Advertised reference price and sales price as anchors of the latitude of expected price and its impact on purchase intention

2017 ◽  
Vol 51 (9/10) ◽  
pp. 1597-1611 ◽  
Author(s):  
Rajesh Kumar Sinha ◽  
Atanu Adhikari
Keyword(s):  
Reference Price ◽  
Purchase Intention ◽  
Sales Price ◽  
Content Type ◽  
Consumer Responses ◽  
Intercept Survey ◽  
Price Estimation ◽  
Quasi Experimental ◽  
Anchor Points

Purpose This paper aims to investigate the influence of advertised reference price (ARP) and sales price (SP) as anchor points on the latitude of expected price, and subsequently on purchase intention (PI). The research involves the theoretical lens of selective anchoring mechanism, which allows investigation of the influence of ARP and SP in a situation where price estimation task is a “non-thoughtful processes”. Design/methodology/approach On the basis of quasi-experimental design, the study involves intercept survey of 142 shoppers. Findings The study finds that due to anchoring effect, the highest and the lowest expected prices shift toward ARP and SP, respectively. Consequently, it influences the latitude of expected price, which in turn influences purchase intention. In addition, the study proposes and tests a method to forecast expansion and contraction of the latitude of expected price. Research limitations/implications It suggests a new mechanism to understand the simultaneous influence of ARP and SP, provides a mechanism to understand shifts in price latitude’s end-points and investigates a phenomenon with two externally provided anchors. Practical implications The study highlights the role of the latitude of expected price in understanding consumers’ response. Results suggest that a plausible ARP, when joined with an above-expectation SP, can fetch better consumer responses. Originality/value The study uniquely investigates a problem with two anchor points and two estimation targets, and proposes a construct of internal price uncertainty (IPU).

Hotel discount strategies on consumer responses: the role of involvement

2014 ◽  
Vol 69 (4) ◽  
pp. 284-296 ◽  
Author(s):  
Seung Hyun Lee ◽  
Billy Bai
Keyword(s):  
Behavioral Intention ◽  
Positive Emotion ◽  
Behavioral Responses ◽  
Theoretical Understanding ◽  
Content Type ◽  
Consumer Responses ◽  
Quasi Experimental ◽  
The Impact ◽  
To Receive

Purpose – This paper aims to examine the impact of hotel discount strategies on consumers’ emotional and behavioral responses in the presence of differential levels of involvement in discount acquisition. Design/methodology/approach – Discount strategies and the high- and low-involvement variables were fully cross-examined, yielding a 2 × 2 factorial quasi experimental design. In all, 120 surveys were collected, and multivariate analysis of variance was used for data analysis. Findings – The results suggest that fenced discounts that require consumers to accept restrictions to receive a discount generated more positive emotion and stronger behavioral intention. Moreover, an interaction effect was found between consumer’s involvement and discounts on emotional and behavioral responses toward discount-acquiring experience. Highly involved consumers resulted in more positive emotional and stronger behavioral responses (e.g. pride, gratitude, word-of-mouth and retention) from obtaining a fenced discount that requires consumers’ efforts or sacrifices. On contrary, consumers with low involvement tend to appreciate more of a fixed discount given to anyone without restrictions. Practical implications – Hotels should implement a fenced discount when they design discounts targeting at high-involvement consumers. For low-involvement consumers, a fixed discount appears to generate more positive emotion and stronger behavioral intention. Originality/value – The study enhances the theoretical understanding of consumers’ emotional and behavioral responses toward discount-acquiring experience with different levels of involvement.

