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1 – 10 of 776
Article
Publication date: 2 April 2019

Aruna Divya Tatavarthy and Kanchan Mukherjee

Unlike point of purchase behavior, not much is known about how payment method impacts post-purchase behavior, especially for durable goods where user experience can last over long…

Abstract

Purpose

Unlike point of purchase behavior, not much is known about how payment method impacts post-purchase behavior, especially for durable goods where user experience can last over long periods. The purpose of this paper is to link two strands of literature for the first time by uncovering systematic linkages between the payment method (upfront cash vs loan) used for purchase of durable goods and the replacement timings for the same.

Design/methodology/approach

The authors predict that cash purchases are more likely to have shorter replacement horizons compared to loan purchases and propose a psychological mechanism that accounts for the same. Their arguments are based on how the strength of coupling, which is the degree of psychological association between payment and consumption, depends on the payment method and differentially influences the consumption experience and consequently leads to different replacement horizons. They conduct a field study to test their predictions and find support for their model.

Findings

The authors find that individuals who financed their durable goods purchases using loan, expressed their intentions to replace the goods after longer period than those who financed their durable goods with cash down payment. As loan installments remind people of painful thoughts of payment, they tend to reduce the dissonance by positively evaluating both retrospective and anticipated usage experiences. This dissonance reduction mechanism eventually leads to reduced willingness to let go of the durable.

Practical implications

Marketers are faced with a tradeoff between increasing purchase likelihood versus ensuring long-term post-purchase satisfaction. In this paper, the authors uncover the psychological mechanisms that can explain how payment method chosen to pay for a durable can have direct effect on post-purchase consumption experiences and subsequently in the replacement intentions. This finding is crucial for marketers who are interested in planning the product line launches and other post-purchase engagement strategies such as buy-back scheme and upgrades.

Social implications

Understanding the psychological mechanisms that explain individual’s likelihood to replace their durable goods allows policymakers to design appropriate interventions to induce more sustainable and efficient use of durable goods in the market. While on one hand, marketers might be interested in increasing sales of their product line by inducing faster replacement of older product versions, environmentalists nudge towards the opposite. This paper provides a possible way to achieve the dual objectives.

Originality/value

While past research on downstream effects of payment methods on behavioral outcomes focused only on consumables, the authors focus on durable goods. Further, they identify the effect of payment method on both psychological and behavioral outcomes.

Details

Journal of Consumer Marketing, vol. 36 no. 4
Type: Research Article
ISSN: 0736-3761

Keywords

Article
Publication date: 1 January 1971

J. Alex Murray

Presents a simple model whose objective is to utilize existing and ongoing survey data in order to allow the advertising manager to segment the market in an optimum way. Shows how…

Abstract

Presents a simple model whose objective is to utilize existing and ongoing survey data in order to allow the advertising manager to segment the market in an optimum way. Shows how segmenting the market in such a way maximizes the budgetary constraints of the advertising manager.

Details

European Journal of Marketing, vol. 5 no. 1
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 1 April 1971

J. Alex Murray

Develops a model incorporating expected market potential derived from customers' purchasing expectations. Suggests that this can be used as a basis for advertising strategies…

Abstract

Develops a model incorporating expected market potential derived from customers' purchasing expectations. Suggests that this can be used as a basis for advertising strategies. Claims to present a movement towards the ideal of marginal returns from marginal advertising outlays.

Details

European Journal of Marketing, vol. 5 no. 4
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 24 March 2021

Hsin-Hsien Liu and Hsuan-Yi Chou

Taking a mental accounting theory perspective, this study explores how pricing strategy (all-inclusive vs partitioned) influences consumers' perceived residual value of a product…

Abstract

Purpose

Taking a mental accounting theory perspective, this study explores how pricing strategy (all-inclusive vs partitioned) influences consumers' perceived residual value of a product and their subsequent intentions to upgrade to a newer model.

Design/methodology/approach

A pilot study and two formal experiments were conducted to test the hypotheses.

Findings

A partitioned (vs all-inclusive) price causes consumers to later recall a lower total cost and perceive lower residual value for the existing product, thereby increasing upgrade intentions. This finding holds for both utilitarian and hedonic products. Perceived residual value mediates the impact of the pricing strategy on upgrade intentions. The pricing strategy effect is stronger for state-oriented individuals than for action-oriented individuals.

Originality/value

This study extends understanding of the impact of pricing strategies from consumers' short-term immediate demand to long-term upgrade intentions. It also identifies a previously uninvestigated moderator (action-state orientation), clarifying the boundary conditions of pricing strategy effects. The study's conceptual framework links pricing strategy, sunk costs, perceived residual value and upgrade intentions, providing rich insights and potential research paths. These findings further enhance understanding of upgrade intentions.

Details

Marketing Intelligence & Planning, vol. 39 no. 5
Type: Research Article
ISSN: 0263-4503

Keywords

Article
Publication date: 1 February 2001

Sharyn Rundle‐Thiele and Rebekah Bennett

Seeks to enhance our understanding of the suitability of loyalty measurement techniques by proposing a classification of brand loyalty based on varying market types…

12914

Abstract

Seeks to enhance our understanding of the suitability of loyalty measurement techniques by proposing a classification of brand loyalty based on varying market types. Distinguishing between market types is important because the very nature of markets indicates that the measures used to capture loyalty should be very different. This paper, in effect, argues against a single brand loyalty measure for all market types. Marketing practitioners wishing to predict future levels of loyalty would need to use different loyalty measures. In consumable markets where the market is stable and where there is high switching and low involvement and risk, behavioral measures are appropriate for predicting future brand loyalty levels. However where the market is not stable, there is a propensity towards sole brands and attitudinal measures may be better predictors of future behavior in such cases.

