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Showing papers in "The Journal of Marketing Theory and Practice in 2011"


Journal ArticleDOI
TL;DR: The authors conclude that PLS-SEM path modeling, if appropriately applied, is indeed a "silver bullet" for estimating causal models in many theoretical models and empirical data situations.
Abstract: Structural equation modeling (SEM) has become a quasi-standard in marketing and management research when it comes to analyzing the cause-effect relations between latent constructs. For most researchers, SEM is equivalent to carrying out covariance-based SEM (CB-SEM). While marketing researchers have a basic understanding of CB-SEM, most of them are only barely familiar with the other useful approach to SEM-partial least squares SEM (PLS-SEM). The current paper reviews PLS-SEM and its algorithm, and provides an overview of when it can be most appropriately applied, indicating its potential and limitations for future research. The authors conclude that PLS-SEM path modeling, if appropriately applied, is indeed a "silver bullet" for estimating causal models in many theoretical models and empirical data situations.

11,624 citations


Journal ArticleDOI
TL;DR: In this paper, the authors investigated the factors that drive customer satisfaction and loyalty in e-markets and found that the positive effect of satisfaction on loyalty is moderated by customer trust and inertia.
Abstract: This research investigates the factors that drive customer satisfaction and loyalty in e-markets. Employing qualitative interviews and field research, we identify key factors that drive customer satisfaction in e-businesses and use the partial least squares path modeling technique to evaluate their effect. Six factors are found to significantly affect satisfaction in e-businesses: adaptation, commitment, network, assortment, transaction ease, and engagement. Further, we discover that the positive effect of satisfaction on loyalty is moderated by customer trust and inertia. At lower levels of inertia and trust, customer satisfaction has a greater effect on loyalty. Actionable recommendations are provided for e-business managers to enhance customer satisfaction.

163 citations


Journal ArticleDOI
TL;DR: In this paper, the authors analyze the drivers and outcomes of brand heritage, focusing on the functions of the brand as perceived by consumers, using a partial least squares-based path modeling approach.
Abstract: Heritage brands stand for longevity and sustainability, as proof that the core values and performance of the given products are reliable. Focusing on the automotive industry, the aim of the present study is to analyze the drivers and outcomes of brand heritage, focusing on the functions of the brand as perceived by consumers. To explore the perceived values and outcomes of heritage brands, we present the methodology and the results of our empirical study using a partial least squares-based path modeling approach. Our results show the significant effects of brand heritage on consumers' attitudes and behaviors related to the given brand.

157 citations


Journal ArticleDOI
TL;DR: In this article, the purpose of the study was to measure consumer identification with several (brand) communities using a multidimensional psychometric community identity instrument grounded in social identity, which was used to measure consumers' identification with brands.
Abstract: The purpose of this study was to measure consumer identification with several (brand) communities using a multidimensional psychometric community identity instrument grounded in social identity the...

148 citations


Journal ArticleDOI
TL;DR: In this article, the authors investigated the customer satisfaction of airline passengers and introduced perceived safety as a satisfaction driver, which has not yet been considered in the literature and found that perceived safety is one of the key drivers that can explain the degree of overall customer satisfaction.
Abstract: This study investigates the customer satisfaction of airline passengers and introduces perceived safety as a satisfaction driver, which has not yet been considered in the literature. Applying structural equation modeling to data collected from a sample of airline passengers reveals that perceived safety is one of the key drivers that can explain the degree of overall customer satisfaction. This relationship is, however, strongly moderated by the purposes for which airline passengers travel (i.e., either for business or pleasure). Perceived safety has a significantly greater impact on the overall customer satisfaction of people who travel for pleasure than on that of business travelers, which implies that airlines should more strongly emphasize safety features in advertising aimed at leisure travelers.

134 citations


Journal ArticleDOI
TL;DR: In this article, Mowen's 3M model was used to examine the trait predictors of online buying tendency and found that buying impulsiveness (surface trait) is positively affected by Internet addiction (situational trait), need for arousal (elemental trait), and need for material resources, and negatively affected by task orientation (compound trait).
Abstract: The Internet represents a new marketing channel that can stimulate buying impulsiveness. With Mowen's 3M model as a theoretical framework, this paper examines the trait predictors of this online buying tendency. Buying impulsiveness (surface trait) is positively affected by Internet addiction (situational trait), need for arousal (elemental trait), and need for material resources (elemental trait). It is negatively affected by task orientation (compound trait). Emotional instability (elemental trait) has a positive effect on Internet addiction. Conscientiousness (elemental trait) has a positive effect on task orientation. Theoretical and practical implications are provided.

