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1 – 10 of over 38000This paper aims to analyze the benefits of the blockchain to the circular economy (CE), which is composed of both closed-loop supply chain (CLSC) systems and reverse omnichannel…
Abstract
Purpose
This paper aims to analyze the benefits of the blockchain to the circular economy (CE), which is composed of both closed-loop supply chain (CLSC) systems and reverse omnichannel solutions. By ensuring transparency, traceability, visibility and security, the blockchain allows firms to acquire operational capabilities through a CLSC and service capabilities through a reverse omnichannel, which can boost business performance considerably. The related network of relationships can be reinforced by establishing incentives, which entail both smart contracts in the blockchain and active return approaches in CE.
Design/methodology/approach
After identifying the boundaries of the theoretical framework, several research hypotheses are developed according to the literature review and emerging gaps. These gaps link to the impact of the blockchain on CE systems (CLSC and reverse omnichannel), as well as the influence on business performance. The hypotheses are then tested using structural equation modeling and adopting a partial least squares-path modeling technique on a dataset composed of 157 firms. Finally, multigroup analysis is used to test the impact of incentives on the research hypotheses.
Findings
The blockchain facilitates a more efficient CE system, although reverse omnichannel solutions seldom bring any benefits to performance. The shift from a passive to an active return approach must be carefully evaluated. The CLSC network can benefit from an active return approach by developing appealing incentives for collectors and enhancing the positive effects of the blockchain. In contrast, consumer incentives can have detrimental effects on the blockchain. Various combinations of incentives can only bring a few business performance increases, while collector incentives are vital to reinforce the CE system's operational and service capabilities.
Originality/value
This paper takes a new approach toward the study of CE, which considers a dual circular system composed of a CLSC and a reverse omnichannel. The research explores whether the adoption of blockchain technology enables better return processes by improving the operations in CLSC and services in reverse omnichannel. Finally, this is the first empirical work to evaluate the benefits emerging from incentives, which can activate smart contracts in the blockchain and enable active return approaches in CE.
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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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Seyedeh Fatemeh Kalantarzadeh Tezerjany
The principal objective of this research is to delve into the intricate dynamics surrounding the contentious exploitation of incentive-based marketing tactics within online food…
Abstract
Purpose
The principal objective of this research is to delve into the intricate dynamics surrounding the contentious exploitation of incentive-based marketing tactics within online food delivery (OFD) services in Malaysia.
Design/methodology/approach
The data collection process involved the development of an online survey questionnaire rooted in quantitative research methodology. To ascertain a representative sample, a probability-based simple random sampling approach was undertaken, and the data was gathered using the Google Form survey tool. To empirically test the proposed model, data was collected from a sample of 350 participants. The hypotheses were evaluated using the PLS-SEM technique to scrutinize the relationships within the model and assess potential variations across different groups.
Findings
The results delineated that all the hypotheses were supported; however, Irritation was rejected and unable to have an influence on consumer attitudes and purchase behaviour towards mobile advertising.
Practical implications
By offering incentives, marketers can foster greater acceptance of advertising among consumers, thereby enhancing their engagement and interaction with mobile advertising in the OFD services.
Originality/value
The advancement of mobile technology has facilitated the emergence of innovative marketing tactics, enabling firms and brands to establish direct communication channels with prospective consumers.
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Yuanyuan Wu, Liuyan Chen, Eric W.T. Ngai and Pengkun Wu
The objective of this study is to investigate the interaction effect between incentive type (financial and compassionate incentives) and the ethicality of merchant strategy on…
Abstract
Purpose
The objective of this study is to investigate the interaction effect between incentive type (financial and compassionate incentives) and the ethicality of merchant strategy on consumer willingness to post positive reviews, while also examining potential variations in consumer responses based on consumption experience, shopping frequency and social class.
Design/methodology/approach
Building upon construal level theory, we hypothesized the moderating influence of the ethicality of merchant strategy and examined the three-way interaction among consumers’ demographic characteristics (i.e. consumption experience, shopping frequency and social class), incentive type and the ethicality of merchant strategy. To empirically test our hypotheses, we conducted four experiments and employed ANOVA for data analysis.
Findings
The ethicality of merchant strategies moderates the association between incentive type and consumer willingness to post positive reviews, with compassionate incentives eliciting more pronounced moral judgments toward merchant strategies compared to financial incentives. The moderating effect of the ethicality of merchant strategy on the relationship between incentive type and consumer willingness to post positive reviews is particularly strong among consumers who have favorable consumption experiences, engage in frequent shopping and belong to lower social classes.
Originality/value
This study contributes to the existing literature on online reviews by examining the impact of compassionate incentives on consumer review behaviors, analyzing the ethicality of merchant strategies within the realm of online reviews and investigating variations in consumer responses to merchant strategies regarding consumption experience, shopping frequency and social class.
