The essence of any successful personal selling interaction is effective communication. Evidence from research on personal selling has provided extensive support for the effectiveness of nonverbal communication. Nevertheless, an individuals’ nonverbal communication style is difficult to measure during a sales conversation, as it is “encoded and decoded unconsciously” (Stewart, Hecker, & Graham, 1987, p. 305). This research introduces wearable sensor technology as a novel and objective approach for measuring nonverbal behaviors (i.e., kinesics, paralanguage, and proxemics) in a sales context using sociometric badges (Kim, McFee, Olguin, Waber, & Pentland, 2012). Findings reveal that salespeople can improve their appeal by making use of a more dynamic communication style (i.e., enhanced posture activity and variation in speech and volume), as opposed to a rather static, adhesive, and monotone communication. We contribute to the sales literature by relating a salesperson’s nonverbal communication behaviors to customer responses. In addition, we reveal various implications for sales executives and offer guidance on how to improve their sales effectiveness and performance.
In the last decade, several sellers have experimented with participative pricing, i.e., pricing mechanisms in which the buyers directly influence the price of a transaction. Pay What You Want (PWYW) is the most rigorous participative pricing model. The buyer can set any price, including zero, and the seller cannot refuse to serve the buyer for that price (Kim, Natter, & Spann, 2009). For the seller, PWYW can be advantageous if the buyers pay differentiated prices that are higher than posted prices. However, the profitability of the pricing model is limited to specific situations (Gerpott, 2017). We introduce a modification of PWYW labeled Multi-Tier Pay What You Want (MTPWYW). In MTPWYW, the seller offers different quality levels of a good. The lower-quality version is available under pure PWYW conditions. The higher-quality versions are only available to customers who pay at least a predefined threshold price. Nonetheless, customers can still pay more than the threshold price for the higher-quality good. Therefore, MTPWYW allows the seller to exclude customers who pay low prices for the higher-quality good. We run a field experiment comparing MTPWYW to PWYW by setting up a waffle stand with two quality levels: the basic version consisted of plain waffles only, the higher-quality version included waffles with toppings. In the case of PWYW, the buyers could choose any price they wanted to for both quality levels. In the case of MTPWYW, waffles with toppings were only available after paying at least the threshold price. The results indicate that MTPWYW can be more profitable than PWYW and that it can achieve two forms of price discrimination: endogenous price discrimination and second-degree price discrimination (i.e., self-selection into different quality levels).
This empirical study explores determinants of consumer resistance towards self-driving cars by considering the level of car autonomy. Based on a literature review, this research distinguishes between the effects of functional and psychological barriers on behavioral intention. Several studies have clarified that technological innovation in particular, need to overcome several barriers as a first step, before (potential) users will even start to favor buying such an innovation. Data was collected by an online-survey in December 2017, resulting in an effective sample of 182 respondents. The sample has an average age of M = 24.46 years with 70% male participants and a total of 95% were in possession of a driver license. To ensure that the respondents are able to differentiate between the characteristics or levels of autonomous driving, two independent samples were surveyed on the basis of different scenarios (low and high autonomy). In addition, a structural equation model (SEM) was used to perform an analysis of measurement and structural models using SmartPLS 3.0 software. The findings show that functional and psychological aspects explain consumer resistance towards self-driving cars. Interestingly, the results of a moderation analysis illustrate that the effects of both psychological barriers (i.e., image and traditions/norms) on behavioral intentions vary between a high and a low level of car autonomy. In detail, for those who evaluated the high autonomy scenario (N=92), significant results can be presented for both psychological barriers. Surprisingly, no significant relationship between risk barrier as functional barrier and behavioral intention can be verified. Conclusively, marketers and OEM’s, respectively, should elaborate specific strategies for the different levels of autonomous driving that will be introduced to the market over the next decades. To support these findings, it would be helpful to test the model with a larger sample and new items to test for a potential usage barrier. Moreover, it would be prudent to test additional scenarios and levels of autonomous driving.
Mobile shopping motivations affects the interaction between mobile shoppers and mobile retailers. This study examines how mobile shopping motivations affect value co-creation, customer equity drivers, and customer lifetime value through a structural equation model. Mobile shopping motivations as mobile shoppers’ needs are time saving, right purchase and money saving. To meet mobile shoppers’ needs, mobile shoppers, mobile retailers, and other customers are willing to collaborate. Value co-creation that Yi and Gong (2013) scaled includes customer participation behaviour such as information seeking, information sharing, responsible behaviour, and personal interaction, and customer citizenship behaviour such as feedback, helping, advocacy, and tolerance. The results indicate that mobile shopping motivations are significant determinants of value co-creation behaviours, implying that mobile shopping motivations are driving factors of value co-creation. Customer participation behaviour has significant effects on value equity and brand equity while customer citizenship behaviour shows positive effects on brand equity and relationship. As for customer lifetime value, relationship equity has significant positive effect, while value and brand equity had no significant influence. This study also shows that mobile shopping motivations affect both value equity and relationship equity of mobile shopping apps by improving information sharing, responsible behaviour, and personal interaction, feedback, helping, and advocacy. Value equity and relationship equity also have significant effects on customer lifetime value. The authors discuss the theoretical and managerial implications for their findings.
