Active bidders versus smart bidders

2019 ◽  
Vol 53 (4) ◽  
pp. 585-606 ◽  
Author(s):  
Kacy K. Kim ◽  
Michael J. Gravier ◽  
Sukki Yoon ◽  
Sangdo Oh
Keyword(s):  
Design Methodology ◽  
Online Auction ◽  
Product Categories ◽  
Minimum Number ◽  
Price Auction ◽  
Second Price Auction ◽  
Shopping Goals ◽  
Proxy Bidding ◽  
Practical Implications ◽  
At Will

Purpose The purpose of this paper is to contrast two lay theories of how consumers draw affective inferences about their online bidding experiences. The active-bidder theory (smart-bidder theory) predicts that after winning a bid, highly (minimally) participative bidders would be more satisfied than minimally (highly) participative bidders. Design/methodology/approach Four experiments test two competing hypotheses, the active-bidder hypothesis and the smart-bidder hypothesis (Study 1), identify a condition that mitigates the observed effects (Study 2), identify when the mitigation is effective or ineffective (Study 3) and replicate the findings in a scenario-based study where participants are allowed to make actual bidding decisions (Studies 4A and 4B). Findings The findings support the smart-bidder hypothesis across three different product categories; however, this heuristic-driven effect is absent when bidders have concrete shopping goals. The effect was sufficiently robust to be observed even when the bids are made at will. Research limitations/implications The present research does not incorporate the widely adopted procedure of second-price auction (also known as proxy bidding in the eBay setting), a system that allows the highest bidder to win the auction but pay the amount of the second-highest bid. Practical implications Online consumers should be mindful that entering the minimum number of bids not only helps consumers avoid overbidding but also elevates their joy in winning after the auction ends. Originality/value Prior research on bidding behavior on online auction sites has yet to examine how different bidding dynamics affect consumers’ post-auction satisfaction. This research sheds light on the psychological process underlying the robust phenomenon: online auction consumers rely heavily on proxy signals. Bidders appear to use the efficiency heuristic in constructing their affective judgments of their buying experiences.

Examining the influences of perceived exclusivity and perceived rarity on consumers' perception of luxury

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xujia Wang ◽  
Billy Sung ◽  
Ian Phau
Keyword(s):  
Factor Analysis ◽  
Confirmatory Factor Analysis ◽  
Design Methodology ◽  
Marketing Strategies ◽  
Content Type ◽  
Product Categories ◽  
Theoretical Support ◽  
Confirmatory Factor ◽  
Luxury Market ◽  
Practical Implications

PurposeThe purpose of this study is to investigate how exclusivity and rarity (natural versus virtual) influence consumers' perceptions of luxury. Further, it examines whether exclusivity and rarity can function as distinct marketing strategies in today's luxury market environment.Design/methodology/approachOnline questionnaires were administered by adapting developed scales from prior research. Research stimuli were chosen from three luxury categories including bags, wine and cruise. Confirmatory factor analysis and multiple regressions were used to test the hypotheses.FindingsThe results confirmed that exclusivity, natural rarity and virtual rarity were perceived as relatively distinct constructs among our sample. Findings also highlighted that perceived natural rarity (PNR) has consistently emerged as a positive and significant contributor to consumers' perceptions of luxury across all three luxury categories. The influence of perceived exclusivity (PE) on perceptions of luxury has also shown to be significant for two product categories (luxury bag and luxury wine), whereas perceived virtual rarity (PVR) did not show any significant effects across all three categories.Practical implicationsThe results indicate that consumers perceive natural rarity, virtual rarity and exclusivity as relatively distinctive marketing strategies. This suggests that luxury businesses can adopt each strategy independently to achieve desired marketing outcomes.Originality/valueThis study offers theoretical support for the proposition that exclusivity and rarity may have different functions in luxury marketing implementations. It provides empirical evidence showing the distinctiveness of perceived exclusivity and perceived rarity, which have not be done in previous research.

An experimental study of the effect of packaging colour on children's evaluation of packaging and attitude towards the brand

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nora Bezaz ◽  
Mathieu Kacha
Keyword(s):  
Design Methodology ◽  
Food Product ◽  
Content Type ◽  
Point Of Sale ◽  
Product Categories ◽  
Healthy Diets ◽  
Marketing Tool ◽  
Age Features ◽  
Practical Implications ◽  
Additional Product

