The growth of the Chinese outbound market has been phenomenal during recent years and still highly concentrates on neighboring Asian destinations. In particular, the Hong Kong Special Administrative Region heavily depends and focuses on the Chinese tourism market. Recent calls for a possible diversification of the tourism market have nevertheless failed to shed light on how Hong Kong residents perceive the benefits of mainland Chinese tourism. In order to mend this gap, this study collected 850 online questionnaires with Hong Kong residents. Subsequent cluster analysis has shown that there are 3 segments in regard, namely “low”, “moderate” and “high” perceived benefits. A significant age gap among these 3 clusters was identified, with older respondents generally perceiving the highest benefit. Fifteen semi-structured follow-up interviews have shown the reason to be predominance of idealism in younger generations of Hong Kong, while older generations tend to be pragmatic. Possibilities for future studies are finally highlighted.

The Social Network System (SNS) has possesses unique characteristic which distinguish it in important ways from traditional communications environment because the social network system allows a fundamentally different environment for communication marketing activities. The traditional marketing communications model was uni-directional, due to the fact that mass communication is a one-to-many process whereby a company transmits content through a medium to a large group of people. Today, communication paradigm has shifted online and is many to many, known as a bi-directional strategy. Bi-directional strategy mediates communications model in which 1) consumers can interact with the medium and with each other, 2) companies can provide content to the medium and interact with each other, 3) companies and consumers can interact, and in the most radical departure from traditional marketing environments to determine how brand relationship is affected. In this paper, we use the social network system as a new marketing communication medium. We use the key Mohr & Nevin’s communication strategies: frequency, direction, content, and modality to measure communication quality, and then implement communication quality by using the attitude and e-WOM intentions. Rich understanding of SNS communication quality can help focus the managerial efforts on vital communication factors, which stimulate positive assessments of communication behaviors. Furthermore, practitioners may better understand which dimensions of communication facets/aspects are more appropriate

In a context of unprecedented migration home reaches high relevance. This study aims at understanding the (re-)construction of home by first generation consumer migrants. The findings provide insights into consumers’ (re-)construction of various dimensions of home and identify “inner home” as a new dimension in the context of consumer migration.

Recent decades have seen a number of policies have been launched to promote information disclosure on food products marketed in developed countries. There has also been increasing efforts to promote healthy eating in developing economies (Cowburn & Stockley 2005). A good example appears in China, where, in an effort to improve health education, nutrition labels became mandatory under the Nutrition Labeling Act (NLA) since 2013. Additionally, food labeling regulations were issued by India, Mercosur members and South Africa. While nutritional labeling has received a lot of attention both in academia and from the press, there are some key gaps in the nutrition labeling literature. One issue of how standardized information requirements affect firm marketing responses (e.g., advertising levels. R&D investment, and corporate social responsibility programs) and performance has been understudied. Another clear gap in the literature is how nutritional labeling requirements affect developing economies.

As social media platforms (e.g., Facebook) and related online communication channels (e.g., review websites and community forums) grow in quantity and commercial orientation, marketing practitioners and scholars alike have recognised the importance of understanding and influencing online consumer communication processes. Specifically, it is suggested that online opinion leaders (‘Epinion leaders’) can be utilised as a target group to manage negative e-word-of-mouth (‘e-WOM’) and e-complaints. This study identifies and targets Epinion leaders and explores three central personality characteristics – altruism, self-confidence and the need for uniqueness – as a means of understanding Epinion leaders’ motivations to communication and tailoring corporate communication campaigns. The study focusses herby on the rapidly growing and increasingly influential 50-years+ e-commerce segment (i.e., ‘silver surfers’). Based on an online survey of 1,700 e-consumers aged 50 years and older, the proposed structural equation model verifies the positive influence of Epinion leadership on the propensity to spread negative e-WOM and e-complaints while demonstrating the applicability of personality characteristics as means of influencing consumers’ online communication strategies. The findings demonstrate that addressing consumers’ self-confidence can be an essential way of reducing negative e-WOM and encouraging e-complaints, which show opposing effects on customer satisfaction. For practitioners, this study emphasises the usefulness of negative Epinion leaders as a target group and recommends fostering consumers’ self-confidence in order to prevent negative online opinion-cascades and increase overall satisfaction.

Performance in new product development projects influences companies’ success and competitiveness. Co-development is one possible pathway for companies to develop new products effectively in cooperation with their customers. However, there are multiple factors affecting the outcomes of such cooperations. In this research, we develop a new and comprehensive conceptual framework that explains success of co-development projects in B2B. As part of this framework we integrate multiple relevant underlying mechanisms. In particular, organizational design, cultural aspects, power structures within the project team, and how co-development is framed within companies are key drivers because of their high relevance for the success of co-development projects. This conceptual work contributes a conceptual foundation for further empirical research within the co-development area and has interesting implications for managerial practice. In line with this endeavor, the framework serves as basis for an ongoing data collection, which considers supplier project managers, supplier team members, and customers.

