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1 – 10 of 276Milos Bujisic, Vanja Bujisic, Haragopal Parsa, Anil Bilgihan and Keyin Li
Hospitality firms aim to increase their profits by implementing a variety of marketing activities, including using decoy pricing to provide alternative choices for consumers…
Abstract
Purpose
Hospitality firms aim to increase their profits by implementing a variety of marketing activities, including using decoy pricing to provide alternative choices for consumers. Decoys are relatively higher-priced offerings that signal lower value than the other offerings in the consideration set. The purpose of this research is to investigate the influence of decoy pricing on consumer choices across various contexts in the foodservice and hotel industries.
Design/methodology/approach
Across the pilot and four main studies, the current research employs a sequential exploratory mixed-method design to investigate the influence of decoy pricing in the foodservice and lodging industries. The qualitative part of this research was based on two focus groups, followed by a pilot study and four main study experiments.
Findings
The results show that decoy pricing escalates consumers’ choices of more expensive product bundles in both restaurant and hotel cancellation policy contexts. However, decoy pricing does not increase the selection of more expensive hotel product bundles.
Originality/value
While decoy pricing has been utilized as an effective revenue maximization strategy for product placement in retail stores, less is known about how promotional advertisements with decoy offers influence hotel and restaurant customers to choose more costly options. Specifically, this is the first study that explores whether decoy pricing and product/service bundling can encourage customers to select more expensive offers in hotel and restaurant contexts, considering the types of hospitality bundles that may limit this effect.
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Bruno Uekane Okumura, Tabajara Pimenta Júnior, Márcia Mitie Durante Maemura, Luiz Eduardo Gaio and Rafael Confetti Gatsios
This study aims to investigate the occurrence of the decoy effect in stock investment decisions based on fundamental analysis.
Abstract
Purpose
This study aims to investigate the occurrence of the decoy effect in stock investment decisions based on fundamental analysis.
Design/methodology/approach
In this study, the decoy effect was investigated by applying two questionnaires, one of them with the presence of a decoy alternative, to a set of 224 respondents with knowledge of business fundamentals, simulating investment decisions in stocks of companies listed on the Brazilian Stock Exchange. The data analysis was performed using the Fisher's exact test, Student's t-test and ANOVA. The research also aimed to detect a potential relationship between the variables gender, age, degree and professional experience with the type of decision made.
Findings
The results pointed to the occurrence of the decoy effect when analysing the general response data. However, such evidence was not confirmed when the sample was analysed by classes (gender, course, age and professional experience). There is no statistical evidence that the decoy effect influences classes.
Originality/value
The recent decoy effect literature is little explored in investment decision-making. This study is unique in examining the decoy effect in investment decisions in the Brazilian context.
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Chih-Hui Shieh, Yingzi Xu and I-Ling Ling
This paper aims to investigate how location-based advertising (LBA) elicits in-store purchase intention. To deepen the understanding of LBA’s effect on consumers’ purchase…
Abstract
Purpose
This paper aims to investigate how location-based advertising (LBA) elicits in-store purchase intention. To deepen the understanding of LBA’s effect on consumers’ purchase decision, the research examines the role of consumers’ time consciousness in click intention in pull or opt-out LBA approaches. The study also explores how consumers react to LBA with an asymmetric dominance decoy versus a compromise decoy message.
Design/methodology/approach
Two field experiments were conducted, and a total of 363 volunteers within 3 km of a shopping mall participated. The participants were asked to turn on their global positioning system and then informed that a convenience store was planning to launch a mobile coupon subscription service. Data collected were analysed using analysis of variance, regression analysis, bootstrapping and spotlight tests.
Findings
The results demonstrate that consumers had a higher intention to click pull LBA than to click opt-out push LBA. Consumers with high time-consciousness had greater click intentions for pull LBA than for opt-out push LBA. Consumers with low time-consciousness, however, showed no difference in click intention for either LBA approach. Further, click intention mediates the effect of LBA on in-store purchase intention, and the asymmetric dominance decoy message is a more powerful strategy for LBA to increase the likelihood of in-store purchase.
