While in recent years much research attention has been directed towards China and its various industries, the Chinese diamond industry has been largely neglected. China is the world’s second-largest diamond processing center after India, and the second-largest consumer market for polished diamonds following the United States. It is also predicted to surpass both countries in the near future. We identify a paradox in the Chinese diamond industry, namely, that while Chinese businesses often follow a relational governance model, China’s diamond industry tends to employ rational mechanisms of governance and exchange. We discuss the main challenges for business ethics in China, with a focus on the paradox in the Chinese diamond industry as a case study using the GRX (Ganqing, Renqing and Xinren) scale. We used interview protocols and a two stage research process to examine the influence of the GRX constructs on relationship satisfaction and performance. Due to the complexity of gathering data on a relatively secretive industry, we complemented the fieldwork by collecting further evidential artifacts from journals, books, magazines and government officials. We ultimately identify five interrelated themes that help explain why exchange in the Chinese diamond industry is frequently more transactional than relational. Furthermore, we show how weaknesses in China’s governance systems have allowed fraud and corruption to permeate this industry and explain why business ethics appear poorly developed. The current study offers a new look at this under researched industry. Particularly, the manuscript illustrates a model of trust building based on relational exchange and explains the paradox through the business model presented. The research also helps to provide some rationale for the pervasiveness of corruption and identifies issues affecting the maturation of business ethics in the Chinese diamond industry and in some sense, China’s industries in general.
The relationships among corporate social responsibility (CSR) practices, corporate identity, and Hedonic and Utilitarian Dimensions of Consumer Attitude were evaluated for the luxury corporation Hermes. Discretionary CSR practices and moral/ethical CSR practices emerged as significant predictors of the corporate social values dimension of identity. Relational CSR practices, however, contributed mainly to the expertise dimension of corporate identity. Also, familiarity with CSR practices of a corporation had a significant effect on corporate identity, which in turn affected both dimensions of consumer attitude. Both corporate expertise and corporate social values were significant predictors of consumer attitude. The results are interpreted within a dual process model of corporate identity.
This paper is demonstrative of values and the imbibed strength of values observed along the value chains of organizations studied by the authors in past two years. The paper is projective of an intense relationship of values based business ethics observed along the value chains of the organizations concerned with the context and the soul of the conventional definition of marketing given by American Marketing Association in 2007. The value chain of a prominent consumer product’s marketers studied through reflexive research approach exemplifies that how business ethics based on values helped in evolving activities, institutions and processes for creating, communicating, delivering and exchanging offerings that have value for the customers, clients, partners and society at large which is actually the definition of marketing be American Marketing Association:
Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. (Approved July 2013)
Similar observations in the value chains and the marketing process of other organizations validated the fact that if values driven business ethics is followed along the value chain the context of 2007 definition of Marketing gets enlivened.
Mobile banking has been continuously increasing worldwide. A number of studies have been examined on the mobile banking adoption intention (Kim et al., 2007; Sripalawat et al., 2010; Bhatiasevi, 2015; Baptista, 2015). However, most of those studies have been confined to Western countries and the developed Asian countries such as China (Ball et al, 2004; Chitty, 2012), Thus, there were only few of researches on continuance usage intention towards mobile banking in Thailand. Then, an investigation of the factors affecting users’ continuance intention should be studied to fulfill this gap. It is interesting to examine users’ continuance intention towards mobile banking and identify factors that would affect them. In addition, the adoption rate of mobile banking in Thailand is still underused than expected (Sripalawat et al., 2010). Hence, users’ continuance usage is a critical for long-term improvement of mobile banking. Consequently, continuance intention has become an essential topic of study in the mobile banking research area. The purpose is to study the impact of risk and trust on continuance intention towards mobile banking in Thailand and generate a meaningful understanding of the users’ continuance intention towards mobile banking.
Mobile Banking is in a form of electronic banking, which describes all financial transactions through mobile communication technology (Weber and Darbellay, 2010; Chen, 2008; Mallat et al., 2004). Based on Ball et al., (2004) an extend European Customer Satisfaction Index model has been investigated on continuance intention. In this paper, the perceived risk is added for a better explanation of the impact of perceived risk and trust in continuance intention on Thai mobile banking consumers.
Continuance intention can be defined as a customer’s intention for repurchasing from the same organization (Edvardsson et al., 2000). Repurchasing products and services from the same organization is a result of value received from one seller is more than other alternatives (Hallowell, 1996). Company can reduce cost and increase profit from customer loyalty. It is because company need to spend five times more than the cost of retaining an existing customer to acquire a new customer (Yap et al., 2012). It is a key factor in order to achieve company success and sustainability over time (Flavian et al., 2006; Keating et al., 2003).
