Imperfect certification and eco-labelling of products

2019 ◽  
Vol 12 (3) ◽  
pp. 288-314
Author(s):  
Charu Grover ◽  
Sangeeta Bansal
Keyword(s):  
Product Quality ◽  
Third Party ◽  
Certification Process ◽  
Content Type ◽  
Market Inefficiencies ◽  
Pooling Equilibrium ◽  
Welfare Implications ◽  
Intermediate Value ◽  
Separating Equilibrium

Purpose This paper aims to investigate the role of certification in providing information and reducing market inefficiencies when the “certification process is imperfect”. In the setting, eco-labels imperfectly signal environmental product quality to consumers where the error in the process of certification could be either Type 1 or Type 2 error. The paper examines firms' incentive to get certified, equilibrium quantities and profits. The authors use perfect Bayesian equilibrium concept for the analysis. They then examine conditions for separating and pooling equilibrium to exist and welfare implications of certification process. Design/methodology/approach The paper uses a vertical product differentiated model where firms are competing in quantities. Consumers are unable to observe the environmental quality of the product. To signal the product quality to consumers, firms may adopt certification by a third party. Using a framework where certification process is imperfect, the paper derives conditions for Perfect Bayesian separating and pooling equilibrium to exist. Findings The paper shows that the existence of separating and pooling equilibrium depends on the certification fee. A separating equilibrium, where one firm seeks certification and other firm does not seek certification exists for an intermediate value of certification fee. A pooling equilibrium, where both firms seek certification, exists only when the certification fee is sufficiently small. The paper shows conditions for the certification fee for which welfare will be higher under separating equilibrium as compared to pooling equilibrium and analyses welfare implications for subsidy policy for the certification fee. Originality/value The paper contributes to the literature by examining the role of labelling under imperfect certification.

Web-store image dimensions and online retail customer loyalty: investigating mediators and moderators

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pavleen Soni
Keyword(s):  
Customer Satisfaction ◽  
Product Quality ◽  
Customer Loyalty ◽  
Online Retail ◽  
Content Type ◽  
Design Elements ◽  
Purchase Frequency ◽  
Store Design ◽  
Serial Mediation

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.

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
Keyword(s):  
Product Quality ◽  
Field Study ◽  
Underlying Mechanism ◽  
Perceived Quality ◽  
Societal Implications ◽  
Gift Giving ◽  
Content Type ◽  
Non Profit ◽  
Product Categories

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.

scholarly journals The role of interaction for corporate sustainability

IMP Journal ◽  
2018 ◽  
Vol 12 (1) ◽  
pp. 148-170 ◽  
Author(s):  
Sigurd Sagen Vildåsen ◽  
Malena Ingemansson Havenvid
Keyword(s):  
Plastic Material ◽  
Corporate Sustainability ◽  
Third Party ◽  
Business Networks ◽  
Longitudinal Case Study ◽  
Organizational Relationships ◽  
Content Type ◽  
Stakeholder Relationships ◽  
Critical Knowledge

Purpose Most scholars acknowledge the role of firm-stakeholder relationship for enabling corporate sustainability (CS), but existing literature tends to apply a superficial understanding of interaction. Thus, the purpose of this paper is to advance knowledge by challenging classical stakeholder theory with fundamental insights from the IMP perspective, which in turn leads to a deeper conceptualization of interactive CS. Design/methodology/approach A typology framework is developed through an abductive research design grounded in the concepts of actors, resources, and activities. The authors illustrate the potential of the framework through a longitudinal case study. The empirical case revolves around an initiative for recycling of plastic material in a partly beforehand established supply chain, and the study reveals three main findings. Findings First, recycling solutions can result in major technological challenges. For example, using recycled material can jeopardize industrial quality standards. Second, third-party stakeholders represent critical knowledge and competence that can remedy technological challenges. Finally, R&D projects are important means for developing firm-stakeholder relationships. Research limitations/implications The paper introduces IMP concepts to the CS debate, which can illuminate the emerging literature on tensions and paradoxes related to CS phenomena. Further research is needed on the role of non-business actors as capacity generators for social and environmental change in traditional business networks. Practical implications The proposed framework can be used to analyze why some stakeholders (individuals and groups) turn into contributing actors in inter-organizational relationships, while others remain latent. Originality/value This paper illustrates the usefulness of actor bonds, resource ties and activity links as explanatory concepts. Moreover, developed relationships in terms of collaboration and networks represent a capacity to change, which is overlooked in current CS debates.

scholarly journals Reverse resource exchanges in service supply chains: the case of returnable transport packaging

