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Book part
Publication date: 1 January 2005

Lan Xia and Kent B. Monroe

Abstract

Details

Review of Marketing Research
Type: Book
ISBN: 978-0-85724-723-0

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Article
Publication date: 15 May 2017

Lan Xia and Kent B. Monroe

This paper aims to examine the effect of targeted promotions on perceptions of fairness from the perspective of consumers who are not targeted.

Abstract

Purpose

This paper aims to examine the effect of targeted promotions on perceptions of fairness from the perspective of consumers who are not targeted.

Design/methodology/approach

A scenario-based approach is used. Three studies manipulating promotion selectivity and various bases for promotion selection were conducted. A total of 403 people participated in the studies.

Findings

Results showed that these consumers consider targeted promotions unfair, and the primary reason is centered more on damage to relational identity than the economics of reduced perceived value. The effect is moderated by how the targeted promotion is delivered (buyer-discovered vs seller-delivered) and different basis for selection.

Practical implications

As companies adopting the practice of dynamic pricing such as targeted promotion, it is important to manage relationship with their consumers. Framing targeted promotions that reduce the salience of seller’s role and provide explanations that not attributed to buyer-seller relationship are important in reducing the potential damage of targeted promotion on relational identity.

Originality/value

Existing research on perceptions of price fairness has focused on the role of perceived value. This research tested the relative effect of perceived value, relational identity and personal identity in the context of targeted promotion and identified relational identity as the major mechanism.

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Journal of Product & Brand Management, vol. 26 no. 3
Type: Research Article
ISSN: 1061-0421

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Article
Publication date: 20 November 2017

Lan Xia and Nada Nasr Bechwati

This paper aims to present a model linking price promotions to checkout donations. It is argued that price promotions evoke two perceptions/emotions, namely, feelings of…

Abstract

Purpose

This paper aims to present a model linking price promotions to checkout donations. It is argued that price promotions evoke two perceptions/emotions, namely, feelings of gratitude and perceived sacrifice of purchase, which consequently, influence the likelihood to donate. Feelings of gratitude dominate when the discount is high, while feelings of sacrifice dominate when the discount is low. Compared to no-discount situations, high discounts enhance consumers’ intention to donate while low discounts reduce this intention.

Design/methodology/approach

A total of four studies using shopping scenarios are conducted. Study 1 examines the main effect and the mediating factors. Study 2 replicates the findings in different product categories and at different unit-price levels. Studies 3 and 4 test the moderating effects of customer effort and discount framing.

Findings

Findings of the four studies provide support for the proposed model. Compared to no-discount situations, high discounts enhance consumers’ intention to donate, while low discounts reduce this intention. The effects are mediated by feelings of gratitude and sacrifice and moderated by effort obtaining the discount and format of the discount.

Research limitations/implications

Theoretically, this research advances the understanding of consumers’ interpretations of price promotions. All studies are conducted in an online context.

Practical implications

This research informs retailers and charity institutions on the best timing for soliciting checkout donations and indicates specific tactics to enhance consumers’ donations.

Originality/value

This is the first study linking price discounts to the growing phenomenon of checkout donations. The research is different from cause marketing where the donation is included in the price of a specific product. The work also differs from studies examining the spillover effect where additional purchases benefit the consumers instead of a cause.

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Journal of Product & Brand Management, vol. 26 no. 7
Type: Research Article
ISSN: 1061-0421

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Article
Publication date: 12 January 2018

Xingyao Ren, Lan Xia and Jiangang Du

The effect of different formats of message delivery has received little theoretical and empirical examination. This research focuses on the effect of written relational…

Abstract

Purpose

The effect of different formats of message delivery has received little theoretical and empirical examination. This research focuses on the effect of written relational communication formats used by service providers. This study aims to answer three questions: Do different formats of written communications (i.e. handwriting and print) influence customer perceptions (i.e. feelings of warmth) of service firms? What are the mediators of these influences (i.e. perceived effort and psychological closeness)? And under what conditions do they occur (i.e. what is the contextual factor)?

Design/methodology/approach

One field study and three laboratory studies were conducted to provide a comprehensive understanding of the role of format in written communication.

Findings

Handwritten messages are more effective than print messages in building relationships in a service context because they elicit stronger feelings of warmth because of both the perception of greater effort and feelings of greater psychological closeness to the service provider. However, the presence of handwriting fails to deliver feelings of warmth when the quality of core services is low.

Practical implications

Service providers can effectively use handwritten communication to signal effort and create psychological closeness for relationship building with their key customers only when the quality of core services meets customer expectations.

