•Drawing on two-factor theory, this study successfully identified hygiene and motivation factors that activated online impulse buying.•The hygiene factors affecting online impulse buying distributed ...across the six stages of consumer decision-making processes.•The motivation factors affecting online impulse buying distributed across the three stages.•Motivation factors that induced online impulse buying were sales promotion stimuli, which can create consumers utilitarian or hedonic benefits.•The design factors of online stores were the hygiene factors rather than the motivators.
Impulse buying accounts for a large proportion of consumer shopping behavior in the bricks-and-mortar retail market. Online retailers also expect to profit from impulse buying. It is therefore interesting and beneficial to investigate the design elements of online stores and the sales promotion stimuli that e-retailers can use to either arouse consumers’ desire or decrease their self-control to evoke their purchase impulses. This study seeks to explicitly identify the factors associated with online store design and sales promotion stimuli that most affect online impulse buying behavior throughout the consumer decision-making process. Drawing on the two-factor theory, it successfully identifies the hygiene and motivation factors that trigger online impulse buying. The questionnaire responses of 239 valid respondents revealed that most of the hygiene factors are associated with the design of online stores, and all of the motivation factors are forms of sales promotion stimuli that effectively facilitate online impulse buying and present utilitarian or hedonic benefits to consumers. This study also identifies the most effective sales promotion stimuli and offers a comprehensive checklist for Web designers. Moreover, the distribution of motivation and hygiene factors for each stage of the EKB model is uneven, and some stages include only hygiene factors. The findings of this study demonstrate that the triggers of consumers’ online shopping behavior do not always apply to online impulse buying, and have important implications for impulse buying research and practice.
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UL, UM, UPCLJ, UPUK
While transparency has been proven to be vital in modern marketing, not much studies have been conducted to explore its strength in driving target customers' interest to participate in sales ...promotion programmes. To extend empirical studies in this area, this research applied the mixed method to explore and survey the impact of perceived sales promotion transparency on young bank customers' (students') intention to participate in a sales promotion programme. Basing on the Central Bank of Nigeria's guideline and the multidimensional construct perspective of transparency, a three-factor sales promotion transparency model was conceptualized, explored, and applied on 150 students using self-administered structured questionnaire after a one-day focus group interaction involving 25 participants. Using a hypothetical bank sales promotion, the responses of the 25 participants and 140 valid questionnaires were analyzed with descriptive statistical tools and the multiple regression analysis in SPSS 21.0. Findings show that perceived sales promotion transparency significantly and positively impacts students' intention to participate, and that transparency in sales promotion policy, process, and outcome are significant predictors of intention to participate. The study recommends emphasis on transparency in these critical dimensions as a way of building and sustaining ethical sales promotion practices in the Nigerian banking industry.
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BFBNIB, IZUM, KILJ, NUK, PILJ, SAZU, UL, UM, UPUK
3.
Cashback Is Cash Forward Vana, Prasad; Lambrecht, Anja; Bertini, Marco
Journal of marketing research,
12/2018, Volume:
55, Issue:
6
Journal Article
Peer reviewed
Open access
The authors examine purchase behavior in the context of cashback shopping—a novel form of price promotion online in which consumers initiate transactions at the website of a cashback company and, ...after a significant delay, receive the savings promised to them. Specifically, they analyze panel data from a large cashback company and show that, independent of the predictable effect of cashback offers on initial demand, cashback payments (1) increase the probability that consumers will make an additional purchase via the website of the cashback company and (2) increase the size of that purchase. These effects pass several robustness checks and are also meaningful: At average values in the data, an additional $1.00 in cashback payment increases the likelihood of a future transaction by .02% and spending by $.32—figures that represent 10.03% of the overall impact of a given promotion. Moreover, the authors find that consumers are more likely to spend the money returned to them at generalist retailers, such as department stores, than at other retailers. They consider three explanations for these findings; the leading hypothesis is that consumers fail to treat money as a fungible resource. They also discuss implications for cashback companies and retailers.
