Price‐Matching Guarantees and Consumer Evaluations of Price Information

In 3 experiments, we show that price‐matching guarantees affect the process through which consumers translate price information into subjective judgments. In Experiment 1, we find that price‐matching guarantees appear to change the standard used in price evaluation by raising consumers’ estimates of the lowest and average prices in the market. This leads consumers to perceive products and stores that offer price‐matching guarantees as less expensive. In Experiment 2, we show that evaluations of product price information are affected by the presence of a price‐matching guarantee only when consumers do not know the range of market prices. In Experiment 3, we extend these findings to show that consumer evaluations of the cost of products in a store, inferred on the basis of store characteristics, are also influenced by the presence of a price‐matching guarantee.     

Consumer Evaluation of Low Price Guarantees: The Moderating Role of Reference Price and Store Image

This article reports the findings of 2 studies that examined the effects of low price guarantees (LPG) in retail advertisements within the framework of signaling theory. Overall, an LPG in an ad resulted in higher value perceptions and shopping intentions. Findings also suggest that the effect of an LPG is likely to be moderated by other price cues such as reference prices and by the price image of the store. An LPG resulted in higher value perception and shopping intention when reference prices were low or absent, but lowered search intention in the presence of a high reference price. Additional findings suggest that intention to search for a better price was lower, particularly when an LPG was offered by a low price image store. For high price image stores, an LPG increased value perceptions and shopping intentions, while also increasing search intentions, indicating the possibility that LPGs can act as a double‐edged sword in certain instances. Managerial and public policy implications are also noted.     

Spanish consumers' perceptions of US apparel speciality retailers' products and services

Apparel speciality retailers' success in international markets is contingent upon their knowledge of culturally‐defined values, norms and behaviour that influence consumer decision making and impact acceptance of products and services. An integrated theoretical framework of retail internationalisation guided this investigation of the viability of the Spanish market for US retailers. This study examined consumers' store patronage and apparel purchase behaviour, acceptance of US apparel brands, perceptions of retailers' products and services, and perceptions of the impact of foreign retailers on local communities. Data were collected from 375 consumers in Barcelona, Madrid and Valencia. The influence of retailer characteristics on consumers' store patronage varied by age and income. Product characteristics that influenced apparel purchases varied by gender, income and age, while acceptance of US brands differed by gender and age. The perceptions of Spanish, European and US retailers differed regarding quality, fashionability, product assortment, extent and quality of customer service, convenience of location, payment options, national brands and store layout. Consumers' acceptance of US apparel brands was a function of age, household income, apparel product country of manufacture and price. Perceptions of US retailers were a function of household income, selected apparel characteristics and consumer acceptance of US apparel brands. Differences among perceptions of the impact of retail development were found by city. The findings provide insights into the opportunities and challenges for US apparel speciality retailers as they contemplate entry into the Spanish market. The affinity for US apparel among young Spanish consumers, particularly males, suggests optimism regarding opportunities in this market. Copyright © 2005 John Wiley & Sons, Ltd.     

The empirical link between relationship marketing tools and consumer retention in retail marketing

This article focuses on the key relationship marketing tools of customer service, loyalty/rewards programs, brand/store community, personalization and customization, and their relationship with customer retention. The relationship between customer service, loyalty/rewards programs, customization, personalization, brand/store community and customer retention were examined via an empirical investigation of 450 loyalty/reward program members of three retail stores in Malaysia. The administration of the survey was personally administered but self‐completed. Four of the five relationship marketing tools, namely, customer service, loyalty/rewards programs, brand/store community and personalization, had a significant positive relationship with customer retention. The findings provided valuable insights into the loyalty program management practices of retail stores in a developing country context. Copyright © 2013 John Wiley & Sons, Ltd.     

Visual aesthetics in store environment and its moderating role on consumer intention

• The paper goal is to answer the following questions: What are the factors of centrality of visual aesthetic design (CVSA) in store environment? What factor explains better the construct? Is there a relationship between CVSA and consumers' intentions, such as loyalty, satisfaction, minutes, item, and $ spent inside store? What is the moderating role of store visual aesthetic design on consumer intentions? The research design was a 2 × 2 design, between subjects, which we manipulated store arousal (high vs. low) and CVSA (high vs. low) in two studies. The findings supported the theory that there are three CVSA dimensions; that there is a positive relationship between CVSA and consumer satisfaction, loyalty, items bought, minutes visiting the store, and $ spent; and that high (vs. low) CVSA consumers were more discriminating in their intentions, when the environment had a high arousal. The original value is to support the notion that consumers also evaluate, beyond products, visual aesthetic components in retail and that it plays a moderating role on consumer intention.

