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Article
Publication date: 6 May 2014

Ugur Yavas, Emin Babakus, George D. Deitz and Subhash Jha

The purpose of this study is to investigate the relative efficacies of intrinsic and extrinsic cues as drivers of customer loyalty to financial institutions between male…

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1529

Abstract

Purpose

The purpose of this study is to investigate the relative efficacies of intrinsic and extrinsic cues as drivers of customer loyalty to financial institutions between male and female bank customers.

Design/methodology/approach

A large-scale survey of 872 customers of a national bank serves as the study setting.

Findings

Results showed that extrinsic cues were the more effective correlates of customer loyalty and that gender does not moderate the relationships between image cues and customer loyalty.

Research limitations/implications

The cross-sectional nature of the current study does not allow causal inferences. Therefore, future studies should adopt longitudinal designs.

Practical implications

Results suggest that, although transmitting a favorable image through extrinsic cues is critical, nevertheless, intrinsic cues (interactions among customers and bank personnel) should not be ignored. To reinforce this not only among current customers but also among potential customers, banks should use advertisements featuring favorable testimonials.

Originality/value

Empirical research in the banking services literature pertaining to the efficacies of intrinsic and extrinsic cues in forming customer loyalty is scarce. This study fills in the void. Also, in determining if the relationships between image and customer loyalty vary by gender, the authors not only looked at male versus female differences on the basis of average construct scores but also examined the structural relationships among the constructs.

Details

Journal of Consumer Marketing, vol. 31 no. 3
Type: Research Article
ISSN: 0736-3761

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Article
Publication date: 1 April 2000

James R. Northen

This paper develops a conceptual framework, based on quality attributes and quality cues, to demonstrate the necessary requirements for effective communication of quality…

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4054

Abstract

This paper develops a conceptual framework, based on quality attributes and quality cues, to demonstrate the necessary requirements for effective communication of quality cues to customers in the supply chain and consumers at place of purchase. The “perceived quality” approach to product quality is adopted and the links between intrinsic/extrinsic cues and experience/credence attributes of a product are developed. The framework is applied to the UK meat sector by considering which attributes/cues are altered by farm assurance schemes and, hence, which type of cue is needed to signal these attributes, and what elements are necessary for effective signalling of this type of cue. It is shown that the necessary requirements for effective communication of each type of cue (intrinsic and extrinsic) vary considerably. Farm assurance schemes are shown to affect credence attributes; hence extrinsic cues must be used to signal these standards. It is concluded that the credibility of scheme standards and inspections to those standards is of crucial importance for the assurance scheme extrinsic cue (certificate/label) to be effective in predicting these credence attributes.

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British Food Journal, vol. 102 no. 3
Type: Research Article
ISSN: 0007-070X

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Article
Publication date: 15 November 2011

Shamindra Nath Sanyal and Saroj Kumar Datta

The purpose of this paper is to find out the relationship between the qualities of generic drugs perceived by the physicians and brand equity of the branded generics and…

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6984

Abstract

Purpose

The purpose of this paper is to find out the relationship between the qualities of generic drugs perceived by the physicians and brand equity of the branded generics and to examine the physicians' perceptions of prescribing generic drugs for selective medical conditions in India.

Design/methodology/approach

The study was carried out across six major cities in Eastern India with 392 physicians. Here components of perceived quality, i.e. intrinsic cues and extrinsic cues are hypothesized to influence perceived quality of branded generics which in turn influence brand equity. It is also hypothesized that respondents' quality experience is assimilated towards their quality expectations, independent of small variations in objective quality of the drug.

Findings

Results showed that perceived quality of branded generics significantly, but indirectly, affected brand equity through the mediating variables, intrinsic cues and extrinsic cues. The results also showed that physicians' quality experience leads to quality expectations, independent of small variations in drug quality on five common yet serious diseases in India.

Practical implications

Current research finds that for prescription‐based branded generic drugs, perceived quality mainly depends on intrinsic cues; therefore, managers should be interested in intrinsic cues that increase brand equity and necessary marketing actions should be implemented accordingly.

Originality/value

No other scholarly article has been developed, so far, analyzing the effect of perceived quality on brand equity in the Indian branded generic drug segment. Besides providing evidence from the Indian pharmaceutical context about the impact of quality cues, the paper also presents evidence on physicians' quality observation of branded generics on five common yet serious diseases in India.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 23 no. 5
Type: Research Article
ISSN: 1355-5855

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Article
Publication date: 10 July 2017

Alan M. Collins and Richard G. George

The purpose of this paper is to investigate whether or not mavens’ dissemination activities are likely to promote or hinder retailers’ store brand premiumisation attempts…

Abstract

Purpose

The purpose of this paper is to investigate whether or not mavens’ dissemination activities are likely to promote or hinder retailers’ store brand premiumisation attempts, by revealing the relationship between mavens’ price and non-price on-pack extrinsic cue search and their store brand purchasing behaviours.