Expectations, both of experience and non-experience users can have an “expectation”. Non-experience users can have an “expectations” prior consumption experience from other sources such as advertising, promotion, pricing and word-of-mouth. Patterson et al. (1997) mentioned that expectation has an influence on disconfirmation and associate on satisfaction. Perceived quality is received customization and reliability from product or service. The level that products or services meet customer’s requirements is customization and the level of firm’s providing standard products without deficiencies is reliability. Parasuraman et al., (1988) claimed that a distinctive product quality contributes the differentiation of products and services to overcome competitors. The perceived quality significantly influences on satisfaction (Parasuraman et al., 1996; Kim et al., 2008). In addition, perceived quality is expected to have a positive effect on customer satisfaction (Fornell et al., 1996).
Perceived value of a service is the benefits from service quality that customers receive relative to the costs paid by customers (Turkyilmaz et al., 2013). Perceived value is expected positively impact on satisfaction in the ECSI model (Turkyilmaz and Ozkan, 2007).
Trust is the belief that a company will complete its commitments without taking benefits from customers (Ranaweera et al., 2005). Mukherjee and Nath (2003) found trust is an antecedent of commitment in online banking. Moreover, Morgan and Hunt (1994) supported trust is a key to successful relationship marketing. Aydin and Ozer (2005) mentioned that building trust is not only perceive good outcomes but also believe that good results will continue. Trust in service providers has a significant impact on continuance intention. It is an antecedent in models concerning to relationships that include loyalty as dependent variables (Schaupp and Be ́langer, 2005; Verhagen et al., 2006). Lack of trust can influence the way in which consumers see banks and financial institutions and in particular consumers’ attitudes to new forms of service delivery via the internet (Zhao et al., 2010).
Perceived risk has changed as people have engaged online transactions. In the past, perceived risk was mainly related to fraud or product quality, but presently perceived risk is linked to financial, psychological, physical, or social risks in online transactions (Forsythe and Shi, 2003; Im et al., 2008). There are different types of risks were explored in the previous research about mobile banking and other banking technologies. Firstly, privacy and security were concerned regarding mobile banking among some consumers (Luarn and Lin, 2005). A PIN codes has been used to increase the security. Personal details and financial information became the main concern for mobile banking (Brown et al., 2003), especially among mature consumers (Laukkanen et al., 2007). When customers perceive an uncertainty, they tend to limit their usage or purchase intention Lin (2008). In addition, Wu and Wang (2005) support that risk has a statistically significant effect on intention to use mobile commerce in Taiwan.
Satisfaction can be defined as how much customers are satisfied with the products or services of a company, and how well their expectations are met Oliver (1999). Customer satisfaction has been also explained as an overall evaluation of a firm’s post-purchase performance or utilization of a service (Fornell, 1992). Customer satisfaction is generally viewed based on evaluations and expressed some time during the purchase-consumption process. Loyalty and satisfaction are considered in several conceptual. There are a relationship between loyalty and satisfaction (Oliver, 1999).
For the methodology, the questionnaire was administered through online included questions measuring the variables based on the extended European Customer Satisfaction Index (ECSI) model. Both males and females mobile banking consumers aged more than 18 years old living or working in Thailand are focused on this paper. The questions were rated on a 5-point Likert scale and developed from previous mobile banking studies (Parasuraman et al.,1988; Bhattacherjee, 2001, Ball et al., 2003; Chen, 2012; Kang et al., 2012; Kursunluoglu, 2014; Baptista, 2015). The partial least squares path modelling was used to investigate data from questionnaire to test hypotheses and determine the consistency, reliability and construct validity, as well as the relationships among constructs. 403 valid samples were collected after eliminating 153 invalid samples. The majority of respondent uses mobile banking more than 4 times a month as 36 percent. A percentage of 30 of respondents use mobile banking 1-2 times a month. Respondents using mobile banking 3-4 times a month and less than once a month follow with 19.1 percent and 14.6 percent respectively.
The results from partial least squares path modelling have shown that the expectation has a significant impact on customer satisfaction. Thai consumers who set expectation on their mind by using their previous experience or word of mouth from their friends will compare the mobile banking service performance to their expectation. They would satisfy the mobile banking if the services meet their expectation.
Perceived quality has a significant positive impact on customer satisfaction. Providing good performances with accuracy, unfreezing system contributes customer satisfaction on Thai mobile banking users.
Perceived value affects on customer satisfaction. After Thai consumers use the mobile banking service, they would evaluate the benefits receiving from the service relative to the costs paid by customers. If service received was worth with the money paid, Thai consumers would satisfy services.
Perceived risk does not have a negative impact on customer satisfaction but it has a significant negative effect on continuance intention. Thais’ satisfaction would not be reduced by perceived risk, whereas Thai users would stop using mobile banking if they feel unsafe and perceive risk.
Trust has a significant direct impact on continuance intention towards mobile banking consumers in Thailand. This shows that Thai consumers would keep using mobile banking service since they trust on the mobile banking service providers.