2016 ◽  
Vol 21 (3) ◽  
pp. 381-397 ◽  
Author(s):  
Kostas Selviaridis ◽  
Aristides Matopoulos ◽  
Leslie Thomas Szamosi ◽  
Alexandros Psychogios
Keyword(s):  
Resource Dependence ◽  
Single Case ◽  
Resource Dependence Theory ◽  
Third Party ◽  
Content Type ◽  
Contractual Governance ◽  
Contractual Agreements ◽  
Service Supply Chains

Purpose The purpose of this paper is to understand how reverse resource exchanges and resource dependencies are managed in the service supply chain (SSC) of returnable transport packaging (RTP). Design/methodology/approach A single case study was conducted in the context of automotive logistics focusing on the RTP SSC. Data were collected through 16 interviews, primarily with managers of a logistics service provider (LSP) and document analysis of contractual agreements with key customers of the packaging service. Findings Resource dependencies among actors in the SSC result from the importance of the RTP for the customer’s production processes, the competition among users for RTP and the negative implications of the temporary unavailability of RTP for customers and the LSP (in terms of service performance). Amongst other things, the LSP is dependent on its customers and third-party users (e.g. the customer’s suppliers) for the timely return of package resources. The role of inter-firm integration and collaboration, formal contracts as well as customers’ power and influence over third-party RTP users are stressed as key mechanisms for managing LSP’s resource dependencies. Research limitations/implications A resource dependence theory (RDT) lens is used to analyse how reverse resource exchanges and associated resource dependencies in SSCs are managed, thus complementing the existing SSC literature emphasising the bi-directionality of resource flows. The study also extends the recent SSC literature stressing the role of contracting by empirically demonstrating how formal contracts can be mobilised to explicate resource dependencies and to specify, and regulate, reverse exchanges in the SSC. Practical implications The research suggests that logistics providers can effectively manage their resource dependencies and regulate reverse exchanges in the SSC by deploying contractual governance mechanisms and leveraging their customers’ influence over third-party RTP users. Originality/value The study is novel in its application of RDT, which enhances our understanding of the management of reverse exchanges and resource dependencies in SSCs.

Buy domestic or foreign brands? The moderating roles of decision focus and product quality

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sherry Xueer Yu ◽  
Guang Zhou ◽  
Jing Huang
Keyword(s):  
Developing Countries ◽  
Product Quality ◽  
Consumer Preference ◽  
Moderating Effects ◽  
Content Type ◽  
Foreign Brand ◽  
Foreign Brands ◽  
General Preferences ◽  
Practical Implications

PurposeThis article sought to explore the effect of brand origin on consumer preference and examine the moderating effects of decision focus (buying for self vs buying for others) and product quality.Design/methodology/approachThe authors conducted two studies to test our hypotheses. In Study 1, the authors explored consumers' general preferences for domestic and foreign brands. Based on the evidence, Study 2 further explored the moderating roles of decision focus and product quality.FindingsIn general, consumers in developing countries prefer foreign brands. The effect can be moderated by the decision focus that this preference will be more obvious when consumers buy for others than when they buy for themselves. Product quality can also moderate the role of decision focus; in other words, consumers' preference for foreign brand when buying for others will be stronger when the product quality is low than when the product quality is high.Practical implicationsForeign brands have a natural appeal to local consumers in developing countries. Moreover, foreign brands can also invoke consumers' awareness of buying for others (such as giving gifts) to boost sales. Domestic brands are at a disadvantage comparing to foreign brands, but they can increase their attractiveness by invoking consumers' awareness of rewarding themselves. In addition, domestic brands need to improve product quality to fundamentally improve their competitiveness.Originality/valueThe research contributed to literature by combining decision focus and product quality in studying consumer preference for domestic and foreign brands from the perspective of construal level theory, which provides valuable insights in the field of international marketing and consumer behavior.

Relationship marketing and third-party logistics: evidence from hotel industry

2020 ◽  
Vol 3 (3) ◽  
pp. 371-393 ◽  
Author(s):  
Sajjida Reza ◽  
Muhammad Shujaat Mubarik ◽  
Navaz Naghavi ◽  
Raja Rub Nawaz
Keyword(s):  
Relationship Marketing ◽  
Service Providers ◽  
Hotel Industry ◽  
Partial Least Square ◽  
Third Party ◽  
Equation Modeling ◽  
Third Party Logistics ◽  
Content Type ◽  
Specific Investment