Design/methodology/approach

The paper adopts a hypothetic-deductive approach and develops a model of mavens’ store brand purchasing behaviour. The model is tested using SEM on a US data set containing 457 respondents. A full discussion of the direct, indirect and total effects is provided.

Findings

Mavens’ store brand purchasing behaviours are strongly linked to their price search activities and negatively related to their use of non-price on-pack extrinsic cues. This indicates that their dissemination activities are likely to stress lower prices and hence price competition rather than promote other cues used to infer quality. Thus, mavens are likely to inhibit retailers’ store brand premiumisation attempts. Mavens’ investments in time engaged in search activities are strongly linked to social returns rather than private financial savings.

Research limitations/implications

The work is based on data collected using an online survey in one region of the USA where store brands are not as prevalent in other countries such as the UK.

Practical implications

The investigation of non-price on-pack extrinsic cues reduces mavens’ store brand purchasing behaviours while the use of price cues increases them. This suggests that even with mavens’ market expertise that a non-price extrinsic cue deficit continues to exist for these products. Consequently, retailers need to re-examine and rework the cues contained on pack to convey more positive consumption-related information if mavens are to become store brand advocates.

Originality/value

Rather than conceptualising the maven as possessing market wide knowledge, this research adopts a domain specific perspective arguing that price mavenism can be distinguished from product-related mavenism with consequences for the set of extrinsic cues used as part of the maven’s search process. In doing so, it reveals the conflicting effects that these maven dimensions have on purchasing behaviours and the likely effects on mavens’ dissemination activities.

Details

International Journal of Retail & Distribution Management, vol. 45 no. 7/8
Type: Research Article
ISSN: 0959-0552

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Article
Publication date: 16 March 2015

Nathalie Spielmann

A recent stream of research has focused on typicality associations – those that bring origins and products together. Most of the research has focused on typical products…

Abstract

Purpose

A recent stream of research has focused on typicality associations – those that bring origins and products together. Most of the research has focused on typical products but atypical products have received very little attention, even though they are more and more present on the market. As it has yet to be reviewed, the relationship between intrinsic and extrinsic product cues and product evaluations is examined in this paper for typical and atypical origin products.

Design/methodology/approach

Wine was used as the stimulus, and consumer evaluations of typical and atypical wines were reviewed. Consumers were segmented based on their knowledge of the product category. French respondents (n = 370) participated in an online questionnaire regarding the product cues they found most important, depending on if the wine was from the New World or the Old World.

Findings

The results show that extrinsic cues are just as important as intrinsic cues in the evaluation of origin products, contrary to what prior research suggests. Furthermore, consumer knowledge moderates the evaluations of origin products; the results empirically confirms the theoretical country of origin – elaboration likelihood model (CoO-ELM) proposed by Bloemer et al. (2009) for atypical origin products, but show typical products are evaluated differently.

Originality/value

This is the first study that empirically tests the CoO-ELM and includes the added dimension of typicality. The results allow for a better understanding of consumer perceptions of origin products and their cues.

Details

International Journal of Wine Business Research, vol. 27 no. 1
Type: Research Article
ISSN: 1751-1062

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Article
Publication date: 22 June 2012

Juha Munnukka and Pentti Järvi

This study aims to explore: first, the formation of the customer value of high‐tech consumer products through application of intrinsic and extrinsic cues of product…

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2623

Abstract

Purpose

This study aims to explore: first, the formation of the customer value of high‐tech consumer products through application of intrinsic and extrinsic cues of product quality; and second, the effect of the mental price category of the product on the construction of customer value.

Design/methodology/approach

The study was conducted in the Finnish consumer market in 2008. In total, 453 completed interview forms were collected through the structured interview method. The factor model was constructed through explorative factor analysis and hypothesis testing was conducted through linear multiple‐regression analysis.

Findings

The high‐tech product's price category was found to have a significant effect on the construction of the customer value. The mental price category in which consumers located the product was found to dictate how the perceived value was constructed through the intrinsic and extrinsic dimensions of product quality. The customer value of high‐tech consumer products was composed of visual appeal, excellence, and price satisfaction. Intrinsic cues of product quality were emphasised.

Originality/value

The study provides new insights into how the formation of customer value is dictated by the mental price category perceived by consumers. Also, new information on how intrinsic and extrinsic cues of product quality affect the customer value of high‐tech consumer products was provided.

Details

Journal of Consumer Marketing, vol. 29 no. 4
Type: Research Article
ISSN: 0736-3761

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Abstract

Details

Review of Marketing Research
Type: Book
ISBN: 978-0-7656-1306-6

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Article
Publication date: 31 August 2012

Hannele Kauppinen‐Räisänen, Richard A. Owusu and Bylon Abeeku Bamfo

The changing health care market is affecting consumers who are now expected to take greater responsibility for their health. Their means for doing this include purchasing…

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1361

Abstract

Purpose

The changing health care market is affecting consumers who are now expected to take greater responsibility for their health. Their means for doing this include purchasing self‐medication and medical self‐service, which coincides neatly with an increase in the number of over‐the‐counter (OTC) pharmaceuticals. Additionally, OTC pharmaceuticals are progressively becoming available in a wider range of stores, where the pharmacists' knowledge of the OTC products is absent. This study aims to examine packaging as media that conveys the product message at the point of purchase, and to explore the impact of its extrinsic verbal and visual product cues.

