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The authors empirically evaluated the effect of price promotions on customer quality evaluations and repeat-purchase intentions in coffee chain stores. The moderating role of customer characteristics in this process was also investigated.

Consumers in 12 coffee chain stores were surveyed and 488 usable questionnaires were obtained. Relationships in the test model were examined using structural equation modeling techniques. A multiple-group solution was used to test the moderating effects of consumer characteristics.

The results of structural equation modeling analyses suggested that price-promotion activities at Starbucks in Taiwan had a favorable effect on customer quality evaluations and positively influenced repeat-purchase intentions. The moderating effects of consumer characteristics were partially supported. Whereas sex showed no significant moderating effect, consumption frequency did demonstrate a moderating effect.

The results indicate that existing customers may see price promotions at Starbucks in Taiwan as a reward or incentive, and thus lead to an increase in favorable evaluations. The findings provide a new perspective that may encourage those involved in the marketing of coffee chain stores to manage price promotions in a more strategic manner by considering customer characteristics.

The effects of price promotions on brand evaluation remain controversial and may vary among product categories. Additionally, most studies regarding price promotions have used an experimental approach, and few studies of price promotions in the coffee industry have been reported. The study is among the first to empirically examine the effects of price promotions and the moderating role of consumer characteristics in the process at coffee chain stores.

The purpose of this paper is to explore the role of mediation and moderation mechanisms between firm-level effects of transformational leadership (TFL) on unit-level performance across levels.

The authors used surveys to collect data from 800 senior managers at the firm level and 1,377 unit managers from 800 units of 100 firms from semiconductors, optoelectronics, computer electronics, and telecommunications industries. The industries were chosen because these firms focus on expanding their businesses and encourage extensive knowledge sharing among the firms and at all levels within the organizations.

In this study, the authors theorized that firm-level effects of TFL on unit-level performance across levels were positively related to unit-level performance. Unit-level knowledge sharing mediates the positive relationship between firm-level TFL and unit-level performance. A cross-level interaction effect of firm-level TFL and unit-level absorptive capacity showed that a positive unit-level absorptive capacity enhanced firm-level influence of TFL on unit-level knowledge sharing. Unit-level absorptive capacity moderates the positive relationship between unit-level knowledge sharing and unit-level performance.

First, the authors attempt to integrate the leadership and knowledge management research by exploring the critical mediator of unit-level knowledge sharing in explaining the effects of firm-level TFL on employees’ performance at the unit level. This approach is important because it extends the research areas of the two fields, and also clarifies issues regarding how and why TFL at the top of the organization positively impacts the performance of employees at a lower level of the organizational hierarchy. Second, the effectiveness of firm-level TFL depends on the absorptive capacity of each unit. The importance of absorptive capacity and the consequences of leadership behaviors have been emphasized in studies.