This interpretive and longitudinal study investigates how a group of Chinese students consume global brands of American origins, in China and in the UK. More specifically, this research examines how meanings attached to global food brands travel abroad with consumers and investigates the relationship between brand consistency and brand meanings across national boundaries. Findings from a thematic analysis of longitudinal data collected through focus group interviews over a nine-month period, reveal that some brand meanings are context and culture specific (contextual meanings) while others meanings travel with consumers across borders (core meanings). Theoretically, this study shows how global brands provide a platform of structural meanings, ideas and practices that are global and globalising in themselves, allowing a degree of fluidity and adaptation in relation to the local context of consumption.

This research aims to look at the contradictory effects of corporate social responsibility as conducted by luxury brands. On the one hand, corporate social responsibility (CSR) is known to product positive effects on brands such as the transfer of goodwill and image but on the other hand because of the purported impact of disfluency, previous research has argued that the emphasis on self enhancement runs counter to the more social agenda of CSR. In this study we examine of power and how that can mediate when positive and negative impact of CSR when such campaigns are implemented by luxury brands.

With increasing income and education, requirements to product quality are getting higher in China. Specifically, people tend to nutrition and health now. Food safety has attracted increasing attention due to its importance. The nutrition claims on packaging became one of the most important standards to decide whether to buy. A great deal of research has focused on consumer responses (e.g., Hieke and Taylor 2012; Parker & Lehmann 2014; Shah et al. 2014) to the influx of product information to markets. Topics of research included the impact on consumers’ beliefs with regards to products (Ford et al. 2005), purchasing behavior (Nikolova and Inman 2015), and information processing behavior (Moorman 1990). The diversity of consumer responses is based on consumer differences (Moorman 1990), and health- and nutrition-related (HNR) claims (Choi et al. 2013). Although a great deal of research has addressed the influence of product information disclosure on the market, these studies have focused almost exclusively on developed economies. Going forward it is very likely that emerging markets will play a more important part in corporate strategic planning, as opposed to something considered after making plans for long developed markets. Thus, the impact of market information is likely to matter more and more to those global marketers operating in emerging markets. To fill the research gaps, we investigated how the existence and forms of nutrition claims affect the purchase intention of consumers in China. We explore the moderating role of consumer’s nutrition knowledge. We combine simulation experiment and questionnaire and design two experiments: Experiment 1 is about the existence of nutrition claims, we want to know how the existence of nutrition claims affects the purchase intention of consumers. Experiment 2 which is 2(health claims Vs function claims)×2 (promotion Vs prevention) test is to find out how the claim presentation forms impact the purchase intention of consumers. In experiment 1, we required the subjects to choose one setting randomly and fill in the questionnaires according to their choices. We collected 315 effective questionnaires of experiment 1and 156 effective questionnaires of experiment 2. The results show that: (1) The existence of nutrition claims affects the purchase intention of consumers. specifically, compared with the product without health claims, consumers tend to choose the one with health claims, and compared with the product without function claims, consumers tend to choose the one with health claims.(2)Nutrition knowledge plays a positively role. Nutrition knowledge can change the effect of the existence of health claims and function claims on purchase intention.(3) Consumer trust only plays a partly moderate role. The consumer trust can increase the effect of the existence of function claims but not health claims on purchase intention.(4)The forms of nutrition claims affect consumers purchase intention. Consumers tend to choose the product with promotion claims more than the one with prevention claims.(5) Nutrition knowledge plays a positively role, it can improve the effect of the forms of health claims on purchase intention. The more nutritional knowledge does consumers comprehend, the more sensitive to the product with promotion claims they are.(6)Consumer trust also plays a positively role. The higher Consumer trust does consumers maintain, the more sensitive to the product with promotion claims they are.

We study liberals and conservatives in the United States and Korea to see how they respond to charity advertising that appeals to either equality or proportionality. The findings robustly demonstrate that in both countries, liberals respond more favorably to equality appeals, but conservatives respond more favorably to proportionality appeals. Study 1, conducted in the United States, finds that liberals find equality appeals more effective, but conservatives find proportionality appeals more effective. Study 2, conducted in Korea, shows that liberals (conservatives) estimate that they are more (less) likely to receive rewards for donating when charity advertising uses equality rather than proportionality appeals.

