165 research outputs found
Can consumer privacy concern be a thorn for loyalty programs?
Every day, large amounts of personal information are collected by private companies from consumers through multiple sources. Loyalty programs are one of the most popular tools, used to gather such information. Information that is used to offer more personalised options and to target more effectively their promotions. However, many consumers are still attracted to such programs because of the rewards and other benefits offered. Privacy concerns over loyalty programs seem to take their toll. According to a Colloquy (2015) report the numbers of active members is dropping and one of the main reasons cited in the report is privacy concerns. Declining numbers and increased privacy concerns raise the question of how concerned consumers appreciate the benefits offered by loyalty programs and how their satisfaction and loyalty are affected. Apparently, loyalty programs cannot always guarantee loyalty (Nielsen, 2013) as a large portion of consumers demand better protection of their privacy (Madden, 2014) and decline to subscribe to such programs over privacy concerns (Maritz, 2013). The objectives of this study are firstly to examine the underlying reasons behind consumers’ privacy perceptions and secondly to investigate how such perceptions alter consumers’ appraisal of the benefits offered by the loyalty program as well as satisfaction with the program and consumer loyalty. Based on a review of the relevant literature a set of testable hypotheses was developed.
To test the hypothesised relationships, survey data were collected from a sample of 984 consumers through an online panel in US. Structural Equation modelling and mediation analysis were the main statistical techniques used. Analysis revealed a strong effect of privacy perceptions on both the perceived value of the program’s benefits and satisfaction with the program. Results suggested that retailers should place more emphasis on the perceived control of information rather than trying to soften consumers perceptions of the risks related to privacy. Additionally the total effects of perceived privacy to both satisfaction with the program and loyalty are substantial and cannot be ignored by practitioners. One implication is that companies should provide clearer privacy policies, more transparency and more power to their customers. The loyalty program benefit perceptions that are affected more by information control and perceived risk are the symbolic and hedonic benefits. Utilitarian benefits appear to be affected to a lesser extent. In general it was revealed that the total impact of hedonic and symbolic benefits on customer loyalty is significantly higher than that of the utilitarian benefits. Hence, practitioners should look carefully on the structure of the hedonic and symbolic benefits in conjunction to their consumer privacy policy
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Explaining Inconsistencies in Implicit and Explicit Attitudes towards Domestic and Foreign Products
Purpose
This article examines the inconsistency of explicit and implicit domestic country bias (DCB) across different types of products and in the context of two countries.
Design/methodology/approach
Two studies in two countries are conducted to examine the inconsistencies in implicit and explicit DCB. The first study collected data through mall intercept survey method in Taiwan and identified 189 valid respondents. The second study applied a mixed (within and between subjects) factorial experiment in China using 200 subjects
Findings
Results show that explicit and implicit attitudes are moderately related to each other. It also confirms that ethnic product typicality can explain inconsistencies in both explicit and implicit DCB. For ethnically typical products, domestic country bias is more pronounced in consumers’ explicit attitudes than in consumers’ implicit attitudes. On the contrary, for ethnically atypical goods, domestic country bias makes itself present in both explicit and implicit attitudes.
Originality/value
The results shed new light on domestic country bias and confirm that the bias could divaricate between explicit and implicit attitudes in the case of ethnically typical products
The relational value of loyalty programs in luxury retailing
In the last decade loyalty programs have gained popularity across various industries. However and until recently, it was debatable if loyalty programs can be effective and appropriate in luxury retailing. If loyalty programs were to succeed in the luxury sector they had to deliver the kind of recognition and rewards that make luxury shoppers feel remarkable. Thus, this study examines how the utilitarian, hedonic and symbolic perceived benefits from loyalty programs can influence the satisfaction and trust with the program and consequently store loyalty. These relationships are compared between luxury and low-end retailers through data collected form a sample of 984 consumers from an online panel in US, using a structured questionnaire. Findings support that the effectiveness of loyalty programs is important to both settings but the strength of this effectiveness varies across the two settings. Specifically, hedonic and symbolic benefits found to be more important in the luxury context and utilitarian benefits in the low-end retailing setting. The results of this research address an important research gap and help to better understand customers' perceptions of loyalty program benefits. Finally, findings provide clear guidelines for managers in luxury retailing on how to design effectively their loyalty program rewards
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Alignments and misalignments of realized marketing strategies with administrative systems: Performance implications
On the basis of intended marketing strategy plans, firms design administrative systems to support strategy implementation. In increasingly turbulent business environments-characterized by complexity, scarce resources, and escalating competitive opportunities and threats-firms are forced to alter intended and realize emergent strategies more frequently than ever before. The eventualities of realized marketing strategies may lead to misalignments between the strategy and the existing administrative system designed to support it. To examine performance implications of such misalignments we use Slater and Olson's (2001) taxonomy of marketing strategies. We distinguish between intended and realized plans and we propose an administrative system framework of structural (i.e., centralization, formalization, and specialization) and dynamic (i.e., interdepartmental connectedness and strategic control mechanisms) parameters for the effective implementation of realized strategies. We propose three-way interactions between realized marketing strategies and the dynamic parameters of the system. Research hypotheses on performance implications and responses from 215 marketing executives show performance differences across strategy types and (mis)alignments of the administrative system. Our findings confirm three-way interactions among strategy types, interdepartmental connectedness, and control mechanisms for all realized strategy types
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The influence of a country's brands and industry on its image
Purpose
Extant research has largely treated country image (CI) as an exogenous variable, focusing mostly on its consequences for consumers’ evaluations and purchases of products or brands originating from a country. Scant research has examined the instrumental role of a country’s brands and products in the evaluations of CI. This study aims to investigate how the brands of a country contribute to CI ratings and the conditions underlying their effect on CI.
