Consumer responses to corporate offshoring practices

2015 ◽  
Vol 53 (3) ◽  
pp. 698-712 ◽  
Author(s):  
Silvia Grappi ◽  
Simona Romani ◽  
Richard P Bagozzi
Keyword(s):  
Regulatory Focus ◽  
Regulatory Fit ◽  
Point Of View ◽  
Consumer Evaluations ◽  
Content Type ◽  
Consumer Responses ◽  
The Public ◽  
Psychological Mechanisms ◽  
Psychology Theory ◽  
A Company

Purpose – The purpose of this paper is to investigate consumer responses to company communication of offshoring strategies and tries to discover which psychological mechanisms govern these responses. To do these, the authors examine offshoring strategy communication from the point of view of Regulatory Focus Theory. Design/methodology/approach – The authors tested the hypotheses in two different studies. Study 1 examines the associations between company offshoring motives and consumer’s prevention or promotion inferences about the company’s practices. Study 2 tests if and how the interaction effect between respondents’ self-regulatory focus and the company offshoring motive affects respondents’ attitude toward the offshoring company. Findings – The study demonstrated that each of three offshoring motives activates unique self-regulatory orientations (promotion or prevention focus) in consumers, and regulatory fit positively affects consumer attitudes toward the offshoring company. Practical implications – Results suggest how to communicate company offshoring decisions to consumers. By trying to instill a particular regulatory focus in the public with their communication tools, companies can create a better match in the public eye, gaining more positive consumer evaluations. Originality/value – This research shows the mechanisms through which consumers respond differently to specific offshoring motives communicated by a company. By building on psychology theory, the study gains insights into the consumer reactions to company offshoring and, to the knowledge, no research to date has examined these mechanisms.

scholarly journals Effects of country-of-origin stereotypes on consumer responses to product-harm crises

2018 ◽  
Vol 35 (3) ◽  
pp. 362-389 ◽  
Author(s):  
Camilla Barbarossa ◽  
Patrick De Pelsmacker ◽  
Ingrid Moons
Keyword(s):  
Country Of Origin ◽  
Product Category ◽  
Moderating Effects ◽  
Content Type ◽  
Consumer Responses ◽  
Consumer Ethnocentrism ◽  
Blame Attributions ◽  
Psychological Mechanisms ◽  
Consumer Country ◽  
A Company

Purpose The purpose of this paper is to investigate “how” and “when” the stereotypes of competence and warmth, that are evoked by a foreign company’s country-of-origin (COO), affect blame attributions and/or attitudes toward a company’s products when a company is involved in a product-harm crisis. Design/methodology/approach Study 1 (n=883) analyzes the psychological mechanisms through which perceived COO competence and warmth differently affect blame attributions and evaluative responses. Study 2 (n=1,640) replicates Study 1’s findings, and it also investigates how consumer ethnocentrism, animosity toward a country, and product category characteristics moderate the hypothesized COO’s effects. Findings COO competence leads to more favorable attitudes toward the involved company’s products. This effect increases when the company sells high-involvement or utilitarian products. COO warmth leads to more favorable attitudes toward the involved company’s products directly as well as indirectly by diminishing blame attributions. These effects increase when consumers are highly ethnocentric, or the animosity toward a foreign country is high. Originality/value This paper frames the investigation of COO stereotypes in a new theoretical and empirical setting, specifically, a product-harm crisis. It demonstrates that consumers differently evaluate a potential wrongdoing company and its harmful products in a product-harm crisis based on their perceptions of a company’s COO competence and warmth. Finally, it defines the moderating effects of individual, consumer-country-related and product characteristics on the hypothesized COO effects.

Effects of absence positioning of unknown product ingredients on consumer evaluations

2018 ◽  
Vol 52 (9/10) ◽  
pp. 2128-2150
Author(s):  
Timucin Ozcan ◽  
Ahmet M. Hattat ◽  
Michael Hair
Keyword(s):  
Regulatory Focus ◽  
Initial Study ◽  
Positive Influence ◽  
Mediation Effect ◽  
Amazon Mechanical Turk ◽  
Initial Attempt ◽  
Experimental Conditions ◽  
Consumer Evaluations ◽  
Content Type ◽  
Study Results

