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1 – 10 of 379Illustrates, through both actual and hypothetical examples, theimportance to services marketers of recent empirical and theoreticalwork on decision framing. Suggests that services…
Abstract
Illustrates, through both actual and hypothetical examples, the importance to services marketers of recent empirical and theoretical work on decision framing. Suggests that services marketers could have more opportunity than product marketers for affecting the decision frames of consumers. Discusses implications for service marketers, including how decision framing can effect the positioning of service firms in an industry. Considers how the frame can affect the decision of whether or not to purchase, and how changes in the decision frame might encourage consumers to purchase more expensive alternatives.Notes ethical issues raised for marketers by these implications.
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Jody L. Crosno and Annie Peng Cui
This research aims to represent an initial exploration of how partitioned pricing influences consumers’ purchase decisions of new versus used products from the theoretical…
Abstract
Purpose
This research aims to represent an initial exploration of how partitioned pricing influences consumers’ purchase decisions of new versus used products from the theoretical perspectives of prospect theory and gain/loss decision frames.
Design/methodology/approach
Four experiments to test the hypotheses with multiple product categories have been conducted.
Findings
Results from a series of experimental studies find that consumers prefer partitioned pricing over all-inclusive pricing for new products, whereas all-inclusive pricing is more preferred for used products. In addition, the authors demonstrate that a high-quality brand can reverse this effect for used products; specifically, consumers prefer partitioned pricing over all-inclusive pricing for a used product with a high-quality brand.
Originality/value
This research contributes to the literature on second-hand consumption by examining the impact of pricing strategies on consumer purchase decisions of new versus used products. This study deepens our understanding of consumer decision-making for new versus used products and it provides implications for bolstering sustainable consumption.
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Scot Burton and Laurie A. Babin
Considers the relevance for marketing practitioners of the recentresearch findings about the decision‐framing process. Presents anoverview of recent empirical research findings…
Abstract
Considers the relevance for marketing practitioners of the recent research findings about the decision‐framing process. Presents an overview of recent empirical research findings and a brief description of the theoretical rationale of the research. Surmises that decision‐framing of alternatives has a substantial impact on the choice among alternatives, even when relevant objective information remains invariant.
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Daniel Mulino, Richard Scheelings, Robert Brooks and Robert Faff
An aspect of prospect theory posits that decision‐makers, when making decisions in the face of risk, make their decisions with respect to a pre‐existing reference point or ‘frame’…
Abstract
An aspect of prospect theory posits that decision‐makers, when making decisions in the face of risk, make their decisions with respect to a pre‐existing reference point or ‘frame’ (the statusquo bias). We utilize data from the Australian version of the TV game show, Deal or No Deal, to explore whether risk aversion varies with a change in reference point in a context where stakes are real and high.We achieve this by exploiting a special and unique Australian feature of the Deal or No Deal lottery‐choice setting, namely, the existence of the Chance or the SuperCase rounds (supplementary rounds). These rounds reverse the decision‐frame that was obtained in earlier (normal) rounds. We fit and estimate a complete dynamic decision‐making model to our dataset and find that the risk aversion estimate of contestants who participated in both the normal and the supplementary rounds indeed differs depending on the nature of the round, a result consistent with the operation of the existence of a framing effect.
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Christian F. Durach, Mary Parkinson, Frank Wiengarten and Mark Pagell
Firms are increasingly required to make ethical choices when selecting suppliers for their supply chains, and the decisions often rest on individual purchasing managers within the…
Abstract
Purpose
Firms are increasingly required to make ethical choices when selecting suppliers for their supply chains, and the decisions often rest on individual purchasing managers within the firm. This study builds on the literature on ethical decision-making and the concept of decision frames to investigate the decision-making process of purchasing managers in financially distressed firms. Codes of Conduct (CoC) and how they are enforced (financial rewards and codified procedures for oversight) are studied in terms of their effectiveness in informing and guiding purchasing managers in their supplier selection decisions.
Design/methodology/approach
Four sequential experiments were conducted with a total of 648 purchasing managers from manufacturing firms.
Findings
The results indicate that purchasing managers in firms facing financial distress are more than four times more likely than purchasing managers in the control groups to select the less ethical supplier in favor of better operational performance. As a potential remedy, it is found that enforcing the firm's CoC help to counteract this tendency and increase ethical supplier selection decisions by 2.1- to 2.6-fold. However, CoC enforcement that invokes multiple conflicting decision frames simultaneously is more likely to impair than promote ethical supplier selection decisions, compared to situations where only one enforcement method is present.
Originality/value
These findings develop an improved understanding of purchasers' decision-making processes and shed light on how to effectively use CoCs to guide these decisions.
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Igor Kotlyar and Leonard Karakowsky
The purpose of this paper is to present a unique insight into the impact of decision framing and overconfidence on decision‐making effectiveness.
Abstract
Purpose
The purpose of this paper is to present a unique insight into the impact of decision framing and overconfidence on decision‐making effectiveness.
Design/methodology/approach
Conceptual with a case study/illustration.
Findings
The findings support the paper's theoretical assertions regarding the potentially positive impact of negative framing in the context of overconfidence and the potentially negative impact of positive framing under this context.
Research limitations/implications
Case study/illustration (not empirical).
