End-to-end sustainability: trade-offs, consumers’ perceptions and decisions beyond B2C interfaces

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Camila Lee Park ◽  
Mauro Fracarolli Nunes ◽  
Alessio Ishizaka

Purpose This study aims to examine the extended effects of corporate (ir)responsibilities in supply chains. More specifically, the authors compare the impact of social and environmental initiatives and failures in the reputational capital of supply chain partners. The authors investigate how (and if) companies’ decisions to prioritize different sustainability dimensions in their supplier selection processes (i.e. sustainability trade-offs) affect consumers’ perception of corporate image, corporate credibility-expertise, attitude towards the firm and word-of-mouth. Design/methodology/approach The authors conducted three behavioural vignette-based experiments with 562 participants from the USA, relying on analysis of variance and t-tests analyses. Findings Results show that consumers perceive social irresponsibility cases as more severe than environmental ones in suppliers’ operations, penalizing buyers’ corporate image, corporate credibility-expertise and word-of-mouth. Corporate image, attitude towards the firm and word-of-mouth also have significant differences between social and environmental trade-offs. Statistically significant differences were also found between scenarios that portrayed the discovery of an irresponsible action and ones that reinforced the previous irresponsible practice in companies’ suppliers. Practical implications When types of irresponsibility practices are presented, the discovery of child labour and modern slavery conditions in suppliers damage how consumers perceive the company on corporate image and their attitude towards the organization and how they will spread word-of-mouth, reinforcing the importance of considering sustainability issues when making supplier selection decisions. Originality/value The study contributes to the understanding of how companies are perceived by their consumers regarding irresponsible practices and their impact on firms’ supplier selection decisions. Furthermore, data suggests that consumers might hierarchize sustainability dimensions, perceiving social irresponsibility cases as more severe than environmental irresponsibility ones.

2019 ◽  
Vol 36 (6) ◽  
pp. 996-1025 ◽  
Author(s):  
Ya-Ling Chiu ◽  
Ku-Hsieh Chen ◽  
Jying-Nan Wang ◽  
Yuan-Teng Hsu

Purpose Electronic word-of-mouth (eWOM) is very important for consumer decision making; previous international product diffusion studies have investigated eWOM and cultural factors that influence consumers’ acceptance of new products, but they have not adequately compared the differences in these factors between the USA and China. Therefore, the purpose of this paper is to compare the impact of eWOM on consumer choices in China and the USA. The authors addressed the following questions: What are the cross-cultural differences in consumers’ eWOM behavior between the USA and China: Which genres of Hollywood movies have better cross-culture predictability in terms of box office performance; and What factors affect the success of Hollywood movies in entering the Chinese market? Design/methodology/approach Real eWOM data were collected from two online movie review websites, IMDb.com (the USA) and Douban.com (China), from January 2010 to December 2015. In addition, box office revenue information was collected from BoxOfficeMojo.com. The authors used an independent sample t-test to check whether the differences in consumers’ eWOM behavior between China and the USA and different types of movie lead to cultural discount differences. Furthermore, a log-linear regression model is used to examine which factors influence the commercial success of new movies. Findings There are specific similarities and differences between the American and Chinese movie markets. First, the results show that American consumers are more engaged in online review systems and tend to submit extreme reviews, but Chinese consumers tend to submit moderate reviews on movies, and the eWOM variance there is smaller than in the USA. Second, genres are useful variables as indicators of movie content; the genres of comedy and drama are not popular in the Chinese market. Finally, eWOM variance has a positive impact on box office in China, but eWOM variance has no impact on the US box office. In addition, the interactive effect of the average rating and eWOM variance on sales is positively significant in China. Importantly, the one-star reviews have a negative impact on the Chinese box office, but it has no impact on US box office. Practical implications Understanding how cultural factors influence consumer eWOM communication will help managers to better apply this new marketing communication tool to create more aggressive and targeted promotional plans. Marketers may use eWOM behavior to better respond to and target consumers to overcome barriers to the selection of their products by consumers. Therefore, more effective management of eWOM can improve the acceptance of and preference for products in different cultural consumer groups. Originality/value This study expands the existing body of knowledge on eWOM and international marketing literature. Clearly, culture is an important determinant of eWOM’s impact on sales. In addition, it provides strategic direction and practical implications for eWOM communication management in cross-cultural settings.


