scholarly journals The challenge of remanufactured products: the role of returns policy and channel structure to reduce consumers' perceived risk

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ilenia Confente ◽  
Ivan Russo ◽  
Simone Peinkofer ◽  
Robert Frankel
Keyword(s):  
Perceived Risk ◽  
Purchase Intention ◽  
New Products ◽  
Distribution Channel ◽  
Channel Structure ◽  
Chain Management ◽  
Content Type ◽  
Return Policy ◽  
Returns Policy ◽  
Brick And Mortar

PurposeWhile remanufactured products represent an increasingly researched phenomenon in the literature, not much is known about consumers' understanding and acceptance of such products. This study explores this issue in the context of the theory of perceived risk (TPR), investigating return policy leniency and distribution channel choice as potential factors to foster remanufactured products' sales.Design/methodology/approachThis research utilizes an experimental design composed of a pre-test and a scenario-based main experiment to explore how return policy leniency might mitigate consumers' perceived risk and how their related purchase intention differs across two types of retail distribution channel structures (i.e. brick-and-mortar vs. online).FindingsThe investigation into the efficacy of return policy leniency within two retail distribution channel settings (i.e. brick-and-mortar vs. online) illustrates that providing a lenient return policy is an effective “cue” in increasing consumer purchase intention for remanufactured products. While prior literature has established that consumers value return policy leniency for new products, the authors provide empirical evidence that this preference also applies to remanufactured products. Notably, that return policy preference holds true in both channel settings (i.e. brick-and-mortar vs. online) under consideration. Additionally, and contrary to the authors’ predictions, consumers perceived remanufactured products sold via both channel settings as equally risky, thus highlighting that both are appropriate distribution channels for remanufactured products. Finally, while research on new products provides some initial guidance on consumer perceptions of quality and risk, the study provides empirical evidence into the difference of perceived risk with regard to new versus remanufactured products.Originality/valueBy employing the TPR, this research explored the role played by two supply chain management related factors (returns policy and channel structure) in reducing consumer's perceived risk and increasing purchase intention. In doing so, this study answers the call for more consumer-based supply chain management research in a controlled experimental research setting.

When is transparent packaging beneficial?

2020 ◽  
Vol 48 (8) ◽  
pp. 781-801 ◽  
Author(s):  
Ouidade Sabri ◽  
Hai Van Doan ◽  
Faten Malek ◽  
Hager Bachouche
Keyword(s):  
Perceived Risk ◽  
Purchase Intention ◽  
Product Category ◽  
Perceived Quality ◽  
Content Type ◽  
Mediating Role ◽  
High Level ◽  
Positive Effect ◽  
Moderating Role

PurposeThe purpose of this paper is to demonstrate that the positive effect of packaging transparency on purchase intention is moderated by product quality risk (PQR) associated with the product category.Design/methodology/approachTwo separate experiments were conducted. Study 1 was designed to test the mediating role of perceived quality to account for the positive effect of transparency on purchase intention. Two types of packaging (opaque vs transparent) for a product associated with a high level of PQR were examined. Study 2 extended the findings by introducing the moderating role of PQR. A 2 (type of packaging: opaque vs transparent)*2 (PQR: low vs high) between subjects design was used.FindingsThe moderating role of the product PQR level is established: transparent packaging improves the product perceived quality and brand purchase intention when the product is associated with a high PQR, whereas there is no such preference for transparent packaging when the product is associated with a low PQR.Practical implicationsThe results offer insights to better understand the potential gains from adopting transparent packaging. If a brand manager's main goals are to develop sales, costly investments in research and development of transparent packaging appear to be fruitful only for products associated with high PQR.Originality/valueThis paper contributes to packaging, cue utilisation and perceived risk literatures by evidencing the moderating role of PQR to explain the positive effect of transparency on purchase intention.

scholarly journals Design awareness and purchase intention: an item response theory approach

2014 ◽  
Vol 27 (1) ◽  
pp. 138-155 ◽  
Author(s):  
Ana M. Arboleda ◽  
Julio C. Alonso
Keyword(s):  
Item Response Theory ◽  
Item Response ◽  
Purchase Intention ◽  
New Products ◽  
Product Category ◽  
Two Dimensions ◽  
Theory Approach ◽  
Theoretical Discussion ◽  
Response Theory ◽  
Content Type

