Incorporating Perceived Risk into Models of Consumer Deal Assessment and Purchase Intent. CM Wood... more Incorporating Perceived Risk into Models of Consumer Deal Assessment and Purchase Intent. CM Wood, LK Scheer ADVANCES IN CONSUMER RESEARCH 23, 399-404, ASSOCIATION FOR CONSUMER RESEARCH, 1996.
Journal of the Academy of Marketing Science, Jan 20, 2009
This research examines whether suppliers’ capabilities impact OEM customers’ dependence on the su... more This research examines whether suppliers’ capabilities impact OEM customers’ dependence on the supplier and thereby generate customer loyalty. Using a sample of purchasing managers focusing on a single key component supplier, we examine three supplier capabilities, two dependence dimensions, and three aspects of customer loyalty. Core offering capability increases the customer firm’s benefit-based dependence. Operations capability has a more comprehensive effect, enhancing both benefit-based and cost-based dependence. Benefit-based dependence leads to relational loyalty and, through its effect on relational loyalty, to insensitivity to competitive offerings and future purchase expansion. Cost-based dependence motivates insensitivity to competitive offerings, but does not affect relational loyalty or purchase expansion. The supplier’s communication capability is associated with relational loyalty, but this effect does not flow through the customer firm’s dependence. The divergent pattern of antecedents and effects of benefit-based dependence and cost-based dependence may explain the inconsistent and insignificant research findings in previous research on dependence. Our results suggest that adopting a bi-dimensional model of dependence more fully captures the theoretical domain of dependence, thereby permitting researchers to better examine its role in supply chain, channel, and marketing relationships.
Journal of Product & Brand Management, Jun 2, 2010
PurposeThis research aims to study how buyers' budget constraints influence buyers' perce... more PurposeThis research aims to study how buyers' budget constraints influence buyers' perceptions of discounts presented in a dollars‐off versus percentage‐off format. A comparison of perceptions of discount format under budget constraints is missing from the past literature. The current research aims to fill this gap.Design/methodology/approachThe research is based on two experiments. In the first experiment, a study by Kahneman and Tversky is replicated and extended by including budget constraints. In the second experiment participants are given either a high or a low budget and then asked to compare objectively equivalent discounts that are presented in either dollars‐off or percent‐off terms. Participants' willingness to buy is recorded and used to gauge the efficacy of the discount formats under budget constraints.FindingsThe research extends previous findings derived from the psychophysics of pricing. It demonstrates that, although it is believed that the attractiveness of an absolute discount is inversely proportional to the objective price, such evaluations are also influenced by the presence of budget information. Specifically, consumer budget interacts with discount formats such that the $‐off versus percent‐off discounts may not be appropriate for expensive or inexpensive products respectively, as shown in past research. Instead, the value of the discount in proportion to the available budget may play a significant role in deal evaluation. Therefore it is an important issue retailers should consider when deciding what discount presentation format to use.Originality/valueAlthough past research views price as a constraint, the findings indicate that price in itself may not be a constraint unless viewed within the context of a budget. Consumers implicitly make this comparison, but past research has not specifically tested for the effects of budgets and, instead, has relied on income as a proxy for a consumer's spending power. The results provide evidence that using income instead of budget may be an oversimplification.
Frontline employees (FLEs) often face customer incivility—rude or demeaning remarks, verbal aggre... more Frontline employees (FLEs) often face customer incivility—rude or demeaning remarks, verbal aggression, or hostile gestures. Although incivility from customers is rising at an alarming rate, most organizations refuse to act decisively to protect their FLEs and stop customer incivility. This research asserts that an organizational policy of ignoring and accepting incivility from customers is neither a wise business strategy nor has positive outcomes. In contrast, customer incivility should be handled promptly and decisively. Specifically, the authors present FLE Constructive Resistance (FLE CR) as a strategy to confront customer incivility. The authors conduct interviews with FLEs, develop a Constructive Resistance (CR) scale to fit the context of FLE–customer encounters, and test a conceptual model to examine the impact of CR by FLEs. The results suggest that customers who observe incivility perpetrated by fellow customers respond positively to FLE CR, including greater future purch...
Supplemental Material, jmr.16.0299_web_appendices for Multichannel Strategies for Managing the Pr... more Supplemental Material, jmr.16.0299_web_appendices for Multichannel Strategies for Managing the Profitability of Business-to-Business Customers by Justin M. Lawrence, Andrew T. Crecelius, Lisa K. Scheer, and Ashutosh Patil in Journal of Marketing Research
Incorporating Perceived Risk into Models of Consumer Deal Assessment and Purchase Intent. CM Wood... more Incorporating Perceived Risk into Models of Consumer Deal Assessment and Purchase Intent. CM Wood, LK Scheer ADVANCES IN CONSUMER RESEARCH 23, 399-404, ASSOCIATION FOR CONSUMER RESEARCH, 1996.
