Explaining the Familiarity-Liking Relationship: Mere Exposure,Information Availability,or Social Desirability?

A large and diverse body of marketing literature suggests that well-known brands enjoy several advantages compared to less familiar brands. Specifically, brands with higher levels of familiarity appear to achieve higher levels of liking or preference among both consumers and retailers. This familiarity-liking relationship has proven to be one of marketing's most robust and reproducible empirical generalizations. However, there remains a considerable amount of uncertainty as to the conditions under which this relationship arises. In this study, we identify, conceptualize, and empirically assess three alternative hypotheses of the familiarity-liking relationship: mere exposure, information availability, and social desirability. Our results suggest that social desirability is the most powerful of these three potential mechanisms underlying the familiarity-liking phenomenon.     

The influence of quality cues and typicality cues on restaurant purchase intention

Prior research on cue management has dominantly focused on cues consumers use to infer product quality. Only a few studies have dealt with cues that allow consumers to infer category typicality. Connecting these research streams we show how different cues affect both product quality and category typicality assessments, how these perceptions interact, and how they influence purchase intention. Results of this conjoint experiment among 113 restaurant patrons indicate that typicality cues can also serve as inferences for quality, and that cues influence purchase intentions via their effect on perceived typicality rather than on perceived quality. Once a consumer has determined the usage situation and his inherent consumption goals, he is much more inclined to search for the cues such as table setting that signal the subcategory that is expected to satisfy these goals, than finding cues such as guidebook rating that are diagnostic of product quality (only). After carefully addressing typicality cues which are instrumental in stressing points of parity, brand managers can use quality cues to show the product's points of difference in a category.     

Consumer Behavior in a Multichannel,Multimedia Retailing Environment

Over the past decade, multichannel, multimedia retailing environments have grown in variety, scope, and sophistication. However, research regarding the implications of this trend for consumer behavior is rather scarce. We seek to address this need by providing a comprehensive yet flexible approach for formulating promising consumer behavior-related research questions based in multichannel, multimedia retailing environments. This approach adopts a consumer-centric view of multichannel, multimedia retailing and identifies a number of important dimensions of this environment. We then illustrate how this approach could be applied via specific examples involving consumer memory, product assortment, and information acquisition. We conclude by considering the managerial implications of our proposed approach.     

Entry mode and equity level: A multilevel examination of foreign direct investment ownership structure

Over the last two decades, strategy researchers have sought to understand the ownership structure of firms' foreign direct investments (FDI) as reflected in entry mode and equity level. However, prior FDI research has ignored the interrelated nature of these key FDI decisions. In addition, prior research does not fully account for the fact that individual ownership structure decisions occur within the context of a firm's broader FDI portfolio, and thus reflect a wide and frequently unobserved range of parent firm and host nation effects. Our research seeks to address both of these limitations. Using a rich dataset of 4,459 subsidiaries established by 858 Japanese firms across 38 countries over a 9‐year period, we specify a conditional bivariate, cross‐classified multilevel model of FDI ownership structure. Our model enables the joint estimation of entry mode and equity level, accounts for the portfolio nature of FDI, and compares the relative predictive power of transaction cost‐ and experience‐based explanatory variables across both facets of ownership structure. Copyright © 2007 John Wiley & Sons, Ltd.     

When bad gets worse: the amplifying effect of materialism on traumatic stress and maladaptive consumption

Our research explores the amplifying effect of materialism on the experience of traumatic stress and maladaptive consumption via both an Israeli field study and a U.S. national survey. Our field study assesses the moderating impact of materialism upon both traumatic stress and maladaptive consumption among participants from an Israeli town under terrorist attack vs. participants from an Israeli town not exposed to hostilities. Our survey examines the possible underlying processes behind these effects among a nationally representative sample of Americans. The Israeli study reveals that, when faced with a mortal threat such as a terrorist attack, highly materialistic individuals report higher levels of post-traumatic stress, compulsive consumption, and impulsive buying than their less materialistic counterparts. Our U.S. study suggests that these effects are likely due to the fact that materialistic individuals exhibit lower levels of self-esteem, which reduces their ability to cope with traumatic events. Thus, our results indicate that, in addition to its well-documented harmful direct effect on psychological well-being, materialism also exerts an indirect negative effect by making bad events even worse.     

EQUIVALENT OPTION PRICE WITH SUPPLY UNCERTAINTY

This paper compares two ex ante measures of the benefits of a project with supply uncertainty: compensating option price, the willingness to pay for a project, and equivalent option price, the willingness to accept to forego a project. The paper shows that compensating option price does not generally rank three or more projects correctly, even when the projects only impose a change in a single good. Equivalent option price, like equivalent variation with certain outcomes, always ranks three or more projects correctly. This paper also presents a method to empirically estimate equivalent option price using estimates of the benefits of certain changes. This approach is practically important so that the same study results can be used to estimate equivalent option price even as new projects are developed or as changes occur in the scientific information regarding the probabilities of various project outcomes. An application of the empirical method estimates the benefits of a policy to improve air and water quality when there is uncertainty about the effectiveness of the policy.     

Risk externalities and the problem of wildfire risk

Homeowners living in the wildland–urban interface must decide whether or not to create a defensible space around their house in order to mitigate the risk of a wildfire destroying their home. Risk externalities complicate this decision; the risk that one homeowner faces depends on the risk mitigation decisions of neighboring homeowners. This paper models the problem as a game played between neighbors in a wildland–urban interface. The model explains why sub-optimal investment in defensible space is likely and provides insights into the likely effectiveness of programs designed to encourage households to increase their defensible space. Data from Boulder County, Colorado confirm that a household's defensible space decision depends on the defensible space outcomes at neighboring sites.     

Transaction costs,opportunism, and governance: Contextual considerations and future research opportunities

Transaction cost theory (TCT) is one of the most dominant theoretical perspectives in contemporary business-to-business (B2B) research. Our article provides a brief review of this theory and identifies six important contextual considerations for future research. These considerations center on the topics of opportunism and governance and are intended to help refine and extend TCT’s theoretical, methodological, and substantive scope. In addition to exploring these particular ideas, we also encourage B2B scholars to contemplate ways of enriching TCT to meet the challenges posed by today’s rapidly shifting economic landscape.