In today’s global marketplace, few consumers would bat an eye at a Central European retailer selling products manufactured in the US from raw materials purchased in Asia and Africa. Recently, Finnish connoisseurs of local craft beer were shocked to discover that even their local microbreweries were getting in on the act, albeit somewhat involuntarily. Strict regulations that govern the sale of alcoholic beverages in Finland essentially prevent the smallest breweries from distributing their products in the local market. Ironically, the only way for these small businesses to reach their local customers is through internationalization – setting up an online store across the border and serving the Finnish market from abroad. Drawing on the context of alcohol policy in Finland as an illustrative example, this study demonstrates how global markets can offer small businesses a way to counter unfavorable or discriminative local public policy. The study also illustrates the potential impact that businesses can have on policy by drawing public attention to its shortcomings, and offers implications for practitioners by highlighting the importance of thorough evaluation of policies for possible inconsistencies and outlining possible indicators that such inconsistencies may be present.

Most major consumer goods manufacturers market multiple brands within a single product category. Companies may sell brands of different quality levels (e.g., Giorgio Armani, Armani Collezioni, and Armani Exchange). And, within each quality level, companies sell variants of a brand, which differ in functionality (Crest’s cavity protection, tartar control, and whitening toothpastes). With the ultimate goal of securing consumer purchase, companies offer an increasing number of brands, which can result in “overlap” between the brands in a firm’s portfolio. We define overlap from a consumer’s perspective as the degree to which a brand is perceived to offer the same product features as other brands owned by the same firm. The few seminal papers (Aribarg & Arora, 2008; Hui, 2004; Morgan & Rego, 2009) indicate that overlap brings with it a number of compelling advantages and disadvantages, thereby having the potential for positive or negative outcomes. Thus the question arises: When does overlap have a positive or negative effect on consumers’ brand evaluations? We argue that the actual effect of overlap on consumer evaluations depends on two strategic marketing factors: (1) the dominance of the corporate brand versus the product brand in marketing communications of a product, and (2) the type of overlap – vertical (i.e., overlap between products that vary in quality) or horizontal (i.e., overlap between products that vary in functionality). A 2 x 4 between-subjects factorial design was employed to test consumers’ responses to overlap of product extensions under different conditions. The stimulus was developed in two categories: chocolate and wine. The stimulus involved a picture of the packaging for a fictitious product extension for a real parent company (Hershey’s in the chocolate category and Yellow tail in the wine category), accompanied by a descriptor providing product information such as details of its price and features. We collected data using an online questionnaire via Amazon Mechanical Turk. A sample of 366 individual consumers provided data across both the chocolate and wine categories. Our initial results for the chocolate product category indicate that, for the vertical extension, Cocoa Black, consumers evaluated the chocolate bar for which the product brand was dominant more favourably (μ = 5.44) than that for which the corporate brand was dominant (μ = 4.95). This evaluation difference was statistically significant (t = -1.84, p < .05). For the horizontal extension, Peppermint Air Delight, there was a significant difference in evaluation for overlapping products (t = 1.74, p < .05) for which the corporate brand was dominant (μ = 4.60), compared to that for which the product brand was dominant (μ = 3.96). These preliminary results show promise in terms of providing practitioners with prescriptive guidelines for managing overlap to their benefit. The results of this study will be presented in full at the Global Marketing Conference 2016.

This study explores the role of corporate involvement and brand perception in moderating the Cause Related Marketing on consumer purchase intention in the luxury product category among Japanese consumers. This research examines three core cause attributes - cause scope, cause type and cause acuteness developed by Vanhamme, Lindgree, Reast and van Popering (2012) as well as an additional component of duration – with corporate involvement and brand perception moderating the effect on purchase intention. The general public places judgment on a corporation based on how much of positive or negative impacts its business has on environment or society (Sheikh & Beise-Zee, 2011). In fact, more corporations have been developing corporate social responsibility (CSR) programs, no matter how big their business sizes, big or small, are (Brinkvan, Odekerken-Schroder, & Pauwels, 2006). The general public loses its faith in corporations, especially after a financial crisis or malfeasances of big corporations and as a result, corporations are under stronger pressure to contribute to environmental or societal causes in order to reclaim lost faith from the general public (Sheikh & Beise-Zee, 2011; Berglind & Nakata, 2005). One way corporations contribute to society has been to employ marketing strategies that link product sales to the support of specific charities to create and maintain favorable brand images known as cause related marketing or CRM. CRM has been growing faster as a type of marketing that allow corporations to contribute to environment or society (Brinkvan et al., 2006). Various factors have been extensively researched on and identified as pertinent in the success of cause-related marketing campaigns such as brand-cause fit (Bigne-Alcanniz, Currase-Perez, Ruiz-Mafe and Sanz-Blas, 2011; Nan and Heo, 2007; Samu and Wymer, 2009), donation size (Dahl and Labvack, 1995; Pracejus, Olsen and Brown, 2003), types of causes (local causes are preferred to national ones) (Ellen, Mohr, and Webb, 1996; Smith and Alcorn, 1991) and product type with luxury products found to be more effective (Strahilevitz and Myers, 1995).

