Issues in the Use of Ratings-based Versus Choice-based Conjoint Analysis in Operations Management Research

Conjoint analysis has played an important role in helping make a number of operations management decisions including product and service design, supplier selection, and service operations capacity. Many recent advances in this area have raised questions about the most appropriate form of conjoint analysis for this research. We review recent developments in the literature and provide new evidence on how the choice between ratings- and choice-based conjoint models might affect the estimates of customer demand used in operations management models. The biggest systematic difference between ratings-based (RB) and choice-based (CB) parameters is consistent with the compatibility effect, i.e., some enriched attributes like brand name tend to be more important in RB models and some comparable attributes like price are likely to be more important in CB models. Still, there were reasonably small differences between choice- and ratings-based parameters. Parameter similarity was also seen in the lack of differences both in the choice share validations when the ‘‘keep on shopping” alternative was not considered and in the profiles that were predicted to maximize choice shares. This suggests that the two approaches will produce similar estimates of the relative importance of various attributes. In spite of demonstrated success with each method, several reasons lead us to recommend the use of hierarchical Bayesian choice-based conjoint models. First, the slightly higher individual hit rate validations give us greater confidence in predictive accuracy overall as well as an increased ability to target individual customers. Additionally, the greater ease of modeling both changes in market size and competitive reactions are attractive benefits of choice-based models

La influencia de la responsabilidad social empresarial en el comportamiento de compra de los consumidores de jabones de tocador en la ciudad de Arequipa

La Responsabilidad Social Empresarial [RSE] ha adquirido relevancia real y tangible en el mundo. El Perú no es la excepción, entre nosotros han madurado a lo largo del tiempo en iniciativas de responsabilidad social empresarial, así como teorización del concepto mismo. Sin embargo, no hay estudios empíricos que permitan conocer su impacto en el consumidor. Por ello, esta investigación busca determinar la influencia que tiene en el comportamiento de compra de los consumidores de jabones de tocador en el ámbito de la ciudad de Arequipa. Para ello se desarrolló un experimento bajo la metodología de los Modelos de Elección Discreta a fin de cuantificar la intención de compra y la disposición a pagar por las acciones de responsabilidad social desarrolladas por las empresas. El experimento se llevó a cabo utilizando una muestra aleatoria estratificada de 132 consumidores residentes en la ciudad de Arequipa. La investigación brindó evidencia empírica de la relación positiva existente entre la Responsabilidad Social Empresarial y el comportamiento de compra de la muestra. Los resultados indicaron que el efecto de la Responsabilidad Social Empresarial en su conjunto es superior al de las Competencias Corporativas. Esta tesis es una ampliación de la investigación doctoral del profesor Percy Samoel Marquina Feldman titulada “La influencia de la responsabilidad social empresarial en el comportamiento de compra de los consumidores peruanos” (2009). Busca mostrar si la relación identificada originalmente por el profesor Marquina también se presenta en la categoría de los consumidores de jabones de tocador en la ciudad de Arequipa, tal como el autor lo recomienda en su tesis. Con la autorización del autor se ha utilizado partes de su tesis, particularmente las que se refieren a la revisión de la literatura y al método.Corporate Social Responsibility [CSR] has acquired real and tangible relevance in actual world. Peru is no exception; our country has matured over time in CSR initiatives as well as the internalization of the concept itself. However, there are not empirical studies to understand its impact on the consumer. Therefore, this research seeks to determine the influence on purchase behavior in Arequipa City. In order to quantify purchase intention and willingness to pay related to social responsibility activities performed by companies, we developed an experiment using discreet choice models methodology. The experiment was conducted using a stratified random sample of 132 consumers living in Arequipa City. This research provides empirical evidence of positive relationship between CSR and purchase behavior of the sample. The results indicate that the effect of Corporate Social Responsibility as a whole is greater than the Corporate Competencies. This thesis is an extension of doctoral research developed by Professor Percy Samoel Marquina Feldman entitled "The influence of corporate social responsibility on purchasing behavior of Peruvian consumers" (2009). It seeks to show whether the relationship originally identified by Professor Marquina also comes in the category of consumer soaps in Arequipa city, as recommended in his thesis. With author permission, we have used parts of his thesis, particularly those related to literature and method review.Tesi

