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Article
Publication date: 27 December 2021

Dongmin Lee, Junghoon Moon and Jaeseok Jeong

Recently, the role of consumers in firms' innovation processes has increased. Prior literature asserts that qualitative aspects of consumers serve as crucial factors shaping the…

Abstract

Purpose

Recently, the role of consumers in firms' innovation processes has increased. Prior literature asserts that qualitative aspects of consumers serve as crucial factors shaping the even competitiveness of a specific industry. This study focuses on measuring home demand conditions that enhance local firms' innovation.

Design/methodology/approach

The present study describes the development of a 12-item measure to assess consumer sophistication in the food industry. The items assess the general knowledge, experience, skills and abilities needed to purchase a specific food category. A second-order construct with three distinct first-order constructs emerged, which were termed opinion formulation, sensitivity and exposure with variety. The reliability and validity of the scale were assessed with pilot survey data using exploratory and confirmatory factor analyses. The developed measure was tested to investigate its effect on individuals' grocery buying behaviors using grocery receipt panel data from 723 consumers.

Findings

The results indicate that consumer sophistication has a positive effect on new and the variety of grocery purchases. The more sophisticated a consumer is, the more they buy new and a variety of products. The newly developed consumer sophistication measure has a variety of potential applications to predict consumers' variety-seeking and new product purchase behavior.

Originality/value

This study is the first to develop a measure for assessing demand quality, namely, consumer sophistication of a specific food product. This approach may offer insights to practitioners regarding the relevant consumer sophistication levels to target when launching a new product or service in the food industry.

Details

British Food Journal, vol. 124 no. 11
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 28 October 2011

Stephen J. Newell, Bob T. Wu, Philip A. Titus and Susan M. Petroshius

The purpose of this paper is to address the following questions: are sophisticated consumers more likely to be satisfied with their purchases? Are consumers who are more…

981

Abstract

Purpose

The purpose of this paper is to address the following questions: are sophisticated consumers more likely to be satisfied with their purchases? Are consumers who are more knowledgeable more apt to feel in control of their purchase decisions? Are they more likely to believe the transaction was fair? Are they less likely to have cognitive dissonance post‐purchase?

Design/methodology/approach

An empirical study examining the role of consumer sophistication on consumers' purchase satisfaction was conducted with a national sample of approximately 700 home purchasers.

Findings

The results revealed that shopping sophistication is a key determinant of whether consumers are satisfied with their purchase experience. Sophistication not only seems to affect satisfaction but also customer perceptions of control, fairness and dissonance.

Practical implications

Implications for marketing strategy and suggestions for future research are discussed.

Originality/value

This paper suggests that perception of sophistication plays a much more important role in affecting consumer purchase satisfaction than previously understood. Consequently, businesses need to be much more active in educating consumers so that they are better able to make more informed purchase decisions. Ultimately, by helping to facilitate this information flow, consumers will be more satisfied with the products and services they purchase, develop a greater loyalty to the company providing the data and be more likely to purchase similar products and services in the future.

Article
Publication date: 24 October 2019

Sangwon Lee

The purpose of this paper is to examine the individual and joint effects of the two design dimensions, form design and functional design, and moderating role of product…

Abstract

Purpose

The purpose of this paper is to examine the individual and joint effects of the two design dimensions, form design and functional design, and moderating role of product innovativeness and technological sophistication in consumer’s evaluation of new products. Employing theoretical underpinnings from categorization theory, this paper investigates two major research questions. First, what type of form is more advantageous for a radically new product or an incrementally new product? Second, is there an individual difference in consumer evaluations to innovative products with various form designs?

Design/methodology/approach

One pre-test and three between-subject experiments were performed. In Experiments 1 and 2, a two-way between-group ANOVA analysis was performed to examine the effect of form and the degree of technological innovation on attitude toward the product using different product categories (car and camera). In Experiment 3, a three-way between-group ANOVA analysis was performed to explore the impact of form, the degree of technological innovation and consumer technological sophistication on attitude toward the product.

Findings

The results from the three experiments conducted demonstrate that, first, whereas the form design for incremental innovations must be closer to the incumbent products for favorable evaluations, less typical form is evaluated as good as a more typical form for radical innovations. Second, form design of an innovative product matters more to the technologically more sophisticated consumers (experts).

