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1 – 2 of 2Doreén Pick and Stephan Zielke
Governmental regulations aiming to protect environmental goals often require firms to increase sales prices with negative consequences on price fairness perception. Companies…
Abstract
Purpose
Governmental regulations aiming to protect environmental goals often require firms to increase sales prices with negative consequences on price fairness perception. Companies might therefore either justify the price increase by highlighting the good cause (environmental framing) or they could blame the government for the regulation (governmental framing). Firms might also communicate their investments in the relationship to motivate customers to stay. This paper aims to examine the impact of such communication content on price increase fairness perception and switching intention in a contractual service setting.
Design/methodology/approach
This paper first examines the content of 119 price increase letters from electricity suppliers in a qualitative pilot study. The main study then tests our research framework with 552 respondents using a 2 x 2 x 2 between-subjects experimental scenario design (manipulating framing, effort and regret communication).
Findings
Customers perceive governmental framing as fairer than environmental framing. Effort and regret communication by firms weaken or reverse this effect. They reduce customers’ fairness perception for the governmental framing, while regret communication increases it for the environmental framing. However, regret communication also increases switching intention in both framings through a strong direct effect.
Research limitations/implications
Cost-induced price increases are perceived on a “locus continuum” on which reason-framing and relationship investments can shift the consumer perception. Future studies may apply our framework in different industries and contexts.
Practical implications
The results provide guidelines for communicating price increases. Firms should prefer a governmental framing and they should also hesitate to communicate relationship investments, which signal internal locus of the firm, such as effort or regret.
Originality/value
Our results question the naive assumption of general positive effects of environmental framings and relationship investments on customer responses. Based on a new view on attributions of cost-caused price increases, we suggest and find several counterintuitive results. We argue that the framing and relationship investments shift the cause perception of an external cost increase on the attributional locus continuum.
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Richard W. Puyt, Finn Birger Lie and Dag Øivind Madsen
The purpose of this study is to revisit the conventional wisdom about a key contribution [i.e. strengths, weaknesses, opportunities, threats (SWOT) analysis] in the field of…
Abstract
Purpose
The purpose of this study is to revisit the conventional wisdom about a key contribution [i.e. strengths, weaknesses, opportunities, threats (SWOT) analysis] in the field of strategic management. The societal context and the role of academics, consultants and executives is taken into account in the emergence of SWOT analysis during the 1960–1980 period as a pivotal development within the broader context of the satisfactory, opportunities, faults, threats (SOFT) approach. The authors report on both the content and the approach, so that other scholars seeking to invigorate indigenous theories and/or underreported strategy practices will thrive.
Design/methodology/approach
Applying a historiographic approach, the authors introduce an evidence-based methodology for interpreting historical sources. This methodology incorporates source criticism, triangulation and hermeneutical interpretation, drawing upon insights from robust evidence through three iterative stages.
Findings
The underreporting of the SOFT approach/SWOT analysis can be attributed to several factors, including strategy tools being integrated into planning frameworks rather than being published as standalone materials; restricted circulation of crucial long-range planning service/theory and practice of planning reports due to copyright limitations; restricted access to the Stanford Research Institute Planning Library in California; and the enduring popularity of SOFT and SWOT variations, driven in part by their memorable acronyms.
Originality
In the spirit of a renaissance in strategic planning research, the authors unveil novel theoretical and social connections in the emergence of SWOT analysis by combining evidence from both theory and practice and delving into previously unexplored areas.
Research implications
Caution is advised for scholars who examine the discrete time frame of 1960–1980 through mere bibliometric techniques. This study underscores the risks associated with gathering incomplete and/or inaccurate data, emphasizing the importance of triangulating evidence beyond scholarly databases. The paradigm shift of strategic management research due to the advent of large language models poses new challenges and the risk of conserving and perpetuating academic urban legends, myths and lies if training data is not adequately curated.
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