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1 – 10 of over 1000Chadwick J. Miller, Adriana Samper, Naomi Mandel, Daniel C. Brannon, Jim Salas and Martha Troncoza
The purpose of this paper is to examine how the number of activities within a multi-activity experience influences consumer preferences before and after consumption.
Abstract
Purpose
The purpose of this paper is to examine how the number of activities within a multi-activity experience influences consumer preferences before and after consumption.
Design/methodology/approach
The hypotheses are tested using four experiments and a secondary data set from a river cruise firm that includes first-time river cruise purchases by consumers from this firm between January 2011 and December 2015 (n = 337,457).
Findings
Consumers prefer experiences with fewer (vs more) activities before consumption – a phenomenon, this paper calls “activity apprehension” – but prefer experiences with more (vs fewer) activities after consumption. A mediation analysis indicates that this phenomenon occurs because the highly perishable nature of activities makes consumers uncertain about their ability to use all the activities within the experience (usage uncertainty).
Practical implications
Evaluations of a multi-activity experience depend on both the number of activities and on whether the consumer is at the pre- or post-consumption stage of the customer journey. As such, firms looking to sell multi-activity experiences should design and promote these experiences in a way that minimizes activity apprehension.
Originality/value
This study is the first to demonstrate that consumer perceptions of an optimal experience depend on both the number of included activities and on the stage of the customer journey (i.e. pre- or post-purchase). It further contributes to the consumer experience literature by examining an unexplored activity characteristic, perishability, in shaping experiential purchase decisions. Finally, it demonstrates a new way in which experiential purchases differ from tangible product purchases.
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Pichawadee Kittipanya‐ngam, Yongjiang Shi and Mike J. Gregory
The purpose of this paper is to explore the key influential factors and their implications on food supply chain (FSC) location decisions from a Thailand‐based manufacturer's view.
Abstract
Purpose
The purpose of this paper is to explore the key influential factors and their implications on food supply chain (FSC) location decisions from a Thailand‐based manufacturer's view.
Design/methodology/approach
In total, 21 case studies were conducted with eight Thailand‐based food manufacturers. In each case, key influential factors were observed along with their implications on upstream and downstream FSC location decisions. Data were collected through semi‐structured interviews and documentations. Data reduction and data display in tables were used to help data analysis of the case studies.
Findings
This exploratory research found that, in the food industry, FSC geographical dispersion pattern could be determined by four factors: perishability, value density, economic‐political forces, and technological forces. Technological forces were found as an enabler for FSC geographical dispersion whereas the other three factors could be both barriers and enablers. The implications of these four influential factors drive FSC towards four key patterns of FSC geographical dispersion: local supply chain (SC), supply‐proximity SC, market‐proximity SC, and international SC. Additionally, the strategy of the firm was found to also be an influential factor in determining FSC geographical dispersion.
Research limitations/implications
Despite conducting 21 cases, the findings in this research are based on a relatively small sample, given the large size of the industry. More case evidence from a broader range of food product market and supply items, particularly ones that have significantly different patterns of FSC geographical dispersions would have been insightful. The consideration of additional influential factors such as labour movement between developing countries, currency fluctuations and labour costs, would also enrich the framework as well as improve the quality and validity of the research findings. The different strategies employed by the case companies and their implications on FSC location decisions should also be further investigated along with cases outside Thailand, to provide a more comprehensive view of FSC geographical location decisions.
Practical implications
This paper provides insights how FSC is geographically located in both supply‐side and demand‐side from a manufacturing firm's view. The findings can also provide SC managers and researchers a better understanding of their FSCs.
Originality/value
This research bridges the existing gap in the literature, explaining the geographical dispersion of SC particularly in the food industry where the characteristics are very specific, by exploring the internationalization ability of Thailand‐based FSC and generalizing the key influential factors – perishability (lead time), value density, economic‐political forces, market opportunities, and technological advancements. Four key patterns of FSC internationalization emerged from the case studies.
