Devon DelVecchio, Timothy B. Heath and Max Chauvin
Multi-unit discounts (MUDs, e.g. “3 for $4”) typically increase sales relative to other discounting frames. This study demonstrates the value of MUDs by showing that positive…
Abstract
Purpose
Multi-unit discounts (MUDs, e.g. “3 for $4”) typically increase sales relative to other discounting frames. This study demonstrates the value of MUDs by showing that positive multi-unit price/quantity signals are potent enough to match and even exceed the sales produced by larger discounts on single items. However, there is reason to believe that MUDs can produce neutral effects in some cases (e.g. among consumers interested in only single-unit purchases) and even negative effects in others. In addition, the study considers whether MUDs can, in some cases, reduce purchase quantities by signaling smaller-than-otherwise-planned purchase amounts and/or lower-quality products.
Design/methodology/approach
The effectiveness of MUDs is tested in both the field and lab. Study 1 models purchase quantities stemming from 2,374 purchases of discounted items at a mass retailer. Purchased products ranged in type from pantry items to apparel and electronics, and ranged in price from 44¢ to $99.99. There were 1,530 single-unit discounts, 596 two-unit discounts and 248 discounts, involving three or more units. Study 2 consists of a laboratory experiment that overcomes the shortcomings of Study 1 by accounting for non-purchasers, controlling for product classes and testing whether smaller MUDs can lead to lower purchase quantities for larger-purchase-quantity products.
Findings
The results of both the field study and the laboratory experiment indicate that MUDs’ monetary cue (savings) and purchase-quantity cue (volume) increase purchase quantities. Generally, purchase quantities increased monotonically with the number of units offered in the discount. In fact, the quantity cue is so effective that it can increase sales enough as to substitute for larger discounts. However, in some instances, MUDs can decrease intended purchase quantities. The negative effect of MUDs is the most pronounced for larger unit deals, offering deeper discounts on perishable goods.
Originality/value
This research is the first to demonstrate that the power of the signals provided by MUDs may be so positive as to lead them to be more effective than discounts of substantially larger value but also so negative as to render them less effective than single-units discounts. This negative outcome poses a threat beyond those typically associated with discounts, in that rather than consumers simply discounting a discount, in which case the discount remains positive even if their impact at the margin wanes, the MUD frame may actually reduce sales.
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Min Jia and Timothy Heath
This paper aims to examine the trends among the elderly population in China about residential preferences and policy applications, as the elderly is a rapidly expanding…
Abstract
Purpose
This paper aims to examine the trends among the elderly population in China about residential preferences and policy applications, as the elderly is a rapidly expanding demographic group that has increasing and diversifying inclinations for demanding the residential facilities for the elderly (RFEs) now and in the foreseeable future.
Design/methodology/approach
Based on a review of the existing literature and policies, a model is conceptualised for understanding the demands of the elderly. Their needs for functional supportiveness and richness of residential resources in RFEs are then categorised into focal groups.
Findings
The Chinese elderly’s demand for specialised residential facilities is under a shift from seeking deficit relief to pursuing personal choices. It is suggested that there will be a continuing demand for affordable RFEs from a number of key focal groups, including: the functionally impaired; marginally housed; socially isolated; and the elderly requiring social relief. In addition, retirement housing in China is likely to be more affordable for the next elderly generation. However, the immature social welfare system and low average income level of the current elderly generation means that the Chinese Government has tough decisions to make about service priorities.
Practical implications
Policy and investment priorities may have to be inclusive of those who demand social relief (free-of-charge) and affordable professional long-term care in RFEs, whereas the rest of the demand could be released by growth in the development of community- and home-based service systems.
Originality/value
This study is one of the first to identify the diversifying demands of age-exclusive living facilities for the elderly that deserve priorities in China. The results can inform and guide future policy and project investment in China.
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Subimal Chatterjee, Napatsorn Jiraporn, Timothy B. Heath, Magdoleen Ierlan and Glenn A. Pitman
The purpose of this study is to examine if consumers, after missing a price discount on a desired product, prefer to buy the latter at a smaller discount or prefer to pay full…
Abstract
Purpose
The purpose of this study is to examine if consumers, after missing a price discount on a desired product, prefer to buy the latter at a smaller discount or prefer to pay full price but offset some of it with windfall money.
