Gerard Paul Prendergast and Alex S.L. Tsang
Consumers are becoming increasingly socially conscious when making their purchasing decisions, which in turn is providing an incentive for firms to integrate social responsibility…
Abstract
Purpose
Consumers are becoming increasingly socially conscious when making their purchasing decisions, which in turn is providing an incentive for firms to integrate social responsibility considerations into their product offerings. Explaining the various categories of socially responsible consumption (SRC) is therefore important. The purpose of this paper is to explain the various categories of socially responsible consumption.
Design/methodology/approach
Grounded in the theory of planned behavior (TPB), this paper surveyed a sample of 1,202 Hong Kong consumers.
Findings
The findings indicate that attitude towards the behavior, subjective norms and perceived behavioral control are all significant predictors of three categories of SRC (i.e. intention to purchase from firms based on their CSR performance, intention to practice recycling and intention to try to avoid or minimize their use of products based on their environmental impact). Intention to engage in SRC was then shown to be a significant predictor of SRC behavior.
Research limitations/implications
This paper relied on only the single-factor test as a measure of socially desirable responding. Furthermore, while the quota sampling was designed for broad representativeness, it is difficult to verify if the well-controlled quota controls entirely removed the possibility of a biased selection of respondents within each cell.
Practical implications
Recommendations are made for public policy-makers and marketers to devise ways to shape consumer behavior to facilitate more responsible consumption.
Originality/value
Previous research relating to SRC has not explained the various categories of SRC and often failed to test the relationship between intention and behavior, representing a considerable gap in the literature. This paper applied the theory of planned behavior (TPB) to explain intention and behavior with regards to the various categories of SRC.
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Three key self‐service technologies exist in banking in NewZealand: ATMs (automatic telling machines), EFTPoS (electronic fundstransfer at the point of sale), and telephone…
Abstract
Three key self‐service technologies exist in banking in New Zealand: ATMs (automatic telling machines), EFTPoS (electronic funds transfer at the point of sale), and telephone banking. All three are at differing stages of the adoption process. Of interest is exactly the stage where they are and towards which they are heading. Information of this nature would assist banks in developing marketing strategies. In order to identify at what stages of adoption these technologies are, and heading towards, 302 telephone surveys were carried out with randomly selected respondents. The results indicated that ATMs are at the late majority stage of the diffusion process, and heading for the laggard group. The question thus needs to be asked, “Should banks be spending any resources at all in trying to encourage new users?” The laggards are the least likely of all customers to adopt, and the banks′ resources could well be better spent elsewhere. EFTPoS is at the late stages of the early majority, and heading for the late majority. Strategies used by the banks to encourage new users need to recognize that the late majority are typically sceptical about new ideas. Also the banks need to stress the mobility value of EFTPoS, since members of the late majority tend to be less mobile. Telephone banking is at the early stages of the early majority. Banks need to recognize that at this stage it is word‐of‐mouth which will determine the success or failure of a product or service. Telephone banking systems should be available to the market only when the system has been found to be faultless, and customer service levels are at an optimum.
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Norman E. Marr and Gerard P. Prendergast
Due to deregulation, the New Zealand retail banking environment ischaracterized by change, especially in the area of self‐servicetechnologies. The success of these technology…
Abstract
Due to deregulation, the New Zealand retail banking environment is characterized by change, especially in the area of self‐service technologies. The success of these technology projects has been mixed, and one must question whether or not the suppliers of these technologies have a true understanding of consumer needs. Draws a comparison between what the consumers see as being important influences in the adoption or non‐adoption of retail banking self‐service technologies; and what the suppliers of these technologies (i.e. banking and technology experts) perceive as being important influences in the consumer adoption or non‐adoption of self‐service retail banking technologies. To achieve this, a review was conducted of the literature relating to consumer surveys which investigated why consumers do or do not adopt the main self‐service technology in retail banking: automated telling machines. The themes from this review were identified. A Delphi study was then conducted with New Zealand′s leading experts in the area of retail banking technologies. A comparison between the themes from the literature and the results of the Delphi study indicated that the suppliers of technology do in fact have an understanding of those variables, which affect consumer adoption of self‐service technologies in retail banking.
