The impact of economic perceptions on status consumption: an exploratory study of the moderating role of education

2014 ◽  
Vol 31 (2) ◽  
pp. 111-117 ◽  
Author(s):  
Dora Elizabeth Bock ◽  
Jacqueline Kilsheimer Eastman ◽  
Benjamin McKay

Purpose – Given the economic downturn, the purpose of this study was to determine if a relationship exists between economic perceptions and consumers' motivation to consume for status and if this relationship was moderated by education level. Design/methodology/approach – A stratified random sample of adult consumers in the southeastern USA were surveyed by telephone. The hypotheses were tested utilizing structural equation modeling. Findings – The results indicated that those consumers with a lower level of perceived economic welfare (i.e. see the economy and their family's financial situation as worse this year versus last year) were less motivated to consume for status. Furthermore, this relationship was positively moderated by education. No relationship was found between consumer confidence (i.e. consumers' perceptions of the economy in the future year) and status consumption. The results suggest that those consumers who perceive themselves to be financially better off this year versus last, particularly those more educated, are more motivated to consume for status. Research limitations/implications – The main research limitation was that the sample skewed to be older, female and Caucasian, though the sample did match Census figures for the critical variable of education. Additionally, the phone response rate was 9 percent, but it is important to recognize that this was for a non-student sample. Practical implications – The results suggest that marketers, targeting luxury consumers in the current stagnant economy, aim for more educated consumers who see their economic welfare as improving. This implication stems from the research findings revealing that consumers who feel they are recovering economically from the recent economic downturn, especially those with higher education levels, may more likely be status consumers. Originality/value – With the democratization of luxury there is renewed interest in luxury consumption research. While research suggests there is a relationship between economic conditions and status consumption, few studies have measured consumer economic perceptions in relation to status consumption and none have examined how education may play a moderating role in explaining why people buy luxuries in a tough economic climate.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Huseyin Ince ◽  
Salih Zeki Imamoglu ◽  
Hulya Turkcan

PurposeThis paper investigates the impact of absorptive capacity (ACAP) on creativity and the effect of creativity on job performance. Further, the study investigates the moderating role of social media usage on the ACAP–creativity link and the creativity–job performance link. Accordingly, drawing on the ACAP perspective and social exchange theory (SET), the study develops a conceptual model and tests the proposed relationships.Design/methodology/approachThe paper empirically tests the developed model using 512 survey responses from research and development (R&D) employees. Data were factor analyzed, and path estimates were determined using structural equation modeling to test the hypotheses.FindingsThe results reveal that (1) individual ACAP is positively related to creativity; (2) creativity is positively associated with job performance and (3) social media usage positively moderates the relationship between individual ACAP and creativity.Originality/valueThis paper contributes to the ACAP and creativity literature by establishing a comprehensive and empirically grounded framework that enlightens the relationships between ACAP, creativity, job performance and the moderating role of social media usage.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shahid Rizwan ◽  
Husam-Aldin Al-Malkawi ◽  
Kamisan Gadar ◽  
Ilham Sentosa ◽  
Naziruddin Abdullah

Purpose Although 76% of the population of the United Arab Emirates (UAE) is Muslim, takāful (Islamic insurance) has a much smaller share of business in the UAE than conventional insurance does. The purpose of this study is to highlight the importance of brand equity (BE), which is known as the incremental value that provides reason to buy a brand. This study provides useful insights that can help the health takāful industry to gain a feasible market share in the UAE. Design/methodology/approach This is a quantitative study in which stratified random sampling was adopted for data collection from 300 respondents through a self-administered questionnaire from August to November 2018. Underpinning the study is the theory of planned behavior (TPB) and the structural equation modeling (SEM) technique has been used to examine the impact of BE on purchase intentions (PI) through the moderating role of demographic factors such as age, income, education and religion. Three dimensions of BE, i.e. brand awareness (BAW), brand association (BAS) and perceived quality (PQ), are evaluated in terms of their significance as dimensions of BE. Findings The major findings of this study confirm that BE has a strong positive influence on the PIs of health takāful customers in the UAE and that all three dimensions of BE make significant contributions to the overall BE. The results show that education does moderate the relationship between BE and PI while age, income and religion do not. A new finding of this study is the nonsignificant moderating role of religion, whereby it was found that takāful products in the UAE are not limited to Muslim customers but can include potential customers who are followers of other religions. Originality/value To the best of our knowledge, the present study is the first of its kind to examine the impact of BE on the PI of health takāful customers in the UAE. The findings of the study give academia, researchers and marketers a better understanding of the importance of BE and of its vital role in promoting takāful products in the Gulf Cooperation Council (GCC) countries such as the UAE.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zubaida Qazi ◽  
Wasim Qazi ◽  
Syed Ali Raza ◽  
Komal Akram Khan

