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1 – 10 of 44Banumathy Sundararaman and Neelakandan Ramalingam
This study was carried out to analyze the importance of consumer preference data in forecasting demand in apparel retailing.
Abstract
Purpose
This study was carried out to analyze the importance of consumer preference data in forecasting demand in apparel retailing.
Methodology
To collect preference data, 729 hypothetical stock keeping units (SKU) were derived using a full factorial design, from a combination of six attributes and three levels each. From the hypothetical SKU's, 63 practical SKU's were selected for further analysis. Two hundred two responses were collected from a store intercept survey. Respondents' utility scores for all 63 SKUs were calculated using conjoint analysis. In estimating aggregate demand, to allow for consumer substitution and to make the SKU available when a consumer wishes to buy more than one item in the same SKU, top three highly preferred SKU's utility scores of each individual were selected and classified using a decision tree and was aggregated. A choice rule was modeled to include substitution; by applying this choice rule, aggregate demand was estimated.
Findings
The respondents' utility scores were calculated. The value of Kendall's tau is 0.88, the value of Pearson's R is 0.98 and internal predictive validity using Kendall's tau is 1.00, and this shows the high quality of data obtained. The proposed model was used to estimate the demand for 63 SKUs. The demand was estimated at 6.04 per cent for the SKU cotton, regular style, half sleeve, medium priced, private label. The proposed model for estimating demand using consumer preference data gave better estimates close to actual sales than expert opinion data. The Spearman's rank correlation between actual sales and consumer preference data is 0.338 and is significant at 5 per cent level. The Spearman's rank correlation between actual sales and expert opinion is −0.059, and there is no significant relation between expert opinion data and actual sales. Thus, consumer preference model proves to be better in estimating demand than expert opinion data.
Research implications
There has been a considerable amount of work done in choice-based models. There is a lot of scope in working in deterministic models.
Practical implication
The proposed consumer preference-based demand estimation model can be beneficial to the apparel retailers in increasing their profit by reducing stock-out and overstocking situations. Though conjoint analysis is used in demand estimation in other industries, it is not used in apparel for demand estimations and can be greater use in its simplest form.
Originality/value
This research is the first one to model consumer preferences-based data to estimate demand in apparel. This research was practically tested in an apparel retail store. It is original.
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N. Nurmala, Jelle de Vries and Sander de Leeuw
This study aims to help understand individual donors’ preferences over different designs of humanitarian–business partnerships in managing humanitarian operations and to help…
Abstract
Purpose
This study aims to help understand individual donors’ preferences over different designs of humanitarian–business partnerships in managing humanitarian operations and to help understand if donors’ preferences align with their actual donation behavior.
Design/methodology/approach
Choice-based conjoint analysis was used to understand donation preferences for partnership designs, and a donation experiment was performed using real money to understand the alignment of donors’ preferences with actual donation behavior.
Findings
The results show that partnering with the business sector can be a valuable asset for humanitarian organizations in attracting individual donors if these partnerships are managed well in terms of partnership strategy, partnership history and partnership report and disclosure. In particular, the study finds that the donation of services and products from businesses corporations to humanitarian organizations are preferable to individual donors, rather than cash. Furthermore, donors’ preferences are not necessarily aligned with actual donation behavior.
Practical implications
The results highlight the importance of presenting objective data on projects to individual donors. The results also show that donors value the provision of services and products by business corporations to humanitarian operations.
Originality/value
Partnerships between humanitarian organizations and business corporations are important for the success of humanitarian operations. However, little is known about which partnership designs are most preferable to individual donors and have the biggest chance of being supported financially.
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Ismael Castillo-Ortiz, Minwoo Lee, Scott Taylor and Diego Bufquin
This paper aims to uncover patterns of Mexican craft beer consumers and guide companies’ decisions in the creation of new products, marketing strategies, advertising and promotion…
Abstract
Purpose
This paper aims to uncover patterns of Mexican craft beer consumers and guide companies’ decisions in the creation of new products, marketing strategies, advertising and promotion to increase craft beer sales and contribute to faster growth.
Design/methodology/approach
This is a conjoint analysis with a selection of attributes for new or renewed products, marginal disposition to pay for particular characteristics through brand-specific choice-based design, and market simulation.
