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Article
Publication date: 29 July 2014

Does corporate social responsibility matter to consumers in Indonesia?

Denni Arli and Fandy Tjiptono

– The purpose of this research is to examine consumers’ perceptions of corporate social responsibility (CSR) and to explore the impact of CSR on consumers’ support in Indonesia.

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Abstract

Purpose

The purpose of this research is to examine consumers’ perceptions of corporate social responsibility (CSR) and to explore the impact of CSR on consumers’ support in Indonesia.

Design/methodology/approach

A convenience sample of respondents in Yogyakarta, Indonesia, was collected. The final sample consisted of 254 surveys.

Findings

The findings confirmed the applicability of Carroll’s (1979) categorization of CSRs to consumers in Indonesia but challenged the order of importance of these responsibilities. In addition, the results clearly indicated that perceptions of legal and philanthropic responsibilities significantly explained consumers’ support for responsible businesses. The results will assist managers operating in the developing countries, especially Indonesia.

Research limitations/implications

The sample was taken from one city (i.e. Yogyakarta) in Indonesia and may not represent all Indonesians, as it is a culturally diverse country. Thus, this limits the generalizability of the findings.

Practical implications

For businesses operating in Indonesia, it is important to focus on being a company that follows the regulatory system and supports various philanthropic activities such as poverty reduction, especially when half of the population in Indonesia lives just above the national poverty line. It has been shown that inoculation communication strategy will reduce perceived hypocrisy and mitigate its negative consequences.

Originality/value

The study examined consumers in Indonesia, the world’s fourth most populous nation. The results will provide some insights for multinationals operating in Indonesia.

Details

Social Responsibility Journal, vol. 10 no. 3
Type: Research Article
DOI: https://doi.org/10.1108/SRJ-01-2013-0007
ISSN: 1747-1117

Keywords

  • Corporate social responsibility
  • Developing country
  • Indonesia
  • Consumers’ perception

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Article
Publication date: 25 January 2021

Understanding Chinese consumers' pre-purchase value expectations: the role of country of origin effect

Mengnan Qu, Sara Quach, Park Thaichon, Lorelle Frazer, Meredith Lawley, Denni Arli, Scott Weaven and Robin E. Roberts

This study aims to examine the effect of country of origin (COO) on customers' value expectation and willingness to pay by employing signalling theory and cue utilisation.

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Abstract

Purpose

This study aims to examine the effect of country of origin (COO) on customers' value expectation and willingness to pay by employing signalling theory and cue utilisation.

Design/methodology/approach

The data were collected from 386 customers via an online survey in the context of Australian food retail franchise stores in China.

Findings

The findings indicate that COO origin is an important determinant of customer expectations including service quality, social value, emotional value, monetary price, behavioural price and reputation. Furthermore, the only social value was a significant predictor of willingness to pay. Although the direct effect of COO on willingness to purchase was not significant, the COO had a significant indirect effect on willingness to pay via social value. Finally, the COO has a stronger effect on monetary price expectation among customers who were aware of the country brands than those who were unaware.

Originality/value

The study extends the body of knowledge related to the effect of COO during the pre-purchase process and provides important implications for retailers who are looking to enter an overseas market such as China.

Details

Asia Pacific Journal of Marketing and Logistics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
DOI: https://doi.org/10.1108/APJML-06-2020-0388
ISSN: 1355-5855

Keywords

  • Franchise
  • International expansion
  • Consumer expectations
  • Food and beverage
  • Country of origin
  • COO
  • China

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Article
Publication date: 1 February 2016

God blesses those who wear Prada: Exploring the impact of religiousness on attitudes toward luxury among the youth of Indonesia

Denni Arli, Helene Cherrier and Fandy Tjiptono

The purpose of this paper is: to explore the impact of religiousness (i.e. intrinsic religiousness, extrinsic religiousness) on purchase intention of luxury brands…

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Abstract

Purpose

The purpose of this paper is: to explore the impact of religiousness (i.e. intrinsic religiousness, extrinsic religiousness) on purchase intention of luxury brands, affective attitude, and self-presentation; and, to explore the mediating effect of affective and self-presentation attitudes towards luxury brand purchase intention.

Design/methodology/approach

Data were derived using convenience sampling at three large universities (i.e. one public and two private universities) in Yogyakarta, Indonesia. Researchers hand-delivered approximately 600 questionnaires to students in classrooms and public spaces (e.g. canteens and lounge rooms) of the universities. However, of the 525 questionnaires returned, only 491 were usable thereby offering an overall response rate of 81 per cent.

