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1 – 10 of 512Thomas Koerber and Holger Schiele
This study aims to examine decision factors for global sourcing, differentiated into transcontinental and continental sourcing to obtain insight into locational aspects of…
Abstract
Purpose
This study aims to examine decision factors for global sourcing, differentiated into transcontinental and continental sourcing to obtain insight into locational aspects of sourcing decisions and global trends. This study analyzed various country perceptions to reveal their influence on sourcing decisions. The country of origin (COO) theory explains why certain country perceptions and images influence purchasing experts in their selection of suppliers.
Design/methodology/approach
This study used a two-study approach. In Study 1, the authors conducted discrete choice card experiments with 71 purchasing experts located in Europe and the USA to examine the importance of essential decision factors for global sourcing. Given the clear evidence that location is a factor in sourcing decisions, in Study 2 the authors investigated purchasers’ perceptions and images of countries, adding country ranking experiments on various perceived characteristics such as quality, price and technology.
Findings
Study 1 provides evidence that the purchasers’ personal relationship with the supplier plays a decisive role in the supplier selection process. While product quality and location impact sourcing decisions, the attraction of the buying company and cultural barriers are less significant. Interestingly, however, these factors seem as important as price to respondents. This implies that a strong relationship with suppliers and good quality products are essential aspects of a reliable and robust supply chain in the post-COVID-19 era. Examining the locational aspect in detail, Study 2 linked the choice card experiments with country ranking experiments. In this study, the authors found that purchasing experts consider that transcontinental countries such as Japan and China offer significant advantages in terms of price and technology. China has enhanced its quality, which is recognizable in the country ranking experiments. Therefore, decisions on global sourcing are not just based on such high-impact factors as price and availability; country perceptions are also influential. Additionally, the significance of the locational aspect could be linked to certain country images of transcontinental suppliers, as the COO theory describes.
Originality/value
The new approach divides global sourcing into transcontinental and European sourcing to evaluate special decision factors and link these factors to the locational aspect of sourcing decisions. To deepen the clear evidence for the locational aspect and investigate the possible influence of country perceptions, the authors applied the COO theory. This approach enabled authors to show the strong influence of country perception on purchasing departments, which is represented by the locational effect. Hence, the success of transcontinental countries relies not only on factors such as their availability but also on the purchasers’ positive perceptions of these countries in terms of technology and price.
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Ritika Bhatia, Anil K. Bhat and Jyoti Tikoria
This study aims to understand the lapse behavior of life insurance policyholders. Despite being accessible for nearly two centuries, only a small fraction of individuals purchase…
Abstract
Purpose
This study aims to understand the lapse behavior of life insurance policyholders. Despite being accessible for nearly two centuries, only a small fraction of individuals purchase such policies and many of those who do let them lapse. The belief hypothesis model (BHM) is introduced to elucidate the correlation between policyholders' beliefs and their decisions regarding life insurance lapses.
Design/methodology/approach
BHM establishes a comprehensive linkage between core beliefs, external data and the lapse behavior exhibited by policyholders. To derive policyholders’ core beliefs about life insurance lapses, the authors conducted a semistructured, in-depth interview with 42 policyholders and 11 insurance advisors, using a grounded theory approach with zero-order, first-order and second-order coding.
Findings
The study's findings reveal that policy lapsation is influenced by various factors such as policyholders' beliefs about life insurance, process-related attitudes, trust in insurers and advisors and personal financial viewpoints. Policyholders who consider life insurance unnecessary or misunderstand its purpose are likelier to lapse their policies. Cumbersome documentation processes and technical issues also contribute to policy lapsation, emphasizing the significance of simplified procedures. Trust in insurers and advisors, personal financial literacy and payment preferences influence policy lapsation.
Practical implications
The findings of this research can be practically applied by companies to improve customer retention and by regulatory bodies to encourage policyholders to honor their insurance commitments.
Originality/value
Distinguishing itself from conventional hypotheses-driven and factor-centric models, BHM integrates consumer beliefs, thus enriching comprehension and decision-making insights.
