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Article
Publication date: 23 August 2011

Rajesh Chandrashekaran

This paper aims to investigate how consumers adjust their price expectations for brands in response to previously encountered prices. The effects of two distinct components of…

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Abstract

Purpose

This paper aims to investigate how consumers adjust their price expectations for brands in response to previously encountered prices. The effects of two distinct components of price history, focal and contextual, are examined. The focal component represents the role of a brand's own previous price(s) in determining future price expectations. In contrast, the contextual component represents the impact of the prices of previously considered competing brands.

Design/methodology/approach

A total of 60 subjects were enrolled to participate in a longitudinal, quantitative, survey‐based study that required them to provide information on brand perceptions, price expectations, brand consideration and choice.

Findings

Empirical comparison of several model formulations confirms that both components are crucial in explaining how consumers adjust their price expectations in response to the prices of considered brands. Consistent with a wide body of research, a brand's own previous price exerts the greatest influence on price expectations. However, the extent to which contextual prices are assimilated depends on the composition of consumers' consideration sets. Avenues for future research and implications for brand pricing and positioning are discussed.

Originality/value

The results offer several unique perspectives that stand out from (and build further on) previous research. First, although previous research has examined the effects of competing brands' current prices on brand choices, it has not incorporated the prices of competing brands that may have been observed on previous shopping occasions. Second, measures and assesses the perceived variability within the consumers' consideration sets influences the impact of the contextual component on a brand's current reference price.

Details

Journal of Product & Brand Management, vol. 20 no. 5
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 13 November 2017

Moon-Yong Kim and Byung Il Park

The purpose of this paper is to examine the effect of country of origin (COO) information as an important/salient categorical attribute on choice context effects. Specifically…

1956

Abstract

Purpose

The purpose of this paper is to examine the effect of country of origin (COO) information as an important/salient categorical attribute on choice context effects. Specifically, this research examines whether the introduction of a unique COO in the choice set will have a differential influence on context effects depending on the relative position of the third option (the asymmetrically dominated option vs the extreme option).

Design/methodology/approach

Five experiments were conducted in this research. Study 1 had a 2 (set size: two-option core set vs three-option asymmetric dominance set)×2 (competitor’s COO: common vs unique) between-subjects design. Study 2 had a 2 (set size: two-option core set vs three-option extreme option set)×2 (competitor’s COO: common vs unique) between-subjects design. To address the robustness of the effects, Studies 3-5 replicated the results of Studies 1 and 2. The data were analyzed by χ2 tests and logistic regression analyses.

Findings

The current research demonstrates that the attraction effect is attenuated by the introduction of a unique COO information in the competing option, whereas the tendency to prefer a middle option is not significantly affected.

Originality/value

The present research adds to the current understanding and the practical relevance of COO effects and context effects in marketing by examining the impact of COO as an important/salient categorical attribute on context effects.

Details

International Marketing Review, vol. 34 no. 6
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 26 April 2019

Christian Laesser, Jieqing Luo and Pietro Beritelli

Most state-of-the-art approaches for the analysis of the process of travel decision-making follow Woodworth’s neo-behaviouristic S–R (stimulus–response) or S–O–R…

Abstract

Purpose

Most state-of-the-art approaches for the analysis of the process of travel decision-making follow Woodworth’s neo-behaviouristic S–R (stimulus–response) or S–O–R (stimulus–organism–response) model. However, within this model, scholars primarily focus on the S–R relationship, investigating specific decisions by describing or explaining an outcome as the result of an input of several stimuli. There is a lack of investigation into the “O” dimension of the S–O–R model. This paper aims to contribute towards closing of this gap by conceptually and holistically expanding existing models with new perspectives and components.

Design/methodology/approach

The authors base the conceptual process on a subjective/interpretative research paradigm, by combining outcomes from different theories and concepts into a new, more holistic approach; and challenging this approach by seeking counterarguments as well as supportive arguments at three conferences and workshops.

Findings

The paper expands the body of literature by positing a generic conceptual operationalization model focusing on the organism (“O”) domain of decision-making. To achieve this, and further to operationalize the S–O–R model, the paper proposes to integrate an M–O–A (motivation–opportunity–ability) approach.

Originality/value

The analysis of the body literature reveals that there is still a lack of analytical and especially workable models/approaches for the analysis of the process of tourist decision-making. The paper contributes to that discussion by offering an alternative and generic operationalization of the tourist decision-making process by inducing a theoretical framework from the deductions gleaned from a number of existing theories.

