Jidong Han, Chun Qiu and Peter Popkowski Leszczyc
This paper aims to investigate how competition among online auction sellers influences the setting of both open and secret reserve prices, thereby affecting auction outcome.
Abstract
Purpose
This paper aims to investigate how competition among online auction sellers influences the setting of both open and secret reserve prices, thereby affecting auction outcome.
Design/methodology/approach
Using a data set collected from eBay consisting of 787 identical product auctions, three empirical models have been proposed. Model 1 simultaneously estimates the effects of auction competition on a seller’s own open and secret reserve price strategies; Model 2 estimates the effects of auction competition on bidder participation; and Model 3 estimates the direct and indirect effects of auction competition on selling price.
Findings
Competition among sellers is central to shaping sellers’ reserve price strategies. When there are more concurrent auctions for identical items, sellers tend to specify a low open reserve and are less likely to set a secret reserve. Sellers are strongly influenced by competitors’ reserve price strategies, and tend to follow competition. Finally, auction competition and competitive reserve price strategies influence both bidder entry and selling prices.
Practical implications
This study has important implications for both sellers and bidders. It highlights the importance for sellers to adapt their reserve price strategies in light of their competitors’ reserve price strategies and offers implications for bidders regarding auction selection. An auction with low starting bid does not necessarily lead to a lower selling price as it attracts more bidders.
Originality/value
This paper focuses on competition among auction sellers, whereas previous literature has focused on competition among bidders. This paper is the first to study the impact of competing reserve prices in auctions.
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Ernan E. Haruvy and Peter T.L. Popkowski Leszczyc
This paper aims to demonstrate that Facebook likes affect outcomes in nonprofit settings. Specifically, Facebook likes influence affinity to nonprofits, which, in turn, affects…
Abstract
Purpose
This paper aims to demonstrate that Facebook likes affect outcomes in nonprofit settings. Specifically, Facebook likes influence affinity to nonprofits, which, in turn, affects fundraising outcomes.
Design/methodology/approach
The authors report three studies that establish that relationship. To examine social contagion, Study 1 – an auction field study – relies on selling artwork created by underprivileged youth. To isolate signaling, Study 2 manipulates the number of total Facebook likes on a page. To isolate commitment escalation, Study 3 manipulates whether a participant clicks a Facebook like.
Findings
The results show that Facebook likes increase willingness to contribute in nonprofit settings and that the process goes through affinity, as well as through Facebook impressions and bidding intensity. The total number of Facebook likes has a direct signaling effect and an indirect social contagion effect.
Research limitations/implications
The effectiveness of the proposed mechanisms is limited to nonprofit settings and only applies to short-term effects.
Practical implications
Facebook likes serve as both a quality signal and a commitment mechanism. The magnitude of commitment escalation is larger, and the relationship is moderated by familiarity with the organization. Managers should target Facebook likes at those less familiar with the organization and should prioritize getting a potential donor to leave a like as a step leading to donation, in essence mapping a donor journey from prospective to active, where Facebook likes play an essential role in the journey. In a charity auction setting, the donor journey involves an additional step of bidder intensity.
Social implications
The approach the authors study is shown effective in nonprofit settings but does not appear to extend to corporate social responsibility more broadly.
Originality/value
To the best of the authors’ knowledge, this study is the first investigation to map Facebook likes to a seller’s journey through signals and commitment, as well as the only investigation to map Facebook likes to charity auctions and show the effectiveness of this in the field.
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Ernan Haruvy and Peter Popkowski Leszczyc
The purpose of this study is to determine how self-driven (intrinsic motivators) and monetary incentives (extrinsic motivators) are mediated by an effort to affect fundraising…
Abstract
Purpose
The purpose of this study is to determine how self-driven (intrinsic motivators) and monetary incentives (extrinsic motivators) are mediated by an effort to affect fundraising outcomes. This integration sheds light on crowding out between the two types of incentives as well the drivers of fundraising outcomes, specifically effort and donations.