As companies develop more and more collaborative inter-firm relationships with others on new product development, successful configuration and management of R&D alliance portfolios becomes even more challenging. This paper seeks to understand how different characteristics of a firm’s R&D alliance portfolio influence its ability to acquire external knowledge and how knowledge acquisition in turn influences the firm’s innovation outcomes. The central argument is that a firm’s R&D alliance portfolio strategy entails both knowledge structure benefit and relational benefit. Firms seek to achieve these two different types of benefits by bringing in different desired partners. As a result, a firm’s choice or preferences for different types of R&D alliance partners influence both the scope of external knowledge it is exposed to (knowledge structure benefit) as well as the partner’s willingness to share and the focal firm’s ability to absorb and learn from its partners (relational benefit). While certain strategies may offer firms’ the opportunity to achieve both types of benefits simultaneously, other strategies may force firms to choose one benefit over the other. In order to exploit the value of the acquired knowledge acquired from external partners, firms need to further apply this knowledge to come up with innovative products or services. Literature has further classified new product offerings into radical vs. incremental innovations based on their innovativeness and customer benefit increase. Due to the different characteristics and knowledge requirements for radical vs. incremental innovation, we investigate how different dimensions play differential roles in the development process of these two types of innovation. We empirically tested our hypothesis in the context of pharmaceutical industry with a panel data of 64 firms over 15 years. The statistical results largely support our hypothesis.
The frequent accidents of workplace in Korea make workers consider their more than before. This research aims to investigate the effect of safety climate on safety behavio rs and job satisfaction based on the mediational model to drive proactive and complia nce safety behaviors. The conceptual model of safety behaviors focuses on company’s safety behaviors perceived by workers. The model explains how organizational safety climate affect safety outcomes, compliance safety behaviors and proactive safety behaviors, through the mechanism of situational related factors and personal related factors. In this study, it is proposed that safety knowledge of workers and communication styles moderate the effect of safety climate on compliance safety behaviors and proactive safety behaviors. The data were collected by Korean workers using survey and analyzed by AMOS 22.0.
Over the last decade, the sharing economy that covers systems of organised sharing, bartering, lending, trading, renting, gifting, and swapping among communities of peers on Internet platforms has emerged as a major disruptive pattern in capitalist economies (Botsman and Rogers, 2010). Prior research on the sharing economy has mainly concentrated on young, well-educated urban users and therefore particularly underlined “noble” motivations for participation, such as hedonic, environmental, and political reasons. This research looks beyond this “hipster” view of sharing entrepreneurs and focuses on French deprived mothers who use peer-to-peer (P2P) platforms to survive. Drawing on the literature on subsistence markets in developing countries (e.g., Viswanathan et al., 2014), it investigates Facebook buy-and-sell groups as a new form of subsistence markets in developed countries. Using a multi-method approach involving in-depth interviews, netnography, and participatory observation on Facebook buy-and-sell groups, it more particularly explores how Facebook specific digital features participate in these emerging markets. The findings indicate that subsistence markets’ emergence in developed countries on Facebook is founded on new digital features that (re)create structural, cognitive and relational forms of social capital. This research thus offers interesting contributions and implications for public policy makers engaged in the regulation of the sharing economy.
The Theory of Value Drivers, or Value Driver Theory (Wendee, 2011), is useful in understanding the value creation process in any enterprise. Innovation and strategy are important components in the value creation process. This research, which is based on Value Driver Theory, explored the role that innovation and strategy have in the value creation process and how they are employed in creating enterprise value. Value Driver Theory was discovered using two different, but compatible, research methodologies. The qualitative study used to discover Value Driver Theory explored the effect of business value drivers on the valuation of businesses in the United States and proposed a theory of value drivers. The Value Driver Theory study used two research methods – grounded theory and the Delphi method - to explore the effect of business value drivers on the valuation of businesses in the U.S. and to propose a theory of value drivers. In addition to a list of 72 individual value drivers, which includes innovation and strategy, the theory of value drivers presents a comprehensive value driver possibilities frontier and value driver chain, both of which are part of and are used to explain the theory of value drivers. The theory of value drivers is comprised of 28 propositions that work in concert with the possibilities frontier, the value driver chain, and other elements that are described in the paper. The Value Driver Theory paper differs from other studies as follows: First, the paper significantly extends the notions, ideas, and concepts from previous studies on value drivers. Second, the paper creates a comprehensive classification scheme for value drivers and has identified many more characteristics and properties of value drivers than previous studies. Third, the study identified 72 specific value drivers through the literature review and the Delphi study. Fourth, the paper consolidates the material from the literature review and the result of the research conducted through the Delphi and grounded theory studies and codifies it into the theory of value drivers. Subsequent to the publication of the paper on Value Driver Theory, new conceptual frameworks and tools have been developed to enhance the usefulness of Value Driver Theory in evaluating the enterprise value creation process. These conceptual frameworks and research tools were explored in the current study in general terms; and particularly as to how they relate to and enhance the use of innovation and strategy in the value creation process.
For better understanding user behavior, especially exploring what factors would motivate user engagement in sharing economy and whether there are some differences between people behaviors in sharing economy and conventional economy, this research developed a conceptual framework of user engagement (UE) in sharing economy on the basis of customer engagement and related literature and tested it through empirical analysis.
University-industry R&D collaboration is a key driver of participating firms’ technological capability. However, there is still debate on the determinants of a firm’s innovation performance, especially in relation to the characteristics of collaboration and organizational slack. We lay the foundation for our theoretical framework by establishing testable hypotheses on how the characteristics of university-industry collaboration and organizational slack affect participating firms’ innovation performance. Based on a panel data of 2914 firm-year cases for the top 200 U.S. R&D firms, estimates obtained from quantitative techniques produce consistent results and support our predictions. Collaboration breadth, network centrality, unabsorbed slack, collaboration experience and collaboration proactiveness are associated with innovation performance. Moreover, a firm’s higher absorbed slack exerts a negative influence on innovation performance. The managerial implications and future research directions are discussed.
