Consumers’ reactions to variety reduction in grocery stores: a freedom of choice perspective

2018 ◽  
Vol 52 (9/10) ◽  
pp. 1931-1955 ◽  
Author(s):  
Paraskevas Argouslidis ◽  
Dionysis Skarmeas ◽  
Antonios Kühn ◽  
Alexis Mavrommatis

Purpose This paper aims to propose a framework for psychological reactance–triggered adverse effects of variety reductions in grocery product categories on shoppers’ patronage intentions. Design/methodology/approach The paper tests this framework in two field studies with European shoppers. Findings Participants perceived mild (let alone aggressive or conspicuous) variety reductions as a threat to their prior freedom of choice (i.e. a precondition for the occurrence of domain-specific reactance). Through lower satisfaction with the reduced variety and anger towards the grocer, this threat, in turn, fostered adverse patronage intentions. Such effects depended on product category nature (utilitarian vs hedonic) and shoppers’ intrinsic need for variety, attitude towards private-label items and general proclivity towards experiencing reactance. Research limitations/implications By applying psychological reactance theory to a variety reduction context, this paper offers new implications for assortment reduction research. Certain limitations call for future reactance theory–framed inquiry. Practical implications The findings caution against traditional grocers’ drastic variety reduction policy and highlight conditions enabling assortment rationalisation without severely affecting freedom of choice. Originality/value Drawing on notions such as “the tyranny of choice”, critics have urged traditional grocers to drastically reduce variety. However, this paper shows that shoppers perceive variety reductions as threats to their prior freedom, which traditional grocers themselves educated them to expect and enjoy.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pablo Farías ◽  
Luis Torres

PurposeThis paper explores which market and product category characteristics could influence the use of foreign language brand names (i.e. whether a brand uses a foreign language versus local language brand name) in some of the largest Latin American countries.Design/methodology/approachHypotheses are tested using 880 brands from 39 product categories and nine Latin American markets using a hierarchical logistic regression.FindingsResults revealed that foreign language brand names are more likely to be used in product categories related to local infrastructure, high-tech and global community. In contrast, local language brand names are more likely to be used in product categories associated to subscriptions. Findings also suggest that Hofstede's national cultural dimensions are significant factors. Finally, the results revealed that foreign language brand names are more likely to be used in markets with a low level of foreign language proficiency.Originality/valueThis paper shows the importance of considering market and product category characteristics and their potential influence on local versus foreign language branding in Latin America – an ignored issue in previous research.


2017 ◽  
Vol 32 (2) ◽  
pp. 93-103
Author(s):  
Amit K. Ghosh

Purpose The constantly changing prices, promotions, and packaging options have made decision making more complex for consumers of packaged goods. The purpose of this paper is to explore how price and promotions influence consumer propensity to buy a certain package size. Design/methodology/approach Scanner panel data for shelf-stable salad dressing obtained from Information Resources Inc. were used to compute the proportion of large packages bought, the relative price paid for large packages, propensity to use various types of promotions, and a behavioral covariate for each household. Data of over 5,600 households were analyzed using a multiple regression analysis for hypothesis testing. Findings The positive nature of relationship between the relative price of large packages and the proportion of large packages bought demonstrates the suboptimal nature of consumer decision making. The inefficiency is partially attributable to the abundance of promotions, to consumers’ lack of price awareness, and to the use of heuristics by consumers. Also, consumers who are prone to use promotions such as displays and temporary price reductions tend to purchase larger packages. They are more likely to buy impulsively and base their decisions on heuristics. In contrast, consumers who are influenced by featured price cuts and who utilize coupons tend to purchase smaller packages. Research limitations/implications Data were obtained from grocery stores; only a single product category was studied. Practical implications Offer coupons and advertise featured price cuts on small packages to increase the sales of smaller packages. To move large packages successfully, retailers should rely more on in-store displays and temporary price reductions. Originality/value The impact of price and promotions on package size propensity has never been investigated. This study is also one of the few that uses a household-level analysis based on observable purchase data for consumer packaged goods.


2021 ◽  
Author(s):  
Kathryn Harper

The present research investigated the role of perceived threat to freedom of choice in children’s development of preference for scarcity. In two experiments, 5- to 7-year-olds assisted a fictional agent in choosing between relatively scarce versus abundant toys in a “virtual shop.” Experiment 1 investigated the role of extremity of scarcity in children’s preference for scarcity, while Experiment 2 investigated the role of the presence of competition. These two factors were anticipated to activate perceived threat to freedom to choose the scarce objects, resulting in motivational arousal to choose the scarce objects. Overall, a preference for scarcity increased with age. When threat to freedom of choice was induced, 7-year-olds showed a robust preference for scarcity in both experiments. The findings are discussed in the context of reactance theory and other factors influencing children’s patterns of responses, including prosociality. This research contributes to our understanding of children’s use of statistical information. Key words: scarcity, threat to freedom of choice, psychological reactance


