Price protection policies with demand uncertainty and strategic consumers

2017 ◽  
Vol 12 (2) ◽  
pp. 190-203 ◽  
Author(s):  
Tingting Wang ◽  
Chuiri Zhou
Keyword(s):  
Consumer Behavior ◽  
Rational Expectations ◽  
Demand Uncertainty ◽  
Positive Influence ◽  
Negative Effects ◽  
Optimal Price ◽  
Content Type ◽  
Strategic Consumers ◽  
Protection Policy ◽  
Optimal Decisions

Purpose This paper aims to study a retailer’s decision on the price and inventory when facing strategic consumer behavior and demand uncertainty. Price protection is a kind of rebate that the retailer provides to consumers when the price drops during the selling season. The research investigates whether price protection can bring the retailer advantages. This paper compares price protection’s impact with price commitment. In addition, the paper studies the price protection’s impacts on supplier of the supply chain. Design/methodology/approach In this model, there are three alternative strategies for retailer: no price protection policy, full price protection policy and partial price protection policy. The selling season is divided into two periods: regular period and sale period. In the regular period, the products are sold at a regular price. In the sale one, the products are sold at a lower price. By adopting rational expectations equilibrium, this paper analyzes retailer’s optimal price and order quantity under each policy and compares optimal decisions and maximum profits of three policies. Findings This paper finds that the price protection has a positive influence on the retailer. Strategic consumers are induced to purchase at the regular period. It can simultaneously increase retailer’s profit and reduce inventory risk. Meantime, full price protection is chosen as the optimal policy. By comparing full price protection’s impacts with price commitment, full price protection is considered as the most profitable strategy, while price commitment can bring lower inventory risk. In addition, the profit of supplier would decrease because of price protection. Originality/value This research provides a new method to address the negative effects of strategic consumer behavior. It also brings some managerial insights to some retailers, especially online ones, on whether to adopt price protection.

Influence of e-WOM engagement on consumer purchase intention in social commerce

2018 ◽  
Vol 32 (4) ◽  
pp. 493-504 ◽  
Author(s):  
Ali Sahabi Yusuf ◽  
Ab Razak Che Hussin ◽  
Abdelsalam H. Busalim
Keyword(s):  
Social Support ◽  
Consumer Behavior ◽  
Purchase Intention ◽  
Positive Influence ◽  
Future Research ◽  
Social Commerce ◽  
Current Effort ◽  
Content Type ◽  
Consumer Purchase Intention ◽  
Information Characteristics

Purpose As a business paradigm, social commerce (s-commerce) has brought about a new stage of innovation, and by extension, has transmuted the power from seller to buyer. S-commerce is a combination a commercial and social activities in which individuals may spread word of mouth (WOM) about their shopping experiences and knowledge and provide information about product and services to their to their friends. This kind of social interactions among individuals has increased the potentials of eWOM communication. Given such a backdrop, this paper aims to look into the influence of eWOM engagement on consumers’ purchase intention in s-commerce, which may complement the current effort of the research community in this area. Design/methodology/approach This study used elaboration likelihood model, theory of reasoned action and social support theory to investigate the influence of eWOM engagement on consumers’ purchase intention in s-commerce. The study used 218 respondents to evaluate the proposed model using SmartPLS. Findings The empirical results indicate that information characteristics, consumer behavior and technological factors exert a positive influence on consumer purchase intentions. All hypotheses between attitude toward eWOM, information credibility, innovativeness, website quality and eWOM engagement are significant. Also, eWOM engagement has a significant positive influence on consumer purchase intention. However, information quality and social support does not have any significant relationship with eWOM engagement. Research limitations/implications This study seeks to address the dearth of research in the field of s-commerce, especially as it relates to eWOM. The study proposes a new model and empirically validates the hypothesized relationships. This research can serve as a stepping stone for future research in this field. Practical implications This study is one of the early studies focusing on the influence of eWOM engagement, especially in s-commerce. The study offers comprehensive and empirically validated factors pertaining to eWOM engagement in s-commerce. The results of this study are also important to practitioners and online companies’ managers. The study’s model has demonstrated the contextualization of what makes customers engage in eWOM and its influence in s-commerce. The study will also offer insights for firms on how to encourage eWOM engagement among customers. Originality/value A new eWOM engagement model in s-commerce is proposed with consideration on information characteristics, consumer behavior, technological and social factors. The model is validated afterwards.