The rise of the sharing economy is transforming the tourism and hospitality industry (So, Oh, and Min, 2018; Zhu, So, and Hudson, 2017). The growing popularity of Airbnb has led a number of recent studies to investigate consumer value derived from such innovative consumption model. In the context of Airbnb, research shows that perceived value motivated travelers to choose Airbnb (Mao & Lyu, 2017). However, the theoretical construct of consumer value includes multiple dimensions, such as emotional value, social value, price value, and quality value, and how each dimension contributes to consumer attitudes and behavioral intentions toward Airbnb is unexplored. Therefore, this study sets forth a national field investigation to provide a holistic understanding of consumer evaluation of various value dimensions with respect to Airbnb experiences. To empirically test the proposed model, a quantitative, national online survey was conducted using Qualtrics Online Sample. After checking the performance of the measurement model, we evaluated the results of the structural model. The results show that emotional value and quality value significantly explain overall attitude toward Airbnb, whereas, price value and social value were not significant in predicting attitude. However, price value and social value, together with overall attitude, significantly explain consumer’s purchase intention. The results show that the t values from bootstrapping were greater than 1.96, and the R2 values for endogenous variables well exceeded .26. All exogenous constructs producing effect sizes ranging from small to large. In addition, the Q2 for the endogenous latent constructs were well above the threshold, with .421 for overall attitude and .472 for behavioral intentions, thereby substantiating the structural soundness of the proposed model.
Introduction
Marketing research frequently highlights the role of branding in customer’s decision making in a variety of sectors (Khan et al., 2015). Especially in cases where brands are related to the provision of services, creating competitive experiences seems to be an aspect of paramount importance for marketers (Hartman, et al., 2009). For this reason branding could be regarded as a means to improve a business’s performance (Hsu et al., 2011). Gilmore and Pine (2002) confirm the necessity for a brand to be associated with competitive characteristics, since it is widely acceptable that just selling a product is not enough, thus, the customer should go through a memorable experience in order to support, and, even more, to stay loyal to a brand. According to Liu et al. (2017) in the hotel industry visitors’ brand attitude and brand performance could mediate or moderate loyalty. Although the tourism and hospitality industry heavily relates on experience (Yuan & Wu, 2008), literature does not adequately examine the respective field (Ritchie & Hudson, 2009). This drawback combined with the new tendencies generated by the globalisation (Khan et al., 2015) lead to the need of further research which this study contributes to. The study focuses on hotel branding and existing literature in order to examine the way that brand influences tourists’ purchasing intentions and loyalty. In order to achieve this aim, the role of income and age on brand identification, the study examines the impact of brand identification, image and awareness in visitor satisfaction and price and quality issues, resulting to the formulation of loyalty. The theoretical contribution of the study concerns the examination of the influence of branding on visitors’ loyalty in accommodation establishments, something that is under-researched from previous studies, especially when dealing with destinations heavily affected by an economic crisis.
Proposed Model
The proposed model is based on the combination of two theories, which are the Theory of Planned Behaviour (TPB) and the Theory of Reasoned Action (TRA). Following Ajzen (1991) TPB focuses on three determinants of the human behaviour: (i) reactions towards a basic behaviour (ii) attitude towards others’ approval or disapproval of a behaviour, and (iii) perceptions of the degree of difficulty in performing a behaviour. Furthermore, TRA is used in order to predict an individual’s behaviour based on their existing attitudes and intentions, defined by the expectations of the individual in terms of its attitudinal outcomes (Fishbein & Ajzen, 1975; Untaru et al., 2016). Based on TPB and TRA, the study structures a linear model, formulating its constructs with the use of previous studies of Davvetas and Diamantopoulos (2017), Escalas and Bettman (2003; 2005), Kim and Kim (2005), Liu et al. (2017), Nam et al. (2011), Popp and Woratschek (2017), Sanchez et.al. (2006), Sincovics et al. (2010), Tarnanidis et al. (2015), Tsiros and Mittal (2000), and Yoo, et al. (2000). The model suggests that loyalty is influenced by visitor satisfaction and price quality issues, whilst the latter two constructs are impacted by brand aspects (identification; name; awareness). The following hypotheses were formulated:
H1. Brand identification has a direct positive influence on satisfaction.
H2. Brand identification has a direct positive influence on price and quality.
H3. Satisfaction is positively affected by brand image.
H4. Price-quality nexus is positively affected by brand image.
H5. Brand awareness positively influences satisfaction.
H6. Brand awareness has a direct impact on price-quality nexus.
H7. Loyalty is positively affected by satisfaction.
H8. Price-quality nexus exert direct influence on loyalty.
Methodology
The research was held at the Athens International Airport “Eleftherios Venizelos” from June till August 2017. The respondents were adult tourists visiting Athens for holidays. The study was based on structured questionnaires, which are deemed suitable in cases when quantitative data are required, especially in public spaces and wherever the sample is self-selecting (e.g. tourist destinations, airports etc.) (Brotherton, 2015). Following Akis et al. (1996), for the study 95% minimum level of confidence, and 5% statistical error was selected. While the analogy 50/50 between positive and negative views applies, with N>20 and cumulative probability (Z) is 1.96 the sample size is calculated as follows:
Out of 400 respondents 328 completed their questionnaires successfully. The response rate was 82 per cent. The questionnaire is based on previous research and consists of 57 Likert scale statements (1 strongly disagree; 5 strongly agree), also examining the socio-demographics of age and income.
Results
Structural Equation Model (SEM) was employed for the analysis of linear relations. Figure 1 illustrates the generated standardised coefficients of the model. Confirmatory Factor Analysis (CFA) was applied for testing the compatibility of the data with the proposed model that was generated from respective previous research. Following Kline’s (2010) selection of indices’ importance, the study has generated the following indices: χ2=327.206, df=172, χ2/df=1.902 [acceptable value: 0≤χ2/df≤2; Schermelleh-Engel, Moosbrugger & Müller (2003)], CFI=.907, [acceptable value is when CFI is close to 1.0; Weston & Gore (2006)], SRMR=.769 [acceptable value is when SRMR<.8; Hu & Bentler (1999)], and RMSEA=.487 [acceptable value is when RMSEA<.5; Browne & Cudeck (1993)]. In factor analysis (Table 1) all values less than .4 were suppressed in an effort to evaluate higher coefficients (Norman & Streiner, 2008). The overall Cronbach A was .904, whilst in all constructs it has exceeded the minimum limit of .7. In addition, the Average Variance Explained (AVE) was higher than .5 [minimum acceptable .5; Kim (2014)].