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Four characteristics have been regularly applied to services: intangibility, heterogeneity, inseparability, perishability (IHIP). More and more exceptions occur which have…
Abstract
Purpose
Four characteristics have been regularly applied to services: intangibility, heterogeneity, inseparability, perishability (IHIP). More and more exceptions occur which have resulted in substantial criticism. This paper aims to show that each characteristic is valid and useful when related to an individual aspect of services instead of being assigned to services as a single entity.
Design/methodology/approach
Based on customer integration, a framework (FTU framework) and a resource typology are developed. These approaches are the theoretical foundation of the analysis.
Findings
The FTU framework and a resource typology reveal different aspects of services and allow the assignment of the IHIP characteristics to them. Intangibility is assigned to the service offering, heterogeneity and inseparability to customer resources, and perishability to the facilities of the provider.
Research limitations/implications
The paper is based on a theoretical analysis. Researchers may want to empirically test the approach.
Practical implications
Assigning the IHIP characteristics more clearly to certain aspects of services reveals their origin and makes them more tractable. For example knowing that heterogeneity of services is due to customers resources makes it more predictable and manageable.
Originality/value
Although the IHIP characteristics are both widely cited and criticized, existing research has only tried to find and establish new characteristic(s). The approach of this paper is original because it takes a more trenchant look at them in order to develop a framework identifying aspects of services for which they apply.
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Sareh Khazaeli, Mohammad Saeed Jabalameli and Hadi Sahebi
Due to the importance of quality to customers, this study considers criteria of quality and profit and optimizes both in a multi-echelon cold chain of perishable agricultural…
Abstract
Purpose
Due to the importance of quality to customers, this study considers criteria of quality and profit and optimizes both in a multi-echelon cold chain of perishable agricultural products whose quality immediately begins to deteriorate after harvest. The two objectives of the proposed cold chain are to maximize profit and quality. Since postharvest quality loss in the supply chain depends on various decisions and factors, in addition to strategic decisions, the authors consider the temperature setting in refrigerated facilities and transportation vehicles due to the unfixed shelf life of the products which is related to the temperature found by Arrhenius formula.
Design/methodology/approach
The authors use bi-objective mixed-integer nonlinear programming to design a four-echelon supply chain. The authors integrate the supply chain echelons to detect the sources and factors of quality loss. The four echelons include supply, processing, storage and customer. The decisions, including facility location, assigning nodes of each echelon to corresponding nodes from the adjacent echelon, allocation of vehicles to transport the products from farms to wholesalers, processing selection, and temperature setting in refrigerated facilities, are made in an integrated way. Model verification and validation in the case study are done based on three perishable herbal plants.
Findings
The model obtains a 29% profit against a total cost of 71 and 93% of original quality of the crops is maintained, indicating a 7% quality loss. The final quality of 93% is the result of making a US$6m investment in the supply chain, including the procurement of high-quality raw materials; facility establishment; high-speed, high-capacity vehicles; location assignment; processing selection and refrigeration equipment in the storage and transportation systems, helping to maximize both the final quality of the products and the total profit.
Research limitations/implications
The proposed supply chain model should help managers with modeling decisions, especially when it comes to cold chains for agricultural products. The model yields these results – optimal location-allocation decisions for the facilities to minimize distances between the network nodes, which save time and maintain the majority of the products’ original quality; choosing the most appropriate processing method, which reduces the perishability rate; providing high-capacity, high-speed vehicles in the logistics system, which minimizes transportation costs and maximizes the quality; and setting the right temperature in the refrigerated facilities, which mitigates the postharvest decay reaction rate of the products.
Practical implications
Comparison of the results of the present research with those of the traditional chain (obtained through experts) shows that since the designed chain increases the profit as well as the final quality, it has benefits for the main chain stakeholders, which are customers of agricultural products. This study model is expected to have a positive impact on the environment by placing strong emphasis on quality and preventing excessive waste generation and air pollution by imposing a financial penalty on extra demand production.
