Pursuing premium: comparing pre-owned versus new durable markets

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chadwick J. Miller ◽  
Daniel C. Brannon
Keyword(s):  
Brand Loyalty ◽  
Durable Goods ◽  
Consumer Preferences ◽  
Product Line ◽  
Data Set ◽  
Content Type ◽  
Nondurable Goods ◽  
The Relationship ◽  
Vintage Clothing

Purpose The purpose of this paper is to investigate whether consumers in pre-owned durable goods markets (such as pre-owned automobiles) purchase products with higher premium/luxury positioning in a vertical line-up compared to consumers in new durable goods markets. The moderating role of brand loyalty on choice is also investigated. Design/methodology/approach The hypotheses are tested using a data set that includes the sales of new and pre-owned vehicles from an independently owned automotive dealer in the Northwestern USA during the first nine months of 2017 (N = 200). An ordered logit regression is used to estimate the relationship between consumers’ purchase of pre-owned vs new vehicles and the premium-level of the model that they choose, while controlling for the vehicle price. Two experimental robustness tests are conducted to provide empirical evidence of the proposed theoretical process. Findings Consumers who purchased pre-owned vehicles chose models with higher premium/luxury positioning compared to consumers who purchased new vehicles, even when controlling for price. This effect was moderated by brand loyalty, such that consumers’ premium-level of purchase was magnified if they previously owned a vehicle of the same brand. The results of an experimental robustness test indicated that consumers’ preference for pre-owned vehicles with higher premium/luxury positioning was because of greater perceptions of the quality along the dimensions of versatility, performance and prestige. Practical implications Sellers of complex durable goods (e.g. automobiles) should consider segmenting their upselling strategies for pre-owned vs new products. They should specifically focus more effort on the upselling of pre-owned durables as buyers appear more likely to pursue premium/luxury alternatives compared to new durables. Further, they should focus upselling efforts for pre-owned durables on brand loyal consumers. Originality/value To the best of the authors’ knowledge, this work is the first to examine consumers’ desire for pre-owned durable goods with premium/luxury positioning in a vertical product line-up. Further, it is also the first to explore the role of brand loyalty in shaping consumer preferences for premium/luxury pre-owned durable goods. As such, it makes an important contribution to an emerging literature exploring the appeal of premium and luxury pre-owned goods. Much work in this area has focused on the motivations that consumers have for buying pre-owned premium and luxury nondurable goods, such as vintage clothing or accessories. By contrast, the present research investigates the appeal of premium/luxury positioning for complex, pre-owned durable goods (vehicles), which are more difficult for consumers to evaluate at the point-of-purchase.

R&D volatility and market value: the role of executive overconfidence

2019 ◽  
Vol 14 (2) ◽  
pp. 411-431
Author(s):  
Benlu Hai ◽  
Qingzhu Gao ◽  
Ximing Yin ◽  
Jin Chen
Keyword(s):  
Business Performance ◽  
Positive Impact ◽  
Market Value ◽  
Data Set ◽  
Content Type ◽  
Dynamic Perspective ◽  
Innovation Strategies ◽  
The Impact ◽  
The Relationship

Purpose Significant increase or decrease in research and development (R&D) expenditure may have an immense impact on market value. Based on the punctuated equilibrium theory, this paper aims to empirically analyze the impact of R&D volatilities on market value and the moderating effect of executive overconfidence. Design/methodology/approach The study uses the panel data set that covers 902 Shanghai and Shenzhen A-share manufacturing listed firms and multiple regression method to test the theoretical hypotheses. Findings The results show that both positive and negative R&D volatilities have a robust and significant positive impact on the market value. Further analysis shows that the executive overconfidence positively moderates the relationship between R&D volatilities and market value. Research limitations/implications In a rapidly changing and highly competitive environment, firms should recognize that the balance of innovation strategies will help to bring higher market value. Furthermore, firms could improve corporate governance to make the best of managerial characteristics, such as overconfidence, on the innovation decision-making process. Originality/value By pushing the static perspective to a dynamic perspective and empirically documenting the role of executive overconfidence, this study contributes to the literature on the relationship between R&D expenditure and market value, generating theoretical and practical insights for firms to improve innovation governance and innovation strategies to achieve better business performance.

scholarly journals Political connections: a threat to auditor independence?

