scholarly journals Whose pay should be cut in economic crises? Consumers prefer firms that prioritize paying employees over CEOs

2021 ◽  
pp. 1-18
Author(s):  
Serena F. Hagerty ◽  
Bhavya Mohan ◽  
Michael I. Norton
Keyword(s):  
Consumer Behavior ◽  
Economic Crises ◽  
Executive Pay ◽  
Incentive Compatible ◽  
Consumer Reactions ◽  
Ceo Pay ◽  
Pay Cuts ◽  
The Impact

Abstract Four experiments examine the impact of a firm deciding to no longer pay salaries for executives versus employees on consumer behavior, particularly in the context of the COVID-19 pandemic. Study 1 explores the effect of announcing either pay cessations or continued pay for either CEO or employees, and shows that firms’ commitment to maintaining employee pay leads to the most positive consumer reactions. Study 2 examines the effects of simultaneously announcing employee and CEO pay cessations: consumers respond most positively to firms prioritizing employee pay, regardless of their strategy for CEO pay. Moreover, these positive perceptions are mediated by perceptions of financial pain to employees, more than perceptions of CEO-to-worker pay ratio fairness. Study 3, using an incentive-compatible design, shows that firms’ commitment to paying employees their full wages matters more to consumers than cuts to executive pay, even when those executive pay cuts lead to a lower CEO-to-worker pay ratio. Study 4 tests our account in a non-COVID-19 context, and shows that consumers continue to react favorably to firms that maintain employee pay, but when loss is less salient, consumers prioritize cutting CEO pay and lowering the CEO-to-worker pay ratio. We discuss the implications of our results for firms and policymakers during economic crises.

scholarly journals IMPACT OF COVID-19 ON CONSUMER BEHAVIOUR

2021 ◽  
Vol 33 (2) ◽  
pp. 86-96
Author(s):  
Charu Bisaria
Keyword(s):  
Information Technology ◽  
Supply Chain ◽  
Consumer Behavior ◽  
Dairy Products ◽  
Job Loss ◽  
Consumer Behaviour ◽  
Lower Income ◽  
Supply Chain Disruption ◽  
Pay Cuts ◽  
The Impact

A deadly virus has forced entire mankind to be confined to their homes. While many businesses were permanently shut, most others are still trying to sustain this less profit-generating period. Numerous workers are facing pay-cuts or job loss. This theoretically implies a major impact on the economies of countries with purchasing power of customers reduced due to lower income and supply chain disruption due to strict curbs. However, industries based on Information Technology, e-commerce, dairy products etc, thrived and continued to meet consumers’ demands. This particular study aims to analyze the impact of COVID-19 on consumer behavior. The impact shall be studied with respect to various parameters such as gender, age, income etc of consumers.

Pengaruh Lintas Budaya Pada Pemasaran Internasional Dengan Pendekatan Perilaku Konsumen

2017 ◽  
Vol 1 (2) ◽  
pp. 168-176
Author(s):  
Endy Gunanto ◽  
Yenni Kurnia Gusti
Keyword(s):  
Consumer Behavior ◽  
Marketing Strategy ◽  
Consumer Culture ◽  
International Organization ◽  
Future Research ◽  
Special Issue ◽  
Cross Culture ◽  
Several Variables ◽  
Cultural Orientations ◽  
The Impact

In this article we present a conceptual of the effect of cross culture on consumer behavior incorporating the impact of globalization. This conceptual idea shows that culture inûuences various domains of consumer behavior directly as well as through international organization to implement marketing strategy. The conceptual identify several factors such as norm and value in the community, several variables and also depicts the impact of other environmental factors and marketing strategy elements on consumer behavior. We also identify categories of consumer culture orientation resulting from globalization. Highlights of each of the several other articles included in this special issue in Asia region. We conclude with the contributions of the articles in terms of the consumer cultural orientations and identify directions for future research.

Navigating the New Retail Landscape

2020 ◽  
Author(s):  
Alan Treadgold ◽  
Jonathan Reynolds
Keyword(s):  
Case Studies ◽  
Business Models ◽  
Retail Industry ◽  
Drivers Of Change ◽  
Economic Crises ◽  
Global Pandemic ◽  
Personal Leadership ◽  
Practical Guidance ◽  
The Impact ◽  
Rapid Emergence

