Ya-Ling Chiu, Lu-Jui Chen, Jiangze Du and Yuan-Teng Hsu
The purpose of this study is to examine the effect of perceived value on customer loyalty through affective commitment in the online group-buying (OGB) context. This paper…
Abstract
Purpose
The purpose of this study is to examine the effect of perceived value on customer loyalty through affective commitment in the online group-buying (OGB) context. This paper addressed the following questions: what are the factors affecting customer loyalty (i.e. revisit intention and buy more intention); and how do referral rewards moderate the impact of affective commitment on customer loyalty?
Design/methodology/approach
All data were collected from OGB websites’ members in Taiwan. The total number of respondents to the online survey was 403. The data were analyzed using structural equation modeling (SEM) to test a perceived value–commitment–loyalty model.
Findings
This study shows that three proposed antecedents (i.e. OGB scheme value, hedonic value and social value) can trigger customer loyalty through affective commitment. Monetary savings, a variety of merchandise and aspirational products are all critical OGB scheme value components. The results also show that referral reward importance positively moderates the relationship between affective commitment and revisit intention.
Practical implications
The findings have implications for managing people and work tasks in OGB websites. First, understanding the importance of dimensions of value should enable OGB managers to develop more accurate targeting strategies. This study provides guidance on the design of the platform and the OGB scheme, for the effective allocating of marketing resources. Second, a referral reward mechanism can be a critical CRM tool; in addition to the potential to attract new customers, they can also help to retain existing customers. This mechanism is a very effective method to enhance customer stickiness.
Originality/value
The marketing literature generally recognizes the importance of developing and maintaining long-term relationships with customers. This study is the first one to explore the importance of affective commitment in developing and sustaining loyal relationships in the OGB context. Referral rewards are an important moderator variable: affective commitment has a stronger effect on the revisit intention when the referral rewards are high. The findings of this study provide insights into how OGB website developers can create customer commitment and more effectively retain existing customers through the use of referral rewards.
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Zhigang Li, Yuan-Teng Hsu and Xiang Gao
This paper aims to investigate the dynamics of repurchase-based earnings management vis-à-vis other real activities manipulations during the 2007–2008 financial crisis.
Abstract
Purpose
This paper aims to investigate the dynamics of repurchase-based earnings management vis-à-vis other real activities manipulations during the 2007–2008 financial crisis.
Design/methodology/approach
This paper adopts a Probit model to regress alternate real earnings management (REM) methods on a dummy variable indicating whether a firm falls in the crisis event window or not, during our 15-year sample period. This paper also detects switches made by suspected firms from repurchasing to other REM tools such as reducing discretionary expenditures.
Findings
This paper provides solid evidence indicating that firms suspected of earnings management have the tendency to decrease accretive share repurchases after the onset of the crisis. Conversely, the above pattern is neither observed in non-suspect firms nor over non-crisis periods. A further investigation documents that firms that switch REM during crisis can be characterized by less cash holding, smaller size, more severe liquidity shortage and/or tighter financial constraint.
Originality/value
This paper contributes to the literature on understanding the respective and interactive implications of both share repurchases and global financial crisis on firms’ REM activities.
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Ya-Ling Chiu, Ku-Hsieh Chen, Jying-Nan Wang and Yuan-Teng Hsu
Electronic word-of-mouth (eWOM) is very important for consumer decision making; previous international product diffusion studies have investigated eWOM and cultural factors that…
Abstract
Purpose
Electronic word-of-mouth (eWOM) is very important for consumer decision making; previous international product diffusion studies have investigated eWOM and cultural factors that influence consumers’ acceptance of new products, but they have not adequately compared the differences in these factors between the USA and China. Therefore, the purpose of this paper is to compare the impact of eWOM on consumer choices in China and the USA. The authors addressed the following questions: What are the cross-cultural differences in consumers’ eWOM behavior between the USA and China: Which genres of Hollywood movies have better cross-culture predictability in terms of box office performance; and What factors affect the success of Hollywood movies in entering the Chinese market?
Design/methodology/approach
Real eWOM data were collected from two online movie review websites, IMDb.com (the USA) and Douban.com (China), from January 2010 to December 2015. In addition, box office revenue information was collected from BoxOfficeMojo.com. The authors used an independent sample t-test to check whether the differences in consumers’ eWOM behavior between China and the USA and different types of movie lead to cultural discount differences. Furthermore, a log-linear regression model is used to examine which factors influence the commercial success of new movies.
Findings
There are specific similarities and differences between the American and Chinese movie markets. First, the results show that American consumers are more engaged in online review systems and tend to submit extreme reviews, but Chinese consumers tend to submit moderate reviews on movies, and the eWOM variance there is smaller than in the USA. Second, genres are useful variables as indicators of movie content; the genres of comedy and drama are not popular in the Chinese market. Finally, eWOM variance has a positive impact on box office in China, but eWOM variance has no impact on the US box office. In addition, the interactive effect of the average rating and eWOM variance on sales is positively significant in China. Importantly, the one-star reviews have a negative impact on the Chinese box office, but it has no impact on US box office.
Practical implications
Understanding how cultural factors influence consumer eWOM communication will help managers to better apply this new marketing communication tool to create more aggressive and targeted promotional plans. Marketers may use eWOM behavior to better respond to and target consumers to overcome barriers to the selection of their products by consumers. Therefore, more effective management of eWOM can improve the acceptance of and preference for products in different cultural consumer groups.
Originality/value
This study expands the existing body of knowledge on eWOM and international marketing literature. Clearly, culture is an important determinant of eWOM’s impact on sales. In addition, it provides strategic direction and practical implications for eWOM communication management in cross-cultural settings.
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Austin Rong-Da Liang, Tung-Sheng Wang, Yu-Chen Yeh and Teng-Yuan Hsiao
The purpose of this study is to develop organic food consumption experience (OFCE) scales based on structural/functional theory.
Abstract
Purpose
The purpose of this study is to develop organic food consumption experience (OFCE) scales based on structural/functional theory.
Design/methodology/approach
In the first step, the construct and item generation of OFCE were developed by a literature review, and 58 items were created for the item pool. In the second step, qualitative interviews were used to evaluate and maintain 35 items. In the third step, an online survey collected 543 valid samples to test reliability and validity with exploratory factor analysis in phase 3A. The AHP method was also used to confirm the construct and items in phase 3B. In the final step, 1,017 valid samples were collected by face-to-face survey to test the formal scale with confirmatory factor analysis.
Findings
This study defines OFCE as the internal and subjective responses that result from a series of interactions between consumers, the shopping environment and organic food. Meanwhile, six dimensions are named: organic food quality, store interactions, organic certification, convenience concerns, health benefits, caring for family and sense of responsibility. In addition, there are significant differences between organic food businesses and consumers regarding their perceptions of OFCE.
Originality/value
To the best of the authors’ knowledge, this is among the first studies to develop OFCE scales. In addition, the results of the study can potentially help organic food marketers develop new promotion strategies.