Originality/value
This research provides insight into location-based services marketing by revealing how time-consciousness and decoy promotional messages affect consumers’ reaction to LBA and in-store purchase intentions. The findings offer practical suggestions for retailers on how to reach and engage with consumers more effectively through the use of LBA.
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Wei‐guang Zhou, Ji‐run Luo, Yu‐gui Jia and Hua‐bin Wang
The purpose of this paper is to provide a solution to investigate the deception effects of the radar equipped with decoys.
Abstract
Purpose
The purpose of this paper is to provide a solution to investigate the deception effects of the radar equipped with decoys.
Design/methodology/approach
Since the attacking process of the anti‐radiation missile (ARM) is very complicated, numerical simulations are used here to analyze the effects of the operating parameters and the layout parameters of the radar and the decoys on the survival probabilities.
Findings
The survival probabilities of all the radar and the decoys can be over 99.5 percent when three decoys distribute near the radar in an appropriate way and the decoy level is set to some appropriate values.
Research limitations/implications
The movement model of the ARM is simple and should be improved further.
Practical implications
The numerical results may be applied directly in practice and the dynamic simulation algorithms may be as a reference of the radar‐decoy technique in the future works.
Originality/value
Some coordinate systems are built. Based on it, the models of the radar and decoys against an ARM are introduced, including the fields radiated by the radar and the decoys, the guidance signal and the movement of the ARM. Numerical simulations have been performed here. Some conclusions have been given.
Ricardo Sellers-Rubio and Juan-Luis Nicolau-Gonzalbez
The purpose of this paper is to test decoy effect in the framework of sales promotion, by conducting several experiments to figure out how this decoy effect is influenced by the…
Abstract
Purpose
The purpose of this paper is to test decoy effect in the framework of sales promotion, by conducting several experiments to figure out how this decoy effect is influenced by the presence or absence of a store brand.
Design/methodology/approach
Several experiments have been conducted to test the validity of the decoy effect and rule out some explanations for the changes in demand that take place. The experiments consider three brands (two national brands and one store brand). All the brand names and prices employed in the experiment are real.
Findings
The results indicate that, as expected, the inclusion of a decoy in the choice set significantly increases the consumer’s relative preference for the promoted product; however, more importantly, the results also show that store brand consumers are more influenced by a decoy than national brand consumers.
Originality/value
This paper presents the first evidence of the decoy effect in the presence of store brands.
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Sandra J. Milberg, Mónica Silva, Paulina Celedon and Francisca Sinn
The purpose of this paper is to extend the conclusions of a previous synthesis of attraction effect research (1995), focusing on the influence of background and design variables…
Abstract
Purpose
The purpose of this paper is to extend the conclusions of a previous synthesis of attraction effect research (1995), focusing on the influence of background and design variables on the magnitude of the effect, and to identify additional factors that question the effect’s practical market relevance.
Design/methodology/approach
Meta-analysis and moderator analysis (meta-regression) are used to summarize the findings and assess the explanatory power of background variables on the magnitude of the attraction effect.
Findings
Analyses indicate significant effects for procedure and the pre-entrant target percentage in addition to decoy type and decoy location found in previous synthesis. These factors explain 16 per cent of the variance. Previous findings that between-subject designs result in stronger attraction effects are not substantiated. Viable decoys led to a reversal of the attraction effect.
Research limitations/implications
This research contributes conceptually by demonstrating that the attraction effect is sensitive to research design factors which in some cases reverse the effect. This suggests that the underlying theory needs qualification and that generalizability may be limited. Given the constraints of meta-analysis, design factors that are idiosyncratic to a single study or are constant across studies could not be tested.
Practical implications
This research suggests that for the attraction effect to have practical relevance, knowledge of the effect needs updating because critical realities in the marketplace have been somewhat ignored by researchers in building theories regarding this effect.