117 citations


Journal ArticleDOI
TL;DR: In this paper, a multidimensional scale is proposed to measure consumer animosity based on the distinction of three universal drivers that mediate the influence of specific causes on general animosity: perceived threat, antithetical political attitudes, and negative personal experiences.
Abstract: The paper suggests a measurement of consumer animosity that is applicable to respondents from different home countries and to different target countries of animosity. The multidimensional scale is based on the distinction of three universal drivers that mediate the influence of specific causes on general animosity: perceived threat, antithetical political attitudes, and negative personal experiences. By means of partial least squares, two studies validate the scale demonstrating (1) cross-national stability, (2) criterion validity (animosity influences product-specific country-of-origin images, boycotting, and purchase intention), and (3) construct validity (animosity is embedded in a nomological network of ethnocentrism, patriotism, and cosmopolitanism).

87 citations


Journal ArticleDOI
TL;DR: In this article, the authors evaluate the types of employee behaviors in a service encounter that lead to customer delight, assessing consumers' expectations prior to their delightful encounter, and ascertaining the differences between satisfactory and delightful encounters at the customer level.
Abstract: Recent empirical research has shown the benefits for the service firm of providing customer delight. With this link established, it is now important to garner a greater understanding of the drivers of customer delight from the customer's perspective. In response, this research addresses three focal issues: (1) evaluating the types of employee behaviors in a service encounter that lead to delight, (2) assessing consumers' expectations prior to their delightful encounter, and (3) ascertaining the differences between satisfactory and delightful encounters at the customer level. The findings indicate that employee affect and employee effort are the strongest factors in producing delight. These factors were both ranked higher than employee skills with regard to delight. Importantly, it seems that the power of these factors has not been fully revealed in previous research. Further, this research provides support for the usefulness of both the disconfirmation paradigm and the less-utilized needs-based model for ...

86 citations


Journal ArticleDOI
TL;DR: In this article, the authors investigated variables particularly salient to college students' misuse of credit cards and compulsive buying behavior that have not been previously examined together, including self-esteem, power-prestige, and risk-taking.
Abstract: This study investigates variables particularly salient to college students' misuse of credit cards and compulsive buying behavior that have not been previously examined together—self-esteem, power-prestige, and risk-taking. In addition, the study proposes that credit card misuse mediates the relationship between these variables and compulsive buying behavior. Using structural equation modeling, the fit of the overall structural model is very good, and significant direct and indirect effects for power-prestige, but not for self-esteem and risk-taking, are found. Managerial implications related to these findings are identified.

78 citations


Journal ArticleDOI
TL;DR: In this article, the authors analyze relations between managers' perceptions, orientations, behaviors, and attitudes toward exporting, and build an integrated model to analyze the relationship between perceptions and orientations of managers.
Abstract: The current work has two main objectives. First, after building an integrated model, we analyze relations between managers' perceptions, orientations, behaviors, and attitudes toward exporting. Sec...

64 citations


Journal ArticleDOI
TL;DR: In this article, the mediating role of trust as a governance mechanism in the fairness-loyalty relationship under different types of interdependence structure between suppliers (wholesalers) and buyers (retailers) was studied.
Abstract: Relationship marketing plays a significant role in supply chain practice and academic studies. Using the resource advantage theory within the relationship marketing framework, we studied the mediating role of trust as a governance mechanism in the fairness-loyalty relationship under different types of interdependence structure between suppliers (wholesalers) and buyers (retailers). Our findings, based on data from retail pharmacies, demonstrate that only under conditions of symmetric independence, trust, as a governance mechanism, completely mediate the relationship between fairness and loyalty. Under conditions of both perceived independence (i.e., lack of interdependence) and asymmetric buyer dependence, however, trust does not mediate but fairness directly influences loyalty. Thus, fairness and trust influence loyalty, strengthening relationships in different ways under different conditions of interdependence. The implications for research and practice are discussed.