Design/methodology/approach

An exploratory conjoint analysis was conducted in Finland, the USA, and Ghana. In total, 89 respondents conducted conjoint tasks for two product types, i.e. a painkiller and sore throat medicine.

Findings

The results showed differences and similarities in the impact of the packaging product cues across Finland, the USA, and Ghana. Differences and similarities were also detected across the two different, but related, product types. The study found that the impact of product cues is contextual, varying across the samples and product types.

Practical implications

The results are limited by the exploratory nature of the conjoint analysis. They highlight that medical marketers should recognize the varying impact of salient cues on consumers' product preferences and choices.

Originality/value

The study deals with a mostly unexplored issue and provides exploratory insights into the phenomenon.

Details

International Journal of Pharmaceutical and Healthcare Marketing, vol. 6 no. 3
Type: Research Article
ISSN: 1750-6123

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Article
Publication date: 8 May 2017

Laurence Carsana and Alain Jolibert

The purpose of this research is to investigate the influence of self-purchasing versus gift-giving situations on the importance of product cues and the moderating effect…

Abstract

Purpose

The purpose of this research is to investigate the influence of self-purchasing versus gift-giving situations on the importance of product cues and the moderating effect of brand schematicity.

Design/methodology/approach

Data were collected via an online survey of 285 French consumers for wine and 139 French consumers for whisky. The interaction effect of the gift-giving situation and brand schematicity on the importance of product cues was then investigated.

Findings

The results differed, depending on the importance of brand cue. For the whisky category (high brand importance), brand schematicity had no influence on the importance of cues. For the wine category (low brand importance), brand schematicity moderated the influence of the gift-giving situation on the importance of extrinsic cues such as commercial brand. Brand schematicity and the situation of gift-giving also influence the number of important cues which consumers take into account when making their choice. In low-involvement purchasing situations, brand-aschematic consumers use fewer choice criteria than brand-schematic consumers, whereas in high-involvement purchasing situations, regardless of their level of brand schematicity, consumers use the same number of criteria to make their selection.

Practical implications

When the commercial brand is a salient cue and regardless of the purchasing situation, it is important to provide information on the brand to consumers through any format, such as social media, leaflets, flash codes, in-store digital display, etc. When the commercial brand is not a salient cue, brand schematicity may be relevant to a segment of consumers because this consumer profile may need more information and will focus on the commercial brand. Brand managers could develop a specific approach to schematic consumers based on brand content, for example, brand managers could provide marketing materials (e.g. leaflets, flash codes, mobile apps) to retail store managers explaining the origin and value of the commercial brand. Consumers could also be provided with digital devices (such as tablets), which they could use to search for information according to these cues before choosing their product. Social media and online brand community could also provide more details about the brand and may provide an interactive area for discussions with consumers.

Originality/value

There has been little research on the effect of brand schematicity on the importance of product cues. To the authors’ knowledge, the interaction between brand schematicity and purchase according to product category has not previously been studied. The influence of brand schematicity changes depending on the importance given to brand cues.

Details

Journal of Consumer Marketing, vol. 34 no. 3
Type: Research Article
ISSN: 0736-3761

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Article
Publication date: 1 April 2000

Tilman Becker

A model for analysis of consumer behaviour towards food is developed. This model is intended to bridge the gap between the objective quality approach pursued in food…

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6708

Abstract

A model for analysis of consumer behaviour towards food is developed. This model is intended to bridge the gap between the objective quality approach pursued in food sciences, the product characteristics approach, and the subjectively perceived quality approach, the product attribute approach as pursued in the consumer behaviour literature. The focus is on the information processing by the consumer. Information on the product quality is supplied to the consumer in the form of cues received while shopping or consuming. A distinction is made between extrinsic and intrinsic cues, and between search‐, experience‐, and credence‐quality attributes. Within the credence attributes, three categories are distinguished: food safety, health, and all other credence quality attributes. It is demonstrated that public policy should use minimum standards for regulating food safety, information and consumer education on health issues and definitional standards to regulate the other credence qualities. In the case of search quality, no public intervention is needed. In the case of experience quality, reputation is a means of reducing the quality erosion inherent for experience quality attributes. In the case of those foods which are not sold prepacked over the counter, these means are restricted. Here the public regulators could consider backing up the private quality policy efforts on labelling by implementing traceability schemes and defining the requirements for specific label claims.

Details

British Food Journal, vol. 102 no. 3
Type: Research Article
ISSN: 0007-070X

Keywords

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