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Gerard P. Prendergast, Alex S.L. Tsang and Ranis Cheng
Handbills are an interesting advertising medium since they are distributed by people in a social context. Little, however, is known about why handbills are often avoided. This…
Abstract
Purpose
Handbills are an interesting advertising medium since they are distributed by people in a social context. Little, however, is known about why handbills are often avoided. This study was designed with the purpose of extending previous research on advertising avoidance by using social psychological variables to explain consumers' avoidance of handbills in Hong Kong and the UK.
Design/methodology/approach
A survey of 337 individuals was conducted (166 in Hong Kong and 171 in the UK). A series of hypotheses relating to perceived handbill clutter, perceived goal impediment, and the perceived manner of the distributer were tested.
Findings
Perceived handbill clutter was found to be the strongest predictor of handbill avoidance in both Hong Kong and the UK. The second strongest predictor was perceived goal impediment. The perceived manner of the distributor did not predict handbill avoidance in Hong Kong, but it did predict handbill avoidance in the UK.
Research limitations/implications
The study's methodology has a number of limitations. First, the measure of the distributor's perceived manner may not have directly tapped the distributor dimensions of importance to handbill avoidance. Second, no account was taken of non-response bias. The model also did not recognize that there may be other variables capable of explaining handbill avoidance.
Practical implications
The results suggest that effort is needed to raise the perceived value of handbills so that their perceived value neutralizes any perceptions of goal impediment. In addition, handbill designers need to find creative ways to stand out from the clutter. In the UK, deportment should be considered when distributors are recruited and trained.
Originality/value
Handbills are frequently used as a promotional tool. In two contrasting countries, this study found that perceived handbill clutter, perceived goal impediment, and perceived manner of the distributer influence handbill avoidance. The research has extended theoretical knowledge related to advertising avoidance and generated insights that are likely to be of practical value to marketers.
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Gerard P. Prendergast, Alex S.L. Tsang and Cherry N.W. Chan
Globalization and outsourcing have decoupled country of origin into the country of origin of manufacture (COM) and the country of origin of the brand (COB). This study seeks to…
Abstract
Purpose
Globalization and outsourcing have decoupled country of origin into the country of origin of manufacture (COM) and the country of origin of the brand (COB). This study seeks to extend the work of Gurhan‐Canli and Maheswaran and Lee et al. by investigating the interactive influence of COB and personal involvement with a product on purchase intention.
Design/methodology/approach
A total of 168 young adults in Hong Kong were intercepted for mall interviews and presented with mock advertisements for personal computers ostensibly with brands originating in Japan and Korea. Their personal involvement with such products was measured using an instrument designed by Zaichkowsky, and their purchase intentions were self‐assessed.
Findings
COB was found to predict purchase intentions among consumers with a low level of personal involvement with computers, but not among consumers with a high level of personal involvement.
Research limitations/implications
First, to improve internal validity, the study involved a single product type and a sample limited to 15‐34 year olds. However, this improvement in internal validity places limitations on generalisability. Second, a median split was used to divide the subjects into low and high involvement groups. Third, only one dependent variable, purchase intention, was studied.
Practical implications
For marketers whose product is branded in a country with a favorable image, emphasizing the COB would be appropriate when communicating with low involvement consumers. Marketers whose product is branded in a country with a less favorable image ought to emphasize other peripheral cues when communicating with low involvement consumers.
Originality/value
By finding that COB has a significant impact on the purchase intentions of low involvement consumers, but not with those more highly involved, this research constitutes a small but important extension of the conclusions of Gurhan‐Canli and Maheswaran and Lee et al.
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Heidi M.K. Ngan, Gerard P. Prendergast and Alex S.L. Tsang
It is common for companies to sponsor sports teams. The aim of this paper is to examine experimentally the impact of two team attributes (team performance and the presence of a…
Abstract
Purpose
It is common for companies to sponsor sports teams. The aim of this paper is to examine experimentally the impact of two team attributes (team performance and the presence of a star in the team) on consumers' intention to purchase the sponsor's product. The moderating role of team identification on the relationship between these two team attributes and intention to purchase is also to be studied.