Details

Tourism Review, vol. 74 no. 3
Type: Research Article
ISSN: 1660-5373

Keywords

Article
Publication date: 1 June 2003

Michel Laroche, Chankon Kim and Takayoshi Matsui

This study empirically investigates consumers’ use of five heuristics (conjunctive, disjunctive, lexicographic, linear additive, and geometric compensatory) in the consideration…

4400

Abstract

This study empirically investigates consumers’ use of five heuristics (conjunctive, disjunctive, lexicographic, linear additive, and geometric compensatory) in the consideration set formation, a critical first phase before actual choice behavior. Data were collected on the selection of beer brands and fast food outlets by real consumers. Using a decomposition approach in determining the consumers’ choice heuristics, it was found that the conjunctive heuristic is the most often used decision model in the consideration set formation for the two product classes. Implications for brand managers and future research directions are developed.

Details

Journal of Consumer Marketing, vol. 20 no. 3
Type: Research Article
ISSN: 0736-3761

Keywords

Article
Publication date: 11 July 2017

Elisa Montaguti and Alessandra Zammit

This paper aims to examine how pioneering advantage interacts with the compromise effect generated by new product entries. Building on prior work on pioneering advantage and…

Abstract

Purpose

This paper aims to examine how pioneering advantage interacts with the compromise effect generated by new product entries. Building on prior work on pioneering advantage and extreme aversion, this research moves toward understanding how the choice share of a pioneer realigns as a consequence of new product entries generating compromise-like scenarios.

Design/methodology/approach

The authors run three experiments to test their propositions. The authors present one study which documents the effect. The second study provides process evidence. The third study suggests how brands can neutralize the adverse effect on their share generated by the followers’ entry/positioning.

Findings

In three studies, the authors showed that when a pioneering product becomes intermediate in a choice set, its share is more adversely affected than when it becomes extreme. The authors show that this depends on consumers’ propensity to use non-compensatory decision rules in the presence of a pioneering alternative. The authors also document that the relative disadvantage of the intermediate pioneer can be overcome when the reasons for selecting an intermediate alternative based on a compensatory decision rule are restored.

Practical implications

The research provides guidelines for managers wanting to enter product categories where a pioneer already exists. The authors show that opting for an extreme position that renders the pioneer intermediate can be rewarding. In contrast, being the second extreme player in a market where the pioneer becomes extreme reduces the expected share of this last entrant.

Originality/value

The authors’ contribution is in showing that this decision strategy can clash with the rule consumers generally use in a compromise setting and that this clash generates two different effects when the pioneer becomes intermediate or extreme.

Details

European Journal of Marketing, vol. 51 no. 7/8
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 1 February 1999

Rex Eugene Pereira

Develops and tests a general model for understanding the influence of query‐based decision aids (QBDA) on consumer decision making in the electronic commerce environment. The…

2514

Abstract

Develops and tests a general model for understanding the influence of query‐based decision aids (QBDA) on consumer decision making in the electronic commerce environment. The results show that the use of well‐designed query‐based decision aids leads to increased satisfaction with the decision process and increased confidence in judgements. The number of stages of phased narrowing of the consideration set was higher in the case of subjects who had access to the query‐based decision aids. The mediating variables through which this influence occurs are size of the consideration set, similarity among the alternatives in the consideration set, cognitive decision effort, and perceived cost savings. The size of the consideration set and the similarity among the alternatives in the consideration set were higher in the case of subjects who had access to the query‐based decision aid. Subjects who had access to the query‐based decision aid perceived an increased cost savings and a lower cognitive decision effort associated with the purchase decision. This research is done in the context of consumers searching for information on the World Wide Web prior to the purchase of cars.

Details

Logistics Information Management, vol. 12 no. 1/2
Type: Research Article
ISSN: 0957-6053

Keywords

Article
Publication date: 30 March 2012

Jon Martin Denstadli, Rune Lines and Juan de Dios Ortúzar

This paper investigates how respondents to conjoint experiments process information and choose among product profiles, and how this varies with their knowledge about the product…

1566

Abstract

Purpose

This paper investigates how respondents to conjoint experiments process information and choose among product profiles, and how this varies with their knowledge about the product. Models for estimating conjoint attribute weights are almost exclusively based on principles of compensatory decision making. The paper aims to explore to what extent and in what way these basic principles of conjoint modelling are violated.

Design/methodology/approach

Data were obtained from a verbal protocol study where 18 undergraduate students each performed a total of 28 stated choice tasks while “thinking aloud”.