Managerial Implications
Several managerial implications could be generated from this study. First, the research can provide useful guidance to tourism and hospitality stakeholders, on reforming brand strategies accordingly in terms of achieving higher customer satisfaction and optimal outputs from price-quality nexus. Through these aspects the accommodation establishments and destinations can become more competitive and competent to pull prospective visitors. The study also constitutes a useful guide for market segmentation in terms of the influence of income and age in brand aspects. As the results indicate, the substantial influence of socio-demographics on the formulation of brand aspects can significantly influence targeted marketing and promotional activities for both, hotels and destinations.
Limitations
Despite the research’s theoretical contribution, several limitations need to be highlighted. Since the survey was conducted in a destination heavily affected by the current economic crisis (Athens) the influence of brand and loyalty aspects may differ in other metropolitan destinations having other characteristics. Therefore, any generalization should be made with caution. Moreover, the examination of different groups (i.e.: accommodation managers/owners; destination authorities) may generate different outcomes in terms of branding focus and loyalty formulation. Thus, the evaluation of perspectives of tourism and hospitality stakeholders is essential for the holistic approach of these matters. Finally, since perceptions may change over time, the repetition of this research may contribute to the understanding of the evolution of perspectives and their extent of alteration.
In the context of Sunday brunch evaluation, this research found that US participants perceived a menu price with 15% customary tipping as less expensive than the same price with a 15% mandatory service gratuity. In addition, they expressed greater intent to patronize a restaurant when it is under voluntary tipping than when it is under a corresponding mandatory service gratuity. More importantly, the results showed that participants’ use of surcharge information and perceived surcharge fairness acted in parallel and with similar strengths as mediators of the relationship between surcharge policy and menu price perception. However, the relationship between surcharge policy and patronage intent was fully mediated by participants’ perceived surcharge fairness. The findings of the present research have important implications for the US food service industry as a growing number of restaurants have adopted mandatory service gratuity in place of voluntary tipping in recent years. Although the decision to switch to mandatory service gratuity is mostly driven by concerns about internal customers such as employee compensation, this research suggests that it may have a negative impact on external customers in terms of menu price perception and patronage intent. Consequently, restaurants, especially those targeting price-sensitive clientele, should think twice before jumping on the mandatory gratuity bandwagon.
The antecedents of customer loyalty have been a subject of interest to marketers and researchers alike. Few studies have investigated the moderating influence of brand image on customer satisfaction and loyalty. A framework was developed and tested to link casino service quality with satisfaction (affective and cognitive satisfaction) and loyalty (revisit intention and willingness to recommend). The influence of brand image as a moderator was also proposed. Quantitative surveys with 240 mainland Chinese tourists, who were the major source of tourists in Macau, were conducted. All the proposed hypotheses were supported. This study contribute knowledge on customers’ satisfaction and loyalty to casinos by explaining the interrelationships between casino brand image, casino service, customer satisfaction and loyalty. The research demonstrates that satisfied customers are more inclined to revisit and recommend the casino. These relations are stronger for customers who scored higher in image than those who scored lower. The study provides promotional marketing strategies for the casino industry and theoretical suggestions for future study.
In recent years, terrorism has become one of the major world's concerns. According to the Institute for Economics and Peace (2016), among OECD member countries, deaths from terrorism have dramatically increased in 2015, rising by 650% relative to 2014. France stands as the country with the largest increase of deaths from 2014 to 2015. Recent terrorist attacks in France have triggered widespread awareness of this tragic phenomenon. Comparatively, Israel is a country that has experienced chronic terror attacks since the early 1960s, creating a high level of awareness that has become part of the citizen’s daily life, as attacks can occur in restaurants, bars, buses, and stores, or in the streets (Ben-David & Cohen-Louck, 2010). Due to their different experiences of terror, we chose to focus our study on France and Israel. In line with the terror management theory (Greenberg et al., 1986), which suggests that death reminders influence behaviors, these terror threats may have consequences on feelings of well-being (Maguen et al., 2008). Most studies concerning the effects of terrorism on consumer behaviour have focused on personal characteristics (Cohen-Louck, 2016). However, to the best of our knowledge, studies have yet to characterize customers' behaviors in different service situations in the wake of a terrorist attack and the factors influencing these behaviors. This will be the main contribution of the current study. A qualitative study has been conducted in France and Israel. We focused on both utilitarian (modes of transportation) and hedonic (cinema, restaurants, bars) services (Bradley & LaFleur, 2016). The study highlighted two specific criteria that could affect customer behavior: time from the terrorist attack and its proximity to the respondent. In-depth interviews were conducted with customers from France (22) and Israel (29; total n=51). Participants were interviewed on their behaviors, either immediately following a terror attack or one month after. Customer strategies were found to be similar and long termed in both France and Israel. However, Israeli customer responses are more personal and emotional, more detailed, more proactive in protecting themselves. The passage of time from the attack has less effect on Israelis’ chosen strategies. Among French respondents, the effect of time is evident: attacks have a significant impact on behaviours immediately after their occurrence, compared with a month later. Whereas the avoidance strategy is mainly adopted immediately after the attack, as time passes, there is a kind of resignation of the situation. The perception of internal vs. external control over one's life seems also to be an important variable that may explain behaviour in both groups.