PurposeThis article aims to determine how packaging colour (hue, saturation and brightness) for a healthy food product might influence children's evaluation of the packaging and their attitude towards the brand.Design/methodology/approachAn experiment involving 157 children (7–12 years of age) features a within-subject, factorial design. The product selected for this experiment is an unknown brand of orange juice.FindingsEach colour dimension on packaging exerts an impact on children's evaluation of the packaging and attitude towards the brand. Therefore, the colour featured on packaging can be an effective lever for action to ensure and enhance children's healthy diets.Research limitations/implicationsFurther research should investigate these effects across additional product categories, brands and colours.Practical implicationsPackaging is an important marketing tool that influences children's evaluation of the packaging and attitude towards the brand, especially at the point of sale. To understand and exploit these packaging colour effects appropriately for healthy products, it is crucial to understand the effects of various packaging colour dimensions.Originality/valueLittle prior research has addressed the effects of packaging on children's responses, especially by accounting for multiple colour dimensions. Nor has extant research identified how packaging colour dimensions can affect children's evaluation and brand attitude. Especially in consideration of the growing problem of childhood obesity, it is important to give marketers effective ways to promote healthy products.

Being the first entrant and getting stuck in the middle

2017 ◽  
Vol 51 (7/8) ◽  
pp. 1178-1196 ◽  
Author(s):  
Elisa Montaguti ◽  
Alessandra Zammit
Keyword(s):  
Design Methodology ◽  
Decision Rules ◽  
New Product ◽  
Decision Strategy ◽  
Extreme Position ◽  
Content Type ◽  
Product Categories ◽  
Relative Disadvantage ◽  
Pioneering Advantage ◽  
Practical Implications

Purpose This paper aims to examine how pioneering advantage interacts with the compromise effect generated by new product entries. Building on prior work on pioneering advantage and extreme aversion, this research moves toward understanding how the choice share of a pioneer realigns as a consequence of new product entries generating compromise-like scenarios. Design/methodology/approach The authors run three experiments to test their propositions. The authors present one study which documents the effect. The second study provides process evidence. The third study suggests how brands can neutralize the adverse effect on their share generated by the followers’ entry/positioning. Findings In three studies, the authors showed that when a pioneering product becomes intermediate in a choice set, its share is more adversely affected than when it becomes extreme. The authors show that this depends on consumers’ propensity to use non-compensatory decision rules in the presence of a pioneering alternative. The authors also document that the relative disadvantage of the intermediate pioneer can be overcome when the reasons for selecting an intermediate alternative based on a compensatory decision rule are restored. Practical implications The research provides guidelines for managers wanting to enter product categories where a pioneer already exists. The authors show that opting for an extreme position that renders the pioneer intermediate can be rewarding. In contrast, being the second extreme player in a market where the pioneer becomes extreme reduces the expected share of this last entrant. Originality/value The authors’ contribution is in showing that this decision strategy can clash with the rule consumers generally use in a compromise setting and that this clash generates two different effects when the pioneer becomes intermediate or extreme.

Prescribed consumption and consumers' decision-making styles: a cross-cultural comparison between Europe and Asia

2016 ◽  
Vol 44 (3) ◽  
Author(s):  
Corinne Lamour ◽  
Catherine De La Robertie
Keyword(s):  
Decision Making ◽  
Cultural Context ◽  
Design Methodology ◽  
Cross Cultural ◽  
Consumer Decision Making ◽  
Chinese Sample ◽  
Product Categories ◽  
Decision Making Styles ◽  
Set Up ◽  
Practical Implications

Purpose The goal of this research is 1) to check if shopping prescription consciousness is a fundamental decision-making characteristic, 2) to know its weight and position into consumer decision-making styles (DMS), and 3) to compare results between France and China. Design/methodology/approach A quantitative survey using the Consumer Styles Inventory (Sproles and Kendall, 1986) is done with 308 French and 221 Chinese pet food buyers. Factorial, multivariance, clustering and discriminant analyses are run. Findings Findings reveal that shopping prescription consciousness is a fundamental decision-making characteristic. Although this concept scores the same in both cultures, correlations between shopping prescription and other characteristics vary from a culture to another, showing a different prescription follower profile. In addition, opposite to our expectations prescription consciousness has a discriminant role on DMS in France but not in China. Finally, culture impacts overall DMS. Research limitations/implications The Chinese sample is weak. This study must be replicated in more product categories and involve more countries. This paper attempts to enrich prescribed consumption knowledge in a cross-cultural context. Practical implications This paper 1) enriches academic understanding of the decision delegation concept, in a cross-cultural context, and 2) encourages organizations involved in complex products to set up loyalty qualitative programs and prescriber networks to ease shopping decision and consequently increase sales. Originality/value This is the first time that decision delegation and prescription is studied according to decision-making styles in a cross-cultural context.

