When do consumers value ethical attributes? The role of perceived quality in gift-giving

2020 ◽  
Vol 55 (1) ◽  
pp. 315-335
Author(s):  
Gopal Das ◽  
John Peloza ◽  
Geetika Varshneya ◽  
Todd Green

Purpose Although research demonstrates the importance of ethical product attributes for consumers, a prior study has not examined the role of consumption target (i.e. self-purchases vs gift-giving) on consumers’ preference for products with ethical attributes. Notably, consumers’ preference for quality can differ between self-purchases and gifts, and the presence of ethical attributes can impact product quality perceptions. The purpose of this paper is to examine how the presence of ethical attributes alters decision-making in a gift-giving context using perceptions of product quality as an explanatory variable for these differences. Design/methodology/approach One field study and two controlled experiments test the proposed hypotheses. The experiments were conducted across different product categories and samples. Findings Results showed that the presence of an ethical attribute leads to higher purchase intentions for products in a gift-giving context compared to self-purchase. Perceived quality mediates this effect. Further process evidence through moderation, including resource synergy beliefs, support the findings. This paper discusses the theoretical, managerial and societal implications of these results. Research limitations/implications Although care was taken to select products to enhance generalizability, the studies presented here are limited to two products. Further, although the present research includes a field study with actual charity-related purchases, the role of time pressures is not explicitly explored. Finally, the role of brand-self connections is not explored in the current research. The ability for a donor to integrate the mission of a charity into their self-perception or the potential for social normative influences to impact behaviors remains open for exploration. Practical implications Charities are facing increasing pressures to raise sustainable funds to support their missions. The research provides guidance to marketers and fundraisers in the non-profit sector that allows them to direct more focused fundraising appeals to donors and adapt their fundraising efforts to create a fit between their audience and fundraising appeals. Originality/value This research demonstrates that consumption target (purchasing for the self versus purchasing for others) is a vital contextual factor that influences customer preference for ethical attributes. These results complement the extant literature by exploring the underlying mechanism behind consumers’ responses to the ethical attributes in the case of self-purchase and other-purchase. The underlying effect is supported theoretically by resource synergy beliefs.

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sri Rahayu Hijrah Hati ◽  
Sigit Sulistiyo Wibowo ◽  
Anya Safira

Purpose The purpose of this study is to examine the impacts of product knowledge, perceived quality, perceived risk and perceived value on customers’ intention to invest in Islamic Banks. This study specifically examines an Islamic bank’s term deposits. Design/methodology/approach Structural equation modeling was used to analyze the data collected from 217 customers of an Islamic bank in Indonesia using an online survey. Findings This study highlights the central and dual roles of perceived risk as both the independent and the intervening variable that mediates the relationship between product knowledge and Muslim customer intention to invest in an Islamic bank’s term deposits. Research limitations/implications This study only investigates term deposits as one type of investment in Islamic banks. This study contributes to the literature by examining the role of product knowledge, perceived quality, perceived risk and perceived value on Muslim customer intention to invest in Islamic term deposits. Practical implications The results of this study highlight the requirement for Islamic banks to educate customers to improve the depositors’ product knowledge because Muslim customers’ risk and value perception and intention are strongly influenced by product knowledge. Originality/value The investigation of perceived risk is particularly relevant for Islamic financial products because of the inherent nature of risk sharing in Islamic finance. This study investigates the role of product knowledge in influencing the Muslim customers’ perception of risk, quality, value and their intention to invest in Islamic bank term deposits. Ideally, the profit loss sharing concept (PLS) should be applied; however, in this context, revenue sharing is applied because of Indonesia’s central bank regulation.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lijing Zhao ◽  
Shuming Zhao ◽  
Hao Zeng ◽  
Jingyi Bai

PurposeDrawing on identity theory and the symbolic interactionism perspective of identity theory, this study aims to construct a moderated mediation framework to test the effects of perceived overqualification (POQ) on knowledge sharing (KS) through professional identity threat (PIT) and the moderating role of coworkers' help-seeking behavior (CHSB).Design/methodology/approachThis paper uses a quantitative multistudy research design with a combination of a scenario experiment (Study 1) and a two-wave field study among 220 supervisor-subordinate dyads at a power company in China. Using analysis of variance, confirmatory factor analysis (CFA) and bootstrapping method, the authors validated the research hypothesis.FindingsIn the scenario experiment study (study 1), the authors find that POQ is positively related to PIT and that CHSB negatively moderates the positive impact of POQ on PIT. The field study (study 2) replicated the above findings and found that PIT mediates the negative effect of POQ on KS. In addition, CHSB negatively moderates the mediating role of PIT between POQ and KS.Originality/valueFirst, the current study extended the nomological network of POQ research by examining its influence on employees' KS. Second, this study empirically investigated the mediating role of PIT, which provided a new explanatory mechanism for the influence of POQ. Finally, this study demonstrates the moderating role of CHSB—a situational factor that has been ignored in previous studies.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Atmadeep Mukherjee ◽  
Amaradri Mukherjee ◽  
Pramod Iyer

