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1 – 10 of over 1000Kacy Kim, Yuhosua Ryoo, Srdan Zdravkovic and Sukki Yoon
In the digital era, price transparency—the practice of disclosing cost breakdowns in product manufacturing—has become present on digital platforms. Although its benefits are…
Abstract
Purpose
In the digital era, price transparency—the practice of disclosing cost breakdowns in product manufacturing—has become present on digital platforms. Although its benefits are well-documented and consumers should theoretically desire costless and relevant information for informed decision-making, this paper proposes that consumers may resist overly transparent pricing, particularly when it pertains to premium-priced (vs regular-priced) products from countries with high equity.
Design/methodology/approach
Our research comprises three experimental studies utilizing both student and representative online Prolific samples, covering various products and countries with different equity levels. Initially, a pilot study identifies an interpersonal should-want conflict induced by price transparency when purchasing premium-priced products, leading to information avoidance. Subsequent studies further explore this phenomenon by examining the moderating role of country equity and the mediating role of price unfairness perceptions.
Findings
Price transparency can backfire when purchasing premium-priced products due to the want-should conflict among consumers—the desire to receive disclosure of cost breakdowns versus the inclination not to view it. This conflict results in increased resistance to receiving transparent price information and decreased brand attitudes and purchase intentions, especially for products originating from high-equity countries. Heightened perceptions of price unfairness explain these dynamics.
Research limitations/implications
The study primarily relies on experimental designs with limited sample sizes. To enhance the generalizability of the findings, incorporating large-scale real market data across diverse domains and countries would be beneficial.
Originality/value
Grounded in the should-want conflict and information avoidance theories, this paper uniquely explores the adverse effects of price transparency on digital platforms. We extend this by demonstrating that this conflict is influenced by country equity, where the perceived value added by the association of a product with a given country name affects whether consumers experience the conflict. Our investigation of perceived price unfairness further deepens our understanding of the nuanced effects of price transparency.
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Lotte Hallez, Bram Spruyt, Filip Boen and Tim Smits
This study investigates the combined impact of two packaging cues (i.e. packaging material, recycled content claim) and a price premium on young consumers’ product perceptions and…
Abstract
Purpose
This study investigates the combined impact of two packaging cues (i.e. packaging material, recycled content claim) and a price premium on young consumers’ product perceptions and choices.
Design/methodology/approach
Experimental data were collected online via a questionnaire and a hypothetical choice task completed by 221 young consumers (i.e. 19–25 years). We manipulated two packaging cues for a liquid food product: the packaging material (glass vs plastic) and the presence (vs absence) of a recycled content claim (i.e. 100% recycled). We also manipulated whether a price premium was attached to these packaging variations.
Findings
The packaging material and the claim both had a significant influence on young consumers’ sustainability perceptions, and these perceptions extended to perceptions of various product attributes (e.g. healthiness, quality). When all products cost the same, participants were more likely to choose a glass bottle (i.e. 81%) than a plastic bottle, and a bottle with the recycled content claim (i.e. 79%) than a bottle without this claim. However, these preferences dropped significantly when a price premium was attached to these packaging variations.
Originality/value
While most studies have relied on surveys and qualitative methods to investigate consumers’ reactions to sustainable packaging, our research uses an experimental method to assess how packaging impacts young consumers’ perceptions and choices. Additionally, by manipulating the presence of a price premium, this study uniquely investigates the impact of such a premium on young consumers' willingness to choose sustainable packaging.
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Alesia Gerassimenko, Laurens Defau and Lieven De Moor
The current literature on energy certificates shows that Energy Performance Certificate labels have an important effect on real estate prices. However, interestingly, the limited…
Abstract
Purpose
The current literature on energy certificates shows that Energy Performance Certificate labels have an important effect on real estate prices. However, interestingly, the limited studies that address the rental market find significantly lower price premiums than the sales market. The purpose of this paper is to add to this literature, by doing a comparative analysis of price premiums in the sales and rental market in Flanders (Belgium).
Design/methodology/approach
This study uses a hedonic regression model to analyze 177,670 real estate listings between 2016 and 2021. The data is provided by Immoweb – the largest online real estate platform in Belgium. The data set was divided in sold and rented properties: the authors evaluated 126,217 sales listings and 51,453 rent listings.
