Search results

The purpose of this paper is to examine how factors that affect the processing of bundled price information moderate consumer response to a price discount on the bundle. Literature on categorical vs piecemeal processing of information predicts that consumers will be inclined to process a bundled price categorically unless circumstances encourage a piecemeal processing approach. Marketing relevant variables that foster piecemeal processing should result in stronger effects for discount size on bundle choice.

This paper reports two experiments that demonstrate that the effect of discount size on bundle choice is moderated by increased salience of price information and lower familiarity with the purchase situation, both of which increase item price processing.

When the presentation format encouraged item price processing with more salient item prices or a less familiar purchase situation, a discount on the bundle significantly increased the likelihood of bundle choice. When circumstances did not encourage item price processing, discounts on the bundle relative to the item prices had little effect on choice.

Additional research is recommended to test boundary conditions, the effects of additional presentational/situational factors and explicit consumer welfare implications.

Results indicate that a price discount on a bundle is only effective/necessary when the purchase situation motivates and enables consumers to engage in piecemeal processing of item price information. When large price discounts are offered on the bundle, marketers should create a situation that encourages item price processing, in order to maximize the effect.

This paper adds to a relatively new perspective in the bundling literature which has not fully examined if and when consumers process item price information. It is found that responsiveness to price discounts is enhanced by managerially relevant variables that increase the likelihood of item price processing.

The advancements of mobile technologies and devices have greatly facilitated the extension of online services from web to mobile environments. Drawing on the categorization theory, the purpose of this paper is to explore the impact of perceived entitativity on users’ web-mobile service extension behavior. The research model considers how perceived entitativity serves as a category cue to link the category- and piecemeal-based processing and shape users’ adoption of extended mobile services.

An online survey (n=552) was conducted to empirically test the model. The data were analyzed by structural equation modeling approach.

The results offer two major findings. First, performance expectancy, perceived controllability and subjective norm are important antecedents of users’ usage intention. Second, perceived entitativity has three types of effects on usage intention: it exerts a direct and positive influence on usage intention; it indirectly facilitates usage intention through increasing PE and perceived controllability; and it moderates the relationship between subjective norm and usage intention.

This study contributes to the literature by taking into account the interplay of category- and piecemeal-based processing to understand consumers’ web-mobile service extension behavior.

This article explores the relationship between knowledge and sustainable placemaking. Distinguishing between “expert knowledge” and “local knowledge,” it first problematizes expert knowledge, and then traces the local knowledge approach to placemaking. The widening gap between expert and local knowledge prompts understanding their sources and modes of knowing. By viewing place as an organization this article draws from Nonaka's (1994) distinctions of four modes of knowledge creation in an organization, and explores the commonalities between the two. The analogy between place and organization helps gain new insights from the organizational theory literature which links processed information to knowledge creation. Seeking similarities between place and organization arises from how individuals in organizations and places process information to solve problems. Critically examining local knowledge questions the presupposition of a fixed, static mode of knowing, and helps incorporate a range of activities and knowhow associated with different stages of placemaking. The study suggests that local knowledge converts existing knowledge into four types of new knowledge during the placemaking process. Furthermore, compared to the top-down nature of expert knowledge which mainly adheres to the principles of scientific rationality for grand planning and problem solving, the local knowledge approach to placemaking is bottom-up, fosters piecemeal growth, and thus is more adaptable and sustainable. Promoting (social) sustainability through knowledge conversion (i.e., converting tacit knowledge into explicit knowledge and vice versa), social interaction and self-help characterize placemaking in informal settlements.

The purpose of this research is to investigate the influence of self-purchasing versus gift-giving situations on the importance of product cues and the moderating effect of brand schematicity.

Data were collected via an online survey of 285 French consumers for wine and 139 French consumers for whisky. The interaction effect of the gift-giving situation and brand schematicity on the importance of product cues was then investigated.

The results differed, depending on the importance of brand cue. For the whisky category (high brand importance), brand schematicity had no influence on the importance of cues. For the wine category (low brand importance), brand schematicity moderated the influence of the gift-giving situation on the importance of extrinsic cues such as commercial brand. Brand schematicity and the situation of gift-giving also influence the number of important cues which consumers take into account when making their choice. In low-involvement purchasing situations, brand-aschematic consumers use fewer choice criteria than brand-schematic consumers, whereas in high-involvement purchasing situations, regardless of their level of brand schematicity, consumers use the same number of criteria to make their selection.

When the commercial brand is a salient cue and regardless of the purchasing situation, it is important to provide information on the brand to consumers through any format, such as social media, leaflets, flash codes, in-store digital display, etc. When the commercial brand is not a salient cue, brand schematicity may be relevant to a segment of consumers because this consumer profile may need more information and will focus on the commercial brand. Brand managers could develop a specific approach to schematic consumers based on brand content, for example, brand managers could provide marketing materials (e.g. leaflets, flash codes, mobile apps) to retail store managers explaining the origin and value of the commercial brand. Consumers could also be provided with digital devices (such as tablets), which they could use to search for information according to these cues before choosing their product. Social media and online brand community could also provide more details about the brand and may provide an interactive area for discussions with consumers.

