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Article
Publication date: 9 May 2016

Credibility of a peer endorser and advertising effectiveness

Juha Munnukka, Outi Uusitalo and Hanna Toivonen

Advertisers use various tactics to influence consumer purchases and create positive associations with their brands. The purpose of this study is to explore the formation…

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Abstract

Purpose

Advertisers use various tactics to influence consumer purchases and create positive associations with their brands. The purpose of this study is to explore the formation of peer-endorser credibility and its influence on attitude formation. The role of product involvement in the formation of attitudes and endorser credibility is also examined.

Design/methodology/approach

A quantitative study was conducted among university students. Data were collected using an online questionnaire concerning three advertisements for which identical questionnaires were constructed; 364 responses were generated.

Findings

The authors show that the credibility of a peer endorser is constructed from trustworthiness, expertise, similarity and attractiveness dimensions that positively affect consumers’ attitude toward an advertisement and a brand. Product involvement affects advertising effectiveness indirectly through the endorser-credibility construct. Finally, the authors show that a consumer’s experience with an advertised product affects the perception of endorser credibility and the effectiveness of the advertisement.

Originality/value

The findings reveal new insights into the little studied area of peer-endorser effectiveness. The authors shed light on the construction of peer endorser credibility and the relative importance of specific credibility dimensions on the effectiveness of an advertisement. This study also provides information on the direct and indirect effects of consumers’ brand involvement on attitudes toward advertisements.

Details

Journal of Consumer Marketing, vol. 33 no. 3
Type: Research Article
DOI: https://doi.org/10.1108/JCM-11-2014-1221
ISSN: 0736-3761

Keywords

  • Source credibility
  • Brand attitude
  • Product involvement
  • Advertising effectiveness
  • Attitude toward advertisement
  • Peer endorser

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Article
Publication date: 1 May 2001

Consumer perceptions of grocery retail formats and brands

Outi Uusitalo

Grocery retailers are operating in a slow‐growth market. The pursuit of market share is one of the main concerns for retail managers. The retail structure is becoming…

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Abstract

Grocery retailers are operating in a slow‐growth market. The pursuit of market share is one of the main concerns for retail managers. The retail structure is becoming increasingly standardized and homogenous because of concentration of the ownership of stores. Cultural differences remain, however, between different European countries. Cultural factors influence the success of a positioning strategy. This study examined how consumers perceive grocery retail formats and brands in Finland. Data from personal interviews were used in highlighting the consumer perspective. Consumers perceive meaningful differences in various store formats, meanwhile store brands are seen as quite similar. Consumers rely on functional attributes of stores when discussing grocery stores. However, it seems that consumers are unable to recognize the fabricated, often imaginary differences at the brand level. The informant’s own, creative symbolic work results in this case to interpreting all grocery retail brands as similar. Managerial implications of the study are presented.

Details

International Journal of Retail & Distribution Management, vol. 29 no. 5
Type: Research Article
DOI: https://doi.org/10.1108/09590550110390995
ISSN: 0959-0552

Keywords

  • Consumer behaviour
  • Product strategy
  • Brands
  • Grocery retailing

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Article
Publication date: 1 October 2002

Switching to electronic stores: consumer characteristics and the perception of shopping benefits

Ruby Roy Dholakia and Outi Uusitalo

The shift from physical (brick and mortar) stores and hard copy catalog stores toward electronic stores (e‐tailing) may be seen as a continuous innovation building on past…

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Abstract

The shift from physical (brick and mortar) stores and hard copy catalog stores toward electronic stores (e‐tailing) may be seen as a continuous innovation building on past changes brought about by in‐home shopping methods such as catalog, TV and direct mail. Why are e‐tailers then having such difficulty retaining their customers? In this paper, we examine the influence of consumer characteristics on perception of shopping benefits associated with electronic and physical shopping. Based on a mail survey of upscale US households, the empirical study finds the two shopping formats to be clearly different from each other in terms of perceived shopping benefits. The data supports the influence of individual characteristics (such as age, household income and family composition) as well as past behaviors on the shopping benefits associated with the two modes of shopping.

Details

International Journal of Retail & Distribution Management, vol. 30 no. 10
Type: Research Article
DOI: https://doi.org/10.1108/09590550210445335
ISSN: 0959-0552

Keywords

  • Retailing
  • Internet
  • Consumer behaviour
  • Innovation
  • Benefits
  • USA

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Article
Publication date: 3 May 2013

Impact of service quality dimensions on the formation of customer value in B to B services

Juha Munnukka, Pentti Järvi and Uusitalo Outi

Customer and value‐oriented business strategies are increasingly important in the context of business to business services. However, little is known about the construction…

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Abstract

Purpose

Customer and value‐oriented business strategies are increasingly important in the context of business to business services. However, little is known about the construction of customer value of B to B services. Also the influences of specific dimensions of service quality on customer value are open to debate. This study aims to explore the construction of customer value of B to B services, and to examine how specific dimensions of service quality contribute to customer value.

