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Article
Publication date: 1 August 2005

David Kuhlmeier and Gary Knight

In the growing field of electronic commerce there are various influences that can lead to online purchase decisions. An understanding of these influences can lead to…

Abstract

Purpose

In the growing field of electronic commerce there are various influences that can lead to online purchase decisions. An understanding of these influences can lead to greater electronic marketing effectiveness. The purpose of this article is to analyze and compare the effect of internet experience, proclivity of use, and perception of risk on the likelihood of purchasing online in three different countries.

Design/methodology/approach

The empirical study includes a survey‐based design in which responses to a questionnaire completed by 492 multinational consumers are analyzed in structural equations modeling using LISREL.

Findings

Results suggest a positive relationship between consumer usage and experience of the internet and the likelihood of making online purchases. There is further indication that the perceived risk of buying online has a negative effect on consumers' purchase likelihood. Moreover, perceived risk tends to partially mediate the relationships between internet usage and purchase likelihood, and between experience and purchase likelihood. Overall, results from a three‐country study indicate that extent of ongoing internet usage, long‐term experience, and perceived risk are important antecedents to purchasing goods via the internet.

Originality/value

In the growing field of electronic commerce there are various influences that can lead to online purchase decisions. The results suggest marketers should modify their e‐marketing strategies to address specific conditions in consumer behavior that arise at the cultural, socioeconomic, and other levels of individual countries. Differences in levels of experience in using the internet, proclivity to use the internet, and perceptions of risk regarding the internet, influence the likelihood to purchase goods online. Generally, managers should minimize the perception of risk that potential consumers feel online. Consumers in different countries process e‐commerce constructs differently, perhaps because of different rates of technology diffusion.

Details

International Marketing Review, vol. 22 no. 4
Type: Research Article
ISSN: 0265-1335

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Article
Publication date: 9 September 2014

Chinintorn Nakhata and Hsiao-Ching Kuo

This paper aims to examine how two non-price cues – consumer rating and number of purchased social coupons (SCs) – serve as risk-relievers for high and low variety-seekers…

Abstract

Purpose

This paper aims to examine how two non-price cues – consumer rating and number of purchased social coupons (SCs) – serve as risk-relievers for high and low variety-seekers and subsequently impact their purchase decision for SCs offered by unfamiliar brands.

Design/methodology/approach

Participants recruited from Amazon Mechanical Turk online panels participated in three scenario-based experiments.

Findings

Low (vs high) variety-seekers perceive greater risk and indicate lower likelihood of purchasing SCs offered by unfamiliar brands. Both high and low variety-seekers utilize the two non-priced cues – consumer rating and number of purchased SCs – as risk-relievers sequentially. That is, consumer rating constantly has a substantial impact on purchase likelihood for such SCs, whereas number of purchased SCs is influential only when consumer rating becomes ambiguous. Specifically, low (vs high) variety-seekers have a greater tendency to rely on number of purchased SCs in addition to consumer rating as a risk-reliever.

Originality/value

This paper examines cue utilization process in the SC context and suggests that high and low variety-seekers respond to the two non-price cues differently and sequentially. This provides theoretical insights on consumers’ cue utilization process and managerial insights regarding how managers could strategically handle the cues on SC provider websites. Further, this paper identifies situations where high variety-seekers may not prefer unfamiliar experiences and low variety-seekers may become more likely to embrace unfamiliar experiences.

Details

Journal of Product & Brand Management, vol. 23 no. 6
Type: Research Article
ISSN: 1061-0421

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Article
Publication date: 10 July 2017

Jiaxun He and Cheng Lu Wang

The purpose of this paper is to investigate the influence of incorporating Chinese elements in global brands on consumer purchase likelihood.

Abstract

Purpose

The purpose of this paper is to investigate the influence of incorporating Chinese elements in global brands on consumer purchase likelihood.

Design/methodology/approach

Six global brand products from three categories that utilized Chinese elements are used to test hypotheses. The Total Effect Moderation Model is used to analyze by combining moderation and mediation under a general analytical framework.

Findings

The results show that cultural compatibility has direct positive effect, in addition to an indirect effect (through local iconness) on purchase likelihood. Meanwhile, consumer cultural identity is found to moderate the impact of brand local iconness on purchase likelihood.