There has been little research on the effect of brand schematicity on the importance of product cues. To the authors’ knowledge, the interaction between brand schematicity and purchase according to product category has not previously been studied. The influence of brand schematicity changes depending on the importance given to brand cues.

Provides a critique of teleological information systems development methodologies. Argues that these methodologies lead to “dead” systems that make very little sense to their users. Presents the work of the architect Christopher Alexander as an example from another discipline of ateleological development. Using principles gleaned from his work, presents some ideas of how information systems development may become more ateleological. Narrative, metaphor and myth seem to provide some indicators of how such ateleological development may be achieved. Acknowledges that there is no simple answer to the issues involved, except for the conviction that more precision or automation in teleological development methodologies would not do much to solve the enormous problems occurring in practice today.

Prior research has identified that brands have a differential impact on consumer evaluations across various brand benefits. This paper investigates whether these effects are stable over time, or evolve in a consistent way.

Consumer evaluations of brand benefits into overall brand and detailed attribute-specific sources through a standard confirmatory factor analysis approach have been decomposed. Two unique datasets have been analyzed; the first contains cross-sectional data from Kodak across four different consumer goods categories, and the other is a longitudinal dataset from the USA and Canada in the surface-cleaning category, covering seven brands over five years (2007-2011).

A systematic evolution in brand effects has been demonstrated: a general trend is that over time and with experience, consumers rely more heavily on overall brand information to develop their evaluations. However, early in a brand’s life, or later when circumstances compel consumers to actively consider the attributes, ingredients or features of a brand, consumers may rely more heavily on, detailed attribute-specific information to evaluate brand benefits.

The systematic evolution in consumers’ use of information from attribute to brand is hypothesized in this paper and is found to occur contrary to the speculation of Dillon et al. (2001) regarding the direction of such an evolution. Further, our results indicate the sensitivity of our approach to detect changes in consumers’ use of the two sources that should be expected, given the various exogenous factors.

Brand managers can use the results from our procedure to alter their messages to more strongly emphasize either overall brand information or detailed attribute-specific information, depending on the consumer segment or key benefit in question. The research offers insights for the kind of information managers should communicate for brands trying to extend into new categories. The research also raises interesting questions regarding the extent to which brands can own a strong position on a particular benefit over time.

No prior work has evaluated brand effects (i.e. the relative use of brand vs attribute sources) to evaluate brand benefits over time. Our results demonstrate the value of the decompositional procedure we recommend and the importance of knowing which source is relied upon more heavily as consumers evaluate brands.

Introduction: When people need to take decisions, being economic decisions or otherwise, their decisions tend to rely on information the brain has already processed, and this includes the resources that the person has already invested. This is called sunk cost bias in the behavioural economics literature. On the other hand, mental practices could lead to the mental accounting bias, where people allocate a different value to a fixed amount of money, depending on circumstances.

Purpose: In this chapter, both biases mental accounting and sunk cost are investigated for the tourism industry in Turkey.

Methodology: The topic is researched through scenario-based questions and the Chi-square Automatic Interaction Detector (CHAID) method is applied.

Findings: As a result, it could be reported that people, regardless of gender, fall into sunk cost and mental accounting biases in decisions relating to their vacations. Mental accounting biases can be primarily explained using the scenario questions posed rather than gender, education, and income while sunk cost bias is explained by status, ‘being s university student’ and ‘income level’.

Practical implications: Rapid price changes in the tourism industry can disturb consumers who are mental accounting and sunk cost biased. So, they can change their holiday preferences or be dissatisfied with it and give negative feedback.

Examines how customers react to service extensions, or the use of an established company name to enter new service categories or classes. Reports the findings of an experiment designed to assess the effectiveness of the extensions. Discusses the managerial implications of the results for service extension strategies in the marketplace.

This chapter explores the work of Stephen Bunker through a review of the role of women in Amazonian extractive economies and how shifting ideas of development affected them in the Western Amazon. While the initial development programs for Extractive Reserves focused on green marketing, consumer coops and value added through processing carried out in an urban factory in the village of Xapuri, as structural adjustment programs gained importance, the development emphasis shifted to decentralized processing and piecemeal contracts on the individual seringal (rubber tapping estate) or in mini factories in forests. While this was an appealing approach given the kinds of development concerns at the time; non-timber forest products, income generation for women in the forest itself, and neoliberal ideologies of economic and labor decentralization, it failed to appreciate the demands and the opportunity costs on women's time in rural areas and underestimated the importance of formal employment in urban areas. The logics on which the shift was justified, enhanced production, efficiency and lower costs, did not materialize.