Showing papers in "Marketing Letters in 1991"
TL;DR: In this paper, it has been suggested that consumer attitudes have distinct hedonic and utilitarian components, and that product categories differ in the extent to which their overall attitudes are derived from these two components.
Abstract: It has been suggested theoretically that consumer attitudes have distinct hedonic and utilitarian components, and that product categories differ in the extent to which their overall attitudes are derived from these two components. This paper reports three studies that validate measurement scales for these constructs and, using them, show that these two attitude dimensions do seem to exist; are based on different types of product attributes; and are differentially salient across different consumer products and behaviors, in theoretically-consistent ways.
2,004 citations
TL;DR: In this paper, a stylized view of individual consumer choice decision-making is presented for the study of many marketing decisions, and the authors discuss whether consideration sets really exist and, if so, the factors that affect their composition, structure, and role in decision making.
Abstract: This paper affords a stylized view of individual consumer choice decision-making appropriate to the study of many marketing decisions. It summarizes issues relating to consideration set effects on consumer judgment and choice. It discusses whether consideration sets really exist and, if so, the factors that affect their composition, structure, and role in decision-making. It examines some new developments in the measurement and modeling of consideration set effects on decision-making. The paper concludes with suggestions for needed research.
543 citations
TL;DR: Experimental choice analysis continues to attract academic and applied attention as mentioned in this paper, and the design strategies consistent with probabilistic models of choice process and the parallels between choice experiments and real markets are considered.
Abstract: Experimental choice analysis continues to attract academic and applied attention. We review what is known about the design, conduct, analysis, and use of data from choice experiments, and indicate gaps in current knowledge that should be addressed in future research. Design strategies consistent with probabilistic models of choice process and the parallels between choice experiments and real markets are considered. Additionally, we address the issues of reliability and validity. Progress has been made in accounting for differences in reliability, but more research is needed to determine which experiments and response procedures will consistently produce more reliable data for various problems.
510 citations
TL;DR: In this paper, consumers' reactions to multi-product bundles were obtained by systematically varying the attributes of both the primary product and the tie-in product (e.g., VCRs) and respondents were given written product descriptions as well as the opportunity to inspect the actual products before responding.
Abstract: Consumers' reactions to multi-product bundles — two different products sold for one price — were obtained by systematically varying the attributes of both the primary product (e.g., VCRs) and the tie-in product (e.g., videocassette tapes). Respondents were given written product descriptions as well as the opportunity to inspect the actual products before responding. The results across a variety of dependent measures suggest that evaluations of the primary product and the tie-in product are averaged or balanced when evaluating product bundles. Furthermore, attributes of the tiein product had a much larger effect on the evaluations of product bundles than would be expected on the basis of their monetary worth alone. Other aspects of our results suggest that product bundling as a marketing strategy compares favorably with the use of cash rebates, especially when the bundle is enhanced by including a high-quality tie-in product.
237 citations
TL;DR: The authors empirically compared the traditional preference measures of ranking and rating in conjoint analysis with a direct monetary measure of product value, and found that reservation prices do very well in terms of fit, but they are inferior in predicting choice on a holdout sample.
Abstract: This paper empirically compares the traditional preference measures of ranking and rating in conjoint analysis with a direct monetary measure of product value — reservation prices. Experimental results are as expected. While reservation prices do very well in terms of fit, they are inferior in terms of predicting choice on a holdout sample. In addition, surprisingly little difference is found in the performance of ranks and ratings.
163 citations
TL;DR: In this paper, a maximum likelihood based methodology for simultaneously performing multidimensional unfolding and cluster analysis on two-way dominance or profile data was developed, which utilizes mixtures of multivariate conditional normal distributions to estimate a joint space of stimulus coordinates and K ideal points, one for each cluster or group.
Abstract: This paper develops a maximum likelihood based methodology for simultaneously performing multidimensional unfolding and cluster analysis on two-way dominance or profile data. This new procedure utilizes mixtures of multivariate conditional normal distributions to estimate a joint space of stimulus coordinates and K ideal points, one for each cluster or group, in a T-dimensional space. The conditional mixture, maximum likelihood methodology is introduced together with an E-M algorithm utilized for parameter estimation. A marketing strategy application is provided with an analysis of PIMS data for a set of firms drawn from the same competitive industry to determine strategic groups, while simultaneously depicting strategy-performance relationships.