Copyright © 2010 John Wiley & Sons, Ltd.     

Exploring the everyday retail experience: The discourses of style and design

In contrast to earlier studies focusing on spectacular retail store environments, this study concentrates on examining ordinary retail stores and everyday retail experiences. The article explores how different sorts of retail environments influence consumers' experience and behaviour. The research uses a comparative case study and employs the theoretical framework of geosemiotics. Investigating three different stores from the perspective of architectural style reveals that cultural meanings are firmly attached to interior style design, and these can be traced in customers' retail experiences. Our findings suggest, firstly, that stores' focusing solely on functional aspects such as the efficient use of space, standardization and self‐service rather than also considering aesthetic issues leads to rather neutral and uninteresting retail experiences. Secondly, they show that the retail store environment affects the social relationships that consumers establish in commercial locations. Thirdly, the study indicates that customers' overall retail experience is linked to their perceptions of the store's social and environmental responsibility and moral values. On the whole, this research advances our theoretical understanding of everyday consumption experiences. Copyright © 2014 John Wiley & Sons, Ltd.     

Failing to Suspect Collusion in Price‐Matching Guarantees: Consumer Limitations in Game‐Theoretic Reasoning

Marketers often commit to matching competitors’ prices by offering price‐matching guarantees (PMGs). Theory, however, shows that PMGs can either foster price competition and lower market prices or facilitate price collusion and raise market prices. In 3 experiments, we tested if consumers suspect collusion in such tactics and if this suspicion in turn affects their preferences for PMGs. Experiment 1 showed that consumers prefer markets where sellers offer PMGs over those that do not, suggesting little or no suspicion of collusion. Experiment 2 replicated these findings and extended them by showing that although most consumers prefer PMG markets, consumers higher in need for cognition (NFC) do, consistent with the greater suspicion hypothesized, prefer PMG markets more weakly. However, this weakened preference emerged from concerns over lower product quality in PMG markets more so than expectations of unduly high prices. Experiment 3 then tested the collusive potential of PMGs by placing participants in the role of a government regulator charged with finding collusion in various markets. Regardless of explicit primes and NFC, participants perceived PMGs as competitive devices that reduce prices rather than collusive devices that raise them. In contrast to the assumptions underlying game‐theoretic models, consumers often lack the strategic sophistication necessary to detect the collusive potential of PMGs, a limitation that implicates legislation to moderate the use of such devices.     

Human crowding and store messiness: Drivers of retail shopper confusion and behavioral intentions

With today's cut‐throat competition, brick and mortar retailers are engaging in various in‐store elements like ambience, visual design, and social factors to entice consumers. However, these environmental stimuli if not used properly can lead to retail shopper confusion that can negatively influence shopper behavioral intentions. Drawing on the theoretical argument that information overload facilitates retail shopper confusion, two experimental studies are conducted. The findings of both studies suggest a main effect of human crowding and store messiness for each dimension of retail shopper confusion—irritation, inefficiency, and helplessness. Mediating role of retail shopper confusion between human crowding, store messiness, and shopping behavioral intentions is also examined. Interactive impact of human crowding and store messiness suggests store messiness to be more problematic. The moderating role of shopping motivations (task vs. recreational) is also examined that suggests the negative effect of retail shopper confusion for consumers pursuing recreational shopping motivations. These findings across the two studies offer a new perspective that recommend the importance of organized retail store environments. Theoretical and practical implications are discussed.     

Salesperson characteristics affecting consumer complaint responses

The important relationship between consumer complaint behaviour and brand and store loyalty is well established. The range of factors that favourably influence the outcomes of complaining have received relatively less research attention. Therefore, this study tests the effects of two salesperson source characteristics: willingness to listen and product/store knowledge, on consumer complaint‐related perceptions and intentions in a retail setting. Mall shoppers participated in a consumer complaint experiment to test the hypothesised effects. The results indicate that both characteristics affect customer complaint responses, as well as consumer perceptions of the salesperson and the retail store. The findings of the study demonstrate that salesperson characteristics are important influences on positive or negative consumer complaint responses. Copyright © 2001 Henry Stewart Publications.     

