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Article
Publication date: 8 May 2009

Brian Briggeman and Quatie Jorgensen

Many associations in the Farm Credit System, which are financial cooperatives, pay their member‐borrowers a cash patronage payment based on the amount of loan volume with the…

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Abstract

Purpose

Many associations in the Farm Credit System, which are financial cooperatives, pay their member‐borrowers a cash patronage payment based on the amount of loan volume with the association. In today's competitive lending environment, some Farm Credit associations have offered lower interest rates on new loans but these new member‐borrowers have to forgo their cash patronage payment to receive this new, lower‐interest rate loan. The purpose of this paper is to identify Farm Credit member‐borrowers' preferences for patronage refunds received as a cash payment versus lower fixed real estate interest rates.

Design/methodology/approach

Preferences for patronage refunds or lower fixed interest rates are elicited from Farm Credit Services of East Central Oklahoma member‐borrowers via conjoint analysis.

Findings

Results show that member‐borrowers strongly prefer patronage refunds compared to lower fixed interest rates.

Originality/value

This paper fulfills a need to better understand patronage refund programs within the Farm Credit System.

Details

Agricultural Finance Review, vol. 69 no. 1
Type: Research Article
ISSN: 0002-1466

Keywords

Article
Publication date: 28 August 2023

Shanta Banik and Fazlul K. Rabbanee

Status demotion in hierarchical loyalty programs (HLPs) has received considerable academic attention. However, existing research is relatively silent on whether HLP status…

Abstract

Purpose

Status demotion in hierarchical loyalty programs (HLPs) has received considerable academic attention. However, existing research is relatively silent on whether HLP status demotion fosters service relationship fading by influencing demoted customers’ psychological disengagement and the likelihood of patronage reduction. Drawing on the relationship fading literature and the stimulus–organism–response framework, this study aims to examine these effects. It further investigates the moderating role of psychological ownership on the links of status demotion with psychological disengagement and the likelihood of patronage reduction.

Design/methodology/approach

Two studies (Studies 1 and 2) were conducted in the context of airline HLPs. Study 1 was a structured survey conducted among 213 demoted airline HLP customers in Australia, and Study 2 was an experiment conducted among 178 executive MBA students in Bangladesh. The PROCESS macro was used to test the moderated mediation model.

Findings

The results of both studies show that HLP status demotion significantly influences customers’ psychological disengagement and the likelihood of patronage reduction. The findings also reveal that psychological disengagement mediates the relationship between status demotion and the likelihood of patronage reduction. Further, customers with high (low) psychological ownership feel high (less) psychological disengagement and show high (less) likelihood of patronage reduction due to their HLP status demotion.

Originality/value

This study extends the existing literature on relationship marketing and HLPs by offering a better understanding of how and under what conditions status demotion elicits customers’ psychological disengagement and the likelihood of patronage reduction.

Article
Publication date: 30 August 2022

Ling Ling Tan

This study aims to investigate the relationships among monetary cost (stimulus), perceived greenwash fear, attitude and perceived behavioural control (organism-related factors…

Abstract

Purpose

This study aims to investigate the relationships among monetary cost (stimulus), perceived greenwash fear, attitude and perceived behavioural control (organism-related factors) and green hotel patronage intention (response) using the stimulus-organism-response (S-O-R) model.

Design/methodology/approach

A total of 262 valid questionnaires were collected. Data were collected using the purposive sampling method and tested using the partial least squares (PLS) approach.

Findings

Monetary cost is positively related to only one organism-related factor which is perceived greenwash fear. All organism-related factors are positively related to response, which is green hotel patronage intention. Attitude mediates the relationship between perceived greenwash fear and green hotel patronage intention, as well as perceived behavioural control and green hotel patronage intention.

Research limitations/implications

A longitudinal study can be performed in the future to observe the actual green hotel patronage behaviour of customers.

Practical implications

Green hoteliers should focus on the development of communication strategies to enhance their corporate reputation. Green hoteliers also need to build trust by showing their green initiatives are genuine, identify consumers who are willing to pay more for green hotels and offer promotions with price incentives such as frequency discounts, coupons and rebates to increase interest and trialability.

Originality/value

Few studies have focused on the use of monetary cost as a stimulus in the S-O-R model to predict green hotel patronage intention. This study also tested the mediating effect of attitude, one of the organism-related factors, in the model.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 35 no. 6
Type: Research Article
ISSN: 1355-5855

Keywords

Open Access
Article
Publication date: 13 March 2023

Narimasa Yokoyama, Nobukazu Azuma and Woonho Kim

Despite retail digitisation and research efforts focussed on online and omnichannel shopping, there is insufficient knowledge regarding retail patronage formation in the grocery…

1834

Abstract

Purpose

Despite retail digitisation and research efforts focussed on online and omnichannel shopping, there is insufficient knowledge regarding retail patronage formation in the grocery category, where in-store sales dominate. This study analyses the retail patronage formation in grocery in-store fill-in shopping.