2015 ◽  
Vol 5 (2) ◽  
pp. 222-246 ◽  
Author(s):  
Effiezal Aswadi Abdul Wahab ◽  
Mazlina Mat Zain ◽  
Rashidah Abdul Rahman
Keyword(s):  
Design Methodology ◽  
Institutional Environment ◽  
Audit Fees ◽  
Auditor Independence ◽  
Political Connections ◽  
Panel Regression ◽  
Data Set ◽  
Content Type ◽  
The Relationship

Purpose – The purpose of this paper is to examine whether political connections further impair auditor independence by investigating the relationship between non-audit fees and audit fees and as to whether political connections moderate such relationship. Design/methodology/approach – This study employs panel regression analysis. The panel data set consists of 379 firm-year observations for three years from year 2001 to 2003. Findings – Based on 379 firm-year observations for the period of 2001-2003, grounded on two proxies of political connections namely politically connected firms and the proportion of Bumiputras directors, the authors find a positive and significant relationship between non-audit fees and audit fees, and the relationship becomes weaker, only for Bumiputra-dominated firms connected firms. Originality/value – This study contributes to the extant literature by examining the role of political connections in the context of auditor independence. In addition, this study is conducted in Malaysia, which provides a unique institutional environment with the existence of political connections that is built on ethnic grounds.

scholarly journals Intellectual capital and performance in temporary teams

2019 ◽  
Vol 58 (3) ◽  
pp. 410-427 ◽  
Author(s):  
Maurizio Massaro ◽  
Francesca Dal Mas ◽  
Nick Bontis ◽  
Bill Gerrard
Keyword(s):  
Intellectual Capital ◽  
Organizational Capabilities ◽  
Data Set ◽  
Content Type ◽  
Research Context ◽  
Soccer Teams ◽  
And Performance ◽  
The Relationship ◽  
Temporary Teams

Purpose The purpose of this paper is to deepen resource-based view theory by analyzing how intellectual capital (IC) affects performance in temporary teams and by showing the moderating role of integrative mechanisms. Design/methodology/approach The research context focuses on 153 national teams of football (NTF), also referred to as national soccer teams, as an example of temporary groups. A partial least squares (PLS) methodology was utilized on a data set built from transfermarkt.com and FIFA world rankings. Three main hypotheses were developed and tested using first a PLS and then an OLS approach. Findings The results show how IC contributes to performance, extending the findings of previous studies to the context of temporary teams. Additionally, the results show how some integrative mechanisms such as assembly decisions and team leader experience influence temporary team performance by creating an interaction effect with existing IC. Originality/value This study contributes to IC theories for three reasons. First, it applies IC research to a specific research context: temporary teams, where specific organizational capabilities are required to coordinate resources. Second, the study analyzes the role of integrative mechanisms as moderators of the relationship between IC and performance in temporary teams. Third, the study focuses on NTF as an example of temporary teams.

scholarly journals Performance related pay, productivity and wages in Italy: a quantile regression approach

2016 ◽  
Vol 37 (2) ◽  
pp. 344-371 ◽  
Author(s):  
Mirella Damiani ◽  
Fabrizio Pompei ◽  
Andrea Ricci
Keyword(s):  
Labour Productivity ◽  
Productivity Improvement ◽  
Italian Economy ◽  
Data Set ◽  
Content Type ◽  
Individual Level ◽  
Wage Premiums ◽  
Union Governance ◽  
The Relationship

Purpose – The purpose of this paper is to analyse the role of performance-related pay (PRP) on productivity and wages of Italian firms. Design/methodology/approach – A unique data set for the Italian economy, obtained from the ISFOL Employer and Employee Surveys (2005, 2007, 2010), is used to estimate the relationship between PRP, labour productivity and wages, also controlling for an ample set of covariates. The authors performed standard quantile regressions (QRs) to investigate heterogeneity in associations of PRP with labour productivity and wages. In a second stage, the endogeneity of PRP was taken into account by using instrumental variable QR techniques. Findings – The econometric estimates suggests that PRP are incentive schemes that substantially lead to efficiency enhancements and wage gains. These findings are confirmed for firms under union governance and suggest that well-designed policies, that circumvent the limited implementation of PRP practices, would guarantee productivity improvement and wage premiums for employees. Research limitations/implications – The main limitation of the findings concerns PRP data, that do not offer statistical information on different types of schemes, at group or individual level. Originality/value – This paper is the first to investigate, on a national scale for the Italian economy, the role of PRP on both productivity and wages, in order to shed light on the efficiency and distributive implications, whereas most of the studies of related literature are restricted to one of those aspects.