Practical implications

Evaluation and improvement of cultural compatibility in a global brand that incorporates Chinese elements is recommended for multinational marketers entering Chinese consumer markets. Meanwhile, marketers should pay attention to consumer cultural identity in the market segmentation process.

Originality/value

This paper takes a unique perspective to investigate whether and how global brands can succeed when adding local cultural elements to the product design, packaging and promotion in emerging markets like China.

Details

International Marketing Review, vol. 34 no. 4
Type: Research Article
ISSN: 0265-1335

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Article
Publication date: 7 January 2021

Felix Septianto and Nitika Garg

This study aims to investigate how gratitude, as compared to pride, can leverage the effectiveness of cause-related marketing, particularly a donation-based promotion…

Abstract

Purpose

This study aims to investigate how gratitude, as compared to pride, can leverage the effectiveness of cause-related marketing, particularly a donation-based promotion. Drawing upon the appraisal tendency framework, this study establishes the underlying process driving these emotion effects. It also examines the moderating role of product type (hedonic vs utilitarian).

Design/methodology/approach

Five studies are conducted to test the predictions. Importantly, this study examines the predicted emotion effects across different sources of affect (dispositional, incidental and integral), different subject populations (students and Amazon Mechanical Turk panel) and different product categories (water bottle, chocolate and printer), leading to robust and generalizable findings.

Findings

Results show that gratitude (vs pride) increases the likelihood of purchasing a product with a donation-based promotion. This effect is mediated by gratitude’s other-responsibility appraisal and, in turn, increased reciprocity concerns (a serial mediation). Further, this study finds that how the gratitude (vs pride) effect is attenuated when the product is hedonic (but not utilitarian) in nature.

Research limitations implications

Past study on emotion and cause-related marketing has emphasized the role of negative emotions such as guilt. This study provides empirical evidence on the potential benefit of using positive emotions such as gratitude in cause-related marketing.

Practical implications

The implications of this study can benefit marketers by highlighting the use of gratitude appeals in their cause-related marketing campaigns.

Originality/value

The findings of the present research are significant because they highlight the potential role of a discrete positive emotion – gratitude – in leveraging the effectiveness of cause-related marketing and establish the underlying process driving this effect.

Details

European Journal of Marketing, vol. 55 no. 6
Type: Research Article
ISSN: 0309-0566

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Book part
Publication date: 24 November 2010

Mahima Hada, Rajdeep Grewal and Gary L. Lilien

From the supplier firm's perspective, a referral is a recommendation from A (the referrer) to B (the potential customer) that B should, or should not, purchase from C (the…

Abstract

From the supplier firm's perspective, a referral is a recommendation from A (the referrer) to B (the potential customer) that B should, or should not, purchase from C (the supplier firm). Thus, as referrals are for a specific supplier firm, they should be viewed as part of the supplier firm's marketing and sales activities. We recognize three types of referrals – customer-to-potential customer referrals, horizontal referrals, and supplier-initiated referrals – that have critical roles in a potential customer's purchase decision. We develop the concept of referral equity to capture the net effect of all referrals for a supplier firm in the market. We argue that supplier firms should view referral equity as a resource that has financial value to the firm as it affects the firm's cash flows and profits. We offer strategies firms can use to manage referrals and build their referral equity and suggest a research agenda.

Details

Review of Marketing Research
Type: Book
ISBN: 978-0-85724-475-8

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Article
Publication date: 24 April 2009

Francesca Dall'Olmo Riley, Daniele Scarpi and Angelo Manaresi

This research aims to investigate consumers' likelihood of purchasing services online in two countries, the UK and Italy, which differ significantly in the population's…

Abstract

Purpose

This research aims to investigate consumers' likelihood of purchasing services online in two countries, the UK and Italy, which differ significantly in the population's uptake of internet shopping. Four influences are considered: service type, contact with service provider prior to online purchase, familiarity with service provider, and experience with internet purchasing.

Design/methodology/approach

For motor insurance and travel, respondents were asked to indicate the probability of purchasing on the internet the service of a provider they had used before, after a face‐to‐face contact with the provider, and also without prior contact with the service provider. Respondents were asked the same questions also for a provider they had not used before.

