scholarly journals The hospitality franchise purchase decision making process

2016 ◽  
Vol 28 (5) ◽  
pp. 1009-1025 ◽  
Author(s):  
Ruth M.W. Yeung ◽  
Maureen Brookes ◽  
Levent Altinay

Purpose The purpose of this study is to explore the hospitality franchise purchase decision-making process undertaken by franchisees in Macau as an emerging tourism destination and the role of national culture on purchasing a franchise brand and selecting a potential franchisor. Design/methodology/approach Semi-structured in-depth interviews with 18 franchisees in Macau, who purchased international and domestic hospitality franchise brands, were conducted to understand the feelings, attitudes and motivation of franchisees toward purchasing a hospitality franchise. Findings The study reveals that national culture can play an important role in franchisees’ decision-making process. Personal networks of friends and family (guanxi) are very influential in introducing and steering aspiring entrepreneurs toward franchising as an option to realize their ambitions, although there may be some limitations to franchisees with this approach. Guanxi was also found to be particularly relevant during negotiations and franchisees’ post-purchase reviews. Practical implications International franchisors should understand the importance of guanxi at different stages of the franchisees’ decision-making process. Franchisees should realize how a reliance on guanxi might negatively affect their efforts to undertake sufficient research to thoroughly evaluate the franchisor offer before contract signature. Originality/value A comprehensive hospitality franchisee decision-making purchase framework is developed, which includes the cultural context and cultural values. Guanxi, in particular, affects the franchisee decision-making process.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Srabanti Mukherjee ◽  
Swagato Chatterjee

PurposeThe purpose of this research is to propose and validate a theoretical framework explaining web-rooming and showrooming as a multi-stage decision-making process. The authors have used consumer purchase decision-making theories to propose a model that identifies showrooming and webrooming as a combination of two decisions, channel choice during information search and channel choice during actual purchase. Further, the authors explored how various antecedents of showrooming and webrooming have differential effects on various stages of a purchase decision-making process and how product type moderates the relationships.Design/methodology/approachThe authors have conducted empirical research, whereby 243 responses were obtained from a cross-sectional survey. The authors have used structural equation modeling and multiple regression analysis to validate our theoretical model.FindingsWebrooming or showrooming is a multi-stage decision-making process for the consumers. First, consumers decide whether to search online or offline and then whether to buy online and offline. Different individual, purchase context-related and channel related factors impact these decisions. Product type governs which variables will be more important than others.Originality/valueThe research looks to enhance the understanding of the consumer's decision-making process during showrooming and webrooming while also helping retailers design and implement appropriate strategies that could affect consumers during information search and actual purchase.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jung-Hwan Kim ◽  
Minjeong Kim ◽  
Jungmin Yoo ◽  
Minjung Park

PurposeThe purpose of the study is to investigate how mental imagery evoked from sensory in-store experience influences consumer anticipatory emotion, perceived ownership and decision satisfaction which eventually impact positive consumer responses such as behavioural intent. In this study, gender difference is proposed as a moderator to completely understand the role of mental imagery in the in-store decision-making process.Design/methodology/approachUsing a market research agency in South Korea, an online survey was employed to collect data. A total of 455 useable respondents (men = 224 and women = 231) largely living in the two most populous provinces in South Korea (i.e. Seoul and Gyeonggi provinces) completed the survey. A number of path analyses were conducted to test hypotheses.FindingsThe results of the study showed that mental imagery evoked from sensory product experience played a critical part in facilitating the consumer decision-making process by influencing anticipatory emotion and perceived ownership. The relationship among anticipatory emotion, perceived ownership, decision satisfaction and behavioural intent was significant except for the relationship between perceived ownership and behavioural intent. This study further indicated that the way mental imagery influences the in-store decision-making process differs between men and women.Originality/valueThe effect of mental imagery in a physical retail context is largely ignored. This study addressed the crucial role of mental imagery in a physical apparel retail setting and examined its impact on consumer decision-making processes. By exploring how to enhance consumers' in-store sensory shopping experiences through mental imagery to influence their positive shopping outcomes, this study offers vital insights into how retailers operating physical stores can successfully utilize their stores.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maqsood Ahmad ◽  
Syed Zulfiqar Ali Shah ◽  
Yasar Abbass