Social implications
Since profit and quality of the final product are two important factors in all cultures and communities, the proposed supply chain model can be used in any food industry around the world. Applying the proposed model induces growth in local industries and promotes the culture of prioritizing quality in societies.
Originality/value
To the best of the authors’ knowledge, this is the first research on a bi-objective four-echelon (supply, processing, storage and customer) postharvest supply chain for agricultural products including that integrates transportation logistics and considers the deterioration rate of products as a time-dependent variable at different levels of decision-making.
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Soroosh Saghiri, Emel Aktas and Maryam Mohammadipour
Perishable inventory management for the grocery sector has become more challenging with extended omnichannel activities and emerging consumer expectations. This paper aims to…
Abstract
Purpose
Perishable inventory management for the grocery sector has become more challenging with extended omnichannel activities and emerging consumer expectations. This paper aims to identify and formalize key performance measures of omnichannel perishable inventory management (OCPI) and explore the influence of operational and market-related factors on these measures.
Design/methodology/approach
The inductive approach of this research synthesizes three performance measures (product waste, lost sales and freshness) and four influencing factors (channel effect, demand variability, product perishability and shelf life visibility) for OCPI, through industry investigation, expert interviews and a systematic literature review. Treating OCPI as a complex adaptive system and considering its transaction costs, this paper formalizes the OCPI performance measures and their influencing factors in two statements and four propositions, which are then tested through numerical analysis with simulation.
Findings
Product waste, lost sales and freshness are identified as distinctive OCPI performance measures, which are influenced by product perishability, shelf life visibility, demand variability and channel effects. The OCPI sensitivity to those influencing factors is diverse, whereas those factors are found to moderate each other's effects.
Practical implications
To manage perishables more effectively, with less waste and lost sales for the business and fresher products for the consumer, omnichannel firms need to consider store and online channel requirements and strive to reduce demand variability, extend product shelf life and facilitate item-level shelf life visibility. While flexible logistics capacity and dynamic pricing can mitigate demand variability, the product shelf life extension needs modifications in product design, production, or storage conditions. OCPI executives can also increase the product shelf life visibility through advanced stock monitoring/tracking technologies (e.g. smart tags or more comprehensive barcodes), particularly for the online channel which demands fresher products.
Originality/value
This paper provides a novel theoretical view on perishables in omnichannel systems. It specifies the OCPI performance, beyond typical inventory policies for cost minimization, while discussing its sensitivity to operations and market factors.
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Pravin Suryawanshi and Pankaj Dutta
The emergence of risk in today's business environment is affecting every managerial decision, majorly due to globalization, disruptions, poor infrastructure, forecasting errors…
Abstract
Purpose
The emergence of risk in today's business environment is affecting every managerial decision, majorly due to globalization, disruptions, poor infrastructure, forecasting errors and different uncertainties. The impact of such disruptive events is significantly high for perishable items due to their susceptibility toward economic loss. This paper aims to design and address an operational planning problem of a perishable food supply chain (SC).
Design/methodology/approach
The proposed model considers the simultaneous effect of disruption, random demand and deterioration of food items on business objectives under constrained conditions. The study describes this situation using a mixed-integer nonlinear program with a piecewise approximation algorithm. The proposed algorithm is easy to implement and competitive to handle stationary as well as nonstationary random variables in place of scenario techniques. The mathematical model includes a real-life case study from a kiwi fruit distribution industry.
Findings
The study quantifies the performance of SC in terms of SC cost and fill rate. Additionally, it investigates the effects of disruption due to suppliers, transport losses, product perishability and demand stochasticity. The model incorporates an incentive-based strategy to provide cost-cutting in the existing business plan considering the effect of deterioration. The study performs sensitivity analysis to show various “what-if” situations and derives implications for managerial insights.
