Christopher K. Hsee and Bowen Ruan
This chapter reviews and integrates recent research on curiosity. We discuss potential costs and benefits of curiosity, both hedonic and motivational. In particular, we examine…
Abstract
This chapter reviews and integrates recent research on curiosity. We discuss potential costs and benefits of curiosity, both hedonic and motivational. In particular, we examine the Pandora effect, the teasing effect, and the motivating-uncertainty effect.
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Roger M. Heeler, Adam Nguyen and Cheryl Buff
The paper seeks to propose and test a theory of the psychological impact of price bundling that is derived from bundling's economic impact. It is called the inferred bundle saving…
Abstract
Purpose
The paper seeks to propose and test a theory of the psychological impact of price bundling that is derived from bundling's economic impact. It is called the inferred bundle saving hypothesis. In the absence of explicit information about bundle savings, consumers infer a bundle saving when presented with a bundle offer. It is suggested that inferred bundle saving provides a simple, parsimonious explanation for pre‐ and post‐purchase bundle effects.
Design/methodology/approach
The theory is tested in two laboratory studies that employ partial replications of two prior price bundle studies.
Findings
The results show that the inferred bundle saving effect is robust in both product and service contexts, and can potentially explain the bundle effects found in these two studies.
Research limitations/implications
Additional experimental studies are recommended to further test the proposed theory.
Practical implications
First, contrary to convention, it is not always optimal for firms to integrate price information in a single bundle price. Second, firms may sometimes use the price‐bundling format to signal a bundle saving without actually offering one. Third, firms can manage consumption and expected refund of bundles by manipulating consumer perception of bundle saving.
Originality/value
It is intuitive that consumers expect a bundle saving. However, this paper is the first to establish empirically the existence of this inferred bundle saving and demonstrate its potential as a theoretical explanation for various bundle effects. The research challenges the extant view that price bundling per se always enhances consumer pre‐purchase evaluation. Moreover, it connects economic and psychological research, as well as pre‐ and post‐purchase analysis, of bundle effects.
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Zhaoyang Guo, Yuan Zhang, Yirang Zhang and Xue Ke
As value co-creation has become a critical strategy for companies to gain competitive advantage, the purpose of this paper is to investigate the degree of the uncertain reward…
Abstract
Purpose
As value co-creation has become a critical strategy for companies to gain competitive advantage, the purpose of this paper is to investigate the degree of the uncertain reward (DUR) and its impact on customer engagement (CE), particularly in the promotion stage, which has not been sufficiently explored. Further, optimistic estimation (OE) is examined as an underlying mechanism of the uncertain reward effect, as well as the impact of combining this with other marketing strategies: the controllable lottery and the delayed reward.
Design/methodology/approach
Three studies were conducted to examine the influence of DUR on CE, which included online experiments and a laboratory experiment. In total, 337 participants were recruited from China and the USA to enhance the study’s reliability and validity.
Findings
The research demonstrated that a high-degree uncertain reward led to less OE than a low-degree uncertain reward (LDUR), which subsequently decreased CE (Study 1). However, when other marketing strategies were combined – the controllable lottery (Study 2) and time-delay reward strategy (Study 3) – the uncertain reward effect was reversed (Study 2) or attenuated (Study 3).
Research limitations/implications
The current research only presents two possible reward amounts and independently explores the influence of two popular marketing strategies. Future research can explore customers’ responses to engagement when they face multiple rewards and thoroughly investigate the influence of other social or psychological factors.
Practical implications
Firms could apply an LDUR to enhance CE effects. Furthermore, this could be done at a low cost by empowering customers’ controllability. Nonetheless, firms should be cautious with trade-offs when using time-delay reward strategies.
Social implications
The research contributes to establishing networks of customer–company and interpersonal relationships, as well as fostering closer social ties and social harmony.
Originality/value
This research offers not only initial research on CE in the promotion stage, but also a novel psychological perspective in CE literature. Meanwhile, the study provides substantial value in guiding managers to effectively transform customers into value co-creators.
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Shivendra Kumar Pandey and Dheeraj Sharma
The purpose of this paper is to examine the sunk-time fallacy in the context of simultaneous variations of time and money when financial expenditures are recoverable. The study…
Abstract
Purpose
The purpose of this paper is to examine the sunk-time fallacy in the context of simultaneous variations of time and money when financial expenditures are recoverable. The study compares a recoverable monetary scenario with conditions where money is either not spent or spent, but purchase and payment are decoupled.
Design/methodology/approach
A sample of 184 participants was utilised in three experiments. A randomised design was used, and experimental manipulations were achieved using the vignette method.
Findings
The results indicate that consumers are susceptible to sunk-time fallacy. Specifically, results suggest that there is no significant difference in sunk cost fallacy when a consumer spends only time vs when a consumer spends money and time both but money can be recovered. The sunk-time fallacy did not occur in credit card purchases. The sunk-time fallacy did not happen in temporal investments of less than a week but appeared in the temporal investments of two weeks.
