Do I have to go shopping again? A theory of choice with movement costs

In this model, the standard theory of the one-person household is extended into space and time. The theory is extended into space by imposition of a real trip cost on the act of purchase, separate from the money price of commodities. It is extended into time by imposition of a real cost of storage (represented by “deterioration”) on the stocks of goods held in the household between shopping trips. The necessity for storage permits the theory to include an endogenous choice of capacity to store as well as choices among consumption, leisure, and shopping trip frequency. By use of duality theory, the comparative static effects of price, wage, and trip costs are examined. Production and transformation within the household are integrated into the model and shown to be covered by the dual approach.     

“Made in Country” Versus “Made in County”: Effects of Local Manufacturing Origins on Price Perceptions

Consumers often use an array of extrinsic and intrinsic attributes to infer product quality and to assess monetary sacrifice. However, literature reveals little about how and if consumers would use information on product's manufacturing origins differently if it was national rather than local. In two studies, the role played by uncertainty in judgments of the quality of locally made products is examined. It is shown that when consumers are motivated to process information and quality ratings are high, local identity effects are elicited and monetary sacrifice perceptions are diminished. These results suggest that favorable quality ratings need to be prominently featured when promoting locally made products, and that locally made products are preferred to national ones only when quality is not a concern.     

The IB/ IHRM interface: Exploring the potential of intersectional theorizing

Although the core concepts underlying IB and IHRM provide a common lexicon and epistemology, this commonality is often more implicit than explicit. We highlight not only the common ground but also the lack of critical dialogue between the two fields. This paper asks: What can each field learn from the other? What do scholars from IB learn from IHRM and vice versa? We identify a possible agenda and concerns regarding theory building as a basis for dialogue between the two fields.     

Red price? Red flag! Eye-tracking reveals how one red price can hurt a retailer

Retailers present prices in red color to signal savings. Past research has shown that presenting all prices in red increases perceived savings from the store. However, in practice, retailers often present just one price in red in promotion materials with multiple prices. Will consumers perceive higher savings from the store even if only one price is presented in red? This research examines this prevalent retail practice using a theoretical lens. The theoretical framework predicts that two unique learned associations with red color (red: Savings and red: Stop) play a key role in shaping consumers' perception of savings from stores that highlight only one price in red. This research proposes and empirically demonstrates that consumers perceive lower savings from stores that present only one price in red. The theoretical framework is validated using a multi-method approach that combines the strengths of behavioral and physiological (eye-tracking) methods. Findings from this research suggest that presenting only one price in red lowers perceived savings from the store, which may hurt sales.     

On melodic contour and number preferences: The effects of musical melody on the processing of numerical information

In this paper, we utilize three exploratory studies to examine the effects of musical melody on accompanying numerical information used in an advertisement. We find that when melody (i.e., in the form of melodic “contour”) corresponds to—or is congruent with—the numerical information in an ad, consumers will have greater recall and more favorable predispositions toward that information. These favorable predispositions, in turn, may impact such downstream variables such as purchase intentions. We posit that “contour” effects occur because individuals process the scalar steps between musical notes in a manner similar to the way they process the differences between numbers in common numerical stimuli such as customer service numbers, prices, purchase amounts, and so forth. This expectation implies that there is cognitive consistency in terms of the spatial representation of number and the spatial depiction of pitch. Thus the latter may impact the former by facilitating ease of processing, thereby leading to a number familiarity effect.     

Globalization, new ecologies, new zoologies, and the purported death of the eclectic paradigm

This paper provides a commentary to John Mathews' article in issue 23(1) of the Asia Pacific Journal of Management. I discuss how globalisation is fundamentally altering the milieu within which international business is conducted, and this new ‘ecology’ may indeed require scholars to consider a new ‘zoology’ of firms in the future. However, his specific suggestions are based on sparse evidence, and his alternative to the eclectic paradigm is founded on a misunderstanding of some fundamental concepts.     

Effects of service setting and other consumers’ age on the service perceptions of young consumers

Services are often delivered in settings where many consumers are present at the same time, yet the issue of how other consumers affect service perceptions has received little attention. We study young adults’ response to fellow consumers who are middle-aged and old, testing predictions based on recent research suggesting that stereotypes are context dependent, and that stereotypes of older adults vary depending on the person attributes considered. Varying the age of the other consumers and service settings we find that the presence of older consumers affects young adults’ attitude to the service as well as their patronage intentions. Young consumers’ attitude to the service deteriorated in the presence of older consumers for services requiring physical attributes, but this was less so for services requiring personal expressive attributes.     

Choosing Between Internal and Non-internal R&D Activities: Some Technological and Economic Factors

This paper evaluates some of the technological and economic factors that underlie the choice between in-house R&D, R&D alliances and outsourcing. We recount the reasons for the growth in non-internal activities, and explain why these are not as prevalent for R&D as other value-adding activities, and highlight that outsourcing is most often undertaken where multiple, substitutable sources are available. We then develop two frameworks. First, a static framework is developed, which evaluates the choice of mode based on a firm's distribution of competencies, and their strategic importance. Second, a dynamic framework is developed that demonstrates how the static framework differs depending on whether the firm is engaged in pre-paradigmatic, paradigmatic or post-paradigmatic sectors. We also consider the effect of new technologies being introduced to a firm's portfolio of competencies     

Math anxiety and its effects on consumers’ preference for price promotion formats

This research examines whether preference for certain price presentations observed in past research could be explained by either consumers’ math anxiety or their math abilities. Previous research suggests that math anxiety not only increases tendencies to make computational errors but also influences cognitive abilities to make numerical judgments. In four studies we document an effect of math anxiety whereby price promotions, whose net prices are simply derived, like those in a dollars-off format, were preferred over a competing percentage-off format. We explain this effect in terms of consumers’ inability to expend cognitive resources due to their math anxiety rather than their math ability. We also identify a boundary condition with such effects of math anxiety occurring when price information is presented in a computationally complex manner and when consumers are making important product judgments.     

The effects of perceived scarcity on consumers’ processing of price information

This research examines how perceived scarcity influences consumers’ processing of price information. To explain the effects of scarcity, a conceptual framework which incorporates both the motivational and the interference effects of scarcity on information processing is developed. The results from two studies show that under scarcity, consumers’ perceptions of quality and monetary sacrifice exhibit different response patterns, depending on the relative price level and consumers’ motivation to process information. We provide insights into how these perceptions of quality and sacrifice are integrated to form perceptions of value. Additional analyses of thought measures provided further understanding of the underlying processes that influenced the evaluation of price information under scarcity.