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BFBNIB, INZLJ, IZUM, KILJ, NMLJ, NUK, OILJ, PILJ, PNG, SAZU, UKNU, UL, UM, UPUK, ZRSKP
•A consignment contract should match with manufacturers’ sales promotion (MC).•A wholesale price contract should match with retailers’ sales promotion (RP).•Each one prefers to fully control demand ...if it has more power and enough capital.•Mode MC matches for low price customers, RP for those also enjoying sales promotions.•Our results are consistent with the practice of Best Buy, Gome and Suning.
From the practices of Chinese consumer electronics market, we find there are two key issues in supply chain management: The first issue is the contract type of either wholesale price contracts or consignment contracts with revenue sharing, and the second issue is the decision right of sales promotion (such as advertising, on-site shopping assistance, rebates, and post-sales service) owned by either manufacturers or retailers. We model a supply chain with one manufacturer and one retailer who has limited capital and faces deterministic demand depending on retail price and sales promotion. The two issues interact with each other. We show that only the combination (called as chain business mode) of a consignment contract with the manufacturer’s right of sales promotion or a wholesale price contract with the retailer’s right of sales promotion is better for both members. Moreover, the latter chain business mode is realized only when the retailer has more power in the chain and has enough capital, otherwise the former one is realized. But which one is preferred by customers? We find that the former is preferred by customers who mainly enjoy low price, while the latter is preferred by those who enjoy high sales promotion level.
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UL, UM, UPCLJ, UPUK
The increasingly fierce business competition in the bubble drink industry influences the company's strategy to retain customers. One of the bubble drink companies in Bali is Chatime. Chatime must be ...able to carry out the right strategy so that consumers feel interested and have the intention to repurchase Chatime products. This study aims to explain the direct relationship between sales promotion variables on repurchase intention, sales promotion on brand image, the brand image on repurchase intention, and the role of brand image in mediating sales promotion on Chatime's repurchase intention. This research was conducted in the Province of Bali. The sample was determined as many as 84 samples using purposive sampling. Data was collected using a questionnaire with adjusted criteria. The research instrument was measured using a Likert scale. The data analysis technique used is descriptive and inferential analysis, the inferential analysis used is path analysis and the Sobel test. The results of this study indicate that all hypotheses are proven. Sales promotions have a positive and significant effect on repurchase intentions. Sales promotion has a positive and significant effect on brand image. Brand image has a positive and significant effect on repurchase intention. Brand image can significantly mediate partially the effect of sales promotion on repurchase intention. Attractive sales promotions and a strong brand image greatly influence Chatime's customer repurchase intentions. Chatime should give intensity to contests that are more attractive to Chatime customers. Chatime can strengthen its uniqueness by carrying out innovations like the low-sugar bubble topping variant.
Customer–firm relationship affects firm performance, and loyalty programs are a popular tool to enhance this relationship in service industries. An essential measure of a loyalty program’s ...effectiveness is its members’ point redemption behavior. Customers engage more with the firm when they periodically redeem points. However, current studies find that customers tend to stockpile rather than redeem points. In this research, the authors investigate the relationships between customer relationship characteristics in loyalty programs (i.e., purchase depth, purchase breadth, purchase recency, redemption depth, redemption breadth, and redemption recency) and customers’ point redemption behavior. The empirical analyses show that customers with higher purchase depth and redemption recency are more likely to redeem points. However, customers with higher purchase breadth, purchase recency, redemption depth, and redemption breadth are less likely to redeem points. In addition, once deciding to redeem, customers with higher purchase breadth and purchase recency will redeem more points. The results imply that managers should motivate point redemptions among customers who purchase a lot from the firm but are concentrated on their purchases and redemptions. The findings also indicate that point redemption is a valuable tool to regain customers who are drifting away from the firm.