Findings
The results confirm that energy efficient properties generate a price premium, but that this premium is significantly larger in the sales market than in the rental market. In addition, the findings indicate that both investors and landlords could benefit strongly from renovating dwellings – especially when renovating from an F label to an A label.
Originality/value
Previous research focuses strongly on the sales market, although in many countries the rental market is similar in size and responsible from much energy consumption. Interestingly, the few studies that are addressing the rental market, find singificantly smaller price premiums than in the sales market. The findings add to this literature tradition and offer a comparative analysis of price premiums in the sales and rental market in Flanders. This allows us to not only show the similarities between both markets but also highlight the differences – creating valuable insights for academia, governments and real estate professionals.
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Kenneth Fu Xian Ho, Liudmila Tarabashkina and Fang Liu
Building on associative priming, anthropomorphism and biophilia theories, this study aims to explain that a natural–organic (that shows a natural object) and an anthropomorphised…
Abstract
Purpose
Building on associative priming, anthropomorphism and biophilia theories, this study aims to explain that a natural–organic (that shows a natural object) and an anthropomorphised natural–organic logo (that shows an anthropomorphised natural object) both act as primes and imbue specific product value perceptions, which subsequently influence willingness to pay a premium price when products have not been used by or are unfamiliar to consumers.
Design/methodology/approach
Two between-subjects experiments were conducted with different products (one with real, but unfamiliar to consumers brand and another with a fictitious brand). Structural equation modelling was used to test the hypotheses.
Findings
Experimental studies showed that natural–organic logos evoked stronger utilitarian (functional and economic) value perceptions, which triggered greater willingness to pay a premium price compared to anthropomorphised natural–organic logos. The effect of hedonic (emotional and novelty) values on willingness to pay a premium price was stronger when an anthropomorphised natural–organic logo was used.
Research limitations/implications
This research offers novel theoretical contributions highlighting the importance of careful logo design to imbue desired value perceptions when products have not been consumed or trialled.
Practical implications
Anthropomorphised natural–organic and natural–organic logos can provide different benefits to brand managers and can be used strategically to form desired value perceptions before products are consumed. Brands that wish to enhance premium pricing via hedonic values should consider using an anthropomorphised natural–organic logo. Natural–organic logos may be more suitable for brands that want to emphasise superior utilitarian values.
Originality/value
To the best of the authors’ knowledge, this research provides the first empirical assessment of the differential effects of the two forms of natural–organic logos on value perceptions and willingness to pay premium price.
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Kali Charan Sabat and Som Sekhar Bhattacharyya
The purpose of this study was to empirically investigate the role of e-service quality factors in predicting e-satisfaction. The study context was spirituality and well-being…
Abstract
Purpose
The purpose of this study was to empirically investigate the role of e-service quality factors in predicting e-satisfaction. The study context was spirituality and well-being over-the-top services. The e-service quality factors consisted of perceived functional completeness, perceived performance, perceived quality of interface and interaction, perceived quality of content and information and perceived quality of customer support. The study goal was to ascertain over-the-top services customers’ behavioral intention toward upgrading to premium subscription and the spread of electronic word of mouth.
Design/methodology/approach
This study was based upon the integrated stimulus-organism-response framework where e-service quality represented the stimulus, e-satisfaction the organism, behavioral intention and electronic word of mouth as the response. The study used a moderated-mediation approach with e-satisfaction as the mediator and the price value of a premium subscription as the moderator. To empirically test the model, the authors collected data from 312 spirituality and well-being over-the-top services users in India. Partial least squares-structured equation modeling was used to analyze the collected data.
Findings
The findings of the study supported the association between e-service quality factors and e-satisfaction while using spirituality and well-being over-the-top service. The results furthermore indicated that satisfied spirituality and well-being over-the-top customers were willing to upgrade to the premium subscription and spread favorable electronic word of mouth. The moderated-mediation study results revealed that the price value of premium subscriptions moderated the relationship between e-service quality and e-satisfaction but did not moderate the relationship between e-satisfaction and behavioral intention, and e-satisfaction and electronic word of mouth.