Be rational or be emotional: advertising appeals, service types and consumer responses

2014 ◽  
Vol 48 (11/12) ◽  
pp. 2105-2126 ◽  
Author(s):  
Hongxia Zhang ◽  
Jin Sun ◽  
Fang Liu ◽  
John G. Knight
Keyword(s):  
Purchase Intention ◽  
Service Condition ◽  
Affect Intensity ◽  
Content Type ◽  
Consumer Responses ◽  
Emotional Appeal ◽  
Service Type ◽  
Advertising Appeal ◽  
Moderating Role

Purpose – This research aims to examine the use of emotional and rational advertising appeal regarding service options that differ in terms of their experience and credence properties and exploring the moderating role of individual difference in affect intensity on the consumers’ varying reliance on rational vs emotional appeals. Design/methodology/approach – Study 1 is a 2 (service type: restaurant vs dentist) × 2 (advertising appeal: emotional vs rational) between-subjects design. In total, 137 undergraduate students took part in this study. Study 2 is a 2 (service type: airline vs hospital) × 2 (advertising appeal: emotional vs rational) between-subjects design. In total, 84 MBA students were randomly assigned to each of the experimental conditions. Study 3 is a 2 (service type: airline vs hospital) × 2 (advertising appeal: rational vs emotional appeal) × 2 (affect intensity: high vs low) between-subjects design. The sample size was 170 undergraduates. Findings – The results of the first two studies provided support that an emotional advertising appeal led to a higher purchase intention in the experience service condition, while a rational message generated higher purchase intention in the credence service condition. Study 3 showed the moderating role of individual difference in affect intensity. High affect intensity individuals reported higher levels of brand favorability than did their low affect intensity counterparts when exposed to ads using emotional appeal. Conversely, subjects showed no significant differences in the intensity of their emotional responses when exposed to rational appeals. Practical implications – Our results suggest a strong need to tailor ads to fit different service categories. An emotional appeal would be more effective for experience services, and a rational appeal would be more effective for credence services. Besides, individual traits may also need to be considered when matching the appeal to the service type. Originality/value – This study makes an important contribution to the limited existing research by providing a more comprehensive understanding of the relationship between advertising appeal and the type of service across different sub-categories, themes, individual trait and effectiveness measures. Specifically, the present research seeks to illuminate the relative effectiveness of emotional vs rational appeals in services advertising. In addition, the current research reveals new knowledge about the role that affect intensity plays in determining consumer responses to advertising.

Seeking attention: an eye tracking study of in-store merchandise displays

2015 ◽  
Vol 43 (6) ◽  
pp. 561-574 ◽  
Author(s):  
Patricia Huddleston ◽  
Bridget K. Behe ◽  
Stella Minahan ◽  
R. Thomas Fernandez
Keyword(s):  
Visual Attention ◽  
Eye Tracking ◽  
Purchase Intention ◽  
Product Information ◽  
Product Category ◽  
Practical Significance ◽  
Content Type ◽  
First Time ◽  
Tracking Technology

Purpose – The purpose of this paper is to elucidate the role that visual measures of attention to product and information and price display signage have on purchase intention. The authors assessed the effect of visual attention to the product, information or price sign on purchase intention, as measured by likelihood to buy. Design/methodology/approach – The authors used eye-tracking technology to collect data from Australian and US garden centre customers, who viewed eight plant displays in which the signs had been altered to show either price or supplemental information (16 images total). The authors compared the role of visual attention to price and information sign, and the role of visual attention to the product when either sign was present on likelihood to buy. Findings – Overall, providing product information on a sign without price elicited higher likelihood to buy than providing a sign with price. The authors found a positive relationship between visual attention to price on the display sign and likelihood to buy, but an inverse relationship between visual attention to information and likelihood to buy. Research limitations/implications – An understanding of the attention-capturing power of merchandise display elements, especially signs, has practical significance. The findings will assist retailers in creating more effective and efficient display signage content, for example, featuring the product information more prominently than the price. The study was conducted on a minimally packaged product, live plants, which may reduce the ability to generalize findings to other product types. Practical implications – The findings will assist retailers in creating more effective and efficient display signage content. The study used only one product category (plants) which may reduce the ability to generalize findings to other product types. Originality/value – The study is one of the first to use eye-tracking in a macro-level, holistic investigation of the attention-capturing value of display signage information and its relationship to likelihood to buy. Researchers, for the first time, now have the ability to empirically test the degree to which attention and decision-making are linked.

