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Article
Publication date: 20 November 2023

Md Rakibul Hasan, Yosef Daryanto, Chefi Triki and Adel Elomri

The rapidly growing e-commerce industry with its special characteristics brings new challenges to the optimization of the supply chain and inventory management. This study aims to…

Abstract

Purpose

The rapidly growing e-commerce industry with its special characteristics brings new challenges to the optimization of the supply chain and inventory management. This study aims to investigate the inventory-related optimization of an e-marketplace official store that works on a business-to-customer system when cashback promotion is used to attract more customers. Also, it proposes a new inventory model to maximize the e-commerce profit by optimizing the cashback amount and delivery period.

Design/methodology/approach

The proposed model assumes that customer demand is a function of price and delivery time and that price is affected by the cashback amount. The e-commerce operator has a profit-sharing contract with an e-payment company that facilitates the payment. E-commerce also builds collaboration under a cost-sharing contract with a supplier to ensure product delivery. A mathematical model is developed and the related theories are investigated. A numerical example illustrates the validity of the model and a sensitivity analysis is carried out to give useful insights.

Findings

A new inventory model for an e-market system has been introduced which shows the impact of a cashback promotion on the e-commerce business. This study shows that managers can optimize the cashback amount and its delivery time to get the maximum profit. In certain cases, the manager may set a high cashback amount (e.g. 100%) to attract customers to place more orders.

Originality/value

This study presents a new inventory model for today’s fast-growing e-commerce business; therefore, the results contribute to the understanding of promotion program practices and inventory management and provide insights to develop efficient e-commerce managerial decisions.

Graphical abstract

Details

Journal of Modelling in Management, vol. 19 no. 3
Type: Research Article
ISSN: 1746-5664

Keywords

Article
Publication date: 24 January 2023

Marek Hudik, Miroslav Karlíček and David Říha

This paper aims to examine whether consumers’ appreciation of promotional gifts exceeds firms’ cost of providing these gifts. The paper also compares characteristics of…

Abstract

Purpose

This paper aims to examine whether consumers’ appreciation of promotional gifts exceeds firms’ cost of providing these gifts. The paper also compares characteristics of appreciated and unappreciated gifts.

Design/methodology/approach

The authors surveyed 1,289 college students in five European countries. The authors use willingness to accept cash (WTA) for an item to assess consumers’ appreciation of promotional gifts. They then compare WTA to firms’ estimated cost of providing the gifts.

Findings

On average, consumers’ appreciation of promotional gifts is 2.4 times the estimated cost of these gifts to sellers. Appreciated gifts tend to be less costly, tend to accompany more expensive purchased items and are more likely to complement these items. The results also reveal that more expensive items come with more costly gifts, although the gifts’ cost increases less than proportionally with the associated items’ price. The gift items are appreciated by men more than women.

Originality/value

This study enriches the literature on promotional gifting by introducing a simple measurement that can help firms decide whether to use gifts or discounts to promote their products.

Details

Journal of Consumer Marketing, vol. 40 no. 3
Type: Research Article
ISSN: 0736-3761

Keywords

Article
Publication date: 20 January 2023

Abdul Wahid Khan and Jatin Pandey

Consumer food behavior has received considerable attention from marketers, researchers and regulators. With the rising obesity epidemic worldwide, the existing literature and…

2006

Abstract

Purpose

Consumer food behavior has received considerable attention from marketers, researchers and regulators. With the rising obesity epidemic worldwide, the existing literature and previous reviews provide a limited understanding of consumers’ unhealthy food choices. To address this gap, this study aims to investigate consumer psychology for food choices in terms of mental processes and behavior.

Design/methodology/approach

This systematic literature review analyzed 84 research papers accessed from the Web of Science database and selected high-quality marketing journals. A detailed analysis identified themes arranged in an organizing framework. Gaps, limitations, convergence and ambivalent findings were noted to derive future research directions.

Findings

Major themes in the literature include food marketers’ actions (food stimuli and context), environmental influence (micro and macro) and consumer psychology and personal factors, leading to food choice related decisions. The antecedents and consequences of food choice healthiness are summarized. Several studies converged on the benefits of health motivations and goals, food literacy and customizing meals bottom-up on food choice healthiness.

Research limitations/implications

This review helps researchers gain state-of-the-art understanding on consumer psychology for food choices. It presents ambivalent and converging findings, gaps and limitations of extant research to inform researchers about issues that need to be addressed in the literature. This review presents future research questions to guide research on critical issues. This literature review contributes to marketing domain literature on consumer’s food well-being and overall well-being.