The satisfaction is a dominant in continuance intention. Satisfaction has a significant impact on continuance intention. Once users satisfy the mobile banking service, they would like to continue use mobile banking and introduce mobile banking to their friends.
In conclusion, satisfaction, trust and perceived risk have an impact on continuance intention towards mobile banking in Thailand. Expectations, perceived quality, perceived value have an indirect impact on continuance intention in using mobile banking for Thai consumers through satisfaction. The satisfaction is a dominant factor of continuance intention usage (Bhattacherjee, 2001a, 2001b; Chen et al., 2012; Lam et al., 2004). Satisfaction on mobile banking can be generated by good quality service, value, and responding customers’ requirement to meet their expectations. Surprisingly, perceived risk has no a negative impact on customer satisfaction, but it has an impact on continuance intention. Trust also leads Thai consumers continue use mobile banking. This study contributes mobile banking service providers to know the impact of risk and trust on continuance intention towards mobile banking in Thailand and generate a meaningful understanding of the users’ continuance intention towards mobile banking. The result can improve the volume and value of mobile banking transaction, and satisfaction. Moreover, mobile banking providers can reduce the challenge and generating a better decision on the future marketing campaign to motivate mobile banking consumer keeps using the services.
This research was conducted in order to examine the effects of user socio-demographics and recently introduced streamlined technology readiness index TRI 2.0 (Parasuraman & Colby, 2015) on mobile device use in B2B digital services. Mobile adoption has been studied from a consumer perspective, but to the best of the authors’ knowledge, very few studies explore mobile use in B2B markets. Mobile marketing is becoming a strategic effort in companies, as digital services not only in B2C but also in B2B sector are getting increasingly mobile (Leeflang, Verhoef, Dahlström & Freundt 2014). This raises an interest to better understand the characteristics of those mobile enthusiasts who primarily use B2B services via a mobile device rather than via a personal computer. The study tests hypotheses with a large data set of 2,306 business customers of which around 10 percent represent these innovative mobile enthusiasts.
Technology readiness is an individual’s propensity to embrace and use new technologies for accomplishing goals in home life and at work (Parasuraman & Colby, 2015; Parasuraman, 2000). Parasuraman and Colby (2015) recently introduced an updated version of the original Technology Readiness Index (TRI 1.0) scale called TRI 2.0 to better match with the recent changes in the technology environment. At the same time they streamlined the scale to a compact 16-item version so that it is easier for researchers to adopt it as a part of research questionnaires. Likewise the original scale, TRI 2.0 consists of four dimensions: optimism, innovativeness, discomfort, and insecurity. Optimism and innovativeness are motivators of technology adoption while discomfort and insecurity are inhibitors of technology readiness, and these motivator and inhibitor feelings can exist simultaneously (Parasuraman & Colby, 2015). Optimism is a general positive view of technology containing a belief that technology offers individuals with increased control, flexibility and efficiency in their lives. Innovativeness refers to a tendency to be a pioneer and thought leader in adopting new technologies. Discomfort reflects a perception of being overwhelmed by technology and lacking control over it. Moreover, insecurity reflects distrust and general skepticism towards technology, and includes concerns about the potential harmful consequences of it. As individuals differ in their propensity to adopt new technologies (Rogers, 1995), the authors propose that technology readiness influences mobile device use of B2B customers:
H1: Optimism has a positive effect on mobile device use of B2B digital services.
H2: Innovativeness has a positive effect on mobile device use of B2B digital services.
H3: Insecurity has a negative effect on mobile device use of B2B digital services.
H4: Discomfort has a negative effect on mobile device use of B2B digital services.
The earlier literature argues that socio-demographic factors such as gender (Venkatesh & Morris, 2000; Chong, Chan & Ooi, 2012), age (Venkatesh, Thong & Xu, 2012; Chong et al., 2012; Kongaut & Bohlin 2016), education (Agarwal & Prasad, 1999; Chong et al., 2012; Puspitasari & Ishii 2016) and occupation (Okazaki, 2006) influence technology adoption behavior in general, and mobile adoption in particular. For example, men are nearly twice as likely as women to adopt mobile banking, and age is a negative determinant (Laukkanen, 2016). Higher educated use mobile devices more for utilitarian purposes, while lower educated use mobile devices more for entertainment (Chong et al., 2012). Moreover, research suggests that occupational factors influence mobile use (Okazaki, 2006). The authors hypothesize:
H5: Males are more likely than females to use mobile device for B2B digital services.
H6: Age has a negative effect on the use mobile device for B2B digital services.
H7: Customers with higher education level have a higher likelihood for using mobile device for B2B digital services than customers with lower education level.
H8: Occupation has an effect on the use mobile device for B2B digital services.
