Introduction For the past decade, luxury brands have become increasingly interested in portraying themselves as purveyors and curators of a “luxury lifestyle” (Dauriz & Tochtermann, 2013). Some of the world‟s largest fashion brands, for instance, have expanded their offerings to include lifestyle products and services such as housewares, furniture, fine dining, hotels, and private residences (e.g., Ralph Lauren, Giorgio Armani, Bottega Veneta, Hermès) (Mellery-Pratt, 2014). Given that “lifestyle” is now one of the major buzzwords in luxury marketing (Dauriz & Tochtermann, 2013), it is useful to attempt to provide a solid theoretical perspective on this topic. The objective of this paper is to deepen our understanding of “luxury lifestyle” in a contemporary context. To do so, we first examine the existing definitions of lifestyle as a marketing concept. Next, we link the concept of lifestyle to customer segmentation and provide an integrative conceptual framework on lifestyle segments within luxury marketing. Finally, we highlight key insights and important lessons concerning luxury lifestyle segmentation for both theoretical and practical applications. Literature Review Multiple definitions of lifestyle exist in the literature. In this paper, we focus on the major accepted definitions. The concept of lifestyle was first introduced by Lazer (1964) in marketing research. According to his pioneering work, lifestyle is a distinctive mode of living, embodying the aggregative patterns that develop and emerge from the dynamics of living in a society. Building on this notion, Plummer (1974) specifically conceptualized lifestyle as a unique behavioral style of living that includes a wide range of activities (A), interests (I), and opinions (O). His AIO framework served as an important building block in the development of lifestyle scales as shown in Table 1. Table 1. A Summary of Lifestyle Scales Since the introduction of Rokeach Value Survey (Rokeach, 1973), the concept of lifestyle has been combined with personal values as exemplified in VALS (Mitchell, 1983). According to Schwartz (1994), values are one‟s desirable, relatively stable goals that serve as guiding principles in life. In other words, values contribute to the formation of a certain lifestyle (Gunter & Furnham, 1992) in that: (a) values are transsituational in nature influencing a wide range of behaviors across many different situations; and (b) individuals prioritize their world views based on their values varying in importance (Seligman et al., 1996). In the context of consumer behaviour, values are commonly regarded as the most deeply rooted, abstract consumer traits explaining how and why consumers behave as they do (Vincent & Selvarani, 2013). In line with this perspective, we thus conclude that luxury lifestyle is a multi-faceted construct focusing on a luxury consumer’s personal values manifested in the consumer’s activities, interests, and opinions. Conceptual Framework We propose a new framework of luxury lifestyle segmentation, including Conspicuous Emulators, “I-Am-Me” Uniqueness Seekers, Self-Driven Achievers, Hedonistic Experientials, and Societally Conscious Moralists, based on the review of related literature (e.g., Mitchell, 1983; Vigneron & Johnson, 2004; He, Zou, & Fin, 2010). The description of each segment and related firm strategies are shown in Table 2. Table 2. Lifestyle Segmentation Framework for Luxury Marketing Discussion and Implications Lifestyle is now the focal point for the marketing activities of most luxury firms (Dauriz & Tochtermann, 2013). In this study, we focused on the concept of lifestyle, one of the most compelling and widely used approaches to luxury market segmentation. Our conceptual framework built on the notion that luxury markets are heterogeneous, consistent with prior research describing the heterogeneity of luxury consumers (e.g., Vigneron & Johnson, 2004; He, Zou, & Fin, 2010). Since the 1960s, lifestyle has been viewed as a key marketing concept and has been the focus of a significant part of the market segmentation literature. The basic concept of lifestyle has not been greatly altered. Many of the fundamental approaches to lifestyle research are still valid today. The essence of the AIO approach outlined by Plummer (1974) is still evident in the work by Ko, Kim, and Kwon (2006) that defines a fashion lifestyle. Other advances in lifestyle research use personal value theories to specify different consumer segments. Despite the underlying stability of the basic concept of lifestyle, recent advances in digital communications and social media platforms and the trend toward globalization are introducing a discontinuous change to the adoption and implementation of segmentation strategies in luxury markets. Information technology has dramatically affected the nature of the communication and distribution options for luxury firms. As exemplified in specific industry examples in Table 2, consumers now interact with luxury firms through myriad touchpoints in multiple channels and media. These changes are altering the concept of luxury lifestyle segmentation. Thus, there is much room for additional research to strengthen the overall conceptualization of luxury lifestyle segmentation. One important topic involves the question of whether specific lifestyle segments prefer specific forms of touchpoints. For example, Hedonistic Experientials may prefer social media platforms whereas, for other segments, traditional vehicles such as print advertising and flagship stores may still remain crucial. Given a sizable and growing number of global luxury brands, another important issue for future research is to investigate whether the five lifestye segments conceptualized in this study can be empirically replicated on a global scale. We conclude that the concept of lifestyle segmentation, once adjusted to reflect the impact of the digital revolution and the globalization of luxury brands, has a great potential to advance both theory and practice in luxury marketing.