Details

Journal of Product & Brand Management, vol. 10 no. 1
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 23 March 2010

Sabine Moeller and Kristina Wittkowski

The purpose of this study is to identify and assess the importance of proposed determinants of the growing consumer preference for renting consumer goods, as opposed to the actual…

7168

Abstract

Purpose

The purpose of this study is to identify and assess the importance of proposed determinants of the growing consumer preference for renting consumer goods, as opposed to the actual transfer of ownership.

Design/methodology/approach

Following a qualitative preliminary study and a literature review, six factors are identified as possible determinants of a preference for non‐ownership modes of consumption. These are examined in a quantitative study using a sample of 461 members of a German online peer‐to‐peer sharing network. Hypotheses regarding the proposed determinants are tested using factor analysis and structural equation modelling.

Findings

The results show that the demand for non‐ownership services is negatively influenced by “possession importance” (the importance that a consumer attaches to full ownership) and positively influenced by “trend orientation” and “convenience orientation”. The other proposed determinants – “experience orientation”, “price consciousness”, and “environmentalism” do not appear to influence a preference for non‐ownership modes of consumption.

Practical implications

Although the renting of goods is an increasingly popular form of consumption, consumers still value ownership. Suppliers should therefore consider offering a mixture of “ownership” and “non‐ownership” modes of consumption to their customers.

Originality/value

This study complements existing research in this area, which has largely been conceptual in nature, by undertaking an empirical evaluation of the importance of several proposed determinants for non‐ownership preference.

Details

Managing Service Quality: An International Journal, vol. 20 no. 2
Type: Research Article
ISSN: 0960-4529

Keywords

Abstract

Details

Modern Management in the Global Mining Industry
Type: Book
ISBN: 978-1-78973-788-2

Article
Publication date: 1 June 1988

Dick Jenkins

Because of the gradual nature of the changes over the past 25 years, we may not have noticed the transformation of the British kitchen. The progress of the kitchen — and its…

Abstract

Because of the gradual nature of the changes over the past 25 years, we may not have noticed the transformation of the British kitchen. The progress of the kitchen — and its contents — is clearly described, with forecasts to the year 2000.

Details

British Food Journal, vol. 90 no. 6
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 12 October 2021

Peyman Assadi and Pooria Assadi

Pursuit of meaning is at the heart of much of organizational life. It has implications for how different organizational stakeholders associate value to various organizational…

Abstract

Purpose

Pursuit of meaning is at the heart of much of organizational life. It has implications for how different organizational stakeholders associate value to various organizational initiatives. Research on meaning has generally shown that effort increases meaning and favorable valuation of and willingness to pay for economic activities by organizational stakeholders. The authors build on and advance this research by offering theory and experimental evidence showing that effort, particularly at high levels, results in enhanced meaning and favorable valuation when effort does not threaten the focal stakeholders' resources through expectation disconfirmation.

Design/methodology/approach

Three experimental studies are designed and conducted in this research. In one study, the authors replicate prior research findings that establish labor generally increases meaning and favorable valuation. In the two subsequent studies, the authors test the proposed hypothesis in this research and check for robustness of the empirical analysis.

Findings

The authors find that any internalized threat to the focal stakeholder's resources coupled with a high exertion of effort decreases, rather than increases, meaning and favorable valuation of and willingness to pay for economic activities.

Originality/value

The theory and empirical evidence in this research advance the understanding of how organizational stakeholders may associate effort-induced meaning with various economic activities in counter-intuitive ways. The findings also highlight the importance of recognizing and shaping the expectations of organizational stakeholders in influencing willingness to pay in organizational settings.

Details

Journal of Economic and Administrative Sciences, vol. 39 no. 4
Type: Research Article
ISSN: 1026-4116

Keywords

Article
Publication date: 3 February 2012

Seung Hyun Kim, Jae Min Cha, Ronald F. Cichy, Mi Ran Kim and Julie L. Tkach

The purpose of this paper is to explore the effects of the size of the board of directors and board involvement in strategy on financial performance in the private club industry.

2238

Abstract

Purpose

The purpose of this paper is to explore the effects of the size of the board of directors and board involvement in strategy on financial performance in the private club industry.

Design/methodology/approach

Data were collected in a web‐based survey of chief operating officers (COOs) and general managers (GMs) who are members of the Club Managers Association of America (CMAA). Hierarchical regression analysis of data from 360 respondents was used to examine the proposed model.

Findings

The results showed that board members' involvement in strategy and the size of the board of directors have a positive influence on a private club's financial performance.

Research limitations/implications

Further research is indicated to include other board‐related influences such as group composition and the quality of relationships between board members and GMs/COOs to measure a club's financial performance.

Originality/value

The paper contributes to the limited existing literature on the association between a board of directors and financial performance in the private club industry.

Details

International Journal of Contemporary Hospitality Management, vol. 24 no. 1
Type: Research Article
ISSN: 0959-6119

Keywords

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