Purpose The purpose of this paper is to evaluate the effect of design awareness on consumers’ purchase intention. Design/methodology/approach The experiment consisted of showing a new beer package design to 185 participants who evaluated it using a self‐administered questionnaire. Findings Using an Item Response Theory approach, results show that there are two dimensions of consumer design awareness: basic design and differential design. These findings are, to some extent, consistent with the theoretical discussion within design literature. Moreover, a multiple regression model estimates the effect of both dimensions on consumers’ purchase intention, and the paper concludes that both dimensions have a similar effect (p<0.05). The sign of the effects are consistent with the theoretical discussion. Practical implications The design of new products must consider attributes associated to the basic and practical use of a product as well as those attributes that mark a comparative difference in the product category. Originality/value This paper conceptually and empirically combines two different areas of knowledge (design and consumer behavior) under the design awareness construct. This concept evaluates consumers’ perceptions about new products, facilitating more accurate decisions in cases of innovation.

The effect of perceived risk dimensions on purchase intention

2015 ◽  
Vol 30 (4) ◽  
pp. 218-230 ◽  
Author(s):  
Ramulu Bhukya ◽  
Sapna Singh
Keyword(s):  
Perceived Risk ◽  
Purchase Intention ◽  
Financial Risk ◽  
Value Proposition ◽  
Private Labels ◽  
Market Place ◽  
Content Type ◽  
Physical Risk ◽  
Risk Dimensions ◽  
Psychological Risk

Purpose – The purpose of this paper is to examine the dimensions of perceived risk, which influence consumers’ purchase intention toward the retailers’ private labels. Based upon the previous literature, majorly four dimensions of the perceived risk have been considered for the study. These include – perceived functional risk, perceived financial risk, perceived physical risk and perceived psychological risk. Design/methodology/approach – Data have been collected by proceeding with mall intercept method and approached shoppers with the questionnaire at the outlets of large Indian retailers – Reliance retail, Aditya Birla’s More, Big Bazaar and Spencer’s. A total of 352 valid questionnaires were obtained, wherein responses were recorded on Likert-type scale anchoring five-points where 1 indicates strongly disagree and 5 indicates strongly agree. Then, the analysis was carried out by using Exploratory Factor Analysis and Multiple Regression Analysis. Findings – Findings of this study revealed that perceived functional risk, perceived financial risk, perceived physical risk and perceived psychological risk have the direct negative and significant effects on consumers’ intention to purchase retailers’ private labels. Thus, all the hypotheses were accepted and all the findings of this study were in line with previous studies. Research limitations/implications – A limited set of product categories and brands were analyzed. Practical implications – This study is of great interest for large retailers who wish to increase their private labels’ value proposition, with an in-depth understanding of these risks it could alter their value proposition accordingly and create more successful private labels in the market place. Originality/value – This study is one among the very few studies which addressed the research on purchase intention toward private labels in Indian context.

scholarly journals New patterns in wine consumption: the wine by the glass trend

2019 ◽  
Vol 122 (8) ◽  
pp. 2655-2669 ◽  
Author(s):  
Diletta Acuti ◽  
Valentina Mazzoli ◽  
Laura Grazzini ◽  
Rinaldo Rinaldi
Keyword(s):  
Risk Perception ◽  
Perceived Risk ◽  
Purchase Intention ◽  
Empirical Studies ◽  
Theoretical Explanation ◽  
Purchase Intentions ◽  
Variety Seeking ◽  
Content Type ◽  
Wine Consumption ◽  
The Relationship