Customer Service Retention – A Behavioural Perspective of the UK Mobile Market

Abstract Customer retention is essential for firms in the service sector and will subsequently receive a great deal of attention in the coming years. A large majority of firms are losing their current customers at a significant rate. UK operators lose over a third of their subscribers every year in spite of incurring large customer acquisition and retention expenditures. A study of customer retention from a variety of angles, including economic, behavioural and psychological perspectives, was rigorously carried out. It has been found that a majority of scholars explain customer retention from a behavioural perspective by using unrelated or indirect factors such as trust and commitment, price terms, and loyalty terms. It has also been noted that previous studies lack a clear theoretical background and a solid empirical proof to support their findings of customer operant retention behaviour. This study approaches the customer retention problem in the mobile phone sector from a behavioural perspective, applying the Behavioural Perspective Model as the main analytical framework. The model includes a set of pre-behaviour and post-behaviour factors to study consumer choice and explains its relevant drivers in a viable and comprehensive way, grounded in radical behaviourism. Many data collection methods were used to collect data from the study sample, including mobile contracts content analysis techniques, customer focus groups, and, principally, a customer survey supported by interviews with a number of managers. The data were analysed using different regression measurements to test the study model, and the propositions were constructed and tested quantitatively and discussed qualitatively. Analysis revealed that a customer will buy a mobile telecommunication package and engage in a long-term relationship with a supplier whom he or she believes will honour the relationship’s functional and emotional benefits; the consumer will be expecting to obtain such benefits when he/she buys, consumes, and has a positive experience of both the purchased object and the seller

Consumer decision making in restaurant selection

The aim of this study was to investigate consumers’ decision of selecting a restaurant for leisure. It was based on research carried out in the South East of the UK. In line with the cognitive paradigm the importance of attributes was approached from the theoretical perspective of utility theory in which consumers pursue maximisation of benefits from the service which they are evaluating. This study follows a sequential mixed methods approach. It consists of a qualitative stage followed by a quantitative stage, each one adhering to the precepts of their own paradigms. The qualitative stage was based on data collected through six focus groups of four to six respondents. An interview guide was used in semi-structured settings and data was analysed using applied thematic analysis. The second stage employed an online survey generating quantitative data from 376 respondents. The theme of ‘eating out occasion’, such as a romantic dinner, was a key element of the decision-making process. This thesis presents a framework for examining the different stages of the decision using the stylised Engels, Kollat and Blackwell (EKB) model (Tuan-Phan and Higgins, 2005). Its stages delve into the influence of emotions, motivations and the consumer’s regulatory focus in the decision. The methodological design with the possibility of selecting attributes, emerging from the qualitative stage, offers a contribution to the use of conjoint analysis for complex decisions. The study also proposes a new typology of restaurant attributes, with seven categories influencing perceived consumer value. The study’s findings further indicate that price is a factor influencing the expectations from the other attributes. The study considers a number of implications for the industry, such as, the importance of service and consumers’ willingness to pay more for a service that is friendly, welcoming and attentive. It also suggests many areas for further research

Re-Purchase Intention for Product-Service Systems: The Impact of Co-Capability in Value Creation

Pre-sale activities of buying and post-sale activities of use are separated by time and judged in two time-place forms. Exchange value being one kind of judgment of desirability, separate from use value. However, traditionally marketing has not fully captured the co-creation of value in use, or therefore, how it affects the perceived value of the offering at purchase. The separation of purchase and use has been shown to create buyer uncertainty at the point of purchase about the future value created in use. Consider the decision to buy a service support contract for capital equipment in which the act and experience of use could continue for up to ten years after the decision to buy. At purchase, buyers may not be certain about the future state of use, i.e. whether or not equipment will fail, or indeed how the service will perform in the event of failure. While uncertainty about the state of use will continue across time, it has been argued uncertainty about how the service will perform may be resolved through repeat use or interaction. Through an exploratory case and a web-based survey of 95 organisational buyers of Product Service Systems (PSS) in capital equipment markets, this thesis finds customer-provider co-capability, which facilitates service performance in use, mediates the customer’s perceived risk of re-purchasing. As a result, this thesis makes a contribution to B2B marketing in identifying how value of the offering at purchase is affected by future customer-provider co-capability in use

Proposal of a web site engagement scale and research model. Analysis of the influence of intra web site comparative behaviour

A Web site engagement scale is suggested that serves as the basis of a two part-model. The first part studies the influence of the online comparative behaviour of consumers on Web site engagement using data obtained from respondents that selected a holiday package on an online travel agency capable of remotely tracing and recording their intra-Web page and intra-Web site behaviour. The second part of the model studies the influence of Web site engagement on consequences highly relevant for online marketers. The results confirm that the Web site engagement construct has five dimensions: positive affect, focused attention, challenge, curiosity and involvement. Likewise antecedents and consequences of Web site engagement are confirmed. The model is estimated with partial least squares path modelling (PLSPM).En esta investigación se propone una escala de “enganche con sitios Web” que sirve de base para un modelo con dos partes. En la primera parte se estudia la influencia del comportamiento comparativo online de consumidores utilizando datos obtenidos a partir de encuestados que escogieron un paquete vacacional en una agencia de viajes online capaz de registrar remotamente el comportamiento intra-página Web e intra-sitio Web. En la segunda parte del modelo se estudia la influencia del constructo enganche con sitios Web sobre consecuencias de relevancia para online marketers. Los resultados confirman que el constructo enganche con sitios Web tiene cinco dimensiones: afecto positivo, atención centrada, curiosidad, implicación y reto. Asimismo se confirman antecedentes y consecuencias de este constructo. La metodología de estimación se basa sobre modelización estructural con partial least squares path modelling (PLSPM)