Hwan Ho Ha, Jung Suk Hyun and Jae H. Pae
To investigate shoppers' decision‐making behaviour under conditions of expected and unexpected in‐store price discounts, using mental accounting theory as the analytical framework.
Abstract
Purpose
To investigate shoppers' decision‐making behaviour under conditions of expected and unexpected in‐store price discounts, using mental accounting theory as the analytical framework.
Design/methodology/approach
In an experiment manipulating expected and unexpected discounts on electronic organisers and portable audio players, data collected by questionnaire from 240 first‐year business administration students at a Korean university were used to test two hypotheses predicting the ways in which the savings would be used.
Findings
Recipients of unexpected discounts tend to spend the savings in store. If a choice of two products is available, the savings are more likely to be applied to the discounted one than the other. Shoppers commit more actively to planned purchases when price discounts are known in advance. The key factor in purchasing behaviour with respect to discounts is the existence or otherwise of predictions. Shoppers' decision‐making in these conditions is, therefore, context and frame dependent.
Research limitations/implications
The experimental subjects were not representative of the general shopping population, and Korea is a distinctive culture. The findings should be interpreted with caution, but are indicative within limits. Aspects of the topic not investigated by the experiment are identified, and future research directions suggested.
Practical implications
Unadvertised discount available at the point of sale offer several potential benefits to retailers, including reduced costs and increased patronage. Pricing strategists need to understand the theoretical basis of customers' behaviour in response to discount offers, for effective planning.
Originality/value
Adds to the body of knowledge relating to crucial aspect of pricing strategy, and has potential applicability beyond retailing.
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Y.H. Wong, Ricky Y.K. Chan, T.K.P. Leung and Jae H. Pae
The purpose of this paper is to understand the impact of the antecedents of the exchange domain (use of coercive influence, ideational favor exchange, calculative…
Abstract
Purpose
The purpose of this paper is to understand the impact of the antecedents of the exchange domain (use of coercive influence, ideational favor exchange, calculative resource‐dependence, and decision uncertainty) on relationship building. The paper examines the link between the two mediating dynamics of embedded trust and relationship‐specific customization and loyalty by developing a model of vulnerability‐based commitment.
Design/methodology/approach
The links between the model elements are tested using data from a survey of clients in the Hong Kong insurance service. Structural equation analysis is used to test research hypotheses and to examine the extent to which vulnerability‐based commitment leads to the development of loyalty.
Findings
The degree of embedded trust between parties is enhanced by the use of coercive influence, favor, and resource‐dependence. Embedded trust has a negative relationship with decision uncertainty. The antecedents of coercive influence, favor, and resource‐dependence have positive impacts on relationship‐specific customization. Vulnerability‐based commitment is positively affected both by trust and customization whilst commitment has a positive impact on loyalty.
Practical implications
A vulnerability‐based commitment model is developed as an analytical and managerial tool for understanding the benefits and hidden vulnerabilities of client loyalty and for implementing effective service strategies.
Originality/value
By understanding the implications of the benefits/costs in commitment vulnerabilities, the findings can help in the design of a loyalty quality system. A new measurement tool is provided to enable researchers to perform more vigorous scale development of commitment.
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Dong‐Jin Lee, Jae H. Pae and Y.H. Wong
Examines the antecedents and consequences of close business relationships (guanxi) in China. We hypothesize that decision‐making uncertainty and perceived similarity positively…
Abstract
Examines the antecedents and consequences of close business relationships (guanxi) in China. We hypothesize that decision‐making uncertainty and perceived similarity positively affect guanxi, whereas opportunism negatively affects guanxi. We also hypothesize that guanxi positively affects business performance, mediated by relationship quality and interdependence. An empirical study of Hong Kong and mainland China business relationships generally supports the model. The managerial implications are discussed.
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Stephen Kim, Namwoon Kim, Jae H. Pae and Leslie Yip
This study aims to examine the strategic implications and managerial outcomes of the concurrent use of cooperation and competition in vertical channel relationships.