65 citations
TL;DR: Internal market structure analysis seeks to recover the attributes and the buyer evaluations of those attributes, that govern brand choices as mentioned in this paper, which is the predominant paradigm in marketing for explaining buyer choice behavior.
Abstract: The predominant paradigm in marketing for explaining buyer choice behavior is that choices reflect buyer evaluations of the attributes possessed by alternatives. Internal market structure analysis seeks to recover the attributes, and the buyer evaluations of those attributes, that govern brand choices. This essay briefly reviews some of the most recent developments in internal market structure analysis and discusses prospects for further work.
54 citations
TL;DR: In this paper, the authors discuss the issues in estimating the effects of marketing variables with linear models and propose that covariance structure analysis with an appropriate measurement model can ensure the unbiasedness of estimated effects.
Abstract: This paper discusses the issues in estimating the effects of marketing variables with linear models. When the variables are not directly observable, it is well known that direct regression yields biased estimates. Several researchers have recently suggested reverse regression as an alternative procedure. However, it is shown that the reverse regression approach also fails to provide unbiased estimates in general, except for some special cases. It is proposed that covariance structure analysis with an appropriate measurement model can ensure the unbiasedness of estimated effects. These issues are examined in the context of assessing market pioneer advantages.
52 citations
TL;DR: In this paper, the authors examined how the price-cutting momentum (PCM) created by other competitors' reactions to an initiator's price cut influenced pricing decisions and found that PCM influences pricing reactions in both low-search and high-search markets.
Abstract: In light of the increasing interest in understanding the behavioral side of competitive decision making, this paper examines how the “price-cutting momentum” (PCM) created by other competiors' reactions to an initiator's price cut influences pricing decisions. We explore the PCM construct and present the results of a study examining the effect of PCM on the price recommendations of retail grocery pricing executives. We find that PCM influences pricing reactions inboth low-search and high-search markets. Competing explanations of the results are considered.
44 citations
TL;DR: In this article, an empirical investigation of the effect of product usage on consumer satisfaction in the context of consumer durables is presented. But the specific dimensions of usage disconfirmation which influence satisfaction vary by product.
Abstract: This paper reports on an empirical investigation of the effect of product usage on consumer satisfaction in the context of consumer durables. It conceptualizes three dimensions of usage-usage frequency, usage function and usage situation-and examines the impact of these usage dimensions on satisfaction. Results of a field survey using five consumer durables suggest that the usage dimensions influence satisfaction through corresponding dimensions of usage disconfirmation, independent of the effect of performance disconfirmation on satisfaction. The specific dimensions of usage disconfirmation which influence satisfaction vary by product.
44 citations
TL;DR: In this paper, an exploratory study in a major midwestern grocery market revealed that executives responsible for pricing decisions overestimate the size of the price-driven shopping segment, and the reasons behind this perception and its impact on pricing decisions were examined.
Abstract: Economic theory suggests that price competition is in part driven by actively searching buyers. An exploratory study in a major midwestern grocery market revealed that executives responsible for pricing decisions overestimate the size of the price-driven shopping segment. The reasons behind this perception and its impact on pricing decisions are examined.
TL;DR: For instance, the authors found that the negative impact of price promotions on perceptions of quality and subsequent intent to purchase at full price is eliminated among those who had tried the brand and that the moderation of the negative effect of promotions has not been previously shown to occur despite its prediction by a variety of behavioral theories.
Abstract: While price promotions are generally believed to have a positive impact on immediate sales, their effects on attitude towards repurchase, quality perceptions, and repurchase are far less clear. We present a study that tests the effect of brand experience in moderating the negative impact of promotions. The results of the laboratory study indicate that the negative impact of a discount on perceptions of quality and subsequent intent to purchase at full price is eliminated among those who had tried the brand. The moderation of the negative impact of promotions has not been previously shown to occur despite its prediction by a variety of behavioral theories.