Purpose The purpose of this paper is to advance the understanding of wine by the glass (WBG) consumption as a new growing trend in wine consumption. To this end, the roles of risk perception, wine involvement and variety seeking are investigated in determining WBG purchase intentions. Design/methodology/approach Two studies based on a scenario-based survey have been conducted. In Study 1 (n=248), the relationship between WBG risk perception and WBG purchase intention mediated by variety seeking is tested. In Study 2 (n=200), the relationship between wine involvement and WBG purchase intention with the mediating role of variety seeking is analysed. Findings Results show that variety seeking plays a key role in determining WBG purchase intentions considering both WBG perceived risk and wine involvement as independent variables. Research limitations/implications The study advances the literature on WBG consumption by enclosing the psychological mechanism (i.e. variety seeking) behind consumers’ WBG purchase intentions. The main limitation of this study lies in it being conducted in a single country (i.e. Italy). Practical implications This paper provides useful guidelines for wine managers. Specifically, variety seeking can attract consumers in new wine-consuming places based on a rich assortment. Moreover, it can present a challenge to wine producers in creating brand loyalty. Originality/value Although WBG is a growing trend in wine consumption, empirical studies are still scant and a deeper comprehension of its antecedents and consequences is needed. By showing variety seeking as the mechanism behind WBG consumption, this study offers a new theoretical explanation of this phenomenon.

Factors influencing smartphone based online shopping: an empirical study of young Women shoppers

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahima Shukla ◽  
Vranda Jain ◽  
Richa Misra
Keyword(s):  
Young Women ◽  
Perceived Risk ◽  
Purchase Intention ◽  
Online Shopping ◽  
Working Women ◽  
Content Type ◽  
Conversion Rates ◽  
Tam Model ◽  
Perceived Benefit ◽  
The Impact

PurposeThe study examines how young working women are motivated by online shopping. The study tests the relationship between Internet self-efficacy (ISE), website aesthetics, and purchase intention through perceived benefit. An investigation of the impact of perceived risk on purchase intention is also carried out.Design/methodology/approachThe paper carried out a quantitative study based on a purposive sample of 180 working women from the Delhi-NCR region of India and used Structural Equation Modelling (SEM) to test hypotheses based on the extended TAM model.FindingsPerceived benefit, website aesthetics, and ISE positively and significantly impact working women's purchase intention. The study also finds an indirect relationship between ISE and purchase intention through perceived benefit. Perceived risk has a negative and insignificant influence on working women's purchase intention for online shopping.Practical implicationsThe study finding reflects that perceived website aesthetics fill the gap between offline and online environments. ISE makes shopping easy and increases the shopper's confidence. A mobile-optimized website with ease of navigation would increase women shoppers' conversion rates on mobile devices, leading to a favourable impact on revenue generation for online retailers.Originality/valueDespite the vast literature on constructs derived from the TAM model, very few studies have researched young women consumers from an emerging economy perspective. The novelty of this research lies in identifying the factors that influence young working women's online shopping intention using smartphone through the glance of ISE and perceived aesthetics in the Indian context.

Intention of and commitment towards purchasing luxury products

2017 ◽  
Vol 8 (3) ◽  
pp. 476-495 ◽  
Author(s):  
Nur Jahan Khan ◽  
Mohammed Abdur Razzaque ◽  
Nik Mohd Hazrul
Keyword(s):  
Perceived Risk ◽  
Purchase Intention ◽  
Muslim Country ◽  
Related Factors ◽  
Content Type ◽  
Moderating Variables ◽  
Promotional Efforts ◽  
Luxury Products ◽  
Advertising Exposure ◽  
The Impact

Purpose The purpose of this study is to empirically probe into the impact of product-related factors on the purchase intention (PI) of luxury products by Muslim consumers in Malaysia and their commitment to purchase (CP) these products. It tests if PI influences CP and how moderating variables affect the PI–CP relationship in the context of purchase of such products. Design/methodology/approach Data were collected from a sample of 186 Muslim consumers drawn through a series of carefully conducted mall intercept interviews in six major shopping malls located in different parts of Kuala Lumpur, Malaysia, using a structured, self-administered survey questionnaire. Data were analyzed using a moderated regression analysis. Findings Although Islam does not seem to encourage spending on luxuries, sampled Muslim consumers did not seem to have much inhibition about purchasing luxury products. Their PI was found to be significantly influenced by product advantage and brand awareness, while PI–CP relationship pertaining to luxury products appeared to be positive. Of the two moderating variables examined in the study, only advertising exposure was found to strengthen the PI–CP relationship, while perceived risk, the other moderating variable, seemed to weaken it. Research limitations/implications As the study was conducted in a single country setting (i.e. Malaysia), the findings may lack generalizability. Future researchers may enlarge the scope of the study by including other countries, particularly other Muslim countries, to obtain generalized findings. Practical implications Manufacturers as well as marketers of luxury products should emphasize the product-related factors in their promotional efforts and increase familiarity of the brand through repeated exposures for brand recognition and brand recall. Social implications This study also provides food for thought for Muslim scholars and researchers about the Muslim consumer psyche. Originality/value To date, this is the first research undertaking to empirically study the PI–CP relationship in the context of purchase of luxury products in a predominantly Muslim country. The study will be useful to marketers, academics and other researchers working in this area.

