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1 – 10 of 467Ismael Castillo-Ortiz, Minwoo Lee, Scott Taylor and Diego Bufquin
This paper aims to uncover patterns of Mexican craft beer consumers and guide companies’ decisions in the creation of new products, marketing strategies, advertising and promotion…
Abstract
Purpose
This paper aims to uncover patterns of Mexican craft beer consumers and guide companies’ decisions in the creation of new products, marketing strategies, advertising and promotion to increase craft beer sales and contribute to faster growth.
Design/methodology/approach
This is a conjoint analysis with a selection of attributes for new or renewed products, marginal disposition to pay for particular characteristics through brand-specific choice-based design, and market simulation.
Findings
This paper clearly demonstrates consumers’ preferences and willingness to pay in Mexico, with a cutting-edge market research technique combining the prioritization of preferred craft beer characteristics, and the price consumers are willing to pay for such product characteristics.
Research limitations/implications
The study's sample size of 501 responses is relatively small compared to the total number of craft beer consumers in Mexico. To enhance the validity and reliability of the findings, future studies should aim to obtain larger samples and compare their results with those of this study.
Practical implications
This study has important implications for craft beer producers, allowing them to develop targeted craft beers with appealing attributes for Mexican consumers, such as color, aroma intensity, alcohol degree intensity, bitterness, foam level and price.
Social implications
This study's market forecasting simulation technique is based on assumptions of consumer behavior and market dynamics. Although relevant variables were considered, unanticipated external factors or market changes could impact the forecasts' accuracy. This will allow for a more comprehensive understanding of craft beer consumer preferences in different markets and enhance the reliability of forecasting techniques.
Originality/value
This paper informs craft beer producers by providing valuable knowledge on customers’ preferences and willingness to pay to enhance craft beer companies’ product development processes.
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This study aims to explore the effect of eco-labels on green product purchase intention among consumers of electrical/electronic products in an emerging market context.
Abstract
Purpose
This study aims to explore the effect of eco-labels on green product purchase intention among consumers of electrical/electronic products in an emerging market context.
Design/methodology/approach
This study adopted an extended theory of planned behaviour to assess the effects of eco-labels. To measure the key constructs, scales pertaining to the relevant literature were used to design a structured questionnaire for empirical examination. A final data set of 680 consumers was analysed using structured equation modelling.
Findings
The results indicate that eco-labels significantly impact perceived behavioural control, attitude, subjective norms and consumers’ willingness to pay higher prices for environmentally friendly green products.
Practical implications
The findings not only complement research on green consumerism but also serve as an important direction for socially responsible marketers who aim to play an important role in propagating pro-social consumption among emerging cohorts of consumers. The importance of eco-labelling as an effective marketing tool is highlighted, with valuable insights for future research and practices pertaining to emerging consumer markets.
Originality/value
This study fills a void in contemporary research by examining consumers of electrical/electronic products that typically involve long-term usage, with potentially greater environmental footprints.
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This article aims to systematically review the literature published in recognized journals focused on cognitive heuristic-driven biases and their effect on investment management…
Abstract
Purpose
This article aims to systematically review the literature published in recognized journals focused on cognitive heuristic-driven biases and their effect on investment management activities and market efficiency. It also includes some of the research work on the origins and foundations of behavioral finance, and how this has grown substantially to become an established and particular subject of study in its own right. The study also aims to provide future direction to the researchers working in this field.
Design/methodology/approach
For doing research synthesis, a systematic literature review (SLR) approach was applied considering research studies published within the time period, i.e. 1970–2021. This study attempted to accomplish a critical review of 176 studies out of 256 studies identified, which were published in reputable journals to synthesize the existing literature in the behavioral finance domain-related explicitly to cognitive heuristic-driven biases and their effect on investment management activities and market efficiency as well as on the origins and foundations of behavioral finance.
Findings
This review reveals that investors often use cognitive heuristics to reduce the risk of losses in uncertain situations, but that leads to errors in judgment; as a result, investors make irrational decisions, which may cause the market to overreact or underreact – in both situations, the market becomes inefficient. Overall, the literature demonstrates that there is currently no consensus on the usefulness of cognitive heuristics in the context of investment management activities and market efficiency. Therefore, a lack of consensus about this topic suggests that further studies may bring relevant contributions to the literature. Based on the gaps analysis, three major categories of gaps, namely theoretical and methodological gaps, and contextual gaps, are found, where research is needed.