Design/methodology/approach
In four experiments, participants imagine that they have missed an opportunity to buy a box of chocolates at $50 off and are offered a second chance to buy them at a less attractive discount ($25) or pay full price, but partially offset the full price with various windfall lotteries ($25, $50, $75) and gift cards ($50).
Findings
Participants are more likely to buy the chocolates at the less attractive (second) discount rather than pay full price using windfall money. In doing so, they show that they are willing to be more, rather than less, poor from an overall wealth perspective to acquire the chocolates. This anomaly surfaces irrespective of the windfall amounts or preference elicitation methods (joint versus separate evaluation). The negative transaction utility of paying full price mediates the purchase method effect (discount versus windfall) on purchase likelihood, but gift cards are able to reduce the negative transaction utility of paying full price.
Originality/value
The research reveals a judgmental anomaly in how consumers assess product acquisition value following a lost opportunity and suggests that marketing managers may be able to reduce consumer inertia by strategically matching rewards with the source of the lost chance.
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Advances in Artificial Intelligence (AI) technologies and Autonomous Unmanned Vehicles are shaping our daily lives, society, and will continue to transform how we will fight…
Abstract
Advances in Artificial Intelligence (AI) technologies and Autonomous Unmanned Vehicles are shaping our daily lives, society, and will continue to transform how we will fight future wars. Advances in AI technologies have fueled an explosion of interest in the military and political domain. As AI technologies evolve, there will be increased reliance on these systems to maintain global security. For the individual and society, AI presents challenges related to surveillance, personal freedom, and privacy. For the military, we will need to exploit advances in AI technologies to support the warfighter and ensure global security. The integration of AI technologies in the battlespace presents advantages, costs, and risks in the future battlespace. This chapter will examine the issues related to advances in AI technologies, as we examine the benefits, costs, and risks associated with integrating AI and autonomous systems in society and in the future battlespace.
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Sandra J. Milberg, Mónica Silva, Paulina Celedon and Francisca Sinn
The purpose of this paper is to extend the conclusions of a previous synthesis of attraction effect research (1995), focusing on the influence of background and design variables…
Abstract
Purpose
The purpose of this paper is to extend the conclusions of a previous synthesis of attraction effect research (1995), focusing on the influence of background and design variables on the magnitude of the effect, and to identify additional factors that question the effect’s practical market relevance.
Design/methodology/approach
Meta-analysis and moderator analysis (meta-regression) are used to summarize the findings and assess the explanatory power of background variables on the magnitude of the attraction effect.
Findings
Analyses indicate significant effects for procedure and the pre-entrant target percentage in addition to decoy type and decoy location found in previous synthesis. These factors explain 16 per cent of the variance. Previous findings that between-subject designs result in stronger attraction effects are not substantiated. Viable decoys led to a reversal of the attraction effect.
Research limitations/implications
This research contributes conceptually by demonstrating that the attraction effect is sensitive to research design factors which in some cases reverse the effect. This suggests that the underlying theory needs qualification and that generalizability may be limited. Given the constraints of meta-analysis, design factors that are idiosyncratic to a single study or are constant across studies could not be tested.
Practical implications
This research suggests that for the attraction effect to have practical relevance, knowledge of the effect needs updating because critical realities in the marketplace have been somewhat ignored by researchers in building theories regarding this effect.
Originality/value
By focusing on background variables that can moderate the magnitude of the attraction effect, the authors open a venue to expand the theoretical understanding and the practical relevance of the attraction effect in marketing.
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W. Timothy Coombs and Sherry J. Holladay
The purpose of this paper is to describe three foundational concepts that contribute to conceptual heritage of the field of public relations (publics, organizations and…
Abstract
Purpose
The purpose of this paper is to describe three foundational concepts that contribute to conceptual heritage of the field of public relations (publics, organizations and relationships). Conceptual heritage is positioned as a type of shared public memory, a dominant narrative, that encourages adherence to the past whilst recognizing that counter-narratives can pose useful alternatives to foundational concepts.
Design/methodology/approach
The approach is a selective literature review that describes three dominant concept categories and presents more recently developed alternative concepts and approaches to illustrate how public memory is subjective and evolving.