PurposeThe emergence of electronic learning during the COVID-19 outbreak has been the way by which higher education has attempted to save the situation. However, e-learning still causes psychological distress because of its crackups and fear. Hence, the authors aim to study the impact of e-learning crackup on fear of academic year loss and psychological distress by incorporating university support as a moderator.Design/methodology/approachPartial least squares structural equation modeling (PLS-SEM) has been used to analyze data.FindingsThe results depict that e-learning crackup fosters students' fear of academic year loss, but e-learning crackup has an insignificant impact on psychological distress. However, psychological distress is driven by fear of an academic year loss. Lastly, university support moderates the relationship between e-learning crackup and psychological distress, but no moderating role exists between fear of academic year loss and psychological distress.Originality/valueThe recent pandemic has severely affected the mental health of students. Therefore, it is crucial to study the reasons that foster distress among them. But, unfortunately, there is a prominent absence of research for inspecting students' psychological distress because of the e-learning crisis, especially in the wake of COVID-19.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Talat Islam ◽  
Mubbsher Munawar Khan ◽  
Ishfaq Ahmed ◽  
Khalid Mahmood

PurposeHuman misbehaviors are responsible for climate change as they waste resources and pollute water and air that dilapidate the environment. Considering the fact and contributing to the United Nations sustainable development goals of 2019, organizations started focusing their green HRM practices to develop employees' green attitudes and behaviors. This study is an attempt in this direction. It examines the impact of ethical leadership on individuals' green in-role and extra-role behaviors with the mediating role of green HRM practices and the moderating role of individual green values.Design/methodology/approachThe study collected data from 645 MBA executive students working in various manufacturing industries with at least one year of experience. The data were collected using a questionnaire-based survey in two-time lags.FindingsHypothesized relationships are tested through structural equation modeling. Findings reflected a significant impact of ethical leadership on green HRM practices, in-role, and extra-role green behaviors. Besides, green HRM practices mediated the relationship between ethical leadership and both types of green behaviors. Furthermore, it was observed that the individual green values strengthened the association between green HRM practices and both types of green behaviors.Research limitations/implicationsA cross-sectional design with time lags was used to avoid common method bias. The findings of the study contribute to supply-value-fit theory and validate the scale of individual green value.Practical implicationsThis study guides management that employees only perceive their organizational practices as green when they find their leaders are ethical. Further, considering individual green values in the recruitment process can help organizations accomplishing their green goals.Originality/valueThis study is novel in examining the mediating role of green HRM practices between ethical leadership and green behaviors. Further, the analysis not only validates the scale of individual green values but also noted its moderating role between green HRM and green behaviors.


2015 ◽  
Vol 117 (8) ◽  
pp. 2017-2038 ◽  
Author(s):  
Mahsa-Sadat Taghavi ◽  
Alireza Seyedsalehi

