Feeling nickeled and dimed – consequences of drip pricing

2015 ◽  
Vol 25 (5) ◽  
pp. 621-635 ◽  
Author(s):  
Thomas Robbert
Keyword(s):  
Structural Equation ◽  
Perceived Value ◽  
Purchase Intentions ◽  
Equation Modeling ◽  
Content Type ◽  
Price Consciousness ◽  
Partitioned Pricing ◽  
Telecommunication Companies ◽  
Price Partitioning ◽  
Drip Pricing

Purpose – In drip pricing, companies advertise low prices for products or services and then tack on additional surcharges later in the purchase process. This tactic has not only become popular for airlines but also for other online services, such as retailers and telecommunication companies. Despite the widespread use of drip pricing in the marketplace, little is known about its effects on consumer behavior. The purpose of this paper is to compare the effects of drip pricing with those of price partitioning. Specifically, it elaborates on perceived value, perceived deception, purchase intentions, and the moderating effect of price consciousness. Design/methodology/approach – The paper develops a conceptual framework and tests four hypotheses with an experimental study on a purchase decision for a continental flight booked through an online travel agent. The experiment is based on a between-subjects design with two groups (n=130). The data are analyzed with multivariate statistics and structural equation modeling. Findings – The findings reveal that drip pricing for service offerings leads to inferior results compared with partitioned pricing in terms of perceived value, perceived deception, and, ultimately, purchase intentions. The findings also indicate that the effects differ depending on the customer’s price consciousness. Originality/value – The study draws from previous studies on partitioned pricing and replicates their findings. However, it is one of the first studies to elaborate on moderators and mediators of the consequences of drip pricing in a service context.

The effects of price consciousness and sale proneness on purchase intention towards expiration date-based priced perishable foods

2015 ◽  
Vol 117 (2) ◽  
pp. 793-804 ◽  
Author(s):  
Faruk Anıl Konuk
Keyword(s):  
Purchase Intention ◽  
Structural Equation ◽  
Structural Model ◽  
Purchase Intentions ◽  
Equation Modeling ◽  
Expiration Date ◽  
Convenience Sample ◽  
Content Type ◽  
Price Consciousness ◽  
Positive Effect

Purpose – The purpose of this paper is to examine the effects of price consciousness and sale proneness on purchase intentions regarding with expiration date-based priced perishable foods. Design/methodology/approach – Data were collected from a convenience sample of consumers with structured questionnaires. Structural equation modeling was used in order to test the proposed hypotheses. Findings – Results of a structural model reveal positive relationship between price consciousness and sale proneness. The findings also confirm the effect of price consciousness on purchase intentions toward expiration date-based priced perishable foods. On the other hand, the results have not support the positive effect of sale proneness on purchase intentions. Originality/value – To the knowledge, this is the first study which has examined the relationships between price consciousness, sale proneness and purchase intentions in the context of expiration date-based pricing.

Factors influencing consumers’ attitudes and purchase intentions of e-deals

2015 ◽  
Vol 33 (5) ◽  
pp. 763-783 ◽  
Author(s):  
Isaac Cheah ◽  
Ian Phau ◽  
Johan Liang
Keyword(s):  
Purchase Intention ◽  
Structural Equation ◽  
Strong Predictor ◽  
Perceived Value ◽  
Purchase Intentions ◽  
Content Type ◽  
Price Consciousness ◽  
Factors Influencing ◽  
Convenience Sampling ◽  
Practical Implications