Design/methodology/approach
An experiment was conducted in Hong Kong. A series of hypotheses relating to team performance, presence of stars in the team, and team identification were tested.
Findings
Team performance significantly influenced consumers' intention to purchase the sponsor's product, and this influence was more pronounced for casual than for avid fans and more pronounced when the team contained a star. A winning team with a star generated the strongest purchase intention. A losing team with a star produced the lowest purchase intention.
Research limitations/implications
The trade‐off between internal and external validity when using experimental research methods constitutes the main limitation of this study. This limitation aside, the study suggested that sponsors should try to sponsor a winning team, especially if it contains a star player. A sponsor of a losing team might encourage the team management to take actions that increase the level of team identification among consumers. If the losing team also contains a star, the sponsor ought to promote other strengths of the team instead of focusing on team performance.
Originality/value
The paper extends previous work in the area by examining how team performance and the presence of a star in a team impact intentions to purchase the sponsor's product, and how team identification moderates the influence of these two attributes.
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Douglas West and Gerard P. Prendergast
This study aims to look at the conventional wisdom with regards to budgeting methods, processes, and sophistication in light of recent macro work relating budgetary approaches to…
Abstract
Purpose
This study aims to look at the conventional wisdom with regards to budgeting methods, processes, and sophistication in light of recent macro work relating budgetary approaches to risk‐taking.
Design/methodology/approach
Based on a survey of UK advertisers and personal interviews, current advertising and promotions budgeting methods and processes are summarized. A series of hypotheses relating risk, process and experience to advertising and promotions budgeting sophistication were tested.
Findings
UK advertisers were found to use a variety of budgeting methods (two methods on average per company). Judgmental methods dominate, especially the “what is affordable” method, but at the same time more sophisticated methods like objective and task and measurement techniques (in particular return on investment) were solidly represented. The relationship between budgeting sophistication and risk was investigated, the premise being that risk and budgeting sophistication are inversely related, as well as budgetary processes and marketing experience.
Research limitations/implications
Considerable insight is provided into the methods and processes being used. It is concluded that the explanation as to why firms use sophisticated or unsophisticated methods for setting their advertising and promotion budgets is largely related to organizational culture.
Originality/value
Just over 1.5 percent of the UK's gross domestic product is spent on advertising and promotions (£19 billion). The study suggested that the primary reason for the lack of consensus on budgetary sophistication is that stakeholders involved with budgeting are far less concerned with specific methods than dealing with cultural norms, personalities, access to supporting data and policies and practices.
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Gerard P. Prendergast and Chan Hak Wai Maggie
Charitable organizations need to have an in‐depth understanding of their donors in order to retain their donations and attract new donors. This is particularly the case when the…
Abstract
Purpose
Charitable organizations need to have an in‐depth understanding of their donors in order to retain their donations and attract new donors. This is particularly the case when the relationship with the donor is expected to be sustained rather than a one‐off donation. The purpose of this phenomenological study is to discover the essence of donors' experiences of joining a child sponsorship program. The central research question is: What does it mean to be a child sponsor?
Design/methodology/approach
A phenomenological methodology was used to explore the experiences associated with charitable giving for individuals providing long‐term financial support to disadvantaged children.
Findings
An analysis of 84 significant statements from a series of in‐depth interviews revealed that sponsors experience both gains and losses from sponsoring a child. Financial ability and peers are influential in motivating child sponsorship, but the decision to sponsor a child is often not shared with family members. Sponsors indicated that they want to establish a close relationship with their sponsored child and they tend to sponsor children whom they perceive as similar in some respect to themselves.
Research limitations/implications
The study focused on existing sponsors and did not consider lapsers. Second, although interviewing was continued to the point of saturation, and although the sample size was relatively large for a phenomenological study, caution must be exercised when trying to extrapolate the findings to a broader population.
Practical implications
Charities should take a proactive role in managing communication between beneficiaries and sponsors. It is particularly important for the beneficiaries to communicate with the sponsors so as to give the sponsor the feeling of sponsoring a friend/family member. Charities could encourage their current sponsors to actively share their happiness and satisfaction with their friends. Testimonials and referral programs wherein happy sponsors share their experiences with potential sponsors would probably be productive. Finally, charities should aim to match sponsors and beneficiaries, at least in terms of nationality.
