Purpose – This paper holds a purpose to examine the influence of perceived utility, contextual relevance and lifestyle on the acceptance of mobile advertising among millennials in Indonesia (specifically in Bandung). The three factors represent an extension of the general model of mobile advertising which is largely influenced by the Theory of Reasoned Action (TRA). The factors are proposed to extend the model to include factors at individual (receiver), object (message) and contextual levels. Lifestyle, Perceived Utility, and Contextual Relevance are factors at individual, object and context that are posited to influence the acceptance of mobile advertising in this study. Specifically, the current study is aimed at elaborating the role of those factors in influencing the acceptance of mobile advertising among millennials in Bandung, Indonesia.
Relevant theories – mobile marketing definition and scope from various literature, Theory of Reasoned Action (TRA), theory of perceived utility, consumers’ utilization of contextual information in mobile advertising, and the influence of lifestyle – as representation of individual factor – on mobile advertising acceptance are the most relevant theories for the current paper.
Design/methodology/approach – The research was conducted by devising a new model that includes acceptance of mobile advertising, attitude toward mobile advertising, subjective norm in relation to mobile advertising, perceived utility of mobile advertising, contextual relevance of message and income (as representation of individual lifestyle). The questionnaires distributed to young adults segment within varsity area. The data is then examined and evaluated through structural equation modelling (SEM) which requires analysis on measurement and path model.
Findings – The study resulted in several findings, mostly confirming proposed hypotheses in varying degrees. The results conclude that attitude is of great importance in the acceptance of mobile advertising. Subjective norms and contextual relevance are positively related to attitudes — which lead to acceptance, while both perceived utility and income in negative relations to attitude and acceptance consecutively.
Research implications and limitations – This study adds up to the growing amount of related research in various countries. Companies making use of the mobile advertising as part of their promotional strategies should always think of the manner and matter by which the advertisements arrive while serving as benefit for marketers and consumers. A good mobile advertising strategy will put more effort into giving useful information that is appropriate to the context and consumer segments it targeted. This research is conducted on respondents from Indonesian consumers, specifically in the area of Bandung, which may not represent the other segments of users of mobile advertising. In addition, the case covers a convenience sample of consumers that may again impact the representativeness of the research findings.
Originality/value – This study provides findings on the effects of contingency factors that have been missing in the previous research on the acceptance of mobile advertising.
Paper type – Applied research
Purpose – Research on technology acceptance involves one's psychological aspect, known as technology readiness. Particularly in the digital acceptance context related to mobile advertising, this psychological condition is referred to digital readiness. Nasution, Rusnandi, Qodariah and Arnita (2018) argue that digital readiness is a prominent factor in the adoption of technology and digital applications. They have proven the importance of this digital readiness in their research on digital mastery level in a telecommunication company in Indonesia. The purpose of this paper is to investigate the effect of digital readiness on the acceptance toward mobile advertising among millennials in Bandung, Indonesia.
Relevant theories – Mobile advertising is part of digital advertising, as stated by Nasution & Aghniadi (2016), they define mobile advertising as a form of digital advertising that has attentions on engaging a strong communication to audience. This type of advertising adoption is still continuously growing and becoming preferable form of advertising for the Millenials. Researchers developed a model that links the influence of digital readiness to mobile advertising acceptance. In addition to these relationships, the research model they developed from the Technology Acceptance Model also included the influence of perceived usefulness and perceived risk to mobile ads acceptance.
Design/methodology/approach – The research model is developed from Technology Acceptance Model (TAM) with a specific attention to assessing whether digital readiness influences the respondents’ perception of usefulness and risk of mobile advertising. The research performs quantitative approach using survey that is formed based on previous literature and conceptual model. Structural equations modelling (SEM) is also conducted to test the constructed model and the proposed hypotheses. Byme (2010) states the significance of the estimated coefficients for the hypothesis relationships which indicate whether the relationship between constructs held true or not. This research will then compare between three models that are differed by range of respondents’ ages. First model will be combined age that is 17-24 years old, second model is 17-20 years old and third model is 21-24 years old.
Findings – The results show that digital readiness has a significant influence towards mobile advertising acceptance among Millennials, in which action readiness is more considered than attitudinal readiness in terms of further assessing mobile advertising. In addition, the study also illustrates Millennials’ perception of usefulness and risk of receiving mobile advertising. Younger group (17 – 20 years old) will not be affected much by usefulness of mobile advertising rather than the older group who will consider much about usefulness on accepting mobile advertising. The group also will take risk along with their ability to accept mobile advertising. It contradicts with the older group (21 – 24 years old) who see risk as hindrance in accepting mobile advertising.
Research limitations/implications – The area coverage of respondents only included several cities across Java and does not concern about the place of origin of respondents. Besides, this research also possesses an age limit for its respondents that range from 17 to 24 years old to limit the diversity of attitudes, beliefs and perceptions.
Originality/value – This study focuses on the concept of Technology Acceptance Model (TAM) in which the digital readiness is applied in the context that has not been conducted in Indonesia. Researchers conducted an empirical study on the effect of digital readiness on mobile advertising that is part of digital technology. The results of this research provide opportunities for digital readiness applications in research on the adoption of other digital technologies.
