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1 – 10 of over 215000Yang Sun, Helen Huifen Cai, Rui Su and Qianhui Shen
The purpose of this paper is to discuss how the configurations of short life cycle, low quality, design and price, influence customer purchase intention in fast fashion and high…
Abstract
Purpose
The purpose of this paper is to discuss how the configurations of short life cycle, low quality, design and price, influence customer purchase intention in fast fashion and high technology industries in China.
Design/methodology/approach
The traditional thinking is that products with high quality and low price will win more customers. However, the authors can notice that high quality products usually have high cost. Therefore, it is necessary to do more research on how customers can accept low quality products. The authors take fast fashion products and smart phones as empirical studies, collecting data from customer’s online survey. Based on the methodology of fuzzy set qualitative comparative analysis, the authors analyse the relationship between the factors of short life cycle, low quality, design and price and influence customer purchase intention.
Findings
The authors find that price is the most important influencing factor. Low price is a strong competitive factor in the market. As to low quality products, low price can be achieved relatively more easily than with high quality products, resulting from relatively poorer raw material or configurations. Hence the connection between quality and price may give an idea to enterprises that customers will accept low quality products with low price. Moreover, according to the research, different generations are equally affected by the low price condition, regardless of customer gender and household income.
Research limitations/implications
Because the study only focuses on fast fashion and smart phones industries, future work needs to replicate this study with individual data for different industries and with alternative methods to reinforce the confidence in the research. Meanwhile , this research studied mainly the customer perspective, it would be desirable to extend the study to the enterprise perspective and find out the difficulties that limit them in using low quality products to meet market needs. This may revel some cultural differences in purchase behavior among different countries and the discussed industries can be expanded to a larger area.
Practical implications
The study offers a number of managerial implications. With the rapid changes in people’s aesthetic sense and developing high-tech, it is more and more necessary for companies to think about how to win more customers and earn more profits. Low quality products have advantages as they will lower companies’ costs in many dimensions, improving the speed of supply. It helps firms to take low quality products into consideration and think whether they will influence different aspects of the company assistance firms to get a deeper understanding of customer psychology and make better decisions on their products.
Originality/value
The paper fills the gap in the research field by exploring how consumer behavior is affected by different conditions.
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Devon DelVecchio and Sanjay Puligadda
The purpose of this paper is to investigate whether the negative effect of lower prices on perceived brand quality that has been demonstrated in evaluation tasks arises in a brand…
Abstract
Purpose
The purpose of this paper is to investigate whether the negative effect of lower prices on perceived brand quality that has been demonstrated in evaluation tasks arises in a brand choice context.
Design/methodology/approach
The effects of lower prices on perceived quality are assessed via two laboratory experiments in which college students participated.
Findings
A lower price is associated with lower perceived brand quality in Study 1's evaluation task environment. However, Study 2's results indicate a reversal of the negative effects of lower prices on perceived brand quality in an evaluation task to generally positive effects when the lower price is offered in the form of a discount in a choice task.
Practical implications
In addition to providing evidence that fears of the detrimental effects of lower prices may be overblown, the results also provide insight to managers of brands of different levels of quality on how to manage discounts to build, or at least to insulate, perceptions of the brand's quality.
Originality/value
The paper's findings may guide both managerial practice and future research on the effects of lower prices, particularly those in the form of a discount.
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Josselin Masson, Philippe Aurier and François d'hauteville
Part of the steady decline of wine consumption in France might be attributed to a growing criticism of the level of alcohol content of the wines. Recent declarative surveys…
Abstract
Purpose
Part of the steady decline of wine consumption in France might be attributed to a growing criticism of the level of alcohol content of the wines. Recent declarative surveys suggest that consumers consider favourably wines with lower contents of alcohol. The purpose of this paper is to evaluate experimentally the consumers' acceptability of a low‐alcohol wine, and to analyse the impact of the “low‐alcohol” cue on perceived quality.
Design/methodology/approach
Using the literature on expectancy disconfirmation and cognitive categorization, we have set up an experimental design involving blind tasting and full information tasting of three low‐alcohol wines and three regular wines on a sample of 73 consumers.
Findings
When comparing hedonic scores at blind level, there was no significant difference between low‐alcohol wine and regular wine. Expectations created by the “low‐alcohol” cue have a negative (but unsignificant) impact on overall evaluation, and individual characteristics have almost no effect on wine evaluation.
Research limitations/implications
The small size of the sample group of respondents and the quasi‐experimental context with no control group were the major limitations of this study.
Originality/value
For the wine marketers, the most interesting result was that reducing the alcohol content to 9 per cent did not seem to result in the product being devalued significantly. The study highlighted the overwhelming effect of the sensory quality of the wine on perceived quality. “Low‐alcohol” cue creates a low quality expectation, but has only a small influence on perceived quality.