Findings
This paper clearly demonstrates consumers’ preferences and willingness to pay in Mexico, with a cutting-edge market research technique combining the prioritization of preferred craft beer characteristics, and the price consumers are willing to pay for such product characteristics.
Research limitations/implications
The study's sample size of 501 responses is relatively small compared to the total number of craft beer consumers in Mexico. To enhance the validity and reliability of the findings, future studies should aim to obtain larger samples and compare their results with those of this study.
Practical implications
This study has important implications for craft beer producers, allowing them to develop targeted craft beers with appealing attributes for Mexican consumers, such as color, aroma intensity, alcohol degree intensity, bitterness, foam level and price.
Social implications
This study's market forecasting simulation technique is based on assumptions of consumer behavior and market dynamics. Although relevant variables were considered, unanticipated external factors or market changes could impact the forecasts' accuracy. This will allow for a more comprehensive understanding of craft beer consumer preferences in different markets and enhance the reliability of forecasting techniques.
Originality/value
This paper informs craft beer producers by providing valuable knowledge on customers’ preferences and willingness to pay to enhance craft beer companies’ product development processes.
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Stephen Wilkins, John J. Ireland, Joe Hazzam and Philip Megicks
To minimize customer churn, many service providers offer consumers the option of automatic contract renewal at the end of a contract period. Such agreements are known as rollover…
Abstract
Purpose
To minimize customer churn, many service providers offer consumers the option of automatic contract renewal at the end of a contract period. Such agreements are known as rollover service contracts (RSCs). This research quantifies the effect of RSCs and other related factors, such as incentives, on consumers' service choice decisions.
Design/methodology/approach
The study adopts choice-based conjoint analysis to assess the effect of RSCs on consumers' choices and to determine whether effect size varies when selecting a cell phone network or gym/leisure club provider, which represent lower-priced utilitarian and higher-priced hedonic services.
Findings
It was found that RSCs produce negative perceptions and intended behaviors for the majority of consumers across different product types. Nevertheless, as explained by social exchange theory, many individuals may be persuaded to enter into a RSC on the basis of reciprocity if they are offered an incentive such as a price discount or free product add-on.
Originality/value
In the marketing domain, this is the first comprehensive study to quantify the role of contract type among a range of other factors in consumers' decision-making when selecting a service. The authors' results offer context-specific implications for service marketers. First, RSCs are perceived more negatively in high-priced hedonistic categories, especially among those with lower incomes. Second, price discounts are more effective than product add-ons for motivating hedonic purchases, while product add-ons work better with utilitarian services.
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Nila Armelia Windasari, Ni Putu Desinthya Ayu Azhari and Ilham Fauzan Putra
This study aims to examine customer preferences toward Sharia hospitals and to provide a new viewpoint by looking at consumers’ perspectives on choosing health-care services…
Abstract
Purpose
This study aims to examine customer preferences toward Sharia hospitals and to provide a new viewpoint by looking at consumers’ perspectives on choosing health-care services. Despite the growing demand for halal products, halal services, particularly hospital and Sharia-based health-care services, receive very little attention in the literature compared to other Sharia-type services such as Sharia banking, insurance or even hospitality. Previous research on health care discussed under the Sharia perspective mainly focused on service quality, directing discussions to the service providers’ perspectives.
Design/methodology/approach
This study uses choice-based conjoint analysis to examine customer preferences toward Sharia health-care service. There are five attributes with three levels each. To reduce respondent fatigue, the authors used SPSS Orthoplan to generate an orthogonal factorial design, which resulted in 21 choice cards. Cross-sectional data were collected from an online survey using a platform from Populix, an independent panel survey provider, to ensure no sample selection bias. A total of 270 responses were obtained to represent Muslim populations across Indonesia.
Findings
The results showed that the highest preference is highly rated to the familiarity and certification of the hospital brand that implies trust and guarantees to add value with the existence of halal certification for hospitals. In addition, this study revealed that Sharia services have higher positive signals over the physical infrastructure in determining preferences. On the other hand, add-on components that support the integration of other halal industries, such as halal culinary tourism, halal tourism and integration with transportation and halal accommodation, are still minor in the current preference.