ORGANIZATIONAL PERFORMANCE AND ORGANIZATIONAL LEVEL TRAINING AND SUPPORT

The present study uses both objective and survey data to examine relations among retail sales training, organizational support, and store performance and to examine whether training interacts with organizational support to predict store performance. The study is unique in that it presents an example of the analysis of the relationship between organizational level measures of training and performance, as opposed to more traditional individual level measures. Archival data in a correlational design were analyzed for 62 stores belonging to the same international merchandising firm. Two measures of training and two measures of support were used to predict two measures of store performance. Results indicated that training and organizational support were significantly correlated with both measures of store performance, although the relationship between training and organizational performance was stronger. In contrast to predictions, there were no significant interactions between the training and support variables.     

Is Salesperson Attractiveness a Boon or a Bane? The Moderating Role of Perceived Labor Cost‐To‐Price Ratio in Retail Bargaining

This research examines the important but unexamined effects of salesperson attractiveness on consumer bargaining behavior in retail contexts. In line with our theorizing, three studies demonstrate that the effect of salesperson attractiveness on consumer bargaining depends on their general beliefs regarding the impact of labor costs on retail prices. While consumers bargain less with an attractive salesperson when their labor costs‐to‐price (LP) ratio beliefs are relatively low, they bargain harder with an attractive, as opposed to a less attractive, salesperson, when their LP ratio beliefs are relatively high. As well, we provide evidence for the process, based on the salesperson's perceived trustworthiness and consumers' consequent bargaining stance toward her.     

Introducing the super consumer

The purpose of this study is to propose a new perspective on classifying or segmenting consumers by describing a minority of them who are uniquely motivated by high levels of status seeking, brand identification, and materialism. We term this segment of individuals “super consumers.” The data came from an online survey of 351 adult US consumers. A cluster analysis using these three variables as criteria produced a two‐cluster solution. Comparing mean scores between these two groups of consumers on measures of market mavenism, shopping frequency, amount of spending, age, and gender showed that the super consumers were significantly more likely to be market mavens, to shop more frequently, and to spend more than the other consumers were. The super consumers were younger in age as well, but there were no gender differences between the two groups. Copyright © 2015 John Wiley & Sons, Ltd.     

Priced just for me: The role of interpersonal attachment style on consumer responses to customized pricing

Customized pricing is an increasing phenomenon in the marketplace, but little is known about factors influencing consumer responses to customized pricing. The present paper seeks to gain an understanding of how, why, and when this emerging pricing mechanism may offer benefits. Specifically, this research focuses on how consumers respond to customized pricing tactics and, more specifically, on how interpersonal attachment orientations impact consumers' responses to prices offered in the presence of a customized pricing program. The results of 3 studies suggest that customized pricing programs likely create an expectation for a discounted price among securely attached individuals, such that these consumers are dissatisfied paying the shelf price in the presence of a customized pricing program. Overall, the results provide evidence that, although customized pricing programs are often used to enhance consumer evaluations, they may not always be effective. This paper advances prior research by integrating important considerations for both pricing and customization strategies based on individual and situational differences in attachment orientations.     

True Context‐dependent Preferences? The Causes of Market‐dependent Valuations

A central assumption of neoclassical economics is that reservation prices for familiar products express people's true preferences for these products; that is, they represent the total benefit that a good confers to the consumers and are, thus, independent of actual prices in the market. Nevertheless, a vast amount of research has shown that valuations can be sensitive to other salient prices, particularly when individuals are explicitly anchored on them. In this paper, the authors extend previous research on single‐price anchoring and study the sensitivity of valuations to the distribution of prices found for a product in the market. In addition, they examine its possible causes. They find that market‐dependent valuations cannot be fully explained by rational inferences consumers draw about a product's value and are unlikely to be fully explained by true market‐dependent preferences. Rather, the market dependence of valuations likely reflects consumers' focus on something other than the total benefit that the product confers to them. Furthermore, this paper shows that market‐dependent valuations persist when – as in many real‐life settings – individuals make repeated purchase decisions over time and infer the distribution of the product's prices from their market experience. Finally, the authors consider the implications of their findings for marketers and consumers. Copyright © 2013 John Wiley & Sons, Ltd.     