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Iza Gigauri, Maria Palazzo, Simona Andreea Apostu and Alfonso Siano
The purpose of this study is to explore the awareness, perception and attitude of consumers from Georgia toward smart, active and intelligent packaging of food products.
Abstract
Purpose
The purpose of this study is to explore the awareness, perception and attitude of consumers from Georgia toward smart, active and intelligent packaging of food products.
Design/methodology/approach
This study is based on a quantitative research method using a survey questionnaire tool to gather data from consumers in Georgia.
Findings
The scope of the sample is restricted to only one developing country. Yet, the research results are still significant in creating knowledge about innovative food packaging from different country contexts and to understanding the acceptance of intelligent active packaging by consumers.
Research limitations/implications
Intelligent packaging facilitates companies with their sustainability efforts by reducing waste and environmental impact. It increases the desirability of products as responds to customer demands and leads to consumer satisfaction. Intelligent packaging can increase trust in bioproducts; for example, it is possible to track and check or monitor the origin of a product and prove that the product producer has really manufactured a bioproduct.
Originality/value
The study contributes to the discussion of the applicability and use of packaging with enhanced features in the food industry. In this respect, the performed pilot study fills the gap in the packaging literature by investigating consumers’ perspectives on intelligent packaging in Georgia – a non-EU, post-soviet, developing country.
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Subhash Chander Arora and Vinod Kumar Singh
The study aims to fulfil two objectives, namely, to explore what dimensions comes into play in the current consumer EV purchase behaviour based on relevant literature identified…
Abstract
Purpose
The study aims to fulfil two objectives, namely, to explore what dimensions comes into play in the current consumer EV purchase behaviour based on relevant literature identified in the past and to find out whether there are other reasons that are peculiar to the Indian automobile market which influenced consumers to adopt this eco-friendly technology.
Design/methodology/approach
Mixed method approach for collecting the primary data was used. The study was conducted in five cities across India, through a questionnaire administered to 266 existing EV owners using judgemental sampling, that included dimensions as to what made them purchase EVs (any variant whether hybrid or battery) and encouraged their green behaviour. Moreover, the survey also took care of gathering other motivational constructs that may have played a significant role in the Indian EV market. To take care of this, use of single open-ended question was done. Statistical techniques like exploratory factor analysis (EFA) and Partial Least Square-Structural Equation Modelling (PLS-SEM) version 4.0 were performed to gain meaningful insights from this investigation.
Findings
Based on our analysis, EV purchase behaviour in the Indian market could be explained by six configurational paths identified in conceptual framework of this study. The data analysed revealed long-term operational benefits or relative advantages, trialability or prior driving experience and positive attitude towards EVs playing an important role towards EV purchase decision followed by environmental concern, social norms and personal values of Indian consumers. Besides, several other factors were identified in open comments like favourable government policies, brand consciousness, compatibility and functional benefits in terms of comfortable and noiseless driving which tend to drive the decision of Indian consumers towards buying EVs. The identification of these motivations can help policymakers in targeting the customer market accordingly.
Research limitations/implications
Although the study is restricted by its scope of sampling criteria, yet is distinct in its methodological approach and thereby adds value to existing literature on marketing and diffusion of EVs. The study explores the untapped gap in the current literature by helping identify reasons on the basis of which consumers made their choices of different EVs. Instead of analysing the potential antecedents of EV uptake, the study brings to light the actual reasons of EV purchase behaviour in the context of an emerging economy like India. That is to say, the horizon of EV motivations spans across technological, individual and regulatory attributes in the Indian automobile market.
Practical implications
This study is relevant and fulfils the underlying gap in the existing literature related to actual motivations that consumers look for before buying a high involvement product such as EVs. The results can be beneficial for marketers to design effective marketing strategies from the perspective of consumers. Promotional strategies addressing ease of using EVs and how battery technology is better than before needs to be clearly communicated by the marketers. Consumer education is necessary, in this regard, to make people aware of the rising air pollution levels. They have to be made understood the real advantages of owning EVs and how these non-conventional vehicles are far better when compared to traditional cars. In a nutshell, the study underscored potential determinants or reasons that made Indian consumers to go for EVs, based on statistically significant evidences which can be crucial for stakeholders operating in the Indian EV industry.