2019 ◽  
Vol 53 (8) ◽  
pp. 1546-1584 ◽  
Author(s):  
Nicholas G. Paparoidamis ◽  
Huong Thi Thanh Tran

PurposeThis paper aims to examine whether consumers respond differently to different types of eco-innovations and to explore how and under what conditions eco-friendly consumer innovativeness (ECI) impacts consumers’ perception and adoption intentions.Design/methodology/approachTwo online experiments with real consumers in the USA were conducted to test the hypothesized relationships. Two eco-innovation products were examined: a connected vacuum cleaner (Study 1) and an innovative smartphone (Study 2).FindingsFirst, consumers tend to express more positive product beliefs, higher preferences and stronger adoption intentions toward resource use elimination innovations compared with the other types of eco-innovations across two product categories. Although consumers are not willing to pay more, they would adjust their payment equity by increasing consumption levels for resource use elimination innovations. Second, this research demonstrates ECI affects adoption intentions via formulating consumer perceptions of product eco-friendliness. Perceived trade-offs between eco-friendly benefits and product effectiveness strengthens the positive effect of ECI while weakening the impact of perceived product eco-friendliness on adoption intentions.Research limitations/implicationsFuture studies may validate and extend the results for marketing communication to different types of eco-friendly innovative consumers to determine which marketing messages best match the perceptions and preferences of certain eco-friendly innovative consumers.Practical implicationsThis study offers useful insights for strategic research-and-development investment and decision-making processes in selecting the best-suited approaches to developing eco-innovations and maximizing their success in the commercialization phase. Specifically, firms should place greater emphasis on resource use elimination innovation, which could evoke more positive consumer responses than resource use efficiency innovations and resource use substitution innovations. Moreover, it is important to improve the segmentation of the early adopters in the eco-innovation market with respect to specific types of eco-innovations so that marketers can distinctively address eco-friendly innovative consumers that best fit the potential user profile of their products.Originality/valueThe current research is novel as neither an empirically nor a theoretically founded framework has been suggested to examine how and why consumers respond differently to different types of eco-innovations. The findings shine new lights on eco-innovation research by providing useful insights into the underlying mechanisms and the conditions under which ECI affects consumers’ responses.


2020 ◽  
Vol 40 (5) ◽  
pp. 531-552
Author(s):  
Aneesh Banerjee ◽  
Jörg M. Ries ◽  
Caroline Wiertz

PurposeOnline B2B markets offer buyers a new source of information provided by social media signals about suppliers. These signals have not yet received much attention in the supplier selection literature. This study advances our understanding of how buyers respond to social media signals in the supplier selection process.Design/methodology/approachWe develop a choice-based conjoint experimental design to isolate and manipulate two signals from social media: volume (the number of ratings) and valence (average evaluation of the ratings). We test how these signals are interpreted in the context of varying deal sizes and price points.FindingsBoth volume and valence are positively correlated with supplier selection. However, (1) the signals exhibit diminishing returns and (2) the efficacy of valence is interpreted in the context of volume. We also find that (3) there is no influence of the deal size and that (4) the relationships between signals and supplier selection are negatively moderated by deviations from the reference price.Research limitations/implicationsSocial media signals should be considered in supplier selection decisions as they convey valuable information to the buyer. However, signals go through a process of interpretation which has implications for buyers, suppliers, and owners of online B2B markets.Originality/valueOur research opens new lines of inquiry in behavioural operations management research regarding the mechanisms by which buyers interpret social media signals and how these ultimately influence their choice.


2019 ◽  
Vol 42 (6) ◽  
pp. 721-739 ◽  
Author(s):  
Faiz Ahamad

Purpose Job information through word-of-mouth (WOM) has a crucial impact on employer attractiveness. The phenomenal rise of social media offers alternate WOM platforms for sharing job information, which is quite different from traditional face-to-face WOM. The purpose of this paper is to examine the differential impact of traditional word-of-mouth (t-WOM) and social media word-of-mouth (s-WOM) on employer attractiveness along with the difference in the job attributes and relationship strength with the information source. Design/methodology/approach A 2 × 2 × 2 experiment was conducted to examine the impact of information source (t-WOM and s-WOM), job attributes (tangible and intangible) and relationship strength (strong and weak), on employer attractiveness. Source expertise and source trust were treated as the control variable. Findings The result shows the differential impact of t-WOM and s-WOM on employer attractiveness. Moreover, t-WOM from strong relation source found to have a high impact on employer attractiveness than s-WOM. No significant difference due to job attributes was found. Research limitations/implications Use of only positive WOM and not the negative one, student as the subjects, etc. Practical implications The present study suggests using t-WOM and s-WOM to attract talented job seekers. Originality/value This is the first study to analyze the differential impact of t-WOM and s-WOM on employer attractiveness.