Journal of the Academy of Marketing Science, Jan 20, 2009
This research examines whether suppliers’ capabilities impact OEM customers’ dependence on the su... more This research examines whether suppliers’ capabilities impact OEM customers’ dependence on the supplier and thereby generate customer loyalty. Using a sample of purchasing managers focusing on a single key component supplier, we examine three supplier capabilities, two dependence dimensions, and three aspects of customer loyalty. Core offering capability increases the customer firm’s benefit-based dependence. Operations capability has a more comprehensive effect, enhancing both benefit-based and cost-based dependence. Benefit-based dependence leads to relational loyalty and, through its effect on relational loyalty, to insensitivity to competitive offerings and future purchase expansion. Cost-based dependence motivates insensitivity to competitive offerings, but does not affect relational loyalty or purchase expansion. The supplier’s communication capability is associated with relational loyalty, but this effect does not flow through the customer firm’s dependence. The divergent pattern of antecedents and effects of benefit-based dependence and cost-based dependence may explain the inconsistent and insignificant research findings in previous research on dependence. Our results suggest that adopting a bi-dimensional model of dependence more fully captures the theoretical domain of dependence, thereby permitting researchers to better examine its role in supply chain, channel, and marketing relationships.
Journal of Product & Brand Management, Jun 2, 2010
PurposeThis research aims to study how buyers' budget constraints influence buyers' perce... more PurposeThis research aims to study how buyers' budget constraints influence buyers' perceptions of discounts presented in a dollars‐off versus percentage‐off format. A comparison of perceptions of discount format under budget constraints is missing from the past literature. The current research aims to fill this gap.Design/methodology/approachThe research is based on two experiments. In the first experiment, a study by Kahneman and Tversky is replicated and extended by including budget constraints. In the second experiment participants are given either a high or a low budget and then asked to compare objectively equivalent discounts that are presented in either dollars‐off or percent‐off terms. Participants' willingness to buy is recorded and used to gauge the efficacy of the discount formats under budget constraints.FindingsThe research extends previous findings derived from the psychophysics of pricing. It demonstrates that, although it is believed that the attractiveness of an absolute discount is inversely proportional to the objective price, such evaluations are also influenced by the presence of budget information. Specifically, consumer budget interacts with discount formats such that the $‐off versus percent‐off discounts may not be appropriate for expensive or inexpensive products respectively, as shown in past research. Instead, the value of the discount in proportion to the available budget may play a significant role in deal evaluation. Therefore it is an important issue retailers should consider when deciding what discount presentation format to use.Originality/valueAlthough past research views price as a constraint, the findings indicate that price in itself may not be a constraint unless viewed within the context of a budget. Consumers implicitly make this comparison, but past research has not specifically tested for the effects of budgets and, instead, has relied on income as a proxy for a consumer's spending power. The results provide evidence that using income instead of budget may be an oversimplification.
Frontline employees (FLEs) often face customer incivility—rude or demeaning remarks, verbal aggre... more Frontline employees (FLEs) often face customer incivility—rude or demeaning remarks, verbal aggression, or hostile gestures. Although incivility from customers is rising at an alarming rate, most organizations refuse to act decisively to protect their FLEs and stop customer incivility. This research asserts that an organizational policy of ignoring and accepting incivility from customers is neither a wise business strategy nor has positive outcomes. In contrast, customer incivility should be handled promptly and decisively. Specifically, the authors present FLE Constructive Resistance (FLE CR) as a strategy to confront customer incivility. The authors conduct interviews with FLEs, develop a Constructive Resistance (CR) scale to fit the context of FLE–customer encounters, and test a conceptual model to examine the impact of CR by FLEs. The results suggest that customers who observe incivility perpetrated by fellow customers respond positively to FLE CR, including greater future purch...
Supplemental Material, jmr.16.0299_web_appendices for Multichannel Strategies for Managing the Pr... more Supplemental Material, jmr.16.0299_web_appendices for Multichannel Strategies for Managing the Profitability of Business-to-Business Customers by Justin M. Lawrence, Andrew T. Crecelius, Lisa K. Scheer, and Ashutosh Patil in Journal of Marketing Research
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