PurposeThis article aims to clarify the mechanism by which heuristic-driven biases influence the entrepreneurial strategic decision-making in an emerging economy.Design/methodology/approachEntrepreneurs' heuristic-driven biases have been measured using a questionnaire, comprising numerous items, including indicators of entrepreneurial strategic decision-making. To examine the relationship between heuristic-driven biases and entrepreneurial strategic decision-making process, a 5-point Likert scale questionnaire has been used to collect data from the sample of 169 entrepreneurs who operate in small- and medium-sized enterprises (SMEs). The collected data were analyzed using SPSS and Amos graphics software. Hypotheses were tested using structural equation modeling (SEM) technique.FindingsThe article provides empirical insights into the relationship between heuristic-driven biases and entrepreneurial strategic decision-making. The results suggest that heuristic-driven biases (anchoring and adjustment, representativeness, availability and overconfidence) have a markedly negative influence on the strategic decisions made by entrepreneurs in emerging markets. It means that heuristic-driven biases can impair the quality of the entrepreneurial strategic decision-making process.Practical implicationsThe article encourages entrepreneurs to avoid relying on cognitive heuristics or their feelings when making strategic decisions. It provides awareness and understanding of heuristic-driven biases in entrepreneurial strategic decisions, which could be very useful for business actors such as entrepreneurs, managers and entire organizations. Understanding regarding the role of heuristic-driven biases in entrepreneurial strategic decisions may help entrepreneurs to improve the quality of their decision-making. They can improve the quality of their decision-making by recognizing their behavioral biases and errors of judgment, to which we are all prone, resulting in a more appropriate selection of entrepreneurial opportunities.Originality/valueThe current study is the first to focus on links between heuristic-driven bias and the entrepreneurial strategic decision-making in Pakistan—an emerging economy. This article enhanced the understanding of the role that heuristic-driven bias plays in the entrepreneurial strategic decisions and more importantly, it went some way toward enhancing understanding of behavioral aspects and their influence on entrepreneurial strategic decision-making in an emerging market. It also adds to the literature in the area of entrepreneurial management specifically the role of heuristics in entrepreneurial strategic decision-making; this field is in its initial stage, even in developed countries, while, in developing countries, little work has been done.


2015 ◽  
Vol 11 (27) ◽  
pp. 185 ◽  
Author(s):  
Suharyanti Suharyanti ◽  
Bambang Sukma Wijaya ◽  
Melida Rostika

This paper examines the role of country-of-origin image (COO image) values in the process of purchase decision making of big motorcycle consumers in Indonesia. Referring to the COO image values such as Authenticity, Differentiation, Quality Standard and Expertise, as well as the elements of purchase decision making process such as Need Recognition, Information Search, Evaluation of Alternatives, Purchase Decision and Post Purchase Decision, researchers conducted in-depth interviews to five Triumph big motorcycle consumers. The results show that the authenticity of the British-made product is the main consideration of consumers both in searching for information and in recognizing the need of big motorcycles. The competitive advantages of product that make it different from other products is the consideration in evaluating the brands, while product quality has the role in stimulating the purchase decision and post purchase actions, in which also strengthened by the perception towards the British-expertise in producing big motorcycles. This research is very beneficial to big motorcycle brands in understanding the mindset of Indonesian consumers.


2018 ◽  
Vol 41 (1) ◽  
pp. 2-28 ◽  
Author(s):  
Satyanarayana Parayitam ◽  
Chris Papenhausen

Purpose This paper aims to investigate the effect of cooperative conflict management on agreement-seeking behavior, agreement-seeking behavior on decision outcomes, moderating role of competence-based trust on the relationship between agreement-seeking behavior and decision outcomes, and mediating role of agreement-seeking behavior between cooperative conflict management and decision outcomes. Design/methodology/approach Using a structured survey instrument, this paper gathered data from 348 students enrolled in a strategic management capstone course that features strategic decision-making in a simulated business strategy game. The data from 94 teams were collected from the student population using a carefully administered instrument. The data were aggregated after running the inter-rater agreement test and the analyzed to test the hypotheses. Findings The results from the hierarchical regression of the complex moderated mediation model reveal that cooperative conflict management is positively related to agreement-seeking behavior, and agreement-seeking behavior mediates the relationship between cooperative conflict management and decision outcomes. The results also suggest that competence-based trust acts as a moderator in the relationship between agreement-seeking behavior and decision quality; agreement-seeking behavior and team effectiveness, and agreement-seeking behavior and decision commitment. Results also support mediation of agreement-seeking behavior between cooperative conflict management and decision outcomes. Research limitations/implications The present research is based on self-report measures, and hence, the limitations of social desirability bias and common method bias are inherent. However, adequate care is taken to minimize these limitations. The research has implications for the strategic decision-making process literature. Practical implications In addition to the strategic management literature, this study contributes to practicing managers. The study suggests that competence-based trust plays a vital role in decision effectiveness. Administrators need to select the members in the decision-making process who have competence-based trust on one another and engage in agreement-seeking behavior. Social implications The findings from the study help in creating a fruitful social environment in organizations. Originality/value This study provides new insights about the previously unknown effects of cooperative conflict management and agreement-seeking behavior in strategic decision-making process.