The study tests hypotheses with a data collected among B2B customers of four large Finnish companies, all representing different industry fields. The large sample (n=2306) consists of procurement decision-makers all experienced with using B2B digital services. The sample shows that over 90 percent of the B2B customers are still using a computer (laptop or desktop computer) as their primary access device for digital services in their work. The sample divides between females and males in proportion to 46 and 54 percent respectively. University degree represents a majority with 42 percent, while only 2,7 percent of the respondents have a comprehensive or elementary school education. Over half of the sample represent top management or middle management with 24,6 and 28,4 percent respectively, while 9 percent are entrepreneurs, 21,2 percent represent experts, and 16,7 percent are officials or employess. Mean age of the respondents is 51,6 years, ranging from 18 to 81 years.
The study uses logistic regression analysis with backward stepwise method in which the dependent variable is a dichotomous binary variable indicating the respondent’s primary access device for B2B digital services with 0=computer and 1=mobile device. As for the independent variables, the study measures individual’s technology propensity with recently introduced 16-item TRI 2.0 scale from Parasuraman and Colby (2015) using a five-point Likert scale ranging from Strongly disagree=1 to Strongly agree=5. The authors used confirmatory factor analysis to verify the theory-driven factor structure of the TRI 2.0 scale, i.e. optimism, innovativeness, discomfort, and insecurity. The analysis show that the measurement model for the TRI 2.0 scale provides an adequate fit and standardized regression estimates for all measure items exceed 0.60 (p<0.001) except for one item in discomfort (β=0.516) and one item in insecurity (β=0.480). After removing these two items the model shows an excellent fit with χ2=478.033 (df=71; p<0.001), CFI=0.965, RMSEA=0.050. Moreover, discriminant validity is supported, as the square root of the average variance extracted (AVE) value of each construct is greater than the correlations between the constructs (Fornell & Larcker, 1981). In addition, composite reliability values vary from 0.726 to 0.852 supporting convergent validity of the TRI 2.0 factors (Table 1). Thereafter, the factor scores of the latent factors showing sufficient internal consistency were imputed to create composite measures. These composite measures were used as independent variables in the logistic regression model. With regards to socio-demographic variables, age is measured as a continuous variable, while gender, education, and occupation are categorical independent variables in the model.
The results of the logistic regression analysis show that innovativeness, insecurity, age, and occupation are statistically significant predictors of mobile device use in B2B services, supporting hypotheses H2, H3, H6, H8. The stepwise analysis procedure removed optimism (p=0.860), education (p=0.789), gender (p=0.339), and discomfort (p=0.159) from the model as they proved to be non-significant predictors of mobile device use. The results indicate that occupation is the strongest predictor for mobile device use in B2B digital services so that the top management has the greatest likelihood as the odds ratios of middle management, experts, and officials/employees are 0.610, 0.282, and 0.178 respectively. This means that, for example, the odds of the top management using mobile device as their primary channel for B2B digital services are 1.64 (1/0.610) times greater than the odds of the middle management, and 5.62 (1/0.178) times greater than the odds of the officials/employees. Interestingly the β-value for the entrepreneurs is positive indicating that their likelihood for mobile device use is even greater than the likelihood of the top management. However, the p-value (0.913) indicates that the difference is not statistically significant.
With regards to age of the B2B customer, the results indicate a negative relationship with mobile device use. The odds ratio [Exp(β)=0.979] claims that the odds of a B2B customer to use mobile device as the primary channel for digital services decrease by 2 percent for each additional year of age. Regarding the TRI 2.0 constructs, the results show that innovativeness is a highly significant positive predictor for mobile device use, while perceived insecurity has a negative effect (Table 2).
Literature suggests that B2B customers increasingly use mobile devices but yet little is known about those individuals most enthusiastic in using B2B digital services via a mobile device. Thus, the current study attempts to better understand those mobile enthusiasts who among the first have adopted mobile devices as their primary method to access B2B digital services. The results suggest that occupation is the most significant predictor of mobile use among B2B customers, implying that top managers are among the most likely to adopt and use mobile device for business services. Moreover, younger B2B customers use mobile devices more eagerly as the results suggest the likelihood for mobile device use degreases by 2 percent with every added year of age. The results further imply that out of the four TRI 2.0 dimensions innovativeness and insecurity influence in the mobile device use of B2B customers, innovativeness positively and insecurity negatively as the theory proposes. Innovativeness represents individual’s tendency to be a pioneer and thought leader in terms of technology adoption, while insecurity stems from the general skepticism and distrust of technology. These results imply that B2B customers who mainly access B2B digital services via a mobile device are open minded towards the possibilities new technologies can provide for them. Moreover, it appears that those B2B customers still accessing digital services primarily via a computer are more skeptical than mobile users towards technology in general. Compared to the use of mobile devices for individual purposes, business related use is more functional in nature, and thus, mobile devices and technologies must be convenient to use, offer real benefits for example in forms of mobility and portability, and be reliable in order for B2B customers to use them. Interestingly, our results do not support the effects of generally positive attitudes towards technology reflecting optimism, or discomfort of using technologies to influence mobile use among B2B customers. In addition, there are organizational factors (e.g. voluntariness of use) that the authors omit in the current study. These may limit the findings.