Journal ArticleDOI
TL;DR: In this paper, the authors investigated the relationship between sales behaviors and buyer assessment of salesperson attributes and loyalty and found that consultative task and personal relationship behaviors play a vital role in influencing buyer perceptions of expertise, trust, and relationship loyalty.
Abstract: Creating long-lasting business partnerships between buyers and sellers continues to be a major concern of marketing managers and scholars. The effect of salesperson personal relationship and consultative task behaviors on buyer perceptions, however, has not been thoroughly explored. In response, this study investigates the connection between sales behaviors and buyer assessment of salesperson attributes and loyalty. The results support the contention that consultative task and personal relationship behaviors play a vital role in influencing buyer perceptions of expertise, trust, and relationship loyalty.

Journal ArticleDOI
TL;DR: In this article, a qualitative study in the pharmaceutical industry suggests that sales technology can support both externally focused tasks toward managing customer relationships and internal administrative tasks, and that sales managers should not impose technology usage.
Abstract: Drawing on a qualitative study in the pharmaceutical industry, this research suggests that sales technology can support both externally focused tasks toward managing customer relationships and internal administrative tasks. Partial least squares path modeling reveals that sales technology has a direct effect on salesperson performance when used as a customer relationship tool and a perfectly mediated effect when used for internal coordination. While the customer relationship dimension is driven by factors that trigger voluntary usage, the internal coordination dimension is explained by factors imposed from outside. Consequently, sales technology should be designed to enable customer relationships rather than being perceived as a cost-cutting tool. In addition, sales managers should not impose technology usage. Rather, they should support self-initiating factors that stimulate technology usage for improving customer relationships.

Journal ArticleDOI
TL;DR: In this paper, the authors explored the implications of an organization moving toward service-dominant logic (S-D logic) on the sales function and found that sales personnel are quick to appreciate the advantages of S-D for customer satisfaction and six specific skills were highlighted and explored.
Abstract: This study explores the implications of an organization moving toward service-dominant logic (S-D logic) on the sales function. Driven by its customers' needs, a service orientation by its nature requires personal interaction and sales personnel are in an ideal position to develop offerings with the customer. However, the development of S-D logic may require sales staff to develop additional skills. Employing a single case study, the study identified that sales personnel are quick to appreciate the advantages of S-D logic for customer satisfaction and six specific skills were highlighted and explored. Further, three propositions were identified: in an organization adopting S-D logic, the sales process needs to elicit needs at both embedded-value and value-in-use levels. In addition, the sales process needs to coproduce not just goods and service attributes but also attributes of the customer's usage processes. Further, the sales process needs to coproduce not just goods and service attributes but also att...

Journal ArticleDOI
TL;DR: In this paper, the authors investigate consumer perceptions of innovation characteristics in two different cultures for technology-based consumer durables representing early and late stages of diffusion, and find that significant cultural effects exist between consumers from an individualism-centered and a Confucian/collectivism-centered country.
Abstract: The intense competition for consumer spending and the significant costs, risks, and potential rewards associated with multinational product introductions make it imperative that every aspect of consumer reaction to new products be explored. This study investigates consumer perceptions of innovation characteristics in two different cultures for technology-based consumer durables representing early and late stages of diffusion. Based on survey data from young adults in the United States and South Korea, we find that significant cultural effects exist between consumers from an individualism-centered and a Confucian/collectivism-centered country.

Journal ArticleDOI
TL;DR: In this paper, the authors explored the relationship between consumer loyalty and price sensitivity and found that there are at least two consumer groups within each segment, and each group exhibits a different level of price sensitivity.
Abstract: This paper explores the conventional wisdom about the relationship between consumer loyalty and price sensitivity: that loyal consumers are price insensitive while nonloyals are sensitive to price changes when making brand choice decisions. However, consumers within each segment may have different motivations for making purchases and, therefore, may respond differently to price changes. This paper accounts for this type of consumer heterogeneity by investigating the moderating role of consumers' deal-proneness on the relationship between loyalty and price sensitivity. The findings show that there are at least two consumer groups within each segment, and each group exhibits a different level of price sensitivity. In addition, this paper shows that the optimal cutoff is product-category specific, and neither the 99.9 percent nor the 50 percent cutoff, as used in past research, is optimal. Important managerial implications are discussed.