Brand personality and purchase intention

2015 ◽  
Vol 27 (5) ◽  
pp. 462-476 ◽  
Author(s):  
María de la Paz Toldos-Romero ◽  
Ma. Margarita Orozco-Gómez
Keyword(s):  
Regression Analysis ◽  
Undergraduate Students ◽  
Purchase Intention ◽  
Design Methodology ◽  
Consumer Preferences ◽  
Brand Personality ◽  
Personality Dimensions ◽  
Content Type ◽  
Product Categories ◽  
Practical Implications

Purpose – The purpose of this paper is to analyze the effects of brand personality dimensions on purchase intention. Furthermore, the brand personality dimensions are compared to study the differences between users and non-users of 12 brands. Design/methodology/approach – An estimated 400 undergraduate students participated. They were given a questionnaire divided into two sessions (six brands of think products in one session and six brands of feel products in another session). In the end, 313 participants completed the questionnaire on the six brands of think products, and 320 completed the questionnaire on the six brands of feel products. Findings – Multiple regression analysis revealed that Hipness/Vivacity, Success, Sincerity and Sophistication brand personality dimensions are significant predictors of purchase intention. In addition, Domesticity/Emotionality and Professionalism also explain purchase intention but with a negative weight. The results are also broken down into product categories. Compared with non-users of the brands, the users rate the brands higher in all the brand personality dimensions. Practical implications – This paper should prove useful to marketing practitioners to understand how Mexican customers perceive their brands and those of their competitors and, therefore, to understand what competitors of these brands can do to increase purchase intention. Originality/value – The results found regarding purchase intention are important, as they can be used to identify those personality brand dimensions that appear to be most important in explaining consumer preferences.

What do marketers post on brands’ Facebook pages in Islamic countries?

2019 ◽  
Vol 10 (4) ◽  
pp. 1272-1287
Author(s):  
Mohammad Hatim Abuljadail ◽  
Louisa Ha
Keyword(s):  
Saudi Arabia ◽  
Content Analysis ◽  
Design Methodology ◽  
Arabic Language ◽  
Content Type ◽  
Global Brands ◽  
Product Categories ◽  
Informative Content ◽  
Facebook Pages ◽  
Practical Implications

Purpose This paper aims to investigate the “posting” behavior of marketers on brands’ Facebook pages and whether these “posting” behaviors differ between local and global brands in Saudi Arabia. Design/methodology/approach The study randomly selected a total of 400 Facebook brand page posts from a matching sample of top 20 global and 20 local brands in Saudi Arabia using content analysis. Findings One of the notable findings show that global brands are more likely to post content that consists of prizes/giveaways, games/competitions and socializing than local brands, while local brands are more likely to post informative content than global brands. The findings also show that local brands are more likely to use content that includes Islamic messages, women in modest clothing, Arabic language and Saudi dialect than global brands. Research limitations/implications This study is limited to 20 global and 20 local brands. More product categories are needed. Practical implications The findings of this study have implications for marketers in regards to what types of communication content is more likely to be posted on brands’ Facebook fan pages in Saudi Arabia – especially for those global brands that are interested in having a localized brand Facebook fan page for Saudi Arabia. Originality/value The first study to compare Facebook strategies used by global brands and local brands in the same market.

Putting a price on sustainability

2015 ◽  
Vol 31 (7) ◽  
pp. 8-10
Keyword(s):  
Fair Trade ◽  
Design Methodology ◽  
Reading Time ◽  
Purchase Behavior ◽  
Sustainable Food ◽  
Content Type ◽  
Product Categories ◽  
Pertinent Information ◽  
The One ◽  
Practical Implications

Purpose – This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach – This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings – Sustainability has over recent times become one of those buzzwords there seems little escape from. As a consequence, the number of product categories untarnished by its associated implications is diminishing all the time. Food is clearly the one sector where sustainability issues are very much to the fore. The advent of labeling practices to indicate such as organic or Fair Trade has further ensured their prominence. Persuading consumers to buy sustainable food products has, however, produced mixed results to date. Numerous individuals readily voice their approval of any initiatives aimed at safeguarding natural resources or promoting animal welfare, for example. But their actual purchase behavior often tells a different story. Words clearly speak louder than actions in these cases. Practical implications – The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value – The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

scholarly journals Social media influencers, product placement and network engagement: using AI image analysis to empirically test relationships

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Richard N. Rutter ◽  
Stuart J. Barnes ◽  
Stuart Roper ◽  
John Nadeau ◽  
Fiona Lettice
Keyword(s):  
Social Media ◽  
Return On Investment ◽  
Design Methodology ◽  
Network Effects ◽  
Product Placement ◽  
Content Type ◽  
Product Categories ◽  
Close Fit ◽  
Practical Implications ◽  
Beauty Products