Originality/value
Previous research on health care discussed under the Sharia perspective mainly focused on service quality, which directs the discussions to the service providers’ perspectives. This study provides a new point of view by looking at consumers’ perspectives about their preferences and decisions to choose a Sharia hospital.
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Michael Fuchs, Guillaume Bodet and Gregor Hovemann
While consumer preferences for sporting goods have been widely researched within sport management, literature is lacking on aspects of social and environmental sustainability…
Abstract
Purpose
While consumer preferences for sporting goods have been widely researched within sport management, literature is lacking on aspects of social and environmental sustainability. Accordingly, this study aims to investigate the role of social and environmental sustainability for purchase decisions of sportswear and compares them to the role of price and functionality.
Design/methodology/approach
Based on a conjoint analysis among 1,012 Europeans, the authors conducted a two-step cluster analysis. First, the authors investigated the number of segments via Ward’s method. Second, the authors ran a k-means analysis based on part-worth utilities from the conjoint analysis.
Findings
The authors identified four segments which differ in terms of preferred product attributes, willingness to pay, and sociodemographic, behavioral, and psychographic characteristics: undecided, sustainable, price-focused and function-oriented consumers. Based on this segmentation, the authors found that the importance of social and environmental sustainability is growing, but not among all consumers.
Research limitations/implications
The generalizability of the study is limited since it is not built on a sample representative for the included European countries, it focuses on a single product, and participants are potentially subject to a social desirability bias.
Originality/value
The consumer analysis comprises the uptake of attributes related to social and environmental sustainability. The authors thereby address a literature gap as previous research (thematizing sporting goods) in the sport management field has often neglected sustainability elements despite their rapidly growing importance within the sport sector.
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Hua Meng and Hannan Sadjady Naeeni
This study aims to explain why low social conduct in corporate social responsibility (SC-CSR), especially employee exploitation, has a stronger negative impact on consumer…
Abstract
Purpose
This study aims to explain why low social conduct in corporate social responsibility (SC-CSR), especially employee exploitation, has a stronger negative impact on consumer reactions for service firms than for manufacturing firms.
Design/methodology/approach
Five experiments compared consumer reactions to service and manufacturing firms with low SC-CSR. Study 1 used a choice-based conjoint design to examine the relative importance of various shared attributes when consumers chose services versus goods. Study 2 revealed that low SC-CSR led to more pronounced negative consumers reactions toward service firms. Studies 3A and 3B explained this difference through a serial mediation analysis. Study 4 ruled out an alternative explanation regarding the differentiated effects.
Findings
The results reveal that consumer reactions to employee exploitation in service firms are more negative compared to manufacturing firms. This is because consumers’ sense of presence (i.e. feeling of being there) is stronger in a service setting, leading to more intense empathetic emotions toward service employees.
Originality/value
This research contributes to the CSR literature by challenging the conventional notion that sweatshops are more problematic for manufacturing firms. By contrast, the results indicate a stronger negative effect on service firms. It contributes to the services marketing literature by conceptualizing a novel cognitive mechanism. Traditionally, consumers’ negative reactions are driven by anger. However, the authors show that empathetic feelings toward mistreated employees play a predominant role. While it is imperative for all firms to ensure fair treatment of their employees, the findings underscore the heightened significance of this aspect for service firms, given their susceptibility to more pronounced negative effects.
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Leila Cheikh Ismail, Hadia Radwan, Tareq Osaili, Eman H. Mustafa, Fatema M. Nasereddin, Hafsa J. Saleh, Sara A. Matar, Sheima T. Saleh, Maysm N. Mohamad, Rameez Al Daour, Radhiya Al Rajaby, Eman R. Saif, Lily Stojanovska and Ayesha S. Al Dhaheri
Nutrition labels provide a cost-effective method of conveying nutrition information to consumers. This study aimed to assess the use of nutrition facts panels, knowledge of…
Abstract
Purpose
Nutrition labels provide a cost-effective method of conveying nutrition information to consumers. This study aimed to assess the use of nutrition facts panels, knowledge of traffic light labelling (TLL) and perceived healthiness of food items using TLL among consumers.