Social implications
The study has important implications for members of the community. By sacrificing their egoistic tendencies or individual preferences for energy intensive products such as ICE based vehicles, people can imbibe altruistic orientation and can contribute to the collective benefit of all by shifting towards energy rich vehicles powered by electricity. This is necessary to achieve the broader goals of sustainable development and to curtail the rising climate change phenomenon.
Originality/value
The study applied both quantitative (deductive) and qualitative (inductive) approach to study into the reasons for consumers’ purchase motivations towards electric cars. Taking a distinct methodological approach, the study enhances the knowledge on EVs by asking consumers to comment in their own words as to why they purchased EVs. This was necessary so as to better explore the needs of the Indian automobile market and which factors govern the purchase of EVs in domestic market. Past literature majorly focused on purchase intention towards EVs but this study in unexampled and analysed the purchase behaviour towards EVs. It should be noted that our investigation reveals the complexity of EV purchase reasons than those identified in past literature and it adds to the current pool of literature on EVs by explaining factors with unrivalled illustrative power.
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Ming Xu, Qiang Xu, Sheng Wei, Xufei Gu and Furong Liu
The increasing focus of consumers on health and environmental sustainability continues to drive the demand for organic food. Despite the recognized importance of health and…
Abstract
Purpose
The increasing focus of consumers on health and environmental sustainability continues to drive the demand for organic food. Despite the recognized importance of health and environmental concerns, the differential impact of these factors on organic food purchasing decisions is evident, indicating the presence of moderating variables. This investigation attempts to delineate these contingencies within the realms of socio-environmental and individual factors, paying particular attention to subjective norms, uncertainty, and egoistic values.
Design/methodology/approach
Using the convenience sampling method, the primary data sample was collected by a professional market research consulting firm and included 1876 usable respondents from China. Hierarchical multiple regression analysis was utilized to verify the model and test the relationships between the constructs.
Findings
The results indicated that the path from environmental concern to organic food purchase intention was significantly influenced by subjective norms and uncertainty, both of which enhance this relationship. In contrast, egoistic values appeared to dampen this effect. Uncertainty also emerged as a key factor in the link between health concerns and organic food purchase intention, albeit with an opposite impact, weakening the relationship.
Practical implications
This study provides useful insights for academics and marketers to understand the complex phenomenon of organic consumer behavior. This result indicates that marketers can target reference groups to develop organic food marketing strategies.
Originality/value
Few studies have proposed and validated a model with these moderating factors collectively to study the purchase intention of organic food consumers in China.
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Jung-Chieh Lee and Liang nan Xiong
Compared to traditional (domestic) e-commerce consumers, cross-border electronic commerce (CBEC) consumers may face greater information asymmetry in the CBEC purchase process…
Abstract
Purpose
Compared to traditional (domestic) e-commerce consumers, cross-border electronic commerce (CBEC) consumers may face greater information asymmetry in the CBEC purchase process. Given this background, however, the literature has paid limited attention to the informational antecedents that influence consumers' perceptions of transaction costs and their CBEC purchase intentions. To fill this gap, this study integrates the elaboration likelihood model (ELM) and transaction cost theory (TCT) to develop a model for exploring how product (website informativeness, product diagnosticity and website interactivity as the central route) and external (country brand, website policy and vendor reputation as the peripheral route) informational antecedents affect consumers’ evaluations of transaction costs in terms of uncertainty and asset specificity and their CBEC purchase intentions.
Design/methodology/approach
This study employs a survey approach to validate the model with 766 Generation Z CBEC consumers based on judgment sampling. The partial least squares (PLS) technique is adopted for data analysis.
Findings
The results show that all the proposed central and peripheral informational antecedents reduce consumers’ perceptions of uncertainty and asset specificity, which in turn negatively influences their CBEC purchase intentions.
Originality/value
Through this investigation, this study increases our understanding of how product and external informational antecedents affect consumers’ evaluations of transaction costs, which subsequently determine their CBEC purchase decisions. This study offers theoretical contributions to existing CBEC research and has practical implications for CBEC organizations and managers.
