scholarly journals The Impact of Exposure to Positive and Negative Information on Brand Evaluation after Considering Brand Knowledge: Product Category Differences

2011 ◽  
Vol 29 (1) ◽  
pp. 45-54
Author(s):  
현소은 ◽  
Seong Yong Park
2021 ◽  
pp. 183933492110286
Author(s):  
Marilyn Giroux ◽  
Jooyoung Park ◽  
Jae-Eun Kim ◽  
Yung Kyun Choi ◽  
Jacob C. Lee ◽  
...  

This article investigates the role of diverse nudging communication strategies on perceived threat and stockpiling intention. Across three studies, the authors examined the various effects of “nudging” on consumer behavior. Study 1 demonstrates that a commonly used picture has a stronger impact on perceived threat than a less frequently exposed picture regardless of its accuracy. Study 2 shows that the perceived threat of COVID-19, in terms of severe health consequences, is lower when using an indirect (vs. direct) explanation of the virus, as well as when reducing the amount of information about the virus. Study 3 investigates the impact of salient negative information and childhood socioeconomic status (SES). Findings reveal that negative information about deaths associated with the virus increases the level of perceived threat and stockpiling intention, especially among people of low childhood SES.


2017 ◽  
Vol 32 (2) ◽  
pp. 93-103
Author(s):  
Amit K. Ghosh

Purpose The constantly changing prices, promotions, and packaging options have made decision making more complex for consumers of packaged goods. The purpose of this paper is to explore how price and promotions influence consumer propensity to buy a certain package size. Design/methodology/approach Scanner panel data for shelf-stable salad dressing obtained from Information Resources Inc. were used to compute the proportion of large packages bought, the relative price paid for large packages, propensity to use various types of promotions, and a behavioral covariate for each household. Data of over 5,600 households were analyzed using a multiple regression analysis for hypothesis testing. Findings The positive nature of relationship between the relative price of large packages and the proportion of large packages bought demonstrates the suboptimal nature of consumer decision making. The inefficiency is partially attributable to the abundance of promotions, to consumers’ lack of price awareness, and to the use of heuristics by consumers. Also, consumers who are prone to use promotions such as displays and temporary price reductions tend to purchase larger packages. They are more likely to buy impulsively and base their decisions on heuristics. In contrast, consumers who are influenced by featured price cuts and who utilize coupons tend to purchase smaller packages. Research limitations/implications Data were obtained from grocery stores; only a single product category was studied. Practical implications Offer coupons and advertise featured price cuts on small packages to increase the sales of smaller packages. To move large packages successfully, retailers should rely more on in-store displays and temporary price reductions. Originality/value The impact of price and promotions on package size propensity has never been investigated. This study is also one of the few that uses a household-level analysis based on observable purchase data for consumer packaged goods.


Author(s):  
Hoang Thi Phuong Thao ◽  
Lu Van Bao Long ◽  
Nguyen Le Thai Hoa

The purpose of this study is to measure the effectiveness of factors of brand, including Brand Positioning, Brand Knowledge, Attitude towards Organic Rice Brand, and Organic Rice Purchase Intention. The survey was conducted with a sample of 224 consumers shopping at four organic rice shops in Ho Chi Minh City. The research was performed by quantitative research methods: Cronbach's Alpha Reliability Analysis, Exploratory Factor Analysis (EFA), Confirm Factor Analysis (CFA), and Structural Equation Modeling (SEM). The research results were conducted in two direct models and the indirect models in which the indirect model was supported. This means that brand positioning and brand knowledge had no direct impact on the Intention to buy organic rice, but only an indirect one through the consumer attitude towards the organic rice brand.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jianmai Liu

Purpose As an important part of the disclosure of listed companies' annual reports, MD&A will disclose some "bad news" about the company. The purpose of this paper is to study whether such "bad news" can reduce information asymmetry and alleviate the risk of stock price crash remains to be seen. Design/methodology/approach Based on the sample of A-share listed companies from 2007 to 2016, the authors examine whether the negative information in MD&A could reduce stock price crash risk. Findings It is found that the negative information in MD&A does not reduce future crash, which indicates that the negative information in MD&A does not alleviate the information asymmetry. Further, it is also found this is due to the low readability of negative information which leads to the negative information not successfully released into the market timely. Only highly readable negative information can alleviate information asymmetry and suppress crash risk. In addition, the authors also find in the companies with more investor surveys negative tone is negatively correlated with crash risk, which means that investor surveys could help investors interpret the negative information in MD&A and alleviate stock price crash risk. Practical implications The practical significance of this article: this paper suggests that investors should carefully identify the quality of negative information in MD&A and pay attention to other quality characteristics besides credibility. This paper suggests that the regulator should pay attention not only to whether to disclose and the amount of disclosure but also to the quality of information disclosure, such as readability, so as to restrict management's strategic behavior in information disclosure. Originality/value First, different from previous studies on the impact of information disclosure on crash risk, this paper directly explores the impact of information in MD&A on stock price crash risk from the perspective of negative information disclosure that management most want to hide. It supplements the literature on the impact of information disclosure on stock price crash risk. Second, this paper studies the interaction between information tone and readability and its impact on the risk of stock price crash. Some studies believe that the credibility of negative news is higher and investors' reaction may be stronger. However, this paper finds that the disclosure of negative information may not be absorbed by the market because of the low readability. Third, this paper finds that investor surveys can help information users to interpret negative information and alleviate the risk of stock price crash, which shows that information disclosure of different channels will complement each other and improve information efficiency. Therefore, it advocates different information disclosure channels which has important practical significance for improving market pricing efficiency and reducing investment decision-making risk.