2018 ◽  
Vol 22 (4) ◽  
pp. 362-381 ◽  
Author(s):  
Chiara Valentini ◽  
Stefania Romenti ◽  
Grazia Murtarelli ◽  
Marta Pizzetti

PurposeThe purpose of this paper is to investigate the effects of visual communications on Instagram users’ propensity to engage with image-based content through online behaviors such as liking, sharing, commenting and following, and their intention to purchase the product depicted in the visual communications.Design/methodology/approachAn experimental design was used to measure the effect of branded Instagram images on a sample of active Instagram users. Two features of Instagram images (subject’s gaze: direct vs indirect; product salience: low vs high) were manipulated and their interactive effect tested on online behaviors.FindingsThe paper offers empirical evidence that direct gaze and high product salience positively affect digital visual engagement. Moreover, digital visual engagement influences intention to purchase.Research limitations/implicationsThe hypotheses were tested on a single product category and on only two image-based features. Further studies might replicate the experiment on different product categories and include different image-based features.Practical implicationsThis empirical study can offer communication managers important information on the image-based features that are most effective in increasing digital visual engagement and positively influencing purchase intentions in visual communications.Originality/valueThe study empirically demonstrates that the choice of specific image-based features in visual communication matters for increasing digital visual engagement among Instagram users.


2019 ◽  
Vol 31 (5) ◽  
pp. 1252-1268 ◽  
Author(s):  
Jorge Vera-Martinez ◽  
Sidney Ornelas

PurposeProduct performance measurements have been used to explain other business performance variables. The purpose of this paper is to propose that, regarding Mexican consumers, the “comparison-based perceived attribute performance” (CAP) approach is a better predictor of outcomes, such as satisfaction, value and loyalty, compared with the traditional measurement of “non-comparison-based perceived attribute performance” (NCAP). These two forms of assessing attribute-level performance may be considered as different constructs.Design/methodology/approachUsing these two approaches, empirical tests were performed to attribute performance measurement and were conducted on products from two different categories: tequila and liquid dishwashing detergent. Regression analyses were performed using Mexican consumer samples ofn=295 andn=239, respectively.FindingsAs opposed to NCAP, CAP measurements yielded higher statistical levels of satisfaction, value and loyalty for both product categories. In the case of tequila, factor analysis indicated a clear separation between the two types of measurements, suggesting that they should be considered distinct constructs. However, this was not found for the other product category.Originality/valueCAP, which has better potential to predict outcomes than NCAP, could have relevant implications in brand positioning assessment and importance-performance analyses.


2020 ◽  
Vol 33 (3/4) ◽  
pp. 361-379
Author(s):  
Juan Manuel Bruno ◽  
Francisco J. Sarabia-Sanchez ◽  
Enrique Carlos Bianchi

PurposeThis study verifies the influence of the dimensions of corporate social responsibility (CSR) practices and consumer involvement on the identification of the individual with the company and the corporate reputation, moderated by the product category.Design/methodology/approachA covariance-based structural equation modelling is used to test the model, using a sample of 568 Argentine consumers. A multigroup analysis is employed to assess the moderating effect of the product category.FindingsCSR practices have heterogeneous influence based on their dimension, and this influence is moderated by the product category. Accordingly, environmental practices promote consumer identification with the company, whereas those economically oriented have a direct influence on reputation. In contrast, social practices contribute to reputation if they are connected to the business model.Research limitations/implicationsThe study is focussed on Argentina, analysing two product categories (laptops and financial services for final consumers) and using a large, but not strictly random, sample. In order to mainstream the results, it would be relevant to replicate the proposed model in other countries and with other product categories.Originality/valueIt provides information about the perception of consumers regarding the CSR practices from a multi-dimensional perspective, since they have an uneven effect on identification of consumer with the company and corporate reputation due to the moderating effect of the product category. The findings of this study may be relevant for managers of technology and banking service companies.


2015 ◽  
Vol 32 (3) ◽  
pp. 137-144 ◽  
Author(s):  
Yolande Piris ◽  
Nathalie Guibert

Purpose – This paper aims to apply intuition theory to clarify consumers’ assortment evaluations. For each decision process, this paper explores how perceptions of organization and variety influence consumers’ attitudes and purchase intentions. Design/methodology/approach – In total, 504 observations were collected across three product categories. Perceived choice, time and expertise in the product category provide proxies to distinguish between intuitive and deliberative systems. The intuitive system further consists of intuition based on either expertise or heuristics. Findings – It was revealed that distinct decision processes (deliberative, intuitive based on expertise and intuitive based on heuristics) affect the link between assortment perceptions and consumers’ assortment evaluations. Consumers’ evaluations in deliberative- and heuristic-based intuitive systems rely more on perceptions of organization than of variety; whereas intuitive judgments based on expertise depend almost equally on both perceptions. Research limitations/implications – Some limitations have to be underlined. The approximations used could be more precise and are subjective in nature. Moreover, the ordinary product categories that were studied might encourage more intuitive decisions by consumers. If so, the deliberative mode of thinking might have been underrepresented in this sample. Originality/value – Despite the limitations, this research is, to our knowledge, the first to explore the influence of intuition theory on ordinary shopping and in particular on assortment perception. As such, it contributes to a deeper understanding of this theory in the field.


