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This chapter traces the development of the pricing research program of Kent Monroe, beginning with his doctoral dissertation and continuing to the present time. Drawing on psychophysics and adaptation-level theory the early research efforts concentrated on validating two important concepts relative to behavioral pricing research: reference price and acceptable price range. Then the behavioral pricing research program expanded to explore how the context of a purchase situation, including the structure of the prices available for judgment, influences buyers' price perceptions and willingness to buy. In the early years his research included pricing models and research on patronage behavior. Subsequently, concentrating primarily on behavioral pricing research, he began to integrate findings from the research program into examining how various sellers pricing strategies and tactics influence buyers' judgments and purchase decisions. These efforts led to the first edition of his book Pricing – Making Profitable Decisions published in 1979. The book was subsequently revised and expanded in 1990 and again in 2003.

Purpose – Despite the increasing use of formative measurement models in literature, little is known about potential consequences for substantive theory testing. Against this background, the aims of this chapter are (1) to highlight some problems that may arise when formative instead of reflective measures are used to test even simple theoretical models with covarianced-based methodologies, (2) to illustrate some approaches that might help overcome these problems, (3) to pinpoint potential interpretation difficulties of the results involving re-specified measurement models, and (4) to stimulate discussion on the implications for theory development when models are tested with formative measures.

Methodology/approach – Potential consequences of formative measurement models for theory testing are highlighted using an empirical study on consumer animosity as an illustrative example and applying covarianced-based structural equations modeling procedures for estimation purposes.

Findings – The empirical study shows (a) that some scaling options for the (composite) latent variable result in non-convergence problems, (b) that, assuming convergence, parameter estimates, standard errors, and significance levels vary depending on the scaling method used, and (c) that goodness-of-fit statistics cannot be used as diagnostic measures for the appropriateness of divergent results.

Originality/value of paper – The contribution of this chapter is two-fold: First, it shows that to enable estimation, it is often necessary to modify (i.e., expand) the original theoretical model in a conceptually reasonable manner and to do so before data collection. Second, it demonstrates that alternative scaling options for composite latent variables may result in inconsistent substantive conclusions. Consequently, the impact of formative measurement on theory testing is a critical topic and needs to receive further attention in future literature.

This study investigates how direct cultural interaction between a supplier country’s personnel and host country purchasing decision makers (HCNs) occurring during the exporting of professional, high-contact services can help shape the latter’s perception of the image of the supplier country and their willingness to buy its services or products. The article develops a theoretical framework that identifies those key drivers and their relationship.

This is a conceptual paper based on a comprehensive review of the literature complemented by a pilot study with offshore executive MBA programs.

A conceptual model is developed with a series of testable propositions.

The framework should help companies and organizations involved in the exporting of such services devise programs to bolster the image of their country as a provider of these and other services and products.

Trade in services is becoming a lifeline for many developed countries that have seen their manufacturing industries relocate to low labor-cost countries. Thus, it is imperative for these countries to bolster their COO to gain competitive advantage. Developing countries can also use such a framework as a means of improving the overall image of their own country and its products.

This research complements those rare studies done on the acculturation of HCNs by examining, for the first time, this process in the context of the exporting of professional services and on how it can lead to changes in the perception of the HCNs vis-à-vis the image of the supplier country.

In this chapter, we draw on social science theoretical and empirical literatures to discuss the factors that influence buying and using an electric vehicle (EV), as well as how adopting an EV can impact on other travel choices or broader sustainability behaviours. We provide an overview of theories of technology adoption, which expose the interplay of individual, technological, and societal factors that dictate how rapidly a technology will spread throughout society. From the empirical literature, we show that far from being a purely economic or pragmatic decision, choosing an EV is also deeply grounded in social, moral and personality factors, such as self-presentation, norms and values, and appetite for risking the novel. Furthermore, since running an EV is not the same as running an internal combustion engine vehicle (ICEV), we explore how adopters adjust their behaviour to the technology, and also how EV ownership may trigger or undermine broader shifts in lifestyle required to achieve climate change and other sustainability goals. We therefore provide a critical reflection on the drivers, barriers, and behavioural implications of choosing an EV.

The overall goal of this chapter is to critique the purported business case for corporate social responsibility (CSR) and sustainability, which persists as a major contentious force in convincing companies to become more sustainable. Extant literature on sustainability, CSR and Socially Responsible Investments (SRIs) generally tends to focus on company perspectives decision-making and approaches. This chapter considers an alternative and under-developed perspective and examines CSR from a consumer/public perspective situated in a German context.

This chapter builds a comprehensive literature review and employs a research philosophical point of view underpinned by a social constructionist stance. It examines indicators and attitudes towards sustainability and sustainable consumption together with socially responsible investments and considers whether the buying patterns of German consumers may serve as a rationalisation for a potential business case for CSR and sustainability.

While the awareness of consumers of CSR in Germany towards sustainability tends to be generally relatively prima facie high, it is nevertheless noticeable that German consumers are predominately reluctant to pay a price premium for product possessing a superior sustainability performance. From the alternative lens of SRIs, rather than being a replete and widespread phenomenon, they are still largely a niche market. For these reasons, the potential for the existence of a business case for sustainability, CSR and SRIs tends in reality to be low, in spite of some populist or survey reports and perceptions.

The chapter links a consumer perspective with the business case for CSR. Moreover, it focuses on the German context which tends to be underrepresented in international research.

This chapter concentrates on sales negotiation and reveals that negotiating agreements on goods and services among the Igbo traders involves demystifying many complexities – such as nature of persuasion, trust and communication patterns between traders, among other concerns. To aid our understanding, the authors surveyed three Igbo-dominated markets including Computer Village, Ikeja – dealing in the sales of phone accessories; Tejuosho Market – dealing in the sales of clothing materials; and Ojuelegba Market – dealing in the sales of vehicle spare parts. The authors concluded that the negotiation pattern and approach adopted by the Igbo trader often depends on several variables, including the product, the market, the buyer, the individual trader and other invisible circumstances surrounding the bargaining process. When negotiation breakdown arises, the Igbo traders have a well thought-out strategy that can be adopted to address the situation and persuade future bargains.

The long interview is an intensive questioning of informants selected for their special knowledge, experiences and insights (or ignorance) of the topic under study. The objectives of the long interview include learning the thinking, feeling, and doing processes of the informants, including an understanding of the informants' worldviews of the topic under study in their own language. The chapter compares the strengths and weaknesses of the long interview to other primary data collection methods. The chapter describes a research application of the long interview in integrated marketing. The study was designed to (a) learn about the rich complexities in the lives of household gardeners buying and using seeds plants after responding to direct marketing appeals and (b) resolve two conflicting “theories-in-use” of how and why different customer types purchase products. These competing theories were proposed by different executives in the firm sponsoring the study. The development and critical testing of competing theories-in-use are described. This chapter reports a study to learn the behavior of five customer types. The results include thick descriptions of the processes of buying and using seeds and plants purchased through direct marketing offers and store visits.

This chapter reviews marketing scholarship on environmental sustainability. The literature covers several themes of both consumer behavior and firm-level topics. Consumer issues include their assessment of efficacy and the extent to which they are aware and sensitive to environmental issues. Numerous interventions and marketing appeals for modifying attitudes and behaviors have been tested and are reported. Consumers and business managers have both been queried regarding attitudes of recycling and waste. Firm-level phenomena are reflected, including how brand managers can signal their green efforts to their customers, whether doing so is beneficial, all in conjunction with macro pressures or constraints from industry or governmental agencies. This chapter closes with a reflection on the research.