Transmission of family identity and consumer response: do consumers recognize family firms?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
María José Ibáñez ◽  
Manuel Alonso Dos Santos ◽  
Orlando Llanos-Contreras
Keyword(s):  
Consumer Behavior ◽  
Visual Attention ◽  
Family Business ◽  
Purchase Intention ◽  
Family Firms ◽  
Positive Influence ◽  
Consumer Response ◽  
Family Identity ◽  
Content Type ◽  
Digital Platforms

PurposeCommunicating the identity of a family business generates positive results in consumer response. The paper aims to understanding how the efficient transmission of family identity can influence consumer behavior is essential for designing family firms' marketing communication strategies.Design/methodology/approachAn experimental study based on the eye-tracking technique was designed to determine how attention to (familiar vs non-familiar) visual stimuli on a website influences consumer recognition of a family firm status and how it influences consumer behavior. A sample of 212 individuals was exposed to (simulated) websites of family and non-family firms in the hospitality industry to capture information about their eye movements and measure visual attention to specific stimuli that communicated family identity.FindingsVisual attention has a direct and positive influence on recognizing family firm's identity (FFI). Through FFI, visual attention has an indirect positive effect on trust in the company and attitude toward the brand (BraAtt). Trust in a firm positively affects purchase intention (PurInt).Originality/valueIt is known that consumers can perceive a FFI; however, there is no study on the sensory mechanisms operating in consumers' perceptions of family identity. The study contributes to understanding how consumers can perceive a FFI. This study proposes a novel method for evaluating consumer responses by transmitting family business identity on digital platforms.

Influence of leaders’ authentic competences on nepotism-favouritism and cronyism

2019 ◽  
Vol 43 (4) ◽  
pp. 369-386 ◽  
Author(s):  
Isaac Nana Akuffo ◽  
Kurmet Kivipõld
Keyword(s):  
Quantitative Research ◽  
Self Regulation ◽  
Negative Influence ◽  
Positive Influence ◽  
Research Approach ◽  
Self Awareness ◽  
Negative Effects ◽  
Content Type ◽  
Moral Perspective ◽  
Private And Public

Purpose The purpose of this study is to explore how an authentic leader’s internal (self-regulation, self-awareness and internalised moral perspective) and external competencies (relational transparency and balance processing) influence nepotism, favouritism and cronyism (NFC). Design/methodology/approach The study used a quantitative research approach and respondents were sampled from private and public banks across the ten regions of Ghana using survey questionnaires. Overall, 127 branch managers and 997 subordinates were sampled. The collected data were analysed using exploratory and confirmatory factor analysis, and multiple regression was used to explore the influence the of authentic leadership (AL) competences on NFC. Findings On leader’s internal competences, the results revealed that self-awareness had a significant decreasing influence on nepotism in terms of operations, while internalised moral perspective had a significant increasing influence on favouritism in the context of position. Self-regulation did not have any significant influence on NFC. Regarding the leader’s external competences, relational transparency had a significant positive influence on favouritism and nepotism, while balance processing had a significant negative influence on favouritism and nepotism in the context of position and operations, respectively. Research limitations/implications The results suggest that AL competences have a mixed influence on NFC in the context of this study. However, the findings are limited to Ghana and cannot be generalised to countries that do not share a similar culture with Ghana such as countries in Europe, North and South America, Asia and even certain countries in Africa. Practical implications The authors advise family businesses to use free and fair measures to appoint or promote employees who have the required skills to manage the office rather than appointing family members to positions without merit. Training on AL and NFC should be conducted for managers to enable them to understand the potential negative effects of NFC on the employees and the organisation at large. Social implications Laws must be passed to guard against appointments or recruitments of employees in the public sector organisations based on NFC to minimise these unethical behaviours. Originality/value This is the first study which empirically explores AL competences influence on the leaders’ behaviour in the context of NFC.