Purpose – The purpose of this paper is to identify the key antecedents of attitude towards electronic deals (e-deals) and factors influencing purchase intention of e-deals. Specifically, perceived value and price consciousness will be tested as antecedents of attitudes towards e-deals. Attitudes towards e-deals, subjective norms, and perceived behavioural control are proposed to have strong influences upon purchase intention. The theory of planned behaviour (TPB) provides the theoretical underpinning of the conceptual framework. Design/methodology/approach – Data were collected through convenience sampling. Overall, 611 valid responses of 780 distributed surveys were collected. Only 426 e-deals users were analysed by using structural equation modelling to test the hypotheses. Findings – It is found that perceived value is a strong predictor of attitudes towards e-deals. Another finding also indicates that attitudes towards e-deals and normative influence positively affect consumers’ purchase intention towards e-deals. Practical implications – Practitioners are advised to integrate social media (e.g. Facebook or Twitter) and online communities to approach the “leader” to influence new potential consumers to purchase e-deals. It is also important to maintain the good value of e-deals and emphasise the huge benefits of using e-deals to persuade consumers to purchase it. Originality/value – The originality of this study lies in extending the TPB as a robust measurement to investigate online shopping behaviour in the context of e-deals.

Relation between Chinese consumers’ ethical perceptions and purchase intentions

2019 ◽  
Vol 31 (3) ◽  
pp. 670-690 ◽  
Author(s):  
Muhammad Kashif Javed ◽  
Ma Degong ◽  
Talat Qadeer
Keyword(s):  
Structural Equation ◽  
Developing Economies ◽  
Purchase Intentions ◽  
Equation Modeling ◽  
Brand Trust ◽  
Ethical Perceptions ◽  
Chinese Consumers ◽  
Content Type ◽  
Highly Educated ◽  
Mediating Role

Purpose Most business-related studies on ethics focus on consumers in developed western economies but ignore developing economies. Therefore, to fill this void in the literature and address the concerns of prior studies, the purpose of this paper is to examine the ethical perceptions of Chinese consumers as an example of effective and efficient management of company/brand strategies in an economy experiencing rapid socioeconomic growth. Design/methodology/approach This study examines 328 Chinese consumers’ purchase intentions based on their ethical perceptions toward Apple and P&G through mediating (i.e. consumer–corporate identification (CCI) and brand trust) and moderating (i.e. consumer gender, age, education and residence) effects. Structural equation modeling is used to analyze the constructs and overall model. Findings The ethical perceptions of consumers translate into purchase intentions, both at the corporate and product brand levels. Similarly, a significant direct relationship between CCI and brand trust reveals that corporate-level ethical identification is a trivial matter to customers, although these perceptions do apply to product brands under a corporate umbrella. Furthermore, to identify target groups of Chinese consumers who are receptive to ethical appeals, moderating variables were found to be useful. Originality/value The results confirm that the mediating role of CCI is more influential in the context of Chinese consumers’ ethical perceptions, followed by brand trust. In relation to demographics, ethical perceptions affect CCI and brand trust more positively in females and highly educated consumers in China. Similarly, the relationship between consumers’ ethical perception and their trust in brand is revealed more influential in urban residents than they do in rural. This broadens the applications and contexts of this research model. The results provide managerial guidance on enhancing potential ethical perceptions.

Users’ response toward online doctor consultation platforms: SOR approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sandeep Goyal ◽  
Sumedha Chauhan ◽  
Parul Gupta
Keyword(s):  
Social Influence ◽  
Behavioral Intention ◽  
Structural Equation ◽  
Health Anxiety ◽  
Perceived Value ◽  
Perceived Usefulness ◽  
Equation Modeling ◽  
Technology Usage ◽  
Content Type ◽  
Behavioral Attributes