Originality/value

This paper extends the previous design literature and fills the gap of under-researched area by demonstrating that individual difference, technological sophistication, moderates the design effect on consumer evaluation of innovation; providing boundary condition of when the atypical form is not penalized in spite of consumer’s perceived learning cost; examining how the form and function interplay in “high-status product”; and demonstrating how to strengthen the reliability and validity by replicating the study. Managerially, this paper demonstrates that innovating firms can influence the perceived value of new products using form and functionality, and marketing managers who launch really new products have strategic freedom of choosing own product design.

Details

American Journal of Business, vol. 34 no. 3/4
Type: Research Article
ISSN: 1935-5181

Keywords

Open Access
Article
Publication date: 7 April 2023

Sidney A. Ornelas Sánchez and Jorge Vera-Martínez

The purpose of this study is to conceptually address the understanding of certain consumers and businesses that show new dynamics, including a heightened interest in quality and…

1023

Abstract

Purpose

The purpose of this study is to conceptually address the understanding of certain consumers and businesses that show new dynamics, including a heightened interest in quality and the concomitant development of entities and mechanisms designed to ensure certain standards as well as an increased level of involvement of the consumer with the product. These segments are identified and labeled as sophisticated markets.

Design/methodology/approach

Through a literature review following a conceptual model methodology, this study poses eight research propositions to seek a more profound and comprehensive understanding of this type of market that could potentially benefit several industries. This study explores and discusses some of the essential differences of sophisticated markets with a twofold purpose: to recognize the existence of sophisticated markets as a distinct category and suggest issues that may constitute interesting further research works.

Findings

The process of sophistication might occur in different industries. This study poses implications of sophisticated markets to better understand consumers and business through research propositions that can be classified into two main domains: consumer–firm relationships and communicational implications.

Originality/value

Previous studies addressing luxury or specialized markets have not considered these terms to be sufficient to describe what we propose be labeled as a sophisticated market. This study addresses this gap in literature and proposes a streamline of research that pursues a deeper understanding of this phenomenon.

Objetivo

Este estudio aborda de forma conceptual dinámicas novedosas que se están presentando en el ámbito de ciertos segmentos de consumidores y de ciertos sectores empresariales. Estas nuevas dinámicas incluyen elementos como un mayor interés en la calidad y en el desarrollo de satisfactores encaminados al aseguramiento de ciertos estándares, así como un mayor nivel de involucramiento del consumidor con el producto. Estos segmentos son identificados y etiquetados aquí como mercados sofisticados.

Metodología

A través de una revisión de la literatura, siguiendo una metodología de modelo conceptual, este estudio plantea ocho proposiciones científicas dirigidas a la búsqueda de una comprensión más profunda y completa de este tipo de mercados. Este artículo explora y discute algunas de las diferencias esenciales de los mercados sofisticados, con respecto a los mercados tradicionales, con un doble propósito: (1) reconocer la existencia de los mercados sofisticados como una categoría distinta de negocio y (2) sugerir elementos y relaciones que pueden constituir trabajos interesantes de investigación a futuro.

Resultados

Este proceso de sofisticación puede ocurrir en diferentes industrias. A través de estas proposiciones de investigación, este trabajo plantea elementos que pueden ayudar a incrementar el entendimiento que tenemos de este tipo de consumidores y empresas en dos grandes vertientes: la relación consumidor-empresa, y las implicaciones de la comunicación hacia estos segmentos sofisticados.

Originalidad/valor

Estudios previos enfocados en bienes de lujo o mercados especializados no logran explicar lo que proponemos aquí como el fenómeno de mercados sofisticados. Este estudio busca cubrir este vacío en la literatura proponiendo líneas de investigación encaminadas a profundizar en el entendimiento de este fenómeno.

Objetivo

Este estudo aborda de forma conceitual dinâmicas inovadoras que estão surgindo no âmbito de certos segmentos de consumidores e setores empresariais. Essas novas dinâmicas incluem elementos como maior interesse na qualidade e no desenvolvimento de satisfatores voltados para garantir determinados padrões, bem como maior envolvimento do consumidor com o produto. Esses segmentos são identificados e rotulados aqui como mercados sofisticados.

