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1 – 10 of over 50000Weiling Zhuang, Barry Babin, Qian Xiao and Mihaela Paun
The purpose of this paper is to develop and empirically test a new framework that shows how different signals of movie quality along with key control variables affect consumers’…
Abstract
Purpose
The purpose of this paper is to develop and empirically test a new framework that shows how different signals of movie quality along with key control variables affect consumers’ post-consumption evaluations, critics’ reviews (CR), and movie box office revenues.
Design/methodology/approach
The data set consists of a sample of 332 movies released between 2000 and 2008. Regression was used to test the study hypotheses.
Findings
The results suggest that the three signals of movie quality exhibit different effects on three movie performance measures. Of the three cues, the peripheral quality signal is positive related to movie box, moviegoers’ evaluations (ME), and CR. Furthermore, star performance quality is positive related to both ME and CR. Surprisingly, overall quality signal does not display any influence on movie performances.
Research limitations/implications
The primary limitation is the use of cross-sectional study design and future research should apply for time-series technique to test the relationships between movie quality signals and movie performances.
Practical implications
The findings suggest that consumers and critics evaluate movie qualities based on various movie quality signals. Furthermore, the characteristics of movies also have mixed impacts on movie performances. Movie studios may take these findings into account to produce better movies.
Originality/value
This study proposes and empirically tests the impacts of three groups of movie signals – peripheral quality signal, star performance quality signal, and overall quality signal on motion picture performance. This study contributes to service quality literature and signal theory by categorizing different Academy Awards into three groups of quality signals and by empirically testing the proposed relationships.
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Subimal Chatterjee, Debi P. Mishra, Jennifer JooYeon Lee and Sirajul A. Shibly
Service providers often recommend unnecessary and expensive services to unsuspecting consumers, such as recommending a new part when a simple fix to the old will do, a phenomenon…
Abstract
Purpose
Service providers often recommend unnecessary and expensive services to unsuspecting consumers, such as recommending a new part when a simple fix to the old will do, a phenomenon known as overprovisioning. The purpose of this paper is to examine to what extent consumers tend to defer their decisions should they suspect that sellers are overproviding services to them and they cannot prevent the sellers from doing so (they lack personal control); and how proper market signals can mitigate such suspicions, restore personal control and reduce deferrals.
Design/methodology/approach
The paper conducts three laboratory experiments. The experiments expose the participants to hypothetical repair scenarios and measure to what extent they suspect that sellers might be overproviding services to them and they feel that they lack the personal control to prevent the sellers from doing so. Thereafter, the experiments expose them to two different market signals, one conveying that the seller is providing quality services (a repair warranty; quality signal) and the other conveying that the seller is taking away any incentives their agents (technicians) may have to overprovide services (the technicians are paid a flat salary; quantity signal). The paper examines how these quality/quantity signals are able to reduce overprovisioning suspicions, restore personal control and reduce decision deferrals.
Findings
The paper has two main findings. First, the paper shows a mediation process at work i.e. suspecting potential overprovisioning by sellers leads consumers to defer their decisions indirectly because they feel that they lack personal control to prevent the sellers from doing so. Second, the paper shows that the quantity signal (flat salary disclosure), but not the quality signal (warranty), is able to mitigate suspicions of overprovisioning, restore personal control and reduce decision deferrals.
Practical implications
The paper suggests that although buyers may rely on quality signals to assure them of superior service, these signals do not guarantee that the quantity of service they are receiving is appropriate. Therefore, sellers will have to send a credible quality signal and a credible quantity signal to the consumers if they wish to tackle suspicions about service overprovision and service quality.
Originality/value
The paper is original in two ways. First, the paper theorizes and tests a mediation process model whereby quality/quantity signals differentially mitigate overprovisioning suspicions, restore personal control and reduce decision deferrals. Second, the paper speaks to the necessity of expanding the traditional signaling literature, designed primarily to detect poor quality hidden in the products/services of lower-quality sellers, to include detecting/solving overprovisioning often hidden in the services provided by higher-quality sellers.
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Angelina Christie and Daniel Houser
The purpose of this paper is to test whether underpricing can serve as a signal of quality in a financing-investment environment and to compare it under the two institutions for…
Abstract
Purpose
The purpose of this paper is to test whether underpricing can serve as a signal of quality in a financing-investment environment and to compare it under the two institutions for financing offers that are commonly observed in corporate financial markets: take-it-or-leave-it offer (TLO) and the competitive bidding offer (CBO).
