The Selection of Freebies and the Preference for Freebie Promotions—A Perspective on Item Characteristics

Research on consumer decision making has mainly focused on individual products; however, many products are purchased with other items as part of a promotional package. This paper explores how the characteristics (hedonic versus utilitarian) of the items in freebie promotional packages (e.g., buy one item and get a different item for free) influence consumers' preference for the promotional package. Additionally, the authors examine how the characteristics of the focal item influence consumers' choice of either a hedonic or a utilitarian freebie item. Five experiments, rooted in the concepts of consumer avoidance of overloading negative emotions and motivation to seek hedonic pleasure, show that a package with one utilitarian and one hedonic item generates higher purchase intentions and willingness to pay than a package with either two hedonic or two utilitarian items. Furthermore, consumers who purchase a hedonic (utilitarian) focal item are more likely to choose a utilitarian (hedonic) freebie. These effects exist not only in hypothetical scenarios but also in an incentive‐compatible design. Moreover, the impact of the focal item characteristics on consumer choice of freebie is moderated by acquisition format and time separation. The authors also explore the internal mechanism influencing consumers' freebie choices. The findings have significant implications for both theory and practice. Copyright © 2016 John Wiley & Sons, Ltd.     

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.     

Regulatory focus and preference reversal between hedonic and utilitarian consumption

This article explores the impact of consumers' regulatory goals on their relative focus on hedonic (versus utilitarian) benefits of products. Drawing from extant literature, we argue that promotion‐focused consumers will exhibit more favorable attitude towards a product when its hedonic benefits are highlighted in comparison to its utilitarian benefits. Prevention‐focused consumers on the other hand will exhibit more favorable attitude towards a product when its utilitarian benefits are highlighted in comparison to its hedonic benefits. We further argue that this effect is moderated by contextual factors, such as evaluation mode. In addition, we argue that the posited difference only holds when the hedonic and utilitarian products are evaluated individually. When the two products are evaluated jointly, both promotion and prevention‐focused individuals will exhibit more favorable attitude towards the hedonic product. Two studies were conducted to test the hypotheses and findings supported our predictions. Copyright © 2011 John Wiley & Sons, Ltd.     

Promoting Consumer Adoption of High‐Technology Products: Is More Information Always Better?

An important challenge for firms commercializing technology‐based new products is to reduce consumers' perceptions of performance uncertainty. We build on prior research in consumer decision making and acceptance of high‐technology products and focus on the role of information in influencing perceptions of performance uncertainty of new product interfaces. In contrast to prior literature, we show here that more information is not always better in reducing performance uncertainty. We argue that the effects of more (vs. less) information on the performance uncertainty of a new interface and consumer adoption intentions of the new product are moderated by the degree of newness of the particular functionality (i.e., set of potential benefits) that is delivered by the new product. We report two experiments that investigate this problem and show that more information helps to reduce performance uncertainty only when the product provides a preexisting functionality. However, high levels of information about the new interface actually intensify performance uncertainty when the product delivers a new functionality. We conclude with a discussion of the theoretical and managerial implications of the findings.     

Confidence via correction: The effect of judgment correction on consumer confidence

At times, consumers are motivated to reduce the influence of a product recommendation on their judgments. Based on previous research, it is unclear whether this correction process will increase or decrease consumers' confidence in their judgments. We find that source credibility moderates the effect of correction on confidence: correction decreases confidence when a product recommendation comes from a high credibility source but increases confidence when the same message comes from a low credibility source. As a result, correction increases the effectiveness of recommendations from low credibility sources on purchase intentions. Notably, this “confidence via correction” effect is further moderated by elaboration, such that the effect is attenuated for high elaboration consumers. Our results have implications for understanding consumers' reactions to persuasive messages and for both marketing practitioners and consumer protection agencies using correction cues to influence message persuasiveness.     