Purpose Food waste is a big problem where millions of pounds of produce are discarded every year because they are imperfect or unattractive. Despite the societal implications of selling unattractive produce, limited research has been directed toward understanding the effect of imperfect produce on consumers’ evaluations of the produce and retailer outcomes. This paper aims to investigate why consumers tend to discard imperfect produce and how retailer interventions (i.e. anthropomorphized signage and packaging) can alleviate these negative effects. Design/methodology/approach Three experiments were conducted to examine the postulations. Study 1 highlights the role of consumers’ embarrassment in the purchase decision of imperfect produce and retailer patronage intention. Studies 2 and 3 provide managerially relevant boundary conditions of anthropomorphic signage and opaque packaging. Findings Convergent results across three studies (n = 882) indicate that imperfect produce increases purchase embarrassment and reduces purchase intention and retailer patronage intention. Retailer interventions (i.e. anthropomorphic signage and opaque packaging) can allay this feeling of embarrassment and lead to an increased retailer patronage intention and higher service satisfaction. Practical implications This research provides guidance to retailers for effectively promoting imperfect produce. Social implications Retailers’ actions can benefit the well-being of farmers, suppliers, customers and the overall environment. Originality/value This research adds to the literature on unattractive produce by identifying new moderators, namely, anthropomorphic signages and opaque packaging. The research also shows that purchase embarrassment is a key process mechanism.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Felix Septianto ◽  
Rokhima Rostiani ◽  
Widya Paramita

PurposeWhile new product introductions can potentially promote growth and benefit for brands, it remains unclear how marketers can develop effective communication strategies to increase the chance of success for new products. The present research investigates the role of cuteness in leveraging the effectiveness of a narrative emphasizing an insight versus an effort in this regard.Design/methodology/approachThis research presents two experimental studies. Study 1 examines the moderating role of cuteness on the likelihood of purchasing a new product featuring an insight-based (vs effort-based) narrative. Study 2 extends the findings of Study 1 using different stimuli and establishes the underlying mechanism.FindingsResults show that when a cuteness appeal is present, an insight-based (vs effort-based) narrative will lead to a higher purchase likelihood. However, these differences do not emerge when a cuteness appeal is absent (a control condition). Further, perceived brand creativeness will mediate this effect.Originality/valueThe findings of this research contribute to the literature on lay belief of creativity, cuteness, and product narrative, as well as managerial implications on how to promote new products.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pavleen Soni

PurposeIn an era of burgeoning activity in online retail in India, the role of web-store design is paramount. Web-store design elements such as website functionality, brand assortment and product quality are expected to generate customer loyalty.Design/methodology/approachUsing data collected from 553 students from two universities in north India, the present study investigates the indirect effect of web-store dimensions (through website functionality, brand assortment and product quality) on online store loyalty via an enjoyment state (flow) and customer satisfaction. Serial mediation has been analysed through PROCESS macro developed by Hayes version 3.0. In addition to this, the moderating role of gender and purchase frequency has also been investigated.FindingsThe present study renders support to serial mediation between website functionality, flow, customer satisfaction and loyalty. However, the path between brand assortment and loyalty is more strongly mediated by customer satisfaction only. Males experience less flow as compared to females while handling brand assortment on websites. The three-way interaction between brand assortment, gender and purchase frequency is also statistically significant.Originality/valueThe study examines the manner in which online retailers can choose to build customer loyalty when they try to build retail image using web store functionality and /or product/brand assortments. The study offers insights to retailers about how and when to focus on hedonism versus customer satisfaction or both of them in conjunction to enhance customer loyalty. This study is important as it investigates the relationships in Indian scenario witnessing a high rate of growth in online retail which can tremendously affect these relationships.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  

Purpose The authors wanted to find out the most important mechanisms for encouraging innovative behavior in the Indian manufacturing sector. Design/methodology/approach The researchers collected data from Indian manufacturing organizations. They distributed questionnaires and received 288 complete ones. Items measured critical concepts. For OJ one example was “I have been fairly rewarded for the effort I put forth”. For KS, one sample was, “When I have learned something new, I tell my colleagues about it” and, “When they have learned something new, my colleagues tell me about it”. Meanwhile, IB was measured using items such as “I generate original solutions for problems”. Findings It highlighted the pivotal role of OJ in bolstering employees’ IB. When companies treat employees fairly, it encourages positive social interactions that lead to perceptions of supportiveness and trustworthiness. Employees reciprocate these sentiments with positive behavior. The study also showed the positive predictive influence of KS on IB. Finally, the results showed that the relationship between OJ and IB is complex, but KS is a pivotal mediator. Promotion of OJ, KS and IM is “vital” to spark innovation. Originality/value The authors felt their most important finding was to highlight the critical role of the underlying mechanism of KS, which is where individuals exchange implicit and explicit knowledge to create new knowledge. In addition, previous researchers have looked at the role of organizational justice in encouraging innovative behavior, but evidence from non-Western countries is scarce.


