Extrinsic cues and perceived risk: the influence of consumption situationClaudio Aqueveque
doi: 10.1108/07363760610681646pmid: N/A
Purpose – This paper aims to investigate the influence of consumption situation on the use of extrinsic cues, such as price and expert opinion, in the assessment of different types of risk associated to purchase decisions. Design/methodology/approach – An experimental design was conducted in a sample of 128 postgraduate students, using red wine as product category. The experiment manipulated consumption situation, price, and expert opinion about the product. Different types of risks associated with the purchase decision and purchase intention were then measured. Findings – Results suggest that consumption situation affects the use of price in the assessment of performance risk, but only in the case of negative expert opinion about the products. Additionally, expert opinion demonstrated to have a strong effect reducing performance risk and increasing intention to buy. Research limitations/implications – The main limitations of the present research are associated with the exploratory and inconclusive characteristic of the performed mediation tests, and the use of just one product category in the research. Future research should replicate the study in other product categories and include other types of extrinsic cues. Practical implications – Managers should consider the complex effects of price on the assessment of risks related with a purchase, and the effect of consumption situation on the process. In addition, managers should use positive expert opinions in advertising and point‐of‐purchase material. Originality/value – The study analyzes the influence of consumption situation on consumers' use of different extrinsic cues to assess risks associated with the purchase of uncertain quality products.
The influence of the country‐of‐origin image, product knowledge and product involvement on consumer purchase decisions: an empirical study of insurance and catering services in TaiwanLong‐Yi Lin; Chun‐Shuo Chen
doi: 10.1108/07363760610681655pmid: N/A
Purpose – The main purpose of this study is to explore the influence of the country‐of‐origin image, product knowledge and product involvement on consumer purchase decision. Design/methodology/approach – Taiwan, China and the USA were the three countries selected for research into the country‐of‐origin, insurance and catering services. Structured questionnaires and convenience sampling were used. Samples were collected from consumers in the Taipei area. A total of 400 questionnaires were distributed with convenience sampling method, and 369 effective samples were collected, the effective rate being 92.25 percent. Stepwise regression analysis was adapted to test hypothesis. Findings – The main findings were listed as follows: the country‐of‐origin image, product knowledge and product involvement all have a significantly positive effect on consumer purchase decision; the country‐of‐origin image has a significantly positive effect on consumer purchase decisions under different product involvement; and product knowledge has significantly positive effect on consumer purchase decisions under different product involvement. Research limitations/implications – Limitations of the study are: it is unable to infer to national consumers and to other service areas and the explanatory power of some empirical models is relative low. Implications of the study are that: a more thorough structure about consumer purchase decisions should be provided and the relationship between product knowledge and information search quantity should be verified. Practical implications – Practical implications pf the study are that the company must face competitive strategies from many countries and also the effect of consumer product knowledge on business competitive strategy. Originality/value – The added value of this paper is to link between theory and practice, and explore the different country‐of‐origin image, product knowledge and product involvement on consumer purchase decisions.
Word of mouth, brand loyalty, acculturation and the American Jewish consumerJeffrey Steven Podoshen
doi: 10.1108/07363760610681664pmid: N/A
Purpose – The intent of this article is to explore if there is a difference between American Jewish consumers and American non‐Jewish consumers in the use of word of mouth and brand loyalty in response to the purchase of durable goods (automobiles). Additionally, this article aims to explore if there is a difference in the use of word of mouth and brand loyalty among American Jews with differing levels of acculturation. Design/methodology/approach – This article utilizes survey data obtained from over 400 respondents with analysis performed using regression and chi‐squared analysis. Findings – This study shows no significant difference in brand loyalty and word of mouth between all American Jews and American non‐Jews, however, a significant difference between highly acculturated American Jews and low‐acculturated American Jews was found. Practical implications – The article helps firms plan their marketing strategy in terms of how they will utilize word of mouth where American Jewish consumers comprise a significant part of the target market. Additionally, this research helps firms understand the context of brand loyalty in terms of looking at ethnic groups. Originality/value – Little research on Jewish consumer acculturation has been published in the last 25 years. The spending power of the American Jewish consumer is significantly larger than that of the rest of the American population, which makes the study of this group particularly valuable.
Christmas gift giving involvementPeter Clarke
doi: 10.1108/07363760610681673pmid: N/A
Purpose – The act of giving a gift at Christmas is a form of consumption that invokes different levels of involvement. The purpose of this paper is to explore and measure involvement in parental Christmas gift giving and giving branded items as gifts. Design/methodology/approach – The required information was gathered via a self‐administered survey method distributed to parents with at least one child between the ages of three and eight years. A questionnaire package was delivered to five participating schools and seven kindergartens for children to take home to their parents. As a result, 450 acceptable cases were subjected to a process of exploratory factor and confirmatory analysis. Findings – The findings indicate that there is no significant relationship between involvement in giving gifts and involvement in giving brands as gifts, which suggests that it is important for parents to give gifts but not involving for parents to give popular brand names as gifts. In addition, the findings indicate that traditional measures of involvement require modifications that reflect semantic issues as well as reliability and validity issues. Research limitations/implications – Children between the ages of three and eight years are most likely to be concerned with the Santa myth; it is also a time of concern for parents and has implications for promotional and marketing activities of brands targeted at children. Originality/value – This research offers insights into involvement within the intangible context of gift giving and giving brands as gifts. It also contributes to the semantic differences between two forms of involvement and contributes to the ongoing involvement‐importance debate.
Loyalty trends 2006: three evolutionary trends to transform your loyalty strategyRick Ferguson; Kelly Hlavinka
doi: 10.1108/07363760610681682pmid: N/A
Purpose – This paper seeks to examine three evolutionary trends that are pushing the boundaries of loyalty marketing in 2006 and beyond. These trends incorporate the power of networks, the power of data, and the power of convergence. Design/methodology/approach – The paper thoroughly describes three new trends in loyalty marketing, which the authors believe have the potential to affect the strategies of all existing loyalty programs. Various programs that represent ongoing experimentation and innovation are used as examples of each of the trends. Findings – The paper suggests that by incorporating some of the components of the three trends in loyalty marketing, marketers will see their boundaries expand and their strategies and tactics change. The results will power profits and growth. Practical implications – It may be true that the biggest revolutions in loyalty marketing happened in the past. But micro‐revolutions in loyalty marketing are happening everywhere. By examining those programs that are innovative and willing to experiment, marketers can learn strategies that can grow their own programs. Originality/value – The paper takes a look at evolutionary trends in loyalty marketing, with suggestions on how to incorporate these trends into existing programs.