Design/methodology/approach

The authors designed a questionnaire to measure retail patronage behaviour, consumer satisfaction (CS), store attributes evaluation and e-retail usage. Then, the authors analysed the path structure for retail patronage behaviour formation using structural equation modelling. Additionally, they performed a mediation analysis using the bootstrap method and a moderation analysis based on a chi-square difference test.

Findings

This study provides three main findings. First, the authors' model has two ways to increase Share-of-Wallet (SOW). One is to increase Share-of-Visits (SOV) and another is to increase CS amongst non-users of e-retailing. Second, the results of the moderation analysis suggest the influence of customers' use or non-use of e-retailing on SOW formation. Third, service evaluation plays an interesting role in the overall model: the lower the assessment of service, the higher the SOV; the higher the evaluation of service, the greater the CS; the greater the CS, the higher the SOV.

Originality/value

The authors proposed the framework for the relative retail patronage formation in grocery fill-in shopping to examine the relationship between two relative patronage indicators (SOW and SOV) in the path structure and the mediating effect of CS and the moderating effect of e-retailing usage on retail patronage formation.

Details

International Journal of Retail & Distribution Management, vol. 51 no. 13
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 6 July 2012

Nwamaka A. Anaza and Brian N. Rutherford

In an overwhelming portion of the US service economy, the multifaceted responsibilities that frontline employees play as patrons have been overlooked within the academic…

1985

Abstract

Purpose

In an overwhelming portion of the US service economy, the multifaceted responsibilities that frontline employees play as patrons have been overlooked within the academic literature. The notion of employees as customers is a common business practice that garners sizeable benefits to both the firm and its employees; unfortunately, research on this topic is still in its infancy. The purpose of this paper is to examine the impact of internal marketing and job satisfaction on employee patronage, and the role of patronage on employee engagement in a Cooperative Extension Service System.

Design/methodology/approach

An online survey administered to Cooperative Extension employees in frontline service roles was used to test the proposed structural model. Structural equation modeling carried out using the Amos 18.0 software program was employed to analyze the proposed hypotheses.

Findings

It was found that internal marketing is composed of five dimensions, as tested using a second‐order hierarchical structure. Based on the hypothesized linkages, internal marketing and job satisfaction were revealed to be two important factors relevant in determining employee patronage. Furthermore, the results show that employee patronage positively influences employee engagement, thus advancing the benefits of employees in dual roles.

Practical implications

The findings show that the internal and external role of employees is reflective of the firm's ability to grow two important relationships that are vital to the company's success. To tap into employees as patrons, organizations must carefully and simultaneously implement internal marketing practices most suitable to the structure of their market and firm. Particularly, communicating to employees the favorable qualities of a service through reoccurring training programs also serves as a vital means of building interaction between the firm and its customers.

Originality/value

The value of the paper is two fold. First, it reveals an alternative way of measuring internal marketing, and encourages the future assessment of internal marketing as a multi‐dimensional structure rather than a one‐dimensional factor. Second, this research confirms the presence of employee patronage, while also examining predictors and outcomes of employee patronage in a service industry.

Details

Managing Service Quality: An International Journal, vol. 22 no. 4
Type: Research Article
ISSN: 0960-4529

Keywords

Article
Publication date: 15 May 2017

Davide Settembre Blundo, Fernando Enrique García Muiña, Alfonso Pedro Fernández del Hoyo, Maria Pia Riccardi and Anna Lucia Maramotti Politi

The purpose of this paper is to present alternative management practice methods for the cultural heritage sector apart from the traditional public support model. These…

Abstract

Purpose

The purpose of this paper is to present alternative management practice methods for the cultural heritage sector apart from the traditional public support model. These alternatives rely on sponsorship and patronage as well as the newer and more innovative public-private partnership (PPP).

Design/methodology/approach

The paper is organized in two conceptual sections based on a literature review. The first section presents and compares two closely associated business strategy forms that are increasingly becoming popular within companies: sponsorship and patronage. These strategies are analyzed to show their advantages and disadvantages and are assessed based on their best uses in terms of the benefits from their implementation to all stakeholders involved (benefactors, recipients and the public) and, more particularly, to the benefactor’s company communication policy. The second section analyzes the PPP as a newer innovative practice in the cultural heritage sector, a recent development that has great potential, especially during an economic crisis where public funds are reduced, which risks the future recovery and proper maintenance of sites.