Customers often rely on peers’ opinions and experiences when forming expectations and evaluating a service provider. New media channels such as consumer review platforms and social networking sites help customers obtain firsthand information from other customers to evaluate a service. Prior research confirms the effects of positive electronic word of mouth (eWOM) on recipients, yet less is known about how companies should respond to negative eWOM. The authors conducted a series of experimental studies in the context of new media online channels (i.e., consumer review sites and social media brand pages) to investigate the effects of various company response strategies on consumers’ perceptions. The results have two implications for service firms: First, adequate response strategies to negative eWOM compensate for the negative effects that occur when Internet users attribute responsibility to the firm. Second, the findings indicate that firms need both adequate response strategies and an engaged community to restore their perceived trustworthiness in consumers’ eyes.

Brand equity, “the marketing effects uniquely attributable to the brand” (Keller, 1993, p. 1), is at the heart of competition in the luxury goods market (Keller, 2009). While firms competing in this segment have come up with sophisticated ways to build brand equity, they are currently challenged by the increasing importance of the internet in consumers’ journeys (Kapferer & Bastien, 2012; Okonkwo, 2009). With online sales of luxury goods showing a twelvefold increase over the past 11 years (D’Arpizio et al., 2014), it is evident that luxury brands have to be present somehow in the digital environment today (Heine & Berghaus, 2014). The strategic purposes, business potentials, and consequences for brand equity of this presence, however, are still largely unexplored and remain a paradoxical topic. As a luxury brand’s website is the brand’s most valuable digital asset (Heine & Berghaus, 2014) and as there appears to be a consensus that luxury brands can use their websites to present their products in the digital environment, at least for purposes of communication, the question arises which products are most suitable for reinforcing the brand’s image. The roles a luxury brand’s products can play in relation to brand management can be classified between four poles spanning two dimensions, which this research terms ‘accessibility’ and ‘contemporariness’, in relation to Kapferer and Bastien’s (2012) luxury brand architecture map. Empirical evidence of these dimensions is, nevertheless, scarce, and yet no prior research has investigated these product roles in an e-commerce setting. The current study develops a model to test how an online purchase option and the contemporariness as well as the accessibility of the product assortment offered on the websites of luxury brands affect specific brand equity dimensions of luxury brands. Data of a 2x2x2-online scenario experiment were analyzed, showing that prestige and uniqueness value are non-significantly affected by offering an online purchase option, while functional value increases significantly. Regarding the displayed product assortment, the brand equity dimensions of functionality, prestige, and uniqueness are found to be significantly affected by the inaccessibility of the products, while their contemporariness elicits significant changes in uniqueness value. The study also assesses the mediating role of the brand attributes of availability, price premium, aesthetics, and innovativeness, as well as the moderating role of consumers’ prior brand ownership, for these effects.