TL;DR: In this paper, the authors present a framework for organizing and discussing factors influencing consumer choice dynamics, how these factors may be incorporated into models of buyer behavior and problems that may arise in estimating such models.
Abstract: This paper presents a framework for organizing and discussing factors influencing consumer choice dynamics, how these factors may be incorporated into models of buyer behavior and problems that may arise in estimating such models. The paper identifies research issues and delineates possible approaches.
TL;DR: The problem of determining the expected number of dominant-entry pairs is discussed and a heuristic for accomplishing this is described and applied to an illustrative set of main effects and main effects plus interactions designs.
Abstract: Full factorial designs have long been used in designing multiattribute stimuli (e.g., hypothetical job applicants) for use in policy capturing and functional measurement models. More recently, marketing researchers have employedfractional factorial designs in multiatribute preference models, such as those used in conjoint analysis.
TL;DR: A brief overview of recent developments in computation, estimation, and statistical testing of choice models, with marketing applications, is given in this article, which includes statistical models for discrete panel data with heterogeneous decision makers, simulation methods for estimation of high-dimension multinomial probit models, specification tests for model structure and for brand and purchase clustering, and innovations in numerical analysis for estimation and forecasting.
Abstract: This paper gives a brief overview of recent developments in computation, estimation, and statistical testing of choice models, with marketing applications. Topics include statistical models for discrete panel data with heterogeneous decision-makers, simulation methods for estimation of high-dimension multinomial probit models, specification tests for model structure and for brand and purchase clustering, and innovations in numerical analysis for estimation and forecasting.
TL;DR: In this paper, the authors examined the notion that consumers might infer their importance weights from their choices and the choice sets they evaluate, and found that consumers' assessments of their importance weight can be influenced by the choice set they previously evaluated.
Abstract: Building on the notion that consumers are often uncertain about their tastes or weights, this research examines the proposition that consumers might infer their importance weights from their choices and the choice sets they evaluate. It is also hypothesized that the degree to which choice affects self-assessed weights depends on the consumer's familiarity with the product category and the available product information. The results of an experiment demonstrated that consumers' assessments of their importance weights can be influenced by the choice set they previously evaluated. This effect, however, was not moderated by familiarity or provided product information.
TL;DR: In this article, the authors examined the effect of offering a service for free and at an exaggerated price on the perception of its quality and found that when the tested services are offered for free, they are perceived as lower in quality than when they are offered in a normal price range.
Abstract: Previous research in the price-quality area has largely limited its focus to the normal price range and has concentrated on physical goods almost entirely. This study examines the effect of offering a service for free and at an exaggerated price on the perception of its quality. Consistent with the theory developed in this paper, the experimental results suggest that when the tested services are offered for free and for exaggerated prices, they are perceived as lower in quality than when they are offered in a normal price range.
TL;DR: For example, this article found that more effective and less effective salespeople differ systematically in their knowledge of sales strategies, and to a lesser extent in customer characteristics, when compared to other salespeople.
Abstract: Results of both cross-sectional and longitudinal studies of salespeople indicate that more effective and less effective salespeople differ systematically in their knowledge of sales strategies, and to a lesser extent in their knowledge of customer characteristics. For the sales situation examined, more effective salespeople use specific, problem solving-oriented strategies to sell to customers and underlying, functional characteristics to describe customers; less effective salespeople use global, relationship-oriented strategies to sell to customers and surface structure, less functional characteristics to describe customers.
TL;DR: It is proposed that subjects who seek 1) impersonal/uncontrollable sources, 2) higher levels of information, 3) more detailed (versus summary) data, and 4) noncomparative data are more likely to make innovative choices.
Abstract: In this paper we examine how the information processing of subjects who make an innovative choice (“innovators”) differs from that of subjects who make a noninnovative choice (“noninnovators”). The task involves selection of an alternative within a range of prerated product category innovativeness. We propose that subjects who seek 1) impersonal/uncontrollable sources, 2) higher levels of information, 3) more detailed (versus summary) data, and 4) noncomparative (versus comparative) data are more likely to make innovative choices. The research method is a computerized process tracing experiment utilizing Search Monitor (Brucks 1988).