PurposeThis research tests empirically the level of consumer engagement with a product via a nonbrand-controlled platform. The authors explore how social media influencers and traditional celebrities are using products within their own social media Instagram posts and how well their perceived endorsement of that product engages their network of followers.Design/methodology/approachA total of 226,881 posts on Instagram were analyzed using the Inception V3 convolutional neural network (CNN) pre-trained on the ImageNet dataset to identify product placement within the Instagram images of 75 of the world's most important social media influencers. The data were used to empirically test the relationships between influencers, product placement and network engagement and efficiency.FindingsInfluencers achieved higher network engagement efficiencies than celebrities; however, celebrity reach was important for engagement overall. Specialty influencers, known for their “subject” expertise, achieved better network engagement efficiency for related product categories. The highest level of engagement efficiency was achieved by beauty influencers advocating and promoting cosmetic and beauty products.Practical implicationsTo maximize engagement and return on investment, manufacturers, retailers and brands must ensure a close fit between the product type and category of influencer promoting a product within their social media posts.Originality/valueMost research to date has focused on brand-controlled social media accounts. This study focused on traditional celebrities and social media influencers and product placement within their own Instagram posts to extend understanding of the perception of endorsement and subsequent engagement with followers. The authors extend the theory of network effects to reflect the complexity inherent in the context of social media influencers.

Shopping experiences in visually complex environments: a self-regulation account

2016 ◽  
Vol 27 (2) ◽  
Author(s):  
Ulrich R. Orth ◽  
Jochen Wirtz ◽  
Amelia McKinney
Keyword(s):  
Design Methodology ◽  
Perceptual Load ◽  
Self Regulation ◽  
Visual Complexity ◽  
Self Control ◽  
Shopping Experience ◽  
Negative Effect ◽  
Advance Theory ◽  
Shopping Goals ◽  
Practical Implications

Purpose Providing satisfying shopping experiences is a major goal in retail management because satisfaction guides re-patronage behavior. This study aims to demonstrate that the visual complexity of an environment’s interior design (i.e., the overall amount of visual information in an environment) influences the shopping experience by impairing customers’ information processing and self-regulation resources. Design/methodology/approach Two quasi-experimental field studies were conducted in two different cultural contexts (i.e., Germany and Singapore) to enhance the external validity and robustness of the findings. Findings Both studies provide evidence that an environment’s visual complexity impairs the shopping experience. Study 1 shows that visual complexity places a perceptual load on customers which mediates the complexity-experience relationship. Study 2 replicates this finding in a different setting and extends it by showing that load relates to lower self-control, which in turn, mars the experience. Furthermore, the negative effect of complexity on the experience is more pronounced with shoppers pursuing utilitarian rather than hedonic shopping goals. Research limitations/implications Our findings in a supermarket context may not transfer to environments in which the visual design is an important component of the value proposition and where shopping goals are largely hedonic in nature. Practical implications Our findings advance theory by showing that it is perceptual load and its outcome, reduced perceived self-control, which are largely responsible for the negative effect of visual complexity on the shopping experience. This finding should encourage managers to proactively manage and reduce the complexity of their service environments. Originality/value This study is the first to show HOW the visual complexity of a retail environment influences a customer's shopping experience. It offers novel insights into the underlying mechanism of perceptual load and self-control as process mediators of visual complexity on the shopping experience.

Self-selection and purchase value of research shoppers

2020 ◽  
Vol 48 (8) ◽  
pp. 845-863
Author(s):  
Jason Ian Pallant ◽  
Sean James Sands ◽  
Carla Renee Ferraro ◽  
Jessica Leigh Pallant
Keyword(s):  
Design Methodology ◽  
Online Survey ◽  
Single Channel ◽  
Content Type ◽  
Product Categories ◽  
Self Selection ◽  
Before And After ◽  
Online Channel ◽  
The Impact ◽  
Practical Implications

PurposeThis paper investigates the degree to which self-selection explains the apparent higher purchase value of research shoppers.Design/methodology/approachAn online survey was administered to 594 retail shoppers. The purchase value of research shoppers and single-channel shoppers was compared before and after propensity score matching to account for self-selection effects.FindingsPrior to matching, research shoppers spend significantly more than single-channel shoppers. This difference persists after accounting for self-selection but is reduced by 25%. The impact of self-selection differs across product categories and channels, with the online channel most likely to lead to higher purchase value.Practical ImplicationsThe findings build on existing literature on the value of omni-channel retail strategies and provide insights for retailers to determine the likely impact of encouraging research shopping among their customers.Originality/valueThe research provides important insights into the role that self-selection plays in the value of multi-channel shoppers, and the likely value to retailers of omni-channel strategies.

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