Driven by the ability to interconnect with key modern trends of healthcare and fitness, wearable devices are attracting significant level of interest from sports industry marketers. Wearable devices are the new electronic technology equipped with sensors, internet connections, processors, and operating systems and used external to the body, either attached as an accessory or embedded in clothes (Li, Wu, Gao, & Shi, 2016; Raskovic, Martin, & Jovanov, 2004; Yang, Yu, Zo, & Choi, 2016). As fully functional, self-contained electronics, wearable devices allow users to access information measured anytime and anywhere. According to ABI Research (2016), the global wearable device shipments will increase from 202 million in 2016 to more than 501 million by 2021. Specifically, market reports show that wearable fitness trackers have dominated the consumer market for wearable devices by accounting 85% of the wearable technology market in 2016 (International Data Corporation, 2016). A wrist-worn type of wearable fitness devices is the most popular but chest worn type, apparel, and other types (e.g., clip-on, ear-worn, etc.) of wearable devices are also used for fitness tracking. Wearable fitness devices analyze accumulated data of the users’ physical activity as well as provide the health and fitness status in real time. Studies on behavior change through wearable technology showed that feedback based on accurate and insightful analysis could lead long-term use of wearable devices (Fritz, Huang, Murphy, & Zimmermann, 2014; Patel, Asch, & Volpp, 2015). In this regards, smart applications linked to wearable fitness devices are widely used. As electronics IT products and services are recognized as an instance of fashion objects, many studies on the user acceptance of the products and services have focused on the importance of product design and visual attractiveness (Cyr, Head, & Ivanov, 2006; Tzou & Lu, 2007). However, little research has been done on user acceptance and behaviors of wearable fitness devices and smart applications linked to the devices focusing on the effect of the design aesthetics. Thus, the current study seeks to better understand the relationship between design aesthetics and the extended technology acceptance model (TAM) including perceived usefulness, perceived ease of use, and perceived enjoyment. In addition, this study seeks to explore the synergistic effect of visual attractiveness of the smart applications linked to them on adoption process of wearable fitness devices and the related services. The definition of fashion is “a way of behaving that is temporarily adopted by a discernible proportion of members of a social group because that chosen behavior is perceived to be socially appropriate for the time and situation (Tzou & Lu, 2009, p. 312- 313).” A fashion object has some unique characteristics including styling, aesthetics, ego gratification, etc. and is perceived to be newer, more novel, more aesthetic or even more attractive than other choices (Tzou & Lu, 2009, p. 313). As iPhone and iWatch have changed the market trends of IT products and services, it is significant that consumer electronics products with visually attractive design are more likely dominate the market and consumers’ willingness to pay is high. As a fashion technology, the most popular type of wearable fitness devices is a bracelet that users can wear on their wrist. Users wear fitness devices 24/7 to track their physical activity to gain information for healthcare and fitness practice. Specifically, wearable fitness devices track physical activity, such as workout time and intensity, steps taken, calories burned, and even sleep patterns. By quantifying users’ behaviors, the devices can educate and motivate individuals to improve their health and fitness practices (Patel et al., 2015). Considering IT products as fashion technology, many studies on user acceptance of new technology show the importance of product design and attractiveness. Researchers found that the sensory experience of information technology as well as physical electronics products determined users’ perceived usefulness, perceived ease of use, and perceived enjoyment (Childers et al., 2001; Cyr et al., 2006; van der Hdijden, 2003). However, few studies have tested the effect of aesthetics factor on the wearable fitness device adoption process. Thus, this study defines design aesthetics as an aesthetic product design expressed through shapes, colors, and materials and user interfaces of wearable fitness devices (Yang et al., 2016) and examines the effect of design aesthetics on ergonomic conceptions such as perceived usefulness and ease of use and an emotional factor, perceived enjoyment. In addition, this study focuses on the synergistic effect of design aesthetics of a smart application linked to a wearable fitness device which can motivate use of the device by providing the users more insightful information. The devices collect users’ physical activity data 24/7 and transfer the data to a smart application linked to them, either through wireless Bluetooth syncing or plugging the device into users’ smartphone or PC. Then, the application provides useful feedback by informing the users their goals, progress, and the results of activity. Visual attractiveness of a wearable device defined by Yang et al. (2016) included an aesthetic product design expressed through the wearable device as well as through mobile applications linked to the device. However, the function and presentation of a wearable device itself and a smart application linked to the device are different. Simply, the wearable device is a hardware and the smart application is a software. To fully understand the role of a wearable fitness device which is physically presented on users’ body and a smart application linked to the device which requires more information visualization, this study examines the effects of design aesthetics of a wearable fitness device and the smart application linked to the device separately on the model of wearable fitness device and service acceptance. Introduced by Davis (1989), the TAM provides a framework for understanding the likelihood that individuals will adopt a new technology. The TAM postulates that two key factors predict a technological acceptance: perceived usefulness and perceived ease of use. Defined as “the degree to which a person believes that using a particular system would enhance his or her performance (Davis, 1989, p. 320)”, perceived usefulness describes the value users believe they could find in a wearable fitness device. Meanwhile, perceived ease of use is “the degree to which a person believes that using a particular system would be free of effort (Davis, 1989, p. 320).” According to the model, perceived usefulness and perceived ease of use combined to develop behavioral intentions which in turn lead to the adoption of a technology (Davis, Warshaw, & Bagozzi, 1992, p. 660). Regarding IT products and services adoption, researchers consistently found the positive relationship between perceived usefulness and behavioral intention to adopt a new form of technology. Zaremohzzabieh et al. (2015) found a positive relationship between perceived usefulness and behavioral intention to adopt a new form of information communication technology. Lunney, Cunningham, and Eastin (2016) examined factors affecting the adoption of wearable fitness trackers found that perceived usefulness was the key factor that influenced attitude and use. Furthermore, perceived ease of use was a direct determinant of usage behavior. Researchers have agreed that perceived ease of use also a key determinant of intention to use technology (Bhattacheijee & Hikmet, 2008; Lunney et al., 2016; Tzou & Lu, 2009; van der Heijden, 2003). In addition to the original TAM model, researchers have enhanced the model by including a hedonic component of enjoyment in the adoption of IT products and services (Childers, Carr, & Carson, 2001; Cyr et al., 2006; Dabholkar & Bagozzi, 2002). Davis et al. (1992) included perceived enjoyment in TAM defining it as “the extent to which the activity of using the computer is perceived to be enjoyable in its own right, apart from any performance consequences that may be anticipated (p.1113).” Researchers found the positive relationship between perceived enjoyment and use of technology (Cyr et al., 2006; Teo, Lim, & Lai, 1999; van der Heijden, 2003).This study investigates the antecedents, moderator and consequences of wearable fitness device and service acceptance considering them as fashion technology. With empirical analysis, the results will provide interesting insights and suggestions. First, findings will show the effect of design aesthetics on ergonomic conceptions (i.e., perceived usefulness and perceived ease of use) and an emotional factor (i.e., perceived enjoyment). This indicates that IT products are not purely results of engineering advances but be recognized as an instance of fashion objects (Tzou & Lu, 2009). Second, this study focuses on the synergistic effect of design aesthetics of smart application linked to a wearable fitness device which can motivate use of the device by providing the users more insightful information. Findings in the analysis of the effect of design aesthetics of the application and its adoption will provide deeper understanding on users’ wearable fitness device adoption by indicating overall service jointly influences users’ behavior. This study will provide useful insights and evidences to sports marketing managers how consumers make choices, how manufacturers should design services as well as hardware parts in the future.

ABSTRACT The growth of the social platform has led to a rapid increase in sustainable value cocreation activities with customers in order to know what a customer wants. In this study, we have studied about co-creation experience in social platform service. Previous prior studies have systematically classify co-creation between customer and enterprise as co-product and value-in-use, Conceptual factors. The co-creation and value-in-use factors theoretically derived from previous researches attempt to investigate the relationship between value co-creation experience and online service quality. We also tried to investigate the relationship between value co-creation experience and online service quality, customer equity, and online word of mouth. To do this, social platform services are divided into open sns and closed sns. Open SNS was targeted to Facebook, Twitter, and Pintrest users. Closed sns were targeted to Instagram, Cyworld, Band, and KakaoTalk users. In this study, it was confirmed that the relationship between online service quality, customer equity, and online word of mouth is significant through value co - creation experience. In the future, companies that design social platforms will be asked to do what they should do to co-create with customers, and provide suggestions for how to operate the platform in order to continuously activate value co-creative experiences.