“Carne Fraca”

2019 ◽  
Vol 122 (2) ◽  
pp. 722-735
Author(s):  
Filipe Quevedo-Silva ◽  
Otavio Freire ◽  
Caroline Pauletto Spanhol-Finocchio
Keyword(s):  
Risk Perception ◽  
Perceived Risk ◽  
Purchase Intention ◽  
Positive Impact ◽  
Risk Attitude ◽  
Content Type ◽  
National Crisis ◽  
Cast Doubt ◽  
Negative Effect ◽  
The Impact

Purpose Over the last few years, several events have reduced the consumer confidence in relation to food safety. Recently, one event that triggered discussions and concern among consumers in Brazil was the “Carne Fraca” operation which cast doubt on the quality and safety of Brazilian beef. The purpose of this paper is to analyse the impact of the news regarding a national crisis in beef production on consumers’ assessment and purchase intention of beef. Design/methodology/approach A quantitative study was conducted involving 417 respondents in Brazil. The procedure for the analysis consisted of the investigation of two models, incorporating mediation and moderation effects. Findings The results show that news on the crisis had a positive impact on risk perception. This impact was negatively moderated by consumer scepticism. Risk perception had a negative effect on the assessment of beef and purchase intention. These effects were negatively affected by risk attitude. The news directly affected consumers’ assessment of beef and indirectly affected purchase intention through mediation of perceived risk. Originality/value This study proposes two models, analysing the effect of the media on consumers’ assessment of beef and purchase intention, mediated by risk perception. Furthermore, the models analyse the moderating effects of scepticism and consumers’ risk attitude.

Influence of consumers’ perceived risk on consumers’ online purchase intention

2018 ◽  
Vol 12 (3) ◽  
pp. 309-327 ◽  
Author(s):  
Shaizatulaqma Kamalul Ariffin ◽  
Thenmoli Mohan ◽  
Yen-Nee Goh
Keyword(s):  
Perceived Risk ◽  
Purchase Intention ◽  
Online Shopping ◽  
Social Risk ◽  
Security Risk ◽  
Content Type ◽  
Perceived Risks ◽  
Online Purchase ◽  
Online Retailers ◽  
The Relationship

Purpose This paper aims to examine the relationship between six factors of consumers’ perceived risk and consumers’ online purchase intentions. In particular, this study will examine the relationship between financial risk, product risk, security risk, time risk, social risk and psychological risk and online purchase intention. Design/methodology/approach Survey method was used for the purpose of data collection, and quantitative analysis was used to test the hypotheses. A total of 350 respondents participated on an online survey, and data were quantitatively analyzed via IBM SPSS Statistics 24. Findings The findings from this study suggest consumers’ perceived risks when they intend to purchase online. Five factors of perceived risk have a significant negative influence on consumer online purchase intention, while social risk was found to be insignificant. Among these factors, security risk is the main contributor for consumers to deter from purchasing online. Practical implications This study provides useful information to online retailers in electronic commerce (e-commerce) activities. Previous studies show that many online retailers are still facing some risks in online business, and this will affect the transaction and performance of the retailers. It is hoped that the findings can help online retailers to formulate strategies to reduce risks in the online shopping environment, especially security risks for better e-commerce. Originality/value The development of online shopping has led to some challenges to consumers, which comprise security of payment, data protection, the validity and enforceability of e-contract, insufficient information disclosure, product quality and enforcement of rights. This issue emerged because many online retailers do not understand the main factors that will contribute to consumers’ perceived risk. Consumers’ perceived risks will influence consumer attitudes toward online shopping and purchase behaviors. Studies on consumers’ perceived risks toward online purchase intentions are still inconclusive. Thus, this paper fills the gap in the research area.