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NUK, OILJ, SAZU, UKNU, UL, UM, UPUK
Preorder offers are increasingly common for many types of products and services. Sales promotions, such as price discounts and free gifts, are frequently used to raise offer attractiveness and elicit ...a stronger sales response. Through a series of experiments, we show that a preorder promotion's effectiveness depends on whether it matches the construal level associated with timing of the featured product's release. When a match occurs, it increases consumers’ positive affect leading to higher purchase intention directly or by raising the perceived certainty of new product quality. In addition, we find interesting differences related to promotion type. Specifically, we show that a larger discount promotes low‐level construals, which leads to stronger purchase intentions only when the product is scheduled for near‐future release. Since a gift may elicit either high‐ or low‐level construals, a premium offer of higher perceived value leads to stronger purchase intentions regardless of release timing.
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BFBNIB, FZAB, GIS, IJS, KILJ, NLZOH, NUK, OILJ, SBCE, SBMB, UL, UM, UPUK
PurposeDue to fierce competition in the mobile retailing market, it is desirable to identify the success factors driving consumers to reuse a mobile shopping application. This research intends to ...develop a model for mobile shopping app success by integrating an e-commerce systems success (ESS) model and sales promotion benefits and parasocial interaction literatures.Design/methodology/approach302 useable online questionnaires were obtained. The data analysis was conducted using the structural equation modelling.FindingsThe results indicate the validity of the ESS model in predicting consumers' reuse intention of mobile shopping apps where three quality dimensions of system, information and service facilitate both perceived value and user satisfaction, which in turn generates reuse intention. Furthermore, savings and entertainment denoting the utilitarian and hedonic sales promotion benefits have positive impact on perceived value but have no influence on satisfaction. Parasocial intention between consumers and sellers facilitates both value perception and satisfaction.Originality/valueThis research contributes to the mobile retailing literature by identifying the success factors driving consumers' continuance intention of mobile shopping apps. Theoretically, it validates and extends the ESS model in mobile shopping app context by identifying savings, entertainment and parasocial interaction as additional success factors. Based on the findings, two approaches are proposed to suggest mobile retailers design a successful mobile shopping app.
Practice- and Policy-Oriented Abstract
This research investigates the economic value of the new and essential features of transportation network companies (TNCs) and the effectiveness of running a ...two-sided sales promotion to help introduce those new features. We estimate the marginal economic values generated by the features of passenger matching, order cancellation, and online pay, thus shedding light on the TNC app attributions and designs. We further find that drivers underperceive the values of those features initially and need more usage experience to correct the bias. This finding demonstrates the significant role of usage experience in alleviating bias from uncertainty and supports the common industry practice of enhancing usage experience during product introduction. Our study also shows that the substantial value of early promotion not only encourages current usage but also fosters learning that sustains drivers’ continued use of the app. Additional insights that, for example, cashback for passengers affects the decisions of drivers, and platform subsidy and bids from passengers might signal low quality of service can help the managers of newly introduced products better design sales promotions in a more effective way.
The mobile app of a transportation network company (TNC) has reshaped the taxi business model by providing new features and allowing the TNC platform to run a diverse two-sided sales promotion to help introduce those new features. We investigate the economic value of this app and how drivers build an initial preference for passenger matching, the cancellation feature, and online pay as well as how a two-sided sales promotion affects drivers’ willingness to use the TNC app. We estimate a structural model of drivers’ decisions to accept orders and to cancel generated orders and their perception of passengers’ willingness to utilize a sales promotion. Bayesian learning processes are introduced to account for drivers’ learning new features. We find evidence of the economic value of new features on a TNC app and drivers’ learning about the value of those features. Our results show that a platform subsidy and bids from passengers might signal low quality of service, and that platform cashback to passengers has a positive effect on drivers by increasing drivers’ chances of being rewarded. Our results further indicate that the substantial value of early promotion not only encourages current usage but also fosters learning that sustains drivers’ continued use of the app, and show how cashback for passengers affects the decisions of drivers. Finally, our policy simulations show improved performance with regard to drivers’ willingness to use the app as well as its cost effectiveness.
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