What’s in it for me? Food packaging and consumer responses, a focus group study

2015 ◽  
Vol 117 (3) ◽  
pp. 1122-1135 ◽  
Author(s):  
Fredrik Fernqvist ◽  
Annika Olsson ◽  
Sara Spendrup
Keyword(s):  
Focus Group ◽  
Food Packaging ◽  
Quantitative Methods ◽  
Focus Group Study ◽  
Content Type ◽  
Consumer Responses ◽  
Advantages And Disadvantages ◽  
Consumer Benefits ◽  
Group Interviews

Purpose – The purpose of this paper is to explore consumer views on different aspects of packaging, exemplified by a common product in the fruit and vegetable category and to identify advantages and disadvantages perceived by consumers purchasing packaged or unpackaged products. Design/methodology/approach – Three focus group interviews were conducted. Thematic analysis based on theory was performed. The findings were categorised into nine themes. Findings – Consumer views on packaging aspects were revealed, covering: packaging material; pack size; protection and preservation; convenience; price; communication and information; ethical perspectives; novelty and innovation; and advantages and disadvantages of packaged and unpackaged products. Research limitations/implications – The study adds to present knowledge on the role of packaging in consumers’ food choices. The qualitative analysis identified areas for further research through quantitative methods. Practical implications – Challenges in communicating the consumer benefits of packaging and ways to improve the attractiveness of items in the fresh produce category were identified. The results can potentially assist in improving food packaging design practice to the mutual benefit of consumers and suppliers. Originality/value – Fruit and vegetables is generally a category with weak branding and low levels of packaging. This study examined the role of packaging in a category with substantial opportunities for differentiation and increasing consumer value. The results can be applied in immediate practice and/or serve as a basis for further research.

Employee's lying behavior and the role of self-awareness

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kirk Chang ◽  
Sylvain Max ◽  
Jérémy Celse
Keyword(s):  
Design Methodology ◽  
Deductive Reasoning ◽  
Research Approach ◽  
Self Awareness ◽  
Laboratory Setting ◽  
Content Type ◽  
Quasi Experimental ◽  
Research Findings ◽  
Practical Implications

Purpose Employee’s lying behavior has become ubiquitous at work, and managers are keen to know what can be done to curb such behavior. Managers often apply anti-lying strategies in their management and, in particular, the role of self-awareness on lying intervention has drawn academic attention recently. Drawing on multi-disciplinary literature, this study aims to investigate the efficacy of self-awareness in reducing lying behavior. Design/methodology/approach Following the perspectives of positivism and deductive reasoning, a quasi-experimental research approach was adopted. Employees from Dijon, France were recruited as research participants. Based on the literature, different conditions (scenario manipulation) were designed and implemented in the laboratory, in which participants were exposed to pre-set lying opportunities and their responses were analyzed accordingly. Findings Unlike prior studies which praised the merits of self-awareness, the authors found that self-awareness did not decrease lying behavior, not encouraging the confession of lying either. Employees actually lied more when they believed other employees were lying. Practical implications This study suggests managers not to rely on employee’s self-awareness; rather, the concept of self-awareness should be incorporated into the work ethics, and managers should schedule regular workshops to keep employees informed of the importance of ethics. When employees are regularly reminded of the ethics and appreciate its importance, their intention of lying is more likely to decrease. Originality/value To the best of the atuhors’ knowledge, the current research is the first in its kind to investigate lying intervention of employees in the laboratory setting. Research findings have brought new insights into the lying intervention literature, which has important implication on the implementation of anti-lying strategies.

Role of mall attractiveness in shaping fashion shopping orientation of apparel shoppers: a segmentation approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ajay Kumar ◽  
Anil Kumar Kashyap
Keyword(s):  
Cluster Analysis ◽  
Design Methodology ◽  
Economic Value ◽  
Variety Seeking ◽  
Content Type ◽  
Shopping Orientation ◽  
Intercept Survey ◽  
Segmentation Approach ◽  
The Difference