Paper type - Applied research
The Youtube mobile app can be seen as the Electronic Word of Mouth (E-Wom) platform since it could spread both in positive of negative review about some products. The Haul video on youtube is one of the most popular content in comparing some fashion items. This research aim is to elaborate the determinant of Information Acceptance on E-wom Youtube Mobile app. Interview and questionnaires were applied on gathering the data. The respondent number on questionnaires survey is 350 participants. The analysis used Multi regression analysis to find relationship among Information acceptance with argument quality, source attractiveness, source credibility and source style. The result said that all independent variable (argument quality, source attractiveness, source credibility and source style) have relationship to Information acceptance.
Introduction - Dubois (2002) said that luxury is identical with perception of comfort, beauty, and sumptuous lifestyle. There are five key factors of perceived luxury goods such as uniqueness, quality, hedonic, conspicuousness, and extended self (Vigneron and Johnson, 2004). So that, the definition of luxury fashion brand itself is goods (in terms of fashion) that has brand image and perceived as something that has uniqueness, quality, hedonic, conspicuousness, and extended self and could give comfort, beauty, and sumptuous lifestyle. Online visual display nowadays is one of maketer’s channel to promote the product. In terms of exclusivity, there is only few channels that has been used by marketer, such as website of the luxury brand itself, Instagram, Facebook, Youtube, and so on. This research of online luxury fashion brand is focused on one mobile app, named Instagram. Instagram is choosen because the usage of Instagram is increasing over time, especially in Indonesia. This research is focused on pre-loved luxury fahion brand on online shop at Instagram. There is one problem of this research, which is the percentage of middle to high income is increasing in 5 years (2010-2015) in Indonesia, but consumer is less likely to buy pre-loved luxury fashion brand. The tendency that consumer is less likely to buy because of decreasing sales of some pre-loved online shops in Indonesia. Exploratory research was taken and it can be concluded that the root cause of decreasing sales happens because visual display of pre-loved online luxury fashion brand is not too attractive.
Method - The method that which is used is experiment design. The respondent of this research are choosen by non-probability sampling, which is judgemental sampling (we already know the priority characteristic of respondent, such as middle to high income) and female (because the online shop that will be observed is only offer luxury fashion for female). This research will use eye tracker, named Gaze Point. To get the quantitative experiment data, the minimum respondents that will be need is 39 people if we want to generate until get the heatmaps (Kara Pernice and Jakob Nielsen, 2009). Users will be given some oral question after they finished the experiment with eye tracking. There are some contents that will be measured in this reseach, such as caption, image clarity, and background of product. This research will be conducted only for consumer in Bandung. Respondents are female with middle to high income that has been bought pre-loved luxury fashion bag. The variables which are used in this research are the result of combination of construct from previous research about luxury brand perception and attractiveness of visual display. Sensory stimuli of sights will make automated perception actives and determine whether the information attractive or not.
Findings – This research found that pre-loved online luxury fashion brand is currently growing rapidly. However, more respondents still prefer to buy online product if the visual display could be more attractive and the longer respondent saw the visual display, means that the respondents tend to be more interested of that posting. Author made proposed design improvements. Author then recommend them to the owner of pre-loved online luxury bag.
Over the course of the past decades, technological advancements accompanied a plethora of new types of data and consumer insights (e.g., Erevelles, Fukawa, & Swayne, 2016). Companies value opportunities provided by the availability of large data sets for their business strategy. Customers, however, are wary, as these analyses require the collection and storage of large amounts of personal information. Therefore, it is vital for companies to understand what customers perceive to be fair with regard to their personal data (e.g., Malhotra, Kim, & Agarwal, 2004). However, research still lacks deeper insights into customers’ expectations of fair data handling (Marketing Science Institute, 2016). Yet, only few studies have covered the field of expectations regarding fair data collection and use (Earp, Antón, Aiman-Smith, & Stufflebeam, 2005; Milne & Bahl, 2010). Importantly, however, previous studies have frequently neglected how companies’ fulfillment of customers’ expectations translates into subsequent consumer behavior. Moreover, we have yet to understand if companies’ actual behavior meets customers’ expectations. Grounded on psychological contract and justice theory, we investigate how customers want their data to be handled and in which ways they want to be informed about its usage, while also exploring how customer expectations translate into subsequent behavioral intentions. Additionally, we shed light on current company behavior, thus analyzing if customers’ expectations of fair data collection and usage are aligned with company perspectives. Responding to calls for a mixed methods approach in business research (e.g., Harrison, 2013; Woodside, 2010), we undertook qualitative and quantitative studies to address our research goals. In Study 1, we conduct in-depth interviews with customers and experts to gain an overview of customer expectations with regard to fair data collection and usage. Based on these findings, we conducted a quantitative study (Study 2) investigating each of the customer expectations identified in the prior study. The findings of Study 2 reveal that customers expect a simplification of privacy statements as well as easier control options for their data. Moreover, customers are willing to switch to a competitor, if it better fulfills expectations. Study 3 applies a content analysis of company homepages and privacy statements. Aligning the results from Study 2 and Study 3, we demonstrate that companies currently do not sufficiently meet customers’ expectation of fair data collection and usage.