Purpose – The purpose of this paper is to study the impact of chocolate packaging and brand on the purchasing decisions of a number of Iranian children and their parents. The paper also aims to investigate the role of pester power as a moderating variable in the relationship between children’s purchasing decision and that of their parents. Design/methodology/approach – Data were collected using a 26-item Likert-scaled questionnaire administered in February 2013 to the parents of 600 children at two daycare centers and four elementary schools in the city of Qazvin in Iran. The returned and complete questionnaires were subjected to confirmatory factor analysis and path analysis within structural equation modeling using IBM® Amos and SPSS statistical packages. Findings – The results show that packaging and brand have a positive effect on parents. However, children were only influenced by packaging, and not brand. Further, it was found that children influenced their parents during store visits. The study also confirms the moderating role of children’s pester power in the relationship between children’s purchasing decision and that of their parents. Research limitations/implications – A limitation of the study is that the issue of the effect of packaging and brand on children was explored through the opinions of parents. Also, due to budget constraints, images of chocolate products rather than real packages were used. Future research might study the effect of other factors such as peers, socio-cultural issues, and economic status. Another possibility would be to include other variables such as mental involvement and time constraint. Practical implications – The findings of the study might be useful for all manufacturers and suppliers of goods. More specifically, managers and marketing agents in the chocolate industry are recommended to improve children’s brand awareness through advertising as a way of making them want to buy branded products. Originality/value – The most important difference between this work and previous studies is its use of children’s pester power as a moderating factor in the relationship between the purchasing decision of children and that of their parents. Another good thing about this paper is that it gives the reader an insight into the Iranian context. The results give the manufacturers a better understanding of the factors children take into account when deciding to purchase something.


2019 ◽  
Vol 31 (5) ◽  
pp. 610-645 ◽  
Author(s):  
Richard Huaman-Ramirez ◽  
Dwight Merunka

Purpose The purpose of this study is to examine how brand attachment is related to brand experience. The model tests the partial mediating role of brand trust and the moderating role of age and income. Design/methodology/approach A total of 334 participants consuming brands with an experiential offering completed an online questionnaire in a cross-sectional study. The data were analyzed through partial least squares structural equation modeling (PLS-SEM), and advanced methods such as the heterotrait–monotrait ratio and the Henseler’s multigroup analysis were used. Findings Brand experience is positively related to brand attachment, more so for younger consumers. This relationship holds for both hedonic and utilitarian brands. Results demonstrate the partial mediation of brand trust in this relationship, especially for utilitarian brands, and with a weaker indirect relationship for high-income consumers. Research limitations/implications The research was conducted in one country (Peru). Generalizability of results should be established by carrying out additional studies in other settings or countries. Practical implications Experiential marketing both as a positioning strategy and through marketing operations may help brands to increase consumer attachment. This may be managed both through the direct effect of favoring positive experiences and through the enhancement of brand trust. This is particularly the case for target markets composed of young and low-to-medium-income consumers. Originality/value Results confirm the impact of brand experience on brand attachment for both utilitarian and hedonic brands, and establish both the mediating role of brand trust and the moderating role of age and income. These are new insights on the process itself and on boundary conditions of an important established relationship.


2014 ◽  
Vol 25 (2) ◽  
pp. 245-269 ◽  
Author(s):  
Nancy W. Nix ◽  
Zach G. Zacharia

Purpose – Supply chains are embedded in a larger network of enterprises where firms exchange offerings, often compete for the same customers, and constantly innovate to improve their performance. In these dynamic environments, firms are increasingly dependent on the knowledge and expertise in external organizations to innovate, problem-solve, and improve performance. Firms are increasingly collaborating to exchange and pool skills and knowledge and deploy resources and capabilities not found in their own firm. This research using both structured interviews and survey data seeks to determine what are the direct benefits and the ancillary benefits of collaboration. The paper aims to discuss these issues. Design/methodology/approach – A mixed methodology approach was utilized, using qualitative structured interviews leading to developing a research model and then an empirical survey of 473 participants who are involved in their respective organization's collaboration projects. The data were analyzed using structural equation modeling to examine relationships between collaborative engagement, knowledge gained, operational outcomes and relational outcomes. Findings – The results of the study indicate that collaborative engagement has a direct effect on knowledge gained, operational outcomes and relational outcomes in collaboration. The ancillary benefit of collaboration is the learning that takes place leads to improved operational outcomes and relational outcomes. Research limitations/implications – In this research study all the constructs are only examined from a single perspective. This can be a limitation as it would be of greater value to collect data from all the members involved in the collaboration. Originality/value – Collaboration has been well studied in many fields but this research suggests an important ancillary benefit that needs to be considered when deciding to collaborate is the knowledge and learning that happens during a collaboration.