Flexibility and job stress in the accounting profession

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yosra Mnif ◽  
Emna Rebai
Keyword(s):  
Job Stress ◽  
Negative Impact ◽  
Positive Association ◽  
Well Being ◽  
Positive Influence ◽  
Structural Equations ◽  
Negative Effects ◽  
Accounting Profession ◽  
Content Type ◽  
Accounting Professionals

Purpose The purpose of this study is to examine the effects of flexibility as a coping mechanism for reducing the negative impact of job stress on the accounting profession. Design/methodology/approach Data were collected using a survey questionnaire sent by mail to accounting professionals in Tunisia. A total of 200 responses were examined using a structural equations modeling procedure. Findings The results indicate that flexibility attenuates the negative effects of job stress by improving job performance and job satisfaction among accounting professionals. Also, flexibility has a significant and positive association with psychological well-being. The results demonstrate that role ambiguity and overload have a positive influence on job burnout, which supports the argument that role stressors are antecedents of burnout in the accounting profession. Practical implications This study’s results help the accounting firms to reduce job stress by offering work flexibility to employees. Also, the results have significant implications for accounting professionals who are concerned with the consequences of job stress and the coping mechanisms that can diminish these consequences. Originality/value This study contributes to the behavioral accounting literature by examining flexibility as a coping strategy within the job stress model in an emerging country (Tunisia).

Green marketing in emerging Asia: antecedents of green consumer behavior among younger millennials

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Khan Md Raziuddin Taufique ◽  
Shahidul Islam
Keyword(s):  
Climate Change ◽  
Consumer Behavior ◽  
Theory Of Planned Behavior ◽  
Planned Behavior ◽  
Environmental Attitudes ◽  
Positive Influence ◽  
Subjective Norms ◽  
Content Type ◽  
Environmental Deterioration ◽  
Perceived Consumer Effectiveness

Purpose Rapid economic growth, urbanization, growing population and resulting overconsumption have led to the severe environmental vulnerability of some south Asian countries, further accelerated by the impact of climate change. Bangladesh is one such country that has been recognized by the United Nations Framework Convention on Climate Change as one of the most environmentally vulnerable in the world. A significant amount of environmental deterioration is reportedly due to consumption-related activities. This study, therefore, aims to understand the antecedents of green consumer behavior among young urban consumers, an emerging and environmentally promising market in Bangladesh. Design/methodology/approach This study uses the theory of planned behavior to integrating environmental attitudes, subjective norms, perceived consumer effectiveness and behavioral intentions in its conceptual model to examine their influence on green consumer behavior. Data were collected from 206 young urban consumers (18–24 years of age) from the capital city of Bangladesh. Covariance based structural equation modeling was used to analyze the data. Findings The subsequent results suggest that perceived consumer effectiveness and subjective norms have a direct positive influence on green consumer behavior, while the direct effect of environmental attitudes is insignificant. Practical implications Based on the key finding that one of the strongest antecedents is perceived consumer effectiveness, marketers could inspire young urban consumers by applying self-directed appeal to induce green consumer behavior. Originality/value This study is one of the first studies examining the antecedents of green consumption behavior using the framework of the theory of planned behavior that integrates both behavioral intention and reported behavior in the context of young urban consumers in South Asia. An insignificant direct influence of attitudes on green consumer behavior reinforces the attitude-behavior gap, specifically among young urban consumers in a collective society. The strong positive influence of perceived consumer effectiveness on green consumer behavior, on the other hand, extends the existing green consumer literature by empirically supporting the need for enhancing self-efficacy among young consumers to persuade them to practice green consumer behavior, especially where individuals face severe challenges of climate change and environmental deterioration.