Mobility will be a key driver in the ongoing digital revolution of marketing and sales. Understanding online behavior of mobile enthusiasts assists B2B marketing and sales leaders to plan and implement more effective mobile marketing strategies. Rogers (1995) has shown that the majority will follow the early adopters, and the adaptation cycle has even shortened during the last years (Downes & Nunes, 2014). Thus, mobile devices are evidently becoming the primary method in accessing B2B digital services.
The unique benefits offered by mobile shopping services have created new value propositions that motivate consumers choosing the mobile shopping channel over other channels. Consumers use the mobile shopping channel in different situational contexts regardless temporal and spatial constraints. The situational motivations using mobile shopping services are from consumer expectations of the benefits they can obtain in a specific situation, driving consumers to use the services again in the situation. Drawing upon assimilation-contrast theory (LaTour & Peat, 1979) and the notion of compatibility in Perceived Characteristics of Innovation (PCI) framework (Rogers, 1995), consumers tend to compare consumption experiences to their internalized standards (e.g., expectations, performance norms) for subsequent evaluations (LaTour & Peat, 1979). When consumer experience of using the product/service is consistent with their internalized standards, consumers will perceive the product or service is compatible, fulfilling their needs and values. Thus, once compatibility of the product or service is determined, consumer continued intention to use the product or service could be increased. By applying this conceptual framework to consumer mobile shopping behavior, this study examined the different sets of situational motivations (i.e., variety seeking, information in planned, time pressure, pleasure in bargain) of mobile shopping and how the different motivational factors may increase compatibility of mobile shopping services and further lead continued intention to use the services. A total 305 completed responses were collected via online. The sample consisted of slightly more female (52.1%) than males (47.9%); ages ranging from 19 to 63. The two steps of structural equation modeling were used to validate measurement model and to test hypotheses using Amos 22.0.The measurement model was evaluated using Confirmatory Factor Analysis, showing a good fit to the data (χ2 = 294.218 with 103 df at p-value .000, CFI of .926, and RMSEA of .078). The fit statistics of the structural model indicated a good fit to the data (χ2 = 317.925 with 107 df at p-value .000, CFI of .919, and RMSEA of .081). The study found that variety seeking (Г = .942, t = 5.254, p-value < .001) and time pressure (Г = .205, t = 1.970, p-value= .049) motivations were positively related with mobile shopping compatibility and the compatibility had positive effect on continued intention to use mobile shopping services (β = .836, t = 14.362, p-value < .001). This study results suggest that variety seeking and time sensitive consumers perceive that mobile shopping channel fulfills their needs. This study also found that these specific motivations could increase the degree of mobile shopping channel compatibility, resulting in continued intention to use the mobile shopping channel. The findings of this study enable academics and retailers to understand consumer situational motivations in using the mobile shopping channel and serve to help retailers develop mobile shopping services and apps meeting consumer needs in different situations.
Worldwide, more than 1/3 of all e-commerce transactions in business-to-consumer industries are nowadays executed via mobile devices (Criteo, 2015). Despite its increasing importance, it can be noted that mobile commerce does not seem to “take-off” equally across diverse goods and services contexts. We observe, for instance, that mobile commerce is quite common in service industries for purchasing tickets (e.g., for flights, public transportation, and sport events), while it is less common for services such as financial products. Balasubramanian et al. (2002) addressed this issue and proposed that contexts of m-commerce differ from each other with regard to several characteristics. For example, they propose that location sensitivity (among other characteristics) differs for various m-commerce applications, and that this characteristic may impact acceptance of m-commerce across industries. It may be that acceptance of m-commerce is higher in some industries since use of location sensitive data is appreciated by customers, while it is not valued in other purchasing contexts. Against this background, we propose that examining (1) risk perception related to mobile commerce and (2) different types of mobile commerce applications are essential for gaining a deeper understanding of the phenomenon of differing relevance of m-commerce across industries. In particular, our study acknowledges the differential roles of the financial, performance, and security facets of risk. In addition, we assume that the role of value and risk dimensions differs subject to three mobile commerce application characteristics which are location sensitivity, time criticality, and extent of control. Based on a dataset of 800 respondents, results of our models demonstrate that especially security risk can act as a critical inhibitor of acceptance. The extent to which performance risk and financial risk impact perceived usefulness was found to be moderated by the three contextual characteristics. From a managerial perspective, results show which factors should deliberately be considered in the development of m-commerce applications, and in which different application contexts they matter.
We propose that while EMFs’ international diversification promotes new product performance, technological capability actually mediates the relationship between international diversification and new product performance. We further argue that focusing on more developed markets strengthens the positive effect of EMFs’ international diversification on their technological capability accumulated over the process of internationalization, whereas it weakens the impact of EMFs’ technological capability on their new product performance because EMFs have to compete with local and global firms in the more developed target countries. Analysis on Chinese manufacturers’ international efforts provides support for these hypotheses.