This research aims to examine the interplay of fluency and framing in consumers’ perception of online review helpfulness. We propose to conduct three experiments to study how consumers evaluate a product review as presented in easy- vs. hard-to-read font and promotion vs. prevention frame.
INTRODUCTION
Nowadays consumers are often exposed to and influenced by online product reviews. These reviews are generated and posted by consumers on online shopping websites, such as Amazon.com. Obviously, the content of an online product review, either appraisal or criticism, would offer valuable information for consumers to make purchase decisions. The almost immediate and strong impact of product reviews on a prospective consumer’s decision would not be easily achieved by other marketing attempts (Daugherty, Eastin, & Bright, 2013; Ghose & Ipeirotis, 2006; Mahajan, Muller, & Kerin, 1984). In particular, past research has proposed that, if a review is believed to be more helpful it is more likely to add value for a future customer (Mudambi & Schuff, 2010; Yin, Bond, & Zhang, 2014). In this research, we would like to research what makes a review helpful. According to consumer psychology literature, metacognitive cues, such as fluency, would play an important role in consumer judgments (Lee, 2004; Schwarz, 2004). So, we first propose that fluency, the ease of information processing, could influence perceived review helpfulness. Moreover, a growing body of research has suggested some factors that could interact with fluency when influencing consumer decisions and judgments (Shah, Alter, & Oppenheimer, 2010; Tsai & McGill, 2010). For example, framing effect has been extensively studied in consumer decision making literature (Block & Keller, 1995; Rothman, Salovey, Antone, Keough, & Martin, 1993). Accordingly, we would like to study the effect of framing, emphasizing on gain vs. loss, on perceived review helpfulness. Specifically, we research whether framing a review as promotion- vs. prevention-focused would moderate fluency effect on consumers’ perception of online product reviews. To sum up, in this research we investigate how consumers’ evaluation on online product reviews is influenced by manipulating the review to be promotion- vs. preventionoriented and easy- vs. hard-to-read. To our best understanding, little of past research has directly examined the interplay of fluency and framing in consumer judgments, especially in social media contexts. We wish to collect further evidence regarding the underlying rationale involving fluency and framing effects on consumers’ perception of review helpfulness.
THEORETICAL DEVELOPMENT AND HYPOTHESES
Researchers have defined online reviews as peer-generated product evaluations posted on a company or third party website (Mudambi & Schuff, 2010). To better understand how consumers evaluate online reviews, we propose to examine the effects of fluency and framing on perceived review helpfulness. First, fluency, defined as the ease of information processing, could make a strong impact on various judgments, including perceived risk, liking, and confidence (Alter & Oppenheimer, 2009; Novemsky, Dhar, & Schwarz, 2007; Reber, Winkielman, & Schwarz, 1998). We notice that limited empirical work has yet addressed the relationship between fluency and perceived review helpfulness, although fluency is easy to manipulate and could have overwhelming effect on judgments. Rather, marketing and social media researchers have long been focused on content- and emotion-based features of online reviews in relation to review helpfulness (Moore, 2015; Mudambi & Schuff, 2010). Therefore, this research aims to address this limitation by exploring fluency effect on review helpfulness. Second, we suggest that framing, by focusing on promotion vs. prevention, could influence consumers’ perception of online product reviews. In particular, regulatory focus literature has revealed that, message framing would influence the effectiveness of persuasion (Higgins, 1998; Meyerowitz & Chaiken, 1987; Tykocinski, Higgins, & Chaiken, 1994). To emphasize, past research has gained mixed results about promotionvs. prevention-focused messages in persuasion (Block & Keller, 1995; Rothman et al., 1993). In this research we will have a close look at framing and explore its effect on online review helpfulness. Third, we would like to test whether a gain (vs. loss) frame is more effective when disfluency (vs. fluency) is experienced. In a past study, Shah, Alter, and Oppenheimer (2010) argue that fluency (vs. disfluency) makes people feel they are close to (vs. distant from) a stimulus, and then become more likely to be engaged in low (vs. high) level thinking. According to construal level theory, when people think concretely they are more likely to focus on concrete, specific details; by contrast, when they think abstractly they are more likely to focus on abstract, global properties (Trope & Liberman, 2003). In addition, past research has found that mind-set, or thinking concretely vs. abstractly, could interact with framing in consumer judgments (White, MacDonnell, & Dhal, 2011). Regarding the interaction between fluency and framing, mixed results are found in literature. On the one hand, Shah and colleagues (2010) have suggested that, disfluency is related to high-level thinking, and thus would make a promotion frame more effective. On the other hand, researchers have proposed that, disfluency induces negative feelings, and thus would make a prevention frame more effective (White, MacDonnell, & Dhal, 2011). Given the disagreement in past findings, we would like to further examine the underlying mechanisms for consumers to perceive online product reviews presented in easy vs. hard font and promotion vs. prevention frame. Following these studies, we will conduct three experiments to test fluency and framing effects on perceived review helpfulness. Our hypotheses are listed below:
H1: Consumers perceive an online product review in easy-to-read font (vs. hard-to-read) as more helpful.
H2-a: Consumers perceive an online product review in easy-to-read font and a promotion (vs. prevention) frame as more helpful.
H2-b: Consumers perceive an online product review in easy-to-read font and a prevention (vs. promotion) frame as more helpful.
H3-a: Consumers perceive an online product review in hard-to-read font and a prevention (vs. promotion) frame as more helpful.
H3-b: Consumers perceive an online product review in hard-to-read font and a promotion (vs. prevention) frame as more helpful.
