On the Credibility Determinants of a Quality Label: a Quasi-Natural Experiment Using the Example of <Emphasis Type="Italic">Stiftung Warentest</Emphasis>

In 2013, Stiftung Warentest, which is one of the most important consumer organizations in Germany, tested hazelnut chocolate for their leading magazine called test. The hazelnut chocolate of Ritter Sport, which is a high-quality producer of chocolate in Germany, failed the test and received the grade “unsatisfactory.” Stiftung Warentest accused Ritter Sport of labelling an artificial flavouring as a natural flavouring. Ritter Sport rejected the accusation, went to court, and won the trial. Stiftung Warentest had to withdraw the issue in question of test magazine. The affair received broad media coverage from December 2013 to September 2014. Using the case Ritter Sport versus Stiftung Warentest, it is analysed whether negative headlines really undermine the credibility of a quality label by examining Stiftung Warentest and their quality label called test. In addition, it is examined what can be done to restore or, more generally, increase the credibility of a quality label. Based on a quasi-natural experiment, it is found that the negative headlines regarding Stiftung Warentest have undermined the credibility of the test label. It is also found that the credibility of the test label can be increased by providing reference values to the tests, strengthening the independence of Stiftung Warentest, and using laboratory methods for the tests. For the most part, the same holds true for any quality label. High-quality producers, quality-conscious consumers, and the awarding organization of the quality label can benefit from an increased credibility of a quality label.     

Reduce product counterfeiting: An integrated approach

There is substantial interconnection between the reduction of product counterfeiting and quality management. This article seeks to demonstrate how integrating anti-counterfeiting initiatives into quality management strategies can reduce risk in the supply chain. We explore issues pertaining to product counterfeiting, the practical application and constraints of anti-counterfeiting initiatives within the supply chain, and the intersection of anti-counterfeiting initiatives with quality management programs. Gaps in current management strategies to address these issues are identified, and a potential remedy to address these deficiencies is proposed. Practical suggestions regarding the application of quality principles to offset counterfeiting should reduce risk in the supply chain.     

Feel Good,Do-Good!? On Consistency and Compensation in Moral Self-Regulation

Studies in the behavioral ethics and moral psychology traditions have begun to reveal the important roles of self-related processes that underlie moral behavior. Unfortunately, this research has resulted in two distinct and opposing streams of findings that are usually referred to as moral consistency and moral compensation. Moral consistency research shows that a salient self-concept as a moral person promotes moral behavior. Conversely, moral compensation research reveals that a salient self-concept as an immoral person promotes moral behavior. This study’s aim was to integrate these two literatures. We argued that compensation forms a reactive, “damage control” response in social situations, whereas consistency derives from a more proactive approach to reputation building and maintenance. Two experiments supported this prediction in showing that cognitive depletion (i.e., resulting in a reactive approach) results in moral compensation whereas consistency results when cognitive resources are available (i.e., resulting in a proactive approach). Experiment 2 revealed that these processes originate from reputational (rather than moral) considerations by showing that they emerge only under conditions of accountability. It can thus be concluded that reputational concerns are important for both moral compensation and moral consistency processes, and that which of these two prevails depends on the perspective that people take: a reactive or a proactive approach.     

Improving the Effect of Guarantees: The Role of a Retailer's Reputation

This research examines the interaction of two cues, retailer reputation and guarantees on evaluations. Extending Mandler's (1982) incongruity framework, we illustrate across three studies how moderately incongruent signals can be combined to enhance evaluations. Unique to our application of moderate incongruity, however, is the fact that guarantee cues can be incongruent with the retailer's reputation, in terms of domain (e.g., price matching guarantee (PMG) offered by provider whose reputation is based on service, not pricing) or valence (e.g., PMG offered by retailer known for carrying expensive merchandize). This dual perspective on the source of incongruity (domain or valence) is important and highlights when guarantees enhance evaluations.     

The Contingent Effects of Semantic Price Cues

This research endeavors to understand the contingent effects of semantic price cues while taking into consideration several important contextual factors. These factors include where the customer encounters the semantic cue (in-store, at-home, online), whether the consumers’ shopping goal is hedonic or utilitarian in nature, the impact of shopping alone or with a companion, as well as the consumer's motivation to process the product information. Findings indicate that a within-store cue (compared to a between store cue) enhances evaluations when the shopping in a store with a utilitarian goal, when shopping alone, and when their motivation to process is low. A meta-analysis of the results demonstrates the robustness of the differential impacts of these semantic cues.     

How much to give? — The effect of donation size on tactical and strategic success in cause-related marketing

In cause-related marketing (CM), companies promise a donation to a cause every time a consumer makes a purchase. We analyze the impact of the size of this donation on brand choice (tactical success) and brand image (strategic success). Our results reveal different effects of donation size on these success measures. For brand choice, the effect of donation size is moderated by a financial trade-off for consumers, whereas the effect on brand image is moderated by donation framing. Specifically, we show that donation size has a positive effect on brand choice if consumers face no financial trade-off; i.e., if they do not have to choose between triggering a donation or saving money. The effect is negative if a trade-off exists such that higher donations come at higher costs. Brand image is enhanced by larger donations if the framing is nonmonetary (e.g., the campaign promises the provision of vaccinations), whereas donation size has a negative effect if donation framing is monetary (e.g., the campaign states the Euro amount). If campaigns use a combination of both frames, the effect of donation size on brand image has an inverted U shape. Our results suggest that CM enhances tactical and strategic success only if firms select the right donation size, taking into account donation framing and financial trade-offs.     

Regulating Insider Trading In Betting Markets

Although trading in securities in conventional financial markets on the basis of inside information is restricted by law, the rules against such trading in betting markets are rather more ambiguous. It is argued in this paper that, since insider trading in betting markets imposes a cost on the great majority of bettors, tighter strictures against such trading would benefit all but the insiders. This case is supported by the use of empirical evidence which shows that betting markets which are characterized by tighter controls against insider activity are also characterized by a significantly lower incidence of such activity.     

The UK Research Assessment Exercise (RAE 2008) and retail research output

The 2008 Research Assessment Exercise in the United Kingdom provides a further opportunity to consider changing trends and patterns in retail research, following on a previous commentary in this journal. This comparison shows that pressures continue to mount and are impacting retail knowledge creation and dissemination practices, not least in terms of those engaged in retail research, the topics and approaches utilised, the publication tactics and strategies and thus the standing of retail research in the United Kingdom and its reputation internationally.     

Global Reporting Initiative and social impact in managing corporate responsibility: a case study of three multinationals in the forest industry

We examine recent evolution in corporate responsibility in the forest industry, an important natural‐resource‐based industry which is under rapid internationalisation and structural change under challenging financial pressures. We address two recent trends in corporate communication: corporate disclosure, that is the adoption of consistent external reporting standards [namely the Global Reporting Initiative (GRI) ], and the growing awareness of engagement with and impact on local communities through philanthropy, generation of prosperity, communication and the social impact of core activities. This study uses a comparative qualitative case approach to forest industry multinational enterprises (MNEs) based on a combination of secondary (reporting, company newsletters and other documentation) and interview data. Three large‐scale multinational forest industry firms, all pursuing different strategies in terms of internationalisation and geographical and product diversification, were chosen for the study: Stora Enso, SCA and Sappi Ltd. Our results show that the overall quality of sustainability reporting has improved in these companies from 2005 to 2009 with the adoption of GRI. However, based on our fourfold categorisation of social impact, the core social impact indicator in GRI (SO1) has been interpreted very differently in these MNEs, and the adoption of GRI has not actually much improved the comparability of the reports or transparency of practices.