Optimal pricing and ordering policies with different patience levels of consumers

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yuewu Tang ◽  
Yang Song ◽  
Chang Xu ◽  
Tijun Fan
Keyword(s):  
Continuous Distribution ◽  
Decision Time ◽  
Reserve Price ◽  
Optimal Price ◽  
Content Type ◽  
Strategic Consumers ◽  
Transaction Data ◽  
Ordering Policies ◽  
And Cluster Analysis ◽  
Different Levels

PurposeUsing information systems via data mining and cluster analysis technologies, consumers' strategic behaviour can be measured, and their patience levels can be accurately described. This paper investigates the retailer's pricing and ordering policies when facing strategic consumers with different levels of patience and discusses the impacts of consumers' patience levels and proportions on retailers' maximum expected profits.Design/methodology/approachBy cluster analysing transaction data on the number of websites visited, browsing time and purchase decision time, consumers' patience levels can be obtained. The authors formulate a newsvendor model considering customers' different patience levels. Three scenarios are investigated: two segments of consumers with two different levels of patience (Scenario I), multiple segments of consumers with different levels of patience (Scenario II) and a continuum of consumers whose levels of patience follow a continuous distribution (Scenario III). Then, general formulas are deduced for retailers' optimal prices, ordering quantities and profits.FindingsUnder Scenario I, if the proportion of less patient consumers is greater (less) than a threshold, the retailer's optimal price is equal to the less (more) patient consumers' reserve price. Under Scenario II, once the proportion of fully strategic consumers exceeds a certain threshold, the retailers' optimal price is equal to the fully strategic consumers' reserve price regardless of consumers' patience levels and proportions. Under Scenario III, the retailer's pricing and ordering policies depend on the distribution of their patience level.Originality/valueFew studies have considered consumers' different levels of patience when making retailer pricing and ordering decisions. In this paper, strategic consumer behaviour is measured, and consumers' patience levels and proportions are obtained by cluster analysing consumer transaction data recorded by an information system. Three scenarios in which strategic consumers may be heterogeneous and have different patience levels are investigated. The results can guide retailer decision-making.

Influencing factors on inter-organizational trust asymmetry behavior in construction projects

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yijing Li ◽  
Nan He ◽  
Huimin Li ◽  
Ziqi Liu ◽  
Jianyun Qi
Keyword(s):  
Structural Equation ◽  
Construction Projects ◽  
Negative Impact ◽  
Positive Influence ◽  
Equation Modeling ◽  
Future Research ◽  
Negative Effects ◽  
Content Type ◽  
Cooperative Relationships ◽  
Factors Influencing

Purpose The purpose of this paper is twofold: first, determining which factors critically influence asymmetrical trust behaviors in construction projects within the Chinese context; second, proposing corresponding measures to deal with the asymmetrical behaviors of both the owner and the contractor promoting cooperative relationships among participants in construction organizations. Design/methodology/approach A theoretical model was developed and a questionnaire survey was conducted with 183 professionals. The data collected were analyzed by the structural equation modeling (SEM) technique. Findings The results identified six critical factors influencing trust asymmetry behavior in construction projects. The power imbalance, information asymmetry and cognitive difference have a positive influence on both upward-trust behavior and downward-trust behavior in the construction organization, while the competence, performance capacity and relationship satisfaction have negative effects. Research limitations/implications This paper based on the assumption that trust asymmetry behavior has a negative impact on project performance, which should be further studied. Besides, future research may carry out a comparative analysis among the trusting relationships and behavior of different participants dynamically. Originality/value This paper contributes to the literature in three aspects. First, the factors influencing trust behavior in project organization have been identified for the first time. Second, a comprehensive view of trust asymmetry behavior has been theorized by SEM method. Third, the result bridges the existing gap caused by the lack of empirical evidence to understand the genetic mechanisms of trust asymmetry behavior in the construction industry.

The More Control, the Better?

2014 ◽  
Vol 26 (2) ◽  
pp. 81-91 ◽  
Author(s):  
Jeeyun Oh ◽  
Mun-Young Chung ◽  
Sangyong Han
Keyword(s):  
Mixed Design ◽  
Negative Effects ◽  
Story Structure ◽  
Content Type ◽  
High User ◽  
User Control ◽  
Rigorous Research ◽  
Control Versus ◽  
The Media ◽  
The Impact