RESEARCH METHOD
We propose three experiments to examine fluency and framing effects on perceived review helpfulness, by using an actual product review collected from Amazon.com. Two hundred undergraduate students from a public university in mainland China will participate in our experiments. In Experiment 1, we will investigate the main effect of fluency on review helpfulness. It is expected that, fluency would have significant effect on perceived review helpfulness. A review on a home speaker – Amazon Echo Dot is selected, and then rated by three individual researchers as relatively neutral and objective. We manipulate fluency by displaying the review in an easy- vs. hard-to-read font, respectively. After reading the review, using 7-point scales participants rate fluency (1 = very difficult, 7 = very easy) and review helpfulness (1 = not helpful at all, 7 = very helpful). To test fluency effect as predicted in H1, we will conduct a t-test. Also, using t-test we will check if the manipulation is successful. In Experiments 2 and 3, we will examine the main effect of framing on review helpfulness, as well as the interaction between fluency and framing. As discussed earlier, past research suggests two opposing expectations. As stated in H2-a and H3-a, promotion (vs. prevention) frame is more effective when a review is shown in easy (vs. hard) font. However, H2-b and H3-b are holding the contradictory predictions. Here, the review is modified to be more focused on promotion vs. prevention respectively, shown in either easy- or hard-to-read font. In each experiment, half of the participants read the Amazon Echo Dot’s review in a promotion frame and the other half will process the review in a prevention frame. In both promotion and prevention conditions, participants are randomly assigned to read the review in an easy- or hard-to-read font. To test our hypotheses, we will employ a 2 (easy vs. hard) x 2 (promotion vs. prevention) ANOVA. In addition, to understand the rationale of consumers’ making evaluation on reviews, we ask participants to use information contained in the review to write a short description of the product. So that, we will be able to capture participants’ thinking mode. Also, we ask participants to rate review valence (1 = very negative, 7 = very positive) and describe their feelings after reading the review, in order to examine if framing would result in different feelings. Then, we analyze these self-reported responses, in attempts to determine either participants’ mind-set (concrete vs. abstract) or their feelings (positive vs. negative) would be more prevalent when they process and evaluate the review. A mediational analysis will be conducted to explore the mechanisms underlying consumers’ perception of review helpfulness.
DISCUSSION
The aim of this research is to test whether fluency and framing would influence perceived online review helpfulness. Also, our research is designed to explore the interplay of fluency and framing in review perception. The completed work will present empirical results to demonstrate the roles of fluency and framing in consumers’ review evaluations, through the three experiments as proposed. Theoretically, our research will contribute to existing literature by addressing the effects of fluency and framing on consumer decision making, in the context of online marketing communications. Practically, our research will provide insights for marketers and consumers to engage in communications via online review systems. Given that fluency and framing are considered as salient cues to influence consumer decisions, marketers should learn how to leverage these factors while shaping the framework in which online product information is created and shared by consumers.
INTRODUCTION
Online marketing has grown rapidly over the past years and has become a key component when making marketing mix decisions. Over 2014, internet advertising revenues in the U.S. increased 16% from the previous year to a total of $49.5 billion (IAB 2015). In addition, according to Online Publisher Association, video advertisements have reached the majority of the Internet users (66%), and have resulted in an action from almost half of the users. The significant business opportunities provided by the online environment are reflected as the increasing amount of attention for online advertising in academic research (Mei et al. 2008). It is yet to be researched how online videos and the accompanied online video advertisements interact and how advertisement customization can play a role to possibly optimize user experience and therefore the effectiveness of online video advertisements. Particularly, congruity forms a key opportunity for customization in embedded online video advertising. Congruity is defined as consistency between the ad and video or the advertised product and video (Moore et al. 2005). Evidences in extent literature have shown the positive effects of congruity on, for example, the processing fluency of the ad, the consumer attitudes towards the ad and the persuasiveness of the ad (Moore et al. 2005). However, in the context of online video advertising, limited research has been conducted on this topic. The main goal of this research is to explore the effect of online video advertising congruity on consumer attitudes towards the online video, advertisement and advertised product. Therefore, this research attempts to examine the information processing of a consumer and how congruity acts in this process to affect consumer's preferences. Due to the nature of this research question, an online experiment is used to test the hypothesized relationships of the conceptual model. The collected data in this study were examined using partial least squares (PLS).
CONGRUITY AND PROCESSING FLUENCY
Congruity can be defined in terms of similarity. The perceived similarity between two given stimuli of equal importance, determines their congruity (Rokeach & Rothman, 1965). Extensive research has been conducted on the effects of congruity in advertising. For example, studies have focused on congruity between involvement types of ads and TV programs (Sharma, 2000), viewer's mood-ad content congruity (Kamins, Marks, & Skinner, 1991), and program context- advertised product congruity (De Pelsmacker, Geuens, & Anckaert, 2002). Previous research from (Moore, Stammerjohan, & Coulter, 2005) has shown that congruity has a positive effect on consumer attitudes. Research on online banner advertisements on websites has indicated that advertisements should be consistent with the website brand (Newman, Stem Jr, & Sprott, 2004). Appeal congruity can then be achieved when the appeal of the online video and the appeal of the embedded ad are similar: an emotional (affective) video paired with an emotional ad can be deemed congruent. Similarly, an informational ad will be more effective when embedded in an informational video. In this study, Ad-and-Video congruity represents such type of congruity. Based on extent research on processing fluency, it can be assumed that online video advertising congruity, either in terms of appeal or content, will result in more processing ease of the ad as the information provided by the video and ad is similar. The following hypotheses are formulated:
Hypothesis 1: Congruity between the appeal of the online video and the appeal of the advertisement has a positive effect on processing fluency.
Hypothesis 2: Congruity between content of the online video and the advertised product has a positive effect on processing fluency.
