Showing papers in "Journal of Marketing Research in 2001"

Index Construction with Formative Indicators: An Alternative to Scale Development

Abstract: Although the methodological literature is replete with advice regarding the development and validation of multi-item scales based on reflective measures, the issue of index construction using formative measures has received little attention. The authors seek to address this gap by (1) examining the nature of formative indicators, (2) discussing ways in which the quality of formative measures can be assessed, and (3) illustrating the proposed procedures with empirical data. The aim is to enhance researchers’ understanding of formative measures and assist them in their index construction efforts.

Does Doing Good Always Lead to Doing Better? Consumer Reactions to Corporate Social Responsibility

Abstract: In the face of marketplace polls that attest to the increasing influence of corporate social responsibility (CSR) on consumers’ purchase behavior, this article examines when, how, and for whom specific CSR initiatives work. The findings implicate both company-specific factors, such as the CSR issues a company chooses to focus on and the quality of its products, and individual-specific factors, such as consumers’ personal support for the CSR issues and their general beliefs about CSR, as key moderators of consumers’ responses to CSR. The results also highlight the mediating role of consumers’ perceptions of congruence between their own characters and that of the company in their reactions to its CSR initiatives. More specifically, the authors find that CSR initiatives can, under certain conditions, decrease consumers’ intentions to buy a company’s products.

Satisfaction, Repurchase Intent, and Repurchase Behavior: Investigating the Moderating Effect of Customer Characteristics

Abstract: Despite the claim that satisfaction ratings are linked to repurchase behavior, few attempts can be found that relate satisfaction ratings to actual repurchase behavior. This article fills this void by presenting a conceptual model for relating satisfaction ratings and repurchase behavior. The model is based on the premise that ratings observed in a typical customer satisfaction survey are error-prone measures of the customer’s true satisfaction, and they may vary systematically on the basis of consumer characteristics. The authors apply the model to a large-scale study of 100,040 automotive customers. Results show that consumers with different characteristics have different thresholds such that, at the same level of rated satisfaction, repurchase rates are systematically different among different customer groups. The authors also find that the nature and extent of response bias in satisfaction ratings varies by customer characteristics. In one group, the response bias is so high that rated satisf...

Why Some New Products Are More Successful Than Others

Abstract: Product innovation is increasingly valued as a key component of the sustainable success of a business’s operations. As a result, there has been a noticeable increase in the number of studies directed at explicating the drivers of new product success. To help managers and researchers synthesize this growing body of evidence, the authors conduct a meta-analysis of the new product performance literature. Of the 24 predictors of new product performance investigated, product advantage, market potential, meeting customer needs, predevelopment task proficiencies, and dedicated resources, on average, have the most significant impact on new product performance. The authors also find that the predictor–performance relationships can vary by measurement factor (e.g., the use of multi-item scales, subjective versus objective measures of performance, senior versus project management reporting, time elapsed since product introduction) or contextual factor (e.g., services versus goods, Asian versus North America...

Response Styles in Marketing Research: A Cross-National Investigation

Abstract: Response styles are a source of contamination in questionnaire ratings, and therefore they threaten the validity of conclusions drawn from marketing research data. In this article, the authors examine five forms of stylistic responding (acquiescence and disacquiescence response styles, extreme response style/response range, midpoint responding, and noncontingent responding) and discuss their biasing effects on scale scores and correlations between scales. Using data from large, representative samples of consumers from 11 countries of the European Union, the authors find systematic effects of response styles on scale scores as a function of two scale characteristics (the proportion of reverse-scored items and the extent of deviation of the scale mean from the midpoint of the response scale) and show that correlations between scales can be biased upward or downward depending on the correlation between the response style components. In combination with the apparent lack of concern with response styl...

Cross-Functional Product Development Teams, Creativity, and the Innovativeness of New Consumer Products

Abstract: Multiple studies have found that the primary determinant of new product failure is an absence of innovativeness—the extent to which a new product provides meaningfully unique benefits. Given the persistence of this finding and the growing use of cross-functional teams in new product development projects, the authors examine how innovativeness is affected by various characteristics of cross-functional teams and contextual influences on the team. On the basis of a study of 141 cross-functional product development teams, the authors find that innovativeness is positively related to the strength of superordinate identity in the team, encouragement to take risk, customers’ influence, and active monitoring of the project by senior management. Beyond a moderate level, social cohesion among team members has a negative effect on innovativeness. The effect of superordinate identity on innovativeness is strengthened by encouragement to take risk and weakened by social cohesion. Functional diversity has no e...