Metodologia

Através de uma revisão da literatura, seguindo uma metodologia de modelo conceitual, este estudo apresenta oito proposições científicas voltadas para a busca de uma compreensão mais profunda e completa desse tipo de mercados. Este artigo explora e discute algumas das diferenças essenciais dos mercados sofisticados em relação aos mercados tradicionais, com um duplo propósito: (1) reconhecer a existência dos mercados sofisticados como uma categoria distinta de negócios e (2) sugerir elementos e relações que podem constituir trabalhos interessantes de pesquisa no futuro.

Resultados

Este processo de sofisticação pode ocorrer em diferentes indústrias. Através dessas proposições de pesquisa, este trabalho apresenta elementos que podem ajudar a aumentar a compreensão que temos desse tipo de consumidores e empresas em duas grandes vertentes: a relação consumidor-empresa e as implicações da comunicação para esses segmentos sofisticados.

Originalidade/valor

Estudos prévios focados em bens de luxo ou mercados especializados não conseguem explicar o que propomos aqui como o fenômeno de mercados sofisticados. Este estudo busca preencher essa lacuna na literatura propondo linhas de pesquisa com o objetivo de aprofundar a compreensão desse fenômeno.

Article
Publication date: 15 March 2019

Hashim Zameer, Ying Wang and Humaira Yasmeen

Brand effect is an important source of innovation performance, but rarely any study in the past has paid attention to explore the way firm innovation activities transform into…

Abstract

Purpose

Brand effect is an important source of innovation performance, but rarely any study in the past has paid attention to explore the way firm innovation activities transform into brand effect. The purpose of this paper is to investigate how firm innovation activities transform into brand effect.

Design/methodology/approach

A set of hypothesis has been developed to show the relationships among firm innovation activities, brand prototype, brand preference and brand recommendation. The online survey method was used for data collection. In total, 546 valid questionnaires were retrieved. The study used confirmatory factor analysis and structural equation modeling technique to test the hypothesis.

Findings

Results indicate that brand prototype leads the process of cognitive processing from innovation activities’ perception to brand preference and recommendation. The consumer perception of process innovation, marketing innovation, product innovation and the store environment have direct impact on brand prototype that further influences product sophistication, brand preference and brand recommendation. But, the most powerful influence is on brand preference. Moreover, product sophistication–attribute-specific brand knowledge has direct impact on brand preference and indirect impact on the brand recommendation. The whole process from brand prototype to brand preference and brand recommendation mainly reflects the strength of the brand effect formation.

Practical implications

This study provides useful managerial insights so that firms can learn the way to maximize brand effect through the management of innovation perception and cultivation of innovation soft capability to enhance innovation performance.

Originality/value

This study unfolds the transformation of firm innovation activities into brand effect that provides a new theoretical explanation and a holistic framework for the source of innovation performance.

Details

Marketing Intelligence & Planning, vol. 37 no. 2
Type: Research Article
ISSN: 0263-4503

Keywords

Article
Publication date: 1 January 1985

Trevor Watkins and Mike Wright

The marketing strategy of banks requires much thought and careful planning so as to address the constituent segments of the market. In particular, the issue of increasing customer…

Abstract

The marketing strategy of banks requires much thought and careful planning so as to address the constituent segments of the market. In particular, the issue of increasing customer sophistication versus demands for convenience needs to be approached, and this does not appear to be a clear‐cut issue; highly sophisticated customers may also demand convenience, while others do not fit into this category, and customers across age, sex and social class groups have different needs in these respects.

Details

International Journal of Bank Marketing, vol. 3 no. 1
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 19 September 2008

Filipe Coelho and Chris Easingwood

The purpose of this paper is to aim to understand the factors influencing the magnitude of change in distribution channels. Distribution channels are slow to change due to a…

3283

Abstract

Purpose

The purpose of this paper is to aim to understand the factors influencing the magnitude of change in distribution channels. Distribution channels are slow to change due to a number of factors. Yet, the distribution mix is a vital part of a company's competitive position and companies must, therefore, constantly examine their mix of channels to most closely approximate the changing needs of its customers. It therefore is important to look at the factors influencing change in distribution.