The Internet is providing companies with an opportunity to market their goods more widely than has been the case in the past. This is having implications for senior managers as it means that some luxury goods are being made available to a wider market segment than previously and also, there are issues as regards authenticity and counterfeiting for example. Cultural value systems underpin psychological needs which are taken into account when advertising a brand and in addition, marketers are keen to build a relationship with customers, which takes into account the customers’ psychological aspirations. Meeting consumer expectations is crucial in the luxury sector because of the value placed on uniqueness and the price-quality dynamic. Bearing these points in mind, the research question to be addressed in this paper is: How can marketers utilize the Elaboration Likelihood Model (Petty & Cacioppo 1984 & 1986) in order to maintain the quality of the luxury brand and develop a relationship with high net worth individuals while marketing the product online? The aim of the paper is to explain how marketers can develop a better understanding of how the Elaboration Likelihood Model (Petty & Cacioppo 1984 & 1986) can be utilized to develop theoretical insights into promoting luxury goods online. Bearing this in mind, two research objectives were formed: (i) to explain how the Elaboration Likelihood Model can be used to formulate international luxury brand strategies; and (ii) to provide guidance as to how marketers can develop a better understanding of marketing luxury products online. The study will build on the work of Hennessey and Anderson (1990), as it will explain how involvement affects motivation vis-à-vis luxury brands. By studying luxury brands, the Internet, and social psychology, it should be possible for marketers to provide marketing practitioners with relevant theoretical insights into how marketing theory is evolving and is applied in practice. The Elaboration Likelihood Model represents “a fairly general framework for organizing, categorizing, and understanding the basis processes underlying the effectiveness of persuasive communications” (Petty & Cacioppo, 1986, p.125) and proves ideal with respect to researching cultural value systems. The Elaboration Likelihood Model allows academic researchers to look into and comprehend cognitive processing (Cacipppo, Harkins, & Petty, 1981, p.37). The main strength of the Elaboration Likelihood Model is that the variables that can impact certain judgements are made clear and in addition, the processes underlyingchanges in attitude are made known and so too are the resulting judgements (Petty, Rucker, Bizer, & Cacioppo, 2004, pp.66-67). The Elaboration Likelihood Model has been extensively used by marketing academics and has relevance in terms of how people formulate a systematic information processing strategy (De Meulenaer, Dens, & De Pelsmacker, 2015, p.610). Marketers are concerned about the price-quality dynamic and also the trust construct (Shu-Chen, Wanchiao, Sung, & Cheng-Kiang, 2006) and risk (Park, Lennon, & Stoel, 2005) vis-à-vis buying online. Furthermore, how online consumers interpret signals has been given attention (San Martin, Camarero & San Jose, 2011) and according to Areni (2003), argument-driven persuasion is important and will be given attention in the study. Attention will be given to luxury branding, the development of an international brand strategy and how marketers can protect a luxury brand through a marketing intelligence strategy that counteracts counterfeiting. As well as utilizing data collected via a group interview, reference will be made to data collected over a three year period using a survey instrument. The Elaboration Likelihood Model (Petty & Cacioppo 1984 & 1986) will be used as a basis for providing a framework for understanding how a luxury brand can be perceived and protected, and the research outcome will be used by marketers to advise senior management about the need for implementing an integrated international luxury brand strategy. For example, research has been undertaken into the relevance of the construct trustworthiness and it is important to note that “trustworthiness is an attribute of individual exchange partners” (Barney and Hansen, 1994, p.176). This is an important observation because the producers of luxury goods depend on a number of external specialists (eg., designers, communication and public relations advisors, and manufacturers of specialist components) in order to help the company to add value to the product/service and make sure that it is viewed as unique. Marketers employed by a luxury goods producer need to ensure that data and information relating to the product offering is well guarded because they need to have confidence in the fact that there are no vulnerabilities in existence. A vulnerability could result in leakage of sensitive data and information (e.g., a new design) and result in a loss in intellectual property and ultimately brand piracy and reputational damage. By failing to identify potential vulnerabilities and deal with them through adequate counter threat measures, it is likely that it will take several years and require a repositioning and a rebranding strategy to recover the brand in the market. What we are advocating is a marketing counterintelligence strategy that is aimed at reinforcing the need and usefulness of security to protect the brand and ensure that the brand is not diluted in any way. Another reason as to why marketers need to engage in risk management is because there are a number of country-of-origin issues that arise and need to be addressed. Balabanis and Diamantopoulos (2011) have indicated that consumers are not always able to link a brand correctly with its country-of-origin and this may prove problematic. This is linked with brand image perceptions and again the Elaboration Likelihood Model can help to provide evidence that is used by marketers to overcome consumer misperceptions. Reflecting on the fact that marketers are confronted with legitimate competition (products and services compete in adherence with regulatory processes) as well asillegal forms of competition, it can also be argued that marketers need to be aware of and embrace the standards that govern the production of the product/service to the quality specified. Thus, senior management need to ensure that employees lower down the organizational hierarchy are committed to maintaining the standards that are in being (Ghoshal and Bartlett, 1994, p.96). Ghoshal and Bartlett (1994, p.98 and pp.106-107) add to our understanding by suggesting that marketers need also to have a shared ambition and participate in a collective decision-making, which relies upon collective learning. The logic of this view manifests in the fact that the Elaboration Likelihood Model is used to reinforce and condition the views of the employees as well as the organization’s customers and because it has both an internal and an external dimension. Because marketers work closely with organizational strategists that are outward looking and intelligence driven, and liaise with R&D, technology and production staff that are inward looking and security driven, they are well able to contribute to the risk management process and advise on all the aspects of marketing strategy. The research undertaken will be placed within a strategic marketing context and the learning aspect will be drawn upon to show how marketers can link social psychology theory with marketing theory, and how risk communication can be used to reinforce the advertising message. The paper will explore the advertising-consumer perception dynamic and will examine how the Elaboration Likelihood Model (Petty & Cacioppo 1984 & 1986) can be used to promote the uniqueness of a luxury good to individual consumers who share and exchange information using social networks. The influence of social networks is growing and marketers need to be aware of how and why consumers share and exchange information as they do across geographical boundaries. In particular, it will build on the work of Michaelidou and Christodoulides (2011) by establishing how certain psychological factors influence attitudes towards counterfeited products and what marketers can do to counteract these attitudes. This will contribute to the literature because it will highlight both price related and ethical related issues associated with the purchasing of counterfeited goods. In addition, it will allow marketers to identify trends in customer buying behavior and build on the work of Jack and Powers (2013) relating to shopping behavior and consumer satisfaction. By understanding better the motivations of those that purchase luxury products, marketers will be better able to plan product offerings and formulate and implement promotional strategies.