The fashion products are believed that reinforce the inequities, exploit workers, spur resource use, increase environmental impact, and generate waste. Sustainability has been recognized as a major concern worldwide, and this also increases considerations regarding the challenges to business need to be faced in the fashion industry. When the fashion industry aims to promote sustainability, the main change factors have been linked to environmental and ethical issues in production. This paper aims to exploring an index for measuring sustainable performance of fashion company based on customer’s perception. The index measurement system is built from the basic dimensions of sustainability: economic, environment and social and the key influencing items in fashion industry: culture. Culture acts an important role in fashion consumption since it gives effects to customer’s behaviou and customer self-identity. Based on these four dimensions the this study designs a model related with customer’s perception and expectation to measure the evaluation of fashion company’s sustainable performance. Based on the result of index this paper studies how the customer’s evaluation upon sustainable performance works on customer’s loyalty. This index is designed for evaluating the sustainable performance of fashion company and give a direction to the managers in fashion industry that what the advantage is and weakness is in the sustainability strategy. It is efficiency for the managers to improve the sustainability strategy to match customer’s needs for engaging long-term benefit from fashion customers.

In consideration of the existing eco-friendly marketing research, it is only focusing on the type and characteristics of eco- friendly consumers. Therefore, in order to carry out more systematic and comprehensive eco-friendly marketing research, it is necessary to complement the comprehensive model that examines the mechanism by which the leading variables of the enterprises factors affecting consumer’s eco-friendly consumption behaviors. In this research, based on previous studies and literature considerations, it tries to present a research model that the core benefits and relational benefits of the retail store which is the advantage of VMD affect eco-friendly consumption behavior through consumer's implicit and explicit motivation. And, considering the environment, this study assumes the regulatory role of the perceived risk on the environmental problems under the relationship between green consumption motive and consumption behavior. The purpose of this research is as follows. First, it clarifies the influence of the benefits of eco-friendly VMD in fashion retail stores on the eco-friendly consumption motive, which is a psychological factor of consumers, as a leading variable of corporate factors affecting consumers’ green consumption behavior. The core benefits and relational benefits provided by eco-friendly VMD will identify differentiated impacts on consumer motivation, which is a psychological factor that drives green consumption behavior. Second, the types of motivations that cause eco-friendly behavior are classified into explicit motivation and implicit motivation, and this study tries to find out which type of motivation better predicts eco-friendly consumption behavior. Third, it tries to verify the moderating role of environmental perceived risk in the relationship between explicit motivation, implicit motivation and green consumption behavior. By further organizing the theme of eco-friendly marketing research, this study has its academic significance in that it derives a comprehensive model, moderating consumers’ green consumption behavior regarding eco-friendly marketing stimulates. It reveals the mechanisms that affect green consumption behavior backed by fashion retail stores where consumer buying behavior actually takes place. Based on this research, it is expected that subsequent studies of a more fragmented viewpoint for fashion retail stores’ eco-friendly marketing will be developed that will give consideration to consumers' green consumption behavior. Practically, the results of this research can be utilized very conveniently. In a practical dimension, if it becomes possible to thoroughly understand the mechanism by which eco-friendly VMD stimulation leads to green consumption behavior, retailers are possible to formulate an environmental marketing strategy peculiar to the target market segment. From a socio-policy perspective, retailers can encourage consumers' eco-friendly consumption by giving a stimulus of VMD to them. Moreover this study will promote companies to develop and manage healthier and more sustainable products.

Internet technology now allows products and services to be purchased through online or mobile shopping. Many firms open online and mobile stores or establish social network services to meet changing customer desires. Despite the convenience of online shopping, customers are often uncertain about product quality because they cannot see or touch products. Consequently, firms may use various certifications that assure product quality such as KC in the Republic of Korea, CE in Europe, and UL in the United States. In addition, consumers are becoming increasingly concerned that the fashion industry presents threats to the environment and well-being. In response, fashion manufacturers are turning to the use of organic, eco-friendly, sustainable fabrics. Most studies about organic manufacturing have focused on the food industry, but we contend that clothing is similar to the organic food industry in the importance of certification that guarantees whether products are produced organically. In this study, we focus on how consumers rely on certification when they search for information and purchase organic clothes for infants. We discuss theoretical and practical implications of our results.

Emotional sharing of brand has a power of connecting brand and consumer brand and consumer by transcending rational reason.

Social media play a role in the value that sneakerheads, individuals who collect, wear, and trade sneakers with extraordinary effort and resources, place on specific brands and models of sneakers. In-depth interviews with 25 sneakerheads, recruited through sneakerhead online communities and snow-ball sampling, were conducted to explore how social media contribute to emotional and monetary value creation of sneakers, as well as how social media is used across the Inventory Ownership Cycle (IOC) which includes pre-acquisition, acquisition, physical possession, and disposal of sneakers (Boyd & Mcconocha, 1996). Finding shows that during the pre-acquisition stage, emotional and monetary value is constructed when brands post images of celebrities wearing new models on various social media sites. Hype initially created by the brand is perpetuated by posts and conversations among sneakersheads. Perceived higher levels of hype lead one to believe demand surpasses supply, and therefore, monetary values of specific models increase. Through social media, consumers research and gauge the value not only of soon to be released sneakers, but also previously released sneakers only available on the resale market. During the acquisition stage, the online environment has become increasingly important. To avoid issues associated with selling high-demand/low-supply sneakers in- store, such as violent incidents and dishonest employees, many retailers have shifted sales of such product to online formats (Dunne, 2014). Social media serves as a platform for sneakerheads to learn about dates and locations of new releases and to locate resellers from whom they can purchase previously released sneakers. During the physical possession stage, sneakerheads engage with community members via social media; they show off their sneaker collections, as well as to obtain and share information regarding sneaker customization and maintenance to preserve aesthetics and value. It is through the engagement with fellow sneakerheads and the sneakers within their personal collections that emotional value can be further constructed. During the disposal stage, social media is used by resellers to determine monetary value, identify and communicate with potential buyers across the nation, and complete resale transactions. In summary, this research demonstrates how sneakerheads use social media throughout the IOC, as well as the role social media plays in the construction and identification of sneaker value.