The influence of targeted digital advertising on consumers' purchase intention: Comparative analysis based on the perspective of ads content source

Targeted digital advertising (TDA) is immensely popular among marketing practitioners; investigating its effects is increasingly becoming a subject of academic research. Brands can push advertisements of the same product from different sources to consumers in a targeted manner; however, the differences in the impact on consumers of TDA with different content sources are surprisingly understudied. Therefore, this study analyzes the consumers' purchase intentions in the context of TDA with different content sources (stars vs. bloggers vs. top e-commerce streamers), and the perceived differences between consumers with different thinking styles. Through two experimental studies, this study finds that TDA with top e-commerce streamers' recommendation source can better improve consumers' purchase intentions more than TDA with a star endorsement and TDA with a blogger evaluation. For consumers who prefer the rational thinking style, TDA with a star endorsement and TDA with top e-commerce streamers recommendation can be better; For consumers who prefer the empirical thinking style, TDA recommended by bloggers and TDA with top e-commerce streamers recommendation can be better. Furthermore, this study finds that consumers' mental simulation and perceived usefulness can mediate the relationships described above, and that the two play a chain mediation role. The findings contribute to the precision marketing literature by enriching the understanding of the psychological mechanism underlying consumers' perceptions of and decision factors toward the TDA.     

The effects of affective and cognitive elaborations from Facebook posts on consumer attitude formation

This research investigates the effects of affect and cognition in consumers' information processing of branded content on Facebook pages. A model was suggested to delve into the elaboration process leading to consumer attitude formation. A 2 (purchase‐decision involvement: low versus high) × 2 (product categories: hedonic versus utilitarian) × 2 (sources of Facebook posts: brand posts versus consumer posts) between‐subjects experiment was conducted online. The validated model demonstrates the main effects that affective elaboration significantly supersedes cognitive elaboration in forming attitudes toward the posts and attitudes toward the brand. Post hoc analyses show further evidence of the interaction effects that affective elaboration is the dominant influencer when consumers process brand‐related information in Facebook posts across situations. Theoretical implications for future research and managerial suggestions for social media marketing are discussed. Copyright © 2015 John Wiley & Sons, Ltd.     

Helpfulness and economic impact of multidimensional rating systems: Perspective of functional and hedonic characteristics

Nowadays, the multidimensional rating systems are increasingly popular in practice to help consumers evaluate multiattribute products or services. This study aims to examine the helpfulness and economic impact of multidimensional rating systems and the moderating effect of product type (ordinary, premium) from the perspective of product line. To identify the different effects of different product characteristics on consumers' behavior, multidimensional ratings and textual reviews are classified into two different sets according to the product attributes (functional, hedonic). Besides, the effects of review valence are considered simultaneously. Econometric analysis and text mining are conducted on the real data from autohome.com , a leading Chinese automobile rating platform. Results show that (a) in terms of perceived helpfulness, reviews with positive functional ratings or with negative hedonic ratings are perceived more helpful for ordinary product, whereas reviews with positive hedonic ratings are perceived more helpful for premium product. (b) Regarding product sales, the impacts of functional and hedonic ratings on product sales are inverted U‐shape. Furthermore, for ordinary product, variance of functional ratings has a negative effect on product sales, whereas hedonic ratings variance has an opposite impact. Surprisingly, ordinary product consumers tend to pay more attention to the negative hedonic reviews, whereas premium product consumers concentrate more on the negative functional reviews. In summary, various influences of multidimensional reviews and ratings across product type on review helpfulness and product sales are deeply explored in this study, suggesting that firms' online marketing strategies should be contingent on product type and characteristics.     

The need to have an opinion as a driver of consumer choice

This research proposes that the need to have an opinion can make consumers choose less preferred options. We review literature from several disciplines indicating that holding opinions is an automatic human response associated with adaptive psychological benefits. We then theorize that when this need is activated in any domain, it can have carry‐over effects even in unrelated domains by inducing an inquisitive choice mindset and expanding consumers' consideration sets. This proposition rests on the assumption that less preferred options offer a higher experience utility, which can better satisfy the need to form opinions on a wider range of topics. Three experiments with diverse consumer and non‐consumer choices as well as various operationalizations and methodologies provide empirical evidence that priming the need to have an opinion makes consumers less likely to make choices based on their stated preferences. These results suggest that the need to have an opinion can affect consumer decision‐making in predictable and systematic ways by encouraging preference‐inconsistent choices. Theoretical and managerial implications are discussed. Copyright © 2014 John Wiley & Sons, Ltd.     

What goes around comes around: The integrated role of emotions on consumer ethical decision‐making

The current study aims to further our understanding of the integrated role of emotions on consumer decision‐making involving ethical issues, by considering the influence of both positive and negative emotions on ethical decision‐making process. It considers not only the emotions experienced prior to ethical decision‐making (pre‐decision emotions) but also those resulting from the course of action chosen (post‐decision emotions). Scenarios are used, and the results of the structural modelling analyses support the proposed relationships between current emotions, consumers' ethical decision‐making, post‐decision emotions and future ethical behavioural intentions. The data suggest the possible existence of a “virtuous ethical cycle”, whereby positive emotions lead to more ethical consumer decisions and behaviours; and these in turn lead to more positive (post‐decision) emotions, which have a positive and significant effect on future ethical behavioural intentions. In addition, happiness emerges as exerting a pivotal role in predicting consumer ethical decisions.     