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Sanjay Mishra, Surendra N. Singh, Xiang Fang and Bingqing Yin
Co-branding is popular with partnerships between well-known and new brands. In a laboratory study, this paper aims to examine the effects of a single ally and multiple allies on…
Abstract
Purpose
Co-branding is popular with partnerships between well-known and new brands. In a laboratory study, this paper aims to examine the effects of a single ally and multiple allies on quality perception of a brand. The results suggest that the quality perception of the new brand depends on the co-branding strategy.
Design/methodology/approach
For dual-brand alliances, a single-factor design was used, with secondary brand quality level (high, medium and low) as the independent variable. Three advertisements were created by manipulating quality levels of the single partner. For multiple-brand alliances, a 2 × 3 between-subjects factorial design was used in the experiment. The two factors were diversification (homogeneous vs heterogeneous) and quality levels of the alliance (high-end, mixed and low-end).
Findings
The results suggest that the number of brand partners significantly affected the perceived quality of the primary brand. For both dual- and multi-brand alliances, the quality level of the secondary brand positively influenced the perceived quality of the primary brand. For multiple-brand alliances, even though the highest quality perceptions of the primary brand are in the heterogeneous conditions, the heterogeneity of partners (partners across different product categories) did not affect the quality perception of the primary brand.
Research limitations/implications
One limitation of the current study is that it only addresses one type of brand alliance: co-promotion. The generalization of these findings to other forms of brand alliances (e.g. ingredient branding: Intel with IBM, Dell and HP) merits further investigation. Also, in this study, respondents processed the information in a relatively low-involvement condition (note that the target ad was presented along with filler ads). They were more likely to use brand names as heuristic cues to form their judgments. Because an alliance partner also assumes risks, future research should consider the effect of the alliances on the secondary brand.
Practical implications
Understanding brand alliances (especially multiple-brand alliances) is critical for new product managers and marketers. Introducing a new brand has higher risk and failure rates. Companies may lower these risks by co-branding with established brands. However, they should carefully consider the diversification and quality level of the partners. If brand managers position their product as “high quality (luxury)” or “low quality (budget)”, they should choose high- (or low-) quality partners from different product categories (heterogeneous high-end or low-end alliances) because diversification strengthens the primary brand. For a single-partner alliance, the secondary brand should be of high quality.
Originality/value
This paper extends the brand alliance literature beyond single-partner to multiple-partner alliances. With multiple partners, one can explore several critical aspects of an alliance, e.g. quality variance and product class diversity across the partners.
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Edwin Love and Erica Mina Okada
– The purpose of this study is to propose differential marketing tactics for high-quality products versus low-price products by building on construal level theory.
Abstract
Purpose
The purpose of this study is to propose differential marketing tactics for high-quality products versus low-price products by building on construal level theory.
Design/methodology/approach
Two studies were conducted, one using students and another using data collected from more than 7,000 online auctions.
Findings
When consumers consider high-quality products, they use more abstract mental models, and when they consider low-price products, they use more concrete mental models. Differentiation based on primary features product is more effective for products that are positioned on quality, while differentiation based on the secondary features is more effective for products that are positioned on price. Also, marketing efforts to attract attention are more effective for products positioned on quality than those positioned on price.
Research limitations/implications
This research focused on how consumers use different mental models for considering high-quality versus low-price product offerings but did not examine whether a given segment/consumer uses different models in considering high-quality versus low-price alternatives.
Practical implications
Managers wishing to reinforce a high-quality position should focus on marketing efforts compatible with consumers’ high level construal by enhancing and highlighting the primary features, and drawing consumers’ attention to their product offerings. Managers wishing to reinforce a low-price positioning should focus on marketing efforts that are compatible with consumers’ low level construal by enhancing and highlighting secondary features.
Originality/value
This research makes an important theoretical link between construal theory and brand positioning.
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Satish Sasalu Maheswarappa, Bharadhwaj Sivakumaran and Arun G. Kumar
The purpose of this paper is to investigate returns to search (getting a better product and/or a lower price as a result of search) when consumers use/do not use recommendation…
Abstract
Purpose
The purpose of this paper is to investigate returns to search (getting a better product and/or a lower price as a result of search) when consumers use/do not use recommendation agents (RAs). Specifically, it studies the effect of RAs/no RAs on decision quality, decision confidence and decision satisfaction taking into account subjective knowledge (SK) and involvement.
Design/methodology/approach
This paper employed two between-subjects factorial experimental designs with subjects searching for digital cameras in a simulated online digital camera store. The experiment was conducted with graduate students in Chennai, Bengaluru and Mysore in India.