2014 ◽  
Vol 31 (1) ◽  
pp. 27-38 ◽  
Author(s):  
Tendai Chikweche ◽  
Richard Fletcher

Purpose – The main purpose of this paper is to investigate the factors that influence the growing African middle class (middle of pyramid; MOP) consumers' purchase decision making. Design/methodology/approach – A mixed qualitative research method approach comprising in-depth interviews was used to collect data from middle of pyramid consumers in four countries. Secondary data analysis was used to complement the interviews. Findings – Key findings include the identification of three key intertwined influencers of branding, peer and social networks and aesthetics and product performance. Other influencers include technology and new products, distribution channels and family. Research limitations/implications – The focus on four countries has the potential to minimize the generalizability of findings from the study although the four countries used have a significant amount of middle class consumers in Africa. However, this does not detract from the findings of the study but actually provides a basis for further research into other emerging markets. Practical implications – Findings from the study provide practical insights for marketing managers who intend to serve this market, key of which are branding, use of social networks, online distribution and maximising technology. Originality/value – The paper expands the research agenda of the relatively new area of the MOP. By focusing on the MOP in Africa, the research expands existing knowledge beyond previous areas of focus of middle class studies that focus on China and India.


2020 ◽  
Vol 75 (3) ◽  
pp. 559-574 ◽  
Author(s):  
Ahmed Kamassi ◽  
Noor Hazilah Abd Manaf ◽  
Azura Omar

Purpose This paper aims to address and identify the major stakeholders in the medical tourism industry, based on their participation in medical tourism activities and their support for medical tourism development. Design/methodology/approach This paper systematically reviews the content of medical tourism studies from literature to identify key stakeholders and address the roles they play in the medical tourism industry. Findings This study shows that the key stakeholders in the medical tourism industry are eight, namely, medical tourists, health-care providers, government agencies, facilitators, accreditation and credentialing bodies, health-care marketers, insurance providers and infrastructure and facilities. These stakeholders strongly influence medical tourists’ decision-making process in seeking medical treatment abroad. Besides, a successful medical tourism development depends greatly on the excellent partnership between all stakeholders. Practical implications This paper sheds light on the crucial role of these stakeholders that can be an important consideration in medical tourists’ decision-making process and industry growth. The study can facilitate policymakers in designing and developing policies to improve medical tourism practices. Originality/value This paper expands the knowledge about medical tourism literature by identifying and explaining the significant role of each stakeholder in the industry. The results of this paper are quite revealing to all practitioners in terms of the potential strategies and medical tourism growth. The study establishes a foundation for future medical tourism research in the rapidly growing industry.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fariborz Rahimnia ◽  
Homa Molavi

PurposeIn recent years, rapid changes in the economic situation and high levels of competition have increased the need for innovation in order to gain success. In such circumstances, organizational strategists are considered as critical in determining the success or failure of organizations. Using innovation in various aspects of organizational operations is the most important factor to achieve sustainable competitive advantages in industry. As a result, analyzing the effective factors involved in promoting the efficiency of innovative activities in the organization and ways of achieving it are of utmost importance. Thus, this paper examines the relationship between communication and innovation performance with respect to the intermediary role of strategic decision-making process speed.Design/methodology/approachThe present study has used quantitative methodology and questionnaire to collect data from 450 managers and members who are involved in the decision-making process in 150 companies operating in the food-industry sector. Data analysis was done by using structural equation modeling and AMOS software.FindingsThe results of the data analysis suggest that communication and strategic decision-making speed possess a significant positive impact on innovation performance. Also, strategic decision-making speed has sufficiently played the intermediary role between communication and innovation performance.Originality/valueThis survey specifies the effects of communication on the success of making fast strategic decision and innovation performance which aid Iranian food companies to tackle one of the managerial challenges: postponing strategic decisions due to lack of efficient communication to get information. In addition, to the best of the authors' knowledge, this essay is a first in Iran.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Eonyou Shin ◽  
Telin Chung ◽  
Mary Lynn Damhorst

PurposeThe purpose of the current study is to explore how valenced fit reviews affect the consumer decision-making process during online apparel shopping.Design/methodology/approachA single factor (valence of fit review) within-subject experimental design was employed to examine how the valenced fit review (negative vs positive) affects the consumer online purchase decision process. A mock website was created to simulate the online shopping environment through four steps for developing a stimulus website for the main study. The data were analyzed using repeated multivariate analysis of variance and structural equation modeling.FindingsA total of 418 female consumers completed an online self-administrated survey. Results showed that positive fit review was more compelling than negative fit review for female consumers when they like the apparel product. Two aspects of information credibility (review and site credibility) and confidence in purchase decision evoked by both fit reviews and overall product information were significant determinants of the consumer purchase decision process in increasing consumers’ future purchase intentions through attitude to the online retailer.Originality/valueThe current study was an attempt to fill the gap in knowledge regarding the crucial role of fit reviews in apparel product purchase decisions in an online context. This study confirmed the type of fit reviews that would be influential on female consumers’ online purchase decision-making process for apparel products when they liked the apparel product, supporting positive confirmation bias from the information processing point of view. This study contributed to the importance of the two concepts (i.e. credibility and confidence in the purchase decision) in online information processing and purchase decision-making process.


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