Practical implications
This research helps identify decision‐making situations which can dramatically alter the effectiveness of decision‐making processes. Decision makers need to know how factors such as overconfidence and framing can enhance or impede the quality of decisions generated.
Originality/value
Highly original – it challenges the traditional view of framing and overconfidence as automatic impediments to effective decision making.
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Bernadette Kamleitner, Christian Korunka and Erich Kirchler
Small business owners play an important role in the tax system. This paper seeks to establish a framework to highlight the particular tax situation of small business owners and…
Abstract
Purpose
Small business owners play an important role in the tax system. This paper seeks to establish a framework to highlight the particular tax situation of small business owners and the resulting implications, from a psychological perspective.
Design/methodology/approach
A framework identifying the key characteristics of small business owners' actual and perceived tax situation is established. Literature investigating these characteristics is reviewed in line with the proposed framework.
Findings
Three key aspects seem to distinguish small business owners' perceptions of their tax situation: small business owners are likely to perceive more opportunities not to comply than employed taxpayers; they are more likely to experience a lack of meaningful taxation knowledge; and they are more likely to face decision frames that render taxes as painful losses.
Research limitations/implications
The suggested link between the subjective experience of the tax situation and compliance calls for a focus on strategies that aim to influence taxpayers' perceptions of their own evasion opportunities, their level of legislative and procedural knowledge, and their sense of ownership of tax money. Such a strategy is suggested to be particularly likely to be effective in the phase of nascent entrepreneurship and in a climate of mutual trust between taxpayers and tax authorities.
Originality/value
This paper comprehensively identifies and reviews the perceptual correlates of factors unique to small business owners' tax behaviour.
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Ulrike Gretzel, Yeong‐Hyeon Hwang and Daniel R. Fesenmaier
Destination recommender systems need to become truly human‐centric in their design and functionality. This requires a profound understanding of human interactions with technology…
Abstract
Purpose
Destination recommender systems need to become truly human‐centric in their design and functionality. This requires a profound understanding of human interactions with technology as well as human behavior related to information search and decision‐making in the context of travel and tourism. This paper seeks to review relevant theories that can support the development and evaluation of destination recommender systems and to discuss how quantitative research can inform such theory building and testing.
Design/methodology/approach
Based on a review of information search and decision‐making literatures, a framework for the development of destination recommender systems is proposed and the implications for the design and evaluation of human‐centric recommender systems are discussed.
Findings
A variety of factors that influence the information search and processing strategies that influence interactions with a destination recommender system are identified. This reveals a great need for data‐driven models to inform recommender system processes.
Originality/value
The proposed framework provides a basis for future research and development in the area of destination recommender systems. The paper concludes that the success of a specific destination recommender system will depend largely on its ability to anticipate and respond creatively to transformations in the personal and situational needs of its users. Such system intelligence needs to be based on empirical data analyzed with sophisticated quantitative methods. The importance of recommender systems in tourism marketing is also discussed.
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Peter Liesch, John Steen, Gary Knight and Michael R. Czinkota
This paper offers a conceptualization of the internationalization decision confronted by a firm in an environment of terrorism‐induced risk.
Abstract
Purpose
This paper offers a conceptualization of the internationalization decision confronted by a firm in an environment of terrorism‐induced risk.
Design/methodology/approach
The approach taken is a conceptualization of the internationalization decision framed from theoretical reasoning and informed by the literature.
Findings
The model presents the internationalization decision, a product/market/mode (PMM) combination, in the case of a terrorism‐free context and in a with‐terrorism context. Using indifference curve mapping of risk/return tradeoffs, an opportunities set of possible PMM combinations and the notion of efficiency, it traces the most attractive opportunities set to show that within this set, the frontier of attractive opportunities is constrained in the with‐terrorism case. Propositions are framed to guide future research. While conditions of risk can be calculated, it is concluded that remaining uncalculable is the true uncertainty incited by the systemic effects of international terrorism that call for managerial judgment.
Originality/value
The literature in this field reports little on the effects of international terrorism on the firm. With heightened awareness of international terrorism, and the changed environment for the firm operating internationally, it is timely that the effects of terrorism on decision‐making in firms be investigated. Advancing beyond description to substantive conceptualization of this decision is an essential step for better understanding of this now pervasive phenomenon.
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David Shelby Harrison and Larry N. Killough
Activity-based costing (ABC) is presented in accounting textbooks as a costing system that can be used to make valuable managerial decisions. Little experimental or empirical…
Abstract
Activity-based costing (ABC) is presented in accounting textbooks as a costing system that can be used to make valuable managerial decisions. Little experimental or empirical evidence, however, has demonstrated the benefits of ABC under controlled conditions. Similarly, although case studies and business surveys often comment on business environments that appear to favor ABC methods, experimental studies of actual behavioral issues affecting ABCs usage are limited.
This study used an interactive computer simulation, under controlled, laboratory conditions, to test the decision usefulness of ABC information. The effects of presentation format (theory of cognitive fit and decision framing), decision commitment (cognitive dissonance), and their interactions were also examined. ABC information yielded better profitability decisions, requiring no additional decision time. Graphic presentations required less decision time, however, presentation formats did not significantly affect decision quality (simulation profits). Decision commitment beneficially affected profitability decisions, requiring no additional time. Decision commitment was especially influential (helpful) in non-ABC decision environments.