PurposeThis study examines the outsourcing criteria prevalent in the Hotel industry of Pakistan. In doing so, the study investigates the role of trust in the association between relationship marketing dimensions—communication, opportunistic behavior, reputation, satisfactory prior outcomes and specific investment—and third-party logistics provider’s (3PL) selection.Design/methodology/approachUsing a close-ended questionnaire, data were collected from 97 hotels of various categories operating in Pakistan and involved in 3PL outsourcing. Partial Least Square–Structural Equation Modeling was employed to estimate the modeled relationships.FindingsWith a high predictive relevance of the model, communication, satisfactory prior outcome and reputation were found to have a significant effect on the trust, whereas the results showed a significant mediating role of trust in the association between communication, reputation and 3PL provider’s selection.Research limitations/implicationsThe study uses static data from selected firms and cannot be used to analyze behavior over a period of time. Hence, a generalization of results should be made carefully.Practical implicationsFindings imply that for fully capitalizing on the benefits by virtue of their prospective relationship, the managers must streamline their processes and activities according to path directions that endorse a higher degree of trust in their service providers and establish an effective system of communications interconnecting their mutual goals and objectives.Originality/valueThe outcome of the research study illustrated the perceptions of the local businesses with regards to the 3PL service provider(s) selection via the establishment of trust.

Graduate identity development in South Africa

2015 ◽  
Vol 30 (3) ◽  
pp. 304-319 ◽  
Author(s):  
Ilka Dunne ◽  
Anita Bosch
Keyword(s):  
South Africa ◽  
Identity Development ◽  
Professional Identity ◽  
Identity Formation ◽  
South African ◽  
Financial Institution ◽  
Third Party ◽  
Content Type ◽  
Insight Into

Purpose – The purpose of this paper is to focus on the misunderstandings that hamper the graduate identity development process of black South African graduates in the first year of work. The authors introduce the role of an independent mediator in supporting identity development in a graduate development programme (GDP). The independent mediator mediates between graduate and manager when misunderstandings occur that inhibit the warranting process during professional identity development. Design/methodology/approach – In seeking to understand the graduate transition from student to professional, the authors used identity studies as the foundation from which to track a group of 21 graduates on a year-long GDP, in a financial institution in Johannesburg, South Africa. A model of emergent graduate identity was utilised to gain insight into the warranting process and associated behaviours that graduates employ in their interactions with others in the workplace. Findings – As warranting is based on people’s own assumptions and beliefs about a particular situation or role, misunderstandings can occur during the warranting process when graduates are determining their professional identity, and managers are either affirming of disaffirming this identity. These misunderstandings were exacerbated by the fact that the graduates were often South African multi-cultural, first-generation professionals who lacked insight into and experience of corporate dynamics, this impacted on how they found their place in the organisation. Both graduates and managers were often not equipped to deal with cultural, racial, and other differences. When the graduate programme manager stepped in to play the additional role of independent mediator, helping to mediate misinterpretations during the identity formation process, the negative impact of misunderstandings was lessened, and graduates transitioned to a professional identity with greater ease. Managers also learned about managing multi-cultural individuals and their own, often limiting, experiences and worldviews. Practical implications – This highlights the value of a third-party intervention in graduate identity transitions, particularly in contexts where the graduate has little or no experience of what it means to be professional, and where managers are not equipped to deal with people who come from backgrounds that differ vastly from their own. Originality/value – The role of a third-party in shaping the identities of graduates during the identity warranting process, referred to as the independent mediator in this paper, has not been presented in research before. Studies of this nature would give us insight into how best to support graduate identity development and improve the design of GDPs.

scholarly journals The role of TPLs in innovative logistics solutions in importation

2018 ◽  
Vol 15 (1) ◽  
pp. 73-91
Author(s):  
Alessandra Vitorino Razzera ◽  
Marcelo André Machado
Keyword(s):  
Service Providers ◽  
Third Party ◽  
Third Party Logistics ◽  
Content Type ◽  
Logistics Service Providers ◽  
Multiple Case ◽  
The Subject ◽  
Mind Set

Purpose The purpose of this paper is to investigate the role of third-party logistics providers (TPLs) in providing innovative logistics solutions for Brazilian importations. Design/methodology/approach A multiple case study has been conducted in which four logistics service providers are interviewed on the topic of innovation in importation logistics. The collected data (interviews, brochures and presentations) were triangulated and analyzed. Findings The collected data highlight the integrating role of TPLs in providing innovative logistics solutions of the technological nature, in addition to drivers, which involve communication, trust, logistics and institutional actions. Research limitations/implications This study, instead of focusing on procedural issues, intended to focus on two important theoretical and practical drivers: innovation in the importation process and strengthening of intangible factors. It is known that trading conditions and geographical proximity have an impact in importation, but they have not been discussed here because of the subject delimitation of the present study. Regarding the implications of the present study, no specific theoretical reference has been found on the subject in terms of the importation process but is rather related to information technology, which is then presented. Practical implications This study focuses on the fundamental role of TPLs in the development of innovative logistics solutions in importation. Social implications The fundamental role of TPLs in the development of innovative logistics solutions in importation is based on trust and relationship, internal and external to the organization. Originality/value This study, instead of focusing on procedural issues, intends to focus on two important theoretical and practical drivers – innovation in the importation process and strengthening of intangible factors – suggesting that a change of mind-set and a differentiated background in importation logistics are developed by TPLs.