Marketers often attribute the premium charged on a luxury brand over a value brand to innovation in product form (Von Hippel 1986). One way of conveying this innovation is through the use of perceptual cues which use visual depiction of a product (Gregan-Paxton, Hoeffler, and Zhao 2005). Consequently, what we think of as high fashion or innovation in product form is essentially novelty in the perceptual cues of a product (Cox and Cox 2002) and it is known that moderate levels of novelty can increase complexity (or incongruity) of product design and is in general, favored by consumers (Cox and Cox 2002). However, despite the fact that novelty in form offered in high fashion or complex products is expected to bring value, we predict that novel designs are perceived as more favorable depending on their positioning as luxury (value) brands. In detail, we expect that value brands more than luxury brands benefit from novelty of form and that peripheral cues in product design informs a sense of brand authenticity which drives preferences. Past research showed that a product’s positioning in advertising moderates the effect of schema incongruence on product evaluation (Noseworthy and Trudel 2011). When products with a moderately incongruent design are positioned based on their functionality, they are evaluated more favorably. Conversely, when products are positioned based on experiential dimensions, this effect is reversed, and moderately incongruent designs are evaluated less favorably. We believe that these relationships can be explained using the perception of hedonic or utilitarian benefits offered by the product. In general, consumers are motivated by utilitarian concerns until they think that they have earned the right to indulge in hedonistic consumption (Kivetz and Simonson 2002). With congruent products, consumers may infer functionality from memory, and they are therefore liberated to indulge in hedonic pleasure. With incongruent products, however, consumers must work out the functionality of the product for themselves. Thus, we expect that brand positioning will influence the way novel designs are evaluated on functionality, such that novel designs are perceived as more functional in the value (vs. luxury) brand positioning (H1). Also, we predict that consumers of luxury brands will prefer prototypical designs to novel ones (H2). Recently, Stanton, Townsend, and Kang (2015) analyzed automobile market and showed that consumers prefer novel designs if their consideration set includes allpossible automobiles, but changed to prototypical designs, when the consideration set was entry-level automobiles. In addition, Hagtvedt and Patrick (2014) revealed that altering the form of a product has a more positive impact on product evolutions in a utilitarian context rather than a hedonic one. This is because luxury brands have a greater capacity to be extended into other product categories due to their hedonic potential, namely their ability to provide emotional benefits (Hagtvedt and Patrick 2009). Based on these findings, we postulate that brand positioning will moderate the influence of product design on functional evaluations and perceived comfort, such that only under the value (vs. luxury) brand positioning, individuals will prefer novelty over typicality. Lastly, given the consumers’ motivation of luxury brands for conspicuous consumption and desire for authenticity (Beverland and Farrelly 2010), we predict that consumers will avoid novel designs in a luxury brand. We believe this to be true because in order to convey the status which such consumers seek, the brand must be instantly and easily recognizable to others. In this case, a novel design can be a threat to this transmission of status, and may bring about less favorable evaluations of the brand. As a result, a novel design, even a moderately incongruent one, will be seen as a violation of the brand’s authenticity and the diminished authenticity will therefore explain the less favorable evaluations. Thus, we expect that for value (vs. luxury) brand positioning, brand authenticity will mediate the effect of product design on evaluations (H3). To test our hypotheses, a pilot study was conducted in advance to identify whether luxury positioning would influence the perceptions of functionality when evaluating the same novel design. Participants (N = 102; 63.7% female; Mage = 35.78) were recruited in an online panel and were randomly assigned to one of two conditions of brand positioning: a value brand positioning or a luxury brand positioning. The experiment was a between-subjects factorial design and from the pretest, Serafini brand was chosen as a luxury brand and New Balance brand was chosen as a value brand. Then, Participant saw an advertisement that featured the novel shoe design and indicated their perceived functional efficacy, the concept (value-luxury) of a presented product, and perceived status conferred by purchasing the product. As expected, participants saw Serafini as more of a luxury brand (M = 4.76) than New Balance (M = 3.92) and indicated that purchasing the same product by Serafini conferred more status to someone (M = 4.83) in comparison to purchasing the same product by New Balance (M = 4.22; t(100) = 2.18, p < .05). Importantly, participants viewed the novel design featured in the luxury brand advertisement of (Serafini) as less functional (M = 4.95) in comparison to the novel design featured in the value brand advertisement (New Balance; M = 5.50; t(100) = 2.19, p < .05) although the design of the two products were the same (H1 supported). Next, in Study 1, we intended to identify whether brand positioning would influence typical designs of a product in the same way that it would novel designs. Participants (N = 263; 59.7% female; Mage = 38.03) were recruited in an online panel and were randomly assigned to one of four conditions in a 2 (brand positioning: value vs. luxury) × 2 (product design: typical vs. novel) between-subjects factorial design. In this study, however, we used a fictitious watch brand (Dali) to manipulate the brand positioning. Manipulations were adopted from Hagtvedt and Patrick (2009). Like pilot test, pretestconfirmed that the manipulations worked as intended (Mvalue = 4.85; Mluxury = 5.67; t(39) = 2.19, p < .05) and participants rated Dali as having different abilities to confer status (α = .81; Mvalue = 4.43; Mluxury = 5.26; t(39) = 2.68, p < .05). After, each participant saw an advertisement that featured the new product and that corresponded to the randomized condition that they were assigned and responded to the questionnaires asking