TL;DR: A review of the existing work on group choice models in marketing and consumer research can be found in this article, where the authors summarized some of the major issues related to group decision modeling.
Abstract: This paper summarizes some of the major issues related to group decision modeling. We briefly review the existing work on group choice models in marketing and consumer research. We draw some generalizations about which models work well when and use those generalizations to provide guidelines for future research. Groups pervade virtually every aspect of our lives. We belong to families, work cohorts, clubs, church groups, and professional organizations among others. We do many things in groups too. We make decisions; we travel; we play games; we work; we consume. In the early 1970s researchers in marketing and consumer decision making realized through studying families and organizational buying centers that the group was an important unit of analysis (Davis 1970, 1976; Webster and Wind 1972). It was not until almost a decade later that we, as a discipline, started to propose and test formal models of group decision making. This paper summarizes some major issues related to group decision modeling. The major questions addressed include “What have we done,” “What have we learned?” “ What do we need to do to learn more?” and “How do we go about learning?” In the past decade or so a fair amount of effort has been exerted in the proposal and empirical testing of group choice models. By and large, each model worked quite well in the setting in which it was tested. However, it seems that no single class of models is appropriate for all problems. “What we have done” then is propose and test a wide variety of group choice models. “What we have learned” is that each mode1 seems to work well in the setting for which it was
TL;DR: In this paper, the authors explored the effects of market structure characteristics and exogenous market interventions on competitive reaction intensity over time and found that moderate growth rate and moderate concentration induce greater competitive reactions.
Abstract: This study explores the effects of market structure characteristics and exogenous market interventions on competitive reaction intensity over time. It is found that moderate growth rate and moderate concentration induce greater competitive reactions. The effect of the exogenous intervention in the industry studied appears to have a dampening impact on competitive responses. Our research inquiry addresses some issues raised on competition, in general, by Weitz (1985) and specifically on competitive responses by Robinson (1988) and Gatignon, Anderson, and Helsen (1989).
TL;DR: This paper showed that recall inhibition can be induced by cueing consumers with an unfamiliar brand name, but that such inhibition is less pervasive than evoked by a highly familiar brand name. But recall inhibition does not extend to the preferred brand.
Abstract: Alba and Chattopadhyay (1985, 1986) have demonstrated that having consumers think about a familiar brand can interfere with the retrieval of competitive brand names, including those that might otherwise be considered for purchase. However, their research is silent about two issues of pragmatic importance. First, is it possible to inhibit retrieval of the consumer's preferred brand? Second, can an unfamiliar brand evoke recall inhibition? Our findings indicate that recall inhibition does not extend to the preferred brand. Our findings further suggest that recall inhibition can be induced by cueing consumers with an unfamiliar brand name, but that such inhibition is less pervasive than evoked by a highly familiar brand name.
TL;DR: In this article, the authors examine the timing of consumers' purchases for coffee and find that consumers vary a great deal in terms of the regularity of their purchasing behavior, while some consumers make purchases at seemingly random time intervals, while others purchase at highly regular intervals.
Abstract: An examination of the timing of consumers' purchases for coffee reveals that consumers vary a great deal in terms of the regularity of their purchasing behavior. Some consumers make purchases at seemingly random time intervals, while others purchase at highly regular intervals. The measurement of regularity in purchase timing, as well as the identification of its covariates, is important in many contexts such as modeling purchase incidence and sales forecasting. We measure the degree of regularity among a sample of coffee purchasers and identify several consumer characteristics that vary with the degree of regularity in purchase timing. Results show that regularity in purchase timing is related to brand loyalty, store loyalty and deal proneness, as well as to certain pattern of routinization by the households, and that regularity may be used, along with other aspects of purchase behavior, to provide a basis for market segmentation.
TL;DR: A new stochastic clustering methodology devised for the analysis of categorized or sorted data reveals consumers' common category knowledge as well as individual differences in using this knowledge for classifying brands in a designated product class.