Design/methodology/approach

The research data consists of 90 questionnaires which were collected through the structured interview method among Finnish business organizations. Hypothesis testing was conducted through linear multiple‐regression analysis.

Findings

The results suggest that customer value of B to B services is composed of attribute and consequence level elements. Reliability, responsiveness, and assurance were found as the key contributors of consequence level customer value. Attribute level customer value is affected by empathy, responsiveness and assurance dimensions of service quality. Thus, by focusing on right dimensions of service quality organizations are most effectively able to cultivate customer value.

Originality/value

The study identifies the dimensional structure of customer value and suggests a detailed method to investigate the relationship between service quality and customer value.

Details

Marketing Intelligence & Planning, vol. 31 no. 3
Type: Research Article
DOI: https://doi.org/10.1108/02634501311324627
ISSN: 0263-4503

Keywords

  • Service quality
  • Customer value
  • Business to business
  • Value structure
  • Customer services quality
  • Customers

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Article
Publication date: 28 January 2013

Identifying potential sources of value in a packaging value chain

Jenni Niemelä-Nyrhinen and Outi Uusitalo

The purpose of this paper is to propose a process approach for identifying potential sources of customer value of a package in a packaging value chain and illustrate the…

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Abstract

Purpose

The purpose of this paper is to propose a process approach for identifying potential sources of customer value of a package in a packaging value chain and illustrate the approach through interview data.

Design/methodology/approach

The proposed process approach is a synthesis of customer value theories presented in marketing literature and packaging functions presented in packaging-related literature. Packaging value chain members were interviewed to illustrate the critical packaging-related processes among their business processes and to reveal value in the level of packaging attributes and packaging functions/consequences in use situations.

Findings

Interviews with packaging experts operating at different levels of a packaging value chain provide support for the proposed approach. The data provide a snapshot of value creation throughout the value chain. While the value of a package is perceived at all levels of the value chain, the value-creating attributes and their consequences, along with the value creation processes, take diverse forms.

Practical implications

The proposed process approach includes the first two steps of a customer value assessment in a packaging value chain, namely: identification of customers' packaging-related processes and the critical points in those processes; and generation of a list of value-affecting attributes and their consequences in each packaging-related process.

Originality/value

The paper provides a means to improve understanding of value creation in the business-to-business context. In particular, the authors' focus on the packaging value chain illustrates the multiple ways in which value is perceived by a group of interconnected firms.

Details

Journal of Business & Industrial Marketing, vol. 28 no. 2
Type: Research Article
DOI: https://doi.org/10.1108/08858621311295227
ISSN: 0885-8624

Keywords

  • Value chain
  • Packaging
  • Customer requirements
  • Customer satisfaction
  • Customer value

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Article
Publication date: 27 February 2007

The impacts of competitive entry on pricing in the Finnish retail grocery market

Outi Uusitalo and Maija Rökman

The purpose of this paper is to explore the impacts that a new retailer entering a previously stable market has on the domestic retailers' pricing behaviour. The paper…

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Abstract

Purpose

The purpose of this paper is to explore the impacts that a new retailer entering a previously stable market has on the domestic retailers' pricing behaviour. The paper describes and analyses the context of the entry of the hard discounter chain Lidl into the Finnish market.

Design/methodology/approach

To illustrate the effects of competitive entry on pricing behaviour of competitors, prices of 20 grocery items were collected from three different chains and three market areas in three different points of time. Based on these data the pricing initiatives of the entrant and the reactions of the domestic competitors are described and analysed in terms of four dimensions: competition, geographical, assortment, and time.

Findings

The analysis reveals that the domestic retailers reacted to the intensifying price competition by engaging in selective price changes. Both price cuts and price increases were detected.

Originality/value

The paper provides empirical insights about the impacts of intensifying competition on pricing.

Details

International Journal of Retail & Distribution Management, vol. 35 no. 2
Type: Research Article
DOI: https://doi.org/10.1108/09590550710728084
ISSN: 0959-0552

Keywords

  • Pricing
  • Competitors
  • Retailing
  • Case studies

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Article
Publication date: 14 March 2008

Exploring message themes in antismoking advertising targeted at teenagers

Outi Uusitalo and Jenni Niemelä‐Nyrhinen

Previous studies have indicated that antismoking advertising potentially prevents or reduces smoking among teenagers. However, not all message themes of antismoking…

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Abstract

Purpose

Previous studies have indicated that antismoking advertising potentially prevents or reduces smoking among teenagers. However, not all message themes of antismoking advertising have proved effective. This study aims to explore the effects of different message themes on teenagers' intention to smoke. Attitude towards the advertisement and attitude towards the act (smoking) are proposed as mediating variables between the message theme and smoking intentions. The paper also aims to examine effect of three themes, namely health effects, mental effects and social effects on smoking/not smoking.

Design/methodology/approach

The data consist of 325 Finnish high school students aged between 13 and 16. The hypotheses are tested using LISREL 8.