Journal ArticleDOI
TL;DR: This article applied partial least squares (PLS) structural equation modeling (SEM) to data stemming from a survey among approximately 2,000 individuals regarding their intention to adopt a customized newspaper.
Abstract: The technology acceptance model (TAM) is arguably one of the most widely used models for studying user adoption in the information systems discipline and has started to be used increasingly within the marketing area. While two of its three main hypotheses have received consistent empirical support, the same is not true for the remaining relationship (i.e., the influence of perceived ease of use on the behavioral intention to adopt a system; PEOU-BI). Previously, this empirical contradiction has been explained by introducing the concept of task motivation borrowed from Davis, Bagozzi, and Warshaw (1992). Our paper provides a different explanation. We show that for the same task (and, hence, the same task motivation), the significance can also depend on observed population heterogeneity. We do this by applying partial least squares (PLS) structural equation modeling (SEM) to data stemming from a survey among approximately 2,000 individuals regarding their intention to adopt a customized newspaper. Our findi...

Journal ArticleDOI
TL;DR: In this paper, researchers endure the cost, inconvenience, and imprecision of consumer field research when they could use a lab study instead, because laboratory contexts are less expensive, offer more control, and are more controllable.
Abstract: Why would researchers endure the cost, inconvenience, and imprecision of consumer field research when they could use a lab study instead? Laboratory contexts are less expensive, offer more control,...

Journal ArticleDOI
TL;DR: In this article, the authors focused on the comprehensive identification of trust-enhancing, and therefore success-enhance, Web site signals, and compared their efficiency regarding the building of a trust-based intention to transact, identifying the managerial tactics with which to convert Web site visitors into buyers.
Abstract: Great potential remains unused in e-tailing because of consumers' general lack of trust in e-tailers. This study is focused on the comprehensive identification of trust-enhancing, and therefore success-enhancing, Web site signals. The main research goal is a comparison of their efficiency regarding the building of a trust-based intention to transact—identifying the managerial tactics with which to convert Web site visitors into buyers. By adopting a signal typology and analyzing a structural equation model with partial least squares, followed by an importance-performance analysis, particular signals, which already require investments at an early point in the business activity, are revealed to have a potential to establish a competitive advantage in e-tailing.

Journal ArticleDOI
TL;DR: In this article, the authors propose a model that extends current knowledge of firm interaction within new product alliances while identifying factors that influence the success of such relationships, such as market orientation and external environmental factors.
Abstract: In this paper, the authors propose a model that extends current knowledge of firm interaction within new product alliances while identifying factors that influence the success of such relationships. Much work focused on market orientation in the 1990s, but recent research in marketing management and strategy shifted to other topics, thus, important issues have been neglected by the research community. Theoretical foundations drawn from social exchange theory and the dynamic capabilities view offer a framework for examining the influence of organizational factors, joint alliance factors, and relational factors on interfirm relationships under various external and internal environmental contexts relevant to current and emerging environmental conditions. Alliance market orientation is introduced as a key variable that moderates the relationship between the alliance factors and new product alliance performance, external environmental factors moderate the relationships between organizational factors and joint ...

Journal ArticleDOI
TL;DR: This study introduces the distinction between tensile and specific claims in the WOM context and shows that tensile WOM is less effective than specific WOM.
Abstract: Just as price promotions can be specific ($10 off) or tensile (up to 20 percent off), information exchanged in word-of-mouth (WOM) communication can also be specific or tensile. This study introduces the distinction between tensile and specific claims in the WOM context and shows that tensile WOM is less effective than specific WOM. Information specificity also plays a moderating role: source expertise and tie strength between the receiver and the sender of WOM communication matter only when the information exchanged is tensile. If the information exchanged is specific, the effects of source expertise and tie strength are marginalized.

Journal ArticleDOI
TL;DR: In this paper, the authors propose and test a model that links individual and institutional trustworthiness to relationship initiation and reveal the different effects of perceived individual versus institutional trust on relationship initiation.
Abstract: Although the literature acknowledges the role of trustworthiness in initiating customer relationships, empirical findings are limited. Drawing on attribution and cue utilization theory, this paper proposes and tests a model that links individual and institutional trustworthiness to relationship initiation. An empirical study of consulting services reveals (1) the different effects of perceived individual versus institutional trustworthiness on relationship initiation, (2) relevant determinants of perceived individual and institutional trustworthiness, and (3) how institutional trustworthiness mediates the effect of individual trustworthiness on customer behavioral intentions. Implications for further research and managerial practice are discussed.