PurposeThis study aims to investigate the external and internal stimuli, which affect the organismic experiences of the users and thereby influence their response in terms of behavioral intention toward the use of online doctor consultation platforms.Design/methodology/approachThe study operationalized the stimulus–organism–response framework for the research model and surveyed 357 users in India who had experienced online doctor consultation platforms. The analysis has been done using the structural equation modeling approach.FindingsThe authors’ main results indicate the following key points. One, perceived usefulness, social influence, health anxiety, offline consultation habit and perceived technology usage risk are significant predictors of perceived value. In contrast, perceived ubiquity is identified to be an insignificant predictor of perceived value. Second, social influence and perceived technology usage risk have significant influence on trust. However, perceived usefulness is not a significant predictor of trust.Research limitations/implicationsThis study contributes to the theory by integrating technology-oriented factors with behavioral attributes for determining the behavioral intention of users toward the online doctor consultation platforms.Practical implicationsThe managerial contributions of this study involve highlighting those technology-oriented and behavioral elements, which can be targeted to attract more users toward these platforms.Originality/valueThis is an original study that has looked beyond the role of technology-oriented factors in influencing the perceived value and trust elements while investigating the behavioral intention among the users toward the online doctor consultation platforms.

scholarly journals Converting hotels website visitors into buyers

2019 ◽  
Vol 33 (1) ◽  
pp. 129-159
Author(s):  
Gomaa M. Agag ◽  
Mohamed A. Khashan ◽  
Nazan Colmekcioglu ◽  
Ahmed Almamy ◽  
Nawaf S. Alharbi ◽  
...  
Keyword(s):  
Information Seeking ◽  
Structural Equation ◽  
Perceived Value ◽  
Online Reviews ◽  
Equation Modeling ◽  
Cross Culture ◽  
Content Type ◽  
Two Samples ◽  
Hotel Websites

Purpose Despite the increasing utilization of webpages for the purposes of information seeking, customers’ concerns have become a crucial impediment for online shopping. The purpose of this paper is to examine the influence of the effectiveness of web assurance seals services (WASS) and customers’ concerns on customer’s willingness to book hotels through perceived website trust and perceived value. Design/methodology/approach A questionnaire was administrated to measure the study variables. Using partial least squares–structural equation modeling approach to analyze the data collected from 860 users of online hotel websites. Findings The results indicate that WASS influence positively on perceived website trust and negatively on consumers’ concerns. As well as, perceived value and trust play a mediating role in the link between WASS and consumers’ concerns and their intentions. Finally, perceived website trust and perceived value have greater effect on intention to book hotel for low-habit consumers. Research limitations/implications This study ignored the cross-culture issue as it concentrates on the customers from developing countries, so further research may need to compare between two or more than two samples from different societies that could give a significant insights. Second, this study stresses on the WASS to predict customers booking intentions that indicates significant results, so further research may need to examine the role of online reviews as a predictor of customers purchase decision as well. Originality/value To the authors’ best knowledge, this is the first empirical research that investigates and examines the influence of the effectiveness of WASS and consumers’ concerns on consumers’ intentions through perceived value and trust. This research also investigates the moderating role of habit in the link between perceived website, perceived value and consumers’ intentions.

Mobile-banking adoption: empirical evidence from the banking sector in Pakistan

2018 ◽  
Vol 36 (7) ◽  
pp. 1386-1413 ◽  
Author(s):  
Maya F. Farah ◽  
Muhammad Junaid Shahid Hasni ◽  
Abbas Khan Abbas
Keyword(s):  
Perceived Risk ◽  
Structural Equation ◽  
Banking Sector ◽  
Perceived Value ◽  
Equation Modeling ◽  
Mobile Banking ◽  
Content Type ◽  
Actual Use ◽  
Use Behavior ◽  
The Impact

Purpose The purpose of this paper is to study the important factors which help explain consumer intention and use behavior in mobile banking (m-banking) adoption. All constructs of the unified theory of acceptance and use of technology 2 are studied. Non-monetary value is studied through perceived value. Trust and perceived risk are also included to predict intention. Design/methodology/approach A questionnaire was utilized to evaluate customer responses on a five-point Likert scale. A convenience sampling technique was used to collect data from a sample of 490 respondents in Pakistan. The data were analyzed using AMOS and SPSS for Cronbach’s α, CR, CMV, AVE, Harmon’s single factor test, correlation and structural equation modeling. Findings The results of the study show that most of the predictors of intention, including perceived value, performance expectancy, habit, social influence, effort expectancy, hedonic motivation (except for facilitating condition), perceived risk and trust, are significant. All predictors of usage behavior are significant. Research limitations/implications A cross-sectional study was conducted due to time constraints. Practical implications Bank managers must focus on improving customers’ intentions to use m-banking as well as on providing facilitating conditions to increase its actual use. To boost mobile banking, banks’ management must consider the customers’ habits while designing their m-banking products. Originality/value The findings of this paper are not only interesting in terms of boosting m-banking diffusion rate, but also in terms of financial inclusion of the vast majority of mobile users. Further the impact of intention, facilitating condition and habit were checked on actual use behavior since people tend not always to act upon their intentions.