2017 ◽  
Vol 6 (3) ◽  
pp. 385-395
Author(s):  
Richard Cebula ◽  
James E. Payne ◽  
Donnie Horner ◽  
Robert Boylan

Purpose The purpose of this paper is to examine the impact of labor market freedom on state-level cost of living differentials in the USA using cross-sectional data for 2016 after allowing for the impacts of economic and quality of life factors. Design/methodology/approach The study uses two-stage least squares estimation controlling for factors contributing to cost of living differences across states. Findings The results reveal that an increase in labor market freedom reduces the overall cost of living. Research limitations/implications The study can be extended using panel data and alternative measures of labor market freedom. Practical implications In general, the finding that less intrusive government and greater labor freedom are associated with a reduced cost of living should not be surprising. This is because less government intrusion and greater labor freedom both inherently allow markets to be more efficient in the rationalization of and interplay with forces of supply and demand. Social implications The findings of this and future related studies could prove very useful to policy makers and entrepreneurs, as well as small business owners and public corporations of all sizes – particularly those considering either location in, relocation to, or expansion into other markets within the USA. Furthermore, the potential benefits of the National Right-to-Work Law currently under consideration in Congress could add cost of living reductions to the debate. Originality/value The authors extend the literature on cost of living differentials by investigating whether higher amounts of state-level labor market freedom act to reduce the states’ cost of living using the most recent annual data available (2016). That labor freedom has a systemic efficiency impact on the state-level cost of living is a significant finding. In our opinion, it is likely that labor market freedom is increasing the efficiency of labor market transactions in the production and distribution of goods and services, and acts to reduce the cost of living in states. In addition, unlike previous related studies, the authors investigate the impact of not only overall labor market freedom on the state-level cost of living, but also how the three sub-indices of labor market freedom, as identified and measured by Stansel et al. (2014, 2015), impact the cost of living state by state.


2014 ◽  
Vol 3 (2) ◽  
pp. 186-196 ◽  
Author(s):  
Rosa Caiazza ◽  
David Audretsch ◽  
Tiziana Volpe ◽  
Julie Debra Singer

Purpose – Existing work documents the role that institutional setting plays in the process of spin-off creation. However, despite decades of studies, scholars have not clearly explained why some regions are more involved in spin-off activity than others. Drawing from institutional theory, the purpose of this paper is to compare different institutional settings identifying factors affecting the general environment capability to support spin-off activity of a specific region. Design/methodology/approach – The authors utilize a cross-national analysis of American, Asian, and European areas identifying factors affecting their different rate of spin-off activity. This study contributes to the policy debate concerning entrepreneurship and how best to spur spin-off activities. Findings – In this paper, the authors identify the general and specific factors that explain the cross-national diversity in spin-off creation. The authors then perform an analysis of the impact of these factors in various regions of the USA, Asia, and Europe, providing evidence for the necessity of specific combinations of these factors. Originality/value – The paper offers a new perspective on the causes of spin-offs through a cross-national analysis of many areas around the world.


2017 ◽  
Vol 35 (3) ◽  
pp. 411-430 ◽  
Author(s):  
Rishi Kant ◽  
Deepak Jaiswal