Abstract
Purpose
This study aims to examine the strategic implications and managerial outcomes of the concurrent use of cooperation and competition in vertical channel relationships.
Design/methodology/approach
This study employs a structured questionnaire to gather data regarding vertical channel relationships in China.
Findings
Whereas the academic literature has emphasized cooperation between channel members because of the interdependence between them, in reality, retailers may accept competition as just another part of doing business with suppliers.
Research limitations/implications
The outcome variables used may not be comprehensive. In particular, the authors choose the flexibility of channel resources to stand for private benefits and joint benefits to represent common benefits, and though these variables certainly represent the intended benefits of the ambidextrous strategy, it remains to be seen whether other benefits may emerge for the exchange parties in vertical relationships.
Practical implications
Using an ambidextrous strategy does not damage relationship quality, though it certainly does not enhance it. This view is based on the notion that an ambidextrous strategy at least does not harm either common or private benefits. Therefore, exchange parties using the ambidextrous strategy should not experience a relationship that is worse than that which results when they use cooperation or competition alone. The results of the current study indicate that this view reflects reality more accurately.
Originality/value
The value of the current study centers on the application of a conceptual framework regarding ambidextrous strategy to vertical channel relationships in a developing economy.
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This study aims to fill the void of previous research in organizational innovation. The understanding of the factors that affect intra-firm diffusion of innovations, which include…
Abstract
Purpose
This study aims to fill the void of previous research in organizational innovation. The understanding of the factors that affect intra-firm diffusion of innovations, which include the proactive management support and participation comprehensiveness from the adopting firm, as well as the provider’s support of innovation utilization has been advanced. In addition, the extent to which the consequent intra-firm diffusion affects both the adopter’s and provider’s benefits has been explored based on their relationship.
Design/methodology/approach
A mail questionnaire on the organizational purchase and utilization of customer relationship management (CRM)-type database systems was developed for collecting data. A random sample of 480 firms from the Hong Kong Chambers of Commerce Directory was obtained. From the initial phone calls, 343 firms currently using a CRM-type database system were identified, and the questionnaires were mailed to the managers of these firms. In total, 163 responses were finally returned with usable data, for a response rate of 47.5 per cent.
Findings
The current study focuses on the causes and the effects associated with successful diffusion and utilization of innovation within a firm. Using data from business-to-business markets, the results find that the two parties involved benefit when both proactively participate in the intra-firm diffusion process; that is, benefits are created for the adopter via improvement in efficiency; and for the provider via establishment of a long-term relationship and switching costs.
Research limitations/implications
First, any moderating impact of the adopting firm’s technological capabilities was not analyzed. Second, the research results were obtained from a sample of software product innovations (especially database management system). Even though it could be assumed that these results can also be applicable to other types of innovations (e.g. process innovations), empirical tests of our framework based on different innovation typologies are still warranted.
Practical implications
First, for an innovation-adopting firm, we have shown that a wide use of purchased innovations among the organizational members is at least as important as the adoption of new innovations. Second, we have included the participation comprehensiveness of adoption decision, arguing that the organizational decision-making process is also crucial to stimulating intra-firm diffusion. Finally, and more importantly, our study calls attention to the provider’s role in expediting intra-firm diffusion.
Originality/value
First, we have suggested an analytic framework for intra-firm diffusion of an innovation and also provided its empirical support. Particularly, the current study has focused on the subsequent effects of intra-firm diffusion on both the adopter’s and the provider’s benefits. Second, we have examined further impact of the comprehensive participation of adoption decision on spreading innovation information, which subsequently stimulates the innovation’s intra-firm diffusion.