Design/methodology/approach

A model of channel change is developed and tested with data from financial services organizations in the UK. In addition to quantitative data, the researchers also collected qualitative feedback.

Findings

The degree of channel change is related to: volatility in customers' needs; the sophistication of the target customer; product sophistication; environmental conflict; volatility in competitors' strategies; scope economies; and company size.

Research limitations/implications

The sample size is relatively modest, although this has not prevented the emergence of significant results.

Practical implications

The results of the study are important for both academics and practitioners. It helps alert practitioners to the factors that affect channel change. For academics, it demonstrates that this complex subject can be researched. It also raises some research issues that might be taken on board in future studies.

Originality/value

This article is one of the first to test a set of hypotheses regarding the drivers and inhibitors of change in distribution systems at the micro level.

Details

European Journal of Marketing, vol. 42 no. 9/10
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 6 May 2014

Natalia Vila-López and Inés Küster-Boluda

– The purpose of this paper is to give some recommendations about how to design a low fat food aliment packaging.

611

Abstract

Purpose

The purpose of this paper is to give some recommendations about how to design a low fat food aliment packaging.

Design/methodology/approach

A review of previous studies that have analysed food packaging decisions considering personal and product influences was done.

Findings

For low fat foods, a good or a poor performance is not sufficient; you have to perform better than those competitors whose competitive capacity is strong enough to influence strategic decision taking. Low fat products must be focused to a particular target. A product of these characteristics cannot be launched for all the markets at the same time, and under the same conditions. Some personal factors do really affect food buying process: socio-demographic characteristics (age, gender, income and education), involvement, time pressure or motivation. A possible recommended target for law fat aliments could be: an old/medium age women, with a medium/high economic position, educated, involved in food buying and worried about health. Some packaging factors also affect food buying process: colours, graphics, size, shape, typography. In this regard, a package for a low fat aliment could be designed including a picture on the label showing the benefits of the product (i.e. a healthy heart), with green colors, medium/small sizes and natural shapes, without sophistications. An umbrella brand for different firms acting in this market could be created, to facilitate their healthy products identification.

Originality/value

Personal variables and product characteristics are mixed together to give some recommendations of how an ideal low fat food package should be designed.

Details

Nutrition & Food Science, vol. 44 no. 3
Type: Research Article
ISSN: 0034-6659

Keywords

Article
Publication date: 1 December 2001

Marylyn Carrigan and Ahmad Attalla

Marketing ethics and social responsibility are inherently controversial, and years of research continue to present conflicts and challenges for marketers on the value of a…

187365

Abstract

Marketing ethics and social responsibility are inherently controversial, and years of research continue to present conflicts and challenges for marketers on the value of a socially responsible approach to marketing activities. This article examines whether or not consumers care about ethical behaviour, and investigates the effect of good and bad ethical conduct on consumer purchase behaviour. Through focus group discussions it becomes clear that although we are more sophisticated as consumers today, this does not necessarily translate into behaviour which favours ethical companies and punishes unethical firms. The article concludes by some thoughts on how marketers might encourage consumers to engage in positive purchase behaviour in favour of ethical marketing.

Details

Journal of Consumer Marketing, vol. 18 no. 7
Type: Research Article
ISSN: 0736-3761

Keywords

Article
Publication date: 1 September 1997

Patrick Dunne and Robert Kahn

The failure to understand the mistakes of the past is causing many US retailers, with their “narrow areas of expertise”, not to commit sufficient resources to monitoring how…

2064

Abstract

The failure to understand the mistakes of the past is causing many US retailers, with their “narrow areas of expertise”, not to commit sufficient resources to monitoring how changes in the demographic, technological, political, and economic environments have affected and will continue to affect their businesses. Seeks to address some of these changing trends in the retailing, consumer, and regulatory sectors and their impact on retailing in the USA today ‐ a reduction in the number of retailers, continued emphasis on expense reduction in order to achieve margin reduction, and the demise of the mid‐sized retail chain. In addition, examines how these current trends will affect US retailing in the future.

Details

International Journal of Retail & Distribution Management, vol. 25 no. 8
Type: Research Article
ISSN: 0959-0552

Keywords

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