Research limitations/implications
The study indicates that sunk-time fallacy occurs after a minimum threshold of time is spent on a particular activity.
Practical implications
Online retailers may vary the delivery period of ordered merchandise to reduce product returns. Online retailers may not deliver the merchandise too early to take advantage of the sunk-time fallacy. Bestseller products should be quickly delivered as there are lesser chances of product return. On the other hand, new products or products with mixed consumer reviews should be provided preferably with a time lag beyond a week. Managers should incentivise payments through debit card/net banking and cash-on-delivery to reduce returns by using sunk-time fallacy.
Originality/value
The study is perhaps the first one to study the sunk-time fallacy in a simultaneous variation of time and money where monetary costs can be recovered fully.
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Chyi Jaw, Kuei-Ju Chi and Guan-Jia Li
In the modern increasingly competitive milieu of cause marketing activities, both profit and nonprofit organizations expect their advocation of prosocial programs to gain the…
Abstract
Purpose
In the modern increasingly competitive milieu of cause marketing activities, both profit and nonprofit organizations expect their advocation of prosocial programs to gain the support of target customers. Previous research shows the effect from adding participant's personal attributes or social influence factors. This study considers the effects of benefit incentives and cost/reward influences to enhance prosocial behaviors.
Design/methodology/approach
Three between-subject experiments were conducted and SPSS Statistics ANOVA was employed to analyze the experimental results.
Findings
Rewarding time delays and prosocial efforts have no significant impact on the relationship between other-benefit incentives and willingness to engage in prosocial behaviors, but do significantly impact the self-benefit incentives condition. However, the negative effect of self-benefit condition can be mitigated by high rewards.
Research limitations/implications
Since prosocial campaigns proposed by organizations in this study include both profit and nonprofit organizations, perhaps two category organization types should be attentively classified to evaluate the effects.
Practical implications
Under social marketing campaigns with self-benefit incentives conditions, the empirical findings of this study show that profit and nonprofit organizations can provide higher reward values to mitigate the adverse effects of high participating costs.
Social implications
Social marketing campaigns with other-benefit incentives are less affected by high participating costs and highlight the value of altruism.
Originality/value
This study provides valuable suggestions for both profit and nonprofit organizations to use self-benefit/other-benefit incentives under cost related factors influence to encourage customers' prosocial behaviors.
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C.D.J Waters and S. Soman
International trade is steadily increasing. Most of this relies tosome extent on ocean‐going ships and, in consequence, the size of theworld shipping fleet has been growing. Some…
Abstract
International trade is steadily increasing. Most of this relies to some extent on ocean‐going ships and, in consequence, the size of the world shipping fleet has been growing. Some years ago it became apparent that there was an anomaly in the composition of this fleet. In particular, developing countries contributed a large proportion of goods moved (primarily by the supply of raw materials to developed countries), but they owned and operated only a small proportion of the ships. Some measures were taken to match the use of ships with their ownership more closely. These measures included both restrictions on foreign shipping and increases of operating efficiency so that developing countries became more competitive. In principle, most observers preferred the latter course of improving efficiency, but this has many associated problems. Some of these can be illustrated by reference to containerised transport, which has brought substantial benefits to developed countries, but the different economic conditions in developing countries make its benefits less clear.
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Jaydeep Pinakin Dave, Ali Muhammed Moula Ali and Sri Charan Bindu Bavisetty
The purpose of this study was to provide contemporary scientific knowledge on the functionality of edible lipids, sources, health benefits, and a special emphasis on different…
Abstract
Purpose
The purpose of this study was to provide contemporary scientific knowledge on the functionality of edible lipids, sources, health benefits, and a special emphasis on different encapsulation strategies to enhance their dietary application and boost the market value.
Design/methodology/approach
Novel technologies overcoming these issues are in great demand. Given that, several novel encapsulation techniques have been established aiming at most of the aspects of functional lipids. In addition, these techniques have been designed to enhance the storage stability and controlled release of lipids in food systems.
Findings
Plant and marine oils are one of the richest sources of functional lipids but are attached with limitations. Currently, alternative sources, such as different types of algae and microorganisms are gaining attention in terms of sustainable production systems. Advances in various encapsulation techniques have helped to overcome the dispersibility and stability problems of lipids encapsulation. Refinement in physicochemical interaction, colloidal dispersion and core-shell modules between wall and core matrix protect dietary lipids during processing have been implemented. Liposomes, micro/nanoemulsions and micro/nanocapsules are found most suitable for food application by improving the fatty acid profile, stability and sensorial properties.