Findings

Differences in the relative uptake of internet shopping in the two countries did not alter the general results: a need for face‐to‐face contact with the service provider prior to online purchase and a preference for buying services from a familiar provider. Previous general experience of online shopping increases the likelihood of purchasing online.

Research limitations/implications

Future studies should examine a broader range of service categories and should consider travel products of different complexity.

Practical implications

Online/offline integration of service provision is very important, as consumers highly appreciate some form of human contact, prior to online purchase, even in countries where consumers are more used to shopping from home.

Originality/value

The paper provides a better understanding of the influences on consumers' likelihood of purchasing services online. Findings are generalized in two countries, with different uptake of internet shopping.

Details

Journal of Services Marketing, vol. 23 no. 2
Type: Research Article
ISSN: 0887-6045

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Article
Publication date: 7 April 2015

Nabil Tamimi and Rose Sebastianelli

The purpose of this paper is to present the results of an experiment in which participants view fictitious e-tailing web pages and indicate the likelihood of purchasing

Abstract

Purpose

The purpose of this paper is to present the results of an experiment in which participants view fictitious e-tailing web pages and indicate the likelihood of purchasing the products displayed by manipulating four attributes (familiarity with the e-tailer, product type, summary product review, and the number of customer reviews) in order to determine their relative importance.

Design/methodology/approach

Individual level conjoint models are estimated to determine the relative importance of the manipulated attributes. Furthermore, cluster analysis is used to group individuals into different segments.

Findings

The results suggest that the summary review star rating of the product and familiarity with the e-tailer are the two most important attributes. A three cluster solution is obtained and each segment is characterized by the derived relative influence each attribute has on likelihood of online purchase.

Originality/value

Understanding how consumers make choices among attributes especially when they are confronted with trade-offs has implications for e-tailers wishing to develop effective, targeted strategies for increasing the likelihood of online purchases.

Details

Internet Research, vol. 25 no. 2
Type: Research Article
ISSN: 1066-2243

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Article
Publication date: 23 March 2010

Ruth Yeung, Wallace Yee and Joe Morris

Consumer perception of risk and its impacts on purchasing behaviour are critical aspects of food safety. Consumer risk management strategies influence, and respond to, the…

Abstract

Purpose

Consumer perception of risk and its impacts on purchasing behaviour are critical aspects of food safety. Consumer risk management strategies influence, and respond to, the risk management strategies adopted by the food industry. This research, using poultry product as the focus, aims to identify the consumer risk-reducing strategies and their impact on perception of food safety-related risk and then on purchase behaviour.

Design/methodology/approach

By adopting a quantitative research paradigm with a quota sample of 200 respondents, a Structural Equation Modelling (SEM) model was built to assess the direct and indirect effects of strategies taken by consumers to reduce perceived risk and the consequences for purchase likelihood, utilising LISREL 8.30.

Findings

The research reveals brand, information and quality assurance as influential risk-reducing strategies to reduce consumer perception of food safety risk and subsequently to facilitate purchase likelihood during a period concerned about microbiological contamination in chicken meat.

Practical implications

The results provide guidance of both proactive and remedial actions that the food industry can follow and also help to evaluate the effectiveness of its marketing activities.

Originality/value

The research provides an insight in assisting government agencies and the food industry to develop appropriate food-related risk management strategies to serve the interests of both consumers and producers.

Details

British Food Journal, vol. 112 no. 3
Type: Research Article
ISSN: 0007-070X

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Article
Publication date: 10 July 2019

Meihua Zuo, Hongwei Liu, Hui Zhu and Hongming Gao

The purpose of this paper is to identify potential competitive relationships among brands by analyzing the dynamic clicking behavior of consumers.

Abstract

Purpose

The purpose of this paper is to identify potential competitive relationships among brands by analyzing the dynamic clicking behavior of consumers.

Design/methodology/approach

Consumer sequential online click data, collected from JD.com, is used to analyze the dynamic competitive relationship between brands. It is found that the competition intensity across categories of products can differ considerably. Consumers exhibit big differences in purchasing time of durable-like goods, that is, the purchasing probability of such products changes considerably over time. The local polynomial regression model (LPRM) is used to analyze the relationship between brand competition of durable-like goods and the purchasing probability of a particular brand.