Although people generally do not pay much attention to scent, background music (BGM), color, etc. in retail or service environments, these in-store factors could potentially have a subtle yet powerful influence on customers. Through two experiments, this research examined whether the scent and music made people feel physically warm or cool, and their effect on the participants’ perception of space and social density. Regarding to participants’ subjective perception of temperature, between the warm scent (vanilla) and the cool scent (peppermint), and between the warm music (Träumerei by Schumann) and the cool music (Vocalise by Rachmaninov) are not significantly different. But I could observe that people in warm conditions felt physically warm compare to cool conditions. And there was a significant difference on participants’ perception of space and density. People in the vanilla-scented environment felt that the capacity of the room was smaller, the space was tighter, and the social density was higher. In the case of the music, the results were the same. People in the room with Träumerei as a BCM felt that the room was smaller, the space was tighter, and the social density was higher. Moreover, people in warm conditions chose a cold or room temperature drink when I offered three drink options (cold, warm, room temperature) as a token of my gratitude. In addition to the effect to perception, I found that people in warm conditions (both scent and music) were more persuaded by commercial message than in cool conditions. These results would contribute to expand our knowledge of store atmospherics and customer experience through ambient scent and BGM.
Continuing the research stream of Gwinner and Eaton (1999) and Kwon, Ratneshwar et al. (2016), this study proposes a 3x2x2 mixed model experiment to extend the investigation of sport sponsorship‟s influence on the image of the sponsoring brand by perceived brand localness. It is assumed that a brand‟s country of origin presents an integral part of its image. Perceived brand localness either ease or hamper the assessment of image congruence with the sponsored entity via the brand‟s country of origin. As a result, the influence is supposed to be larger for brands local in the sponsored team‟s home country, and lower for brands non-local. A further distinction is drawn for nonlocal brands regarding their belonging to either a western or eastern cultural sphere. The influence is supposed to be less low for brands in the same sphere and additionally low for brands in different spheres. Furthermore, the study replicates Kwon, Ratneshwar et al. (2016)‟s finding that the increase in image congruence is moderated by functional similarity in a cross-country setting. The experiment is conducted in Germany, the UK, China, and Japan with a corporate brand‟s shirt sponsoring of a soccer team as stimulus.
Online reviews enable brands to promote their products by means of word-of-mouth communication. In an e-commerce environment, user-generated customer feedback, as a form of electronic word-of-mouth (eWOM), is a crucial source of information in the prepurchase stage as many customers base their purchase decision on feedback from other customers. eWOM is perceived as a reliable source of information and has become especially important in an online environment (Chevalier & Mayzlin, 2006; Li & Zhan, 2011). Existing research has shown that customer feedback positively influences sales (Chevalier & Mayzlin, 2006; Forman, Ghose, & Wiesenfeld, 2008; Ha, Bae, & Son, 2015). Yet, only very limited research on how to communicate customer feedback to maximize a company’s top-line growth has been conducted (Packard & Berger, 2017). In this study, we aim to fill this gap by investigating how numerical customer feedback metrics should be communicated to attract new customers. Using an experiment, we empirically investigate which of the two widely established numerical customer feedback metrics, a customer recommendation rate or a customer satisfaction rate, is better suited to attract new customers and hence stimulate company growth. The impact of the stimulus on the purchase process is measured by means of three different dependent variables to imitate the hierarchy of a purchase decision: consumers’ interest towards the ad, their attitude towards the product shown in the ad as well as their purchase intention. Furthermore, we include several moderating factors, which have proven to be relevant when looking at online reviews, namely product type as well as consumers’ motivation and ability to process persuasive communication (Gupta & Harris, 2010; Klein, 1998; Petty & Cacioppo, 1986).
In the era of digital retailing, consumer-empowering technologies greatly facilitate the dissemination of complaint messages. Consumer audiences, who view consumer complaints and the subsequent responses made by retailers, consider these messages as critical information sources for decision-making (Weitzl & Hutzinger, 2017). We argue that retailers can use two types of response strategies (warmth- vs. competence-related response) to regulate the information distributed online, and that these strategies may influence consumer audiences’ perceptions and subsequent attitudes and behaviors differently based on their different levels of power (Rucker, Galinsky, & Dubois, 2012). Two experimental studies using a 2 (retailer response: warmth vs. competence) X 2 (audience power: low vs. high) between-subjects design were conducted. Study 1 (N = 240) revealed an interactive effect of power and retailer response on perceived diagnosticity and perceived fairness; and Study 2 (N = 233) showed that the significant moderated mediation for audiences’ perceptions on the relationship between retailer response X audience power and outcome variables. Theoretically, this study enriches the consumer complaint management literature from the perspective of consumer audience. It also sheds light on the power theory by validating its notion in the context of service failure and recovery. Practically, results demonstrate how retailers can effectively respond to negative consumer reviews to maintain customer relationship management with consumer audiences in digital age.