Findings
The concepts of publics, organizations and relationships have grounded the dominant narrative and development of the field of public relations. Though these concepts continue to be influential as researchers rely upon and expand upon their legacies, counter-narratives can spur the innovation of ideas, measurement and practice.
Research limitations/implications
The paper focuses on only three major foundational concepts selected by the authors. The importance of these concepts as well as additional examples of the field’s conceptual heritage and evolution could be identified by different authors.
Practical implications
The analysis demonstrates how the public memory contributes to the development and evolution of the field of public relations. Counter-narratives can offer appealing, subjectively constructed challenges to dominant narratives.
Originality/value
This paper describes and critiques public relations’ conceptual heritage and argues that conceptually and methodologically-based counter-narratives have contributed to its evolution.
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W. Timothy Coombs and Sherry J. Holladay
The purpose of this paper is to describe the need to theorize firms’ involvement in social issues and propose the social issues management model as a framework for analyzing the…
Abstract
Purpose
The purpose of this paper is to describe the need to theorize firms’ involvement in social issues and propose the social issues management model as a framework for analyzing the communication processes underlying social issues management. An application of the new approach is illustrated through a brief case analysis.
Design/methodology/approach
The paper is conceptual and emphasizes theory building for firm’s involvement in social issues management.
Findings
The paper describes modifications to the general issues management model that can be adopted to reflect the social issues management process and contemporary digital media environments.
Practical implications
The paper can benefit theory and practice of social issues management by describing how specific communication strategies and digital media use may affect social issues management.
Social implications
Because firms increasingly are motivated or urged by stakeholders to take stands on social issues, understanding how they can perform the role of social issue manager can enhance their potential for contributing to positive social change.
Originality/value
The paper provides a much needed update to the models of issues management used in strategic communication. The new model accounts for the increasing pressure on firms to address social issues and the role of digital communication channels in that process.
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The focus of this paper is on developing a rationale for the use of transmedia storytelling in corporate social responsibility (CSR) communication. Transmedia storytelling…
Abstract
Purpose
The focus of this paper is on developing a rationale for the use of transmedia storytelling in corporate social responsibility (CSR) communication. Transmedia storytelling involves telling stories across multiple platforms by multiple people that are still united by a central theme. The purpose of this paper is to develop a rationale for the application of transmedia storytelling for CSR communication and illustrate how Procter & Gamble’s “Thank You Mom” campaign demonstrates how transmedia storytelling can be found in the current CSR communication.
Design/methodology/approach
The first part of the story is theoretical development. The idea of transmedia storytelling is developed then translated into how it can be used in CSR communication. The key ideas are that the engagement with messages created by transmedia storytelling is the idea for capturing emotions in CSR messages and avoiding the backlash created by some CSR messages, such as advertising. Transmedia storytelling provides a lens for understanding and guiding the use of various social media channels in the distribution of CSR communication. A case study is they conducted to illustrate how P&G used transmedia storytelling in its “Thank You Mom” campaign. Qualitative content analysis is used to identify the plot lines in the stories and the overall storyworld that is being developed thereby illustrating how the concepts for transmedia storytelling can be applied to the case.
Findings
The results illustrate how transmedia storytelling can be applied to CSR communication and the potential benefits of this application. The primary yields are theory development for CSR communication and the insights from the case study.
Originality/value
The extant literature on strategic communication in general and CSR communication specially have shown only a passing interest in transmedia storytelling. This paper provides a very detailed rationale for applying transmedia storytelling to CSR communication and illustrates the utility of this approach with a case study. A detailed application of transmedia storytelling to CSR communication is new and can help advance both theory and practice.
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Drawing from two years of multi-sited fieldwork about international backpacking in Central America, I make important connections between the backpacking escape motive, the…
Abstract
Drawing from two years of multi-sited fieldwork about international backpacking in Central America, I make important connections between the backpacking escape motive, the backpacker hostel, and tourism. I explain how backpackers experience the hostel as their “home base” and “home away from home” to escape into local cultures and natural environments that exist outside of it and an international community of travelers that convenes inside of it. I refer to theories on modern tourism, the backpacking escape motive, and the concept of community. I also theorize how the global spread of modern amenities and tourism shapes backpackers' escape experiences.