Flagship stores for FMCG national brands: Do they improve brand cognitions and create favorable consumer reactions?

National brands have begun to engage in direct distribution, displaying the brand in its own biotope. Such operation of flagship stores is one means of forward verticalization. From samples of visitors to two flagship stores of fast-moving consumer goods brands, this study analyzes the effects of the flagship store visit on brand experience, brand equity, brand attachment, and loyalty. In the low-involvement FMCG context, flagship stores are useful for reinforcing brand experience. However, flagship store-fueled brand experience does not necessarily lead to favorable consumer reactions; its effect on future purchases is mediated by both brand equity and brand attachment.     

How second-generation consumers choose where to shop: A cross-cultural semiotic analysis

Using ethnographic interviews and Greimasian semiotics, this study explores second-generation ethnic consumers’ perceptions of physical shopping environments from a cultural identity perspective. It reveals how second-generation ethnic consumers make decisions about where to shop for cosmetics. The key results reveal the identity dimensions of shopping behaviour that retail stores wanting to target second-generation ethnic consumers must take into consideration.     

Assessing the welfare effects of congestion charges in a real world setting

The standard textbook analysis shows that drivers as a group lose from congestion charges. However, it omits taste heterogeneity, shorter travel times far out in the larger network arising from less blocking back of upstream links and the possibility for drivers to reschedule. Taking account of these factors, using a dynamic scheduling model with heterogeneous users we find that all three add significantly to the benefit of the Stockholm congestion charges and that drivers as a group benefit from these charges even without recycling of revenues. This paper also provides an update on the consumer benefits of the Stockholm charges.     

Consumer response to food labels in an emerging market: the case of Romania

This study investigates consumer response to food labels in an emerging market. More specifically, it measures the levels of awareness, objective and perceived understanding, perceived usefulness and perceived trustworthiness of the most prominent food labels found in the Romanian market. An online survey was conducted with a convenience sample of 428 respondents (45.6% males of an average age of 30.6 years). Results revealed that for most respondents, awareness levels towards food labels are generally low, except for the Guideline Daily Amount (GDA) and the organic food labels. Objective understanding towards food labels was relatively high, especially towards those food labels that included a clear text element. Perceived understanding, perceived usefulness and perceived trustworthiness were found to be consistently high with regard to the GDA and the national organic food labels, while the European organic label scored lower. Finally, response to food labels was found to differ between aware and unaware respondents.     

A comparison of online and offline consumer behaviour: An empirical study on a cinema shopping context

The main objective of this study is to analyse online vs. offline differences in consumer behaviour. To this end, through a proposal applied to cinemas in shopping centres, this study considers values and lifestyles as major factors that influence behaviours and intentions. The partial least squares (PLS) approach is used to evaluate the model. A multi-group analysis is conducted to compare consumers who buy tickets online with those who do so at a box office. We consider 391 valid cases. The results obtained show a link between the use of technology and its effects on behaviour. The relationships between values and behaviour as well as between behaviour and future intent are stronger among online consumers than the effects of lifestyles on behaviour. We consider relevant theoretical and empirical perspectives and offer critical recommendations of use to shopping centre managers, movie theatres, and intermediaries of this sector.     

Unfairness in consumer services: Outcomes of differential treatment of new and existing clients

In a consumption context, there is a growing interest in understanding unfair behaviour of firms towards customers. Our research focuses on unfairness perceptions driven by differential treatment, particularly through price discrimination, i.e. the practice of charging differential prices to different customers. Our purpose is to investigate the consequences of these practices for unfairness perceptions, satisfaction, trust and patronage, showing a dual perspective: the perceptions of new vs existing clients when they face the advantaged or disadvantaged conditions. A survey-based experimental design approach was used. We conclude that unfairness perception is stronger for existing than for new clients, prompting negative attitudinal and behavioural consequences when the former are exposed to disadvantaged conditions in relation to the latter. Our study aims to provide marketers with a perspective on the pitfalls related to differential treatment between present and prospective clients, with implications in terms of design and implementation of customer management strategies.     

Third-party remanufacturing mode selection: Outsourcing or authorization?

Many original equipment manufacturers (OEMs) allow third-party remanufacturers (3PRs) to perform remanufacturing operations of branded or patented products – through either outsourcing or authorization. This study compares these two modes by modeling the game between the OEM and the 3PR on equilibrium quantities, prices, and profits. The results suggest that when consumers perceive the remanufactured products with a low value, the 3PR prefers the authorization approach; otherwise the 3PR prefers the outsourcing approach. However, in both scenarios, the OEM obtains higher profit through outsourcing than through authorization. Our further analysis compares two modes’ impacts on consumer surplus, social welfare, and environment.