Offering an apology is one of the common service failure recovery strategies. Previous studies focused on examining the effectiveness of apology from the customer perspective. It is not clear whether and how customers perceive firm remorse after an apology influence their blame attribution and coping behaviors. Integrating a cognitive-emotive model and an empathy model, this research proposes and empirically tests a remorse-empathy-coping model to explain how customers respond to apology after mobile application service failures occur. Specifically, this research examines how perceived firm remorse influences blame attribution and emotional empathy, which subsequently affects coping behaviors (revenge and avoidance) in the mobile app service recovery context. The moderating role of technology anxiety in the proposed model is also identified. Four hundred and fifty-two mobile application service users were recruited for a survey study and the Structural Equation Modeling was used in order to test the research hypotheses. Our findings show that perceived firm remorse negatively influences blame attribution but positively influences empathy. Empathy negatively affects revenge and avoidance behaviors. In addition, technology anxiety moderates the effect of perceived firm remorse on blame attribution. The negative effect of perceived firm remorse on blame attribution becomes weaker when technology anxiety increases.
With the introduction of virtual reality (VR) devices for private consumers in 2013, the industry experience great attention and notable progresses have been made in relation to hardware components (Papagiannidis et al. 2013). This enables better experiences of virtual environments and reduces the awareness of the consumer to be exposed to virtual stimuli, so that the virtual environment is perceived as (almost) real – the so-called immersion effect (Grau 2003). Even though VR is already in place, little research in service marketing literature exists about it (Bigné, Llinares, and Torrecilla 2016), so that this technique represents one of the most important topics to investigate from service perspective (Kannan and Li 2017). We assume that the immersion-effect might influence the perception of the service encounter and thus influence consumer evaluation in a new way. Thereby, we contribute to service marketing literature by exploring the value and barriers for VR usage in so-called virtually-extended service encounters from a customer perspective. Thereby, we further examine for which kind of services VR is useful, how consumer perceive VR technology in service environments and how the extension of the traditional service encounter by VR technology influences consumers’ service quality evaluations. VR represents a promising technology to promote high-involvement products or services like travel, furniture, or cars. Companies offering these kind of products and services can provide simple devices to customers, who can experience the product in a realistic setting upfront their purchase decisions. Especially novelty and innovation characteristics of VR-technology may have positive spillover effects on company brand, the product as well as the final purchase decision. To proceed with this research, we plan lab experiments with well-developed VR-devices.
To remain competitive in the realm of the Internet, developers of new business models not only have to take into account the behavior of online consumers, but also their misbehavior. Today, companies are faced with special challenges regarding consumer misbehavior, particularly in the segment of online content providers (e.g. Netflix, Amazon Prime Video, etc.), where it has become a common practice to share an account with multiple persons, while only one of them is the rightful owner. Such misbehavior may lead to negative consequences, such as direct and indirect financial performance implications, increased workload to deal with dysfunctional customer behavior, underestimated membership, and a lack of understanding the true customer base (Harris & Raynolds, 2003; Hwang et al., 2009). Therefore this study investigates account sharing as a part of customer misbehavior with a qualitative approach to identify customers’ reasons for account sharing. Thereby this investigation makes meaningful implications for companies (e.g., Netflix) and research alike.
Introduction
A private label (PL) is defined as a brand owned, sold and distinguished by retailers (Lincoln & Thomassen, 2009). Therefore, most PLs display only their brand name on their product labels or packages. However, in the Japanese consumer goods market, an increasing number of manufacturers’ names are now being displayed on PL product packages. For example, the “Seven Premium” PL, by Seven & I Holdings, displays the manufacturer’s name on its product labels using the phrase “This product is a joint development product with manufacturer X.” This indicates that retailers are utilizing the brand of the national brand (NB). This type of branding strategy can be classified as co-branding or a brand alliance. In Japan, expansion of PL co-branding may have improved consumers’ attitudes toward PLs and contributed to their development.
Theoretical Background
Most prior research on co-branding has focused on brand alliances between two NBs. Therefore, studies on alliances between PLs and NBs are very limited. Vaidyanathan and Aggarwal (2000) focused on ingredient branding, which merged elements of PLs with NB ingredients. Based on the combination theory (Park, Jun, & Shocker 1996), attitude accessibility theory (Fazio, 1986), and attribution theory (Heider, 1958; Kelly, 1973), they found that the association of brand name ingredients with private brand products could positively impact consumers’ evaluations of unfamiliar products. Also, the use of a brand name ingredient in a PL did not negatively affect consumers’ evaluations of this product. Arnett, Laverie, and Wilcox (2010) focused on brand alliances of retailers and manufacturers in the clothing category. Based on the attitude accessibility theory and the information integration theory (Anderson, 1971; Smith, 1993), they found that consumers’ attitudes toward alliances can influence retailer equity, manufacturer brand equity, and shopping intentions. They also found that pre-alliance retailer equity significantly affects attitudes toward alliances. Except for post-alliance retailer equity, perceived fit moderates all relationships between consumers’ attitudes toward the outcome of an alliance. Prior research on co-branding indicates that the attitudes and attributes of co-brands are influenced by the attitudes and attributes of constituent brands. In addition, a constituent brand’s familiarity moderates the effect (Park et al., 1996; Simonin & Ruth, 1998). As another notable finding, attitudes about co-brands influence constituent brand attitudes, with the effect being moderated by brand familiarity (Simonin & Ruth, 1998). Based on prior findings, this study examines whether co-branded PLs are influenced by their constituent NBs and by the familiarity of constituent brands in the case of Japanese co-branded PLs. This study also examines whether a spillover effect exists for constituent brands.