Entrenched Knowledge Structures and Consumer Response to New Products

Abstract: Although diffusion models have been successfully used to predict the adoption patterns of new products and technologies, little research has examined the psychological processes underlying the individual consumer’s adoption decision. This research uses the knowledge transfer paradigm, studied often in the context of analogies, to demonstrate that both existing knowledge and innovation continuity are major factors influencing the consumer’s adoption process. In two experiments, the authors demonstrate that the relationship between expertise and adoption is relatively complex. Specifically, their findings indicate that, compared with novices, experts report higher comprehension, more net benefits, and therefore higher preferences for continuous innovations. However, for discontinuous innovations, experts’ entrenched knowledge is related to lower comprehension, fewer perceived net benefits, and lower preferences compared with that of novices. Only when this entrenched knowledge is accompanied by rel...

Misleading Heuristics and Moderated Multiple Regression Models

Abstract: Moderated multiple regression models allow the simple relationship between the dependent variable and an independent variable to depend on the level of another independent variable. The moderated relationship, often referred to as the interaction, is modeled by including a product term as an additional independent variable. Moderated relationships are central to marketing (e.g., Does the effect of promotion on sales depend on the market segment?). Multiple regression models not including a product term are widely used and well understood. The authors argue that researchers have derived from this simpler type of multiple regression several data analysis heuristics that, when inappropriately generalized to moderated multiple regression, can result in faulty interpretations of model coefficients and incorrect statistical analyses. Using theoretical arguments and constructed data sets, the authors describe these heuristics, discuss how they may easily be misapplied, and suggest some good practices fo...

Examining the Impact of Destructive Acts in Marketing Channel Relationships

Abstract: In virtually all marketing channel relationships, one of the parties eventually will engage in an action that another channel member considers potentially destructive for the relationship. How a particular channel member reacts to such an act has implications for the long-term viability and success of the relationship. On the basis of a large data set collected from both a focal supplier and its independent dealers, the authors classify dealers’ responses to a supplier’s destructive acts by extending the response typology of exit, voice, and loyalty, which is based on Hirschman’s seminal writings on responses to decline in organizations and states. This study finds that dealers’ reactions are influenced by several antecedent factors: perceived intensity of the supplier’s destructive act, the attributions relative to the act, relationship quality before the act, and the level of interdependence between dealer and supplier. The results suggest that these more proximal dealer responses affect subseq...

Designing conjoint choice experiments using managers' prior beliefs

Abstract: The authors provide more efficient designs for conjoint choice experiments based on prior information elicited from managers about the parameters and their associated uncertainty. The authors use a Bayesian design procedure that assumes a prior distribution of likely parameter values and optimizes the design over that distribution. The authors propose a way to elicit prior information from managers and show in Monte Carlo studies that the procedure provides more efficient designs than the current procedures. The authors provide an empirical application, in which they elicit prior information on the parameter values and the associated uncertainty from managers. Here, the Bayesian design provides 30%–50% lower standard errors of the estimates and an expected predictive validity that is approximately 20% higher.

Managing Customer-Initiated Contacts with Manufacturers: The Impact on Share of Category Requirements and Word-of-Mouth Behavior

Abstract: The authors examine behavioral outcomes following a customer-initiated contact (CIC) with a manufacturer and develop a framework to explain the impact of vendor performance during a CIC on a customer’s share of category requirements with a focal brand and word-of-mouth incidence following contact. The authors propose customer characteristics and context–specific factors that may relate to differences in the key characteristics of the underlying source model of share of category requirements and word of mouth. The authors then assess the overall importance of the explanatory variables in the source model and simultaneously test for systematic differences related to CIC-specific factors using survey data from more than 1700 CICs that involve more than 60 brands. A key assumption in much prior research that has examined customer-firm interactions is that CIC-specific factors, if they are included at all, create an automatic regularity that must be controlled for. The authors propose and find an addi...

Threats to the External Validity of Brand Extension Research

Abstract: The findings of prior research suggest that a brand’s extendibility is constrained by the degree of perceived fit between the brand and extension product categories. However, there are many examples of brands that have been extended successfully into “perceptually distant” domains. Drawing on theories of consumer information processing and product adoption, the authors identify three background traits of prior work that may help explain the discrepancy between prior research and marketplace observation: (1) limited extension information, (2) failure to account for consumers’ new product adoption tendencies (i.e., earlier versus later), and (3) single exposure to proposed extensions. In this study, the authors find that the effects of fit disappear when attribute information is added to extension stimuli and are applicable only for later product adopters. The authors also find that perceived fit increases with greater exposure to an extension. Beyond implications for brand extension research, this...