Originality/value
The study contributes to the scant literature of quantitative modeling of food SC. The research work is original as it integrates a stochastic (uncertain) nature of SC simultaneously coupled with the effect of disruption, transport losses and product perishability. It incorporates proactive planning strategies to minimize the disruption impact and the concept of incremental quantity discounts on lot sizes at a destination node.
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Sasikarn Chatvijit Cook and Jennifer Yurchisin
The current research explored both pre-purchase and post-purchase factors of consumer behaviour. Specifically, the purpose of this paper is to investigate the relationships that…
Abstract
Purpose
The current research explored both pre-purchase and post-purchase factors of consumer behaviour. Specifically, the purpose of this paper is to investigate the relationships that may exist among consumers’ perceptions of perishability, scarcity, low price, attitudes, impulse buying, post-purchase emotions, and product returns within the context of the fast fashion environments.
Design/methodology/approach
A total of 246 usable questionnaires completed by female undergraduate students, who made purchases and product returns at fast fashion retailers, were analysed in SPSS and AMOS 23.0. Structural equation modelling was employed to test the hypotheses.
Findings
Consumers who are attracted to scarcity due to limited supply and scarcity due to time, referred to as perceived perishability, have a positive attitude towards the fast fashion retailers in which products are presented in scarce environments. Likewise, consumers have a positive attitude towards fast fashion retailers due to low priced merchandises they offer. Consequently, consumers who have a positive attitude towards the fast fashion retailers are likely to purchase products from them impulsively. Moreover, impulse buying behaviour positively influenced some negative post-purchase emotional responses, which in turn positively influenced product returns in the fast fashion environments.
Research limitations/implications
The results of the current study contribute to a greater understanding of apparel-related consumer behaviour in general. A theory formation of fast fashion consumer behaviour from acquisition to disposal can be drawn from the results of this study. Because some fast fashion retailers do sell clothing for both men and women, researchers could compare the responses of males and females to examine differences in consumer behaviour related to demographic characteristics. In the future, an examination of actual emotional responses and return behaviour would be beneficial for a more complete understanding of post-purchase consumer behaviour.
Practical implications
Fast fashion retailers could use this information to carefully design shopping environments that induce impulse buying behaviour because it may result in product returns. Fast fashion retailers need to understand the causes of the return behaviour, whether consumer related or product related, to better meet the needs of their target market. Return policies must be considered.
Originality/value
This research is the first to examine the impact of negative emotions following consumers’ impulse buying on product returns in the fast fashion retail environments.
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Rakesh Patidar and Sunil Agrawal
The purpose of this paper is to study and develop supply chain structure of traditional Indian agri-fresh food supply chain (AFSC). This paper proposes a mathematical model to…
Abstract
Purpose
The purpose of this paper is to study and develop supply chain structure of traditional Indian agri-fresh food supply chain (AFSC). This paper proposes a mathematical model to design a traditional Indian AFSC to minimize total distribution cost and post-harvest losses in the chain.
Design/methodology/approach
This paper formulates two mathematical models to structure and represent the flow of products in the existing chain. First, a three-echelon, multi-period, multi-product, mixed-integer linear programming (MILP) model is formulated to minimize the total distribution cost incurred in the chain. Further, the developed formulation is extended by considering the perishability of products in the second model.
Findings
A real case study problem of Mandsaur district (India) is solved in LINGO 17.0 package to check the validity of the formulated models. The perishable (second) model of AFSC reports better results in terms of costs and post-harvest losses minimization. The results revealed that 92% of the total distribution cost incurred in the transportation of products from farmers to the hubs.
Research limitations/implications
This paper includes implications for redesigning an existing supply chain network by incorporating an appropriate transportation strategy from farmers to hubs to minimize transportation inefficiency and enhance the profitability of farmers.
Practical implications
The formulated AFSC model would help managers and policymakers to identify optimal locations for hubs where required infrastructure would be developed.