Methodology
An Internet survey of 798 women living in the Greater Tokyo area was conducted in August 2017. Subjects were assigned to one of four groups, grouped by PL and NB brand familiarity (Figure 1). The familiar “salad dressing” category was selected. While this category includes several large and popular manufacturers, many small, unknown manufacturers also exist within it, a fact that is relevant to the purpose of this study. High-familiarity PLs and NBs were selected based on their market shares in the category. However, Seven Premium, the most popular PL in Japan, was not selected as it had already adopted a co-branding strategy. Aeon’s Topvalu was chosen as a high-familiarity PL. While Topvalu is one of the most popular PLs in Japan, it has not yet taken a co-branding strategy. All measures were assessed through a seven-point, semantic, differential scale. Attitudes toward constituent brands (PLs and NBs), co-brands, perceived quality of constituent brands, and brand familiarity of constituent brands were measured. Using covariance structure analysis, we examined factors influencing attitudes about co-branding and the spillover to constituent brands after considering co-branded formations. Regarding familiarity, a multi-group analysis was conducted.
Results
Attitudes toward constituent brands (PLs and NBs) positively influenced attitude toward co-branded PLs. In addition, the influence on the co-branded PLs was greater for PLs (Table 1). From the multi-group analysis, the influence of familiarity on the attitude toward co-branded PLs can be found in some cases (Table 2). In the case of high-familiarity PLs with high-familiarity NBs (Group 1), the attitudes about co-branding by NBs were not significant. On the other hand, a positive co-branding attitude by NB was found in other cases. In cases of low-familiarity PLs with low-familiarity NBs (Group 4), the co-brand’s influence was greater for NBs. Moreover, since the attitude toward co-branding positively influenced differences of attitude between post-alliance and pre-alliance toward PLs and NBs, the spillover effect is confirmed (Table 3).
Discussion
Our results, which suggest that co-branding with NBs can be an effective strategy if PLs have low familiarity, are consistent with prior research. PLs in Japan, which have a lower penetration ratio than those in Europe and the United States, are still in a developmental stage (Kumar & Steenkamp, 2007). Since PLs in Japan are less familiar than leading NBs, co-branding with an NB can be an effective strategy for a PL. On the other hand, when a PL is already established as a brand and has high familiarity, co-branding with a NB might have little effect. In this case, it might be necessary to devise a different strategy, such as changing a PL’s brand name. Seven Premium, the most popular PL in Japan, was introduced in 2007. From the beginning, when its brand had low familiarity, it opted for a co-branding strategy, and our findings suggest that this decision significantly improved overall attitudes toward PLs.
This paper investigates a theoretical and experimental evidence for a niche strategy for small and medium online shopping malls to survive against large famous shopping malls dominating the E-commerce market. The present study explored both theoretically and empirically how consumers’ preferences for alternatives in online shopping context are affected by their construal level and concentrated its efforts on the verification of the phenomenon under various frames and regarding various categories(Liberman and Trope 1998; Liberman, Trope, and Stephan 2007, Liberman Trope, and Wakslak 2007). For this, this study demonstrates how chronic construal levels of consumers may affect their alternative choice for online shopping via various contexts (Experiment 1-3) and categories (Experiment 3-5). This series of experiments suggests that consumers with high construal level can be defined as a group that is relatively less susceptible to reputation of the shopping malls. Thus, strategically targeting this group of consumers will help small online malls lacking store reputation to mitigate their competitive disadvantage. Based on both existing literature and the experimental results as above, this research discusses possible methods for small online shopping malls to target high-construal segmentation.
Purpose: as they travel more, the Chinese consumers are making a rapidly-growing share of their luxury purchases outside the Mainland. Their purchases are now the most part of the sales in the luxury shops in Europe. This paper aims to analyze if and how their buying behavior is affecting the retail mix.
Design approach: in order to analyze the influence of Chinese customers on European luxury shops a qualitative research has been developed by mean of 346 observations, in a period of four months, of the buying behavior inside a luxury shop in Italy. We used the mystery sales person approach. The research aimed to verify the consistency of the traditional retail mix of a luxury shop with the requests of these new customers.
Findings: the research highlighted that the buying behavior of the Chinese globetrotters is quite different compared to the traditional European and American luxury customers, and that their requests are not fitting with the existing luxury shop retail mix.
Research limitation: The research process was heavily limited by the particular situation of a Chinese luxury customer, who doesn’t like to be interviewed. So the research approach should be totally indirect, similar to a mystery research. Only one luxury brand could be included in the sample, while a comparison between more brands seems to be more fruitful.
Practical implications: the traditional retail mix of luxury shops, based on long and careful relationship, exclusive spaces and atmospheres, timeless and experiential experiences inside the point of sales are not fitting with the needs of Chinese luxury shoppers. It must be reconsidered and innovate, coping with the paradox represented by traditional European customer desires and new Chinese ones: the same location for two totally different approaches.
Originality: in the new era of globalization almost the totality of the previous studies analyzes the strategy of western retail luxury chains in China, focusing on how the West is influencing Chinese customers, skipping the reverse situation. This paper focuses how Chinese customers can influence European luxury shops.