“Pie Sharing” in Complex Collaboration Contexts

Abstract: Recently, there has been a growing interest in the development of collaborative relationships between organizations. Much attention has been given to how organizations “expand the pie” of benefits between them; however, there is little that addresses the ensuing issue: how organizations divide the expanded pie. The author examines the relational impact of pie sharing in complex collaboration contexts marked by uncertainty in resources and output, information asymmetries, intangible aspects, and noncomparable factors and processes. The author develops a conceptual framework that examines how the use of equity and equality sharing principles in conjunction with various resource and organizational conditions can be used to affect relational outcomes systematically. Survey results of 300 research and development managers, scientists, and engineers indicate that sharing principles can have a positive or negative effect on the relationship depending on the type of sharing principle used and the charact...

Do we really know how consumers evaluate brand extensions? Empirical generalizations based on secondary analysis of eight studies

Abstract: The authors investigate the empirical generalizability of Aaker and Keller’s model of how consumers evaluate brand extensions. Various replications have reported different results. Using a comprehensive data set containing the data from the original study and seven replications conducted around the world, the authors undertake a secondary analysis to understand what generalizations emerge. The study has implications for the understanding of how brand extensions are evaluated and how empirical generalizations are made. For brand extensions, Aaker and Keller’s model hypothesizes that evaluations of brand extensions are based on the quality of the original brand, the fit between the parent and extension categories, and the interaction of the two. The authors find support for this full model despite published results, including Aaker and Keller’s own, that support only some of the hypotheses. The authors find evidence that the level of contribution of each of these components varies by brand and culture. With respect to empirical generalizations, the key implication is that it is premature to make firm conclusions about theory on the basis of only one study.

Remote Purchase Environments: The Influence of Return Policy Leniency on Two-Stage Decision Processes:

Abstract: The growth of catalog sales and the enormous potential of e-commerce elevates the importance of understanding remote purchase. Remote purchase environments differ from traditional bricks-and-mortar purchases in that the purchase decision is more likely to be framed as two separate decisions: consumers’ decisions to order and, upon receipt, their decisions to keep or return the item. These two decisions are separated by a period of time, and crucial experiential information often is available only at the second decision point (i.e., after receipt). Consumers’ initial lack of experiential information makes product choice more risky. Return policy leniency is one way to minimize the inherent consumer risk, but retailers may avoid instituting overtly lenient policies because they expect increased return rates. However, the endowment effect suggests some surprising benefits of return policy leniency to the retailer. Results from three experiments provide support for the idea that product ownership dep...

What We See Makes Us Who We Are: Priming Ethnic Self-Awareness and Advertising Response

Abstract: The authors propose that “ethnic self-awareness”—a temporary state during which a person is more sensitive to information related to his or her own ethnicity—moderates consumer response to targeted advertising. Ethnic self-awareness occurs when a person engages in a process of self-categorization and uses ethnic criteria as the basis for this categorization. The authors hypothesize that “ethnic primes”—visual or verbal cues that draw attention to ethnicity—direct self-categorization and increase ethnic self-awareness. To test these hypotheses, the authors conduct two experiments. Using 109 Asian and Caucasian participants, Experiment 1 assessed the impact of exposure to an Asian ethnic prime on ethnic self-awareness and on response to targeted television advertising. Exposure to an ethnic prime increased the rate at which participants spontaneously mentioned their ethnicity in self-descriptions (a measure of ethnic self-awareness) and caused participants to respond more favorably to same-ethnicit...

The Value Relevance of Brand Attitude in High-Technology Markets:

Abstract: The authors assess the extent to which brand attitude, a key component of brand equity, has value relevance—that is, helps predict future earnings and thus firm value—in high-technology markets. Using data for firms in the computer industries, the authors find that changes in brand attitude are associated contemporaneously with stock return and lead accounting financial performance. The study also provides insights into the drivers of brand attitude. The authors find that both product attributes and peripheral cues shape brand attitudes in high-technology markets.