Journal ArticleDOI
TL;DR: In this paper, the authors theoretically introduce and discuss a macrocultural research question: the likely cultural rapprochement of markets as a consequence of the en masse use of the Internet worldwide.
Abstract: This research theoretically introduces and discusses a macrocultural research question: the likely cultural rapprochement of markets as a consequence of the en masse use of the Internet worldwide. ...

Journal ArticleDOI
TL;DR: In this paper, the authors examined the effect of order fulfillment information cues via carrier disclosure on consumer perceptions of e-tailer credibility, price, and product attitude, and found that the familiarity of the etailer and carrier can positively influence consumer trust, order fulfillment and other components of business reliability.
Abstract: If high customer satisfaction is attributed for the growth of e-tail sales, trust, or the lack thereof, is one of the most-cited deterrents. While much research has been conducted examining the effect of identity theft, online privacy, and perceived security on consumer trust, order fulfillment and other components of business reliability outside of the security context have received relatively little attention. The present study examines the effect of order fulfillment information cues, via carrier disclosure, on consumer perceptions of e-tailer credibility, price, and product attitude. Results of a between-subjects experiment show that the familiarity of the e-tailer and carrier can positively influence perceptions of e-tailer credibility.

Journal ArticleDOI
TL;DR: In this paper, the authors examined innovation lead time, the construct believed to be the key determinant of launch order strategic value, and found that first-mover lead times have continued to decrease significantly, whereas second-movers have decreased marginally.
Abstract: This study examines innovation lead time, the construct believed to be the key determinant of launch order strategic value. Anecdotal evidence has suggested that innovation lead times are continuing to decrease as the result of new product development acceleration strategies. However, broad scale empirical evidence regarding product launches since 1984 has not been forthcoming. This study fills the void by comparing lead times for first movers and second movers across a 20-year time span, ending in 2004. Results confirm that first-mover lead times have continued to decrease significantly, whereas second-mover lead times have decreased marginally.


Journal ArticleDOI
TL;DR: In this article, a qualitative study, using a Canadian sample, provides support for an enhanced conceptual model of service quality applicable to the nonprofit sector, which holds insight into strategic marketing decisions faced by nonprofit managers.
Abstract: This paper explores service quality in the seldom investigated context of nonprofit organizations dependent on third-party payments for services. Building on Parasuraman, Zeithaml, and Berry's (1985) conceptual model of service quality and the theory of exchange, a qualitative study, using a Canadian sample, provides support for an enhanced conceptual model of service quality applicable to the nonprofit sector. This model holds insight into strategic marketing decisions faced by nonprofit managers, and it provides a foundation for a research agenda to gain further insights into issues of service quality.

Journal ArticleDOI
K. Sivakumar1
TL;DR: In this article, the authors focus on an important issue in brand choice: Is loss aversion for quality greater than price, or vice versa? Using existing research findings as a starting point, the study shows that it is important to use a common metric before reaching conclusions about the role of relative loss aversion on a dependent variable of interest.
Abstract: This paper focuses on an important issue in brand choice: Is loss aversion for quality greater than loss aversion for price, or vice versa? Using existing research findings as a starting point, the study shows that it is important to use a common metric before reaching conclusions about the role of relative loss aversion for price and quality on a dependent variable of interest. Based on this procedure, the paper reexamines the conclusion on the relative loss aversion for price and quality from the existing research. In addition, using numerical simulations, the paper illustrates some boundary conditions of the relative magnitudes of loss aversion for price and quality. Managerial and research implications of the findings are delineated.

Journal ArticleDOI
TL;DR: In this paper, a postpurchase behavior model containing word of mouth (WOM), perceived value, and repurchase intention (RPI) was examined in a service context and the moderating effect of gender was found to be significant in relation to WOM and RPI.
Abstract: Because customers' postpurchase evaluations influence future purchasing decisions, service providers and organizations strive to understand the process that leads to repatronage intentions. The current paper examines a postpurchase behavior model containing word of mouth (WOM), perceived value, and repurchase intention (RPI) in a service context. In addition, the role that gender plays in the postpurchase evaluation is addressed. Findings indicate that perceived value and WOM are antecedents of RPI. The moderating effect of gender was found to be significant in relation to WOM and RPI. Compared to males, females tend to engage in more WOM communications that affect their repatronage intentions.