Effects of awe on consumer preferences for healthy versus unhealthy food products

This research investigates how a discrete positive emotion (awe) impacts consumers' decisions on food choices. We probe and demonstrate that the experience of awe enhances consumer preferences for healthy versus unhealthy products. In a series of three studies, we find that awe, compared with a neutral emotion, increases consumers' likelihood to choose healthy products over unhealthy products (Study 1). Consumers' processing styles drive the observed awe effect (Study 2), whereby awe increases reliance on analytic processing, which leads to preferences for healthy products. Moreover, the experience of awe exerts a stronger influence on product choices among consumers with a chronic intuitive rather than analytic processing style (Study 3). Theoretical contributions to the research on awe, information processing, and healthy food preference, as well as practical implications for consumers and marketers, are discussed.     

An fMRI study of advertising appeals and their relationship to product attractiveness and buying intentions

This study examines the effects of various visual apparel advertisements on consumers' brain activation during exposure to different types of advertising appeals (i.e., celebrity, non‐celebrity, and rational). The influence on consumer perceptions of products and their subsequent buying intentions are also measured. A repeated measures experimental design was employed, and the total of 27 right‐handed female subjects participated in the study. The results of the quantitative data showed significant differences in perceived product attractiveness for each of the three types of advertising appeals, but not in buying intentions. Regarding the fMRI results, our findings support the notion that celebrity advertising appeals are associated with heightened brain activation of memory‐related/retrieval regions, reflecting how consumers remember the ad and are influenced by the attractiveness of the source. Non‐celebrity advertising appeals were more closely associated with brain activation of regions thought to mediate self‐reflection and also engaging executive functions. For rational advertising appeals, our findings showed significant activation in brain areas associated with logical evaluative decision making reflecting more logical processing value assessments and reward potential. Therefore, retailers/marketers must be particularly mindful to match the appropriate advertising appeal to the specific purpose of the advertisement. This study also provides brain‐based insight into the effectiveness of different types of advertising appeals and whether or not they have the desired impact on the consumer. Copyright © 2016 John Wiley & Sons, Ltd.     

Gender differences in German consumer decision‐making styles

Males and females want different products and they are likely to have different ways of thinking about obtaining these. This study furthers an understanding of how gender affects consumers' approaches to decision making. The research used Sproles and Kendall's (1986) consumer styles inventory (CSI) on a sample of 358 German males and females. Although all seven German decision‐making characteristics found in a previous German study could be confirmed for females, only four could be confirmed for males, raising the question of whether the CSI is equally valid for both genders. Tentative support was found for five new male factors, namely satisfying, enjoyment‐variety seeking, fashion‐sale seeking, time restricted and economy seeking. The results imply that the CSI has construct validity for females, but appears to be less valid for males. Copyright © 2004 Henry Stewart Publications.     

Help or hinder? When recommendation signage expands consideration sets and heightens decision difficulty

This research examines whether recommendation signage helps or hinders the consumer when faced with choosing from large product assortments. In spite of frequent usage and retailer intuition suggesting that providing recommendation signs (e.g., “Best Seller,” “Award Winner”) should help consumers in the choice process, we propose that signs can hinder choice for consumers with more developed preferences by adding to the complexity and difficulty of the decision process. In three experiments using horizontally differentiated products in multiple categories, we provide evidence that recommendation signs create preference conflict for consumers with more developed preferences, leading these consumers to form larger consideration sets and ultimately experience more difficulty from the decision-making process. In addition, we show that these effects are mitigated for consumers with less developed preferences and when the choice is from a small assortment. The results suggest that recommendation signage may not be an effective tool for aiding choice from large assortments; instead signage can exacerbate the difficulties associated with having too many choices, with implications on purchase quantity.     