The Moderating Role of Commitment on the Spillover Effect of Marketing Communications

Abstract: Spillover refers to the extent to which a message influences beliefs related to attributes that are not contained in the message. The authors find that when consumers are not familiar with a brand, negative information spills over to attributes that are associated with the target attribute but not mentioned in the message. However, positive information does not. When consumers like the brand, a spillover occurs for the positive information as well. When consumers are committed to the brand, the spillover of negative information is minimized, but positive information spills over more freely to other associated but unmentioned attributes.

A Methodology for Linking Customer Acquisition to Customer Retention

Abstract: Customer acquisition and retention are not independent processes. However, because of data limitations, customer management decisions are frequently based only on an analysis of acquired customers. This analysis shows that these decisions can be biased and misleading. The author presents a modeling approach that estimates the length of a customer’s lifetime and adjusts for this bias. Using the model, the author shows the financial impact of not accounting for the effect of acquisition on customer retention.

Social factors influencing export initiation in small and medium-sized enterprises

Abstract: The authors examine the influence of antecedent social ties on export behavior in an exploratory cross-case investigation of a sample of small and medium-sized exporters drawn from different industries. Data pertaining to 31 export market entries support the view that decision makers’ cosmopolitanism has a significant influence on the initiation of exports.

Social Dimensions of Consumer Distinctiveness: The Influence of Social Status on Group Identity and Advertising Persuasion

Abstract: Consumer research using distinctiveness theory implies that targeted advertisements are most effective in contexts in which the targeted group is a numeric minority. The authors investigate the influence of group social status in addition to numeric status in a study of South African consumers. Results demonstrate that when social dimensions are incorporated, targeted advertisements can be effective even in contexts in which the targeted group is a numeric majority. Results also illustrate how consumer distinctiveness may exist at multiple levels of analysis. The authors discuss the implications of the results for understanding the influence of social context on consumer distinctiveness and responses to targeted marketing efforts.

Transaction Decoupling: How Price Bundling Affects the Decision to Consume

Abstract: In today’s marketplace, price bundling is widespread: Manufacturers and retailers routinely offer multiple products for a single, bundled price. Although the effects of price bundling on purchase behavior have been well researched, the effects of price bundling on postpurchase consumption behavior have received almost no attention. In this article, the authors build on the sunk cost literature (e.g., Thaler 1980, 1985) and predict that price bundling leads to a disassociation or “decoupling” of transaction costs and benefits, thereby reducing attention to sunk costs and decreasing a consumer’s likelihood of consuming a paid-for service (e.g., a theater performance). Four studies show this to be the case. In two lab studies, the authors show that having a bundled four-day ski pass as opposed to four one-day ski tickets decreases a person’s likelihood of skiing on the final day of a four-day ski vacation. They replicate this result in a field study, showing that multiperformance ticket holders are ...

What to Say When: Advertising Appeals in Evolving Markets

Abstract: The authors study how ad cues affect consumer behavior in new versus well-established markets. The authors use theoretical insights from consumer information processing to argue that the same ad cues can have different effects on consumer behavior, depending on whether the market is new or old. The authors then test these hypotheses in the context of a toll-free referral service, using a highly disaggregate econometric model of advertising response. The results indicate that argument-based appeals, expert sources, and negatively framed messages are particularly effective in new markets. Emotion-based appeals and positively framed messages are more effective in older markets than in new markets.

Marketing-mix variables and the diffusion of successive generations of a technological innovation

Abstract: Research addressing the diffusion of successive generations of technological innovations has generally ignored the impact of marketing-mix variables. As a result, there have been several calls for the development of multiple-generation models that incorporate marketing-mix variables. The authors develop a model of first-time sales and subscriptions for successive generations of a technological innovation, which explicitly captures the effects of marketing-mix variables through a proportional hazards framework. The empirical analysis estimates the impact of price for two generations of cellular telephones in a European country. The results suggest that there are important substantive insights to be gained from the parameter estimates for this marketing-mix variable when intergenerational interdependencies are considered. For example, although the time path of the estimated price elasticities in a multiple-generation setting closely follows those reported previously for single generations, the auth...

