Examining the Third‐Person Effect of Baseline Omission in Numerical Comparison: The Role of Consumer Persuasion Knowledge

Marketers often use numerical comparisons in promotional claims to signal superior product offerings. A potentially misleading practice involves omitting the reference point deliberately in order to make the focal claim more appealing—a persuasion tactic referred to as “baseline omission” in the present research. In two experiments, this research demonstrates that consumers tend to perceive this tactic as more effective on others than on themselves. The self‐others difference is more salient among consumers with more persuasion knowledge. Consumers’ concerns about its effectiveness on themselves, rather than on others, better predict their supportiveness to regulate the use of baseline omission.     

The distinct influence of power distance perception and power distance values on customer satisfaction in response to loyalty programs

In today's fiercely competitive environment, firms are increasingly relying on loyalty programs to influence customers' repeat purchase behavior. However, little is known about how customers' cultural values shape their satisfaction in response to loyalty programs. Such knowledge is important because it allows marketers to identify cultural segments that may be more or less likely to respond favorably to loyalty programs, and hence increase the effectiveness of such programs. In the current research, we propose that power distance perception — defined as the extent to which people observe power disparities in society — positively influences satisfaction of customers who hold loyalty status, but negatively influences satisfaction of customers who do not hold loyalty status with a firm. In contrast, power distance values — defined as the extent to which people endorse power disparities in society — negatively influences satisfaction of customers who hold loyalty status, but positively influences satisfaction of customers who do not hold loyalty status with a firm. A quasi-field study and several lab experiments support these propositions, shed light on the underlying mechanisms, and rule out alternative explanations. Our findings also uncover several distinct tools that marketers could use to influence non-loyalty status and loyalty status customers' satisfaction with businesses.     

Less is more: A theory of minimalist luxury

We show theoretically that when high-quality, low-price counterfeits exist and are visibly indistinguishable from authentic products, the status-seeking wealthy may embrace a “less is more” purchasing strategy or what we refer to as the minimalist luxury strategy, to signal their status. These are the wealthy who have a high disutility of shopping for counterfeits. Specifically, in our model, only buyers know the authenticity of their own purchases. Because of this information asymmetry, these wealthy buyers may purposefully restrain from consuming luxury goods as a sacrifice of functional utility to stand out, a signaling strategy that the rest are not willing to mimic. Thus, “less” functional utility allows those status-seeking wealthy to enjoy “more” symbolic utility that the society bestows on their perceived status. This minimalist luxury strategy is in sharp contrast to Veblen's conspicuous consumption strategy, as well as to the maximalist luxury strategy proposed by Liu et al. We derive this minimalist luxury equilibrium, discuss how signaling in our context can differ from that of Veblen and Liu et al., and explore its managerial implications for the luxury goods industry.     

‘My Life Is Like a Novel’: Embodied Geographies of Security in Southeast Turkey

Scholarship at the development-security nexus has called for greater attention to space to better understand grounded encounters with security and insecurity. Through an examination of embodied engagements with space, this paper details the way migrant women in Southeast Turkey experience security and insecurity in their day-to-day lives in regards to gendered violence. Against the backdrop of state investment in gendered development as a mechanism of conflict mitigation, the reach and mobility of women in and across new spaces in the city has grown. At the juncture between these spaces – the classroom, courtroom, and home – lie conflicting narratives about nation, community, and family that pose implications for the physical well-being of women. To this end, interviews with migrant women and development administrators and teachers suggest that (human) security be understood as embodied and relational, experienced differentially across time and space.     

Location,Marketing, and the Financial Flexibility of Nonprofit Performing Arts Organizations in Second Tier Cities

This article examines the effect of location relative to other marketing factors on the financial flexibility of nonprofit performing arts organizations (PAOs). While product development and promotional and pricing strategies are important marketing factors, locational advantages have become an important strategic asset for the arts industry. Yet very little research has been done on the locational dimensions of this industry. Based on a survey of PAOs in six second tier U.S. statistical metropolitan areas (SMAs), that is, Buffalo, Pittsburgh, Cleveland, Columbus, Cincinnati, and Milwaukee, this article investigates the extent to which location and other marketing mix factors influence the financial flexibility, and thereby success of PAOs. All six SMAs have a population range of 1 million to 2.5 million. The statistical analysis suggests that location and product selection are particularly significant marketing mix factors that contribute positively to financial flexibility, and therefore organizational success of the PAOs in the cities.     

The impact of the new protectionist stance in US trade policy on selected German companies in Mexico

ABSTRACT

Previous studies on the impact of the new protectionist stance of the United States have focused mainly on the imposition of the controversial border tax. This research advances the understanding of the possible impacts of the tightening of the rules of origin and the imposition of the most-favored nation tariffs on manufacturing companies. The findings show a negative impact from the protectionist measures on businesses by increasing costs per unit and decreasing the gross margin. The results suggest that those additional costs could be passed on to the final buyers, raising the price level by more than previously assumed.     

Pacific trade and regionalization, 1965–1990

The configuration of the Pacific continues to be vague despite much discussion of regionalization of the Pacific countries. This article discusses the factors contributing to regionalization in the Pacific and examines Pacific trade over the 1965–1990 period in order to define the geographic structure of the region. Our results indicate that Pacific trade is characterized by a hierarchy with dominant vertical linkages centered on two main market cores: Japan and the United States. The presence of several subregional cores reveals the Pacific to be a multiple node trading region rather than a unified region. Implications of our findings for emerging global trade patterns are discussed.     

A comparison of determinants of consumer satisfaction/dissatisfaction with the performance of apparel products between South Korea and the United States

The purpose of the present study was to identify the determinants of consumer satisfaction and dissatisfaction (CS/D) with the performance of apparel products at the purchase and product-consumption stages for Korean consumers, and to examine if these determinants were similar to those for US consumers. Results showed that at the purchase stage, the three variables, found significantly related to CS/D at purchase for US consumers, were also significant for Korean consumers. These three at-purchase variables were: perceived at-purchase performance, performance expectation and experience-based norm disconfirmation (i.e. the discrepancy between consumers’ experience-based norm and their perception of product performance at purchase). When the variables related to CS/D at the product-consumption stage were examined, both similarities and differences were found between Korean and US consumers. For both countries, perceived consumption performance and satisfaction at purchase were significantly related to CS/D at the product-consumption stage. Differences were found in the effects of expectancy disconfirmation and performance expectation on CS/D at the product-consumption stage. Expectancy disconfirmation is the discrepancy between consumers' performance expectation and their perception of product performance after consumption. Expectancy expectation was found to be a significant determinant of CS/D for US consumers, but was not a determinant for Korean consumers. Performance expectation, which was found not to be a significant determinant of CS/D for US consumers, was a significant determinant for Korean consumers.