We further propose that the above process is influenced by ad/video appeal or execution format (emotional vs. informational). An informational ad format is defined as an ad execution designed to appeal to the rationality of the receiver by using objective information describing a brand’s attributes or benefits, while an emotional ad format as an ad execution designed to appeal to the receiver’s emotions by using drama, mood, music and other emotion-eliciting strategies (Yoo & MacInnis, 2005). When an individual is watching an emotional ad or video, the possible effect of Ad-video or Product-video congruity on a consumer's processing fluency will be attenuated. The following hypotheses are formulated:
Hypothesis 3a: Congruity between the appeal of online video and the appeal of embedded advertisement has a stronger effect on processing fluency for informational appeals than for emotional appeals.
Hypothesis 3b: Congruity between content of the online video and the advertised product has a stronger effect on processing fluency for informational contents than for emotional contents.
Involvement and processing fluency
With regards to online advertising, research has shown that the degree to which a consumer is involved with the topic of a website also affects the processing of online advertising. It can be argued that when an individual is not involved in watching an online video, its effect on a consumer's processing fluency will be absent. On the other hand, when a consumer is highly involved in watching an online video, it is more likely that the viewer experiences processing fluency. As a result, in this situation, involvement may actually affect processing fluency of the viewer. Based on these findings, the following hypothesis is formulated:
Hypothesis 4: Involvement has a positive effect on the processing fluency of consumers.
Post-viewing attitudes
Research has also indicated the mediating role of an individual’s affective response from processing fluency to its evaluation (Winkielman & Cacioppo, 2001). A viewer of an online video is shown an ad that has the same appeal as the video, making it rather easy to process. The viewer appreciates this as it takes less effort to view the ad and to relate to advertised product to the content of the video and the viewer's interests. As a result the viewer is more likely to generate a positive attitude towards the ad, the advertised product and the video. The insights lead to the formulation of the following three hypotheses:
Hypothesis 5: Processing fluency has a positive effect on the attitude towards the online video.
Hypothesis 6: Processing fluency has a positive effect on the attitude towards the advertisement.
Hypothesis 7: Processing fluency has a positive effect on the attitude towards the advertised product.
Figure 1 shows the conceptual model, which summarises the hypothesized relationships.
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METHODOLOGY
We conducted an experiment in the form of a 2 (type of appeal: informational vs. emotional) × 2 (Ad-Video congruity: congruent vs. incongruent) × 2 (Product-Video congruity: congruent vs. incongruent) full-factorial between-subject design. Video and advertisement appeal are each measured by the three items derived from the study by Moore et al. (1995) on the individual difference in response to advertising appeal. Processing fluency is measured by two items of the study by Lee and Aker (2004). Three items of the study from Zaichowsky (1985) are used to measure the involvement of the participants. The three items related to the attitude towards the video, advertisement and product are derived from the respective studies from Russell et al. (2004) and Kozup, Creyer and Burton (2003). Returned questionnaires numbered 276 responses with 24 incomplete data, resulting in 252 valid responses for data analysis. The collected data in this study were analyzed using partial least squares (PLS).
Measurement model
A measurement model was used to evaluate reliability, convergent validity, and discriminate validity. A structural model was used to determine the significance and association of each hypothesized path, and the explained variance. Reliability was examined by composite reliability values above the 0.70 benchmark (Fornell and Larcker 1981). Results show all values above 0.70, indicating satisfactory reliability. Convergent validity was examined by all indicator loadings that were significant and exceeding 0.7 and average variance extracted (AVE) by each construct exceeding 0.50 (Fornell and Larcker 1981). Results shows all indicator loadings above 0.70 and all AVEs exceeding 0.50, indicating satisfactory convergent validity. Discriminant validity is demonstrated by the square root of the AVE for each construct exceeding the correlations between the constructs (Chin 1998). These results indicate that the proposed models have good reliability and validity.
Structure model
Figure 2 shows the standardized path coefficient, the significance of each hypothesized path and the variance explained (R²). H1 and H2 investigate the effect of Ad-Video congruity and Product-Video congruity on processing fluency. Results show that Product-Video congruity is positively related to processing fluency (β=0.115, t-value=2.131, p<0.05), supporting H2. However, the effect of Ad-Video congruity on processing fluency is not significant ((β=0.022, t-value=0.377, p>0.05). Thus, H1 is not supported. H3a and H3b examine the moderating effect of the type of appeal. The hypothesis testing of H3a and H3b is discussed under the multi-group analysis (PLS-MGA). H4 proposes that involvement has a positive effect on the processing fluency of consumers, which is supported by the results (β=0.399, tvalue= 6.778, p<0.05). H5, H6, and H7 investigate the effects of processing fluency on post-viewing attitudes. Processing fluency is positively related to attitude towards the video (β=0.192, t-value=2.838, p<0.05), advertisement (β=0.426, t-value=7.607, p<0.05) and the focal product (β=0.422, t-value=7.171, p<0.05). These results support H5, H6 and H7.
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We hypothesize that the type of appeal (informational or emotional) moderates the effects of Ad-Video congruity and Product-Video congruity on processing fluency in H3a and H3b. Specifically, the effects on under informational appeal condition are stronger. To test for group differences, we applied a multi-group analysis (PLS-MGA) approach. The PLS-MGA results for both informational and emotional groups, show that that the positive effect of Ad-Video congruity on processing fluency is only significant for informational appeals (β=.150, t-value=1.99, p<.05) but not emotional appeal (β=-.010, t-value=.15, p>.05), supporting H3a. Similarly, results show that that the positive effects of Product-Video congruity on processing fluency is only significant for informational appeals (β=.170, t-value=2.27, p<.05) but not emotional appeal (β=.050, t-value=.57, p>.05), supporting H3b.
CONCLUSION
Results show that congruity is related to the improvement of processing fluency only for informational ads/videos. This finding provides some support to the processing fluency theory which holds that less discrepant information should result in a higher processing fluency and extends the existing literature by investigating the appeal/execution format as a boundary condition. Involvement itself has been found to be positively related to processing fluency. Thus, when a consumer is initially more involved in watching a video, the processing fluency increases. This is in line with previous research that proved that involvement positively affects the attention that is given to advertisements and ultimately also the attitude of consumers.
