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Article

Jaakko Aspara, Amitav Chakravarti and Arvid O. I. Hoffmann

This study aims to examine the interplay between focal and background goals in consumer financial decision-making and identify conditions that lead individuals to…

Abstract

Purpose

This study aims to examine the interplay between focal and background goals in consumer financial decision-making and identify conditions that lead individuals to trade-off financial returns for background goals.

Design/methodology/approach

The current research reviews the relevant literature on consumer financial decision-making and goal systems theory to develop a set of hypotheses that is tested using three experiments.

Findings

The experiments show that individuals who have been subtly primed with self-expressive background goals, or experienced progress toward the focal goal of financial returns, accept lower financial returns for the opportunity to invest in stocks that allow for increased self-expression. Further, while subtly primed background goals exert a non-normative influence on investment decisions, explicit cues about an investment’s background goal-instrumentality create a backlash effect, and decrease individuals’ willingness to trade-off financial returns.

Research limitations/implications

Future research could confirm the robustness of the findings of the present research by using different priming tasks and alternative ways of making the background goal explicit to individuals.

Practical implications

To achieve greater attraction among individual investors, it helps to frame a financial product or stock in communications materials in a way that sends subtle signals with which investors can identify. Such signals could include stressing the product/company’s home country (addressing individuals’ patriotism) or a particular product domain (addressing individual investors’ desire for interesting/exciting current/future products).

Originality/value

While previous research suggests that investment choices may be influenced by self-expressive motivations, to date, it remains unclear whether and when individual investors are actually willing to trade-off the focal goal of maximizing financial returns for the opportunity to satisfy alternative background goals.

Details

European Journal of Marketing, vol. 49 no. 7/8
Type: Research Article
ISSN: 0309-0566

Keywords

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Article

Arvid O.I. Hoffmann, Heiner Franken and Thijs L.J. Broekhuizen

The paper aims to identify which factors determine (German) retail banking customers' intention to adopt a new remuneration system for financial advice. The new system is…

Abstract

Purpose

The paper aims to identify which factors determine (German) retail banking customers' intention to adopt a new remuneration system for financial advice. The new system is a pay‐per‐use advisory model that supersedes existing commission‐based advisory approaches.

Design/methodology/approach

The paper develops and tests a comprehensive conceptual framework that includes perceived innovation characteristics, relationship quality, and socio‐demographic and psychographic variables to explain adoption intentions of the new remuneration system. The data come from a survey among clients of a large German retail bank.

Findings

Perceived innovation characteristics (i.e. relative advantage) largely determine the intention to adopt the fee‐based advisory model. Consumer and relationship quality variables do not directly impact adoption intentions, but have an indirect effect through influencing perceived innovation characteristics and moderating their relative importance. Relationship quality indicators, such as satisfaction with the current service and trust in the bank or its employees, do not impact customers' intentions to switch to the new remuneration system.

Research limitations/implications

The paper describes a (case) study using data from a large German retail bank. Future research may investigate the findings' (international) generalizability using different datasets and also assess additional drivers of customers' intentions to adopt a fee‐based advisory model.

Practical implications

The results suggest that banks should always explain the relative advantage of financial service innovations to their clients, as existing satisfaction and trust levels are not sufficient to ensure adoption.

Originality/value

This is the first paper examining the adoption of a new remuneration system for financial advice in the retail banking industry. By assessing a variety of variables the authors increase understanding of why customers adopt or reject such complex and difficult to evaluate service innovations.

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Article

Arvid O. I. Hoffmann and Dana Ketteler

The purpose of this paper is to investigate the potential spill-over effects from negative (and positive) experiences with trading a company’s stock on…

Abstract

Purpose

The purpose of this paper is to investigate the potential spill-over effects from negative (and positive) experiences with trading a company’s stock on shareowner-customers’ emotions and subsequent customer attitudes and behavior.

Design/methodology/approach

A conceptual framework that links selling a stock for a loss (or gain), emotions, and customer attitudes and behaviors is developed. The framework is tested with data from a sample of Dutch investors that is analyzed with structural equation modeling through the partial least squares method in SmartPLS.

Findings

Selling a stock for a loss vs selling a stock for a gain have different effects on shareowner-customers’ attitudes and behavior toward the company. Losses induce negative emotions which in turn result in lower satisfaction and behavioral loyalty as well as in increased propensity to complain about the company. Investment gains, however, result in more positive emotions which then lead to increased preference of the company whose stocks were traded over its competitors and increased engagement in positive word-of-mouth (WOM).

Research limitations/implications

The study is focussed on shareowner-customers’ experiences with stocks of companies active in the consumer industry. Future research could address whether the results generalize to other industries.

Practical implications

The findings emphasize the importance of a close collaboration between the marketing and investor relation departments. Complaints of shareowner-customers should be taken seriously and incentives to stimulate repurchases as well as those that encourage positive WOM engagement are recommended.

Originality/value

This is the first study to examine possible negative spill-over effects from experiences obtained during stock trading on shareowner-customers’ attitudes and behaviors toward the stock’s company.

Details

International Journal of Bank Marketing, vol. 33 no. 7
Type: Research Article
ISSN: 0265-2323

Keywords

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Article

Arvid O.I. Hoffmann, Aida Tutic and Simone Wies

The purpose of this paper is to show the role of educational diversity in improving investor relations (IR) quality and examine how this impacts the number of shareholder…

Abstract

Purpose

The purpose of this paper is to show the role of educational diversity in improving investor relations (IR) quality and examine how this impacts the number of shareholder activism incidents a firm encounters.

