Previous studies have argued that trust and commitment can create value in cooperative relationships. However, this study observed that, in practice, trust and commitment…
Previous studies have argued that trust and commitment can create value in cooperative relationships. However, this study observed that, in practice, trust and commitment alone may not ensure value creation in asymmetric relationships. Accordingly, this study aims to investigate the mediating role of specific assets in the effects of trust and commitment on value creation in asymmetric buyer–seller relationships.
Contract manufacturers (CMs) in Asia were sampled to validate the argument proposed by this study. Most Taiwanese CMs are partnered with international brands (original equipment manufacturers [OEMs]) that have stronger bargaining power. This cooperative relationship is characteristically asymmetric. A questionnaire method was applied, and structural equation modeling was performed to verify the proposed hypotheses.
Specific asset investment (SAI) was a crucial mediator that explained the effects of trust and commitment on the relationship value of an asymmetric cooperative relationship. Past studies have claimed that power asymmetry results in an unequal distribution of benefits. Nevertheless, regarding the relationship between CMs and OEMs, the study revealed that relationship value could still be increased once the congruent goals have been achieved by both parties. This finding contradicts past theoretical predictions.
Characteristically asymmetric CMs–OEMs (seller–buyer) relationships cannot be maintained merely through trust and commitment, particularly in the context of power and resource imbalances in which the stronger party often possesses a wider selection of prospective partners. The results of this study suggested that the CM should unilaterally invest in specific assets conducive to a cooperative relationship as an expression of faith in the relationship with the stronger firm, thereby creating opportunities for value cocreation.
The analysis of the relevance of relationship quality in the context of asymmetric cooperative relationships confirmed the mediating influences of SAI on ensuring value creation and the maintenance of the relationships. Relationship value could still be created despite the highly asymmetry power relationship. The CMs’ SAI is the key mechanism for this achievement.
The purpose of this paper is to examine how potential purchasers of a personal information, communication and entertainment device such as a smartphone, perceive the…
The purpose of this paper is to examine how potential purchasers of a personal information, communication and entertainment device such as a smartphone, perceive the aesthetics of such a product. It then examines whether appreciation of the product’s aesthetics influences their purchase intention through different dimensions of perceived value drawn from perceptions of the product’s aesthetics, or whether there is a direct relationship from aesthetics to purchase intention.
Mixed methods consisting of two focus groups, a pilot and large online surveys were used for instrument confirmation and data collection. Data were analysed and hypotheses were tested using partial least squares structural equation modelling techniques.
Aesthetics’ primary effect on purchase intention is not direct, but rather indirect through perceived social and to a lesser extent, perceived emotional value while the importance of aesthetics on perceived functional value is far less. There was also support for a formative approach in the construction of an aesthetics scale with the identification of four different latent factors of aesthetics.
This study is product specific but should be extendable to the product category. The possibility of other variables affecting the aesthetic appreciation of a product also needs consideration.
The study provides managers with insights on how aesthetics can be used to strengthen purchase intention in terms of both product development and promotional strategies. Aesthetics’ appeal to social and emotional perceived values, rather than functional value, provides guidance on how to use aesthetics in promotional campaigns.
Despite the richness of the literature on aesthetics, only a limited number of studies have researched the factors influencing aesthetic appreciation of a product and the effect on purchase intention. This research expands knowledge in the area thereby providing new insights on the influence of aesthetics on marketing.