Findings

The study found that intrinsic religiousness was related positively to affective attitudes towards luxury brands while extrinsic religiousness was positively related to self-presentation attitudes. Affective attitude and self-presentation were positively related to consumer intention to purchase luxury brands.

Practical implications

The result of the present study shows that religious consumers are not necessarily anti materialism and often opt for luxury brands over purely utilitarian possession. This finding has important implications. First, it may create future ethical problems as materialism has been found to correlate with unethical behaviours such as the purchase of counterfeits. Second, materialism has been linked to insecurity. When religious consumers view worldly possessions as symbols of achievement or success, sources of happiness, and representations of luxury, they may use possessions rather than religious text to hinder insecurity and shape the self.

Originality/value

This is one of the few studies exploring the impact of religiousness on luxury brands possession in Indonesia, a country with the largest Muslim population in the world and home to a highly religious society.

Details

Marketing Intelligence & Planning, vol. 34 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/MIP-12-2014-0232
ISSN: 0263-4503

Keywords

  • Religion
  • Youth
  • Luxury branding

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Article
Publication date: 5 May 2015

The impact of moral equity, relativism and attitude on individuals’ digital piracy behaviour in a developing country

Denni Arli, Fandy Tjiptono and Rebecca Porto

The purpose of this paper is to explore the impact of moral equity, relativism, and attitude towards digital piracy behaviour in a developing country. End-user piracy is…

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Abstract

Purpose

The purpose of this paper is to explore the impact of moral equity, relativism, and attitude towards digital piracy behaviour in a developing country. End-user piracy is more difficult to detect than commercial piracy. Thus, an effective strategy to combat piracy needs a comprehensive understanding of both the supply and demand sides of piracy. The current study focuses on the demand side by investigating the impact of moral equity, relativism, and attitude on consumer piracy behaviour in Indonesia.

Design/methodology/approach

Using a convenient sample in Yogyakarta, Indonesia, questionnaires were distributed in a large private university. In addition, through snowball sampling techniques, the surveys were also distributed to other adults who live within a walking distance from the campus. The data collection resulted in 222 usable surveys (a response rate of 68 per cent).

Findings

In Indonesia, moral equity had a negative and significant impact on purchases of illegal copies of music CDs and pirated software. Relativism affects the purchase of pirated software positively, but its effect on purchases of illegal copies of CDs is insignificant. Attitude towards the act was negatively impacted by moral equity for CDs and software. Relativism only significantly affects the purchase of pirated software but in the opposite direction while it has failed to reach significance for illegal music CD purchases. Attitude towards the software piracy and purchases of illegal copies of music CDs positively affect consumer’s digital piracy behaviour. Finally, Indonesian consumers feel more morally wrong to purchase illegal copies of CDs than to buy pirated software.

Practical implications

In the context of Indonesia, higher moral equity has affected piracy behaviour negatively. Therefore, efforts to reduce piracy should focus on highlighting the importance of fairness and justice. One of the main drivers of digital piracy (e.g. buying, downloading, copying, and sharing digital materials illegally) is overpriced products. It has led many Indonesians to believe that it is acceptable to purchase pirated software and illegal copies of CDs. Nonetheless, if companies are able to lower prices; thus make it affordable to consumers, consumers will perceive fairness and justice in purchasing original copies of software and CDs.

Originality/value

There are very limited studies investigating factors impacting the purchase of pirated software and CDs in the developing countries specifically Indonesia, the fourth most populous nation in the world and one of the biggest markets for counterfeit products. This is one of first few studies exploring this issue in Indonesia.

Details

Marketing Intelligence & Planning, vol. 33 no. 3
Type: Research Article
DOI: https://doi.org/10.1108/MIP-09-2013-0149
ISSN: 0263-4503

Keywords

  • Relativism
  • Developing countries
  • Emerging markets
  • Indonesia
  • Moral equity
  • Piracy behaviour

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Article
Publication date: 3 August 2015

Consumer ethics among young consumers in developing countries: a cross national study

Denni Arli, Fandy Tjiptono and Warat Winit

The present study aims to examine the similarities and differences between young consumers in Indonesia and Thailand based on actionable and strategy-yielding marketing…

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Abstract

Purpose

The present study aims to examine the similarities and differences between young consumers in Indonesia and Thailand based on actionable and strategy-yielding marketing variables (e.g. Machiavellianism, ethical orientations, trust, opportunism and materialism) and, second, it examined the impact of these variables on consumer ethics.

Design/methodology/approach

A convenience sample of university students from a large private university in Yogyakarta (Indonesia) and a large public university in Chiang Mai (Thailand) were asked to complete a survey that incorporated scales to measure consumers’ ethical beliefs, specifically, Machiavellianism, ethical orientation, opportunism, trust and materialism, as well as demographic classification questions.