Findings

In the paper, the authors stressed that sponsorship, patronage and PPP are not merely alternative ways of primarily obtaining government funding for the cultural heritage sector but are also new strategic management practices that, when properly performed, will not only preserve and improve the sector but also allow more value to be distributed among all stakeholders.

Originality/value

Although the topic of PPP is treated fairly in the scientific literature, especially with regard to infrastructure, there are few cases of the application of this model to cultural heritage management.

Details

Journal of Cultural Heritage Management and Sustainable Development, vol. 7 no. 2
Type: Research Article
ISSN: 2044-1266

Keywords

Article
Publication date: 20 December 2017

Suja R. Nair

There is tremendous growth potential for food and grocery (F&G) retail in an emerging market like India. Bengaluru is the third most populous city of India. With a total…

3038

Abstract

Purpose

There is tremendous growth potential for food and grocery (F&G) retail in an emerging market like India. Bengaluru is the third most populous city of India. With a total consumption expenditure of Rs 2,020 billion and per capita retail expenditure of Rs 67,289 (in 2015), Bengaluru has emerged as a sought-after retail market with many foreign and national brands opening stores here. The purpose of this paper is to use the sign of causality to determine the relationships between store attributes, satisfaction, patronage intention and lifestyles in F&G retailing in Bengaluru.

Design/methodology/approach

An experimentation framework using causal design was developed to establish relationships between variables: store attributes, satisfaction, patronage intention and lifestyle. A primary survey was conducted using a structured non-disguised questionnaire involving 346 F&G shoppers from Bengaluru. Hayes regression models were adapted and hypothesized relationships between the variables tested using correlation, multiple regression and Hayes regression/path analysis.

Findings

Satisfaction acts as a mediator in the relationship between store attributes and patronage intention. Lifestyle does not act as the moderator in the relationships between store attributes and patronage- intention; and, satisfaction and patronage intention.

Research limitations/implications

In experiments that test for causality a big limitation is lower internal validity in the absence of control mechanisms, unlike laboratory studies. Another limitation is that this study is limited to urban Bengaluru F&G shoppers, variations could occur if the study is extended to include rural shoppers.

Practical implications

With 100 percent foreign direct investment permitted in the F&G category in India, the research outcomes will be useful to all food retailers (prospective and current) interested in this retail market. Moreover, in the existing competitive scenario, understanding of associative influences between store attributes, satisfaction, patronage intention and lifestyle will enable retailers comprehend F&G shoppers retailing behavior. This information can be used for targeted marketing and operational strategies, which will deliver more success in marketing relationship management, building competitive advantage and enhancing marketing efforts profitably.

Originality/value

This paper is a new and original contribution to the existing literature on causal relationships among variables in retail marketing research. It is different from prior studies that analyzed shoppers F&G behavior, in that it extends the understanding of the role of “satisfaction” as a mediator and “lifestyle” not a moderator, when testing the causality of store attributes on patronage intention.

Details

International Journal of Retail & Distribution Management, vol. 46 no. 1
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 4 October 2021

Carolyn Jia’En Lo, Yelena Tsarenko and Dewi Tojib

Corporate scandals involving senior executives plague many businesses. Although customers and noncustomers may be exposed to news of the same scandal, they may appraise dimensions…

Abstract

Purpose

Corporate scandals involving senior executives plague many businesses. Although customers and noncustomers may be exposed to news of the same scandal, they may appraise dimensions of the transgression differently, thereby affecting post-scandal patronage intentions. The purpose of this study is to investigate whether and how consumer-firm affiliation affects future patronage intentions by examining nuances in customers’ vs noncustomers’ reactions toward the transgressor’s professional performance and immoral behavior.

Design/methodology/approach

Four between-subjects experimental studies were used to test whether performance-relevant and/or immorality-relevant pathways drive customers’ vs noncustomers’ post-scandal patronage intentions. The results were analyzed using analysis of variance, parallel mediation and serial mediation.

Findings

The results demonstrate that performance judgment, and not immorality judgment, drive the relationship between consumer-firm affiliation and post-scandal patronage intentions (Study 1a), regardless of the order of information presented (Study 1b). Customers form more positive performance judgments because they give more weight to performance-related information (Study 2), demonstrating a sequential effect of consumer-firm affiliation on post-scandal patronage intentions only through the performance-relevant, and not immorality-relevant, pathway (Study 3).

Research limitations/implications

This research contributes to the literature on social distance and moral judgments. Future research should examine other deleterious outcomes such as brand sabotage and negative word-of-mouth, as well as potential moderators including repeated transgressions and prevalence of the infraction in other firms.