2019 ◽  
Vol 36 (5) ◽  
pp. 647-674 ◽  
Author(s):  
Timo Mandler

Purpose Despite considerable investigations of the various outcomes of perceived brand globalness (PBG), the concept itself remains ambiguous, demanding further conceptual refinement. The purpose of this paper is to contribute to global branding literature by suggesting an extended conceptualization of PBG, and empirically testing a corresponding extended model of global brand effects, relative to the conventional operationalization. Design/methodology/approach An empirical study (n=907) involving 63 brands across eight different product categories provides new insights into the composition of global brand effects by explicitly discriminating between different facets of consumers’ brand globalness perceptions (i.e. perceived market reach (PMR), perceived standardization (PST) and global consumer culture positioning (GCCP)). Findings The results clearly show that effects associated with global brands are not exclusively positive. While PMR and GCCP have positive effects on consumers’ brand evaluations and attitudes, PST has a strong negative effect on the same outcomes. These effects apply to both domestic and foreign global brands and occur irrespective of the perceived level of risk associated with a given product category. Originality/value The results provide managers a clearer picture of the up- and downsides of brand globalness perceptions and urge future studies on global brands to incorporate constructs that account for facets beyond a brand’s market reach to capture the phenomenon holistically.


2015 ◽  
Vol 25 (2) ◽  
pp. 150-168 ◽  
Author(s):  
Ming-Chuan Pan ◽  
Chih-Ying Kuo ◽  
Ching-Ti Pan

Purpose – The purpose of this paper is to examine consumer reactions to product categories, online seller reputation, and brand name syllables. Design/methodology/approach – This paper uses four experimental designs to explore the seller reputation, product category, and brand name syllable effects in internet shopping. The authors chose sellers of (low/high) repute from Yahoo Mall. ANOVA is used to evaluate the results. Findings – Seller reputation moderates the effect of the brand name syllable level on purchase intention and product category moderates the effect of the brand name syllable level on purchase on internet (experiment 1). Consumers take the longest time to make purchasing decisions when buying credence goods or buying from sellers of low repute and that the response time mediates the moderating role of the product category (experiment 2) or reputation (experiment 3). Moreover, the effect of brand name syllable levels chosen/assigned by sellers of low repute is weakened for consumers with low (vs high) skepticism toward non-store shopping (experiment 4). Practical implications – This study is helpful to online sellers if they can identify their reputation, product category and those consumers have skepticism, they can create extra profit through brand name syllable practice. Originality/value – This paper extends the literature on consumers’ brand name syllable processing by identifying important moderators and probing into the decision process. The results allow us to substantiate prior research and suggest prescriptive strategies for internet retailers.


2017 ◽  
Vol 40 (7) ◽  
pp. 726-744
Author(s):  
Pilsik Choi

Purpose The purposes of this paper are to propose a different profitability metric (i.e. anchor category profits) at the category level based on the concept of anchor categories and to illustrate how such a metric can be calculated in field settings to offer a balanced view of profit structure from both the accounting and marketing perspectives. Design/methodology/approach First, the concept of anchor categories is developed drawing on anchor effects theory and automatic cognitive processing theory. Based on anchor categories, this paper proposes a formula for calculating anchor category profits. Using the data collected with a survey instrument, this paper calculates accounting profits and anchor category profits for two grocery stores. Findings The intra-store analysis of accounting profits and anchor category profits reveals that the two profit measures project different profit contribution patterns by product categories for each store. The inter-store analysis provides quite different, yet useful information about profit structures for the two grocery stores. Although the two stores are similar in terms of accounting profits, their anchor category profits show different pictures regarding profit contribution patters by product categories between the two stores, revealing that different categories attract customers to different stores. Practical/implications Comparing accounting profits and anchor category profits allows retail managers to identify traffic generator categories and cash generator categories, which helps retail managers develop more effective category management to increase storewide profits. Originality value This paper increases understanding of the relationship between product categories and store choice behavior by offering a theoretical rationale to explain why some product categories influence consumers’ store choice. This paper also proposes anchor category profits as a more implementation-friendly category-level profitability metric that combines accounting principles with consumers’ shopping trip planning behavior.


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