Practical implications
The skillful understanding and knowledge of the cognitive heuristic-driven biases will help the investors, financial institutions and policymakers to overcome the adverse effect of these behavioral biases in the stock market. This article provides a detailed explanation of cognitive heuristic-driven biases and their influence on investment management activities and market efficiency, which could be very useful for finance practitioners, such as an investor who plays at the stock exchange, a portfolio manager, a financial strategist/advisor in an investment firm, a financial planner, an investment banker, a trader/broker at the stock exchange or a financial analyst. But most importantly, the term also includes all those persons who manage corporate entities and are responsible for making their financial management strategies.
Originality/value
Currently, no recent study exists, which reviews and evaluates the empirical research on cognitive heuristic-driven biases displayed by investors. The current study is original in discussing the role of cognitive heuristic-driven biases in investment management activities and market efficiency as well as the history and foundations of behavioral finance by means of research synthesis. This paper is useful to researchers, academicians, policymakers and those working in the area of behavioral finance in understanding the role that cognitive heuristic plays in investment management activities and market efficiency.
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Nguyen Thuy Trang, Steven W. Kopp, Vo Hong Tu and Mitsuyasu Yabe
The purpose of the present research is to examine the comparative values that urban Vietnamese consumers place on attributes of rice that is produced using environmentally…
Abstract
Purpose
The purpose of the present research is to examine the comparative values that urban Vietnamese consumers place on attributes of rice that is produced using environmentally friendly methods. The authors consider the impacts that this may have on the livelihoods of rural Vietnamese small farmers. Rice is an “impure public good” that includes both “private” and “public” attributes that consumers consider in their purchase decisions. Consumers make tradeoffs between environmentally and socially beneficial practices (public goods) and perceptions of product quality (private goods). The authors used latent class modeling to investigate the values associated with attributes of rice that is produced using sustainable farming practices.
Design/methodology/approach
The authors used a discrete choice experimental design in which consumers stated their choices among combinations of rice attributes. The survey provided responses from 360 urban Vietnamese consumers and allowed to estimate the preferences and nonpecuniary values for rice grown using different levels of environmentally beneficial production methods.
Findings
The results identify two segments of rice consumers: one group of consumers who are sensitive to price and the other group who are sensitive to environmental issues. The individual characteristics are reflected in the choices of production methods and in the willingness to pay for environmentally beneficial outcomes of those methods.
Research limitations/implications
Given the number of independent variables measured, the sample was relatively small, such that confirmatory statistical methods were inconclusive. However, the authors used multiple analytical tools that provide corroboration of the significant determinants of the utility functions for the two segments.
Practical implications
The results provide directions for production of rice at a national level, as well as practical implications for consumer-oriented communications.
Social implications
Results suggest that the emerging middle class of Vietnamese consumers are willing to pay more for rice that is produced using methods that are beneficial to the environment. Results also indicate challenges to provide sustainably-produced rice to poorer groups of consumers.
Originality/value
The study provides important context for consumer preferences within emerging economies. This also adds to a growing literature that uses the choice experiment method to estimate consumer valuation of the outcomes of various agricultural practices.
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Permata Wulandari and Muhammad Nadhif Ubaidillah
Islamic home financing products with Murabaha contracts are widely favored among the Muslim community in Indonesia, given that the country has a population of over 230 million…
Abstract
Purpose
Islamic home financing products with Murabaha contracts are widely favored among the Muslim community in Indonesia, given that the country has a population of over 230 million Muslims. To facilitate the development of products and enhance public interest, it is important for Islamic banking institutions to comprehend the elements that may impact the intents of Muslim communities in Indonesia when selecting Islamic home financing products with Murabaha contracts. The purpose of this study is to ascertain the many aspects that may have an impact on the decision-making process of Muslim communities in Indonesia when selecting Islamic home financing product that use Murabaha contracts.
Design/methodology/approach
The partial least square-structural equation modeling data processing techniques will be used to process and evaluate these components. The data used in this study was acquired by administering questionnaires to a sample of 298 Muslim communities, which were randomly selected from a pool of 301 possible customers of Islamic house finance in Indonesia.