Findings

The findings showed that young Indonesian and Thai consumers display similarities on most of the constructs. Moreover, the study found that personal moral philosophies (i.e. idealism and relativism) and trust strongly influence their judgment in ethically intense situations in both countries.

Research limitations/implications

The current study has several limitations, especially the use of convenience sampling that may limit the generalizability of the findings. Students in Indonesia and Thailand may behave differently from general consumers or other cohorts with regards to their ethical judgments.

Practical implications

Because personal ethical positions are developed over a lifetime of experiences in dealing with and resolving moral issues, schools and universities should intervene and educate youth on acting in ways that are consistent with moral rules. Currently, universities and schools in Indonesia and Thailand and many other countries in developing countries do not promote this knowledge to students.

Originality/value

This is one of the first studies exploring consumer ethics in Indonesia and Thailand.

Details

Social Responsibility Journal, vol. 11 no. 3
Type: Research Article
DOI: https://doi.org/10.1108/SRJ-05-2013-0059
ISSN: 1747-1117

Keywords

  • Indonesia
  • Thailand
  • Materialism
  • Consumer ethics
  • Ethical position
  • Machiavellianism

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Article
Publication date: 26 August 2014

Consumer confusion proneness: insights from a developing economy

Fandy Tjiptono, Denni Arli and Tania Bucic

The purpose of this paper is to examine young consumers’ general tendency to become confused and its effect on the word of mouth, trust, and consumer satisfaction in…

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Abstract

Purpose

The purpose of this paper is to examine young consumers’ general tendency to become confused and its effect on the word of mouth, trust, and consumer satisfaction in Indonesia – the largest smartphone market in Southeast Asia.

Design/methodology/approach

A combination of convenience and purposive sampling were used to select the sample of young adults in Daerah Istimewa Yogyakarta (DIY), Indonesia.

Findings

The results confirm that consumer confusion proneness comprises three dimensions; similarity confusion, overload confusion, and ambiguity confusion among young consumers in the smartphone market. Furthermore, each dimension has different consumer behavioural implications.

Practical implications

In the context of Indonesia and when targeting young consumers, companies should focus on defining unique product features instead of simply imitating competitor offerings, because similarity confusion negatively affects consumer trust. Moreover, managers should consistently emphasize unique and value-adding features to overload the product. This will lead to increased positive word of mouth, especially with the growing trend of social media usage among young consumers in Indonesia.

Originality/value

This paper represents a replication of Walsh and Mitchell's (2010) study. It is unique in that it is set in the context of the Indonesian smartphone market – the largest smartphone market in Southeast Asia, and concentrates specifically on the young consumer market. It provides valuable insights into the impact of consumer confusion proneness on the word of mouth, trust, and consumer across this age group and in this market.

Details

Marketing Intelligence & Planning, vol. 32 no. 6
Type: Research Article
DOI: https://doi.org/10.1108/MIP-05-2013-0082
ISSN: 0263-4503

Keywords

  • Smartphones
  • Developing country
  • Developing economy
  • Consumer confusion

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Article
Publication date: 1 December 1983

Commonplaces

Watch your language ‐ One of my earliest schoolday memories is of a sweet, angelic little girl who sat behind me in class and at frequent intervals shot her hand in the…

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Abstract

Watch your language ‐ One of my earliest schoolday memories is of a sweet, angelic little girl who sat behind me in class and at frequent intervals shot her hand in the air to exclaim ‘Please Miss, Allan Bunch swore’. Ever since then I have learnt to mind my language and whenever I felt the need to say ‘bloody’, I made sure it was suffixed by ‘Tower’, which somehow rendered it harmless. I was reminded of this incident by a new pamphlet published by NALGO called Watch your language, which is not about swearing but is a guide to using non‐sexist language for NALGO members. It is a very helpful guide, since it not only points out words to avoid but suggests alternatives or alternative ways of presenting the same information without the male bias. So, ‘manpower’ becomes ‘workforce or staff’ and ‘man‐made’, ‘artificial’. The pamphlet also covers stereotyping of jobs, sex‐typing and patronising married women by such phrases as ‘the better half’,‘the little woman’ and so on. I am less certain of their advice that cartoons should not portray women in the usual stereotyped roles and treat them as objects of ridicule, since the purpose of a cartoon is to ridicule, tosatirizeor poke fun at a person or behaviour and it achieves its effects mainly through exaggeration and stereo‐typing. But the point is taken. I was disappointed not to find the answer to a problem that has bothered me for some time, namely how to address a non‐sexist letter to a corporate body. ‘Messrs’ is out since it's masculine, but ‘Dear Madams/Sirs’ or ‘Dear Mesdames/Messrs’ sound terribly clumsy. Copies of Watch your language are free from NALGO, 1 Mabledon Place, London WC1 9HJ.