Findings
Results of two online experiments showed that when consumers used RAs, low search led to better decision quality, whereas when consumers did not use RAs, medium search led to optimum decision quality. When consumers use RAs, SK had a U-shaped influence on the decision quality indicating that decision quality was the lowest for those with medium SK. When consumers did not use RAs, the effect of SK on decision quality was an inverted U-shape, indicating optimum decision quality for medium SK consumers. When consumers did not use RAs, subjects with high involvement made better choices, whereas when consumers used RAs, low involvement subjects made better choices. However, subjects who searched more had higher decision confidence and decision satisfaction even if their choices were not better.
Originality/value
The effect of RA vs no RA in conjunction with relevant consumer characteristics influencing decision quality of the consumer is demonstrated in this study. The findings have important managerial, consumer and theoretical contributions to make.
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Michael A. Merz, Dana L. Alden, Wayne D. Hoyer and Kalpesh Kaushik Desai
The purpose of this paper is to understand why some US Senators have more low-quality followers than others and the potential impact of low-quality followers on understanding…
Abstract
Purpose
The purpose of this paper is to understand why some US Senators have more low-quality followers than others and the potential impact of low-quality followers on understanding constituent preferences.
Design/methodology/approach
For each US Senator, data on Twitter followers was matched with demographic characteristics proven to influence behavior. An OLS regression model evaluated why some Senators attract more low-quality followers than others. Then, observations on the impact of low-quality followers were discussed along with potential effects on information gathering and constituent representation.
Findings
This study finds that total followers, ideology and length of time on Twitter are all significant predictors of whether a Senator might attract low-quality followers. Low-quality followers can have wide-ranging implications on Senator’s use of social media data to represent constituents and develop public policy.
Research limitations/implications
The data set only includes Senators from the 115th Congress (2017–2018). As such, future research could expand the data to include additional Senators or members of the House of Representatives.
Practical implications
Information is essential in any decision-making environment, including legislatures. Understanding why some users, particularly public opinion leaders, attract more low-quality social media followers could help decision-makers better understand where information is coming from and how they might choose to evaluates its content.
Social implications
This study finds two practical implications for public opinion leaders, including Senators. First, accounts must be actively monitored to identify and weed-out low-quality followers. Second, users need to be wary of disinformation and misinformation and they need to develop strategies to identify and eliminate it from the collection of follower preferences.
Originality/value
This study uses a unique data set to understand why some Senators have more low-quality followers than others and the impact on information gathering. Other previous studies have not addressed this issue in the context of governmental decision-making or constituent representation.
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Karen C. Kao, Sally Rao Hill and Indrit Troshani
The study investigates how the congruence of online deal popularity and star rating influences service quality expectation in online group buying (OGB) websites. It also…
Abstract
Purpose
The study investigates how the congruence of online deal popularity and star rating influences service quality expectation in online group buying (OGB) websites. It also investigates the role of authenticity perceptions of online cues.
Design/methodology/approach
Two experiments are used to assess the effects of congruence between deal popularity and star rating on service quality expectation for service deals in an OGB website.
Findings
The findings suggest that a combination of congruently high deal popularity and high star rating has a stronger effect on expected service quality than a combination of congruently low cues. The findings further suggest that expected service quality is greater under the combination of high deal popularity and low star rating than the combination of low deal popularity and high star rating, showing the differences between incongruent cue combinations. The findings also show the moderating effect of consumer authenticity perceptions of cues on the expected service quality.
Originality/value
The novel contribution of the study is to extend cue congruence theory to explain how congruent online information cues and the consumers' authenticity perceptions of the cues influence consumers' judgment of online deals. The contribution is validated empirically in the context of OGB. The findings advance current knowledge concerning how consumers use online information cues.
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This paper aims to use readily available data to validate several predictions on UK walnut import and consumer use behaviours. It then seeks to hypothesise how this information…
Abstract
Purpose
This paper aims to use readily available data to validate several predictions on UK walnut import and consumer use behaviours. It then seeks to hypothesise how this information can be used to determine whether and how additional value can be created in the chain.
Design/methodology/approach
The chain used was that from sourcing to retail sale of walnuts in the UK. The data used were: UK import price/quantity/origin and total consumption data, global comparisons for import price/quantity/origin and total consumption data.
Findings
This paper validates predictions for walnut quality, market size and pricing from a simple model for the UK walnut market. The UK walnut market is small (0.26 g/capita/day) but expanding per capita (8 per cent pa). Import prices are low (15-25 per cent below several other major EU importers) but rising in real terms (7 per cent pa). The UK generally sources walnuts opportunistically from low cost low “international standard” quality suppliers. These findings are consistent with model predictions of market behaviour and previous findings on walnut quality.
Practical implications
There may be an opportunity to improve quality specifications for the UK walnut market &/or to expand the UK market into higher quality uses. Both options require educating the UK consumer market in the additional consumer value created.
Originality/value
The study indicates the extent of price seeking purchasing behaviour within global markets for an agricultural product (walnuts). It shows this is not a globally consistent market response and thus offers opportunities for all participants in the UK walnut retail value chain to provide enhanced consumer value.
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