The retail industry globally is in an era of profound, perhaps unprecedented, change, change which has been further accelerated for many by the impact of the COVID-19 global pandemic and its attendant health and economic crises. This book is intended to serve as a wide-ranging, robust, practical guide to leaders of enterprises tasked with understanding and delivering success in the new landscape of retailing. Part 1 describes the major directions and drivers of change that define the new global landscape of retailing. Accelerating changes in technology, the rise to prominence globally of internet enabled shoppers and the rapid emergence of entirely new retail enterprises and business models are combining to re-shape the very fundamentals of the retail industry. The new landscape of retailing is unforgiving: success can be achieved more quickly than ever before but failure is equally rapid. Opportunities in the new landscape of retailing are profound, but so too are the challenges. Part 2 discusses the structures, skills and capabilities that retail enterprises will need to be successful in this new landscape and the skills and capabilities required of the leaders of retail enterprises. More than 25 detailed case studies of innovative, successful enterprises internationally and more than one hundred smaller examples, all updated and many new since the first edition, are used to illustrate the themes discussed. Frameworks are presented to provide practical guidance for enterprise leaders to understand and contextualize the nature of change re-shaping retail landscapes globally. Clear guidance is given of the capabilities, skills and perspectives needed at both an enterprise and personal leadership level to deliver success in the new landscape of retailing.

scholarly journals Advertising Media Impact in Consumer Buying Behavior

2019 ◽  
Vol 8 ◽  
pp. 54-56
Author(s):  
Ashmita Dahal Chhetri
Keyword(s):  
Consumer Behavior ◽  
Young Male ◽  
Electronic Media ◽  
Buying Behavior ◽  
Media Impact ◽  
High Degree ◽  
The Impact ◽  
Buying Behaviors ◽  
The Relationship ◽  
Better Than

Advertisements have been used for many years to influence the buying behaviors of the consumers. Advertisements are helpful in creating the awareness and perception among the customers of a product. This particular research was conducted on the 100 young male and female who use different brands of product to check the influence of advertisement on their buying behavior while creating the awareness and building the perceptions. Correlation, regression and other statistical tools were used to identify the relationship between these variables. The results revealed that the relationship between media and consumer behavior is positive. The adve1tising impact on sales and there is positive and high degree relationship between advertising and consumer behavior. The impact on advertising of a product of electronic media is better than non-electronic media.

The Impact of Company Stakeholders on Executive Pay

2013 ◽  
Vol 45 (3) ◽  
pp. 136-144
Author(s):  
Bruce R. Ellig
Keyword(s):  
Executive Pay ◽  
The Impact

The Impact of Crowding on Calorie Consumption

2017 ◽  
Vol 44 (5) ◽  
pp. 1123-1140 ◽  
Author(s):  
Stefan J Hock ◽  
Rajesh Bagchi
Keyword(s):  
Consumer Behavior ◽  
Food Item ◽  
Affective Processing ◽  
Environmental Cues ◽  
Calorie Consumption ◽  
Managerial Implications ◽  
The Impact ◽  
Specific Reason ◽  
Human Crowding ◽  
Rule Out

Abstract Consumer behavior is often influenced by subtle environmental cues, such as temperature, color, lighting, scent, or sound. We explore the effects of a not-so-subtle cue—human crowding—on calorie consumption. Although crowding is an omnipresent factor, it has received little attention in the marketing literature. We present six studies showing that crowding increases calorie consumption. These effects occur because crowding increases distraction, which hampers cognitive thinking and evokes more affective processing. When consumers process information affectively, they consume more calories. We show the specific reason for the increase in calories. When given a choice between several different options, people select and eat higher-calorie items, but when presented with only one option, people eat more of the same food item. We document this process, rule out alternative explanations, and discuss theoretical and managerial implications.

scholarly journals Does It Pay to Be Real? Understanding Authenticity in TV Advertising

2018 ◽  
Vol 83 (1) ◽  
pp. 24-50 ◽  
Author(s):  
Maren Becker ◽  
Nico Wiegand ◽  
Werner J. Reinartz
Keyword(s):  
Consumer Behavior ◽  
Essential Element ◽  
Purchase Decisions ◽  
Four Dimensions ◽  
Advertising Context ◽  
Hedonic Products ◽  
Hedonic And Utilitarian Products ◽  
The Impact ◽  
Common Understanding ◽  
Positive Effect

Marketing managers and creatives alike believe that authenticity is an essential element for effective advertising. However, no common understanding of authenticity in advertising exists, and empirical knowledge about its impact on consumer behavior is limited. In this study, the authors use a comprehensive literature review and qualitative studies to identify four dimensions of authenticity in an advertising context. By examining 323 television ads across 67 brands and four years, they investigate these dimensions’ effects on the sales performance of advertised products. Because the impact of authenticity may depend on brand or product characteristics, the authors also analyze how these effects vary with brand size or across hedonic and utilitarian products. The results suggest that authenticity influences consumer behavior in a more nuanced manner than previously recognized. For instance, whereas an ad congruent with the brand’s essence has a positive effect on sales in most cases, an overly honest advertising message can actually hurt performance; the latter is true especially for hedonic products, for which consumers rely more on subjective information when making purchase decisions.

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