Originality/value

First, the research differentiates the formats of written relational communication (handwritten vs print), and links communication formats with feelings of warmth, which is an important factor for impression and relationship formation in the practice of services marketing. Second, based on cognitive-experiential self-theory, this research demonstrates the dual mediators underlying the effect of handwriting (vs print) on warmth: perceived effort and psychological closeness. Third, it identifies the quality of core service as a boundary condition for the effect of handwritten communication.

Details

Journal of Services Marketing, vol. 32 no. 2
Type: Research Article
ISSN: 0887-6045

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Article
Publication date: 12 September 2016

Qiuying Zheng, Lan Xia and Xiucheng Fan

This paper aims to explore the distinctions and similarities about Eudaimonia (a deeper pleasure beyond the hedonic enjoyment) and hedonic enjoyment, especially the…

Abstract

Purpose

This paper aims to explore the distinctions and similarities about Eudaimonia (a deeper pleasure beyond the hedonic enjoyment) and hedonic enjoyment, especially the influencing factors of Eudaimonia.

Design/methodology/approach

Survey and experiment are conducted to obtain the data. Structural equation modeling, confirmatory factor analysis and analysis of variance are used to analyze the data.

Findings

Three empirical studies support the idea that Eudaimonia, as a deeper-level pleasure, is a distinct construct from hedonic enjoyment. Like hedonic enjoyment, Eudaimonia can lead to satisfaction. Unlike hedonic enjoyment, Eudaimonia is driven by effort. Moreover, the effort impact on Eudaimonia is enhanced by the uniqueness of the craft task.

Originality/value

This paper shifts hedonic consumption studies from a product-based paradigm (e.g. utilitarian vs hedonic) to an experience-based paradigm (hedonic enjoyment vs Eudaimonia). The extension of pleasure to Eudaimonia domain successfully explains why prior hedonic consumption studies find that pleasure is more than the absence of effort and can be more inspiring than purely sensory.

Details

Journal of Consumer Marketing, vol. 33 no. 6
Type: Research Article
ISSN: 0736-3761

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Article
Publication date: 6 March 2007

Andreas Herrmann, Lan Xia, Kent B. Monroe and Frank Huber

This paper aims to link conceptually the concepts of price fairness and customer satisfaction and empirically demonstrate the influence of perceived price fairness on…

Abstract

Purpose

This paper aims to link conceptually the concepts of price fairness and customer satisfaction and empirically demonstrate the influence of perceived price fairness on satisfaction judgments. Further, it seeks to examine specific factors that influence fairness perceptions including price perception and consumer vulnerability.

Design/methodology/approach

The study is conducted in the context of automobile purchases in major German car dealerships. Based on a theoretical conceptualization of the constructs and an empirical pretest, 246 car buyers were surveyed and their fairness perceptions and satisfaction judgments with the car buying process measured.

Findings

The research shows that price perceptions directly influence satisfaction judgments as well as indirectly through perceptions of price fairness. Results also indicated that consumers' vulnerability, which is induced by a perceived demand‐supply relationship and the urgency of need from the consumers' side, had a negative effect on perceived price offer fairness.

Research limitations/implications

The research demonstrated the influence of perceived price fairness on satisfaction judgments empirically. The study was conducted in the context of car purchases and the generalizability of the model should be further tested.

Practical implications

The effect of consumer vulnerability implies that sellers should not only avoid exploiting their customers but should also anticipate consumers' potential feelings of being exploited. Being sensitive to the buyers’ psychological state and assuring buyers of fair treatment will enhance perceptions of price fairness without changing the price offer.

Originality/value

Both the direct and indirect effects of price perception on satisfaction judgment were examined in the paper. Specifically, the influences of consumer vulnerability and price procedure fairness on satisfaction judgments are new and contribute to the dual‐entitlement principle and our existing knowledge in price fairness.

Details

Journal of Product & Brand Management, vol. 16 no. 1
Type: Research Article
ISSN: 1061-0421

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Article
Publication date: 1 September 2003

Lan Xia

Usually price information is presented as arabic numerals and consumers’ brand selections often involve comparative judgments of product prices. One important issue…

Abstract

Usually price information is presented as arabic numerals and consumers’ brand selections often involve comparative judgments of product prices. One important issue concerns whether consumers process price information in a similar way to that found in numerical cognition research. Since numerical processing is a learned, primarily automatic process, whether such processing interferes with or facilitates the processing of price information is an important question. It is important because a better understanding of how people process price information has implications for how managers should establish and communicate prices. This paper reports two studies that compare the processing of price with other numerical information.