Practical implications

This review offers actionable insights for food marketers, policymakers and nongovernmental organizations to drive consumer demand for healthier foods, focusing on food labeling, food environment, message framing and raising consumer awareness.

Originality/value

This review offers current understanding of consumer psychology for food choices focusing on healthiness, an aspect lacking in previous literature reviews.

Details

European Journal of Marketing, vol. 57 no. 9
Type: Research Article
ISSN: 0309-0566

Keywords

Open Access
Article
Publication date: 19 March 2024

Jiayuan Zhao, Hong Huo, Sheng Wei, Chunjia Han, Mu Yang, Brij B. Gupta and Varsha Arya

The study employs two independent experimental studies to collect data. It focuses on the matching effect between advertising appeals and product types. The Elaboration Likelihood…

Abstract

Purpose

The study employs two independent experimental studies to collect data. It focuses on the matching effect between advertising appeals and product types. The Elaboration Likelihood Model serves as the theoretical framework for understanding the cognitive processing involved in consumers' responses to these advertising appeals and product combinations.

Design/methodology/approach

This paper aims to investigate the impact of advertising appeals on consumers' intentions to purchase organic food. We explored the interaction between advertising appeals (egoistic vs altruistic) and product types (virtue vs vice) and purchase intention. The goal is to provide insights that can enhance the advertising effectiveness of organic food manufacturers and retailers.

Findings

The analysis reveals significant effects on consumers' purchase intentions based on the matching of advertising appeals with product types. Specifically, when egoistic appeals align with virtuous products, there is an improvement in consumers' purchase intentions. When altruistic appeals match vice products, a positive impact on purchase intention is observed. The results suggest that the matching of advertising appeals with product types enhances processing fluency, contributing to increased purchase intention.

Originality/value

This research contributes to the field by providing nuanced insights into the interplay between advertising appeals and product types within the context of organic food. The findings highlight the importance of considering the synergy between egoistic appeals and virtuous products, as well as altruistic appeals and vice products. This understanding can be strategically employed by organic food manufacturers and retailers to optimize their advertising strategies, thereby improving their overall effectiveness in influencing consumers' purchase intentions.

Details

British Food Journal, vol. 126 no. 13
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 15 February 2024

Hsunchi Chu

This research draws on drive reduction theory and mental accounting theory to understand how the prospect of reselling used items can influence consumer feelings of consumption…

Abstract

Purpose

This research draws on drive reduction theory and mental accounting theory to understand how the prospect of reselling used items can influence consumer feelings of consumption guilt and impact their willingness to purchase new products.

Design/methodology/approach

We conducted two studies with between-subjects designs to explore this relationship. In Study 1, we examined the correlation between consumers' perceived guilt and their willingness to buy a new product, considering their awareness of the product’s resale potential. Study 2 delved into the aspect of reselling a similar old product already owned by the consumer.

Findings

The findings suggest three key insights. First, consumers' awareness of resale potential significantly affects their guilt perception and purchasing decisions. Second, the resale reference price (RRP) can decrease guilt perception but increase the intention to buy a new product. Lastly, when consumers are aware of the resale value of a previously owned product that is similar to the desired new product, the effect of the RRP on their purchasing intent is mediated by consumer guilt.

Originality/value

This research fills a theoretical gap by empirically exploring the emotional motivations behind consumer resale behavior. It presents a novel perspective on how resale activities can shape feelings of guilt and impact purchasing decisions. This offers important implications for understanding the dynamics of consumer behavior in the second-hand market.

Details

Marketing Intelligence & Planning, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0263-4503

Keywords

Article
Publication date: 2 January 2024

Yijie Cao and Jun Wang

The purpose of this study is to test the impact of time and price sensitivity on consumer satisfaction and purchase intention on online-to-offline (O2O) takeout platforms and…

Abstract

Purpose

The purpose of this study is to test the impact of time and price sensitivity on consumer satisfaction and purchase intention on online-to-offline (O2O) takeout platforms and explore the moderating effect of purchase preference on time sensitivity and satisfaction, as well as price sensitivity and satisfaction, in order to guide market pricing.

Design/methodology/approach

A structural equation model (SEM) of customer purchase intention was constructed, and the relationships between the variables (time sensitivity, price sensitivity, satisfaction and purchase intention) were examined. The completed questionnaires of 349 respondents were collected from the Questionnaire Star platform in China. The research model and hypotheses were then tested. Analytic hierarchy procedure was used to determine the moderating effect of purchase preference. Finally, the study proposes a pricing strategy for customer-active selective services.