Are functional, emotional and social values interrelated? A study of traditional guesthouses in Iran

2020 ◽  
Vol 32 (9) ◽  
pp. 2857-2880 ◽  
Author(s):  
S. Mostafa Rasoolimanesh ◽  
Mohmmad Iranmanesh ◽  
Muslim Amin ◽  
Kashif Hussain ◽  
Mastura Jaafar ◽  
...  
Keyword(s):  
Structural Equation ◽  
Social Values ◽  
Perceived Value ◽  
Social Value ◽  
Equation Modeling ◽  
Content Type ◽  
Theoretical Contribution ◽  
Emotional Value ◽  
Moderating Role

Purpose This study aims to examine the interrelationships between the dimensions of perceived value, including functional, emotional and social values. The mediating role of emotional value between functional and social values and satisfaction have been hypothesized and tested. In addition, this study examines the moderating role of social value for the effect of emotional value on satisfaction. Design/methodology/approach Data for this study were collected from guests staying at two traditional guesthouses in Kashan, Iran. The authors applied partial least squares structural equation modeling to analyze 316 questionnaires completed by participants and for hypotheses testing. Findings The authors found positive and direct effects of all dimensions of perceived value on satisfaction. Moreover, the results indicated positive and significant indirect effects for functional and social values on satisfaction through emotional value. The findings demonstrated positive and strong effects of functional and social values on emotional value. The results do not support a moderating role for social value on the relationship between emotional value and satisfaction. In addition, the findings showed a strong and positive effect for satisfaction on revisit intentions. Originality/value This study makes a unique theoretical contribution to the perceived value literature by investigating the interrelationships between dimensions of perceived value. Moreover, this study explores several practical implications of these findings.

The effect of experience quality on customer perceived value and customer satisfaction and its impact on customer loyalty

2020 ◽  
Vol 32 (6) ◽  
pp. 1525-1540
Author(s):  
Andriani Kusumawati ◽  
Karisma Sri Rahayu
Keyword(s):  
Customer Satisfaction ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Perceived Value ◽  
Statistical Technique ◽  
Equation Modeling ◽  
Content Type ◽  
Customer Perceived Value ◽  
Perceived Values ◽  
The Relationship

PurposeTo test the effect of experience quality on customer perceived value and customer satisfaction and its impact on customer loyalty to the visitors of natural nuanced outdoor cafés in the hilly areas of Joyo Agung, Malang.Design/methodology/approachThis study uses four variables, namely experience quality, customer perceived value, customer satisfaction, and customer loyalty. The population used in this research was all customers or visitors who buy and enjoy the products and services provided by the natural outdoor cafés in Malang. This study used structural equation modeling (SEM) as inferential statistical technique.Findings1) Quality experience has a significant effect on customer perceived value, customer satisfaction, and customer loyalty; 2) customer perceived value has a significant effect on customer satisfaction and customer loyalty; and 3) customer satisfaction has a significant effect on customer loyalty.Originality/valueBased on the results of previous research and the phenomenon that has been described previously, the research gaps found in this study are: (1) the relationship between experience quality and customers’ perceived values. (2) There are differences in the relationship between experience quality and customer satisfaction found in the research, which examines the effect of experience quality on customer loyalty. (3) Experience quality and customer loyalty variables still differ in the research concerning the effect of experience quality on customer loyalty. (4) The influence of customer satisfaction and customer loyalty is still different in the research results regarding the effect of customer satisfaction on customer loyalty.

scholarly journals What kind of video gamer are you?

