Increasing consumer well-being: risk as potential driver of happiness

This article investigates the relation between risk and individual well-being. We propose a theoretical model of happiness that makes a distinction between ex ante evaluations of happiness and ex post assessments. The main assumptions of the model are tested through three studies based on anchoring vignettes. We show that, even if, ex ante, consumers fear high risk and do not associate it to a high level of happiness, their ex post evaluation of well-being is generally higher when identical consequences result from a high-risk situation than from a low-risk situation. Control over risk-taking reinforces the gap between ex ante and ex post measures of happiness. Thus, our article provides empirical evidence about a positive relation between risk and individual well-being, suggesting that risky experiences have the potential to increase consumer well-being.     

Branding Decisions for Retailers’ Private Labels

Umbrella branding (UB) strategies for manufacturers’ products have received considerable attention in the literature. Not much is known about this strategy for private labels. Using a game-theoretic approach, we reassess the benefits of introducing a private label in a distinct category, and provide favorable conditions for the retailer to implement umbrella or individual branding for his private labels. We find that (1) UB leads to lower wholesale and retail prices for both national brands; (2) national brands’ manufacturers prefer individual branding over UB for private labels; and (3) the profitability of UB is not always guaranteed for the retailer.     

Implementing online store for national brand competing against private label

We propose a game-theoretic model in three contexts. First, only the national brand (NB) is offered through a traditional retailer. Second, the private label (PL) is introduced by the traditional retailer. Finally, the NB's manufacturer opens an online store. We reassess the benefit of introducing the PL and investigate the profitability of implementing an online store. We found that the retailer is not always enjoying the PL's introduction. Also, the manufacturer could benefit from that strategy. The quality differential between the NB and the PL, the PL's potential and the cross-price competitions are all important factors to determine the result of PL's introduction. Hence, the manufacturer opens the online store either to counter the threat of such strategy or to expand his market.     

Can a weak retailer benefit from manufacturer-dominant retailer alliance?

The paper provides a framework to help the weak retailer delineate the circumstances that allow him to benefit from an alliance between the dominant retailer and the common manufacturer. We use a game-theoretic model to determine the optimal pricing and service strategies when channel members act independently then when the dominant retailer forms an alliance with the manufacturer. We find that: (i) the alliance is formed only if the market is not strongly competitive in terms of price, (ii) differentiation in terms of price and service is beneficial to all channel members under alliance, (iii) an interaction between spillover and service effects plays a crucial role to make the weak retailer gain or lose from the alliance.     

An investigation of consumers' self-control mechanisms when confronted with repeated purchase temptations: Evidence from online private sales

This article explores the control mechanisms that consumers use when confronted with repeated temptations in an online private sales context. Do consumers feel the need to control themselves when they are aware of the risk of being exposed to purchase temptations? Are they able to do so? Using qualitative research methods, this study differentiates four segments of consumers, according to their reactions to repeated purchase temptations: myopic, self-regulated, hyperopic, and dispassionate. It also isolates the mechanism that consumers use to resist temptations. Previous literature has focused on control mechanisms implemented in isolated temptation situations; this article extends that approach by examining online private sales, in which setting consumers receive frequent solicitations. Thus, it addresses in detail how control evolves when consumers confront repeated temptations.     

Consumer purchase intentions for green products: Mediating role of WTP and moderating effects of framing

This research examines the role of consumers' willingness to pay (WTP) in the purchase decision process for a green product and investigates the moderating effects of two types of framing: price and ecological message claim. Using an experimental design, 262 participants were assigned randomly to one of nine conditions (3 price × 3 ecological message frames). The results reveal a mediating effect of WTP on the relationship between consumers' perceptions and purchase intentions. Furthermore, a price framed in aggregate terms reinforces the positive effect of WTP on purchase intention. The mere presence of an ecological message claim also enhances the relation between WTP and purchase intentions. This research proposes ways marketers can promote their green products. The results encourage the use of ecological messages and frames of prices in an aggregate form to enhance consumers' purchase intentions through WTP.