This study examines when high tech firms are better off specializing in either exploration or exploitation learning strategy. Drawing on the organizational learning literature, we hypothesize that a firm’s imbalance between exploration and exploitation (or specialization strategy) has differential impacts on firm performance depending on its structural characteristics and external environment. A survey data of 180 high tech firms in China shows that firm age and scarcity of R&D resources moderate the relationship between specialization and business performance. Moreover, specialization strategy works better when competitive intensity is low.
The underlying empirical work aims at examining the consequences of a negative experienced co-creation process. A mediation analysis investigates how and why a negative co-creation experience affects consumers’ product evaluations and reveals that not all production experiences create additional value.
Supply and demand patterns have dynamically changed in recent years due to the increased global competition. Firms have selected quality and price as competition components and have accomplished corporate innovation in order to achieve competitive advantage. Innovation has been recognized as the way to enhance corporate competitiveness and to continuously grow in churning global competition (Homburg, Schwemmle, & Kuehnl, 2015; Moon, Miller, & Kim, 2013). Although innovation becomes a common means to improve a firm’s performance, it has the limitation of achieving a firm’s strategic goal as a long-term strategy. Thus, firms need to have more fine-grained strategies to survive in dynamically changing business environment, such as design innovation (Moon et al., 2015). For example, Apple has produced its products (e.g., iPhone, iPod and iPad) focusing on innovative product design to influence consumer purchase intention. Design can lead to a distinct competitive advantage (Bolch, 1995). Furthermore, product design can be used by firms to create amd enhance brand recognition, as well as to increase firms’ value (Mozota, 2002). Brand experience positively influences customer satisfaction and brand loyalty (Brakus, Schmitt, & Zarantonello, 2009). Thus, we assume that design experience and product innovation have a positive effect on consumers’ purchase behavior and customer value.
However, while the importance of design innovation is recognized, it is not easy to apply the design innovation to marketing due to the lack of relevant research in the field. In fact, relevant research on the influence of innovative new product design and design experience on customer value is scarce. Therefore, the purpose of this study is to investigate how brand experiences and innovative product design affect customer value.
Successful innovation is accomplished by identifying customer needs first and developing innovative products to satisfy their needs (Hauser et al., 2006). Design is seen as the core of innovation and the moment when a new object is conceived of, devised, and shaped in a prototype form (Landwehr, Wentzel, & Herrmann, 2013). Verganti (2008) studies the concept of "user-centered design," which describes how companies can use design to improve their relationships with users and develop a better understanding of user needs. In this research, design innovation has three dimensions: aesthetic attributes, feature attributes, and emotional attributes. First, aesthetic attributes focus on the product design itself. The aesthetic appearance of a product has a large bearing on its potential market share (Liu, 2003). Second, feature attributes focus on the product features and functional aspects that are required to satisfy customer needs. Feature attributes enable performance that can give results in the operating process (Crawford & Di Benedetto, 2007). Third, emotional attributes focus on consumers’ feeling when they purchase a new product to satisfy their needs. Emotional attributes are generated by consumers’ experience when they purchase a new product in the store. The more the product design satisfies customer's emotional needs, the more customers’ attention is attracted to the purchase of a product (Mokarian, 2007).
A product satisfying the aesthetic, feature, and emotional attributes through design innovation provides a new experience to customers (Desmet & Hekkert, 2007). A consumer’s purchase decision making is affected by both direct and indirect experience of using the product and the function of product (Brakus, Schmitt, & Zarantonello, 2009). Therefore, a designer comes to design the product, taking an interest in the experience that the product gives besides its shape and function. Product experiences occur when a customer interacts with the product ̶ for example, when customers search for, examine, and evaluate products (Hoch, 2002). The product experience can be direct, i.e. when there is physical contact with the product (Hoch & Ha 1986) or indirect, i.e. when a product is presented virtually or in an advertisement (Hoch & Ha 1986; Kempf and Smith 1998). Brand experience can be split into four dimensions (sensory, affective, intellectual, and behavioral), which are differentially evoked by various brands (Brakus, Schmitt, & Zarantonello, 2009). According to previous studies, these four experience dimensions (sensory, affective, intellectual, and behavioral experience dimensions) have an effect on customer satisfaction and customer loyalty.
Customer value can be defined as the trade-off between the benefits and sacrifices as a customer purchases a product or service from a supplier (Ulaga & Chacour, 2001). Ulaga and Chacour presented three dimensions of customer value: product-related components, service-related components, and promotion-related components. The researchers argued that customer value could be an important strategic marketing tool to clarify a firm's proposition to customers. Product-related components are intrinsic product characteristics. Product quality is a key factor of relationship value (Ulaga, 2003). Customer value consists of product value and service value. Customer value can be enhanced by quality, diversity, payment, and service quality and decreased by price, convenience, and risk (Jarvenpaa & Todd, 2003). Service-related components include all aspects of service associated with the product. Various service components play an important role in differentiating a supplier's offering (Narus & Anderson, 1996). Promotion-related components include all items used to promote the product to the customer. For all purchasing processes, it is necessary to assess the perceived customer value, such as service quality and promotional quality (Qualls & Rosa, 1995).