Despite of the popularity of interactive movie trailers, rigorous research on one of the most apparent features of these interfaces – the level of user control – has been scarce. This study explored the effects of user control on users’ immersion and enjoyment of the movie trailers, moderated by the content type. We conducted a 2 (high user control versus low user control) × 2 (drama film trailer versus documentary film trailer) mixed-design factorial experiment. The results showed that the level of user control over movie trailer interfaces decreased users’ immersion when the trailer had an element of traditional story structure, such as a drama film trailer. Participants in the high user control condition answered that they were less fascinated with, absorbed in, focused on, mentally involved with, and emotionally affected by the movie trailer than participants in the low user control condition only with the drama movie trailer. The negative effects of user control on the level of immersion for the drama trailer translated into users’ enjoyment. The impact of user control over interfaces on immersion and enjoyment varies depending on the nature of the media content, which suggests a possible trade-off between the level of user control and entertainment outcomes.

Pengaruh Hedonisme dan Religiusitas Terhadap Perilaku Konsumtif Mahasiswa

2020 ◽  
Vol 4 (1) ◽  
pp. 39
Author(s):  
Arif Rahmat ◽  
Asyari Asyari ◽  
Hesi Eka Puteri
Keyword(s):  
Consumer Behavior ◽  
Positive Influence ◽  
Cluster Sampling ◽  
Sampling Techniques ◽  
Negative Effect ◽  
Consumptive Behavior

<div class="WordSection1"><p align="center"> </p><p><em>This study aims to analyze the influence of hedonism and religiosity on the consumptive behavior of students at the Faculty of Islamic Economics and Business, State Islamic Institute of Bukittinggi, West Sumatera, Indonesia. The population in this studi was 3,900 students and the sample was 363 of them that were selected by using the cluster sampling techniques. The results showed that hedonism has a positive influence on the consumptive behavior of students, it means that the higher of the level of hedonism, the higher the consumptive behavior of students. Meanwhile, religiosity was found to have the negative effect on the consumptive behavior of students, its meant that  the higher the level of religious students, the lower the consumptive behavior of students, this study suggests that hedonism and religiosity explain variations in student consumer behavior by 64.5%, while the remaining 35.5% % is explained by other variables not explored in this study. This finding shows that to manage consumption properly, students must control their hedonism and increase their level of religiosity so that they will far from consumptive habits.</em></p><p> </p></div><p align="center"><strong><br clear="all" /></strong></p>

Platform ecological circle for cold chain logistics enterprises: the value co-creation analysis

2020 ◽  
Vol 120 (4) ◽  
pp. 675-691 ◽  
Author(s):  
Benhong Peng ◽  
Yuanyuan Wang ◽  
Sardar Zahid ◽  
Guo Wei ◽  
Ehsan Elahi
Keyword(s):  
Influencing Factors ◽  
Resource Sharing ◽  
Structural Equation ◽  
Dynamic Capabilities ◽  
Positive Influence ◽  
Cold Chain ◽  
Enterprise Performance ◽  
Logistics Industry ◽  
Content Type ◽  
Logistics Enterprises

Purpose The purpose of this paper is to propose a framework of value co-creation in platform ecological circle for cold chain logistics enterprises to guide the transformation and development of cold chain logistics industry. Design/methodology/approach This paper establishes a conceptual framework for the research on the platform ecological circle in cold chain logistics, utilizes a structural equation model to investigate the influencing factors of the value co-creation of the platform ecological circle in the cold chain logistics enterprises and elaborates the internal relations between different influencing factors regarding the value co-creation and enterprises’ performance. Findings Results show that resource sharing in logistics platform ecological circle can stimulate the interaction among enterprises and this produces a positive influence on their dynamic capabilities, which, in turn, affects the they to work together to plan, implement and solve problems, so as to achieve the goal of improving enterprise performance. Practical implications The shared resources and value co-creation activities in the platform ecological circle are very important for the transformation and development of cold chain logistics enterprises. Therefore, enterprises should promote value co-creation through realizing resource sharing and creating a win-win cooperation mechanism. Originality/value This paper targets at incorporating the resource sharing in platform ecological circle for cold chain logistics enterprises, explores from an empirical perspective the role of the resource sharing in cold chain logistics enterprises in enhancing the dynamic capabilities of enterprises, thereby encouraging the value co-creation behavior, and ultimately boosts enterprise performance and stimulates business development.

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