Client opportunism in agency-client relationship: the role of information asymmetry, agency response and calculative commitment

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kambalor Ramakrishna Jayasimha
Keyword(s):  
Information Asymmetry ◽  
Third Party ◽  
Content Type ◽  
Calculative Commitment ◽  
Past Behavior ◽  
Client Relationship ◽  
Informational Cues ◽  
Selection Stage ◽  
Organizational Mechanisms

Purpose The focus is on how agencies can mitigate client opportunism in an agency-client relationship (ACR), particularly during the agency selection stage involving a pitch. This paper aims to empirically investigate the moderating effects of organizational mechanisms (particularly informational cues) and the agency’s past behavior on client opportunism. In a moderated moderation, this paper tests the effects of calculative commitment, informational cue and agency’s past behavior on the main effect. Design/methodology/approach The research is in the context of ACR involving a pitch at the agency selection stage. A mixed-method approach is used. In depth interviews with senior level executives were used to design the experimental vignettes. The main study uses experimental vignettes in a survey. Findings The study finds the prevalence of client opportunism during the pitch. The study reveals a significant relationship between information asymmetry and client opportunism. The findings of the study support the effectiveness of organizational mechanisms in mitigating client opportunism. The findings indicate that a proactive approach such as using informational cues mitigates client opportunism as it signals to the client that the agency cares for its intellectual property. Clients also take a cue from agencies past behavior. Third-party complaints and voice complaint deters client opportunism. Moderated moderation reveals that the client’s calculative commitment impacts client opportunism. Originality/value The study is novel in empirically examining client opportunism during the agency selection stage involving a pitch. The study re-emphasizes that information asymmetry is the primary reason for client opportunism in ACR at the agency selection stage. The role of organizational mechanism and agency response in mitigating client opportunism is a welcome addition. Moderated moderation effects involving calculative commitment is a novel addition.

The impact of country of origin on consumers' pricing judgments in ecommerce settings

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Emi Moriuchi
Keyword(s):  
Positive Impact ◽  
Country Of Origin ◽  
Third Party ◽  
Lower Price ◽  
Limited Attention ◽  
Research Approach ◽  
Content Type ◽  
Willingness To Purchase ◽  
The Impact

PurposeThe purpose of this paper is to assess the impact of country-of-origin (COO) cues and pricing perspective based on the third-party seller's name, intermediary, on consumers' purchasing decisions on e-commerce sites. A model was proposed to investigate consumers' perception toward sellers' online reputation, the mediating role of trust between the reputation of third-party sellers and attitude toward e-commerce as an intermediary, and attitude toward third-party sellers. In addition, this study also looks at the pricing threshold of consumers who are willing to buy from a third-party seller that has a negative COO cue, which is an area that has received limited attention in e-commerce studies.Design/methodology/approachThe paper opted for an experimental study using survey data gathered from general American consumers. Two studies were conducted. One hundred seventy surveys were gathered for study 1, and 171 surveys were gathered for study 2. The two studies had two product snippets which showed an Amazon product page with a list of third-party sellers. For study 2, all variables were kept the same – reviews and ratings for both products and sellers, delivery time, descriptions, e-commerce as an intermediary and brand of a bag – except for the price.FindingsThe findings showed that consumers' perceived reputation of a third-party seller has a positive impact on their attitude toward the seller and toward the e-commerce intermediary. In addition, the role of a positive COO influences attitudes and intentions. However, this influence is moderated by price when price is noticeably higher when compared to an alternative option provided by a seller from a country with a lower COO evaluation. This study suggests that the benefits of a positive COO diminish when a seller with a lower COO evaluation is able to provide a lower price for the product. In study 1, the results show that positive COO trumps negative COO. In study 2, the result shows that consumers lean toward a lower-price product and disregard their evaluation toward the COO. Furthermore, in study 2, results show that in order for the pricing to offset the negative COO attributes of a third-party seller, the price needs to be within 22–30% lower than the American seller's product pricing.Research limitations/implicationsWith the chosen research approach, the research results may lack generalizability for the other markets (e.g. Asian consumer market). Therefore, researchers are encouraged to test the proposed propositions further.Originality/valueThis study highlights the implications of COO cues such as sellers' names and how they impact consumers' willingness to purchase a product. The second study investigates consumers' willingness to purchase when the pricing for a product sold by a negative COO seller versus a positive COO seller is different in an e-commerce environment. In addition, the second study determines that the role of trust has more impact on consumers' attitude toward a third-party seller than it has on their attitude toward the e-commerce intermediary.

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