Originality/value
According to the author's best knowledge, this paper is the first to design traditional Indian AFSC by considering the perishability of products.
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Luluk Lusiantoro, Nicola Yates, Carlos Mena and Liz Varga
The purpose of this paper is to contribute to the understanding of the relationship between information sharing and performance of perishable product supply chains (PPSC)…
Abstract
Purpose
The purpose of this paper is to contribute to the understanding of the relationship between information sharing and performance of perishable product supply chains (PPSC). Building on transaction cost economics (TCE), organisational information processing theory (OIPT), and contingency theory (CT), this study proposes a theoretical framework to guide future research into information sharing in perishable product supply chains (IS-PPSC).
Design/methodology/approach
Using the systematic literature review methodology, 48 peer-reviewed articles are carefully selected, mapped, and assessed. Template analysis is performed to unravel the relationship mechanisms between information sharing and PPSC performance.
Findings
The authors find that the relationship between information sharing and PPSC performance is currently unclear, and there is inconsistency in the positioning of information sharing among constructs and variables in the IS-PPSC literature. This implies a requirement to refine the relationship between information sharing and PPSC performance. The review also revealed that the role of perishable product characteristics has largely been ignored in existing research.
Originality/value
This study applies relevant multiple theoretical perspectives to overcome the ambiguity of the IS-PPSC literature and contributes nine propositions to guide future research. Accordingly, this study contributes to the refined roles of relationship uncertainty, environmental uncertainty, information sharing capabilities, and perishable product characteristics in shaping the relationship between information sharing and PPSC performance.
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Devon DelVecchio, Timothy B. Heath and Max Chauvin
Multi-unit discounts (MUDs, e.g. “3 for $4”) typically increase sales relative to other discounting frames. This study demonstrates the value of MUDs by showing that positive…
Abstract
Purpose
Multi-unit discounts (MUDs, e.g. “3 for $4”) typically increase sales relative to other discounting frames. This study demonstrates the value of MUDs by showing that positive multi-unit price/quantity signals are potent enough to match and even exceed the sales produced by larger discounts on single items. However, there is reason to believe that MUDs can produce neutral effects in some cases (e.g. among consumers interested in only single-unit purchases) and even negative effects in others. In addition, the study considers whether MUDs can, in some cases, reduce purchase quantities by signaling smaller-than-otherwise-planned purchase amounts and/or lower-quality products.
Design/methodology/approach
The effectiveness of MUDs is tested in both the field and lab. Study 1 models purchase quantities stemming from 2,374 purchases of discounted items at a mass retailer. Purchased products ranged in type from pantry items to apparel and electronics, and ranged in price from 44¢ to $99.99. There were 1,530 single-unit discounts, 596 two-unit discounts and 248 discounts, involving three or more units. Study 2 consists of a laboratory experiment that overcomes the shortcomings of Study 1 by accounting for non-purchasers, controlling for product classes and testing whether smaller MUDs can lead to lower purchase quantities for larger-purchase-quantity products.
Findings
The results of both the field study and the laboratory experiment indicate that MUDs’ monetary cue (savings) and purchase-quantity cue (volume) increase purchase quantities. Generally, purchase quantities increased monotonically with the number of units offered in the discount. In fact, the quantity cue is so effective that it can increase sales enough as to substitute for larger discounts. However, in some instances, MUDs can decrease intended purchase quantities. The negative effect of MUDs is the most pronounced for larger unit deals, offering deeper discounts on perishable goods.
Originality/value
This research is the first to demonstrate that the power of the signals provided by MUDs may be so positive as to lead them to be more effective than discounts of substantially larger value but also so negative as to render them less effective than single-units discounts. This negative outcome poses a threat beyond those typically associated with discounts, in that rather than consumers simply discounting a discount, in which case the discount remains positive even if their impact at the margin wanes, the MUD frame may actually reduce sales.
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