Design/methodology/approach
A field experiment is conducted over a two-month period, involving an online fundraising campaign with over 300 volunteers assigned to one of five different incentive conditions. A special website was created to monitor fundraiser efforts. Fundraisers filled out pre- and post-study surveys.
Findings
While high monetary incentives result in the greatest immediate increase in funds raised, they crowd out future intentions to volunteer once incentives are withdrawn. Mediation analyzes show that fundraiser effort fully mediates the effect of intrinsic motivators and partially mediates the direct effect of extrinsic motivators on funds raised.
Research limitations/implications
A major limitation of field experiments is the lack of control, resulting in higher variation. However, while a more controlled experiment will reduce this variation, this goes at the expense of lower external validity.
Practical implications
Results indicate that – at least in the short run – monetary incentives can result in higher fundraising outcomes. However, this goes at the expense of a reduction in future volunteering once the incentives are withdrawn.
Originality/value
This study examines whether extrinsic or intrinsic motivators have a greater impact on funds raised and whether extrinsic motivators crowd out future intentions to volunteer. Different from previous research in which effort is a latent variable, the effort is directly observed over time.
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Jorge Carlos Fiestas Lopez Guido, Jee Won Kim, Peter T.L. Popkowski Leszczyc, Nicolas Pontes and Sven Tuzovic
Retailers increasingly endeavour to implement artificial intelligence (AI) innovations, such as humanoid social robots (HSRs), to enhance customer experience. This paper…
Abstract
Purpose
Retailers increasingly endeavour to implement artificial intelligence (AI) innovations, such as humanoid social robots (HSRs), to enhance customer experience. This paper investigates the interactive effect of HSR intelligence and consumers' speciesism on their perceptions of retail robots as sales assistants.
Design/methodology/approach
Three online experiments testing the effects of HSRs' intellectual intelligence on individuals' perceived competence and, consequently, their decision to shop at a retail store that uses HSRs as sales assistants are reported. Furthermore, the authors examine whether speciesism attenuates these effects such that a mediation effect is likely to be observed for individuals low in speciesism but not for those with high levels of speciesism. Data for all studies were collected on Prolific and analysed with SPSS to perform a logistic regression and PROCESS 4.0 (Hayes, 2022) for the mediation and moderated-mediation analysis.
Findings
The findings show that the level of speciesism moderates the relationship between HSR intellectual intelligence and perceived competence such that an effect is found for low but not for high HSR intelligence. When HSR intellectual intelligence is low, individuals with higher levels of speciesism (vs low) rate the HSR as less competent and display lower HSR acceptance (i.e. customers' decision to shop using retail robots as sales assistants).
Originality/value
This research responds to calls in research to adopt a human-like perspective to understand the compatibility between humans and robots and determine how personality traits, such as a person's level of speciesism, may affect the acceptance of AI technologies replicating human characteristics (Schmitt, 2019). To the best of the authors' knowledge, the present research is the first to examine the moderating role of speciesism on customer perceptions of non-human retail assistants (i.e. human-like and intelligent service robots). This study is the first to showcase that speciesism, normally considered a negative social behaviour, can positively influence individuals' decisions to engage with HSRs.
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Hassan Rahnama and Peter T.L. Popkowski Leszczyc
Few marketing studies have studied consumer mindsets about sustainable products in developing countries. This paper examines the influence of fixed and growth mindsets on buying…
Abstract
Purpose
Few marketing studies have studied consumer mindsets about sustainable products in developing countries. This paper examines the influence of fixed and growth mindsets on buying sustainable foods in Iran.
Design/methodology/approach
To reach this goal, the authors designed a conceptual model and specified hypotheses. A non-probability survey of 622 people was conducted through a multistage cluster random sampling from two provinces in north Iran: Gilan and Mazandaran. Data were collected through a face-to-face questionnaire. A chi-square test, confirmatory factor analysis, structural equation modelling, the bootstrapping method and the PLS product-indicator approach were used for analyses.