Findings

Results show that cognitive operations consistent with compensatory decision rules constitute a majority of the total number of operations performed across tasks and respondents. However, few respondents exhibited a consistent use of compensatory‐type processes throughout their choice sets. Results suggest that individual preferences interact with characteristics of the choice sets to instigate changes in information processing. It also appears that complete strategies are seldom used. Finally, respondents' knowledge about the product influences the cognitive operations that respondents use in solving conjoint tasks.

Research limitations/implications

Results are based on responses from 18 undergraduate students, which makes generalizations hard.

Practical implications

One implication of this work is that one should apply a more flexible model framework to allow detecting the existence of non‐compensatory strategies.

Originality/value

This paper is one of few which aim to implement findings in behavvioral decision research within the context of conjoint analysis.

Details

European Journal of Marketing, vol. 46 no. 3/4
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 1 September 2000

K. Sivakumar

The nature of competition between different tiers (e.g. high‐tier vs low‐tier brands) has become an important research domain for academic researchers and marketing managers…

1875

Abstract

The nature of competition between different tiers (e.g. high‐tier vs low‐tier brands) has become an important research domain for academic researchers and marketing managers. Although research on inter‐tier competition is growing at an increasing rate, there has not been a comprehensive attempt to summarize the research in this stream. The objective of this article is to synthesize the research on inter‐tier competition, extract the key findings, discuss managerial implications, and offer future research directions.

Details

Journal of Product & Brand Management, vol. 9 no. 5
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 17 August 2012

Catherine Viot

The purpose of this paper is to show that consumers' expertise of a product influences the number of attributes considered as important, the importance given to the attributes as…

1473

Abstract

Purpose

The purpose of this paper is to show that consumers' expertise of a product influences the number of attributes considered as important, the importance given to the attributes as well as the size and the content of the consideration set (CS).

Design/methodology/approach

A quantitative empirical study was carried out with 287 French wine consumers.

Findings

The results show that the attributes which were considered as important by the novices differ from those considered important by the experts and that the number of important attributes given by the novices (2) is lower than those given by the experts (7). Furthermore, the results show that the size of the CS itself is also influenced by subjective knowledge. On the other hand, this is not the case for the content of the CS.

Research limitations/implications

The empirical study only focuses on one product category. The data were collected on the basis of statements rather than observations, which is liable to distort the results.

Practical implications

The paper shows that the visual attributes, such as the design and the packaging, are not sufficient to sell wine to French consumers, even if they are novices in this field.

Originality/value

While most research devoted to the effects of the CS focus on a single dimension of it, this paper tests simultaneously the effects on the size and on the variety of the CS, which is analyzed according to both a qualitative and quantitative approach.

Details

International Journal of Wine Business Research, vol. 24 no. 3
Type: Research Article
ISSN: 1751-1062

Keywords

Article
Publication date: 30 June 2023

Kleopatra Konstantoulaki, Ioannis Rizomyliotis, Ioannis Kostopoulos, Solon Magrizos and Thi Bich Hang Tran

Departing from conflicting findings on the role of involvement in the formation of the consideration set, the authors of this study seek to shed light to the wine consumer…

Abstract

Purpose

Departing from conflicting findings on the role of involvement in the formation of the consideration set, the authors of this study seek to shed light to the wine consumer behaviour and expand previous findings in the bring-your-own-bottle (BYOB) of wine restaurant industry. The authors seek to determine the contradictory effect of involvement on the consideration set size and variety.

Design/methodology/approach

Three empirical studies were conducted. In Study 1, the relationships were tested in a personal consumption situation and in Study 2 in a gift-giving context. Finally, in Study 3, inconsistencies in the intensity of the hypothesised relationships were explored by testing the triple interaction amongst the three variables (i.e. involvement, decision-making context and decision domain).

Findings

According to the authors' findings BYOB of wine consumers form larger considerations sets in memory-based decision contexts. Involvement's effect on wine consideration set size is stronger in memory-based decisions. BYOB restaurant patrons form smaller sets of alternatives for personal consumption. BYOB restaurant patrons form more heterogeneous sets of alternatives in wine gift-giving. BYOB of wine restaurants should facilitate consumers' wine-selection process.

Originality/value

The authors make an effort to explain and determine the up-to-date contradictory effect of restaurant patrons' involvement on the BYOB of wine consideration set size and the amount of variety contained therein. The study offers new insights, by unfolding the moderating effect of decision-making contexts (i.e. memory-based versus stimuli-based) and decision domains (i.e. personal consumption versus gift-giving) on this effect of involvement on the properties of consideration sets.

Details

British Food Journal, vol. 125 no. 10
Type: Research Article
ISSN: 0007-070X

Keywords

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