Despite the plethora of articles and research in marketing and retailing literatures focused on enhancing customer loyalty, the topic of how to best allocate resources to various loyalty-building efforts has always attracted interest from both academics and practitioners (Kamran-Disfani, et al., 2017). Much research has examined that satisfaction is a strong relative factor of loyalty. However, Kumar, et al. (2012) and Kamran-Disfani, et al. (2017) stressed that the satisfaction-loyalty link could depend on various moderators and mediators. And they pointed out the difference between two types of loyalty—attitudinal and behavioral, and the mediating effect of attitudinal loyalty within the satisfaction-behavioral loyalty link. Thus, there is a need for more studies empirically investigating the satisfaction-loyalty link and how satisfaction effects loyalty in different contexts. On the other hand, many companies have recently been building a greater variety of store formats and attempting to provide a superior shopping experience through their stores in order to increase the possibility of customer revisitation and customer loyalty. Also, consumers not only switch to different retailers in the same product categories but also change to different store formats for the same product purchasing (Anand and Sinha, 2009). The reasons can be considered as customers’ attitudes toward stores and preference of store atmosphere and environment (Wakefield and Baker, 1998). However, few research pays attention to the issue of how, and to what extent, the different store formats have on impacting customer satisfaction and loyalty building. This is especially true of retailers having entered a new overseas market, and how its loyalty building is effected by its store format choice during its developing stages. This study adopts a conceptual model from Kamran-Disfani, et al. (2017) and aims to examine the satisfaction-loyalty link and test if attitudinal loyalty could be a mediator between satisfaction and behavioral loyalty. And if so, do store formats matter to the satisfaction-loyalty link. In short, we develop hypotheses of how store atmosphere, customer satisfaction, attitudinal loyalty, behavioral loyalty are related, and how store format moderates these relationships. In order to improve the understanding of the satisfaction-loyalty link in the context of retail internationalization, we survey a Japanese fashion company — Nice Claup who segmented the Chinese market by operating multiple retail stores, and each retail store plays a discrete role of cultivating customer loyalty. In our analysis, we compare two store formats of Nice Claup, which are the single brand specialty store and the multi-brand store (defined as ―house brand store‖ in this paper). House brand stores aim to offer novel shopping experiences by gathering several Japanese fashion brands into one large store, with each brand having their own detached areas for keeping each brand’s identity separate and recognizable, but are connected to each other by an integrated store design. Both of these two types of stores are named ―Nice Claup‖, and operated by the same retailer. We choose a 388-customer survey data as our sample. All of these customers have purchased clothes at Nice Claup’s stores over 5 times per year and have been given special member’s card by Nice Claup in Shanghai, China. This 388-customer data obtains 180 consumers who always purchase at house brand stores, and 208 consumers who always purchase at single-brand specialty stores. Hypotheses are tested using an ordinary least squares regression model with a cross-store format comparative analysis. The results suggest that while attitudinal loyalty positively and directly influences behavioral loyalty, satisfaction indirectly drives behavioral loyalty through the mediating effects of attitudinal loyalty. This implies that we should focus on the process of building loyalty and there might be a potential stage before gaining customers’ behavioral loyalty. We also find that there are some important differences between the two store formats, i.e., (1) the effect of store atmosphere (ambience cue, design cue, social cue (Kumar and Kim, 2014)) on satisfaction; (2) the moderating effect of store formats on the relationship between attitudinal loyalty and behavioral loyalty. The findings explore different perception of the two types of stores and influencing factor on building loyalty from an emerging market perspective. By extension, it also shows an application of implementing retail internationalization with adopting multiple store formats on different developing stages, and customer loyalty can be enhanced by offering store novelty in the Chinese market.
Background
Our usage of technology and the continuous adoption of technological innovations has implications for our lives that go beyond traditional marketing questions such as product quality, customer satisfaction, and customer loyalty. The psychological consequences of new technology affect our lives and our well-being as individuals. A current technological advancement is the ongoing development of automated driving capabilities. The recent advances have led to the diffusion of semi-autonomous driving systems, such as Teslas autopilot or Daimlers DISTRONIC PLUS. These commercially available technologies correspond to the second level of SAE international’s J3016 standard for automated driving, which ranges from 0 (“No Automation”) to 5 (“Full Automation”, no human needed). SAE level 2 (“Partial Automation”) is defined as “the driving mode-specific execution by one or more driver assistance systems of both steering and acceleration/deceleration using information about the driving environment and with the expectation that the human driver performs all remaining aspects of the dynamic driving.” (SEA On-Road Automated Driving (ORAD) committee, 2014). First of all, qualities of mobility such as safety and comfort influence well-being directly and autonomous driving has a potential impact on these qualities. Furthermore, advances in autonomous driving have particularly social but also ecological and economic benefits. On the one hand, social benefits result from increased social participation by improving mobility of the non-driving, elderly or people with travel-restrictive medical conditions (Harper, Hendrickson, Mangones, & Samaras, 2016; Wadud, MacKenzie, & Leiby, 2016). On the other hand, social benefits result from increasing road safety, less congestions as well as from a reduced number of accidents (Fagnant & Kockelman, 2015). Individual social or personal benefits such as improved safety and comfort or reduced stress levels are also widely perceived by potential users (Bansal, Kockelman, & Singh, 2016; Karlsson & Pettersson, 2015). Additionally, ecological benefits can be realized due to more efficient driving of vehicles and a smoother traffic flow (Wadud et al., 2016). Economic benefits are mainly a result of decreased travel times and of the fact that at high automation levels driving time could be used more productively. Accordingly, this research tends to answer the following research questions:
• How does automated driving impact consumers’ well-being?