Purpose This paper aims to investigate the effectiveness of positioning unknown ingredients either with the presence or absence of framing; both are common in marketplace (e.g. Secret® deodorant visibly claims “aluminum chlorohydrate” while Crystal® promotes “no aluminum chlorohydrate”). Design/methodology/approach The authors used three scenario-based experiments. The participants were recruited through Amazon Mechanical Turk online panel and randomly assigned to a variety of experimental conditions. Findings Initial study results show that consumers have more positive evaluations and purchase intentions for absence positioning than presence positioning, because absence positioning induces greater perceptions of protection. In the second study, these results are extended using multiple ingredients, along with competitor products; they show that absence positioning leads to better evaluations than presence positioning and replicate the mediation effect that was found earlier. In the final study, through manipulating participants’ regulatory focus, the authors show that absence-positioned ingredients have a higher choice share when consumers are in the prevention mindset. Conversely, when customers are in promotion mindset and looking for better performance, presence positioning of ingredients seems to have higher choice shares. Research limitations/implications The research has implications for product development, promotions, labeling and packaging, showing the positive influence of absence positioning of unknown ingredients. Practical implications Marketers may emphasize the absence of unknown ingredients in their products instead of following a strategy that highlights the inclusion of them. Originality/value To the authors’ extant knowledge, this research is an initial attempt to understand how consumers react to promotion of product ingredients. In addition, it contributes to the literature in unknown attributes by showing that absence positioning of certain types of ingredients is perceived better than presence framing of them.

Cue-less consumers in factory outlet stores: reference price effects on consumer evaluations when semantic phrases are missing

2018 ◽  
Vol 27 (4) ◽  
pp. 415-426
Author(s):  
Jay P. Carlson ◽  
Larry D. Compeau
Keyword(s):  
Qualitative Study ◽  
Design Methodology ◽  
Consumer Evaluations ◽  
Content Type ◽  
Consumer Responses ◽  
Semantic Cues ◽  
Reference Prices ◽  
Price Effects ◽  
The Common ◽  
To Come

Purpose Prior research has demonstrated that reference prices can affect consumer responses, but the reference prices examined have been presented along with semantic cues [e.g. manufacturer’s suggested retail price (MSRP) and Compare At]. This study is unique in investigating the effects of reference prices that do not include a semantic cue (i.e. “cue-less”) on consumers’ responses. It also studies consumers’ beliefs about factory outlet stores, a seldom-studied store type in which cue-less reference prices are used. Design/methodology/approach One qualitative study and one experiment were carried out in this research. Findings The qualitative study revealed that a price tag including cue-less reference prices was unlikely to be viewed as a seller mistake or with suspicion, but nonetheless did confuse some respondents. The experiment demonstrated that while consumers find cue-less reference prices to be somewhat less believable that high MSRPs, these beliefs do not appear to come into play when consumers judge attractiveness (e.g. perceived value). Additionally, the results suggest that consumers believe that a product available for sale in a factory outlet store is likely to have been previously available at a different type of store. Originality/value This research advances the theory of the effects of reference prices on consumers’ responses by examining the common practice of not labeling reference prices with semantic cues. It also extends the literature regarding consumer beliefs about factory outlet stores.

The organizational framing effect on consumer evaluations of corporate donations

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Felix Septianto ◽  
Gavin Northey ◽  
Scott Weaven
Keyword(s):  
Message Framing ◽  
Framing Effect ◽  
Consumer Evaluations ◽  
Content Type ◽  
Differential Effects ◽  
Organizational Framing ◽  
Managerial Implications ◽  
Purchase Likelihood ◽  
Moral Elevation ◽  
A Company

Purpose This paperaims to investigate a novel expectation by examining how framing a company as its constituent members (members frame) versus an organization (organization frame) can influence consumer evaluations of a product or service from this company. Design/methodology/approach Four studies were conducted examining the effectiveness of an organization (vs members) frame in a between-subjects experimental design (a pilot study, Studies 1a, 1b and 2). Study 2 also tested the moderating role of donation strategies (amount-focused vs frequency-focused). Findings Results show a members (vs organization) frame leads to a higher purchase likelihood of a product from a company engaging in corporate donations. Further, this framing effect is mediated by increased levels of consumers’ perceptions about how committed the company is to the cause and the emotion of moral elevation in response to the company’s corporate donations. Moreover, this effect is moderated when the company uses a frequency-based (vs amount-based) donation strategy. Research limitations/implications This research contributes to the literature on message framing by demonstrating how the same information about a company may lead to differential effects on consumer evaluations, depending on whether the company is framed as its constituent members versus an organization. Practical implications This paper presents significant managerial implications for small companies, in which the owner is the company, about how they can effectively communicate corporate donations to the consumers. Originality/value This research provides a novel perspective on how the same information about a company may lead to differential effects on consumer evaluations, particularly in the context of corporate donations.