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Juri Matinheikki, Katie Kenny, Katri Kauppi, Erik van Raaij and Alistair Brandon-Jones
Despite the unparalleled importance of value within healthcare, value-based models remain underutilised in the procurement of medical devices. Research is needed to understand…
Abstract
Purpose
Despite the unparalleled importance of value within healthcare, value-based models remain underutilised in the procurement of medical devices. Research is needed to understand what factors incentivise standard, low-priced device purchasing as opposed to value-adding devices with potentially higher overall health outcomes. Framed in agency theory, we examine the conditions under which different actors involved in purchasing decisions select premium-priced, value-adding medical devices over low-priced, standard medical devices.
Design/methodology/approach
We conducted 2 × 2 × 2 between-subjects scenario-based vignette experiments on three UK-based online samples of managers (n = 599), medical professionals (n = 279) and purchasing managers (n = 449) with subjects randomly assigned to three treatments: (1) cost-saving incentives, (2) risk-sharing contracts and (3) stronger (versus weaker) clinical evidence.
Findings
Our analysis demonstrates the harmful effects of intra-organisational cost-saving incentives on value-based purchasing (VBP) adoption; the positive impact of inter-organisational risk-sharing contracts, especially when medical professionals are involved in decision-making; and the challenge of leveraging clinical evidence to support value claims.
Research limitations/implications
Our results demonstrate the need to align incentives in a context with multiple intra- and inter-organisational agency relationships at play, as well as the difficulty of reducing information asymmetry when information is not easily interpretable to all decision-makers. Overall, the intra-organisational agency factors strongly influenced the choices for the inter-organisational agency relationship.
Originality/value
We contribute to VBP in healthcare by examining the role of intra- and inter-organisational agency relationships and incentives concerning VBP (non-) adoption. We also examine how the impact of such mechanisms differs between medical and purchasing (management) professionals.
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Yavuz Selim Balcioglu, Bülent Sezen and Ali Ulvi İşler
This study aims to explore and segment consumer preferences for electric and hybrid vehicles in Germany, Sweden, the Netherlands and Turkey, focusing on understanding the various…
Abstract
Purpose
This study aims to explore and segment consumer preferences for electric and hybrid vehicles in Germany, Sweden, the Netherlands and Turkey, focusing on understanding the various factors that influence consumer decisions in these markets.
Design/methodology/approach
Using latent class analysis (LCA) on data collected through online surveys and discrete choice experiments, this research categorizes consumers into distinct segments. The approach allows for a nuanced understanding of how various factors such as income level, fuel cost, age, CO2 emissions, purchase price, vehicle range, policy policies and environmental concerns interact with shape consumer preferences.
Findings
The analysis uncovers significant heterogeneity in consumer preferences for electric and hybrid vehicles across Germany, Sweden, the Netherlands and Turkey, revealing four key segments: “Eco-Driven Innovators,” “Value-Focused Pragmatists,” “Tech-Savvy Early Adopters” and “Reluctant Traditionalists.” “Eco-Driven Innovators” prioritize environmental benefits and are less sensitive to price, demonstrating a strong inclination toward vehicle CO2 emissions and policy policies. “Value-Focused Pragmatists” weigh economic factors heavily, showing a sharp interest in fuel costs and purchase prices but are open to considering electric and hybrid vehicles if they present clear long-term savings. Technology-savvy early adopters are attracted by the latest technological advancements in vehicles, regardless of the type, and are motivated by factors beyond just environmental concerns or cost savings. Lastly, “Reluctant Traditionalists” exhibit minimal interest in electric and hybrid vehicles due to concerns over charging infrastructure and upfront costs. This detailed segmentation illustrates the diverse motivations and barriers influencing consumer choices, from governmental policies and environmental concerns to individual financial considerations and technological appeal.