Introduction
In the modern society, online shopping has been expanding and become part of people's lives. With the development of online shopping, people's online shopping awareness have increased. In the purchase process, people focus on the information, especially online evaluation. Online shopping population is becoming more aware of the negative online evaluation, businesses are more and more attention to the negative comments, but sellers lack strategies and methods to deal with negative evaluation, and the reply function offered by site are rarely used. Compared with traditional Mouth Marketing, Internet Word of Mouth Marketing(eWOM) has such characteristics as anonymity, non confrontation, wide spread and fast spread. However, it is difficult to imagine the impact of all the internet word-of-mouth information on the consumer's willingness to buy. They need to criticize and screen the information before they are used because of the large amount of information that consumers have come into contact with. Online product evaluation (abbreviated evaluation) is a kind of internet word-of-mouth. As a new means and platform for network communication, it has its own unique characteristics. With the rapid development of electronic commerce in China, the content of evaluation has become an important basis for the purchase decision of Internet consumers. In the field of marketing, Gao Xiang finds that consumers usually think that negative information is more judgmental value than positive information, so they will rely more on the negative information when buying decisions. Therefore, it is of great significance to the research of negative online evaluation. In the field of marketing, Gao Xiang found that consumers generally think that negative information is more judgmental than positive information, so they rely more on negative information for decision making in purchasing. Therefore, the research of negative online evaluation is significance. Whether the business can deal with negative evaluation effectively becomes the key to success in sales volume. Burnkrant and Consineau believes that the herd effect is the process of psychological change that people consciously and unconsciously take the opinions of the majority as the criterion to make judgments and make impressions. Group characteristics, such as scale, and the proportion of others' opinions, will affect the herd effect. The current research shows that the more people hold the same view, more people will agree with this view. In other words, the individual will be affected by the majority of the group's opinions. Businesses reply with negative evaluations in various ways as a result of the negative impact of negative reviews. It takes the C2C's largest platform, Taobao, as an example. Some seller cooperate with illegal companies to harass buyers who do not modify the review, and coerce buyers to modify the evaluation. This kind of problem has been a hot issue in society for some time. At the same time, the C2C network platform provides a function that the seller can respond to the buyer's evaluation. But few seller use it.
Theoretical Development
Businesses reply with negative evaluations in various ways as a result of the negative impact of negative reviews. It takes the C2C's largest platform, Taobao, as an example. Some seller cooperate with illegal companies to harass buyers who do not modify the review, and coerce buyers to modify the evaluation. This kind of problem has been a hot issue in society for some time. At the same time, the C2C network platform provides a function that the seller can respond to the buyer's evaluation. But few seller use it. This study further deepens the related research on the negative evaluation of the network. More attention has been paid to the negative evaluation itself and the analysis of its content, publisher characteristics and evaluation results. There are few studies on how to respond to negative evaluations and to use the business response function of a website. This paper studies the relationship between the response of the merchant to the negative online reviews and the customer's purchase intention and the internal influence mechanism, and deepens the previous research. At the same time, it provides some inspiration for the follow-up internet word-of-mouth research. This study also enriches the related research on consumer perceived risk. Previous studies have shown that consumers' purchase behavior and willingness to purchase will be affected by perceived risk. And communication with the seller can reduce perceived risk to a certain extent.
Research Design
Based on the above background, this paper make a study about the sellers’ reply of negative evaluation and potential purchasing intention. Based on the online reviews of consumer perception of risk, the basis of relevant literature consumer consumption and purchase willingness, combined with consumer behavior theory, service recovery theory, empathy theory and attribution theory, build research model in this paper. On this basis, this paper collected and analyzed the data through literature research, experimental scenarios, questionnaires and statistical analysis, and verify hypothesis based on data analysis.
Results and Conclusion
Through data analysis, the main conclusions are as follows: The reply to the negative comments can affect consumers' perceived risk and purchasing intention; consumers' perceived risk plays an intermediate role between the reply to the negative and purchasing intention. Product type plays a regulating role between the way of reply and consumers' perceived risk. For Search goods, external and internal attribution explanatory reply made no significant difference in affecting consumer consumers' perceived risk. Perceived risk under external attribution is lower than under the internal attribution. On the basis of research, this paper put forward online communication strategies for C2C business and help sellers do business better.
This study aims to examine the relationship among media multitasking, impulse buying, and psychological well-being. Two competing perspectives exist to explain the relationship. The breadth-biased cognitive control perspective suggests that media multitasking influences impulse buying, which in turn influences affective well-being (i.e., depression or anxiety) and cognitive well-being (i.e., life satisfaction)(van der Schuur, Baumgartner, Sumter, & Valkenburg, 2015). The mood regulation perspective, instead, suggests that cognitive well-being (i.e., life satisfaction) influences media multitasking, which in turn influences impulse buying, and consequently affective well-being (i.e., depression or anxiety)(Seinauskiene, Mascinskiene, Petrike, & Rutelione, 2016). This study employed an online survey across three universities located in northern, central and southern Taiwan. A total of 662 valid responses were obtained. The results supported the breadth-biased cognitive control model.
This conceptual paper drew on the uses and gratifications theory to theorize about what drives consumers to engage in social media activation campaigns. This paper proposed that satisfying the needs for integration and social interaction, personal identity, information seeking, entertainment, and utilitarian reward through a social media activation campaign can enhance consumers‘ engagement with it. Finally the way in which cognitive, affective, and behavioral engagement with such campaigns affect brand image was explained theoretically. The developed conceptual framework can help marketing managers to create engaging social media activation campaigns, thereby improving the image of their brands.