Analogical reasoning and regulatory focus: using the creative process to enhance consumer-brand outcomes within a co-creation context

2020 ◽  
Vol 54 (6) ◽  
pp. 1355-1381 ◽  
Author(s):  
Kelly Naletelich ◽  
Nancy Spears
Keyword(s):  
New Product Development ◽  
Regulatory Focus ◽  
Analogical Reasoning ◽  
New Product ◽  
Regulatory Fit ◽  
Purchase Intentions ◽  
Task Engagement ◽  
Reasoning Task ◽  
Content Type ◽  
Analogical Thinking

Purpose New product development (NPD) is increasingly being delegated to consumers, yet little research has investigated consumer-centric factors that may influence this delegation. Thus, the purpose of this paper is to uniquely combine regulatory focus and analogical reasoning to investigate new product ideation and downstream consumer-brand responses. Design/methodology/approach A series of experiments were undertaken. Findings Study 1 revealed that promotion-focused consumers (as opposed to prevention-focused consumers) have significantly greater purchase intentions if given an analogical reasoning task before engaging in new product ideation due to their cognitive flexibility. Study 2 tested the effects of near vs far analogies and found that promotion-focused consumers use analogical thinking to a greater extent and have significantly higher purchase intentions if primed with far analogies because regulatory fit is enhanced. However, analogical thinking and purchase intentions significantly drop if primed with near analogies. In contrast, prevention-focused consumers use analogical thinking to a greater extent and have significantly higher purchase intentions if shown near analogies, compared to far analogies, because of improved regulatory fit. Both studies confirm a serial mediation chain involving task engagement, self-brand connection, and brand sincerity. Research limitations/implications This research extends current understanding regarding the role of creative tasks within consumer NPD. It also uniquely links regulatory focus and consumer task engagement in NPD to increase favorable brand responses. Practical implications Findings offer managerial insights that can positively increase consumer-brand outcomes during NPD. Originality/value This is one of the first studies to demonstrate the importance of analogical thinking and consumer-centric factors (i.e., regulatory focus) during the NPD process. This avenue of research is important, as most studies have neglected ways in which to increase consumer NPD task engagement, leaving resources unutilized.

Leadership influences? It depends on followers! The relationship between the Ohio State leader behaviors, employee self-regulatory focus, and task performance

2019 ◽  
Vol 49 (2) ◽  
pp. 491-515 ◽  
Author(s):  
Dongwon Choi ◽  
Minyoung Cheong ◽  
Jihye Lee
Keyword(s):  
Task Performance ◽  
Regulatory Focus ◽  
Regulatory Fit ◽  
Citizenship Behavior ◽  
Content Type ◽  
Initiating Structure ◽  
Expansion Theory ◽  
Regulatory Fit Theory ◽  
The Relationship

Purpose While the Ohio State leadership approach had been forgotten for several decades, scholars in the field of leadership have begun revisiting the validity and the role of leader consideration and initiating structure. Building on self-expansion theory, this study suggest the effects of leader consideration and initiating structure on employee task performance. Also, integrating self-expansion theory and regulatory fit theory, the purpose of this paper is to propose and examine the moderating role of employee regulatory focus on the relationship between the Ohio State leadership behaviors and employee task performance, which was mediated by emloyees’ creative behavior as well as citizenship behavior. Design/methodology/approach To test the hypothesized model of this study, cross-sectional data were collected using questionnaires. Pairs of survey packages, which included group-member surveys and a group-leader survey, were handed out to employees in organizations. The authors collected data from 47 groups and 143 group members in 25 private companies in the Republic of Korea, including from financial, technology, manufacturing, and research and development organizations. Findings The results showed that leader consideration exerts significant effects on employee task performance. Also, the authors found the moderating role of employee regulatory promotion focus on the relationship between leader consideration/initiating structure and employee task performance, which were mediated by creative behavior and citizenship behavior. Originality/value This study contributes to the advancement of the Ohio State leadership approach by integrating self-expansion theory and regulatory fit theory to investigate the distinct mechanisms and boundary conditions of its leadership process. The current study also contributes to the literature on extra-role behavior that the Ohio State leadership behavioral dimensions can be considered as one of the antecedents of employees’ creative and citizenship behavior.

scholarly journals Information leaks before CEO change: financial gain and ethical cost

2020 ◽  
Vol 24 (1) ◽  
pp. 19-29
Author(s):  
Gregor Halff ◽  
Anne Gregory
Keyword(s):  
Stock Market ◽  
Financial Markets ◽  
Design Methodology ◽  
Fortune 500 ◽  
Content Type ◽  
The Public ◽  
Financial Gain ◽  
Fortune 500 Companies ◽  
Search Patterns ◽  
A Company