Findings
The results of this research show that attitude, subjective norms and perceived behavioral control have positive influence on intention to choose an Islamic home financing scheme with Murabaha agreement, while price fairness of Islamic home financing and Islamic altruism have direct and indirect influence on intention to choose Islamic home financing.
Research limitations/implications
Analyzing factors that affect intention to choose Islamic home financing product under Murabaha contract is essential. Future study is required to analyze other Islamic home financing products, such as istisna, ijarah muntahia bi tamlik and diminishing musharakah. This study only serves as a foundation for further investigations into conventional approaches to home financing in emerging nations. The areas can be expanded to be implemented in other countries.
Practical implications
It is anticipated that Islamic banks have the capacity to cultivate a favorable and constructive perception, hence fostering a positive disposition among the Muslim populace in Indonesia. Furthermore, it is essential for Islamic banks to guarantee that all stakeholders within the sharia-compliant institution, particularly the frontline staff, have enough expertise and understanding of the intricacies of Islamic home financing products including Murabaha contracts, which are intended for prospective customers. In the foreseeable future, it is anticipated that the Muslim population in Indonesia would exhibit a greater intention toward the use of Islamic home financing solutions that use Murabaha contracts, facilitated by the establishment of a conducive environment.
Originality/value
This research integrates the impacts of pricing fairness and Islamic charity as a modified model, alongside the theory of planned behavior model, to examine the influence of these factors on individuals’ intentions to use Islamic home financing in Indonesia.
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Sof Thrane, Lars Balslev and Ivar Friis
The purpose of this paper is to investigate how fairness evaluations are constructed in a B2B context.
Abstract
Purpose
The purpose of this paper is to investigate how fairness evaluations are constructed in a B2B context.
Design/methodology/approach
This paper conducts a field study of Air Greenland and its internal and external customers based on strong structuration theory (Stones, 2005). The authors employ context and conduct analysis to analyze how fairness evaluations emerge across four levels of structuration.
Findings
The paper finds that fairness evaluations emerge as a result of the interaction between external institutional pressures, agents' internal structures, and situated reflection and outcomes. The construction of fairness evaluations was embedded in contradictory institutional structures, where groups of actors constructed different evaluations of fair profits, procedures and prices. Actors furthermore worked on changing position-practice relations which shifted relations, external structures and affected outcomes and fairness evaluations.
Originality/value
This paper offers a conceptualization of embedded agency as emerging across the four levels of structuration. This contributes to debates in strong structuration theory through conceptualizing and analyzing how actors may be both be constrained and oriented by structures while reflexively adapting structures across the four levels of structuration. The paper extends extant pricing fairness research by illustrating how actors' construction of fairness flexibly develop fairness evaluations while responding to legitimacy and societal demands, including the needs of particular customer groups.
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Gauthier Casteran, François Acquatella, Vincent Jolivet and Martine Hlady-Rispal
Retailers can use their mobile app to send location-based advertisements to consumers in the store. Goal congruence is an important driver for this type of ad's effectiveness…
Abstract
Purpose
Retailers can use their mobile app to send location-based advertisements to consumers in the store. Goal congruence is an important driver for this type of ad's effectiveness. However, evidence of goal congruence influence on positive and negative outcomes and, in turn, on product purchase intention, is lacking. Research also leaves out the moderating effect of shopping motivation and price promotion level. The paper tests the impact of goal congruence on purchase intention through attitude to the ad and its intrusiveness, as well as the moderating effect of shopping motivation and price promotion.
Design/methodology/approach
Two online experiments are conducted to investigate these effects. The first experiment investigates the influence of goal congruence (i.e. low vs high) and the moderating effect of shopping motivation (i.e. utilitarian vs hedonic) on attitudes to the ad, level of perceived intrusiveness and, ultimately, purchase intention. The second experiment introduces the moderating effect of price promotion.
Findings
Goal congruence has a positive effect on attitude to the ad but no impact on intrusiveness. Goal congruence and shopping motivation further have a significant effect on attitude to the ad, as well as on purchase intention. Finally, no interaction effect of price promotion level is found.
Originality/value
This study tests the effect of goal congruence for in-store mobile apps on attitude towards the ads and intrusiveness and ultimately purchase intention. It further tests the moderating effect of shopping motivation (i.e. utilitarian vs hedonic) and price promotion level on these relationships.