their perceived functional efficacy, overall attitudes toward the product, perceived comfort as well as the measures for the manipulation checks. As expected, result showed that in the absence of luxury brand positioning, the novel design was evaluated more favorably (M = 5.00) than the typical product design (M = 3.90; F(1, 259) = 18.74, p < .001). This effect was consistent with past studies that demonstrate the moderate incongruity effect (Noseworthy and Trudel 2011; Meyers-Levy and Tybout 1989; Mandler 1982). However, in the presence of the luxury brand positioning, this difference was not significant (Mnovel = 4.46 vs. Mtypical= 4.25; p = .41). Also, an analysis of functionality indicated that in the value brand condition, the novel design was perceived to be higher in functionality (M = 4.88) than the typical product design (M = 4.39; F(1, 259) = 4.25, p < .05). However, in the presence of the luxury brand positioning, this difference was not significant (Mnovel = 4.57 vs. Mtypical= 4.79; p = .35). Finally, analysis of comfort indicated that in the value brand condition, the novel design was perceived to have more comfort (M = 4.45) than the typical product design (M = 3.82; F(1, 259) = 6.97, p < .01). However, in the presence of the luxury brand positioning, this difference was not significant (Mnovel = 4.14 vs. Mtypical= 4.33; p = .44). Thus, the results supported H1 and H2. To replicate the observed effects and to identify the underlying mechanism, Study 2 was followed. Same recruitment method and experimental design in Study 1 was used with a fictitious camera brand OLEG. Pretest confirmed that the manipulations worked as intended. Experimental procedures were similar to Study 1. However, this time, brand authenticity was measured (Morhart et al. 2015) in addition to the measures used in Study 1. Again, result indicated that in the absence of luxury brand positioning, the novel design was evaluated more favorably (M = 4.85) than the typical product design (M = 3.92; F(1, 209) = 10.30, p < .005) and in the presence of luxury branding, this difference was not significant (Mnovel = 4.50 vs. Mtypical= 4.57; p = .80). Also, result showed that in the value brand condition, the novel design was perceived to be higher in functionality (M = 4.79) than the typical product design (M= 3.89; F (1, 209) = 11.75, p < .001) and in the presence of the luxury brand positioning, this difference was not significant (Mnovel = 4.44 vs. Mtypical= 4.51; p = .79). Regarding comfort, in the value brand condition, using the camera with the novel design was perceived to be more comfortable (M = 4.49) than the typical product design (M= 3.82; F(1, 209) = 6.34, p < .01). However, in the presence of the luxury brand positioning, this difference was not significant (Mnovel = 4.06 vs. Mtypical= 4.25; p = .46). Lastly, mediated moderation analysis (Hayes 2012; Model 8; bootstrapped with 10,000 draws) found that only when design presented was typical, was there mediation through authenticity (95% confidence interval [CI]: .07, .86), but not when presented with the novel design (95% CI: -.60, .24) and thus, provided support to H3.Overall, three studies showed that while product evaluations and functional inferences with novel designs are higher for value brands, they are not for luxury brands. Also, we provided perceived authenticity as an underlying mechanism. From our findings, we provide four theoretical contributions. First, by showing that only value, not luxury brands benefit from novel product design, we demonstrated that brand positioning is another moderator to the effect of schema incongruity that consumers prefer a moderately incongruent product design over a congruent design or an extremely incongruent design (Noseworthy and Trudel 2011; Meyers-Levy and Tybout 1989; Mandler 1982). Second, although the research in product design and innovation has shown that the novelty in perceptual cues may signal innovativeness to consumers and thus engender favorable product evaluations (Gregan-Paxton, Hoeffler, and Zhao 2005; Cox and Cox 2002), we found that such novelty in perceptual cues in product design may not work in certain circumstances – when the product is positioned as luxury. Third, this research contributes to the understanding of luxury branding by offering evidence that prototypical designs benefit luxury brands because they increase perceived authenticity. Fourth, we broaden the research on authenticity in the aspect that merely having a novel or fashion forward design may impair authenticity and cause unexpected results. Managerially, we provide guidelines in that although brands benefit from novel designs in general, the manager of a luxury brand should be cautious when changing the design of a luxury good, especially ones in which functionality and comfort are important attributes. In other words, a luxury brand manager should adopt fashion and design in a way that is beneficial to the consumer. Some luxury brands, such as Porsche, are well-respected for their innovation, while other luxury brands, such as Louis Vuitton create value through promotion of a particular lifestyle (Reddy and Terblanche 2005). For brands that are particularly sought for their functional benefits, like Porsche, the importance of the impact of novel designs on perceptions of authenticity is particularly important. In addition, managers must be aware that novelty is not always perceived the same way. Consumer inferences on functionality and comfort can be elicited for fashion forward designs for value brands, where the novelty of design is used as a strategic tool. Nevertheless, when it comes to the luxury products, this effect might not appear and impairs brand authenticity. To extend our research, potential future research may examine the effect of novel designs on inconspicuous luxury goods. When conspicuous consumption is decoupled from the luxury brand, it is doubtful that prototypical designs would still be favored among consumers of luxury brands. Also, future research could examine the effect of other kinds of innovation. In our research, we mainly examined the product form and design as a method of innovation. However, it is possible that other kinds of innovation method can be used (i.e., change in product concept) and thus, can be potential future research topics. Finally, we believe that how other kinds of positioning might influence the relationship that we revealed could be studied further. For example, there are instances where value brands try to create a luxury line. In such instances, the effect of authenticity may differ from what we observed.

