A debate about whether firms with superior customer satisfaction earn superior stock returns has been persistent in the literature. Using 15 years of audited returns, the authors find convincing ...empirical evidence that stock returns on customer satisfaction do beat the market. The recorded cumulative returns were 518% over the years studied (2000-2014), compared with a 31% increase for the S&P 500. Similar results using back-tested instead of real returns were found in the United Kingdom. The effect of customer satisfaction on stock price is, at least in part, channeled through earnings surprises. Consistent with theory, customer satisfaction has an effect on earnings themselves. In addition, the authors examine the effect of stock returns from earnings on stock returns from customer satisfaction. If earnings returns are included among the risk factors in the asset pricing model, the earnings variable partially mitigates the returns on customer satisfaction. Because of the long time series, it is also possible to examine time periods when customer satisfaction returns were below market. The reversal of the general trend largely resulted from short-term market idiosyncrasies with little or no support from fundamentals. Such irregularities have been infrequent and eventually self-correcting. The authors provide reasons why irregularities may occur from time to time.
Abstract
Introduction
For cigars sold individually without packaging, including many premium cigars, the US Food and Drug Administration (FDA) proposed that retailers display six warning statements ...on a sign at the point-of-sale (POS).
Aims and Methods
To examine the potential effectiveness of cigar warning signs, we conducted a between-subjects online experiment. Participants were 809 U.S. adults who reported using cigars (78% ever large cigar use, 49% past 30-day large cigar use) recruited from a probability-based panel. Participants viewed an image of a cigar store countertop with randomization to one of four conditions: (1) no warning sign, (2) a sign with six FDA proposed text-only warnings, (3) a sign with six novel text-only warnings, or (4) a sign with six novel text + image warnings. We used analysis of variance (ANOVA) models and post hoc Tukey tests to examine the results.
Results
The FDA-proposed text-only warning sign was perceived as less effective in discouraging participants from smoking cigars (M: 3.26, SD: 1.39; scale range: 1–5, where five indicates higher discouragement) compared with the novel text-only warning sign (M = 3.38, SD = 1.40) and the novel text + image warning sign (M = 3.65, SD = 1.34). The novel text + image warning sign increased discouragement from smoking cigars versus the FDA-proposed text-only warning sign (p = .02) and decreased the perceived satisfaction of smoking cigars versus no warning sign (p = .04). In a sensitivity analysis, the novel text + image warning sign decreased the perceived satisfaction of smoking cigars (p = .01), decreased cigar purchase intentions (p = .03), decreased the urge to smoke (p = .03), and increased discouragement from smoking cigars (p = .006) compared with all other study conditions.
Conclusions
Results provide new evidence that policymakers, such as the FDA, could use when proposing POS warning signs for cigars.
Implications
The US FDA proposed that retailers display a warning sign at the POS for cigars sold individually without packaging. We conducted an online experiment concerning the potential effectiveness of this regulatory policy with people who use cigars recruited from a probability-based panel. Results provide the first evidence that the FDA-proposed text-only warning sign was perceived as less effective than other types of warning signs and that adding images could potentially increase the effectiveness of warning signs. These findings are particularly relevant for premium cigars, which are often sold individually in brick-and-mortar retail settings.
Abstract
Introduction
Little is known about the location and store type of premium cigar retailers in the United States. Different store types may expose people to secondhand smoke (eg, cigar bar or ...lounge) and may also have age restrictions (eg, tobacco shops) that could reduce youth exposure to products and marketing.
Aims and Methods
We obtained a national retailer dataset from the Premium Cigar Association (PCA) from 2019 to 2021. We coded store type using nine categories and used generalized estimating equations to examine associations between census tract sociodemographic characteristics and PCA store type.
Results
Of the 1279 PCA retailers, the majority were cigar stores (39%), followed by tobacco shops (26%), cigar bars or lounges (20%), and beer, wine, or liquor stores (15%). Overall, there were no statistically significant associations between tract-level sociodemographic characteristics and the odds that a retailer was a specific store type versus another store type. However, PCA retailers located in tracts with a higher percentage of non-Hispanic Black residents were associated with 1.12 times the odds of being a cigar bar or lounge versus another type (95% CI, 1.02 to 1.22).
Conclusions
The majority of PCA retailers are specialty cigar stores or cigar bars or lounges, and few are more traditional tobacco retailers, such as convenience stores. We document a higher odds of a store being a cigar bar or lounge for retailers located in neighborhoods with a higher proportion of Black residents, which may contribute to inequities in tobacco-related disease and disability because of potentially greater secondhand smoke exposure.
Implications
Specialized retailers account for most premium cigar stores. One in five PCA retailers was a cigar bar or lounge, which raises public health concerns around exposure to secondhand smoke for patrons and employees. Local jurisdictions should examine zoning ordinances in tandem with sociodemographic characteristics to ensure inequities in the location of cigar bars or lounges are not produced or sustained given the potential harms associated with secondhand smoke exposure.