Findings
Results show that fixed and growth mindsets have a positive impact on buying sustainable foods. In addition, these two mindsets have a significant effect on consumers' health concerns and warm glow. The study demonstrates that health concerns, environmental values and convenience orientation mediate the relationship between growth mindset and sustainable shopping. However, for a fixed mindset, environmental values are not a mediator. Further, peer influence significantly moderates the effect of both mindsets and motivational variables—environmental values, convenience orientation and warm glow—on purchasing sustainable foods. This study emphasises the critical role of peer influence and motivation factors, including health concern, convenience and warm glow, on purchasing sustainable foods.
Originality/value
This research introduces a new framework concerning consumer behaviour, in particular, consumer psychology towards buying sustainable foods.
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Usha L. Pappu, Peter T.L. Popkowski Leszczyc, Ravi Pappu and Neal M. Ashkanasy
This research aims to examine the conditions under which individuals’ olfaction is actively engaged in purchase decisions. Consequently, it introduces the concept of need for…
Abstract
Purpose
This research aims to examine the conditions under which individuals’ olfaction is actively engaged in purchase decisions. Consequently, it introduces the concept of need for smell (NFS) to measure differential motivation for the extraction and use of odor information in buying contexts. A ten-item NFS scale was developed that consists of hedonic and utilitarian dimensions.
Design/methodology/approach
The scale’s dimensionality and construct validity were examined in five studies. The moderating role of NFS and the mediating role of emotions in the relationship between odor perception and consumer responses were examined. The data were analyzed using confirmatory factor analyses and customized PROCESS models.
Findings
The results show that NFS is a two-dimensional construct. The results further support the scale’s internal structure as well as its reliability, convergent, discriminant and nomological validity. NFS moderates the relationship between odor perception and consumer responses, and emotions mediate this relationship. While hedonic NFS strengthens the impact of odor perception on consumer responses, utilitarian NFS weakens this effect.
Research limitations/implications
The present research extends Krishna’s sensory marketing framework, De Luca and Botelho’s scent research framework and Herz et al.’s scent benefits framework, by introducing the concept of NFS into these frameworks. The study demonstrates the relevance and functionality of NFS construct and NFS scale. The study extends the consumer scent research by introducing NFS and illustrating the interplay of odor perception and NFS on consumer responses to scent stimuli.
Practical implications
The NFS scale used in this study adds to the genre of individual difference scales such as need for cognition and need for touch. Given its smell-specific focus, it has applications in a range of consumption contexts. Using NFS, marketers could effectively identify low and high hedonic and utilitarian NFS consumers and position product or ambient scents to serve these segments better. The NFS scale also has implications for the areas of product and service design and development, consumer information search, brand judgments and choice preferences in both scented and non-scented environments.
Originality/value
This work is one of the first attempts, to the best of the authors’ knowledge, to explain motivational differences in active engagement of olfaction, especially in purchase decisions. As a critical step in exploring olfactory information processing, the study demonstrates the relevance and functionality of NFS construct and NFS scale. The study extends the consumer scent research by introducing NFS and illustrating the interplay of odor perception and NFS on consumer responses to scent stimuli.
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Chun Qiu and Peter Popkowski Leszczyc
The purpose of this paper is to study firms’ decisions of voluntary disclosure of high product quality by sending their products to intermediaries for review, and how the nature…
Abstract
Purpose
The purpose of this paper is to study firms’ decisions of voluntary disclosure of high product quality by sending their products to intermediaries for review, and how the nature of the reviews subsequently substitutes the brand names in terms of affecting the price of the product.
Design/methodology/approach
Using data on camcorders and point & shoot digital cameras collected from multiple intermediary sources, this paper empirically tests the relationships among brand equity, send for review decisions, the nature of reviews and pricing, controlling for endogeneity.