A reinforcement learning approach to personalized learning recommendation systems

Personalized learning refers to instruction in which the pace of learning and the instructional approach are optimized for the needs of each learner. With the latest advances in information technology and data science, personalized learning is becoming possible for anyone with a personal computer, supported by a data-driven recommendation system that automatically schedules the learning sequence. The engine of such a recommendation system is a recommendation strategy that, based on data from other learners and the performance of the current learner, recommends suitable learning materials to optimize certain learning outcomes. A powerful engine achieves a balance between making the best possible recommendations based on the current knowledge and exploring new learning trajectories that may potentially pay off. Building such an engine is a challenging task. We formulate this problem within the Markov decision framework and propose a reinforcement learning approach to solving the problem.     

An ethnographic study of consumer financial sophistication

Existing research profiling consumer financial sophistication has examined specific decision errors that consumers may make in financial matters. While these errors have been replicated in multiple studies over the years, most have emerged from highly controlled experimental settings or through consumer surveys that measure only specific categories of financial behavior. This paper extends existing research on financial sophistication by utilizing an ethnographic study conducted over a 5‐year time period. Results indicate that while some of the traditional categories of decision errors defined in earlier research affect consumers, decision errors not thoroughly examined in previous academic studies can have a notable and growing effect on consumers' financial decisions. Emerging categories of financial decision errors are identified, and shifts in consumers' financial behavior resulting from the financial crisis are profiled. Copyright © 2014 John Wiley & Sons, Ltd.     

I want it and I want it now: Using a temporal discounting paradigm to examine predictors of consumer impulsivity

This paper proposes a new model of consumer impulsivity, using type of good, a person's endorsement of materialistic values, and identity deficits as predictors. Traditional decision making and psychological accounts see impulsive behaviour as a general overweighing of short‐term gratification (I want that dress now) relative to longer‐term concerns, irrespective of consumer good. Our proposal is that consumers' impulsivity (a) differs according to type of good and (b) is linked systematically to a combination of materialistic values and high identity deficits. Beginning with Study 1, three experiments, using a temporal discounting paradigm, show consistently that discount rates are higher for goods that are seen as highly expressive of identity (e.g., clothes) than goods not expressive of identity (e.g., basic body care products). For materialistic consumers, identity deficits predict discount rates for identity‐expressive goods (Study 2), and discount rates change for materialistic individuals when their identity deficits are made salient (Study 3). These findings support a conceptualization of consumer impulsivity as identity‐seeking behaviour.     

When consumers own their work: Psychological ownership and consumer citizenship on crowdsourcing platforms

The growth of crowdsourced platforms for consumer products has opened many interesting research questions on the impact of consumers participating in such crowdsourced work. In this paper, we focus on consumers' psychological ownership of the crowdsourced product and the role it plays in the relationship between consumer work and consumer citizenship. Further, drawing on social comparison theory, we show that consumers' perceived amount of work relative to others is a boundary condition for this explanation. Finally, we examine the theoretical contributions and managerial implications of our findings.     

Religiosity and consumer belonging: Influences on product evaluations

Consumers have a fundamental need to belong. Prior research has examined the compensatory mechanisms that consumers use to restore belongingness when they have a low sense of belonging. However, research has yet to adequately understand the influence that having a high sense of belonging has on consumption behavior. Thus, three studies are conducted to address this gap in the literature, specifically examining religiosity as a source of consumers' high sense of belonging. Study 1A identifies that religiosity positively influences consumers' sense of belonging and corresponding product evaluations because belongingness creates a positive affect state. This affect then incidentally transfers a positive halo effect to product evaluations. Study 1B replicates the sequential mediation from Study 1A but only for those products that are value expressive. Studies 2 and 3 then better isolate these effects by priming religion (Study 2) as well as general social acceptance and rejection (Study 3). Findings reveal that only religion and acceptance primes influence consumers' sense of belonging and product evaluations. Discussion builds on need‐to‐belong theory and implications for marketing practice are discussed.     

Consumer Trust and Advice Acceptance: The Moderating Roles of Benevolence,Expertise, and Negative Emotions

I explored advice acceptance for high‐stakes decisions (i.e., those with subjectively important and risky outcomes), focusing on the relative influence of two components of consumer trust—benevolence and expertise—as well as perceived emotional decision difficulty. Participants solicited advice from experts when their decisions were low in perceived emotional difficulty but favored the advice of predominantly benevolent providers when making highly emotionally difficult decisions. Although consumers who faced emotionally difficult decisions were willing to trade off expertise for benevolence, they did not perceive this non‐normative trade‐off to influence decision quality. Instead, the results support a “stress buffering” effect whereby consumers were more confident in the accuracy of predominantly benevolent providers’ advice.