• What qualities of mobility (e.g. safety) mediate the impact of automated driving on consumers’ well-being?
Conceptual Model
As argued above, automated driving potentially has both a direct and an indirect (mediated) impact on well-being. Subjective well-being (SWB) describes one’s well-being through the global evaluation of life satisfaction (LS), positive affect (PA), and negative affect (NA) (Diener, 1984). This tripartite concept of well-being has been widely adopted by researchers, even though the relationship of the three aspects remains in question (Busseri & Sadava, 2011). Busseri and Sadava (2011) provide an overview of five prominent conceptualizations: As three separate components, as a hierarchical construct, as a causal system, as a composite, and as configurations of components. We adhere to Diener’s original model that describes LS, PA, and NA as three separate components. Accordingly, the correlations among the three components are not of primary interest in this model. Therefore, the impact of automated driving on LS, PA, and NA is assessed separately in order to provide a full image of SWB. This leads to the following hypotheses:
H1a. Semi-autonomous driving has a positive impact on the level of SWB by increasing positive affect.
H1a. Semi-autonomous driving has a positive impact on the level of SWB by decreasing negative affect.
H1c. Semi-autonomous driving has a positive impact on the level of SWB by increasing life satisfaction.
Driving influences subjective well-being through different mediators. One potential mediating factor, discussed quite controversially in literature, is fun. While non-automated driving shows a higher level of fun than automated driving, still a large majority is fascinated by automated driving (Kyriakidis, Happee, & Winter, 2015) and also a discharge from the actual driving could be perceived as fun. The most relevant perceived benefit of automated driving studied in literature is safety, followed by stress (e.g. Bansal et al., 2016; Karlsson & Pettersson, 2015; Kyriakidis et al., 2015). Therefore, we formulate the following hypotheses:
H2a. The impact of semi-autonomous driving well-being is mediated by fun.
H2b. The impact of semi-autonomous driving well-being is mediated by stress.
H2c. The impact of semi-autonomous driving well-being is mediated by security.
Design/methodology/approach
Our sample comprises of two groups with a total of 259 respondents. Group 1 contains 111 respondents using automated driving while group 2 contains 148 respondents not using automated driving. In a first step, to test hypotheses H1a to H1c, we use ANOVA to analyse the group’s differences regarding positive affect, negative effect, and life satisfaction. We analyse both the aggregated values and the single items for all three aspects of subjective well-being. ANOVA was conducted using SPSS version 25. In a second step, to test hypotheses H2a to H2c, three multiple parallel mediation models were estimated with ordinary least squares path analysis. Each model consisted of one of the aspects of SWB as the dependent variable as well as the three mediators. The models were estimated using PROCESS version 3.0 (Hayes, 2013) and SPSS version 25.
Findings
ANOVA shows a highly significant interaction between semi-automated driving and well-being for negative affect, but not for positive affect and life satisfaction. Looking at the items that amount to positive affect, we see that drivers with the new technology have more excitement, pride and interest. But these effects are counterweighted by significantly less activity, determination and attention. In the context of semi-autonomous driving, being less active, attentive and determined can be interpreted as a positive thing (driving more relaxed). Therefore, we adjust the positive affect scale and remove these three items to from the scale for further analysis. Cronbach’s alpha for all three aspects of subjective well-being is 0.73 or above, thus indicating adequate convergence. Mediation analysis (process model 4) on positive affect reveals a significant indirect effect of semi-automated driving moderated by fun. There is no significant mediation effect for safety and stress as well as no significant direct effect of semi-automated driving on positive affect. The parallel mediation model using negative affect as the dependent variable, shows a significant direct effect of semi-automated driving as well as significant indirect effects mediated by safety and stress. Semi-automated driving reduces negative affect directly as well as by increasing safety, which reduces negative affect. It also reduces negative affect by decreasing stress, which is positively linked to negative affect. Fun, however, has no significant effect on negative affect. Last, life satisfaction shows a combination of the effects mentioned above: Automated-driving has a significant positive direct effect on life satisfaction. Furthermore, life satisfaction is influenced positively through increased fun, safety, and decreased stress.
Implications
ANOVA and mediation analysis show a positive impact of semi-automated driving on subjective well-being, thus contributing to the investigation of new technologies on consumers’ well-being. Using Diener’s tripartite model of subjective well-being, analyses revealed that the positive effect is especially driven by reducing negative affect. Further research is needed to investigate the transformative impact of (semi-) autonomous driving more deeply and broadly. Especially investigations differentiating between target groups of the new technology might be an interesting path to follow, since the impact on the different aspects of SWB might differ (e.g. increase of positive affect for early adopters vs. decrease of negative affect for people with reduced mobility). Furthermore, our investigation contributes to the conceptual discussion about the structure of the tripartite model of subjective well-being. The fact that life satisfaction as a dependent variable, to some extent, combines the effects observed for positive and negative affect indicates that the three aspects are causally linked instead of being separate. Researchers have promoted a system where positive affect and negative affect are conceptualized as inputs to life satisfaction before (Busseri & Sadava, 2011). Last, our findings give directions to marketing executives for marketing new technologies in general and (semi-)automated driving specifically. First, practitioners need to think about the well-being impact of their technology, i.e. evaluate if it increases well-being by increasing positive affect or by decreasing negative affect. The two paths lead to different marketing measures and ways to promote the technology. More specifically, for semi-autonomous driving a mixed strategy commends itself. It is essential to demonstrate that the new technology reduces the pains of driving while being fun at the same time.
