are either concordant or discordant. These patterns are mainly attributed to unobserved factors such as economic reasons, habits, time pressure, mood, and/or physical environment. No study has fully incorporated the three purchase patterns simultaneously.In this study, we develop a unified copula-based approach which can incorporate all the three purchase patterns simultaneously. The proposed approach is so flexible that any copula function or parametric distribution can be used. We use a simulation study to illustrate the trade-off between the Gaussian copula and the FGM copula. We show the Gaussian copula which captures the full range of correlations quickly becomes infeasible as the number of choice alternatives increases. On the contrary, the FGM copula substantially reduces the computational complexity and is scalable to larger dimensions. Furthermore, we extend the range of correlations of the FGM copula at almost no cost by introducing the sine generating function. To show the scalability, we apply this approach to IRI scanner panel data with 13 alternatives. Throughout two empirical studies, we show that the three purchase patterns indeed exist in our data. Moreover, we find that ignoring the three purchase patterns distorts key managerial metrics such as demand predictions and price elasticities. This results in suboptimal managerial decisions regarding peelies promotions, bundling, and package size. Furthermore, we illustrate that managers can improve the profitability of promotions by implementing a joint promotion strategy based on the three purchase patterns.     

A metacultural approach to predicting self-employment across the globe

Drawing from neo-institutional theory, we examine the relationship between preference for entrepreneurship and actual entrepreneurship behavior across multiple countries and cultures. We elucidate how multiple societal-level cultural models, namely Hofstede, Global Leadership and Organizational Behavior Effectiveness (GLOBE), and Schwartz affect the individual-level process connecting expressed preference for self-employment and actual behavior. Our hypotheses were tested using a multilevel technique on a sample of 20,755 individuals across 24 countries. The findings indicate that the moderating effect of predominant cultural cognition is partially supported. Contributions and implications for theory and practice are also discussed.     

Temporal duration and attribution process of cause-related marketing: moderating roles of self-construal and product involvement

Applying the self-construal (SC) temporal match effect to a cause marketing context, this study investigated the conditions under which cause-related marketing campaigns generate stronger altruistic attributions of sponsor motives and subsequently purchase intention. As major factors, temporal duration (long-term vs. short-term), SC (independent vs. interdependent), and product involvement (high vs. low) were incorporated in the integrative model and the three-way interaction effect on altruistic attributions was assessed. With the use of online experimental data from 323 college students, the matching effect of temporal duration and SC was found, such that independent individuals were influenced by the message that was framed with the distant, long-term duration. Our findings further found that this matching effect was more pronounced for the high-involvement product, but not for the low-involvement product. In addition, this study discovered that altruistic attributions mediated the effect of temporal duration on purchase intention in the low-involvement product condition, but not in the high-involvement condition. Theoretical and managerial implications were discussed for researchers and practitioners.     

An Examination of the Effect of Consumer Personal Traits on Show Rooming Behavior: The Effect of Product Type

The rapid growth of online commerce and spread of mobile devices have created various trends in product-purchasing behaviors of consumers. Especially in online-to-offline commerce, “showrooming” has increased. This involves searching for products offline but purchasing them online. Among theories of consumer buying behavior based on traditional consumer characteristics, this study empirically analyzes whether there are group-specific differences in showrooming. The results show that innovative consumption tendencies are significantly related to push, pull, and mooring factors. The findings also elucidate the role of showrooming buying behavior in these relationships. In terms of push and mooring factors, these relationships are strengthened by showrooming purchase experience. This study divides products into electronic products and apparel and analyzes the effects on purchase experience using a moderator.     