2020 ◽  
Vol 48 (8) ◽  
pp. 781-801 ◽  
Author(s):  
Ouidade Sabri ◽  
Hai Van Doan ◽  
Faten Malek ◽  
Hager Bachouche

PurposeThe purpose of this paper is to demonstrate that the positive effect of packaging transparency on purchase intention is moderated by product quality risk (PQR) associated with the product category.Design/methodology/approachTwo separate experiments were conducted. Study 1 was designed to test the mediating role of perceived quality to account for the positive effect of transparency on purchase intention. Two types of packaging (opaque vs transparent) for a product associated with a high level of PQR were examined. Study 2 extended the findings by introducing the moderating role of PQR. A 2 (type of packaging: opaque vs transparent)*2 (PQR: low vs high) between subjects design was used.FindingsThe moderating role of the product PQR level is established: transparent packaging improves the product perceived quality and brand purchase intention when the product is associated with a high PQR, whereas there is no such preference for transparent packaging when the product is associated with a low PQR.Practical implicationsThe results offer insights to better understand the potential gains from adopting transparent packaging. If a brand manager's main goals are to develop sales, costly investments in research and development of transparent packaging appear to be fruitful only for products associated with high PQR.Originality/valueThis paper contributes to packaging, cue utilisation and perceived risk literatures by evidencing the moderating role of PQR to explain the positive effect of transparency on purchase intention.


2020 ◽  
Vol 32 (3) ◽  
pp. 511-528
Author(s):  
Roxana Corduneanu ◽  
Laura Lebec

PurposeDrawing on Simons's levers of control (LoC) framework, the primary aim of this study is to advance an understanding of the balance between empowerment and constraint in a non-profit UK organisation. In particular, this study examines the antecedents and manifestations of LoC (im)balance, in relation to employees' level of engagement with the control systems in place.Design/methodology/approachFor this study, 27 semi-structured interviews were conducted with different organisational members, from directors to non-managerial staff, to gain an in-depth appreciation of the main differences between managerial intentions in the design of management control systems (MCS) and employee perceptions regarding the role of such systems.FindingsThis research reveals that suppression of interactive systems and internal inconsistencies between different types of controls hinder the balance between empowerment and constraint. This imbalance is then found to have important consequences for employee buy-in, in some cases, defeating the purposes of control.Research limitations/implicationsThis study enhances our understanding of the gap between the design of control systems and the employee perceptions of it in an unusual organisational setting (non-profit and bringing together clinical and non-clinical staff and operations).Originality/valueThe study of MCS and its role in organisations has long been the focus of both academic and practitioner research. Yet, while extant literature focused on management's perspective on MCS, few studies have explored employees' attitudes and behaviours that accompany the implementation of control. What is more, little is known about the specific uses and behavioural outcomes of MCS in the context of non-profit organisations. Drawing on Simons's LoC framework, this paper addresses these gaps in the literature and investigates the balance between control and empowerment of employees in a UK non-profit organisation with significant clinical remit.


2019 ◽  
Vol 11 (1) ◽  
pp. 87-101 ◽  
Author(s):  
Shuai Yang ◽  
Tao Li ◽  
Sixing Chen ◽  
Bin Li

Purpose People generally believe that business with negative word-of-mouth, such as negative customer reviews can hardly have good sales. But a number of intriguing examples seem to contradict such beliefs. Academic has so far begun to explore the possible positive effect of negative customer reviews, but without unfolding its underlying mechanism. This paper proposes a mechanism through which the variance of customer reviews moderates the effect of negative reviews on sales. Design/methodology/approach This study takes a multi-method approach in explaining the phenomenon, including an empirical analysis using secondary data from a movie review website and a movie box office website and a subsequent experimental study in a controlled experiment. Findings The findings of the study show that the effect of negative customer reviews on product sales is positive when the variance of customer reviews is large. Moreover, customers’ motivation to learn fully mediates the moderating effect of review variance on valence. Practical implications The findings provide vital managerial implications and suggest that managers should realize the important role of the review distribution. Originality/value This study mainly contributes to research on the negativity bias by identifying an important unexplored moderator and mediator and thus explains why negative customer review increases movie sales.


2020 ◽  
Vol 8 (2) ◽  
pp. 215-235
Author(s):  
Evangelia Siachou ◽  
Panagiotis Gkorezis ◽  
Faith Adeosun

PurposeThe purpose of the present study was to examine the relationship between empowering leadership and volunteers' service capability in the context of nongovernmental organizations. In doing so, the mediating role of intention to share knowledge was highlighted.Design/methodology/approachData were collected from volunteers from two non-governmental organizations (NGOs) operating in Greece through a web-survey tool. To test our hypotheses, we used bootstrapping analysis.FindingsOur study provides support for the positive effect of empowering leadership (EL) on volunteers' service capability. In addition, we highlighted volunteers' intention to share their knowledge as an underlying mechanism that explains the above relationship.Originality/valueThe present study highlights the important role of EL in increasing service capability in the context of NGOs. Even more, the mediating role of intention to share knowledge provided new knowledge into why EL affects employees' extra-role behavior and more specifically, service capability.


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