The present research examines how a CEO exposed to the public through social media (e.g., Facebook) influences the trustworthiness of the CEO and his/her firm. In particular, we focus on and measure the consistency of a CEO’s fashion style across different occasions, and test the impact of the ‘fashion’ consistency on respondents’ perception on the CEO’s trustworthiness. Based on the previous literature on impression management, we define the consistency of a CEO’s fashion style as how similar (rather than different) the style of his/her clothes across multiple media exposures. We then manipulate the similarity of a CEO’s fashion style, which is the focal independent variable, and measure the subjects’ trust toward the CEO, which is the focal dependent variable. Study 1 is a scenario-based study in which participants read the description of either a fashion-consistent or -inconsistent CEO, and indicated the CEO’s perceived trustworthiness. We find that perceived trust is higher for the fashion-consistent CEO. Study 2 is an experiment in which participants read four news articles of a CEO featured on a social media (i.e., Facebook). Unbeknown to participants, fashion consistency was manipulated such that half of participants saw the news on a fashion-consistent CEO whereas the other half saw the news on a fashion-inconsistent CEO. Interestingly, the interaction between CEO gender and fashion consistency becomes significant, suggesting that for a male CEO, fashion consistency increased trust whereas for a female CEO, fashion inconsistency increased trust. The present research complements to the literature on the roles of fashion of employees including top managers on impression management. We also discuss other interesting and important implications of the results on the mechanism of the ‘fashion consistency’ effects.

Despite the growing trend of incorporating ethnic motifs, colors, and styles (i.e., ethnic-inspired designs (EIDs)) into mainstream fashion products in the US, there is yet a lack of understanding on what drives consumers to demand such products with EIDs. Although extant literature provides important insights as to what motivates consumers to favor EIDs, much of the studies have focused on the products’ appeals to particular ethnic groups with matching their cultural backgrounds. Less is understood on the core self-centric values mainstream consumers reflect into EIDs and the personal goal-pursuit they project by wearing them. We address this issue. Building upon Image Theory (Beach & Mitchell, 1987), our findings document that consumers’ purchase intent toward products with EIDs is more fundamentally driven by their aspirations to boost their self-view confidence by wearing EIDs (i.e., self-enhancement), which are guided by their core self-values that are represented by two personal values (i.e., cultural openness and seeking personal style) and two product values (i.e., perceived esthetics and perceived novelty).

Not all celebrity endorsements have been successful on social media. However, our understanding of the effectiveness of luxury brand celebrity endorsement advertising are limited. On the basis of Self-Congruity Theory (Sirgy, 1985), Meaning-Transfer Model (McCracken, 1989), and Match-Up Hypothesis (Kamins, 1990; Kamins & Cupta, 1994), this study investigates whether three components of image congruity (i.e., brand-celebrity, brand-self, celebrity-self) would influence brand attitudes, ad attitudes, and self-brand connection, and subsequently, influence consumer engagement and purchase intentions. This study also tests the moderating role of consumer type (followers vs. unfollowers of the social media brand page) in these relationships. After conducting a series of pretests to select a focal brand and celebrities, responses from 219 US female adults were used to data analysis. The results of structural equation modeling showed that brand-celebrity congruity was positively related to ad attitudes and brand attitudes. Brand-self congruity was positively related to ad attitudes, brand attitudes, and self-brand connection. Self-celebrity congruity was positively related to ad attitudes and self-brand connection but was negatively related to brand attitudes. Ad attitudes were positively related to brand attitudes and engagement intentions but were not related to purchase intentions. Brand attitudes were positively related to engagement intentions and purchase intentions. Self-brand connection was positively related to engagement intentions, and engagement intentions were positively related to purchase intentions. Finally, the results of a multi-group analysis showed that for unfollowers (n=125), ad attitudes were positively related to engagement intentions but brand attitudes were not. On the contrary, for followers (n=94), brand attitudes were positively related to engagement intentions but ad attitudes were not. This study highlights that self-brand connection is the key to cultivating consumer engagement on social media, along with the consumer’s positive attitudes toward the celebrity endorsement ad and the brand per se. If luxury brands wish to interact with their followers and increase their engagement, they need to focus their efforts on improving brand attitudes and self-brand connection through their brand pages. Our findings suggest that celebrity endorsed advertising contributes to creating self-brand relationships (Dwivedi et al., 2016) but it should be considered as a long-term investment.

This study addresses how agency costs influence the sustainability of different types of corporate governance. The luxury fashion brand could spend large sums of money on maintenance of magnificent brand image, thereby increasing the agency cost. On the contrary, the brand may hold down wasteful spending to report a gaudily financial achievement. Agency costs are defined either to vertical costs arising from the relationship between stockholders and managers, or to horizontal costs associated with the potential conflicts between majority and minority stockholders. Agency costs are measured by the value of the principal component. The study conducted regression analysis of each agency cost index, luxury fashion brand dummy and a set of control variables. The findings show that the agency costs of the firms with luxury fashion brand exceed those of control group.

The purpose of this study is to investigate the interrelationships among customer perceived value, customer satisfaction, and switching costs as antecedents of customer loyalty in business-to-business (B2B) contexts. Customer loyalty influences firms’ performance as a key source of competitive advantage. Customer loyalty is essential in B2B contexts, although many studies of customer loyalty have focused on the business-to-consumer (B2C) context. Recently, the use of robotics in the industrial marketing environment has become increasingly prevalent. Given the prevalence of robotics in B2B contexts and the importance of customer loyalty, this study investigates the impacts of robotics in industrial marketing relationships, customer perceived value, customer satisfaction, and switching costs on enhancing customer loyalty.