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Jae H. Pae, Saeed Samiee and Susan Tai
The significant body of published work in global advertising literature focuses on the standardization and localization of the advertising campaign from a marketing strategy…
Abstract
The significant body of published work in global advertising literature focuses on the standardization and localization of the advertising campaign from a marketing strategy perspective without much concern regarding consumers’ response. In this research, this gap is addressed by gauging consumer perceptions of localized and standardized advertisements in Hong Kong. Consumers generally prefer locally produced to foreign‐sourced commercials, irrespective of brand origin; and they exhibit more favorable attitudes toward foreign‐sourced, standardized commercials in situations involving greater brand familiarity and when execution style is transformational. Therefore, well‐known brands with transformational appeals are more likely to succeed when transferred to Hong Kong, while localized advertising messages will be more effective when brand familiarity is low.
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The purpose of this paper is to introduce a special issue on entrepreneurship and service innovation, and to conceptualize the link between entrepreneurial orientation, innovation…
Abstract
Purpose
The purpose of this paper is to introduce a special issue on entrepreneurship and service innovation, and to conceptualize the link between entrepreneurial orientation, innovation and entrepreneurship or new entry.
Design/methodology/approach
Analysis of secondary data.
Findings
Entrepreneurial orientation (EO), innovation (IN) and entrepreneurship are in a vital “triadic connect”, where EO supports innovation in organizations and innovation promotes new entry or new venture creation – a vehicle for commercialization of innovations.
Research limitations/implications
There is a need for empirical validation of the linkages proposed in this conceptual paper.
Practical implications
This “triadic connect” between EO, IN and entrepreneurship or new entry is a source of or key driver of organizational performance (OP) and competitive advantage (CA).
Originality/value
The theorization and schematization of the “triadic connect” (i.e. EO–IN–NE link) and outcomes (namely, OP and CA) is presented.
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Eun-Mi Lee, Hyun Jung Lee, Jae-Hyeon Pae and Seong-Yeon Park
This study examines the effect of corporate social responsibility (CSR) capabilities on corporate association and, consequently, customer orientation and price premium, which are…
Abstract
Purpose
This study examines the effect of corporate social responsibility (CSR) capabilities on corporate association and, consequently, customer orientation and price premium, which are key to competitive advantage.
Design/methodology/approach
This study adapts survey instrument targeting employees of a Korean firm. A total of 168 usable questionnaires were collected from seven Korean firms that were conducting CSR and public relations (PR) activities.
Findings
CSR and PR capability induce positive CSR and corporate ability (CA) associations, which improve customer orientation and increase price premium. The results of our empirical study indicate that a company should consider both CSR and PR capabilities to enhance its employees’ positive attitude to its CSR activities and CA association.
Research limitations/implications
This study has undertaken a holistic examination of important role of CSR and PR capability and their outcomes, namely customer orientation and price premium.
Originality/value
Understanding of CSR capabilities in terms of competitive advantage is imperative to the establishment of strategic CSR initiatives. This study attempts to answer whether corporate capabilities for social responsiveness improve a company’s competitive advantage.
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Bo Meng, Myong Jae Lee, Bee-Lia Chua and Heesup Han
This paper aims to develop an integrated framework for a deeper understanding of employee sustainable behaviors in the workplace by using theories, such as behavioral reasoning…
Abstract
Purpose
This paper aims to develop an integrated framework for a deeper understanding of employee sustainable behaviors in the workplace by using theories, such as behavioral reasoning theory, planned-behavior theory, goal-directed behavior theory, norm activation theory and belief-value-norm theory.
Design/methodology/approach
A quantitative approach is used in the present research. This study used data from 343 employees who are from the hospitality and tourism industry to investigate the formation of employees’ sustainable behaviors.
Findings
The research framework assumes that the reasons for sustainable behavior and the reasons against sustainable behavior predict global motives, which comprise attitude, subjective norm and behavioral control, and moral norm mediates the relationship between global motives, positive and negative anticipated emotions and behavioral intention. The hypothesized theoretical model had a sufficient degree of total variance with the behavioral intention and generally verified the hypothesized relationships, which served as a basis for modeling employee sustainable behavior in the workplace.
Originality/value
This study integrated a framework that contributes to employee sustainable behavior in the tourism and hospitality industry by identifying the effects of motivational process, moral process and emotional process to perform sustainable behavior.