Author(s):  
Nada Hammad ◽  
Syed Zamberi Ahmad ◽  
Avraam Papastathopoulos

Purpose This paper aims to investigate residents’ perceptions of tourism’s impact on their support for tourism development in Abu Dhabi, United Arab Emirates (UAE). Design/methodology/approach Data were collected using self-administered questionnaires from Abu Dhabi residents (n = 407), who represented 30 nationalities residing in the emirate. Based on social exchange theory, structural equation modeling was used to test hypotheses. Findings Results suggest that Abu Dhabi residents perceive the impacts of tourism positively and are more sensitive to the environmental and economic influences of tourism than the social and cultural influences. Research limitations/implications This study was limited to Abu Dhabi residents; findings cannot be generalized to other emirates in the UAE, or other countries. Originality/value This study adds value to extant tourism literature by investigating residents’ perceptions of the influence of tourism in one of the richest cities worldwide, which aspires to be one of the fastest growing tourism destinations in the Middle East.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Junaidi Junaidi ◽  
Ready Wicaksono ◽  
Hamka Hamka

Purpose This paper aims to investigate whether and how religiosity (e.g. extrinsic and intrinsic) influences the mediator variables (consumers’ commitment and materialism) in the Islamic bank consumers context. It also examines how the mediators should be influence consumers’ preferences. Design/methodology/approach In total, 658 Muslim people and Islamic bank consumers were recruited for a survey study and structural equation modeling was used to test the research hypotheses. Findings The empirical results indicate that religiosity (e.g. extrinsic and intrinsic) has significant and positive effects on consumers’ commitment and materialism, whereas intrinsic religiosity has no significant effect on consumers’ commitment which subsequently influences consumers’ preference. Furthermore, mediator variables (e.g. consumers’ commitment and consumers’ materialism) have partial mediators between religiosity and consumers’ preferences. Research limitations/implications The current study was limited to Indonesian Muslim people; there is a future need to study consumers’ attitudes and engagement in religious products and services (e.g. Islamic brands). It is can help practitioners, regulators and researchers to observe the dynamic behavior to elaborate on the impact of religion and Islamic products on consumers’ preference. Practical implications The bank managers and regulators should enhance the information of products and services Islamic banks and the difference principle between conventional banks. Moreover, enlighten the consumers about the principle operation of Islamic banks from the perspective of marketing and religiosity. Originality/value This study contributes to consumers’ behavior literature and, specifically, for the decision-making process through developing and testing a model of religious determinants toward Islamic bank products, as well as offers new insights into the determinants of religion and consumers’ decision process toward Islamic banking.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mazzini Muda ◽  
Muhammad Iskandar Hamzah

PurposeIn spite of the increasing organic and interactive marketing activities over social media, a general understanding of the source credibility of voluntary user-generated content (UGC) is still limited. In line with the social identity theory, this paper examines the effects of consumers' perceived source credibility of UGC in YouTube videos on their attitudes and behavioral intentions. Additionally, source homophily theory is included to predict the antecedent of source credibility.Design/methodology/approachThree hundred and seventy two Generation Y respondents were interviewed using snowball sampling. Data were analyzed with component-based structural equation modeling technique of partial least squares-structural equation modeling (PLS-SEM).FindingsFindings confirmed that perceived source credibility indirectly affects purchase intention (PI) and electronic word-of-mouth via attitude toward UGC. Besides, perceived source credibility mediates the effect of perceived source homophily on attitude toward UGC.Practical implicationsSince today's consumers have begun to trust and rely more on UGC than company-generated content on social media when making purchase decisions, companies may reconsider democratizing certain aspects of their branding strategies. Firms may fine-tune their marketing communication budgets – not only just by sponsoring public figures and celebrities but also by nurturing coproductive engagements with independent content creators who are ordinary consumers. Endowed with their imposing credibility, these micro-influencers and prosumers have high potentials to be uplifted to brand ambassadors.Originality/valueWhile consumers' purchase outcome can be measured easily using metrics and analytics, the roles of source homophily in stages leading up to the purchase is still elusive. Drawing on the rich theoretical basis of source homophily may help researchers to understand not only how credibility and attitude are related to PI but also how this nexus generates positive word of mouth among UGC followers within the social media circles.


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