Practical implications

This research offers important nuances for understanding how performance and immorality judgments differentially operate and affect post-scandal patronage intentions. The findings highlight the strategic value of communicating the leader’s performance (e.g. professional contributions) as a buffer against potential declining patronage.

Originality/value

Offering new insights into the extant literature and lay beliefs which contend that harsh moral judgment reduces patronage intentions, this research uncovers why and how exposure to the same scandal can result in varying moral judgments that subsequently influence patronage intentions. Importantly, this research shows that the performance-relevant pathway can explain why customers have higher post-scandal patronage intentions compared to noncustomers.

Details

European Journal of Marketing, vol. 55 no. 12
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 3 May 2013

Tianwei Zhang, Mindy Mallory and Peter Barry

The authors aim to investigate what influences a Farm Credit System association to make a patronage refund payment. In particular, they seek to investigate what causes the…

Abstract

Purpose

The authors aim to investigate what influences a Farm Credit System association to make a patronage refund payment. In particular, they seek to investigate what causes the regional heterogeneity in the patronage refund payment decision. It is unclear whether patronage refunds have been used more as a capital management tool or as a member recruitment and retention tool. This study aims to bring some clarity to this issue.

Design/methodology/approach

The authors use an empirical logistic model to estimate the probability of a positive patronage refund payment by a Farm Credit System association, controlling for variables related to the associations' balance sheet as reported in the associations' quarterly call reports.

Findings

The authors find there is evidence that Farm Credit Service associations use patronage refunds as a capital management tool, at least in part. However, they also find that there are still significant regional differences in the patronage refund payment decision even after controlling for variables affecting the associations' balance sheet. The authors conclude that this likely represents member heterogeneity in preferences for patronage refunds versus a discounted interest rate.

Originality/value

The present study is one of the few empirical papers to examine a broad panel of financial cooperatives. Because of this, the authors' paper provides valuable insight into the aggregate behavior of Farm Credit Service associations, particularly into whether they use patronage refunds as a capital management tool, or as a marketing and retention tool.

Details

Agricultural Finance Review, vol. 73 no. 1
Type: Research Article
ISSN: 0002-1466

Keywords

Article
Publication date: 17 June 2021

Charles Dokcen, Vincent Obedgiu and Gideon Nkurunziza

The purpose of the study is to establish the mediating role of Perceived Service Quality on the relationship between Retail Atmospherics and Retail Store Patronage of Supermarkets…

Abstract

Purpose

The purpose of the study is to establish the mediating role of Perceived Service Quality on the relationship between Retail Atmospherics and Retail Store Patronage of Supermarkets in Emerging Economies using empirical evidence from Uganda.

Design/methodology/approach

The study used a cross-sectional research design and quantitative approach to understand stand the structured reality of Retail Store Patronage of supermarkets in context of emerging economies. In the context of this study, the data were drawn from Uganda's supermarkets. A sample of 1,504 customers were selected from 136,270 customers. Data was collected from supermarket customers using closed ended questionnaire. Descriptive and inferential statistics were derived to describe the behavior of customers and draw conclusions on population using sample statistics. Correlation analysis was used to establish the degree of association between the variables. Hierarchical regression was applied to assess the unique contribution of each variable; control variables-income and age, predictor variables – Retail Atmospherics and Perceived Service Quality on dependent variable – Retail Store Patronage. Mediation was done following the four-step procedures of mediation of Baron and Kenny (1986).

Findings

The results revealed significant positive relationship between Retail Atmospherics, Perceived Service Quality and Retail Store Patronage, confirming the direct hypotheses. Perceived Service Quality partially mediated the relationship between Retail Atmospherics and Retail Store Patronage. The findings depict that Retail Store Patronage is influenced directly by Retail Atmospherics and indirectly through Perceived Service Quality as a mediating variable. However, in situations where the atmospherics is good but perceived service quality is poor, Retail Store Patronage may not be fully realized.

Originality/value

The study provides information that is relevant for filling the practical and theoretical gap in the Retail Store Patronage in Ugandan supermarkets. Previous research studies investigated patronage behavior of shoppers in single retail units yet there is paucity of research on patronage behavior across different retail formats in the world. This study can be generalized and have strategic implications to developing economies that seek to grow and sustain their businesses. It points to the gaps that are normally overlooked and could lead business failure. The focus of most previous studies were on developed economies more especially Europe and America. This study in particular focused on the role of perceived service quality in the relationship between retail atmospherics and customer retail store patronage in emerging economies like Uganda as a testing ground.

Details

Journal of Contemporary Marketing Science, vol. 4 no. 1
Type: Research Article
ISSN: 2516-7480

Keywords

1 – 10 of over 7000