The Differential Impact of Goal Congruency on Attitudes, Intentions, and the Transfer of Brand Equity

Abstract: Various theories suggest that the perceived similarity of objects facilitates the transfer of knowledge, affect, and intentions from one object to the other. However, there is disagreement as to the meaning of similarity and how it should be operationalized among these various theories, and no effort to relate these various measures to one another exists in the literature. In an empirical study, the authors examine the relationships among measures of product similarity in three different contexts: (1) goal-congruent products, (2) moderately goal-incongruent products, and (3) extremely goal-incongruent products. The results of exploratory factor analyses revealed that perceived similarity is a multidimensional construct and that the number and structure of these dimensions of similarity are different when products differ in their degrees of goal congruency. Structural equation analyses of the measures based on a second sample confirmed the structure obtained in the earlier exploratory analyses and...

Understanding What’s in a Brand Rating: A Model for Assessing Brand and Attribute Effects and Their Relationship to Brand Equity

Abstract: Although brand ratings capture the favorability of brand associations, they often do not enable marketing managers to disentangle brand-specific associations from other effects. In this article, the authors present a decompositional model for analyzing brand ratings that addresses this nagging problem and provide insights for understanding the sources of brand equity. Starting with consumers’ perceived level of a brand on an attribute, the authors decompose the rating into two components: brand-specific associations and general brand impressions. Brand-specific associations refer to features, attributes, or benefits that consumers link to a brand and that differentiate it from the competition. General brand impressions refer to general impressions about the brand that are based on a more holistic view of the brand. In this article, the authors focus on two principal issues: (1) How can the sources of bias that may be present in brand ratings be disentangled? and (2) Do these putatively biasing ef...

Choice Menus for Mass Customization: An Experimental Approach for Analyzing Customer Demand with an Application to a Web-Based Information Service:

Abstract: Customers are now active collaborators in creating value. Companies are increasingly engaging in mass customization and offering consumers a “choiceboard” (or a menu of choices) of various features and options for configuring their own products and services. The authors discuss the use of experimental choice menus for assessing customers’ preferences and price sensitivities for the variety of features and options that might be offered by a firm in its choiceboard. The proposed approach directly analyzes customers’ portfolio of choices from each of several experimental menus by estimating the utility for each menu item as a function of its characteristics, its price, and other specific attributes such as multifeature discounts. The authors accommodate customer heterogeneity in the utilities, allow for correlation of the utilities across items, and incorporate constraints in menu choices. Various technical issues and methodological contributions are discussed. The authors illustrate the approach in...

Strategic Management of Expectations: The Role of Disconfirmation Sensitivity and Perfectionism

Abstract: The authors suggest that people strategically manage—specifically, lower—their expectations to increase future satisfaction. Consumers who are more disconfirmation sensitive, that is, those who are more satisfied (dissatisfied) when a product performs better (worse) than expected, are hypothesized to have lower expectations. In contrast, the authors expect that consumers who are perfectionists will have higher expectations than those who are not. Results from a laboratory experiment and a field study are consistent with the hypotheses. Furthermore, the authors identify a possible third type of expectation (“as-if”) that serves as a basis for postpurchase evaluation and provide preliminary evidence that it differs from both will and should expectations.

Truth or Consequences: An Analysis of Vaporware and New Product Announcements

Abstract: The software industry practice of announcing new products well in advance of actual market availability has led to allegations that firms are intentionally engaging in vaporware. The possible predatory and anticompetitive implications of this behavior recently surfaced in the antitrust case United States v. Microsoft Corporation. Taking the perspective that a new product announcement is a strategic signal among firms, the authors consider the possibility that intentional vaporware is a way to dissuade competitors from developing similar new products. An examination of empirical data for the software industry suggests that some firms use vaporware in a strategic manner. The authors then formulate and analyze the preannouncement and introduction timing decisions in a game-theoretic model of two competing firms. They find that vaporware can be a way for a dominant firm to signal its product development costs and that intentional vaporware can deter entry. The authors also show that there is a curvil...

Semiparametric Analysis to Estimate the Deal Effect Curve

Abstract: The marketing literature suggests several phenomena that may contribute to the nature of the relationship between sales and price discounts. These phenomena can produce complex nonlinearities and interactions in the deal effect curve that are best captured with a flexible approach. Because a fully nonparametric regression model suffers from the curse of dimensionality, the authors propose a semiparametric regression model. Store-level sales over time are modeled as a nonparametric function of own- and cross-item price discounts and a parametric function of other predictors. The authors compare the predictive validity of the semiparametric model with that of two parametric benchmark models and obtain superior performance. The results for three product categories indicate threshold and saturation effects for both ownand cross-item temporary price cuts. The authors also find that the nature of the own-item curve depends on other items’ price discounts. Comparisons with restricted model specification...