Design/methodology/approach
The research paper uses experimental economics methodology and laboratory experiments to investigate the research question.
Findings
The results suggest that underpricing can serve as a signal of quality but not sustainable as a repeat strategy. Over time, the high-quality firms converge to a pooling strategy rather than bearing the cost of signaling. Additionally, underpricing is lower under CBO than under TLO institution due to competitive bidding. Signaling under CBO institution may be less salient due to possible mimicking by the low-quality firms.
Originality/value
This paper presents a first experimental investigation of the underpricing-signaling hypothesis in a financing-investment environment under asymmetric information. The choice of institution in a financing environment produces qualitatively and strategically different behavior among firms and investors.
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Adrian Castro-Lopez, Laura Caso Fernández-Pacheco, Víctor Iglesias and Javier De la Ballina
This study aims to analyzes the effects of the consumer-generated media (CGM) boom on hotel managers’ investment behavior concerning quality signals.
Abstract
Purpose
This study aims to analyzes the effects of the consumer-generated media (CGM) boom on hotel managers’ investment behavior concerning quality signals.
Design/methodology/approach
Survival analysis has been conducted, considering the permanence/dropout of the Spanish hotels in a quality certification system during the 1998–2020 period.
Findings
The number of hotels certified since 2010 has been progressively falling, pointing to a decreasing interest of the managers in these certifications. Nevertheless, this is not a generalized phenomenon: the hotel characteristics and the number and nature of reviews about them in CGM significantly affect their permanence decisions in certification systems.
Practical implications
The findings provide several keys to optimizing investment management in quality signals considering hotel characteristics and their positioning in CGM.
Originality/value
To the best of the authors’ knowledge, this is the first study that analyses the relationship between the presence of hotels in CGM and their investments in alternative quality signals. The results will allow future investment decisions based on previous real business experiences.
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Xiang Fang, Bashar S. Gammoh and Kevin E. Voss
While previous research has shown a positive influence of a brand ally or a warranty, published research has not explored the effects of using multiple types of quality signals…
Abstract
Purpose
While previous research has shown a positive influence of a brand ally or a warranty, published research has not explored the effects of using multiple types of quality signals. The purpose of this paper is to explore the joint effect of a default‐independent signal (i.e. a brand ally) combined with a default‐contingent signal (i.e. a warranty) on the focal brand's evaluations.
Design/methodology/approach
This paper reports the findings of a 2 (ally: none vs one) × 2 (warranty: no vs yes) between‐subjects factorial design in which 174 subjects were randomly assigned to experimental conditions.
Findings
The study's findings indicate that, individually, both brand alliance and warranty were a significant signal of product quality. However, the use of multiple types of signals, as opposed to one signal, did not add incrementally to consumer's perceived quality evaluations of a focal brand. In addition, risk reduction mediated the effects of brand ally and/or warranty on the focal brand's evaluations.
Originality/value
Recently, researchers have started to explore the influence of multiple brand alliance signals on consumer evaluations of brand. However, only the same type of signal has been examined. Signaling theory suggests that other marketing mix elements are marketplace signals of quality. This study contributes to the literature by investigating the role of multiple types of quality signals in brand building.
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The purpose of this paper is to propose a framework to examine experiences of an information technology/information systems (IS) outsourcing service supplier as a signal of…
Abstract
Purpose
The purpose of this paper is to propose a framework to examine experiences of an information technology/information systems (IS) outsourcing service supplier as a signal of perceived service quality and to consider the moderating effects of information asymmetries and signal credibility.
Design/methodology/approach
Drawing on signaling theory, the paper integrates past experiences of an outsourcing service supplier, information asymmetries, signal credibility, perceived service quality, and purchase intention into a model. Questionnaires were collected in Taiwan, and partial least-squares technique was employed to test the model.
Findings
The results indicate that past experiences of an IS outsourcing supplier affect perceived service quality, which subsequently influences positively the intention to purchase IS outsourcing services. In addition, signal credibility moderates the relationship between the provider’s past experiences and perceived service quality, though information asymmetries do not have significant effect on the hypothesized moderating relationship.
Originality/value
This research enriches the extant literatures in signaling theory by demonstrating the few-mentioned IS outsourced suppliers’ experiences as a quality signal as well as in outsourcing contexts with signaling perspectives. The empirical findings validate the importance of dissemination and investment of past experiences for IS provider companies and give a cue of utilizing providers’ experiences to alleviate uncertainty when assessing IS service quality and purchasing outsourcing services for client companies.