Abstract: This paper introduces a new stochastic clustering methodology devised for the analysis of categorized or sorted data. The methodology reveals consumers' common category knowledge as well as individual differences in using this knowledge for classifying brands in a designated product class. A small study involving the categorization of 28 brands of U.S. automobiles is presented where the results of the proposed methodology are compared with those obtained from KMEANS clustering. Finally, directions for future research are discussed.
TL;DR: The authors examined the effect of type of ad claim (factual versus evaluative) and knowledge level on subjects' product feature inference making from three camera ads and found that as knowledge increased, so did inference making.
Abstract: A lab study examined the effect of type of ad claim (factual versus evaluative) and knowledge level on subjects' product feature inference making from three camera ads. Each ad had some missing brand information. The results showed that as knowledge increased, so did inference making. Also, there was a significant interaction between ad claim and knowledge. Inference making was positively correlated with knowledge level for factual ads but not for evaluative ones. Finally, subjects made very few inferences to fill in missing ad features but instead did more interpretive processing.
TL;DR: This paper examined the implications of causal judgments about product failure and manufacturer responsibility and found that consumers' attributions for product failure may vary with the "causal background" or reference case against which the occurrence is considered.
Abstract: Recent research in psychology suggests that people's causal attributions for an occurrence may not reflect the entirety of their beliefs about how the event transpired but rather which subset of this information has “explanatory relevance” given the context of the causal question. The present research examines the implications of this proposition for causal judgments about product failure and manufacturer responsibility. An experiment is presented which shows that consumers' attributions for product failure — to manufacturer-related vs. consumer-related factors — may vary with the “causal background” or reference case against which the occurrence is considered. These findings are discussed in light of previous research in marketing which suggests responsibility judgments should be related to the locus of consumers' attributions.
TL;DR: This article examined the mediating role of affective cues in persuasion and found that humor had a significant mediating effect on attitudes toward the advertisement (Aad), while product-relevant information was found to influence attitudes towards the advertised product (Ab).
Abstract: This experiment examined the mediating role of affective cues in persuasion. College students were exposed to advertisements that contained or did not contain affective cues in the form of humor, and that contained or did not contain information about the advertised product. As intended the affective cues were found to influence attitudes toward the advertisement (Aad), while the productrelevant information was found to influence attitudes toward the advertised product (Ab). By manipulating Aad and Ab independently, it was possible to test for the causal mediation of one attitude on the other. The results showed that Ab had a significant mediating (p<.05) effect on Aad, but that Aad did not significantly mediate Ab.
TL;DR: In this article, an autocorrelation test is proposed to assess whether or not available sales series arise from a Koyck-type distributed lag scheme, which is based on the peculiar nature of the autocovariances of sales series under the koyck assumption.
Abstract: The Koyck scheme has been a popular assumption in the dynamic modeling of sales response to advertising. This paper proposes an autocorrelation test to assess whether or not available sales series arise from a Koyck-type distributed lag scheme. The test is based on the peculiar nature of the autocovariances of sales series under the Koyck assumption. Since the peculiar property is insensitive to the level of aggregation of the sales series and exists even when the bivariate sales-advertising relationship is embedded in a more general model containing other sales predictors, the testing procedure is readily applicable to any finite sales series.
TL;DR: In this article, a model of how institutional investors evaluate and allocate business to brokers shows a complex pattern of influences that combine with research and sales force performance to build a relationship that affects over-time allocation of business.
Abstract: A model of how institutional investors evaluate and allocate business to brokers shows a complex pattern of influences. The broker's ability to execute transactions at appropriate prices is basic, but this combines with research and sales force performance to build a relationship that affects over-time allocation of business. It is difficult to separate relationship and selling performance, and relationship is subject to considerable decay. Research ability has a weak effect on business allocated on the basis of trading, while trading ability does affect business allocated on the basis of research.
TL;DR: In this article, a survey was conducted of professionals from major architectural, law, and accounting firms to determine what factors seem to explain how much effort they devote to marketing their firms' services.
Abstract: A mail survey was done of professionals from major architectural, law, and accounting firms to determine what factors seem to explain how much effort they devote to marketing their firms' services. The results of this exploratory study identified several significant explanatory variables, a few of which had effects in some professions and not others. Additional research in this area is recommended.