1997 ◽  
Vol 34 (4) ◽  
pp. 473-484 ◽  
Author(s):  
France Leclerc ◽  
John D. C. Little

Packaged goods manufacturers distribute cents-off coupons in freestanding inserts (FSIs) in newspapers. Free-standing insert coupons are typically composed of two parts: the coupon per se and a print advertisement. Using two laboratory experiments and a separate analysis of coupon measurements from scanner panels, the authors investigate whether the content of the print advertisement influences the effectiveness of the coupon. Theoretical arguments suggest that the impact on consumer attitudes will depend on the executional cues of the copy, the brand loyalty of the consumers, and the consumer's involvement with the product category. The results support the theoretical framework and suggest that it is possible to make FSI coupons more effective by choosing appropriate executional cues for their advertising copy.


2018 ◽  
Vol 55 (5) ◽  
pp. 686-703 ◽  
Author(s):  
Ajay T. Abraham ◽  
Rebecca W. Hamilton

Evidence of the impact of partitioned pricing is contradictory. Research indicates that partitioning a price into multiple components can result in more favorable preferences, due to a lower recalled price, or less favorable preferences, due to unfavorable surcharge evaluations. To explain these divergent effects, the authors examine the role of price presentation moderators, which reflect how managers convey prices to consumers (e.g., Is the total price present or absent?), magnitude moderators, which reflect the actual prices charged (e.g., What is the surcharge magnitude?), and contextual moderators, which reflect nonprice transaction characteristics (e.g., Is the product category hedonic or utilitarian?). A meta-analysis of 17 years of partitioned pricing research examining 149 observations in 27 papers (N = 12,878) suggests that consumers respond more favorably to partitioned pricing than to all-inclusive pricing when the total price is absent, as the price level increases, when the surcharges are typical for the product category, when the surcharges are perceived as offering high benefit, and when the product category is utilitarian.


2020 ◽  
Vol 49 (1) ◽  
pp. 1-22
Author(s):  
Jérôme Lacoeuilhe ◽  
Didier Louis ◽  
Cindy Lombart ◽  
Blandine Labbé-Pinlon

PurposeThe research aim is to investigate the impacts of comparative ads used by retailers to compare the prices of their store brand (SB) products with those of equivalent national brand (NB) products. More specifically, this research examines if consumers perceive retailers as legitimate when they use comparative ads to compare the prices of their SB products to those of equivalent NB products, and how effective are these comparative ads in terms of actual purchases. This research also explores for which SB type (economy, standard or premium) and consumers are comparative ads most effective.Design/methodology/approachThis research investigates consumers' reactions to comparative ads used by retailers to compare the prices of their SB products with those of similar NB products through an experiment within a store laboratory. A between-subject design has been used. The participants of the first/second/third group (n1 = 93/n2 = 92/n3 = 91) were exposed to ads comparing the prices of retailer's economy/standard/premium SB food products with their equivalent NB food products, in the same product category. The participants of each group carried out a shopping trip in the store laboratory.FindingsConsumers consider retailers legitimate when they use comparative ads. This favourable evaluation improves their attitude towards these ads. However, the impact of retailers' legitimacy of (1) means, (2) objectives and (3) historical legitimacy on consumers' attitude towards comparative ads depends on the SB type (economy, standard and premium). By contrast, comparative ads are effective in terms of consumers' attitude towards these ads and towards SBs, along with purchase intention and actual purchases of these brands, whatever the SB type. Lastly, this research highlights that comparative ads for SBs are mainly directed at consumers with high levels of price consciousness and resistance to NBs.Research limitations/implicationsThis research only tested the impact of direct comparative advertising and an extrinsic attribute (price). The research experiment was conducted on a convenience sample, which limits its external validity.Practical implicationsThis research encourages retailers to use comparative advertising for their SBs (economy, standard and premium) for several reasons. First, this study suggests that comparative advertising is an effective tool for retailers to shape or improve consumers' attitude towards SBs, via their attitude towards comparative ads. Second, this research proposes that comparative advertising contrasting the prices of SB products with those of NB products could increase retailers' in-store sales of their SBs. Lastly, this research underlines that comparative advertising is particularly effective for consumers with high levels of price consciousness and resistance to NBs.Originality/valueThis research supplements previous research in the field of SBs and comparative advertising. Previous research on comparative advertising has examined NBs exclusively (Dianoux et al., 2013; Beard, 2018). Comparisons between SBs and NBs are lacking. This research thus validates the use of this specific form of communication for SBs, given the paucity of studies of the effects of the use of mass media communication on SBs (Nenycz-Thiel and Romaniuk, 2014; Gendel-Guterman and Levy, 2017).