Design/methodology/approach
Three experimental studies test the hypotheses, one pertaining to the effect of brands on CI (N = 227), the second to the effect of products on CI (N = 116) and the third to the effect of brands and products on industry image (N = 215). The experimental approach overcomes the limitations of cross-sectional surveys commonly used in CI studies to detect the direction of the observed effects. Furthermore, respondents (British consumers) were allowed to determine the brands and products associated with a country.
Findings
Drawing on memory schema theory, across three studies, the authors identify two types of reverse inferences: from brand to CI and from product category to CI. The reverse inference from a brand to a superordinate image is stronger for industry image than for CI.
Research limitations/implications
This research focuses on consumers’ evaluations from only one country (the UK). Further research could replicate the studies across different countries and with different countries of origin (COOs). Researchers could also examine the influence of brands misidentified with the wrong COO and mistakenly stored as such in consumers’ memories.
Practical implications
The results are relevant for managers and consultants working with country- (place-) branding campaigns. Brands and industries can help strengthen the evaluations of the economic dimension of different countries; however, these assets are underdeveloped in country-branding campaigns. Linking countries with brands and industries in campaigns could result in positive associations, which, in turn, could enhance the reputational rating of the countries.
Originality/value
This research extends previous studies on the effects of a country’s products and brands on CI by incorporating the mediating role of industry image between brands/products and CI, separating the effects of brand and product category on CI, allowing consumers to determine, which brands and products are associated with a country and adopting an experimental methodology to ascertain the causal direction of the effects
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Under the influence of a blogger: The role of information-seeking goals and issue involvement
Bloggers in the post-modern era can influence the behaviour of consumers and alter their perceptions. The current study looks at the blogger influence phenomenon from a different theoretical perspective than existing literature did. By combining information behaviour and communication theory, it proposes a new conceptual framework by relying on the characteristics of the blogger, the blog content, motivation and goals of information seeker. In this model, information seekers’ objectives and issue involvement are important drivers of blog selection and determinants of the blog’s influence. The framework was empirically tested in a sample of American users of beauty blogs. The results provide a confirmation of the postulated relationships. Three types of blog visits are identified and their effects and their attributes that make a blog influential are examined
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Country image appraisal: More than just ticking boxes
Current academic research almost unquestionably adopts an attitudinal measurement approach to assess the image of a country using standardized rating scales. This study revisits the image construct and proposes an alternative approach for assessing country image based on psycholinguistics and associative networks. With this approach, new country image attributes emerge that enhance the information provided by traditional attitudinal measures. In particular, the concreteness, imageability, semantic richness and emotionality of a country's image serve as a supplementary dimension to the attitudinal and associative network approaches. The study empirically compares the two perspectives using a random sample of consumers. The results show a lack of correspondence between the two and highlight the benefits and limitations of each approach
Consumer perceptions of co-branding alliances: Organizational dissimilarity signals and brand fit
This study explores how consumers evaluate co-branding alliances between dissimilar partner firms. Customers are well aware that different firms are behind a co-branded product and observe the partner firms’ characteristics. Drawing on signaling theory, we assert that consumers use organizational characteristics as signals in their assessment of brand fit and for their purchasing decisions. Some organizational signals are beyond the control of the co-branding partners or at least they cannot alter them on short notice. We use a quasi-experimental design and test how co-branding partner dissimilarity affects brand fit perception. The results show that co-branding partner dissimilarity in terms of firm size, industry scope, and country-of-origin image negatively affects brand fit perception. Firm age dissimilarity does not exert significant influence. Because brand fit generally fosters a benevolent consumer attitude towards a co-branding alliance, the findings suggest that high partner dissimilarity may reduce overall co-branding alliance performance
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