This research was conducted in order to examine whether the type of credit card (premier vs. standard card) influences consumer purchase decisions regarding luxury consumption. The present research reports three experiments with online panels of non-student adults, which find that (1) the use of a premier card (vs. a standard card) leads to a more goal-congruent choices, (2) the effect is mediated by a temporary increase in the perception of pride, and (3) the effect is pronounced for people with a low level of chronic pride. The effect of payment methods on consumer spending has been a concern of theory and research in consumer behavior (Bernthal, Crockett, & Rose, 2005; Feinberg, 1986; Prelec & Lowenstein, 1998; Soman, 2001). This research stream has shown that consumers tend to spend more when they use a credit card than when they pay cash and has proposed various theoretical mechanisms to account for the phenomenon (Chatterjee & Rose, 2012; Prelec & Simester, 2001; Soman, 2001; Thomas, et al., 2011). However, researchers have paid little attention to the effect of different types of credit cards (i.e., premier vs. standard card) on consumer decisions. We contend that the use of a premier card (vs. a standard card) can increase the feeling of pride momentarily and in turn increase consumers’ motivation to pursue a long-term goal that they value. As a result, they prefer a choice alternative that is more congruent with the goal. To be specific, the use of a premier card would increase the choice of luxury alternative, and that this effect would be pronounced for those who value material possessions (i.e., high materialism). This expectation was confirmed in the studies that we have performed. In three experiments, participants were shown a credit card(either premier or standard) and were asked to assume that they were going to use it for their purchase. Then, they were asked to make choices in shopping contexts. Participants with premier credit card, compared to those with standard card, showed more goal-consistent choices. They were more likely to choose luxury alternatives, and this effect was apparent only for those who have a high materialistic value. When the choice set includes both a low-calorie food and a high-calorie food, the use of a premier card increased the choice of low-calorie food, and this effect was apparent only for those with diet goal. These effects were mediated by the feeling of pride. Three studies in combination provide insights into the effect of types of credit cards on consumer spending regarding luxury consumption and the processes underlying the effect, which have not been reported elsewhere. The use of a premier credit card (vs. a standard credit card) led to a greater choice of luxury alternatives over standard alternatives and a greater choice of low-calorie foods over high-calorie foods. However, these effects were apparent only when people highly valued the goal under consideration (i.e., high materialism or strong diet goal). Finally, these effects were attributable to a momentary increase in the perception of pride by virtue of the use of a premier card, and consequently, the effects were observable only for people who have a relatively low chronic pride. The effects we observed in this research generalized over different product categories and different long-term goals. Nevertheless, it is desirable to extend findings in more diverse consumption categories (e.g., services) as well as to identify additional variables that moderate the magnitude of the effect. In addition, it is worth considering alternative underlying mechanisms than the one we considered (i.e., the feeling of pride) in future research. For example, a premier card may increase individuals’ construal level, thereby affecting consumer purchase decisions.

Individual safety is a fundamental concern. People generally try to avoid danger or mishaps in the workplace, and to consider safety as a primary condition for satisfactory employment and agreeable shopping experiences. Organizations can assure that workers, clients, the public, and the environment perceive that they are in safe environments by providing highly secure services. Secure working environments and safety-focused human resource environments are essential antecedents to safe performance and outcomes. Dangerous workplace environments cause employees to feel stress and anxiety. Thus their performance decreases and accidents and injuries increase. Workplace safety is the most important factor influencing service and performance, especially for allowing frontline salespersons to focus on providing customer satisfaction. In this study of workplace safety, we apply the service quality dimension to examine its relationship with employee perceptions of job satisfaction and their related job performance. We discuss theoretical and practical implications based on the results.

Social media marketing offers a vast array of opportunities for fashion brands to engage with their core customers and the broader digital audience. However, they still struggle with the question of which specific strategies can be successfully applied to enhance the effectiveness social media marketing (Rampton, 2014). This study investigates how a luxury brand’ social media brand page satisfaction and brand love are positively related to desired marketing outcomes (i.e., word-of-mouth and loyalty intentions toward the luxury brand). On the basis of Customer Value Theory (Sweeny & Soutar, 2001) and Brand Love Theory (Carroll & Ahuvia, 2006), this study developed and tested a dual impact model encompassing both brand page value (i.e., information, financial, brand interaction, social interaction, and entertainment value) and brand value (i.e., inner self-and social self-expressive value). Usable responses from 290 U.S. consumers following at least one luxury brand on social media were used for data analysis. The results of structural equation modeling showed that information, brand interaction, and entertainment values were positively related to brand page satisfaction while financial and social interaction values were not. In addition, inner self-and social self-expressive brand values were positively related to brand love. In addition, brand page satisfaction was positively related to WOM intentions but was not related to loyalty intentions whereas brand love was positively related to both WOM and loyalty intentions. Furthermore, mediation analysis showed that brand page satisfaction fully mediated the influences of information, brand interaction, and entertainment values on WOM intentions. In addition, brand love fully mediated the influences of social self-expressive value on WOM and loyalty intentions. Our study suggests that social media brand pages providing unique value propositions can reap benefits in terms of enhanced brand page satisfaction, highlighting the crucial role of “content excellence” in social media marketing (Holt, 2016). Our findings also show that brand followers tend to love a particular luxury brand when the brand helps express their self and when the symbolic meaning of the brand is integrated into their own self-identity. Thus, one of the roles of social media marketing is in elucidating brand followers how to express their inner states guided by the desire to signal their self-identity not to others but to themselves (Berger & Heath, 2017).

This study focuses on the value of fashion social platform and investigates the relationships between knowledge sharing and customer value. The study examines the effects of social network attributes on knowledge sharing in social platforms and the effects of knowledge sharing on customer value in social platforms. In the context of a fashion social platform, this study clarifies the concept of customer value, the role of knowledge sharing, and the relationships between knowledge sharing and customer value. The study builds a theoretical model regarding fashion social platforms and customer value that offers implications for fashion management practitioners.

Effective branding strategy requires systematic management of brand identity and brand image. Brand identity refers to the company’s plan with regard to what associations consumers hold for the brand, whereas brand image refers to the associations consumers actually hold for the brand. According to Aaker (1996), brand identity consists of brand essence, core identity, and extended identity. Brand image, on the other hand, consists of attributes, benefits, and attitudes (Keller, 1993). Given the nature of brand identity and brand image, branding strategy aims to strengthen congruence, but lessen discrepancy among the components. The strategy can be either manipulative or reflective, i.e., changing brand image to correspond with brand identity or changing brand identity to adopt brand image, respectively. Branding strategy of SPA (Specialty Store Retailer of Private Label Apparel: i.e., fast fashion) brands is not an exception. However, SPA brands are characterized as quick response production capabilities with enhanced design capabilities to produce "hot" products that capture the latest consumer trends and exploit minimal production lead times to match supply with uncertain demand (Cachon & Swinney, 2011). Consequently, branding strategy of SPA brands is expected to be more reflective than manipulative. The primary purpose of this study is to verify the expectation, analyzing the branding strategy of the big 3 SPA brands: ZARA, Uniqlo, and H&M. All being SPA brands, the big 3 brands still need to differentiate from the competitors. From the perspective of this study, the differentiation strategy is expected to be manifested in the components of brand image to reflect, i.e., more emphasis on the reflection of attributes, benefits, or attitudes. Accordingly, this study also examines how the details of branding strategy differ among the big 3 SPA brands in this regard.