Originality/value
This study stands out for its pioneering application of LCA to dissect the complexity of consumer preferences for electric and hybrid vehicles, a methodological approach not widely used in this research domain. Using LCA, the authors are able to uncover nuanced consumer segments, each with distinct preferences and motivations, providing a depth of insight into market dynamics that traditional analysis methods may overlook. This approach enables a more granular understanding of how diverse factors – ranging from environmental concerns to economic considerations and technological attributes – interact to shape consumer choices in different countries. The findings not only fill a critical gap in the existing literature by mapping the intricate landscape of consumer preferences, but also offer a novel perspective on strategizing market interventions. Therefore, the application of LCA enriches the discourse on sustainable transportation, offering stakeholders, manufacturers, policymakers and researchers – a refined toolkit for navigating the evolving market dynamics and fostering the adoption of electric and hybrid vehicles.
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Ye Bai, Xinlong Li and Hongye Sun
In online purchase for dietary supplements, due to the lack of professional advice from pharmacists, electronic word-of-mouth (eWOM) has become an important source of information…
Abstract
Purpose
In online purchase for dietary supplements, due to the lack of professional advice from pharmacists, electronic word-of-mouth (eWOM) has become an important source of information for consumers to make purchase decisions. How can firms use eWOM resources to increase sales? The purpose of this paper is to provide practical methods for firms by exploring the effects of eWOM on sales and developing a sales prediction model based on eWOM.
Design/methodology/approach
The data came from 120 dietary supplements on Tmall.com. The authors extracted the product sales as dependent variable and 11 eWOM factors as independent variables. The multicollinearity was tested by using variance inflation factor and least absolute shrinkage and selection operator. The multiple linear regression was used to investigate the effects of eWOM on sales. Drawing on white- and black-box approaches, six models were developed. Comparing the root mean square error, the authors selected the optimal one as their target sales prediction model.
Findings
Product ratings, total reviews and favorites are positively and strongly associated with sales. Questions and additional reviews have negative effects on sales. The random forest model has the best prediction performance.
Originality/value
The research focuses on eWOM of dietary supplement. First, the authors show that easily accessible eWOM from online platforms can be used to evaluate effects and predict sales. Second, the authors introduce white- and black-box models through machine learning to assess eWOM. Firms could use the described models to foster their marketing initiatives.
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Suhail Mohammad Ghouse, Rishabh Shekhar, Mohammed Ali Bait Ali Sulaiman and Afshan Azam
This study aims to examine millennial consumers’ intentions towards purchasing eco-friendly products in the emerging Arab nation of Oman, focusing on the moderating role of…
Abstract
Purpose
This study aims to examine millennial consumers’ intentions towards purchasing eco-friendly products in the emerging Arab nation of Oman, focusing on the moderating role of eco-labelling (EL).
Design/methodology/approach
Environmental knowledge (EK) and environmental concern (EC) are integrated into the theory of planned behaviour (TPB) framework as independent variables, along with EL as a moderating variable. The data was collected through a self-administered survey and consisted of 705 random responses that was tabulated and analysed through the structural equation modelling technique.
Findings
ECs, subjective norms (SNs) and perceived behavioural control (PBC) significantly influence consumer attitudes towards green eco-friendly products. Consumers’ EK and attitudes positively influence the purchase intention (PI) to make green purchases. SNs and PBC substantially influence consumer attitudes towards adopting green products. However, the findings reveal a non-significant moderating influence of EL on the relationship between EC and PI for millennial Omani consumers.
Research limitations/implications
The findings are limited to only one Arab country, Oman, which limits the scope of the study. This study contributes to the TPB by using additional dimensions to examine the green purchasing behaviour of millennials.
Practical implications
Marketers can use these insights to develop strategies that emphasise the environmental benefits of products, leverage social influences and empower consumers to make environmentally conscious choices. Incorporating EL and green packaging can enhance the visibility and attractiveness of green products.
Social implications
Promoting environmental education, awareness campaigns and policy interventions that highlight the importance of eco-friendly product choices can foster more sustainable consumption patterns among Arab consumers.
Originality/value
To the best of the authors’ knowledge, this is the first study to examine the green PIs of millennials in an Arab context, specifically focusing on the moderating role of EL.
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