Personalised nutrition can contribute significantly to the prevention of non-communicable dietary related diseases by providing dietary suggestions based on individual’s nutritional needs. Adoption of the concept of personalised nutrition by individuals is crucial for the success of personalised nutrition services. However, consumers’ adoption intention of personalised nutrition services is not only the result of cognitive deliberations of benefits and risks, but several studies in other contexts show that affective and contextual factors also play an important role in explaining consumers’ adoption intention. This study therefore examines whether affective factors (i.e., measured by means of ambivalent feelings) and contextual factors (i.e., eating context) increase the understanding of consumers' intentions to use personalized nutrition services. An online survey study was conducted among a total of 996 participants in the Netherlands. The results of a number of estimated fully latent structural regression models show that the intention to use personalized nutrition is not only positively driven by a weighing of benefits and risks (i.e., privacy calculus), which is also established in previous studies, but also negatively by ambivalent feelings. In turn, the results show that ambivalence towards personalized nutrition is predicted by privacy risk and the extent to which someone perceives the eating context as a barrier for personalized nutrition. Taken together, the current study implies that to stimulate the adoption of personalized nutrition services not only benefits and risks of personalized nutrition should be addressed, but also consumers’ ambivalent feelings regarding the concept and contextual factors that may prohibit adoption.
A wide consensus of research points to an increasing responsibilization of individuals, as consumers engage in self-improvement through services and products (Giesler & Veresiu, 2014). Self-tracking services, with which consumers can monitor physiological and cognitive attributes such as breathing, pulse or mood, are a common manifestation of this change. This responsibilization means that solving structural well-being problems is left to individual consumers (Anderson et al., 2016). However, how this takes place in practice, and how service providers construct their service in this context of responsibilization has not yet been studied within Transformative Service Research. Through qualitatively analyzing text content from the websites of eleven different wearable devices and applications for self-tracking, this paper shows a novel conceptualization of how service providers present well-being capabilities to responsibilized consumers. The findings show that while well-being is in almost all cases concerned with managing a stressful work life, or enhancing the presentation of a healthy self, service providers present consumers with differing types of capabilities for tackling these issues. The first type refers to changing, which implies actively conforming to norms by changing one’s appearance or physique. The second type entails coping, i.e. more passively withstanding and learning to live with stress or pressure. The third type of capability, countering, refers to an active, non-conformist stance towards external norms, instead advocating well-being through self-knowledge. This study contributes to Transformative Service Research by responding to calls for research on well-being as a socio-culturally constructed phenomenon (Anderson & Ostrom, 2015). The findings show how “consumer capabilization” (Giesler & Veresiu, 2014) takes place in practice through services. In addition, it extends discussions on service providers’ abilities to transform or reproduce structures (Edvardsson, Tronvoll & Gruber, 2011; Blocker & Barrios, 2015) and how this can affect well-being.
This study explores the dynamics of wellbeing co-creation in sports communities of non-professional athletes through their everyday consumption of extended service encounters. With the use of ethnographic methods and using extreme sports communities (Surf, and Triathlon) of non-professional athletes in Colombia as a case study, the researchers explored how wellbeing evolves as forms of active integration of competences, materials, communities, and images reproducing actual and recreating new consumption practices. The findings show evidence that extreme sports consumption can be acknowledged as a social practice in the Colombian extreme sports consumption community of non-professional athletes, reaching three main outcomes. Firstly, the study suggests that wellbeing co-creation in the Colombian extreme sports communities emerge through the active integration of a constellation of elements in the extreme sports consumption practice. Secondly it has been found that the practice of extreme sports emerges as a heterogeneous consumption community where groups of practitioners can be classified into broader groups, according to the hedonic and eudaimonic wellbeing meanings they are pursuing, and which may interact in function of more than one subculture or social community at a time. Finally, participants co-create wellbeing through their consumption practices within the sports community being both an operand and operant resources within the community; in short, participants transform sacred, profane, material, intangible, individual, social, relational, contextual, hedonic and eudaimonic aspects of the practice within the performance of it. This study contributes TSR researchers to the understanding of both hedonic and eudaimonic wellbeing in leisure activities. The study may validate the idea that stronger ties in communities provoke a more diverse constellation of practices beyond the sport practice, expanding the knowledge of social supportive third places, commercial friendships and betrayals acknowledging their dynamics in social contexts; and the role of restorative servicescapes, expanding them to virtual and “through materials place” roles. From a managerial perspective this study shows how wellbeing is constructed within social constellations of resources that interact interdependently and go beyond commercial intent.