This research examines how advertising message effectiveness differs depending on media types that provide fashion information among teenagers. Employing cloth consumption value and ‘fitness’ of fashion style, young people’s attitudes toward advertising and brand of fashion product were analyzed. Theoretical contribution and practical implication for fashion industry are discussed. Introduction Teenagers are an important consumer group in the clothing market, and the market size is expanding. They are more likely to absorb new information and respond to social influences, compared to other age groups. Thus, it is expected that teenagers are greatly influenced by the fashion information gained when making a purchase decision. In adolescence, the peer group is especially influential, as well as the media. Therefore, it is possible that their use of information source will differ from other groups. The most popular medium for Korean teenagers in recent years is social media. A Social Network Service (SNS) is a web-based service that allows individuals to build social relationships, providing a place for users to exchange information and opinions by providing a platform for communication (Boyd & Ellison, 2007). As development of mobile Internet technology, smart phone or tablet PC is commonly used in Korea and SNS becomes vital way for communication for young people. Most of teenagers are using SNS daily and exchanging their opinion each other. Recently, it attracts increasing attention for marketers to deliver advertising messages as a new marketing tool. Fashion companies widely employ SNS in their marketing activities to enhance brand images, retain customers (Cho & Park, 2012). SNS serves as a platform for “many-to-many” interactive communication, unlike traditional mass media for ‘one-to-many’ communication. Unlike traditional media, SNS has a wider influence on participants. Therefore, exactly the same message could be differently functioned by the advertising delivering system. This study seeks to look at how message effectiveness differs depending on the type of media that provides fashion information. As mentioned earlier, social media has distinct characteristics from the traditional mass media. Thus, even when it is the same advertising information, its impact on the consumer can vary when transmitted through the mass media and through social media. In addition, social media is a collection of various social platforms that share specific properties rather than a single media. Thus, depending on the type of social media, the same ad information can also be expected to elicit differing responses from consumers. In this study, female youth were studied as subjects of research. The survey method was utilized. This will allow us to explore the impact of various media on female youth's response on fashion advertisement. Understanding the sources of information important in youth will help develop effective clothing products marketing. The use of clothing sources varies depending on the group. Therefore, each vendor is expected to establish effective marketing methods through research on the use of the clothing information sources of the target audience. Theoretical Background Type of Media In this study, type of advertising media was mainly categorized as follows: Social Network Service (SNS) and mass media. More specifically, SNS was reassigned into three by characteristics of service such as network-type, share-type, and blog-type (Chung & Lee, 2015). Overall, four types of media were analyzed in this study and each service was represented by Facebook, Instagram, Twitter, and magazine ad in the order named. Social Desirability and SNS Along the development of Internet based technology (IT), ways of advertising placement became diverse and moved focus on IT based service including SNS. Especially for young people, fashion industries are willing to catch their eyes on SNS. By the nature, young SNS users are eager to search, blog, and share what they have earned on SNS for various reasons. Sharing fashion information is very important for young female. Their expressions on SNS mean what they are; what I eat, wear and so on. A fellow feeling, so called ‘we-ness’, is extremely essential for Korean young people. Looking alike does not only share collectivistic spirits, but also makes feel not fall behind the trendy style. Using SNS is one of the best ways of confirming their fellow feeling and at the same time it reduces peer pressure. From the domain of fashion marketing, research on communication had been mostly focused on mass media, and research on SNS communication, sharing of consumption information among consumers had been insufficient (Jun & Park, 2013). Fashion companies are recently trying to utilize SNS as a new alternative to have efficient effects with little costs. The SNS communication effect plays a large role in the consumption of consumers and analyzes the influence of SNS on the responses of the customers. SNS has the characteristic in which recommendations of friends or reliable acquaintances based on trust are important (Jung & Cho, 2016). Fashion Information Source and Clothing Consumption Value Consumers’ choice of clothing is based on the information gained. Information provided by the media or other people's clothing is the main source of decision making. In this case, the media and the surrounding people will become sources of desirable fashion style. Earlier, Cox(1967) classified the type of information sources as marketer-driven sources, consumer-driven sources, and neutral sources. Several scholars classified information sources as personal and non-personal sources, and direct observations and experiences (Andreasen 1968, Sproles 1979). Park and Yoo(2000) classified consumers according to fashion lifestyles and analyzed the sources of information that each group utilized. Each group tended to use different types of fashion information sources. Fashion-following group and personality-oriented group utilized more media and personal information, such as print media and television, compared to pragmatism group and conformity group. Personality-oriented group tends to use more direct observation than other groups. Conformity group showed the least use of mass media, purchase experience, observation, and interpersonal information source. This result shows that the types and degree of information used varies depending on the consumer’s fashion lifestyle. Research has found that clothing consumption value is one of the major variables which affect consumer’s use of information source. Among several classifications of consumption values, Sheth’s model is the most utilized model in Korea fashion academia (Han and Kim, 2002). Sheth et al. (1991) classified consumption values into functional value, social value, emotional value, epistemic values, and conditional value. Han and Kim (2002) classified consumer groups into 4 groups utilizing Sheth’s classification: the Conspicuous, the Epistemic, the Social/Conformitive, and the Indifferent. There were significant different among the four groups in information search process. The Conspicuous and the Epistemic more tend to search carefully the clothes inside the store or in the show window than other groups. The two group members answered that they make a decision based on my own tastes than the other groups. Research Questions and Hypotheses Based on the earlier discussion, we propose following research question and hypotheses. Research Question 1: Would advertising message’s effect on young people’s attitudes toward advertising and brand of fashion product be different, depending on their consumption value of clothing? Hypothesis 1-1: Consumers in different consumption values groups will show different response to the same advertising message delivered through different channels. Specifically, social conformity group are more likely to show positive attitude toward advertising and brand presented on network-type SNS than advertising and brand presented on other platforms. Hypothesis 1-2: The Expressive is more likely to show positive attitude toward advertising and brand presented on magazine than other groups are. Research Question 2: Would advertising message’s effect on young people’s attitudes toward advertising and brand of fashion product be different, depending on their age group? Hypotheses 2-1: Young women will have better responses to SNS-based ads than magazine ads to older women. Research Question 3: Would advertising message’s effect on young people’s attitudes toward advertising and brand of fashion product be different, depending on their perception of ‘fitness’ of their desired fashion style? Hypotheses 3-1: When they perceive the presented style on the ad does not fit to their desired fashion style, network-type SNS is more likely to get positive attitude from the social conformity group than from the other groups. Methodology This present study aims to investigate the effects of advertising message by operating delivering system on consumers’ attitude toward fashion advertising and purchase intentions. This research employed a 4 (consumption value of clothing: expressive, practical, unique, social/conformity) X 4 (Advertising media type: network-type SNS, share-type SNS, blog-type SNS, and magazine) X 2 (fashion style fitness: fit/not fit) between subjects factorial design. The survey was conducted on 200 more young females, aged 16 to 24. Main Discussion Points This study aims to investigate how a fashion product ad works depending on the type of media on which the fashion advertising presents. To do this, authors will compare the advertising effectiveness among magazine ad, Facebook (Network type SNS), Instagram (Share type SNS), and Twitter(blog type SNS). First of all, we are going to examine how each advertising medium works depending on consumer’s consumption values, their age, and the perception of fitness of their desired fashion style. Based on the results, the theoretical contribution and practical implication will be discussed. This discussion will provide us deeper understanding on how fashion industry utilizes advertising media when female youth is a major target group