Originality/value
Functional lipids offer numerous health benefits (i.e., simple health-promoting properties to complex disease preventive and curative effects). However, these functional lipids are associated with several disadvantages, such as region-specific availability, vulnerability to oxidation depending on the level of unsaturation, degradation/hydrolysis on processing, low bioavailability, confined storage stability, and others.
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Farah Diba M.A. Abrantes-Braga and Tania Veludo-de-Oliveira
The purpose of this paper is to develop valid and reliable scales for assessing a driver and two obstacles potentially related to financial well-being (FWB): financial…
Abstract
Purpose
The purpose of this paper is to develop valid and reliable scales for assessing a driver and two obstacles potentially related to financial well-being (FWB): financial preparedness for emergency, beliefs of credit limits as additional income and risky indebtedness behaviour.
Design/methodology/approach
The scales were developed from scratch across six studies, employing a two-step methodology, which encompassed both qualitative (e.g. focus group, interviews) and quantitative (i.e. online surveys) data collection. Exploratory and confirmatory factor analyses were employed to test and validate the proposed scales.
Findings
This study provides a set of three parsimonious, self-reported behavioural measures that could be employed in conjunction with objective economic indicators to identify individuals who are financially ill prepared and potential candidates for delinquency. The three proposed scales achieved satisfactory levels of reliability and convergent and discriminant validity.
Research limitations/implications
The resulting scales still need to be tested for predictive validity and in different consumer groups. The scales were validated in a single culture population (Brazil, a country that presents extraordinarily high credit card interest rates), and they should be tested cross-culturally in countries with different economic and credit policies.
Originality/value
The literature on FWB has traditionally employed objective financial indicators as an attempt to measure the concept of FWB and its elements. Self-reported behavioural measures of such constructs are scant to the point of being non-existent for some elements. This study is the first to offer scales for measuring the elements of financial preparedness for emergency, beliefs of credit limits as additional income and risky indebtedness behaviour.
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Farah Diba M.A. Abrantes-Braga and Tânia Veludo-de-Oliveira
This study aims to develop and test a parsimonious theoretical model of risky indebtedness behaviour, a facet of over-indebtedness that refers to the behavioural tendency of often…
Abstract
Purpose
This study aims to develop and test a parsimonious theoretical model of risky indebtedness behaviour, a facet of over-indebtedness that refers to the behavioural tendency of often assuming hazardous debt levels.
Design/methodology/approach
The authors administered an online survey to credit card owners (n = 1,288) in an emerging economy in which consumer credit is characterized by extremely high interest rates (i.e. Brazil). The authors used covariance-based structural equation modelling to analyse the data and test for mediation effects.
Findings
Individuals who inadvertently consider their credit limits a part of their current income or are typically anxious about money are prone to engage in impulsive buying and, consequently, risky indebtedness behaviour. By engaging in such indebtedness behaviour, individuals weaken their financial preparedness for emergencies, which potentially jeopardizes their overall financial well-being.
Research limitations/implications
As indebtedness is a highly sensitive issue, the self-report measures used may have produced social desirability bias.
Practical implications
This study discusses the responsibility of financial institutions to support consumers in building awareness on how to adequately use financial services and to provide credit access to high-risk consumers. Policymakers need to ensure that those in the private sector play fairly.
Originality/value
This study adds new knowledge about how destructive financial behaviours operate and impact marketing and consumers’ financial well-being. It theorizes about indebtedness by critically examining existing and newly developed concepts in the financial services marketing literature.
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This paper aims to examine how, why and when incidental curiosity might have an influence on consumers’ unhealthy eating behaviors in a subsequent, irrelevant context.
Abstract
Purpose
This paper aims to examine how, why and when incidental curiosity might have an influence on consumers’ unhealthy eating behaviors in a subsequent, irrelevant context.
Design/methodology/approach
Three experiments were conducted. Study 1 tested the basic main effect; Study 2 further tested the proposed process; Study 3 identified an important moderator and offered additional support for the mechanism.
Findings
Study 1 demonstrated the basic main effect that incidental curiosity increases consumers’ preference for unhealthy food. Study 2 replicated the effect in a simulated grocery-shopping task and further provided direct process evidence that a reward-approaching orientation underlies the effect of curiosity on unhealthy food choice. Finally, Study 3 identified information nature as an important moderator of the effect. That is, when people are curious about threatening information, they are likely to adopt an avoidance motivation, which prevents them from seeking any unhealthy food.
Practical implications
On the one hand, consumers could benefit from being educated that incidental exposure to curiosity cues might lead to unhealthy eating behaviors. On the other hand, public policymakers and responsible marketers should be mindful that, though widely used in marketing, the tactics that elicit consumers’ curiosity might sometimes backfire and undermine their healthy food choices.
Originality/value
This research contributes to the curiosity literature by demonstrating that incidental curiosity could have motivational impacts in the non-information domain, such as food choice. It also adds to the food decision literature by documenting incidental curiosity as an important situational factor of consumers’ food decisions.