2019 ◽  
Vol 36 (1) ◽  
pp. 218-227 ◽  
Author(s):  
Nadia Jimenez ◽  
Sonia San-Martin ◽  
Carmen Camarero ◽  
Rebeca San Jose Cabezudo
Keyword(s):  
Video Game ◽  
Purchase Intention ◽  
Structural Equation ◽  
Group Analysis ◽  
Purchase Intentions ◽  
Equation Modeling ◽  
Simulation Games ◽  
Content Type ◽  
Social Motivations ◽  
Video Gamers

PurposeThis paper aims to attempt to understand the extent to which the effect of motivations on purchase intention varies for diverse segments of video gamers (depending on their personality).Design/methodology/approachInformation was collected from 511 Spanish video game consumers. Structural equation modeling, clustering and multi-group analysis were then conducted to compare results between segments of gamers.FindingsResults show that hedonic, social and mainly addiction motivations lead to purchase intention of game-related products. Moreover, the authors identify a typology of gamer that gives rise to differences in motivations-purchase intention links: Analysts include individuals who are essentially conscientious, prefer inventive or cognitive and simulation games and whose behavior is more influenced by hedonic and social motivations to play; socializers comprise individuals who are mainly extrovert and emotionally stable gamers and who prefer sports and strategy games. The motivations to play that affect their purchase intentions are mainly social; and sentinels include individuals that are unmindful and introvert, prefer inventive, cognitive, sports and simulation games, and whose social motivations drive their purchase intentions.Originality/valueThere are 2,200 million video gamers around the world, although it is assumed that this vast market is not homogeneous, which has implications for consumer motivations and purchase intention. However, the currently available classifications that address this challenge are rather limited. In this sense, the present paper provides valuable insights into understanding how personality offers a useful variable to segment consumers in the video game industry and how it moderates the effect of motivations on purchase behavior.

The effects of hotel green business practices on consumers’ loyalty intentions: an expanded multidimensional service model in the upscale segment

2020 ◽  
Vol 13 (12) ◽  
pp. 3787-3807
Author(s):  
Guy Assaker
Keyword(s):  
Service Quality ◽  
Structural Equation ◽  
Perceived Value ◽  
Measurement Model ◽  
Equation Modeling ◽  
Business Practices ◽  
Service Model ◽  
Content Type ◽  
Green Practices ◽  
Hotel Service Quality

Purpose This study aims to present and empirically examines an expanded service model that incorporates green hotel practices together with a multidimensional/higher-order measurement model of service quality, as well as perceived value and satisfaction, to examine the relationships among these variables and hotel consumers’ loyalty/behavioral intentions (BI). Design/methodology/approach The model was examined using partial least squares structural equation modeling (PLS-SEM) using data gathered in August 2018 from 200 surveys completed by UK subjects who stayed at upscale European hotels. Findings The results of PLS-SEM found that hotel service quality has a direct and positive effect on perceived value, satisfaction and BI. There is also an indirect effect of service quality on BI through perceived value and satisfaction, while green practices only had a direct effect on perceived value, not satisfaction or BI. Research limitations/implications This study offers new insights into the network of causal relationships among determinants of hotel consumers’ BI. The results offer hotel operators a better understanding of specific green practices and service quality attributes they can use to more favorably influence consumers’ intentions to revisit the property and recommend them through positive word-of-mouth. Originality/value This research is particularly relevant in today’s reality characterized by travelers’ growing concern for green issues and business’ responsibilities toward the environment. Moreover, unlike previous studies, this study assumes a multidimensional scheme for service quality, further enhancing the understanding of hotel consumers’ BI relationships.

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