Originality/value
This is the first study to investigate long‐term charitable giving using an interpretative framework. The findings extend understanding of the experiences underlying sustained charitable giving and will be useful for charitable organizations seeking to understand more about the experiences of sponsors. Consideration of the findings will help charities maintain long‐term donor relationships and encourage more people to undertake long‐term sponsorship commitments.
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Gerard Paul Prendergast, Sze Sze Li and Connie Li
The purpose of this study was to assess the utility of the homophily theory and the related concept of source similarity which predict that a male salesperson is more effective in…
Abstract
Purpose
The purpose of this study was to assess the utility of the homophily theory and the related concept of source similarity which predict that a male salesperson is more effective in serving male customers, and a female is more effective with females. For products designed to enhance female attractiveness, however, Darwinian theories of reproduction suggest that a male may be more effective than a female in dealing with female customers. This study of Hong Kong consumers examined the possibility and, in doing so, challenged the assumed utility of homophily in selling cosmetics.
Design/methodology/approach
Two studies were conducted. The first was an experiment where female subjects were asked to report their responses to female and male salespersons selling cosmetics. The second study was a phenomenological study exploring the responses of female customers who had encountered male salespeople in cosmetics shops.
Findings
The experiment found that a male salesperson tended to induce significantly stronger purchase intention than a female, and that salesperson credibility (specifically, trustworthiness and attractiveness) plays a significant role in mediating the impact of salesperson gender on purchase intention. The follow-up phenomenological study of female customers who had encountered male salespeople in cosmetics shops supported the experimental findings and offered additional support for their evolutionary basis.
Research limitations/implications
Darwinian theories of reproduction and source credibility together offer a more complete explanation for the effectiveness of salespeople in the gender-sensitive cosmetics market. However, the experiment involved creating fictitious salespeople matched for trust, expertise and attractiveness. The artificiality of the treatments was necessary to construct a controlled scenario to uphold internal validity, but it may limit the generalizability of the results.
Practical implications
To encourage a positive consumer response, retailers need to consider salesperson gender and training. In some specific contexts (such as the selling of products designed to enhance female attractiveness), male salespeople ought to be used ahead of female salespeople, and those male salespeople need to have high credibility to be effective. However, as such, salesmen may not be seen as more expert than saleswomen; expertise needs to be an area of focus in terms of salesperson training.
Originality/value
The results of previous research testing homophily theory suggest that a salesperson of the same gender as the customer ought to induce stronger purchase intentions. This study has shown that for the selling of appearance-related products, gender heterophily may be more effective than homophily. Darwinian interpretations of intrasexual rivalry and courtship might help explain why males sell cosmetics more effectively.
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Gerard P. Prendergast and Norman E. Marr
Branding has traditionally been viewed as an essential tool for marketers to establish an identity for their products. Even products among the commodity range make use of branding…
Abstract
Branding has traditionally been viewed as an essential tool for marketers to establish an identity for their products. Even products among the commodity range make use of branding to establish a position for themselves in the market. Recent times, however, have seen the emergence of unbranded or “generic” products. These products, which are usually sold at a price which is lower than their branded equivalents, are most often found in the area of low‐involvement grocery items. Previous studies of consumer perceptions suggest that while consumers see generics as being less expensive than their national branded equivalents, they are also seen as being inferior in quality. This research goes beyond comparing generic products to their national brand equivalents by comparing generic products to one another, in order to ascertain whether the “low price‐low quality” perception is more applicable to some generic products than others. A mail survey of 1,000 New Zealanders revealed that, in contrast to previous studies, generic consumers tend to be older and on a lower household income. The more standardized generics (such as rice) received more favourable ratings than the more processed generics such as coffee and shampoo, although there were significant differences in the respondents’ perceptions across different demographic groups. The results suggest that it is unwise for marketers to draw sweeping conclusions about consumer perceptions of generic products in general. Rather, each generic product, when compared with other generic products, has its own consumer perception and, therefore, each generic product requires different attention from different elements of the marketing mix.