The impact of relational bonds on brand loyalty: the mediating effect of brand relationship quality

2014 ◽  
Vol 24 (2) ◽  
pp. 184-204 ◽  
Author(s):  
Chao-Chin Huang ◽  
Shih-Chieh Fang ◽  
Shyh-Ming Huang ◽  
Shao-Chi Chang ◽  
Shyh-Rong Fang
Keyword(s):  
Relationship Quality ◽  
Brand Loyalty ◽  
Customer Retention ◽  
Retention Strategies ◽  
Content Type ◽  
Brand Relationship ◽  
Brand Relationship Quality ◽  
Retail Service ◽  
The Relationship

Purpose – While the literature attends to how customer retention strategies develop relationship quality (e.g. trust), it does not account for the potential mediator (s) in this relationship. The purpose of this paper is to examine the mediating role of brand relationship quality (BRQ) in the relationship between relational bonds and brand loyalty in retail service contexts. Design/methodology/approach – A total of 524 valid questionnaires from respondents aged between 15 and 24 are analyzed using structural equation modeling. Findings – First, BRQ significantly mediates the relationship between relational bonds and brand loyalty. Second, structural bonds are the only driver of attitudinal attachment; social and structural bonds lead to a sense of community. Third, attitudinal attachment is the main influence on both behavioral and attitudinal loyalty. Research limitations/implications – First, a focus on a single market segment, i.e. 15-24 year olds. Second the dimensions used to measure relational bonds and BRQ might not be applicable to other contexts. Third, does not consider potentially important moderator(s). Fourth, does not distinguish between store and product brands. Originality/value – This study makes the following contributions to the literature: First, demonstrates the importance of BRQ as a mediator in the relationship between relational bonds and brand loyalty. Second, elucidates the role of BRQ in establishing brand loyalty in three theoretical frameworks applied to retail service contexts. Third, suggests a more comprehensive view of brand loyalty involving both behavioral and attitudinal dimensions. Fourth, proposes the managerial implications of this work for the customer retention strategies of retail service firms.

scholarly journals The impact of brand love on brand loyalty: the moderating role of self-esteem, and social influences

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Minh T.H. Le
Keyword(s):  
Brand Loyalty ◽  
Social Influences ◽  
Self Esteem ◽  
Brand Love ◽  
Content Type ◽  
Brand Relationship ◽  
The Impact ◽  
The Relationship ◽  
Moderating Role

Purpose The purpose of this paper is threefold. First, it aims to clarify the moderating role of self-esteem (SE) and susceptibility to normative influence (SNI) in the relationship between brand love and brand loyalty. Second, the study proposes modeling the mediation role of brand love and outlining how SE and SNI affect the consumer-brand relationship. Finally, the study explores the impact of brand love on brand loyalty: the moderating role of self-esteem and social influences, as the literature regarding this is still lacking. Design/methodology/approach Data were collected via an online survey, which yielded 218 responses. Structural equation modeling was used to predict the research model. Findings The findings indicate that both SE and SNI mediate the relationship between brand love and brand loyalty. Additionally, consumers love the focal brands positively relates to SE and SNI. In return, SE and SNI lead to brand loyalty. The tight relationship of SE and SNI affects the connection between brand love and brand loyalty. Research limitations/implications The data has been collected in Vietnam, which creates a limitation regarding the study’s cross-cultural nature and the economic context. Thus, the study should be conducted in different cultures and economies (both developing and developed countries) to enhance the generalizability in consumer-brand relationships. Practical implications Brand managers should conduct more advertising in brand communities to enhance the influence of SNI and emphasize unique features of the brands, to attract consumers through the overlap of SE. Social implications The findings can contribute to enhancing unique brand identity and self-motivation will increase consumer loyalty, increasing the revenue of a specific brand. Moreover, as acceptable peers contribute to making purchase decisions, boosting the brand community will maintain current consumers and attract additional potential consumers from the current consumer relationships. Originality/value This study contributes to consumer psychology by indicating both SNI and SE as the mediators in the relationship between brand love and brand loyalty and how the consumer-brand relationship can be enabled.