Findings

The paper finds that only the attitudes towards advertisements displaying social effects are significantly related with attitudes towards smoking. The attitudes towards the advertisements portraying the themes of health effects and mental effects are not significantly related with attitudes towards smoking and thus are not effective in influencing the respondents' attitudes towards smoking and smoking intentions.

Research limitations/implications

Data were gathered only in one European country (Finland). Future studies should examine whether teenagers in other European countries differ in the way they are affected by different message themes.

Practical implications

Teenagers are susceptible to messages that are related to social approval of not smoking or disapproval of smoking, thus social appeals should be used in antismoking advertising targeted at them.

Originality/value

This study focuses on exploring how message themes used in antismoking advertising affect smoking intentions among teenagers in the European context and specifically in Finland.

Details

Young Consumers, vol. 9 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/17473610810857291
ISSN: 1747-3616

Keywords

  • Tobacco
  • Advertising
  • Young adults
  • Finland

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Article
Publication date: 23 October 2009

The beer market and advertising expenditure

Kari Heimonen and Outi Uusitalo

The purpose of this paper is to examine the impacts of advertising expenditure on brands' market shares, utilizing a novel four‐week advertising‐sales data from the highly…

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Abstract

Purpose

The purpose of this paper is to examine the impacts of advertising expenditure on brands' market shares, utilizing a novel four‐week advertising‐sales data from the highly competitive oligopolistic Finnish beer market in which price competition among the homogeneous larger‐type beer brands is not allowed during the period of the study.

Design/methodology/approach

Competition is modelled using the Lanchester model. The impacts of advertising on market shares are estimated using the impulse‐response functions from vector autoregression, and the full information maximum likelihood and advertising elasticities.

Findings

Some new insights into beer market dynamics are obtained. First, the impacts of advertising are not similar across brands. Second, overspills of advertising impacts across brands are detected. Third, the reactions to competitors' advertising attacks are mild.

Originality/value

The paper utilizes four‐week brand‐level data on the market shares of the leading beer brands in Finland and the brands' advertising expenditure. During the period of the data, price competition is not allowed, which creates a unique opportunity to study the impacts of advertising on the market shares of brands.

Details

Marketing Intelligence & Planning, vol. 27 no. 7
Type: Research Article
DOI: https://doi.org/10.1108/02634500911000243
ISSN: 0263-4503

Keywords

  • Advertising
  • Market share
  • Beer

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Article
Publication date: 1 March 2011

Measuring the financial capability of investors: A case of the customers of mutual funds in Finland

Antti Pellinen, Kari Törmäkangas, Outi Uusitalo and Anu Raijas

The purpose of this paper is to provide further understanding of the financial capability of mutual fund investors, and compare internet and branch office investors. It…

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Abstract

Purpose

The purpose of this paper is to provide further understanding of the financial capability of mutual fund investors, and compare internet and branch office investors. It seeks to examine mutual fund investors' abilities and awareness of the terms and risks of mutual fund investments using a novel measurement instrument.

Design/methodology/approach

Ability measurement techniques adapted from educational and psychological studies were applied in the paper. Empirical survey data were collected in Finland.

Findings

There were differences between different types of investors in terms of financial knowledge. The channel used by the investors in making investments differentiated the more knowledgeable internet investors from the less knowledgeable branch office investors.

Research limitations/implications

The subjects of the study are the clients of a mutual fund company. Future research could concentrate on examining the consequences of financial knowledge. One interesting question is how the consumers understand their personal financial capability and its role in their lives.

Practical implications

The measures and indicators of financial capability are important evaluative instruments for banks and financial corporations as well as for the authorities involved in evaluating investors' financial behaviour.

Originality/value

The ability measurement technique adapted from education and psychological research proved to be applicable in the field of financial capability measurement.

Details

International Journal of Bank Marketing, vol. 29 no. 2
Type: Research Article
DOI: https://doi.org/10.1108/02652321111107611
ISSN: 0265-2323

Keywords

  • Financial management
  • Financial information
  • Unit trusts
  • Investments

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Article
Publication date: 1 February 1996

An alternative view of relationship marketing: a framework for ethical analysis

Tuomo Takala and Outi Uusitalo

At present, a continuing widespread debate on the moral nature of business is widely recognized. However, it seems that the ethical evaluation of business practices is not…

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Abstract

At present, a continuing widespread debate on the moral nature of business is widely recognized. However, it seems that the ethical evaluation of business practices is not very common in the area of relationship marketing. Analyses relationship marketing from the viewpoint of ethical theories. The theories applied are deontology, utilitarianism, virtue ethics, and emotivism. Reviews and analyses studies on relationship marketing issues in order to construct a framework for the ethical analysis of relationship marketing principles. Finally presents a framework for ethical analysis in the form of a constructive solution. Includes a model or code of business ethics for relationship marketers. The code will help make relationship marketing practices ethically longer lasting and, in this way, make the practices also more competitive and profitable.

Details

European Journal of Marketing, vol. 30 no. 2
Type: Research Article
DOI: https://doi.org/10.1108/03090569610106644
ISSN: 0309-0566

Keywords

  • Ethics
  • Marketing management
  • Relationship marketing

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