Purpose The purpose of this study is to identify distinct segments of apparel shoppers based on their fashion shopping orientation. The difference among the segments based on mall attractive dimension is also examined. Design/methodology/approach The data were collected through mall intercept survey from the mall shoppers. Samples of 375 respondents are used for data analysis purpose. Exploratory factor analysis is used to extract the factors of fashion shopping orientation and mall attractive dimensions while K-means cluster analysis is applied to identify the segments. Findings This study resulted in three factors of fashion orientation of apparel shoppers, i.e. fashion involvement, variety seeking and economic value, and four factors of mall attractive dimensions: convenience, entertainment, atmosphere and architecture design. Based on these factors, this study came out with three distinct segments of fashion shoppers: pragmatic shoppers, variety seeking shoppers and highly fashioned shoppers. These three segments are attracted towards the mall dimension differently. Originality/value This paper presents the three distinct profiles of fashion shoppers based on their fashion shopping orientation and mall attractive dimensions. The findings of this study may help retailers and mall developers to target mall visitors appropriately.

Imperfect produce: retailer actions and service outcomes

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Atmadeep Mukherjee ◽  
Amaradri Mukherjee ◽  
Pramod Iyer
Keyword(s):  
Purchase Intention ◽  
Design Methodology ◽  
Well Being ◽  
Societal Implications ◽  
Negative Effects ◽  
Content Type ◽  
Service Outcomes ◽  
Patronage Intention ◽  
Practical Implications

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.

Examining restaurant purchase intention during crises: the role of message appeal

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Minji Kim ◽  
Eun Joo Kim ◽  
Billy Bai
Keyword(s):  
Purchase Intention ◽  
Potential Effect ◽  
Social Health ◽  
Perceived Fit ◽  
Content Type ◽  
Customer Perception ◽  
Human Needs ◽  
Restaurant Managers ◽  
Research Findings

Purpose This paper aims to examine the joint role of the pandemic-induced source of crisis (i.e. health and social crisis) based on Maslow’s Hierarchy of Needs and message appeal in customer perception of and behavioral intention toward a restaurant. Design/methodology/approach This study uses a 2 (source of crisis: social, health) × 2 (message appeal: social, health) between-subjects factorial design. A total of 181 samples was collected and data was analyzed by using ANCOVA and PROCESS. Findings The results showed a significant two-way interaction between source of crisis and message appeal on to-go intention. With the potential effect of risk aversion being controlled, message appeal significantly impacted perceived competence, which influenced both dine-in and to-go intentions. Practical implications The research findings suggest a crucial role of perceived fit between message appeal and customer concerns during crises. Therefore, restaurant managers should actively communicate their safety practices with their customers to inspire customer confidence. Originality/value This study identifies crisis dimensions based on human needs during crises such as the COVID-19 pandemic, which determines the persuasiveness of marketing messages.

Comparing retail formats in an emerging market

2014 ◽  
Vol 6 (1) ◽  
pp. 48-69 ◽  
Author(s):  
Gordhan K. Saini ◽  
Arvind Sahay
Keyword(s):  
Purchase Intention ◽  
Emerging Market ◽  
Retail Store ◽  
Policy Implications ◽  
Content Type ◽  
Consumer Responses ◽  
Consumer Purchase Intention ◽  
Low Levels ◽  
Low Price Guarantee ◽  
Retail Formats

Purpose – This study aims to examine the importance of credit and low price guarantee (LPG) on consumer purchase intention across types of retail store formats in an emerging market context. Design/methodology/approach – A 2 (kirana/modern retail)×2 (high/low LPG)×2 (credit/no credit) experimental design was used for this study. A sample of 200 respondents was asked about their purchase intention for a newly introduced hypothetical toothpaste brand and six hypotheses were tested. Findings – Findings show that credit and level of LPG determine consumer's purchase intention across store formats. The presence of credit and high LPG increases the purchase intention; however, relatively importance of these two varies by type of store. The absence of credit at kirana store definitely reduces the buying intention, while same is not true for modern retail store, where level of LPG is more important than the credit. Interestingly, buyer is likely to discount high LPG for a month's credit offered by a kirana store. Practical implications – The study can help practitioners and scholars to understand consumer responses to credit and LPG in buying decisions, and subsequently in designing a better product offer at a particular store format in emerging markets. Originality/value – Important insights are provided about the consumer behavior resulting from the presence or absence of credit and high or low levels of LPG in an emerging market context. The study also has public policy implications in a country where FDI in retail is a hotly debated topic.

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