Direct and indirect effect of brand experience on true brand loyalty: role of involvement

2018 ◽  
Vol 30 (3) ◽  
pp. 725-748 ◽  
Author(s):  
Veeva Mathew ◽  
Sam Thomas
Keyword(s):  
Brand Loyalty ◽  
Affective Commitment ◽  
Brand Experience ◽  
Product Involvement ◽  
Homogeneous Sample ◽  
Content Type ◽  
Brand Credibility ◽  
Product Approach ◽  
The Relationship

PurposeThe purpose of this paper is to investigate the role of product and customer dimensions in the contribution of brand experience to the formation of true brand loyalty. The dimensions included are brand credibility, affective commitment and involvement. Synthesising past studies, the researcher proposes brand credibility and affective commitment to mediate the relationship between brand experience and true brand loyalty. Furthermore, the researcher investigates the variation in hierarchical pattern, i.e. brand experience-brand credibility affective commitment-true brand loyalty, under different levels of involvement.Design/methodology/approachThe variations in hierarchy were compared by design. The authors investigated the variations in hierarchy on the basis of products which belong to different level of involvement, on the basis of individual differences in involvement, and on the basis of the interaction of product involvement and subject involvement. Multi-group invariance tests in SEM were used to explore model variations.FindingsThe hierarchy-of-effect model was found to vary based on the level of product involvement, subject involvement and interaction involvement. Three patterns of hierarchy have been observed: the first pattern was observed in high-high groups (both product involvement and subject involvement were high), the second pattern was observed in low-low groups (both product and subject involvements were low) and the third pattern among high-low or low-high groups.Practical implicationsThe variation observed highlights the need to segment the market by interaction involvement. This would be useful for managers engaged in building sustainable consumer-brand relationships.Originality/valueThis study considered the interaction of product approach and subject approach in defining involvement which is rarely attempted in research. The study also integrates the variations in the role of customer dimensions, namely involvement, brand credibility and affective commitment with the relationship between the central constructs brand experience and true brand loyalty. The variations observed are among a socio-economically homogeneous sample of respondents.

Innovation, firms’ performance and environmental turbulence: is there a moderator or mediator?

2019 ◽  
Vol 22 (1) ◽  
pp. 213-232 ◽  
Author(s):  
Lejla Turulja ◽  
Nijaz Bajgoric
Keyword(s):  
Business Performance ◽  
Heterogeneous Firms ◽  
Environmental Turbulence ◽  
Equation Modeling ◽  
Data Set ◽  
Content Type ◽  
Process Innovations ◽  
Product And Process ◽  
The Relationship

PurposeThe purpose of this paper is to draw on dynamic capability view and contingency theory to clarify the nature of the effect of environmental turbulence on the relationships between firm’s both product and process innovations and business performance.Design/methodology/approachThe authors developed and empirically tested two structural models using structural equation modeling approach. The first model deals with both product and process innovations as the mediators between environmental turbulence and business performance. The second model considers the moderating effect of environmental turbulence between innovation and business performance.FindingsThe findings show that environmental turbulence does not moderate the relationship between innovation and business performance. The authors have found a clear role of environmental turbulence in boosting innovation rather than moderating the relationship between innovation and performance.Research limitations/implicationsThe data set is a cross-section of heterogeneous firms regarding the industry.Practical implicationsManagers should be aware of the importance of the innovation for the environmental turbulence and dynamism counteracting. The results imply a negative influence of environmental turbulence on business performance. However, with the innovation in the equation, this influence can be positive, because it boosts firms to innovate and though to achieve better business performance.Originality/valueIt contributes the management and innovation research and practice through offering insights into the role of environmental turbulence in product innovation, process innovation as well as organizational business performance through comprehensive analysis of mediation and moderation effects between the observed constructs.

scholarly journals Trust, religiosity, and relationship marketing: a conceptual overview of consumer brand loyalty