Predicting Indian consumers' purchase intention from Western apparel brands

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Swagata Chakraborty ◽  
Amrut Sadachar
Keyword(s):  
Purchase Intention ◽  
Structural Equation ◽  
Online Survey ◽  
Negative Influence ◽  
Amazon Mechanical Turk ◽  
Equation Modeling ◽  
Content Type ◽  
Indian Consumers ◽  
Brick And Mortar ◽  
The Usa

PurposeThe present study compared Indian consumers' attitude (AT) toward and purchase intention (PI) from Western apparel brands, as a function of their Western acculturation (WA), consumer ethnocentrism (CE) in apparel consumption, consumer cosmopolitanism (CC) and country of residence (India vs the USA).Design/methodology/approachThe sample included Indians residing in India and the USA, who were 19 years or older, and visited online or brick-and-mortar apparel stores. An online survey was administered through Amazon Mechanical Turk to collect the data. The data was analyzed through multi-group structural equation modeling.FindingsWA engenders CE among Indian consumers, especially among Indians residing in India. WA and CC positively influence AT. CE did not have a significant negative influence on AT. Although a high CE lowers the PI, a high WA, CC and positive AT can translate into high PI.Research limitations/implicationsThe study did not use an experimental design. Therefore, causal relationships between the research variables could not be explained. Majority of the respondents were male. This might have confounded the findings with potential gendered effects.Practical implicationsWestern apparel brands targeting Indian consumers in India and the USA should focus on projecting their cosmopolitan and pro-Indian image to target this population's cosmopolitan and ethnocentric outlook, thereby enhancing PI.Originality/valueThe study proposed and empirically tested a conceptual model indicating the relationship between some of the important predictors of Indian consumers' PI in the context of Indians residing in the USA and India.

Product line design with vertical and horizontal consumer heterogeneity: the effect of distribution channel structure on the optimal quality and customization levels

2020 ◽  
Vol 55 (1) ◽  
pp. 95-131
Author(s):  
Parisa Bagheri Tookanlou ◽  
Hartanto Wijaya Wong
Keyword(s):  
Distribution Channel ◽  
Product Line ◽  
Channel Structure ◽  
Fixed Cost ◽  
Content Type ◽  
Product Line Design ◽  
Segmentation Strategy ◽  
Line Extension ◽  
Market Coverage ◽  
Line Design

Purpose The purpose of this study is to analyze the problem of optimal product line design in marketing channels where consumers are heterogeneous in both horizontal and vertical dimensions. Design/methodology/approach This paper develops a model to evaluate when it is preferable for a firm to extend the product line in a vertical or horizontal direction. Consumers are modeled as being vertically heterogeneous with respect to their valuation of quality and horizontally heterogeneous with respect to their preference on the esthetic component of the product. These model characteristics allow us to consider a broader set of product line extension strategies. By considering both a vertically integrated channel and a decentralized channel, this study investigates how channel structure influences optimal product line design. The problem with supplemental numerical analyses is mathematically analyzed. Findings The analysis shows that a horizontal product line extension strategy that offers the customized product can be used as an alternative to a vertical product line extension strategy. If the fixed cost is not too high, offering the customized product with low quality may be preferred to the quality-based segmentation strategy. Furthermore, the analysis shows that the channel structure is influential as the preference for the horizontal product line extension strategy is more pronounced in the decentralized channel than in the centralized channel. Research limitations/implications The analysis presented in this paper is limited by the consideration of full market coverage. Further research is needed to see how the results can be generalized to the case with partial market coverage. Practical implications The analysis suggests that a firm may consider product customization as part of its product line strategy. Information regarding market characteristics and channel structure is important when deciding on the optimal product line design. Originality/value The model reflects a more realistic marketing strategy and channel structure than previous studies that typically consider product line extension in only one direction and focus on the centralized distribution channel. Combining the standard product line extension and customization strategies also represents an important contribution to the literature. These extensions produce interesting new results and insights into a firm’s optimal product line design strategy.

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