In the present study, we conducted a research survey with 300 subjects and analyzed the data. In order to test the reliability of questionnaire, Cronbach's alpha was used. In order to test the validity, an exploratory factor analysis was conducted. Measurement was made for 3 variables, i.e. design innovation, design experience, and customer value. Three variables (aesthetical attributes, feature attributes, and emotional attributes) were used for design innovation. Three types of attributes were introduced for a mobile phone design innovation. Four dimensions (sensory, affective, intellectual, behavioral) were measured using a technical design experience and a humanistic design experience. Three variables (product-related customer value, service-related customer value, and promotion-related customer value) were employed for customer value.
The results of the analyses demonstrate that design innovation has a positive effect on design experience, while design experience has a positive effect on customer value. Aesthetic attributes of design innovation have a positive effect on technical design experience and humanistic design experience. Feature attributes have a positive effect on the technical design experience and the humanistic design experience. Emotional attributes have an effect on the technical design experience and the humanistic design experience. The technical design experience has a positive effect on product-related customer value, service-related customer value, and promotion-related customer value. The humanistic design experience has a positive effect on product-related customer value, service-related customer value and promotion-related customer value.
This study will make it possible to empirically examine how customer's experience in design innovation affects customer value. Our results will provide a theoretical foundation for examining a relationship between variables regarding how design innovation influences customer value through design experience.
It is intended to give a direction as to the design innovation of firms by clarifying and presenting antecedent factors having an effect that design innovation produces on customer value. The results of the present study will inspire designers to design in consideration of design experience. Finally, our study will provide marketers with guidelines as to how design experience can influence customer satisfaction and loyalty.
Obesity has become a major health concern among the public, and menu labeling was mandated in many countries several years ago as an intervention to reduce obesity. Although the pursuit of healthy foods is apparent, research indicates that majority of restaurant customers do not use nutritional information for menu selection. The present study investigated customer attitudes and behaviors regarding menu labeling; specifically, the relationships among customer motivation, attitudes, menu label use, and healthy menu selection. Data were collected from a survey of 509 restaurant customers in South Korea. The findings indicated a positive effect of motivation on attitudes, menu label use, and healthy menu selection, respectively. Attitudes also positively influenced menu label use and healthy menu selection. Regarding the relationships among the variables in the proposed model, the strongest relationship was found between menu label use and healthy menu selection. In addition, attitudes serve as a mediator in the relationships between motivation and menu label use, and between motivation and healthy menu selection. Menu labeling use also mediates between attitudes and healthy menu selection. These findings can help governments or industries improve customer use of menu labels and therefore help reduce public obesity. This study is valuable in that it investigates restaurant customer use of menu labels since the menu labeling initiatives were mandated several years ago. It is academically important in that it examines various customer attitudinal and behavioral variables together regarding menu labeling.
This research examines the concepts of customer brand engagement (CBE) and perceived social presence (PSP) in a corporate Facebook context, and tests whether CBE and PSP have an impact on brand trust. CBE has well-defined sub-dimensions that are about behavioral, emotional and cognitive, and motivational aspects. The sample (n=461) is from Kuwait, and asks about use of corporate Facebook pages for smart phones. All three of the CBE sub-dimensions have a significant impact on brand trust. PSP influences the CBE sub-dimensions, and it also influences brand trust directly. Brand trust does impact brand loyalty in the corporate Facebook context.
Due to the highly competitive nature of the apparel industry, fashion brands attempt to constantly engage consumers through various marketing strategies. Social media was found to drive female consumer purchases for apparel items. In shopping for fashion, consumers have used their personal connections on social media as an information source about different brands and products and to seek approval of their peers before making a purchase decision (Park & Cho, 2012). Cha (2009) found that female consumers look to their social media network connections for emotional connections, opinions, and approval on clothing, perfume, and accessories they are considering purchasing online. Ruane and Wilson (2013) found that female consumers use social media sites for information on where to shop and what merchandise to purchase.
In studying the effect of blogs on corporate outcome, the role Millennials play is found to be significant. They are heavily reliant on word of mouth when up to 93% of Millennials has purchased a product after hearing about it from a family member or friend (Hoffmann, 2014). They not only usually read reviews prior to purchase, but also pass their recommendations via social media post-purchase (Hoffman, 2014). This age group constitutes 27% of the US population and in spite of their lower incomes, they spend more money on e-commerce than any other age group ($2,000 annually) (Smith, 2015). Therefore, this study aims to suggest strategies to fashion brands on effective blog campaign, which may eventually provide insights on how marketers can encourage engagement with female Millennial apparel consumers. The study’s objectives are 1) to examine the effect of brand awareness building customer’s brand credibility, brand similarity and blog engagement 2) to investigate the impact of brand responses on customer’s brand credibility, brand similarity and blog engagement, and 3) interaction effect between brand awareness and brand responses on customer engagement through cognitive evaluation in fashion blog context.