Research limitations/implications
This study offered a comprehensive stimulus-organism-response theoretical model by using the five e-service quality measurement factors as “stimuli” for motivating the internal state of spirituality and well-being over-the-top subscribers. This was toward sustained usage in over-the-top services subsequent to the end of the freemium period. Furthermore, in this study, both e-service quality theory and user satisfaction theory were integrated into the stimulus-organism-response model. This helped to better comprehend the impact of e-service quality factors in driving e-satisfaction among spirituality and well-being over-the-top service users.
Practical implications
This study revealed the significance of differentiating premium over-the-top subscriptions based on price value. To ensure a high level of e-satisfaction from a premium subscription, a greater emphasis on the e-service quality dimensions was required. This study provided insights to managers regarding the role of favorable electronic word of mouth in fostering effective customer acquisition.
Originality/value
This was one of the first studies which concurrently integrated perceived value of the premium subscription and e-satisfaction with customers’ behavioral intention and electronic word of mouth through the theoretical lens of stimulus-organism-response.
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Bing Lei, Yue Chang, Wei Liu and Saihua Shi
The purpose of this study is to investigate the influence of IP (Intellectual Property) on the intention for premium consumption of Generation Z, and to construct a theoretical…
Abstract
Purpose
The purpose of this study is to investigate the influence of IP (Intellectual Property) on the intention for premium consumption of Generation Z, and to construct a theoretical model of IP on the premium consumption of Generation Z. Based on the results of the study, it provides better marketing suggestions to merchants, and is an expansion of previous research on the consumption behavior of Generation Z.
Design/methodology/approach
This paper contains two empirical tests and one experimental analysis. First, this study crawl over 5,000 pieces of Generation Z’s consumption data from Poizon, an e-commerce platform and exclusive trending community for Generation Z. Second, this study designs a two-group online experiment to collect 292 valid data from members of the Generation Z. The authors use Stata software for multiple linear regression, t-tests, and ANOVA to test the hypotheses.
Findings
The results of the data analysis show that IP has a significant positive effect on the premium consumption intention of Generation Z, and the limited release strategy positively moderates the effect. Self-image congruence and social identification play mediating role in the influence of IP on Generation Z’s premium consumption.
Originality/value
First, this study finds a link between IP and commodity premiums, which is the first study to explore the effect of IP on commodity price changes. Second, this study is the first to examine the marketing science value of IP using a combination of empirical tests and experimental analysis. These fill research gaps. Finally, the mechanism of IP’s influence on Generation Z’s premium consumption is revealed, enriching the literature on Generation Z’s consumption behavior.
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Khaled Hamad Almaiman, Lawrence Ang and Hume Winzar
The purpose of this paper is to study the effects of sports sponsorship on brand equity using two managerially related outcomes: price premium and market share.
Abstract
Purpose
The purpose of this paper is to study the effects of sports sponsorship on brand equity using two managerially related outcomes: price premium and market share.
Design/methodology/approach
This study uses a best–worst discrete choice experiment (BWDCE) and compares the outcome with that of the purchase intention scale, an established probabilistic measure of purchase intention. The total sample consists of 409 fans of three soccer teams sponsored by three different competing brands: Nike, Adidas and Puma.
Findings
With sports sponsorship, fans were willing to pay more for the sponsor’s product, with the sponsoring brand obtaining the highest market share. Prominent brands generally performed better than less prominent brands. The best–worst scaling method was also 35% more accurate in predicting brand choice than a purchase intention scale.
Research limitations/implications
Future research could use the same method to study other types of sponsors, such as title sponsors or other product categories.
Practical implications
Sponsorship managers can use this methodology to assess the return on investment in sponsorship engagement.
Originality/value
Prior sponsorship studies on brand equity tend to ignore market share or fans’ willingness to pay a price premium for a sponsor’s goods and services. However, these two measures are crucial in assessing the effectiveness of sponsorship. This study demonstrates how to conduct such an assessment using the BWDCE method. It provides a clearer picture of sponsorship in terms of its economic value, which is more managerially useful.