Design/methodology/approach

The paper reviews literature on marketing, finance, and corporate communications to develop a conceptual framework which is tested using a combination of secondary data and primary data collected through a survey amongst IR professionals working at companies in the Euronext 100 stock index.

Findings

The empirical results support the conceptual framework, showing higher IR quality levels and lower shareholder activism intensity for companies with educationally diverse IR teams. In particular, the presence of marketing and communication experts in IR teams contributes to higher IR quality and lower shareholder activism.

Research limitations/implications

Future research may investigate the robustness of the results with larger and internationally diversified samples and examine how, besides educational diversity, other organizational arrangements through which finance professionals work together with marketing and communication professionals impact IR quality.

Practical implications

The results suggest that to improve their IR quality and minimize shareholder activism, companies should check and when necessary increase the educational diversity of their IR teams.

Originality/value

This is the first paper investigating the role of educational diversity on IR quality and the impact on shareholder activism, developing and testing an innovative conceptual framework that integrates marketing, finance, and corporate communication theory.

Details

Corporate Communications: An International Journal, vol. 16 no. 4
Type: Research Article
ISSN: 1356-3289

Keywords

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Article

Arvid O.I. Hoffmann and Cornelia Birnbrich

The purpose of this paper is to establish a conceptual as well as an empirical link between retail banks’ activities to protect their customers from third‐party fraud, the…

Abstract

Purpose

The purpose of this paper is to establish a conceptual as well as an empirical link between retail banks’ activities to protect their customers from third‐party fraud, the quality of customer relationships, and customer loyalty.

Design/methodology/approach

A conceptual framework is developed linking customer familiarity with and knowledge about fraud prevention measures, relationship quality, and customer loyalty. To empirically test the conceptual framework, data were collected in collaboration with a large German retail bank.

Findings

A positive association was found between customer familiarity with and knowledge about fraud prevention measures and the quality of customer relationships as measured by satisfaction, trust, and commitment. The quality of customer relationships, in turn, is positively associated with customer loyalty as measured by intentions to continue their relationship with and cross‐buy other products from their bank.

Research limitations/implications

The paper focuses on the German retail banking market and uses data from only one bank. Future research may investigate the generalizability of the findings across other banks, as well as other countries. Moreover, future research could address how specific anti‐fraud instruments and their communication differentially affect customer satisfaction, trust, and commitment.

Practical implications

The results stress the importance of fraud prevention for retail banks and show that besides the financial objective of reducing operating costs, fraud prevention and its effective communication is a meaningful way to improve customer relationship quality and, ultimately, customer loyalty.

Originality/value

This is the first academic study to empirically examine the relationship between a retail bank's (communication about) fraud prevention mechanisms and the quality of their customer relationships.

Details

International Journal of Bank Marketing, vol. 30 no. 5
Type: Research Article
ISSN: 0265-2323

Keywords

Content available
Article

Abstract

Details

International Journal of Bank Marketing, vol. 32 no. 1
Type: Research Article
ISSN: 0265-2323

Content available
Article

Wim J. Elving

Abstract

Details

Corporate Communications: An International Journal, vol. 16 no. 4
Type: Research Article
ISSN: 1356-3289

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Article

Arvid Hoffmann, Simon McNair and Jason Pallant

The purpose of the paper is to examine how psychological characteristics predict membership of and transitions between states of higher vs lower financial vulnerability …

Abstract

Purpose

The purpose of the paper is to examine how psychological characteristics predict membership of and transitions between states of higher vs lower financial vulnerability – and vice versa – over time.

Design/methodology/approach

This research uses a dynamic latent class model (latent transition analysis) to explore the dynamics of consumers’ financial vulnerability over time using longitudinal data obtained by repeatedly administering a measure of financial vulnerability.

Findings

This research finds that consumers in a state of lower vulnerability are “fragile” in having a relatively high likelihood of moving to a state of higher vulnerability, whereas those in a state of higher vulnerability are “entrenched” in having a relatively low likelihood of moving to a state of lower vulnerability. This pattern of results is called the “financial vulnerability trap.” While financial self-efficacy explains state membership, the consideration of future consequences drives state transitions.

Research limitations/implications

Future research could follow consumers over a longer period and consider the role of alternative psychological characteristics besides those examined.

Practical implications

This research provides practitioners with actionable insights regarding the drivers of changes in consumers’ financial vulnerability across time, showing the value of financial self-efficacy and the consideration of future consequences when developing strategies to prevent consumers from sliding from a state of lower to higher financial vulnerability over time.

Originality/value

There is scant research on financial vulnerability. Further, prior research has not examined whether and how consumers’ psychological characteristics help explain their membership of and transitions between states of different levels of financial vulnerability over time.

Details

European Journal of Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0309-0566

Keywords

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Book part

Margo A. Bagley

This chapter discusses current issues raised by the use of patents in university-industry technology commercialization. After introducing how patent laws operate in the…

Abstract

This chapter discusses current issues raised by the use of patents in university-industry technology commercialization. After introducing how patent laws operate in the global marketplace, this chapter provides an overview of the U.S. patent system, describing aspects of the process by which patents are obtained and enforced. The focus of the chapter then turns to some of the benefits and costs to academia of the impact of the Bayh-Dole Act, which allows universities to capture returns from federally funded research. The chapter identifies some of the challenges created by the expanding scope of subject matter eligible for patent protection and concludes with a discussion of some of the issues and opportunities associated with the strategic licensing and enforcement of patents that may impact invention and innovation in the academy and beyond.

Details

Technological Innovation: Generating Economic Results
Type: Book
ISBN: 978-1-84950-532-1

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