Originality/value
By focusing on background variables that can moderate the magnitude of the attraction effect, the authors open a venue to expand the theoretical understanding and the practical relevance of the attraction effect in marketing.
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Presents a case study of software products and their firm which gothrough a bewildering series of name changes and attribute changes– often for no apparent reason. Highlights the…
Abstract
Presents a case study of software products and their firm which go through a bewildering series of name changes and attribute changes – often for no apparent reason. Highlights the costs of such changes and discusses a theoretical framework to prevent this sort of confusion arising.
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RECENT military conflicts have shown that aircraft and helicopters need to confront increasingly efficient and numerous defence systems. Hence the need for their self‐protection.
Abstract
RECENT military conflicts have shown that aircraft and helicopters need to confront increasingly efficient and numerous defence systems. Hence the need for their self‐protection.
Jungkeun Kim, Jaehoon Lee and Jae-Eun Kim
Integrating conceptual perspectives from social exclusion, thinking style and context effects, this study aims to examine how different types of social exclusion influence…
Abstract
Purpose
Integrating conceptual perspectives from social exclusion, thinking style and context effects, this study aims to examine how different types of social exclusion influence attraction and compromise effects.
Design/methodology/approach
Eight studies were conducted. To establish the causal relationship between social exclusion types and context effects, this study uses experimental designs in all studies.
Findings
The attraction effect is stronger when consumers feel rejected than ignored, whereas the compromise effect is stronger when they feel ignored than rejected. Consumers who feel rejected increase their propensity to think holistically, which in turn leads to their choice preferences for asymmetrically dominant options. Conversely, those who feel ignored increase their propensity to think analytically, which in turn leads to their choice preferences for compromise options.
Research limitations/implications
The findings show that consumer preferences for one option over the other alternatives in choice contexts are susceptible to subtle differences in the manner that exclusion is communicated. The studies are limited to recall tasks and scenarios that previous research has shown to be effective. Future research may use actual exclusion to corroborate this study’s findings.
Practical implications
Marketing practitioners may benefit from this study’s findings when it comes to an increase in the relative share of their target brand against their competitor brands by introducing a third option.
Originality/value
To the best of the authors’ knowledge, this research is the first to provide evidence that exclusion communicated in an explicit manner produces the attraction effect, whereas exclusion communicated in an implicit manner produces the compromise effect. Given that threatening situations often influence individuals’ preferences and choices, how social exclusion shapes cognitive processes is an empirical question worthy of investigation.
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Arti Sharma, Sushanta K. Mishra, Arunava Ghosh and Tuhin Sengupta
The learning outcomes are as follows: to understand the cultural and ethical dimensions revolving around the issue of female feticide; to apply the lens of institutional theory…
Abstract
Learning outcomes
The learning outcomes are as follows: to understand the cultural and ethical dimensions revolving around the issue of female feticide; to apply the lens of institutional theory with respective change management measures; and to analyze and evaluate the impact of such intervention programs such as Beti Bachao Beti Padhao in the context of emerging economies such as India.
Case overview/synopsis
This case attempts to highlight the innovative and effective governance approach by the Government of Rajasthan (India) and, in particular, the State Health Assurance Agency to curb the menace of female feticide and the rising cases of abortion and sex determination in an attempt to favor a male child. The case concentrates on mainly three dimensions of Indian societal ecosystem, namely, the grave concern of preference of male child over female child leading to widespread cases of female feticide in different states in India with specific focus on the state of Rajasthan; the role of cultural dimension which primarily drives such preferential treatment in rural and urban areas in India; and the importance of using effective policy measures in monitoring various activities, introduction of incentive schemes to patients for preventing sex determination and promoting the birth of female child.
Complexity academic level
This case can be used as a teaching material in the Public Policy course – Social Welfare and Health Policy, Policy interventions, organization theory and change management at the Graduate/MBA level.
Supplementary materials
Teaching notes are available for educators only.
Subject code
CSS 10: Public Sector Management.
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