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Wagner Junior Ladeira, Vinicius Nardi, Marlon Dalmoro, Fernando de Oliveira Santini, William Carvalho Jardim and Debdutta Choudhury
Understanding the effect of assortment composition on attentional levels is an essential topic for academic researchers and practitioners. This work has important implications…
Abstract
Purpose
Understanding the effect of assortment composition on attentional levels is an essential topic for academic researchers and practitioners. This work has important implications when analyzing the influence of shopping frame time and search effort on the relationship between the reaction to assortment composition and visual attention to stock-keeping units (SKUs) pricing.
Design/methodology/approach
Two experimental studies through gauze behavior analysis technology (using eye-tracking equipment) analyze the variable's large assortment, visual attention to SKU pricing, search effort and shopping frame time.
Findings
The results suggest that, although it increases the search effort, a large assortment decreases the visual attention to SKU pricing. Further, our results indicate a moderating effect associated with mitigating the negative effect by medium-low levels of search effort and a moderating impact of time in this relation.
Practical implications
Marketing professionals can carefully optimize the in-store experience by managing the assortment and variety and by influencing consumers' visual attention to SKU pricing along the journey as part of the experience. Assortment and SKU pricing strategies need to be aligned with consumer journey design.
Originality/value
Our findings contribute to assortment theory and management by detailing the relationship between consumers' reactions to assortment perception and visual attention to SKU pricing in time flow. We reinforce the importance of considering assortment strategies from the consumer perspective and giving reliable information about in-store behavior.
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Diego Monferrer Tirado, Lidia Vidal-Meliá, John Cardiff and Keith Quille
This research aims to determine to what extent corporate social responsibility (CSR) actions developed by bank entities in Spain improve the vulnerable customers' emotions and…
Abstract
Purpose
This research aims to determine to what extent corporate social responsibility (CSR) actions developed by bank entities in Spain improve the vulnerable customers' emotions and quality perception of the banking service. Consequently, this increases the quality of their relationship regarding satisfaction, trust and engagement.
Design/methodology/approach
Data from 734 vulnerable banking customers were analyzed through structural equations modeling (EQS 6.2) to test the relationships of the proposed variables.
Findings
Vulnerable customers' emotional disposition exerts a strong influence on their perceived service quality. The antecedent effect is concentrated primarily on the CSR towards the client, with a residual secondary weight on the CSR towards society. These positive service emotions are determinants of the outcome quality perceived by vulnerable customers, directly in terms of higher satisfaction and trust and indirectly through engagement.
Practical implications
This research contributes to understanding how financial service providers should adapt to the specific characteristics and needs of vulnerable clients by adopting a strategy of approach, personalization and humanization of the service that seems to move away from the actions implemented by the banking industry in recent years.
Originality/value
This study has adopted a theoretical and empirical perspective on the impact of CSR on service emotions and outcome quality of vulnerable banking customers. Moreover, banks can adopt a dual conception of CSR: a macro and external scope toward society and a micro and internal scope toward customers.
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Jaeyoung Park, Woosik Shin, Beomsoo Kim and Miyea Kim
This study aims to explore the spillover effects of data breaches from a consumer perspective in the e-commerce context. Specifically, we investigate how an online retailer’s data…
Abstract
Purpose
This study aims to explore the spillover effects of data breaches from a consumer perspective in the e-commerce context. Specifically, we investigate how an online retailer’s data breach affects consumers’ privacy risk perceptions of competing firms, and further how it affects shopping intention for the competitors. We also examine how the privacy risk contagion effect varies depending on the characteristics of competitors and their competitive responses.
Design/methodology/approach
We conducted two scenario-based experiments with surveys. To assess the spillover effects and the moderating effects, we employed an analysis of covariance. We also performed bootstrapping-based mediation analyses using the PROCESS macro.
Findings
We find evidence for the privacy risk contagion effect and demonstrate that it negatively influences consumers’ shopping intention for a competing firm. We also find that a competitor’s cybersecurity message is effective in avoiding the privacy risk contagion effect and the competitor even benefits from it.
Originality/value
While previous studies have examined the impacts of data breaches on customer perceptions of the breached firm, our study focuses on customer perceptions of the non-breached firms. To the best of the authors’ knowledge, this study is one of the first to provide empirical evidence for the negative spillover effects of a data breach from a consumer perspective. More importantly, this study empirically demonstrates that the non-breached competitor’s competitive response is effective in preventing unintended negative spillover in the context of the data breach.
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