This conceptual paper is motivated by personal industry experience from over 100 customer-purchasing decisions from the machine tooling industry. The insights suggest that the customer’s ability to pay (ATP) constitutes a key deal-breaker criterion for value-based decision making that up to date has been overlooked in research. Customers may be willing, but unable to pay for the offering with the highest perceived value, simply because they lack the financial resources. The traditional view on value-based marketing strategies proposes that firms must provide offerings that create value for their customers (premise 1: customer need perspective) and that the value created must be superior to competition (premise 2: competitor perspective) while generating profits (premise 3: firm’s perspective). Customers will estimate which offering provides superior value, and they will choose the offering that delivers the highest value. I introduce the customer’s ability to pay as an additional foundational premise suggesting that the firm’s offering must also be within the customer’s budget (premise 4: customer budget perspective). I propose that frontline employees must not only develop a high degree of customer need knowledge, but they must also build-up a high level of customer budget knowledge. I conclude by deriving operative and strategic management implications supported with empirical evidence from the Australian machine tooling industry.

이 연구는 ‘상무위원은 처벌하지 않는다(刑不上常委)’는 중국정치의 잠재된 관례를 파기하 고 사법과 공안 분야의 막강한 대항력을 갖춘 저우융캉을 어떻게 처벌할 수 있었는지에 대한 의문에서 시작됐다. 그간 중국 지도부가 상징적으로 중앙위원급 고위관료 처벌을 감행했지만, 중국정치의 핵심 행위자(actor) 역할을 하는 상무위원(常務委員)을 처벌 대상에 포함하지 않 았다. 이들의 조사 과정에서 강력한 대항력과 정치적 비용(political cost), 그리고 공산당의 통치력 약화가 초래될 수 있기 때문이다. 하지만 시진핑은 출범 후 제창했던 의법치국(依法 治國)의 국정기조 상충을 무릅쓰고 사법기관보다 당 차원의 중앙기율위를 이용해 저우융캉 처벌에 매진했다. 그 결과 중앙기율위는 저우융캉 계파의 부패망을 역이용해 주변에서 중심 으로 그의 부패 대리인을 조사하며 옥좼으며, 종국에는 원로들의 동의를 얻어 저우융캉을 처 벌할 수 있었다.

One of the overlooked points in mosquito blood feeding research is a final step before blood feeding. We provide the anatomical and chemosensory evidence that a piercing structure of the mouthpart of the mosquitoes is an essential apparatus for the penultimate stage in blood feeding in mosquitoes. Indeed, the stylet possesses a number of sensory hairs located at the tip of the stylet. These hairs house olfactory receptor neurons that express two conventional olfactory receptors of Aedes aegypti (AaOrs), AaOr8 and AaOr49, together with the odorant co-receptor (AaOrco). In vivo calcium imaging using transfected cell lines demonstrated that AaOr8 and AaOr49 were activated by volatile compounds present in blood. Taken together, we identified olfactory receptor neurons in the stylet involved in mosquito blood feeding behaviors, which in turn indicates that olfactory perception in the stylet is necessary and sufficient for mosquitoes to find host blood in order to rapidly acquire blood meals from a host animal.