Design/methodology/approach
A web-based cross-sectional study was conducted among adults in the United Arab Emirates (UAE) (n = 1,322). TLL knowledge score was derived for each participant. Conjoint analysis was used to calculate the utilities and relative importance of the perceived healthiness scores for four attributes (fat, saturated fat, total sugar, salt) at the aggregate level.
Findings
Participants had a positive attitude towards TLL but were less familiar with TLL than the nutrition facts panel (47.4 vs 85.8%). The mean TLL knowledge score was 3.6 out of 7 (51.6%). Younger age, higher education, higher income, and health-related qualifications were associated with higher scores. Conjoint analysis showed that participants tend to choose products with greener labels, especially for sugars (80.1%) and avoid red labels for fats. Sugars had the highest percentage value of relative importance compared to the other attributes (27.1%).
Originality/value
The study outcomes offer valuable insights into the extent of consumer awareness, comprehension and utilization of nutrition facts panels in the UAE. These findings contribute essential knowledge for a deeper understanding of the impact of nutrition labels on consumer behaviour and decision-making in the region.
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V.T. Rakesh, Preetha Menon and Ramakrishnan Raman
Pricing is widely acknowledged as a market entry challenge for servitising companies. The purpose of this research is to ascertain the attributes that contribute to willingness to…
Abstract
Purpose
Pricing is widely acknowledged as a market entry challenge for servitising companies. The purpose of this research is to ascertain the attributes that contribute to willingness to pay (WTP) for industrial services and suggest incorporating those attributes to a pricing model.
Design/methodology/approach
Three attributes (Quality of Service, Nearness of Service Provider and Brand Equity of Service Provider) were analyzed at three respective levels to ascertain their importance on WTP. Conventional conjoint analysis (CCA), using an orthogonal design, was the method used. The 346 respondents were decision-makers and top management professionals from various industries.
Findings
Brand Equity emerged as the most significant attribute contributing to WTP, having more than 45% importance – followed by the Quality and Nearness.
Research limitations/implications
The scope of the study is limited to the industries and its Allies. However, the relative importance of the attributes may vary depending on the type of service.
Practical implications
The importance of attributes and their WTP preference helps future researchers create a pricing model involving these attributes. This helps service providers price their services rationally, thus succeeding in servitization.
Social implications
Product life is extended because the manufacturers themselves are servicing it and also help recycle the product with their expertise. Servitization is also helpful for the Indian economy, as it is turning into a manufacturing economy.
Originality/value
This research investigates three attributes that contribute to WTP, in accordance with their level of contribution. It also provides a direction to establish an adequate pricing model for industrial services.
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The purpose of this paper is to investigate and compare what criteria novice and habitual entrepreneurs use while adding members to the founding team.
Abstract
Purpose
The purpose of this paper is to investigate and compare what criteria novice and habitual entrepreneurs use while adding members to the founding team.
Design/methodology/approach
This paper uses conjoint analysis (CA) to provide the order of preference for the “choice attributes.” The logic of CA is that even if two or more attributes influence the choice, it is unlikely that those attributes will have equal importance for founders with different entrepreneurial experiences.
Findings
This paper found a significant difference in the ranking of the attributes by novice and habitual entrepreneurs. In novice entrepreneurs, the effect of direct ties in the form of kinship ties has the highest preference, followed by prior social contact and prior work relations. However, personal friendships and resource dependency received lesser importance than interpersonal attraction because of the similarity in vision, beliefs and values. Habitual entrepreneurs, however, valued resource dependency and prior work relations more than kinship ties. Also, unlike novice entrepreneurs, habitual entrepreneurs sought cofounders from their indirect ties.
Practical implications
There has been an explosion of interest and funding for programs that help entrepreneurs establish a cofounding team. The authors inform these programs related to the decision concerning assisting novice and habitual entrepreneurs.
Originality/value
While prior studies examined a single attribute at a time, the strength of this study lies in simultaneously tapping all attributes, along with multiple indicators for each attribute. Additionally, this study distinguishes the selection criteria of cofounders based on the entrepreneurial expertise of the lead founder.
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