PurposeThe purpose of this paper is to investigate whether there are information leaks immediately before CEOs change and – if so – whether some investors take financial advantage of such prior knowledge. It thirdly investigates the ethical, practical and professional options for communication managers to deal with such situations.Design/methodology/approachWorking from sentiment theory of financial markets, the authors studied Internet search patterns for incoming CEO names and stock market movements immediately prior to the public mention or speculation of CEO change.FindingsThe authors find that in nearly a quarter of CEO changes at Fortune 500 companies, the name of the future CEO seems to have been leaked. Additionally, nearly half of those companies also experience extreme, otherwise unexplainable movements in the stock market.Originality/valueThis paper discovers the prevalence of extreme stock market movements for a company when the name of that company's next CEO has likely been leaked. Such leaks are an opportunity for unscrupulous investors, but they create ethical dilemmas for organizations. Communication managers typically respond by organizing tighter governance. However, to keep up with the speed of information and investments traveling through algorithms, organizing radical transparency could become an alternative instead.

scholarly journals An empirical study of the challenges facing zakat and waqf institutions in Northern Nigeria

2019 ◽  
Vol 11 (2) ◽  
pp. 338-356 ◽  
Author(s):  
Mahadi Ahmad
Keyword(s):  
Point Of View ◽  
Primary Data ◽  
Northern Nigeria ◽  
Federal Law ◽  
Content Type ◽  
The Public ◽  
Purposeful Sampling ◽  
Qualitative Research Methodology ◽  
Political Office ◽  
Low Performance

Purpose The purpose of this paper is to unearth the factors inhibiting the development of zakat (the Islamic obligatory alms) and waqf (endowment) institutions in Northern Nigeria, with the aim of proffering appropriate solutions. Design/methodology/approach This paper uses a qualitative research methodology whereby data was sourced from relevant stakeholders in Northern Nigeria. To select the appropriate interviewees, maximum variation and homogenous purposeful sampling techniques were used. Findings The findings of the paper show that zakat and waqf institutions in Northern Nigeria have not achieved their inherent Sharīʿah objectives because members of the public have little or no trust or confidence in the institutions. Also, the potential zakat payers and waqf donors dislike political office holders’ involvement in the appointment of the institutions’ administrators. Finally, the administrators lack adequate managerial and administrative knowledge of the two institutions. Research limitations/implications The current research focusses on causes of low performance of zakat and waqf institutions solely in Northern Nigeria. It is envisaged that subsequent researchers may conduct research on the possibility of having a federal law that will strengthen the overall establishment and development of zakat and waqf in Nigeria. This will affect both Muslim-majority and Muslim-minority communities. Originality/value This paper represents a referenceable work in the field of zakat and waqf in Northern Nigeria, as it uses an approach that sources primary data in the form of participants’ point of view instead of relying on literature or document analysis. It is not a mere theoretical study of the literature but an empirical investigation of the problem.

Unit pricing for multiple product sizes: identifying moderators and mediators of consumer evaluations

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Miyuri Shirai ◽  
Takuya Satomura
Keyword(s):  
Unit Price ◽  
Mediation Effect ◽  
Quantity Discounts ◽  
Consumer Evaluations ◽  
Content Type ◽  
Consumer Responses ◽  
Additional Information ◽  
Mediating Role ◽  
Unit Pricing

Purpose This paper aims to investigate the underlying process by which a brand’s unit pricing for multiple package sizes influences consumer evaluations by incorporating several mediators and moderators. Two-unit pricing tactics were examined: quantity discounts and surcharges. Design/methodology/approach Two online experiments were conducted to test the hypotheses. Study 1 examined the mediating role of consumers’ inferred motive for sellers in setting quantity discounts or surcharges in the relationship between the pricing tactics and consumer evaluations. Study 2 incorporated affect as a mediator, and price consciousness and unit price usage as moderators in this relationship. Findings The mediating role of inferred motive is supported. Motive is related to the sales volume. Furthermore, this mediation effect is more potent when consumers have stronger quantity discount belief. Further, the mediating role of affect is supported. It is more salient when consumers are frequent users of unit prices. Research limitations/implications This study compared two pricing tactics and did not include a control condition. The first digit of the unit price for the small package size was different between the pricing tactics. Practical implications When applying quantity surcharges to products, it is essential to provide additional information to consumers to preclude the possibility of negative evaluations. Originality/value This study makes a significant contribution by offering a deeper understanding of consumer responses to the pricing tactics. In particular, it reveals that pricing tactics trigger both cognitive and affective responses, which then influence evaluations of the pricing tactics. This elicited cognition is associated with deduction about sellers’ brand-size pricing behavior.

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