Findings

Satisfaction positively influences purchase intention, and price sensitivity significantly increases satisfaction and further increases purchase intention; however, time sensitivity negatively affects satisfaction. Specifically, purchase preference has strongly moderated the relationship between time, price sensitivity and satisfaction. In addition, the findings show that when purchase preference is high, the effect of price sensitivity on satisfaction is stronger, suggesting the importance of purchase preference in strengthening purchase intentions. The research work recommends a pricing strategy involving value-added pricing primarily for time-sensitive customers, which can help build a high-end brand image and reduce price competition. Reduced pricing is mainly for price-sensitive customers, which is conducive to stimulating consumption within a specific time. This pricing strategy is important for adjusting market sensitivity and flexibility.

Originality/value

This research provides new ideas for related disciplines and guidance for the differentiated pricing and promotion of takeout platforms, as well as a theoretical basis for the diversified development of takeout platforms, improvement of personalized service quality and enhancement of customer stickiness. This study fills gaps in the existing literature on the moderating effect of purchase preference on time sensitivity and satisfaction and price sensitivity and satisfaction.

Details

British Food Journal, vol. 126 no. 4
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 26 May 2023

Wanqi Liang, Deyi Zhou, Muhammad Rizwan and Samir Huseynov

By conducting an online experiment, this paper proposes and tests a conceptual model about the impact of price labeling strategy on consumers' perceived price difference and…

Abstract

Purpose

By conducting an online experiment, this paper proposes and tests a conceptual model about the impact of price labeling strategy on consumers' perceived price difference and purchase intention. The authors also analyze differential influences of shopping channels and price levels on documented effects. The paper provides strategic suggestions for online grocery store managers to adopt profit-maximizing labeling decisions.

Design/methodology/approach

In a between-subject experiment, the authors simulated a shopping task with eight scenarios by exogenously manipulating price labeling strategies (unit price/retail price), sales channels (online/offline) and price levels (higher/lower than the average price). Participants are randomly assigned to one of the eight scenarios and asked to report their perceived price difference between the stimuli product and the average market price and their purchase intention on the stimuli product.

Findings

Experimental results show that compared to the unit price, the retail price increases the perceived price difference. It shows that the unit price increases consumers' purchase intention when the product price is higher than the average market price. However, these effects only exist in the online shopping context.

Originality/value

This paper extends the study of price labeling strategy to an online shopping context and examines the mediation effect of the perceived price difference.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 35 no. 11
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 21 July 2023

Yudha Dwi Nugraha, Suliyanto  , Rezi Muhamad Taufik Permana, Azib   and Deno Hadiarti

The purpose of this study is to investigate the impulsive purchase of Generation Z of Muslim women on TikTok Shop. The primary attention in this stimulation investigation drives…

2112

Abstract

Purpose

The purpose of this study is to investigate the impulsive purchase of Generation Z of Muslim women on TikTok Shop. The primary attention in this stimulation investigation drives the impulsive buying between the Generation Z of Muslim women customers in Indonesia. This study provides valuable concept to help a company or cosmetic brand grow the marketing strategy for stimulating impulsive behaviour of Generation Z customers on TikTok Shop.

Design/methodology/approach

An online survey of 256 Muslim women consumers of the Generation Z was used to collect the data. Covariance-based structural equation modelling was applied to assess the five hypotheses.

Findings

The results of this study indicate that micro-celebrities post authenticity has a positive and significant relationship with utilitarian browsing. However, micro-celebrities post authenticity did not have a positive and significant relationship with hedonic browsing. This study also concludes that utilitarian browsing was found to have a positive and significant relationship with hedonic browsing. Finally, hedonic browsing was found to have a positive and significant effect on reminiscence impulse purchase intention and designed impulse purchase intention.

Research limitations/implications

The primary limitation is the research sample that only consists of Indonesian TikTok Shop customers. Next, the researchers could examine the research model in several countries to expand its generalisation. The second one, this research does not consider the origin country of a cosmetic product. The future study must investigate the local and foreign cosmetics to see the preference and the differences in the impulsive purchase, especially for Z women generation customer. Third, this study quantifies the intention to buy impulsively so that the following research must investigate the ownership of the cosmetics product that has been bought before. Finally, the research only involves a quantitative research method. The future study must investigate with another approach, such as a qualitative method or mixed-method, in the impulsive purchase intention context.

Practical implications

A cosmetic company or marketer could maximise the authenticity, relevancy and attractive information that is posted by micro media social celebrities or media social influencers. Cosmetic companies or marketers must provide comprehensive information to satisfy customers’ browsing actions. Finally, besides the information related to the limited cosmetics product stock, discount and promotion as the effective strategy to stimulate the impulsive buying, the cosmetics marketing can use gamification, increasing the picture quality and equipping product descriptions, and making educational content.