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Electric cars have very little market share in developing countries despite their environmental benefits. Thus, governments have started promoting electric cars by providing…
Abstract
Purpose
Electric cars have very little market share in developing countries despite their environmental benefits. Thus, governments have started promoting electric cars by providing financial incentives to consumers. The current article aims to examine the direct and indirect effects of government financial incentives on consumer electric car adoption in India.
Design/methodology/approach
The study followed a quantitative research method that employed a self-administered survey questionnaire. Structural Equation Modelling and Multi-Group Analysis were followed for data analysis.
Findings
The study revealed that financial incentives have an indirect effect on electric car adoption intention rather than a direct effect. In addition, financial incentives were found to have a direct effect on attitude and Perceived Behavioural Control (PBC). Attitude and PBC positively influenced consumer adoption intention.
Practical implications
The insights and implications from the present study would help policymakers and marketers to formulate better incentive policies and market strategies to increase consumer acceptance of electric cars in developing countries.
Originality/value
The study contributes to the literature by analysing the underlying mechanism that links government financial incentives to electric car adoption intention. This study also explored the direct effect of financial incentives on attitude and PBC, which are less investigated in electric vehicle literature. In addition, the present article also assessed the moderating role of age in electric car adoption, which has mixed evidence in the literature, and such studies are scarce in the Indian context.
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Xu Chen, Yingliang Wu, Junfeng Liao, Wenming Zuo and Rujie Zhong
The incentive cost of enterprises increases significantly with the rapid growth of the social commerce (SC) market. In this context, enterprises need to develop the optimal…
Abstract
Purpose
The incentive cost of enterprises increases significantly with the rapid growth of the social commerce (SC) market. In this context, enterprises need to develop the optimal strategy to improve incentive effectiveness and reduce cost. Different types of consumers’ responses to incentives bring different values to enterprises. Hence, this paper proposes the social commerce value network (SCVN) to help enterprises study the contributions of different types of consumers to the network.
Design/methodology/approach
Based on the graphical evaluation and review technique (GERT), the authors construct the social commerce value GERT (i.e. SCV-GERT) network and design three progressive experiments for estimating the value contributions of “network stage”, “consumer type”, and “resource type” to the SCVN under the same incentives. The authors initialize the SCV-GERT model with consumer data in SC and distinguish the most valuable consumers by adjusting the incentive parameters.
Findings
The results show that the SCV-GERT model can well describe the value flow of SCVN. The incentive on forwarding consumers brings the greatest value gain to the SCVN, and social trust contributes the most to forwarding consumers.
Practical implications
Under the guidance of the results, platforms and enterprises in SC can select the optimal type of consumers who bring the maximum network value so as to improve the effectiveness of incentive strategy and reduce marketing costs. A four-level incentive system should be established according to the ranking of the corresponding value gains: forwarding consumers > agent consumers > commenting consumers > potential consumers. Enterprises also need to find ways to improve the social resource investments of consumers participating in SC.
Originality/value
This paper investigates the incentive problem in SC grounded in the SCVN and uses the GERT method to construct the SCV-GERT model, which is the first attempt to introduce GERT into the SC context. This study also makes up for the lack of comparative research on different types of consumers in SC and can provide support for enterprises’ customer relationship management and marketing decisions.
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Katariina Juusola, Kwabena G. Boakye, Charles Blankson and Guangming Cao
This study aims to develop and validate a cross-national framework to identify the motivation underpinning consumers' (i.e. the general public's) loyalty toward credit card usage…
Abstract
Purpose
This study aims to develop and validate a cross-national framework to identify the motivation underpinning consumers' (i.e. the general public's) loyalty toward credit card usage. The following research questions guided the study: (1) What factors motivate consumers to stay loyal to their credit card? (2) Does the investment model (regarding satisfaction and investment size) mediate the relationship between factors motivating consumers to stay loyal to their credit card?
Design/methodology/approach
This study employs the investment model theory (Rusbult, 1980) as a theoretical framework and uses structural equation modeling to develop and validate a cross-national framework, addressing factors that motivate consumers to stay loyal to credit card brands. In addition, the authors test the mediating effect of the investment model on the relationship. Survey data were collected from the United States and France.
Findings
The findings revealed four factors (incentives, customer service, investment size and satisfaction) that impact consumer credit card loyalty behavior in the two mature credit card markets. The authors find empirical support for two of four hypotheses. That is, investment size mediates the relationship between incentives and consumer loyalty, and satisfaction mediates the relationship between customer service and consumer loyalty. Moreover, unlike the French sample, the American sample produced a significant finding for investment size to mediate the relationship between customer service and consumer loyalty.
Originality/value
This paper validates and extends the investment model theory in the marketing of credit cards within a cross-national setting. Most studies on credit card consumption focus on the college student segment, and there is less understanding of the motivation to stay loyal to using a credit card from the general public who are not necessarily college students. Given the scarce stream of empirical studies dealing with cross-national consumer motivation, choice criteria of credit cards, and loyalty toward credit cards, this research comes at an opportune moment as credit card firms differentiate their card brands in the global marketplace. Further, a dataset originating from two mature Western economies has been put forward for the benefit of practitioners and researchers.