2014 ◽  
Vol 31 (6/7) ◽  
pp. 417-429 ◽  
Author(s):  
Laurent Bertrandias ◽  
Leila Elgaaied-Gambier

Purpose – This paper aims to achieve a better understanding of the social dimension underlying green purchasing behavior by assessing the impact of environmental concern ascribed to relevant others. Design/methodology/approach – A survey was conducted among 468 French interviewees. Using a scenario, respondents were asked to choose between two similar products: one is very fashionable but harmful to the environment and the other has comparable features with a lower negative impact on the environment. In parallel, respondents had to cite four relevant others and to make several attributions about them. Environmental concern was one of these attributions. Findings – Ascribed environmental concern increases the probability to choose the product with a low environmental impact over the more harmful alternative. This process is mediated by perceived social risk and self-incongruity associated with the environmentally unfriendly product. Research limitations/implications – Conclusions are drawn on the basis of a specific choice for a particular product category. Practical implications – Environmentally responsible consumers should be encouraged to express their convictions publicly within their social network. Social implications – Consumers are more inclined to adopt an environmental reading of what they plan to buy when they ascribe environmental preoccupations to their referent others either to preserve their social ties or to preserve their self-congruity. This proximity effect should be exploited to promote pro-environmental behaviors. Originality/value – Most studies on the determinants of green behavior either focus exclusively on individual predispositions or tackle social influence too explicitly. By assessing the effect of ascribed environmental concern instead on individual environmental concern, this research offers an original approach.


2017 ◽  
Vol 51 (5/6) ◽  
pp. 903-922 ◽  
Author(s):  
Amro A. Maher ◽  
Anusorn Singhapakdi

Purpose The purpose of this paper is to examine the impact of the moral failure of a scandalized foreign brand afflicted with a product-harm crisis on competing brands (i.e. within the same product category) while taking into account the country of origin (COO) of the brands. Design/methodology/approach This paper presents the results of two studies. The first study uses an experimental design, while the second uses a survey to examine a real-life product-harm crisis. Findings The results indicate that the moral failure of a scandalized foreign brand has an indirect negative effect on the intention to purchase competing foreign brands from the COO of the scandalized foreign brand. This effect is, however, reversed for domestic brands, where moral failure has an indirect positive effect on the intention to purchase competing domestic brands. Research limitations/implications The results of this research were based on an examination of how US consumers responded to the moral failure of Japanese and German brands. Future studies should examine brands from different COOs in different countries. Practical implications These results suggest that competing foreign brands from the COO of the scandalized brand should collaborate to quickly handle a product-harm crisis to prevent a spillover and that domestic competitors should capitalize on the opportunity to attract new customers. Originality/value This study represents a first attempt to examine the effect of a foreign brand’s moral failure in handling product-harm crisis on competing brands, both foreign and domestic.


2017 ◽  
Vol 51 (5/6) ◽  
pp. 1011-1028 ◽  
Author(s):  
Marcel Paulssen ◽  
Raphael Roulet

Purpose Research on how social bonding between boundary spanners influences relationship outcomes in business-to-business (B2B) settings is sparse and controversial. This longitudinal study aims to close this gap and assess the impact of social bonding on the share of wallet and actual cross-buying behaviour. Design/methodology/approach B2B relationships between a manufacturer of light commercial vehicles and its customers were investigated. A random sample of fleet managers answered two telephone surveys. Findings Social bonding was found to affect both investigated relationship outcomes, share of wallet and cross-buying, through the generation of trust over and above the customer’s perceptions of value. Research limitations/implications Only one product category was investigated in this study, and further research should explore boundary conditions for the relevance of social bonding in B2B. Practical implications Social bonding represents one lever (next to value perceptions) for building a competitive advantage in a B2B context. Relationship marketing activities that are intended to strengthen the development of social bonds between customers and account managers should be encouraged. Originality/value The authors provide clear evidence regarding the disputed impact of social bonding between boundary spanners on relationship outcomes in B2B relationships by testing its impact on real purchase behaviour and not only purchase intentions, as is the case in most published studies to date.


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