Behavioral methods to reduce shoplifting

Shoplifting is a serious crime affecting most (if not all) retail businesses and responsible for increases in merchandise prices and customer services. Numerous methods exist to reduce shoplifting among consumers. The two most common types of shoplifting treatments either directly treat the shoplifter or attempt to prevent shoplifting through response prevention strategies in the retail environment. A critical review of the most common methods to reduce shoplifting reveal that case study research lacks appropriate experimental control to be convincing; and that the most promising strategies are those methods that attempt to prevent shoplifting in the retail environment. However, the more global response prevention methods could benefit if an account of the total volume of shoppers were controlled for thus providing a ratio of shoppers to opportunities to shoplift.     

Using public feedback to increase contributions to a multipurpose senior center

Multipurpose senior centers are expanding their services to meet the demands of a growing population. Unfortunately, federal agencies have not matched this expansion with monetary support. Many senior centers hold fund-raisers to supplement their budgets, but the impact of these projects is rarely evaluated. This study assessed the effectiveness of a public posting strategy designed to increase donations to an ongoing fund-raiser for a multipurpose senior center. The fund-raiser, "Coupons for Caring," consisted of senior volunteers clipping grocery coupons from newspapers, sorting them, and attaching them to their respective products in local grocery stores. Grocery store customers were given the option of donating the coupons to the senior center or redeeming them when they purchased the products to which the coupons were attached. In the experimental condition, signs were posted that included visual and written instructions, feedback on the value of coupons donated by customers the previous week, and feedback on the overall amount of money donated to the senior center. The signs were posted near each cashier stand and at the front entrances of the grocery stores in a multiple baseline across grocery stores. The percentage of coupons donated to the senior center increased at each store after the signs were posted.     

To Partition or Not to Partition: Role of Trade-in Price on Consumer Evaluations of Purchases Involving Trade-Ins

Many new purchases involve consumers trading in their old product at the same time, requiring them to assume the dual role of a buyer and a seller in the overall exchange. This research examines how framing the overall exchange as a partitioned transaction with separate prices for the new purchase and the trade-in, or a consolidated transaction with a single net price after accounting for the trade-in price, affects consumer preferences. We find that consumers prefer a partitioned (consolidated) transaction when the relative trade-in price is high (low). Unlike previous explanations based on heuristic processing and differential importance of the trade-in price, our reasoning is that partitioning (vs. consolidating) prices makes salient and enables evaluability of the trade-in price. In the absence of specific referents, consumers rely on the new purchase price to evaluate the merits of the trade-in price. Consistent with our reasoning, we identify boundary conditions for the findings. The presence of a favorable referent for the trade-in and whether the new purchase and the trade-in are (perceived to be) in the same product category attenuate the reliance on the new purchase price as a referent. Our findings have important theoretical and managerial implications.     

Religion,religiosity, and South Korean consumer switching behaviors

• This study investigated the relationship between religious affiliation and level of religiosity and consumer product‐ and store‐switching behavior among South Korean consumers. Comparisons in switching behavior are reported for three different denominational groups prevalent in South Korea (Buddhism, Catholicism, and Protestantism), non‐religious affiliated respondents, and among persons exhibiting different levels of religiosity. Religious affiliation, including non‐affiliation, was not found to be significantly related to switching behavior. However, consumers reporting high levels of religiosity were found to be significantly less likely to engage in product purchase‐ and store‐switching behaviors than those reporting lower levels of religiosity. Consumers reporting high levels of religiosity are also less likely to engage in product purchase switching behavior than non‐religious affiliated consumers (i.e., no religiosity consumers). This pattern held across denominations. Statistically significant differences in switching behavior were not obtained between consumers reporting low levels of religiosity and those respondents who expressed no religious affiliation.

Copyright © 2009 John Wiley & Sons, Ltd.     

A TALE OF TWO CLIMATES: DIVERSITY CLIMATE FROM SUBORDINATES' AND MANAGERS' PERSPECTIVES AND THEIR ROLE IN STORE UNIT SALES PERFORMANCE

Applying Zohar's (2000) multilevel model of organizational climate, this study assessed the main and interactive effects of subordinates' and managers' diversity climate perspectives on store sales performance. Across 654 store units of a large U.S. retail organization, we observed main effects of subordinate and managerial diversity climates on unit sales percentage change and a significant subordinate × manager diversity climate perspective interaction. The greatest sales growth was found in stores wherein subordinates and management perceived highly pro-diversity climates (positive consistency). In contrast, the lowest sales growth was evident for stores in which both subordinates and managers reported less hospitable diversity climates (negative consistency). Our findings underscore the positive financial ramifications of highly consistent perceptions that diversity is valued in a work context.