This study employs the resource-based view to understand how product strategy influence export performance. According to the organizational learning perspective, moreover, the ability to manage existing assets and capabilities and the development of new capabilities are arguably among the most relevant innovation success factors. Based on these theoretical backgrounds, a model is proposed to analyze the effects of cost leadership and differentiation strategy on export performance, as well as the moderating effects of exploitative and exploratory innovation capability. Using survey data from Korean exporters, the findings indicate that the cost leadership and differentiation strategy enhance export performance. While exploitative innovation capability strengthens the relationship between cost leadership strategy and export performance, exploratory innovation capability enhances the link between differentiation strategy and export performance. Introduction The trade-off between cost leadership strategy and differentiation strategy is of importance and presents a key challenge to exporters because it is intrinsically related to innovation (Gebauer, 2008; O’Cass et al., 2014). Nevertheless, resources are limited, and firms must make choices in their allocation and determine the extent to which they will emphasize one strategy over another (Danneels, 2007; Lant, Milliken, & Batra, 1992). Although the individual roles of product strategies or innovation capabilities on export performance have attracted considerable attention (e.g., Hortinha, Lages, & Lages, 2011; Lages, Silva, & Styles, 2009; Molina-Castillo, Jimenez-Jimenez, & Munuera-Aleman, 2011), few studies have assessed their integrating impact - that is, the difference in the strengths of the relationships between cost leadership or differentiation strategy and innovation. Drawing on resource based view, we examine how innovation capabilities related with the relationship between cost leadership and differentiation strategies and exporters’ performance. Thus, we consider the moderating role of two distinct capabilities - exploratory innovation and exploitative innovation - on the relationships between product strategies and export performance. Exploratory innovation includes activities aimed to enter new product-market domains, while exploitative innovation activities improve existing product-market domains (He &Wong, 2004). The objectives of this study are to explore (1) impacts of cost leadership strategy and differentiation strategy on export performance, (2) moderating effects of exploitative and exploratory innovation capability on the relationship between product strategy and export performance, and (3) these relationships in the context of Korean exporters. The Korean exporting firms are more concentrated on international markets because of limited size of domestic market (Nugent & Yhee, 2002). These characteristics of Korean exporters are more useful to examine the effect of product strategy and product innovation capability of firms on export performance in international markets. Conceptual Background Product Strategy and Competitive Advantage Porter (1980) argues that a firm can achieve a higher level of performance over a rival in one of two ways: either it can supply an identical product or service at a lower cost, or it can supply a product or service that is differentiated in such a way that the customer is willing to pay a price premium that exceeds the additional cost of the differentiation. A cost leadership strategy is designed to produce goods or services more cheaply than competitors by stressing efficient scale of operation. When a firm designs, produces, and sells a comparable product more efficiently than its competitors as well as its market scope is industry-wide, it means that the firm is carrying out the cost leadership strategy successfully (Campbell-Hunt, 2000). Thus, the primary thing for a firm seeking competitively valuable way by reducing cost is to concentrate on maintaining efficiency through all activities in order to effectively control every expense and find new sources of potential cost reduction (Dess & Davis, 1984). The differentiation strategy provides value to customers with the unique attributes or perceptions of uniqueness, and characteristics of a firm’s product other than cost. The firm pursuing differentiation seeks to be unique in its industry along some dimension that is valued by customers, which means investing in product R&D and marketing (Porter, 1980). Rather than cost reduction, a firm using the differentiation needs to concentrate on investing in and developing such things that are distinguishable and customers will perceive (Gebauer, 2008). Overall, the essential success factor of differentiation in terms of strategy implementation is to develop and maintain innovativeness, creativeness, and organizational learning within a firm (Dess & Davis, 1984; O’Cass et al., 2014; Porter, 1985). Innovation Capability in International Markets A firm’s ability to compete in the long term may lie in its ability to integrate product strategy and its existing capabilities, while at the same time developing fundamentally new ones (Lavie & Rosenkopf, 2006). Simultaneous investments in the exploitation of existing product innovation capabilities and the exploration of new ones may help create a competitive advantage (Soosay & Hyland, 2008). Organizational learning represents the development of knowledge that influences behavioral changes and leads to enhanced performance (Crossan, Lane, & White, 1999; Fiol & Lyles, 1985). Product innovation is a tool for organizational learning and, thus, a primary means of achieving its strategic renewal (Danneels, 2002; Dougherty, 1992; O’Cass et al., 2014). Exploration pertains more to new knowledge - such as the search for new products, ideas, markets, or relationships; experimentation; risk taking; and discovery - while exploitation pertains more to using the existing knowledge and refining what already exists; it includes adaptation, efficiency, and execution (March, 1991). Exploration and exploitation compete for the same resources and efforts in the firm. With a focus on exploring potentially valuable future opportunities, the firm decreases activities linked to improving existing competences (Levinthal & March, 1993; March, 1991). In contrast, with a focus on exploiting existing products and processes, the firm reduces development of new opportunities. However, firms must develop both exploratory and exploitative capabilities because returns from exploration are uncertain, often negative, and attained over the long run, while exploitation generates more positive, proximate, and predictable returns (Levinthal & March, 1993; March, 1991; Özsomer & Gençtürk, 2003). Researchers have shown that both types of learning are essential to enhancing firm performance (Leonard-Barton, 1992; March, 1991). In this study, we use exploration and exploitation to describe two innovation-related capabilities that are critical elements on the relationship between product strategies and export performance. International markets are turbulent and diverse with respect to customer needs, cultures, and competitiveness; therefore, innovation assumes a primary role (Kleinschmidt, De Brentani, & Salomo, 2007). Firms can leverage their innovations by securing business opportunities in those markets and thus increase their innovative capabilities (Knight & Cavusgil, 2004). Through exploratory innovation, firms develop new competences and thus enhance superior export performance by product strategies (Teece, Pisano, & Shuen, 1997). Exploitation activities are also important to exporters because they facilitate the lower-risk extension of export operations. By searching for solutions in the existent competence base, exploitative innovation increases efficiency and productivity. Accordingly, this study based on organizational learning perspective to support the idea that innovation capabilities are a vehicle for a product strategy, and achieving superior export performance. We advance the literature by allowing for a role of product strategies while also considering moderating effects of innovation capabilities. Moreover, we provide insights into how choices about emphasizing one product strategy over another relates the balance between exploration and exploitation. Hypotheses Product Strategy and Export Performance Porter’s cost leadership and differentiation strategies have been linked to the achievement of superior performance