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Khoa Tien Tran, Nga Le and Phuong V. Nguyen
In response to increasing concerns about climate change and evolving public policies, consumer behaviour and attitudes are shifting towards the adoption of renewable energy…
Abstract
Purpose
In response to increasing concerns about climate change and evolving public policies, consumer behaviour and attitudes are shifting towards the adoption of renewable energy solutions like photovoltaic (PV) panel systems. This study aims to address this shift by developing a conceptual framework grounded in the Unified Theory of Acceptance and Use of Technology and Diffusion of Innovation theory. The framework identifies and analyses the factors influencing Vietnamese consumers’ decisions to install PV panels, focusing on the roles of consumer innovativeness, government incentives and social influence. By examining these dynamics, this study offers insights to inform policy in promoting renewable energy adoption.
Design/methodology/approach
Data from 339 Vietnamese households were analysed using SmartPLS 3.0 to test the proposed hypotheses. A structured questionnaire survey focused on consumer innovativeness, government incentives and social influence. The partial least squares structural equation modelling approach was used to evaluate the relationships between constructs.
Findings
The findings indicate that consumer innovativeness significantly predicts knowledge, sustainable lifestyles and attitudes towards solar PV panels. Moreover, household attitudes are influenced by government incentives and knowledge, but not by sustainable lifestyles. Crucially, the intention to install solar PV panels among Vietnamese households is positively affected by facilitating conditions, government incentives and social influence.
Originality/value
The results can assist government officials and policymakers in emerging markets in devising strategies to alleviate environmental burdens and facilitate a shift towards sustainability. Furthermore, by understanding the factors impacting the residents’ intention, public communication can be improved to raise awareness of environmental concerns and sustainable lifestyles, which results in the encouragement of the purchase and installation intention of solar panels.
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Huan-huan Zhao, Yong Liu and Wen-wen Ren
We attempt to analyze the impact of retailer’s rebate strategy on consumer reviews and retailer’s profits.
Abstract
Purpose
We attempt to analyze the impact of retailer’s rebate strategy on consumer reviews and retailer’s profits.
Design/methodology/approach
Retailers' rebates have a chance to affect sales and their profits by encouraging customers to submit product reviews. To investigate the impact of retailer’s rebate strategy on consumer reviews and retailer’s profits, we describe the consumer’s utility function and the number of consumer-written reviews by introducing the concepts of product demand mismatch and consumer review effort, then develop a two-stage model of the retailer’s rebate strategy and examine how the retailer’s rebate affects online reviews, the consumer’s perceived utility and the retailer’s profit. Finally, a number case verifies the validity and rationality of the proposed model.
Findings
The results show that the rebate strategy can effectively reduce consumer dissatisfaction caused by excessive product demand mismatch, improve the consumer utility, prompt more positive comments, and thus increase product sales.
Originality/value
In this paper, we focus on the impact of retailers' rebate strategy on consumer purchase decisions. The research can accurately reflect the influence of online reviews on consumers and retailers, assisting merchants in making the best selections. The analysis indicates that the retailer’s rebate strategy can have a direct impact on consumers' evaluation choices and product sales.
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Shiu-Wan HUNG, Min-Jhih Cheng and Shiu-Chun Hsieh
The purpose of this paper is to propose that online group buying is different from the traditional purchase model in that an aggregation of purchases on the internet can lead…
Abstract
Purpose
The purpose of this paper is to propose that online group buying is different from the traditional purchase model in that an aggregation of purchases on the internet can lead sellers to adopt various bargaining strategies. When buyers and sellers do not have the opportunity to meet face to face, consumer satisfaction is an important consideration for sellers.
Design/methodology/approach
This study investigates the influence of sellers’ strategies for offering bargains on consumers’ satisfaction, considering buyers’ characteristics and involvement. Data are analyzed by employing the multivariate analysis of variance.
Findings
The results demonstrate that the stage decreasing range strategy results in the highest level of consumer satisfaction with online group buying. In addition, consumers’ cognitive style, computer self-efficacy and involvement have a significant moderating effect on the relationship between incentive strategy and consumer satisfaction.
Practical implications
The findings show that for group buying consumers, stage decreasing range strategy reveals certain advantages, such as a short waiting time for gathering group buyers. Enterprises or online sellers that propose special offers for online group buying as part of their competitive strategy should consider the stage decreasing range strategy. Moreover, enterprises and sellers can adjust their operations according to consumers’ individual characteristics and construct good relationships in online group buying.
Originality/value
This study has investigated the influence of incentive strategies for offering bargains in online transactions on consumer’s satisfaction. The results of this study will provide some guidelines for managers of the e-retailing firms to maximize their abilities in terms of marketing activities.
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