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Frank Alpert, Beth Wilson and Michael T. Elliott
Examines the phenomenon of price signalling whereby consumer goodsmanufacturers attempt to signal higher quality via a higher price whenobjective product quality is, in fact, not…
Abstract
Examines the phenomenon of price signalling whereby consumer goods manufacturers attempt to signal higher quality via a higher price when objective product quality is, in fact, not demonstrably higher. Shows that higher price alone does not succeed in signalling higher quality, but that higher price accompanied by premium‐quality signals in the other elements of the marketing mix does succeed. Concludes that a premium pricing strategy cannot be successful if price is the only marketing variable emphasised and brand managers should think in terms of premium quality positioning that requires the right marketing mix.
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Wenbin Ni and Hongyi Sun
This study aims to examine the trustworthiness of internet-based quality signals (specifically webpages and before-sale services) from the perspective of interactivity by…
Abstract
Purpose
This study aims to examine the trustworthiness of internet-based quality signals (specifically webpages and before-sale services) from the perspective of interactivity by evaluating the associations between on-line signals of product quality and the off-line perceived quality of actual products.
Design/methodology/approach
Empirical data are collected from 261 Chinese female university students. Partial least squares structural equation modelling is used to test the conceptual model.
Findings
Both webpages and before-sale services are positively associated with off-line perceived quality, but only the quality of before-sale service has a direct association with customer satisfaction. Webpages and before-sale services are both trustworthy signals for indicating the quality of physical products; however, these signals provide different levels of trustworthiness.
Research limitations/implications
The interactivity perspective supplements information-economics theory in examining the trustworthiness of internet-based signals. A signal is a trustworthy indicator only if customers perceive a close relationship between the quality of the signal and the actual product quality.
Practical implications
On-line sellers should improve the reciprocity and controllability of communications from a buyer’s perspective and should pay more attention to the strategic role of on-line communication for improving customer service.
Originality/value
Researchers have evaluated the trustworthiness of on-line quality signals from an information-economics perspective. This study extends these previous studies by addressing the perspective of interactivity. Two types of product-quality signals, including webpages and before-sale services, are assessed in terms of their trustworthiness by examining how these signals relate to off-line perceived quality and customer satisfaction.
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Xiaopan Wang, Junpeng Guo, Yi Wu and Na Liu
Information asymmetry is an inevitable issue in e-commerce and largely hampers the development of online shopping. The purpose of this paper is to propose a model to investigate…
Abstract
Purpose
Information asymmetry is an inevitable issue in e-commerce and largely hampers the development of online shopping. The purpose of this paper is to propose a model to investigate the emotional content of online customer reviews, which are considered an efficient way to reduce information asymmetry, as a potential signal of product quality. The moderating effects of perceived empathy and cognitive effort are also explored on the basis of signaling theory.
Design/methodology/approach
A laboratory experiment with 120 subjects was used to empirically test the proposed research hypotheses. The subjects were randomly assigned to two treatment groups, with 60 subjects in each group. ANOVA, linear regression and binary logistic regression were used.
Findings
The emotional content of online customer reviews positively influences perceived product quality, which subsequently and positively affects purchase decisions. The emotional content of online customer reviews greatly influences perceived product quality when perceived empathy or cognitive effort is high.
Originality/value
This study is the first to extend extrinsic cues to emotional content on the basis of signaling theory and reveals the important role of emotional content of reviews. Moreover, the mediating effect of perceived product quality and the moderating effect of perceived empathy and cognitive effort illustrate the mechanism of the influence of emotional content on purchase decision. Findings demonstrate the positive signal of emotional content and provide important practical implications for sellers and customers.
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Frank Alpert, Beth Wilson and Michael T. Elliott
Examines the phenomenon of “price signalling”, wherebyconsumer goods manufacturers attempt to signal higher quality via ahigher price when objective product quality is, in fact…
Abstract
Examines the phenomenon of “price signalling”, whereby consumer goods manufacturers attempt to signal higher quality via a higher price when objective product quality is, in fact, not demonstrably superior. A study of two similar facial moisturizers showed that higher price alone did not succeed in signalling higher quality, but that higher price accompanied by premium‐quality signals in the other elements of the marketing mix (advertising, packaging, in‐store location) does succeed. To put it more generally, a “premium pricing strategy” cannot be successful if price is the only marketing variable emphasized. Brand managers should therefore think in terms of a “premium quality positioning” that requires the application of quality cues across the marketing mix.
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