•Consumer purchases of suboptimal foods can be influenced by positioning strategies.•Sustainability positioning works best when combined with a moderate price discount.•Authenticity positioning ...increases suboptimal food choices and quality perceptions.•Positioning strategies work better for suboptimal products than price discounts.•Positioning effects are independent of demographics and personality.
In the societal change towards a more sustainable future, reducing food waste is one of the mostly discussed topics. One significant source of food waste is the reluctance of supply chains and consumers to sell, purchase, or consume products that deviate from optimal products on the basis of only cosmetic specifications. Yet, it is currently unclear how consumers can be motivated to purchase such suboptimal products. The present research suggests that presenting suboptimal products with a sustainability positioning or with an authenticity positioning can positively affect consumers’ purchase intentions and quality perceptions of suboptimal products. Two studies (total N = 1804) presenting suboptimal products with a sustainability positioning, an authenticity positioning, or no positioning under varying price levels reveal that especially authenticity positioning can increase purchase intentions for and quality perceptions of suboptimal products independent of the prices of suboptimal products. A sustainability positioning appears to work best when combined with a moderate price discount. Moreover, the findings show that respondents have lower intentions to waste suboptimal foods when a clear positioning is provided compared to when this is not provided. Together, these findings provide a constructive first step towards a more sustainable solution for the suboptimal product waste problem.
Quality is a central element in business strategy and academic research. Despite important research on quality, an opportunity for an integrative framework remains. The authors present an integrative ...framework of quality that captures how firms and customers produce quality (the quality production process), how firms deliver and customers experience quality (the quality experience process), and how customers evaluate quality (the quality evaluation process). The framework extends the literature in several ways. First, the authors describe important linkages between the three processes, including links reflecting the role of co-production. Second, they point to overlooked aspects of the quality processes that influence how quality is conceptualized and should be managed. These include customer heterogeneity in measurement knowledge and motivation; the role of emotion in quality production, experience, and evaluation; and a new typology of attributes. Third, they propose a quality state residing within each quality process and describe what gives rise to these states, which will enhance decision makers' ability to measure and manage quality processes. Finally, they offer theoretical and managerial implications derived from their integrative quality framework including 20 strategies to increase customer satisfaction.
How does the monetary value of customer purchases vary by customer preference for purchase channels (e.g., traditional, electronic, multichannel) and product category? The authors develop a ...conceptual model and hypotheses on the moderating effects of two key product category characteristics—the utilitarian versus hedonic nature of the product category and perceived risk—on the channel preference—monetary value relationship. They test the hypotheses on a unique large-scale, empirically generalizable data set in the retailing context. Contrary to conventional wisdom that all multichannel customers are more valuable than single-channel customers, the results show that multichannel customers are the most valuable segment only for hedonic product categories. The findings reveal that traditional channel customers of low-risk categories provide higher monetary value than other customers. Moreover, for utilitarian product categories perceived as high (low) risk, web-only (catalog- or store-only) shoppers constitute the most valuable segment. The findings offer managers guidelines for targeting and migrating different types of customers for different product categories through different channels.
Although prior research has addressed the influence of corporate social responsibility (CSR) on perceived customer responses, it is not clear whether CSR affects market value of the firm. This study ...develops and tests a conceptual framework, which predicts that (1) customer satisfaction partially mediates the relationship between CSR and firm market value (i.e., Tobin's q and stock return), (2) corporate abilities (innovativeness capability and product quality) moderate the financial returns to CSR, and (3) these moderated relationships are mediated by customer satisfaction. Based on a large-scale secondary data set, the results show support for this framework. Notably, the authors find that in firms with low innovativeness capability, CSR actually reduces customer satisfaction levels and, through the lowered satisfaction, harms market value. The uncovered mediated and asymmetrically moderated results offer important implications for marketing theory and practice.
Sharing tourism experiences in social media Sotiriadis, Marios D.
International journal of contemporary hospitality management,
01/2017, Letnik:
29, Številka:
1
Journal Article
Recenzirano
Purpose
The purpose of this paper is twofold: to perform a synthesis of academic research published between 2009 and 2016 regarding the changes in tourism consumer behavior brought about by the use ...of social media (SM); and to suggest a set of strategies for tourism businesses to seize opportunities and deal with resulting challenges.
Design/methodology/approach
A volume of 146 peer-reviewed journal articles were retrieved from two major databases. Content analysis of this academic research has been performed, exploring the effects of online reviews on tourism consumers and providers.
Findings
The content analysis identified three main research themes that were investigated by scholars and classified into two major categories, namely, consumer perspective and provider perspective: the antecedents (factors motivating and influencing tourists); the influence of online reviews on consumer behaviour; and the impact of these reviews on tourism businesses (providers’ perspective).
Research limitations/implications
This study is based on a literature review and outcomes reported by previous studies; hence, the suggestions are indicative rather than conclusive. Some publication sources were not included.
Practical implications
This paper suggests a range of adequate strategies, along with operational actions, formulated for industry practitioners in the fields of management and marketing.
Originality/value
It provides an update of the state of published academic research into SM and an integrated set of management and marketing strategies for tourism providers in seizing the opportunities and dealing with the challenges raised in a digital context.
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