Findings

The statistical results of collective behaviors show that there is a 90/10 rule for the category durable-like goods, implying that ten percent of the brands account for 90 percent market share in terms of both clicking and purchasing behavior. The dynamic brand cognitive process of impulsive consumers displays an inverted V shape, while cautious consumers display a double V shaped cognitive process. The dynamic consumers’ cognition illustrates that when the brands capture a half of the click volume, the brands’ competitiveness reaches to its peak and makes no significant different from brands accounting for 100 percent of the click volume in terms of the purchasing probability.

Research limitations/implications

There are some limitations to the research, including the limitations imposed by the data set. One of the most serious problems in the data set is that the collected click-stream is desensitized severely, restricting the richness of the conclusions of this study. Second, the data set consists of many other consumer behavioral data, but only the consumer’s clicking behavior is analyzed in this study. Therefore, in future research, the parameters brand browsing by consumers and the time of browsing in each brand should be added as indicators of brand competitive intensity.

Practical implications

The authors study brand competitiveness by analyzing the relationship between the click rate and the purchase likelihood of individual brands for durable-like products. When the brand competitiveness is less than 50 percent, consumers tend to seek a variety of new brands, and their purchase likelihood is positively correlated with the brand competitiveness. Once consumers learn about a particular brand excessively among all other brands at a period of time, the purchase likelihood of its products decreases due to the thinner consumer’s short-term loyalty the brand. Till the brand competitiveness runs up to 100 percent, consumers are most likely to purchase a brand and its product. That indicates brand competitiveness maintain 50 percent of the whole market is most efficient to be profitable, and the performance of costing more to improve the brand competitiveness might make no difference.

Originality/value

There are many studies on brand competition, but most of these research works analyze the brand’s marketing strategy from the perspective of the company. The limitation of this research is that the data are historical and failure to reflect time-variant competition. Some researchers have studied brand competition through consumer behavior, but the shortcoming of these studies is that it does not consider sequentiality of consumer behavior as this study does. Therefore, this study contributes to the literature by using consumers’ sequential clicking behavior and expands the perspective of brand competition research from the angle of consumers. Simultaneously, this paper uses the LPRM to analyze the relationship between consumer clicking behavior and brand competition for the first time, and expands the methodology accordingly.

Details

Industrial Management & Data Systems, vol. 119 no. 6
Type: Research Article
ISSN: 0263-5577

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Article
Publication date: 31 August 2010

Dwane H. Dean

Several studies have demonstrated an inverse relationship between experience in an activity and perceived risk for the individual in the activity. That is, as experience…

Abstract

Purpose

Several studies have demonstrated an inverse relationship between experience in an activity and perceived risk for the individual in the activity. That is, as experience increases, perceived risk decreases. This phenomenon has been labeled risk acculturation. The present study aims to examine prior rental car experience for its effect on estimated odds of an accident and likelihood to purchase rental car insurance.

Design/methodology/approach

A convenience sample of 19‐24 year old students read a car rental scenario within a questionnaire and responded to questions regarding past risk behavior, car rental experience, perceived risk, likelihood of insurance purchase, and related topics.

Findings

Compared to people who had not rented a car before, people with prior rental experience estimated the odds of an accident involving their vehicle to be significantly less likely (a risk acculturation effect). Also, subjects with prior rental car experience were significantly less likely to purchase a collision damage waiver and supplemental liability insurance. Of the variables in this study, only experience significantly predicted both types of insurance purchase. The two variables of estimated odds of an accident and knowledge of existing insurance coverage were not significant predictors for either type of insurance purchase.

Research limitations/implications

Risk acculturation is best documented through a longitudinal study rather than the present cross‐sectional investigation. Although a sample of young adults with limited driving experience was helpful in identifying respondents who had not rented a car before, the results of the present study may not generalize to the broader population of car drivers.

Originality/value

The present study may be the first to identify a risk acculturation effect within an insurance context. However, the effect of experience on insurance purchase is independent of that of risk acculturation, and further research is needed to clarify the mechanism of the effect.

Details

Young Consumers, vol. 11 no. 3
Type: Research Article
ISSN: 1747-3616

Keywords

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