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Properties with specific orientations are preferred in South Korea, depending on the real estate market. This preference is usually considered during property transactions and in…
Abstract
Purpose
Properties with specific orientations are preferred in South Korea, depending on the real estate market. This preference is usually considered during property transactions and in designing buildings. Despite the importance of property orientation, the magnitude of preference for favored orientation has rarely been empirically estimated in the literature. This study attempts to estimate the value of favored orientation in a quantitative manner and interpret the results.
Design/methodology/approach
Using a geographically weighted regression model, this study obtains nationwide property price data and estimates the strength of orientation preference, that is, the premium for favored orientation. Among the various property types, residential sites and forests were investigated because the orientation of these two property types is known to influence their sales prices in the Korean real estate market.
Findings
The results show that premiums for south-facing residential sites exist in the market, varying locally and ranging from zero to 13.2%, over residential sites with non-south orientations. The results for forests are mixed in that a south-facing forest commands a maximum of 33.1% premium in a certain region, over a forest with a non-south direction, while it also commands a maximum of 33.8% negative premium (discount) in another region, indicating significant local variations in premiums.
Originality/value
These findings are expected to be utilized in fields such as property valuation, house architecture and design.
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Ekaterina Nazarenko and Mahmoud Ibraheam Saleh
The purpose of this study is to develop an integrated conceptual framework to better understand the psychological pathways connecting consumer perceptions to purchasing intentions…
Abstract
Purpose
The purpose of this study is to develop an integrated conceptual framework to better understand the psychological pathways connecting consumer perceptions to purchasing intentions for premium sustainable products.
Design/methodology/approach
The study develops a conceptual model that theorizes relationships between consumer perceptions of a firm’s innovation, competitive advantage, sustainable practices and stakeholder orientation. It proposes that stakeholder orientation mediates the effects of these perceptions on consumers’ willingness to purchase premium sustainable products. Additionally, lifestyle is hypothesized as a moderator. The model advances knowledge through eight testable propositions.
Findings
The conceptual framework specifies indirect, mediated and moderated relationships that have not been fully captured by past literature. It theorizes that perceptions of a firm’s innovation, competitive advantage from sustainable practices and stakeholder orientation indirectly influence purchase willingness through the mediating role of stakeholder orientation. Lifestyle is proposed to moderate these relationships.
Originality/value
This conceptual model offers insights for cultivating consumer perceptions that strengthen a firm’s stakeholder image and endorsement of premium sustainable products. Its validated theoretical lens and propositions can provide strategic guidance for addressing the challenges of higher price points for sustainable products through capturing psychological drivers of values-based decision-making. Future empirical assessment is recommended to validate the specified relationships in the model.
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Ning Liu, Linyu Zhou, LiPing Xu and Shuwei Xiang
As the cost of completing a transaction, the green merger and acquisition (M&A) premium paid on mergers can influence whether the acquisition creates value or not. However…
Abstract
Purpose
As the cost of completing a transaction, the green merger and acquisition (M&A) premium paid on mergers can influence whether the acquisition creates value or not. However, studies linking M&A premiums to firm value have had mixed results, even fewer studies have examined the effect of green M&A premiums on bidders’ firm value. The purpose of this paper is to investigate whether and how green M&A premiums affect firm value in the context of China’s heavy polluters.
Design/methodology/approach
Using 323 deals between 2008 and 2019 among China’s heavy polluters, this paper estimates with correlation analysis and multiple regression analysis.
Findings
Green M&A premiums are negatively associated with firm value. The results are more significant when firms adopt symbolic rather than substantive corporate social responsibility (CSR) strategies. Robustness and endogeneity tests corroborate the findings. The negative relation is stronger when acquiring firms have low governmental subsidy and environmental regulation, when firms have overconfident management, when firms are state-owned and when green M&A occurs locally or among provinces in the same region. This study also analyzes agency cost as an intermediary in the relationship between green M&A premium and firm value, which lends support to the agency-view hypothesis.
Originality/value
This study provides systemic evidence that green M&A premiums damage firm value through agency cost channel and the choice of CSR strategies from the perspective of acquirers. These findings enrich the literature on both the economic consequences of green M&A premiums and the determinants of firm value and provide a plausible explanation for mixed findings on the relationship between green M&A premiums and firm value.
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