2017 ◽  
Vol 12 (3) ◽  
pp. 320-339 ◽  
Author(s):  
Rula M. Al Abdulrazak ◽  
Ayantunji Gbadamosi
Keyword(s):  
Relationship Marketing ◽  
Brand Loyalty ◽  
Brand Management ◽  
Content Type ◽  
Relationship Model ◽  
Role Of Religion ◽  
The Relationship ◽  
Considerable Depth ◽  
Brand Preferences

Purpose Over the years, a considerable depth of research has established the link between trust, commitment and relationship marketing and its relevance to consumers’ brand preferences. Nonetheless, there is a dearth of research on how they are linked to religiosity. Accordingly, this paper aims to address the palpable gap. Design/methodology/approach This paper is conceptual and draws from the eclectic review of the extant literature that revolves around the key themes associated with the topic. Findings The paper emphasises the significance of trust and religiosity in consumers’ commitment to specific market offerings and brands which invariably strengthen relationship marketing. A model entitled Brand-faith Relationship model (BFR) is proposed to understand brand positioning in the marketplace in relation to faith. With this model, a four-category typology of brand position scenarios is suggested in this paper. Passive brand-faith relationship, faith trust established in the absence of brands, brand loyalty without any faith associations and brand loyalty, with positive brand-faith relationship. Practical implications This paper has significant implications for brand management in relation to segmentation, targeting and the positioning of brands in the marketplace. It also raises marketers’ consciousness on the potency of trust embedded in consumers’ faith/religiosity in their brand preferences. Originality/value This paper explores the concepts of trust and consumers’ brand choices within the relationship marketing literature vis-à-vis the role of religion, which is rarely examined.

Price promotions and brand loyalty

2015 ◽  
Vol 49 (5/6) ◽  
pp. 736-759 ◽  
Author(s):  
Janine Empen ◽  
Jens-Peter Loy ◽  
Christoph Weiss
Keyword(s):  
Brand Loyalty ◽  
Product Line ◽  
Consumer Loyalty ◽  
Price Promotions ◽  
Content Type ◽  
Product Line Management ◽  
Promotional Strategies ◽  
Corporate Brands ◽  
The Relationship ◽  
Line Management

Purpose – This article aims to estimate the relationship between brand loyalty and price promotions on the German yoghurt market. It considers consumer loyalty to various corporate brands and their respective sub-brands to analyze promotional strategies between and within certain corporate brands with a larger loyal consumer segment and a moderate strength of consumer loyalty are well suited for effective price promotions following the idea of loss leader by Lal and Matutes (1994). Design/methodology/approach – The paper’s approach follows Allender and Richards’ (2012) and extends to explicitly considering the product line management of every manufacturer in the market. In the first step, a random coefficient logit specification is estimated to compute measures of brand loyalty for each brand. In the second step, the relationship between brand loyalty measures and the frequency and depth of price promotions is analysed. Findings – The results suggest that weaker corporate brands are promoted more aggressively supporting the model hypotheses by Koças and Bohlmann (2008). Within the manufacturer’s product line, sub-brands with a larger loyal consumer segment and a moderate strength of consumer loyalty are more often used for effective price promotions which reflects the idea of loss leading first introduced by Lal and Matutes (1994). Research limitations/implications – The results are limited to a static relationship between brand loyalty and price promotions. Analyzing the dynamics of the relationship between brand loyalty and price promotions should prove fruitful in enhancing the understanding of retailer strategies and provides additional implications for managerial decisions in retailing. Practical implications – Managers need to be more aware of the linkages between product line management and promotional strategies. Changes in the product line management may require a redirection of the promotional measures and strategies. Social implications – Consumer behavior with respect to brand loyalty to some extent determines price promotional strategies of retailers. The promotional strategies provide opportunities to save expenditures, especially for non-loyal and low income households. Originality/value – Matching and analyzing two detailed (consumer, retail) scanner data sets to investigate the relationship between the measures of brand loyalty and the retailers’ price promotional strategies. Novel is the modeling of two different dimensions of brand loyalty (size and strength) and the consideration of sub-brands. The results clearly show that promotional strategies vary not only between corporate brands but also between sub-brands of the same corporate brand.

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