A 3 (brand response: automated response, personalized response, no response) x2 (Brand awareness: well know, unknown) experimental design was developed through a pre-test of 139 participants. For main-test, experiment conditions and the following survey were completed by the convenience sample of 537 students in a large Southern university. Research findings revealed the significant impact of brand awareness on customer perceived brand credibility and brand similarity which were significant predictors of engagement intention. In contrast, the study indicated the insignificant relationship between brand responses and blog engagement intention. Study’s result not only suggested implications for marketers but also expanded further studies contributing on the body of knowledge.
Consumers use their five senses to experience and evaluate products, especially visual sense. According to the previous psychological studies, they purpose that there are two opposite effects when consumer encounters a serial trail process. The two order effects are primacy effect and recency effect. When consumers are selecting items and considering which one is more favorable, they are starting to recall what experiences they just gone through. If they clearly recall what they firstly experienced than the following ones, the effect is primacy. Conversely, recency effect, which has the opposite direction, comes out when the data in the memories are decaying over the time. Despite of product presenting order, consumers rely on other cues before evaluating products. This study purposed that country of origin or so-called brand of origin is a critical determinant of making choice. Experiments were developed to test country of origin effect when participants sampled the item in a sequence. Other possible variables which affect choice were controlled in this study.
The study examined order effects and the moderating effect of country of origin of sampling a sequence of products with similar visual cue and dissimilar visual cue on preference. The study used crystal glasses and let participants see them sequentially. The study aimed (a) to investigate the primacy effect and recency effect in the (dis)similar visual cue scenario, and (b) to investigate COO effect moderates the route between order effects and consumer preference.
The study conducted four experimental studies. The data were collected from Taiwanese aged 22 in average. In the pretest, the study adopted one-way ANOVA to choose the experimental items and country of origin. The study also adopted one-sample T-test to examine participants’ preference orientation in the main test. The result showed that: 1. the appearance of the product did not affect preference, but
order effects did have an impact on preference;2. primacy effect would be
strengthened or weakened according to different country of origin labeling on the products. Participants mostly preferred the product from a relatively high image country no matter the item is presented firstly or secondly. Findings contribute to marketers to develop positive impression on certain products by the appropriate product display under the influence of country of origin effect.
This paper will discuss the role of humanship in marketing non-profit, for-profit, and public policy. Humanship is defined as leadership in one’s life or self-sponsorship through finding an optimal balance between awareness and action by focusing on one’s internal locus of control. In essence, it reflects the need to bring the ‘human’ back to the center stage as the end and not just the means to service, product, and policy delivery. In addition, strengths perspective is presented as the theoretical foundation of branding of such human strength—highlighting the benefit of tapping into one’s strengths in generating positive program outcomes (non-profit), favorable product image and increased sales (for-profit), and improved policy impact (public policy). The added value of branding humanship has to do with the consumers’ shift in seeking the virtues that define quality of life, happiness, and meaning in life as they relate to services, products, and policies.
Since of the inception of the Association for Consumer Research (ACR) with the mission “to improve the quality of life and well-being of consumers,” consumer researchers contributed to Consumer Transformative Research (TCR) movement have investigated various areas of social problems such as poverty (Blocker, Ruth, Sridharan, Beckwith, Ekici, Goudie-Hutton, et al., 2013), health (Criag, Burton, & Netemeyer, 2009; Grier & Kumanyika, 2009; Anderson & Ozanne, 2009), motivation (Burroughs, Chaplin, Pandelaere, Norton, Ordabayeva, Gunz, & Dinauer, 2013) as well as multiple methodological considerations. There is much more to be done in this arena for future TCR research and application of humanship as a new concept to make the human agent the empowered driver of non-profit, for-profit, and public decisions for whom the ultimate benefits will return.
The human-centered approach empowers the consumers and will ultimately closes the gap in the principal-agent dilemma—who is the end beneficiary—in the ever more contracted out development of services, products and policies in the context of seller- buyer relationships. This requires transforming the traditional model of focusing on the ‘how’ through transactional relationships—normalized by the ‘give and take’ interactions in market economy—to a new model that values the question of ‘why’ consumers will decide to use the services, products, and policies. Therefore, branding based on humanship becomes a significant strategy in any organizational management. This paper discusses benefits and challenges of branding human strength are discussed in the context of working with low-income consumers through two case studies: Transforming Impossible into Possible (TIP) in Chicago, USA and DAIL Community in South Korea.