Findings
This paper finds that firms are likely to send their high-quality products to the intermediaries for review, but such likelihood varies across different brands. Relatively weak brands are more likely to send their products for review than relatively strong brands. By doing so, weak brands receive two benefits: first, intermediary reviews help eliminate price differentials between weak brands and strong brands. The more positive is the review, the higher is the price. When intermediary reviews are not obtained, some strong brands effectively charge a price premium over weak brands. Second, intermediary reviews subsequently attract more consumer word of mouth (WOM). The more positive is the review, the more consumer WOM is attracted.
Researchlimitations/implications
One limitation is that this paper does not account for the influence of intra-brand competition. The second limitation is related to the assumption that intermediary reviews are accurate.
Practicalimplications
This paper offers managerial implications to brand managers concerning send-for-review and pricing decisions. It proposes how managers leverage third-party endorsement in launching a new product.
Originality/value
This paper is one of the few papers empirically studying the interaction of two communication approaches: disclosure and brand signaling. It modifies the commonly assumed relationships among brand, quality and price by demonstrating the substitute effect of intermediary reviews and brand names on price. This paper is also the first research that empirically examines the impact of firms’ “send-for-review” decisions on generating consumer WOM. Managerially, this paper substantiates Godes et al.’s (2005) framework on how firms should manage social interactions upon the release of new products.
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Füsun F. Gönül and Peter T.L. Popkowski Leszczyc
Online auctions, which have become an important aspect of online sales, are generally regarded as stand‐alone events. However, in contrast to offline auctions, online auctions can…
Abstract
Purpose
Online auctions, which have become an important aspect of online sales, are generally regarded as stand‐alone events. However, in contrast to offline auctions, online auctions can be subject to the presence of simultaneous competing auctions. The purpose of this study is to model and estimate determinants of elapsed time to switch across concurrent auctions, with special attention to unobserved heterogeneity among bidders.
Design/methodology/approach
Since auctions are dynamic and since the current winning bid progresses over time, the authors study time dependency over the course of an auction with hazard function models. To account for unobserved heterogeneity, the paper uses a latent class approach, which identifies bidder segments based on both observed and unobserved factors.
Findings
The findings show significant heterogeneity across bidders, revealed by their varying degrees of propensity to switch across auctions. The three segments of bidders are The Inerts – about 30 percent, The Switchers – less than 10 percent, and The In‐Betweens. According to the findings, bidders can induce other bidders to switch to a concurrent auction by responding quickly to the current high bid. Moreover, the paper finds a surprisingly high degree of inertia and reluctance to switch towards the end of the auction when bidding is most critical.
Originality/value
To the authors' knowledge, this study is the first to model elapsed time to switch from one auction to a simultaneous auction for an identical product, and to investigate determinants of the time required to switch, with special attention to unobserved heterogeneity across bidders.
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Beatrice Luceri and Sabrina Latusi
The study investigates the cross-format shopping behaviour in the apparel sector. The purpose of this paper is to relate the number of store formats patronized to a set of…
Abstract
Purpose
The study investigates the cross-format shopping behaviour in the apparel sector. The purpose of this paper is to relate the number of store formats patronized to a set of consumer characteristics under a unifying theoretical framework emphasising cost-benefit analysis.
Design/methodology/approach
The research involved questionnaire telephone surveys from a sample of 1,722 apparel shoppers in a European region.
Findings
Among shoppers’ socio-demographic characteristics, age, gender, employment status and citizenship were found to have an impact on multi-store format patronage patterns for apparel purchases. Moreover, the store format preference and the sale proneness proved to be additional determinants of cross-format mobility.
Practical implications
The findings provide retail managers with valuable insights for effective marketing strategies aimed to exploit customer loyalty potential.
Originality/value
Despite consumers’ regular use of various alternative store formats for apparel purchases, literature on the determinants of cross-format mobility is scarce. Addressing the inter-type cross-shopping behaviour of consumers from a cost-benefit viewpoint, this study makes a new contribution in the area of customer loyalty and the complementarity and substitutability of store formats.