Social implications

The existence of TikTok Shop is increasing the number of cosmetics products and competitors because of product’s excessive availability in the market. In the social benefit context, the Generation Z Muslim women can purchase and use various cosmetics product available on TikTok Shop, but customers must be on guard by knowing the cosmetics material to prevent the healthiness. In addition, the existence of TikTok Shop and the impulsive purchases by the Generation Z Muslim women are also increasing the retailer or local cosmetics producer income.

Originality/value

This study is a contribution to consumer behaviour literature by raising the Stimulus–Organism–Response framework used in determining the factors influencing browsing and impulsive consumption of cosmetic products on TikTok Shop.

Article
Publication date: 21 June 2023

Miyuri Shirai

This study aims to investigate the psychological process of intertemporal choices between larger-later and smaller-sooner monetary options. Prior research showed consumer…

Abstract

Purpose

This study aims to investigate the psychological process of intertemporal choices between larger-later and smaller-sooner monetary options. Prior research showed consumer impatience – a tendency to prefer a smaller-sooner option over a larger-later option. This research identifies an individual difference that predicts patience and mediators that explain the underlying mechanism.

Design/methodology/approach

Two studies are conducted. Study 1 examines whether the implicit theory of intelligence consumers endorse (i.e. entity theory vs incremental theory) constitutes an antecedent of patience and whether their thoughts regarding anticipated purchase with the chosen monetary option (i.e. hedonic versus utilitarian purchase) mediate the relationship. Study 2 analyzes whether psychological reactance toward larger-later options is a mediator in this relationship using a perceived threat to freedom and affect as reactance indicators.

Findings

Entity-oriented consumers exhibited less patience than incremental-oriented consumers, especially when anticipating a hedonic purchase. Moreover, entity-oriented consumers perceived a threat to freedom from larger-later options more strongly – this enhanced perception influenced patience through two routes. One route is that the perceived threat to freedom leads to more consideration of a hedonic purchase rather than a utilitarian purchase, thereby decreasing patience. The other route is that the perceived threat to freedom elicits a stronger negative affect, resulting in lower patience.

Originality/value

Findings of this research shed light on the understanding of patience. They demonstrate that consumers’ implicit theory orientation is a crucial individual difference that can explain patience. Also, demonstrating the mediating roles of anticipated purchase using the hedonic/utilitarian classification and psychological reactance expanded literature by showing how they internally interact.

Details

Journal of Consumer Marketing, vol. 40 no. 7
Type: Research Article
ISSN: 0736-3761

Keywords

Article
Publication date: 29 December 2022

Esther L. Kim and Sarah Tanford

Cross-selling becomes critical for business success as pent-up travel demand drives travelers to spend more on vacations. The primary purpose of this research is to identify if an…

Abstract

Purpose

Cross-selling becomes critical for business success as pent-up travel demand drives travelers to spend more on vacations. The primary purpose of this research is to identify if an unexpected discount leads to consumers' additional purchases online. This research proposes effective cross-selling strategies across hospitality sectors.

Design/methodology/approach

Two experiments were conducted to investigate factors that influence travelers' add-on spending. Study 1 determined the psychological mechanism of unexpected discounts on hotel customers' additional spending by individual thinking styles. A 2 (discount: none vs surprise) x 2 (thinking style: holistic vs analytic) quasi-experimental design was utilized. Study 2 applied the identified pricing strategy by individual thinking styles to cruise line add-on selling. A 2 (discount: none vs surprise) x 2 (product type: hedonic vs utilitarian) x 2 thinking style (holistic vs analytic) quasi-experiment was used.

Findings

The findings indicate that an unexpected discount increases holistic thinkers' overall travel spending, regardless of add-on types. Although the unexpected discount effect on analytic thinkers' overall spending was significant, an unexpected discount enhanced their intentions to purchase a hedonic add-on.

Practical implications

Hospitality operators can improve cross-selling strategies with a surprise discount offer. Offering add-on items in the same transaction with a cabin booking will increase add-on purchases. Hotels can make add-on purchases more appealing by emphasizing the experiential aspects of a hotel stay.

Originality/value

This research broadens knowledge of cross-selling by linking add-on purchases to discount pricing on a primary product. The findings provide new strategies to stimulate add-on purchases and maximize profitability.

Details

Journal of Hospitality and Tourism Insights, vol. 6 no. 5
Type: Research Article
ISSN: 2514-9792

Keywords

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