Purpose In the present competitive scenario in the Indian banking industry, service quality has become one of the most important facets of interest to academic researchers. The purpose of this paper is to determine the dimensions of perceived service quality and investigate their impact on customer satisfaction in the Indian banking context, with special reference to selected public sector banks in India. Design/methodology/approach On the basis of the empirical study, the authors validate a measurement model using structural equation modeling for investigating the impact of perceived service quality dimensions on customer satisfaction. The study sample consists of 480 respondents in the National Capital Region (NCR) of India; the data were collected through a structured questionnaire utilizing a seven-point Likert scale while implementing a purposive sampling technique. Findings The perceived service quality dimensions identified were tangibility, reliability, assurance, responsiveness, empathy, and image. The empirical findings revealed that “responsiveness” was found to be the most significant predictor of customer satisfaction. On the other hand, “image” (corporate image) has a positive but the least significant relationship with customer satisfaction followed by all other constructs. The exception is “reliability,” which is insignificantly related to customer satisfaction in Indian public sector banks. Research limitations/implications The study cannot be generalized in the context of Indian banking sectors, as it only focused on the public sector. The findings of this study suggest that the six dimensions of perceived service quality model are a suitable instrument for evaluating bank service quality for public banks in India. Therefore, bank managers can use this model to assess the bank service quality in the context of Indian public sector banks. Originality/value There is dearth of research focusing on corporate image as a dimension of perceived service quality and its effect on customer satisfaction in the Indian banking context. Furthermore, similar studies were rarely found in the Indian context, especially within the public banking sector. Hence, this paper attempts to accomplish the research gap by empirically testing the satisfaction level of a large sample of the population in NCR toward six dimensions of perceived service quality rendered by selected public sector banks in India.


2018 ◽  
Vol 23 (1) ◽  
pp. 117-138 ◽  
Author(s):  
Yeonsoo Kim ◽  
Mari Luz Zapata Ramos

Purpose The purpose of this paper is to examine how stakeholders perceive the motives behind fast food companies’ public health-related corporate social responsibility (CSR) and general social issue-related CSR initiatives, and their responses toward CSR in terms of supportive communication intent, investment intent, and purchase intent. The authors further examine the impact of perceived CSR motives on intent and whether a healthier chain image has an effect on stakeholder responses. Design/methodology/approach An online experiment was conducted. This study employed a randomized 2 (CSR type: health-related CSR vs generic social issue-related CSR)×2 (chain image: healthier chain vs general fast-food chain) full factorial design using general stakeholder samples. Findings For an ordinary fast food restaurant, generic social issue-related CSR programs elicited significantly more positive perceptions of CSR motives, supportive communication intent and investment intent, than public-health related CSR. When a company has a healthier image, stakeholders do not distinguish between CSR types. Stakeholders perceive both CSR types as stemming from mutually beneficial motives and show neutral to slightly positive reactions to both CSR. A positively perceived CSR motive plays a determinant role in anticipating communication, investment, and purchase intents. Originality/value This is the first study that examines stakeholder perception of motives behind and responses toward fast food chains’ health-related vs generic social issue-related CSR initiatives, in light of corporate image. The study findings help public relations practitioners, public health professionals, parent groups, and legislators understand stakeholders’ reactions toward CSR initiatives in the fast food industry and help them monitor practices for improvements.


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

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


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Denni Arli ◽  
Tuyet-Mai Nguyen ◽  
Phong Tuan Nham

Purpose There is a perception that non-religious consumers are less ethical than religious consumers. Studies found prejudices against atheists around the world and assumed that those who committed unethical behavior were more likely to be atheists. Hence, first, the purpose of this study is to investigate the effect of consumers’ intrinsic religiosity, extrinsic religiosity and atheism on consumers’ ethical beliefs. Second, this study attempts to segment consumers and identify differences between these segments. Design/methodology/approach Using data from 235 study participants in the USA and 531 in Vietnam. Subsequently, a two-step cluster approach was used to identify segments within these samples. Findings The study results show consumers’ intrinsic religiosity negatively influences all consumers’ unethical beliefs. Similarly, atheism also negatively influences all consumers’ unethical beliefs. This study also complements other studies exploring consumer ethics in developing countries. In addition, the segmentation analysis produced unique segments. The results from both samples (USA and Vietnam) indicated that non-religious consumers are less likely to accept various unethical behaviors compared to religious consumers. Religious consumers are not necessarily more ethical and atheism consumers are not necessarily less ethical. In the end, are implications for business ethics, religious and non-religious leaders on how to view the impact of beliefs on consumer ethical behaviors. Originality/value This is one of the first few studies investigating the impact of atheism on consumer ethics. The results of this study further extend the knowledge of study in consumer ethics by comparing consumers’ religiosity and atheism.


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