Contextualizing customer organizational citizenship behaviors: The changing nature of value cocreation and customer satisfaction across service settings

This study identified economic, emotional, and relational value as outcomes of customer organizational citizenship behaviors (COCBs; Study 1: in‐depth interviews). Study 2 (filed survey) found that COCBs have the strongest impact on emotional value compared with economic and relational value. Economic, emotional, and relational value also lead to customer satisfaction. Specifically, the findings supported that emotional value asymmetrically influences customer satisfaction, whereas economic and relational value symmetrically and positively influence customer satisfaction. Study 3 (filed survey) demonstrated that emotional value through COCBs has a greater and symmetrical influence on satisfaction in hedonic rather than utilitarian service contexts. However, economic value through COCBs is negatively associated with satisfaction in hedonic contexts, and there is no significant difference in the impact of relational value on satisfaction between service contexts. This study furnishes empirical evidence for the associations among COCBs, value perceptions, and customer satisfaction, along with their dynamic relationship patterns across service contexts.     

The impact of retail buyer innovativeness on suppliers’ adaptive selling in Japanese buyer–supplier relationships

Abstract

We investigate the critical role of retail buyer innovativeness in Japanese buyer–supplier relationships and explore its link to suppliers’ adaptive selling, cooperative relationships, and retail competitiveness. Further, we examine how process conflict between merchandizing and store divisions moderates the relationship between retail buyer innovativeness and suppliers’ adaptive selling. This study employs a structural equation model using survey data from 246 heads of merchandizing divisions at Japanese retail companies. Our findings highlight the importance of both mitigating process conflict and facilitating suppliers’ adaptive selling in order to improve Japanese retailers’ competitiveness, especially when buyers are highly innovative.     

Foreign institutional investors and stock return comovement

We investigate whether foreign institutional investors facilitate firm-specific information flow in the global market. Specifically, using annual institutional ownership data from firms across 40 countries, we find that foreign institutional ownership is negatively associated with excess stock return comovement. Our results are more pronounced when foreign institutional investors originate from common-law countries and hold a large equity stake in invested firms; and when the invested firms are located in civil-law countries. Overall, the evidence suggests that foreign institutional investors from countries with strong investor protection play an important informational role in mitigating excess stock return comovement around the world.     

Exploring the impact of product service quality on buyer commitment and loyalty in B TO B relationships

Purpose: The purpose of this study is to understand and empirically test causal relationships among components of product service quality and commitment and buyer loyalty in business-to-business (B to B) relationships.

Methodology/approach: Data were collected through a web-based survey from 314 buyers of B to B manufacturers in Korea.

Findings: Product quality enhances all three types of commitment in B to B relationships, service quality is positively associated with affective commitment, and support quality has a significantly positive effect on affective and normative commitment. Also, the moderating effects of competitive intensity are significant. If competitive intensity is low in the buyer’s market, product quality and service quality play important roles in deriving buyer commitment; however, if competitive intensity is high, support quality is effective in maintaining long-term committed relationships with buyers.

Research implications: To fully consider product service quality in this study, we established support quality, product quality, and service quality as discrete components of product service quality.

Practical implications: Previous quality-related works have focused on products and services with little research about support activities, and the literature is lacking empirical analyses of support activities. However, this study elucidates the importance of operational and technical support activities in B to B relationships. Specifically, in a fiercely competitive market, a high-quality consumer support strategy is shown to be highly effective in maintaining long-term committed relationships with buyers.

Originality/value/contribution: We analyzed the relationships among components of product service quality and commitment and buyer loyalty in B to B transactions. Our detailed results will help firms develop context-specific quality management strategies at the product service level in order to strengthen customer loyalty.     

A comparison of different pay-per-bid auction formats

Pay-per-bid auctions are a popular new type of Internet auction that is unique because a fee is charged for each bid that is placed. This paper uses a theoretical model and three large empirical data sets with 44,614 ascending and 1,460 descending pay-per-bid auctions to compare the economic effects of different pay-per-bid auction formats, such as different price increments and ascending versus descending auctions. The theoretical model suggests revenue equivalence between different price increments and descending and ascending auctions. The empirical results, however, refute the theoretical predictions: ascending auctions with smaller price increments yield, on average, higher revenues per auction than ascending auctions with higher price increments, but their revenues vary much more strongly. On average, ascending auctions yield higher revenues per auction than descending auctions, but results differ strongly across product categories. Additionally, revenues per ascending auction also vary much more strongly.