Details

New Library World, vol. 84 no. 12
Type: Research Article
DOI: https://doi.org/10.1108/eb060611
ISSN: 0307-4803

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Article
Publication date: 5 May 2015

Consumers’ evaluation toward tobacco companies: implications for social marketing

Denni Arli, Sharyn Rundle-Thiele and Hari Lasmono

Given the well-documented outcomes of corporate social responsibility (CSR) activities, tobacco companies that exhibit CSR may be trusted and consumers may hold positive…

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Abstract

Purpose

Given the well-documented outcomes of corporate social responsibility (CSR) activities, tobacco companies that exhibit CSR may be trusted and consumers may hold positive attitudes towards tobacco companies further contributing to and reinforcing smoking behaviours, which is a highly undesired and addictive behaviour. Thus, the purpose of this paper is to understand smokers and non-smokers views of CSR activities by Indonesian tobacco companies.

Design/methodology/approach

Data were collected from a large private university in Surabaya, Indonesia. There were 191 usable questionnaires with 91.7 per cent male and 8.3 per cent female. The number of smokers and non-smokers were evenly split, 49 per cent smokers and 51 per cent non-smokers which is slightly lower than the 67 per cent of male smokers in Indonesia. Of the 94 smokers in the sample, 69 per cent reported smoking on a daily basis.

Findings

The results of this study suggest that CSR activities are able to cultivate favourable images of the tobacco companies especially for those who are currently smoking. CSR in the domain of the tobacco industry increases people’s favourable association with the company. Moreover, the findings show that consumer-company identification does not affect company evaluation (CE) and consumer sensitivity towards corporate social performance becomes a motivator which positively affects CE among smokers.

Practical implications

This study has important implications for social marketing practice and research where the dominant focus remains on the downstream. In the case of smoking in Indonesia social marketing efforts directed towards mid and upstream may be more effective than downstream social marketing interventions which have to compete with global tobacco corporations.

Originality/value

This is one of the first studies to explore the impact of CSR and one of the first studies to examine Indonesia, the world’s fourth most populous country which exhibits a very high male smoking rate.

Details

Marketing Intelligence & Planning, vol. 33 no. 3
Type: Research Article
DOI: https://doi.org/10.1108/MIP-01-2014-0015
ISSN: 0263-4503

Keywords

  • Social responsibility
  • Corporate identity
  • Corporate image
  • Corporate communications

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Article
Publication date: 1 February 1981

Commonplaces

Clive Bingley, Edwin Fleming and Sarah Lawson

CONCLUDING THAT much of the ennui which afflicted me during 1980 must have been due to my forfeiture of the mid‐winter skiing holiday to which I have become accustomed in…

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Abstract

CONCLUDING THAT much of the ennui which afflicted me during 1980 must have been due to my forfeiture of the mid‐winter skiing holiday to which I have become accustomed in recent years, I have arranged to be back among the mountains of Austria at the time when this issue of NLW is committed to the mercies of the postal services. (Postage rates having just gone up, do let me know if your copy reaches you earlier than usual — that would be called ‘productivity’!).

Details

New Library World, vol. 82 no. 2
Type: Research Article
DOI: https://doi.org/10.1108/eb038521
ISSN: 0307-4803

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Article
Publication date: 1 July 2005

Requirements of employers under the labour code

Dennis Connely and Brian H. Kleiner

This article provides guidance to employers and managers regarding their obligations under the California State Labour Code. Federal labour laws will be discussed as these…

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Abstract

This article provides guidance to employers and managers regarding their obligations under the California State Labour Code. Federal labour laws will be discussed as these two bodies of law are closely related in some areas as the state code has flowed from federal legislation. The state labour code imposes requirements on hiring and firing, employee benefits and wages, collective bargaining and worker health and safety. The article confines itself to the statutory scheme of the state labour code and how it is interpreted by courts and scholars. Case law imposes additional requirements upon the employer‐employee relationship in California but this is outside the scope of this article. The source of most of the information contained herein has come from the code itself as supplemented by cases and scholarly commentary. The article will only deal with California law and therefore may be inapplicable to other states.

Details

Equal Opportunities International, vol. 24 no. 5/6
Type: Research Article
DOI: https://doi.org/10.1108/02610150510788123
ISSN: 0261-0159

Keywords

  • California State Labour Code
  • Employers
  • Federal labour laws
  • hiring and firing
  • employer‐employee

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