by many studies (Campbell-Hunt, 2000; Dess & Davis, 1984). A firm that successfully pursues a cost leadership strategy emphasizes “aggressive construction of efficient-scale facilities, vigorous pursuit of cost reductions from experience, tight cost and overhead control, avoidance of marginal customer accounts, and cost minimization in areas like R&D, service, sales force, advertising, and so on” (Porter, 1980: 35). A firm can, therefore, gain a competitive advantage over its rivals by having significantly lower cost structures in an industry without ignoring other areas such as product and service quality (Amoako-Gyampah & Acquaah, 2008). Thus, the maintenance of a strong competitive position for an organization pursuing a cost leadership strategy places a premium on efficiency of operations and scale economies that enable them to achieve and sustain their performance for a considerable period of time. In addition, with a cost leadership strategy, firms focus on reducing costs through operational efficiency. For example, they might exploit existing facilities and learn how to reduce costs through automation, modernization, capacity utilization, or economies of scale. Efficiency, control, planning, and variance reduction represent the key elements of a cost leadership strategy, and a typical example of a cost leadership strategy involves the implementation of an experience curve, on which cumulative production determines reductions in unit production costs. Firms engage in economies of scale and/or scope when they apply their knowledge and facilities from existing product lines to product line extensions. The associated positional advantage is a cost advantage pertaining to the firms’ value offering and is based on the product’s price–perceived value proposition in the export market. Hypothesis 1: Cost leadership strategy is positively associated with export performance. A firm that pursues a differentiation strategy may attempt to create a unique image in the minds of customers that its products are superior to those of its competitors (Miller, 1988). A firm creates these perceptions through advertising programs, marketing techniques and methods, and charging premium prices. Moreover, a firm may pursue a differentiation strategy by creating a perception in the minds of customers that its products possess characteristics that are unique from those of its competitors in terms of differences in design, physical attributes/features, and durability (Gebauer, 2008). Differentiation strategy aims to generate more outwardly focused product innovations that offer customers product differences that shape a distinctive value offering that is more responsive to their needs (Hughes, Martin, Morgan, & Robson, 2010; O’Cass et al., 2014). The associated positional advantage is a product or market differentiation advantage pertaining to the superior brand, quality, design, and product features that differentiate the firms’ value proposition from its competitors in the export market. Hypothesis 2: Differentiation strategy is positively associated with export performance. Moderating Effects of Innovation Capability From the generation of new ideas through to the launch of a new product, exploration and exploitation play a vital role in product innovation (Rothaermel & Deeds, 2004). Organizations can decide to use existing organizational competences to realize short-term results, or create new competences that may foster the development of innovations in the longer term (Atuahene-Gima, 2005). Both types of capabilities are considered to be dynamic in nature (Winter, 2003), given that their purpose is to transform existing resources into new functional competences that provide a better match for the firm's environment (Voss, Sirdeshmukh, & Voss, 2008). Although both exploitative and exploratory capabilities related to cost leadership and differentiation strategies, because of those different roles of capabilities in innovation process, the effects of those innovation capabilities on the relationship between product strategy and export performance might be different. In case of cost leadership strategy, firms focus on using and developing existing capabilities, promoting improvements in existing components and building on existing technological elements (Benner & Tushman, 2003; Rust et al., 2002). Similarly, exploitative innovation is aimed at improving existing product-market domains. The cost leadership strategy creates value through existing competences or competences that have been slightly modified (Voss et al., 2008). It promotes a routine-based and repetitive approach to organizational changes (Rust et al., 2002). Because exploitative innovation builds on existing knowledge and extends existing products and services for existing customers (Soosay & Hyland, 2008), exploitative capabilities helps firms pursuing cost leadership strategy to reap the benefits of improvement they make to their products and to continue making incremental improvements (Brucks, Zeithaml, & Naylor, 2000), which are designed to allow the firm to continue its superior performance (Griffin, 1997). Hypothesis 3: Exploitative innovation capability moderates the relationship between cost leadership strategy and export performance positively. Compared to cost leadership strategy, differentiation strategy is characterized by radical change, risk and experimentation and that allows for the creation of new methods, relationships, and products. Because exploration focuses mainly on trying to create variety, to adapt and hence exploit ever-decreasing windows of opportunity (Soosay & Hyland, 2008), this capability is more beneficial to the kind of product innovativeness to the firm (Augusto & Coelho, 2009). When exporters pursue differentiation strategy for acquiring new knowledge and developing new products and services, exploratory capability helps to engage new insight into the design of new features and benefits of a given product, that product is guaranteed to contain new ideas (Cho & Pucik, 2005; Yalcinkaya et al., 2007). In contrast with exploitation aimed at improving existing product-market domains, explorative innovation requires fundamental changes in the way an organization operates and represents a clear departure from existing practices (Menguc &Auh, 2006). Hypothesis 4: Exploratory innovation capability moderates the relationship between differentiation strategy and export performance positively. Discussion Focusing on product strategy through the application of the RBV has provided theoretical insights as well as empirical evidence as to which capabilities are required to achieve these critical product strategy outcomes. The support from this study provides further evidence of the usefulness of applying the RBV to the export setting and should encourage researchers to examine the other aspects of export strategy. Based on organizational learning perspective, in addition, this study found that exploratory and exploitative innovation capability are essential to the firm because they act as vehicles for renewing product strategy to achieve superior export performance. By considering product strategy with exploration and exploitation simultaneously, we present a new perspective of the roles of these product strategies in the development of firms’ innovation capabilities. Our results indicate that cost leadership and differentiation strategy are pivotal in ensuring a proper balance between exploratory and exploitative innovations. One of the main implications for managers is that both exploratory and exploitative product competences should consider in parallel when developing product strategy. The findings underscore the need for managers to invest in cost leadership and differentiation strategy to ensure the development of exploration and exploitation. Therefore, resource allocation decisions should, consider the firm's needs for innovation capabilities and, on the other hand, be guided by the firm’s product strategy. Exporters operate in highly complex environments, characterized by high levels of technological and market uncertainties and highly diverse and dispersed customers (Kleinschmidt et al., 2007; Mohr & Sarin, 2009). Therefore, in addition to the product strategy toward the development of innovations using state-of-the-art technologies, managers of these firms need a similarly strong focus on understanding both current and potential exporting markets. By acknowledging the need for product strategy, managers can ensure the balanced innovation capabilities.