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Journal of Product & Brand Management, vol. 12 no. 5
Type: Research Article
ISSN: 1061-0421

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Article
Publication date: 19 June 2009

Lan Xia and Kent B. Monroe

Previous research indicates that the goals consumers have when shopping influence their attention to and processing of information they encounter. The purpose of this…

Abstract

Purpose

Previous research indicates that the goals consumers have when shopping influence their attention to and processing of information they encounter. The purpose of this paper is to study the effects of consumers' pre‐purchase goals on their responses to price promotions.

Design/methodology/approach

In three experiments, the existence of consumer goals (i.e. with or without a pre‐purchase goal) were manipulated and promotion characteristics including message framing, promotion format, and promotion depth were systematically varied to examine how consumers respond to these price promotions.

Findings

Consumers with a pre‐purchase goal were found to be more attracted to the promotion than those without a goal. More importantly, pre‐purchase goals interact with promotion characteristics and produce differential effects on willingness to buy. Consumers with a pre‐purchase goal are more attracted to promotions emphasizing reduced losses while those without a goal responded more favorably toward promotions emphasizing gains. Moreover, consumers with and without a pre‐purchase goal respond differently to various discount levels.

Originality/value

Existing research on price promotions has not examined the influence of consumers' pre‐purchase goals. This paper brings a new dimension to price promotion research. Understanding these variations in pre‐purchase goals across consumers will help sellers design more effective promotion programs

Details

International Journal of Retail & Distribution Management, vol. 37 no. 8
Type: Research Article
ISSN: 0959-0552

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Article
Publication date: 6 April 2010

Lan Xia

Browsing is a common consumer behavior, but it has not been researched extensively. The aim of this paper is to fill some of the gaps in the research.

Abstract

Purpose

Browsing is a common consumer behavior, but it has not been researched extensively. The aim of this paper is to fill some of the gaps in the research.

Design/methodology/approach

Drawing on literature from different areas, consumers' browsing experiences, browsing patterns, and factors influencing browsing activities are empirically examined. A combination of interviews and shopping trips with informants to examine the issues are used.

Findings

The results show that browsing serves both functional and recreational purposes. Consumers vary by the degree to which they browse functionally or recreationally. Browsing behaviors are influenced by both consumer characteristics and the retail environment. Browsing is a powerful consumer information acquisition activity and has both desired and undesired consequences for consumer purchases. Consumers use various strategies to cope with the undesired consequences.

Practical implications

Exploration of browsing patterns and factors influencing these patterns suggests important managerial implications for enhancing desirable browsing and reducing unnecessary browsing.

Originality/value

The conceptualization and findings of this research contribute to two areas of research: consumer information search and consumer shopping behaviors in retail environments. An examination of the role of browsing offers an empirical extension to the information acquisition framework.

Details

Qualitative Market Research: An International Journal, vol. 13 no. 2
Type: Research Article
ISSN: 1352-2752

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Article
Publication date: 1 August 2005

Lan Xia

Research has shown that there are different dimensions of price knowledge. But it is still not clear what consumers can remember upon price exposure and what can be…

Abstract

Purpose

Research has shown that there are different dimensions of price knowledge. But it is still not clear what consumers can remember upon price exposure and what can be retrieved later and why. This research aims to focus on the influence of encoding conditions as well as price characteristics on later price recall or evaluation.

Design/methodology/approach

Two controlled experiments using student subjects were conducted. Participants' encoding objectives and relative price difference between paired products were manipulated and their influence on price recall and evaluation examined.

Findings

The research showed that there is usually a memory distortion of the original product price information upon retrieval. The degree of distortion is influenced by the characteristics of the prices as well as the focus of attention at encoding and the direction of distortion was influenced by consumers' beliefs of pricing norms.

Research limitations/implications

In this research, price difference instead of individual price was manipulated so the interpretation of individual price recall accuracy is constrained. Future research should also examine under what conditions consumers apply a certain type of encoding objective and the effects of memory distortions on consumer choice behaviors.

Practical implications

Results suggest that, for marketers to clearly communicate the price information to consumers and ensure that consumers remember and use the price information as the marketers intended, it is important to examine the compatibility between price exposure environment and form of price information that consumers are likely to retrieve from memory.

Originality/value

The results shed further lights on understanding of consumer price information processing and retrieval.

Details

Journal of Product & Brand Management, vol. 14 no. 5
Type: Research Article
ISSN: 1061-0421

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