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Articles 1 - 24 of 24
Full-Text Articles in Business
Opportunity Cost Neglect, Shane Frederick, Nathan Novemsky, Jing (Jane) Wang, Ravi Dhar, Stephen Nowlis
Opportunity Cost Neglect, Shane Frederick, Nathan Novemsky, Jing (Jane) Wang, Ravi Dhar, Stephen Nowlis
Research Collection Lee Kong Chian School Of Business
To properly consider the opportunity costs of a purchase, consumers must actively generate the alternatives that it would displace. The current research suggests that consumers often fail to do so. Even under conditions promoting cognitive effort, various cues to consider opportunity costs reduce purchase rates and increase the choice share of more affordable options. Sensitivity to such cues varies with chronic dispositional differences in spending attitudes. We discuss the implications of these results for the marketing strategies of economy and premium brands.
Don't Be Undersold!, Jan-Benedict E.M. Steenkamp, Nirmalya Kumar
Don't Be Undersold!, Jan-Benedict E.M. Steenkamp, Nirmalya Kumar
Research Collection Lee Kong Chian School Of Business
"Aldi" is a word that strikes fear in the hearts of brand managers across Europe. A chain of low-budget retail stores with sales of $73.5 billion in 2008, Aldi invented what is commonly referred to as the hard-discount store, a format that is destroying between a quarter and a half trillion dollars in brand sales annually.Brand executives at major consumer packaged goods companies have mostly been caught off guard by this success, The authors' research identified four key misconceptions that explain why: (1) Hard discounters can succeed only in Europe; (2) they attract only the poor; (3) they offer inferior …
Buy Now, Regret Later: Rationalising The Irrational For Shopaholics, Knowledge@Smu
Buy Now, Regret Later: Rationalising The Irrational For Shopaholics, Knowledge@Smu
Knowledge@SMU
Why do we buy things that we don't need? One explanation is that it nourishes our consumerist cravings; that inexplicable sense of satisfaction that comes with the ownership of familiar items, but in a different colour, design, brand, smell, taste – things we tell ourselves to celebrate each euphoric ring on the cash register. What follows, however, are questions of doubt that plague even the most seasoned of shopaholics: Can I afford this? Can I really find good uses for this? Can this new car really fix my hair loss? According to a new study by SMU marketing professor Jane …
Marketing Strategy And Wall Street: Nailing Down Marketing’S Impact, Dominique M. Hanssens, Roland T. Rust, Rajendra K. Srivastava
Marketing Strategy And Wall Street: Nailing Down Marketing’S Impact, Dominique M. Hanssens, Roland T. Rust, Rajendra K. Srivastava
Research Collection Lee Kong Chian School Of Business
No abstract provided.
Reinventing The Branch: An Empirical Assessment Of Banking Strategies To Environmental Differentiation, Thomas Allard, Barry Babin, Jean-Charles Chebat, Martine Crispo
Reinventing The Branch: An Empirical Assessment Of Banking Strategies To Environmental Differentiation, Thomas Allard, Barry Babin, Jean-Charles Chebat, Martine Crispo
Research Collection Lee Kong Chian School Of Business
The present study investigates the effects of two atmospheric differentiation strategies currently used by banks: co-locating with a hedonic business vs. refurbishing through an upscale environment. We assessed the potential moderating effects of congruency between the retail environment and the type of services. Using a Structural Equation Model based on 300 bank visit intercepts, we found significant differences between modern branch concepts and the traditional one in their influence on customers’ retail experience. More specifically, the type of atmospheric strategy moderates the relationship between retail environment and customers’ affect and the relationship between affect and approach behavior. Also, the mediating …
Regulatory Exposure Of Deceptive Marketing And Its Impact On Firm Value, Martha Myslinski Tipton, Sundar G. Bharadwaj, Diana C. Robertson
Regulatory Exposure Of Deceptive Marketing And Its Impact On Firm Value, Martha Myslinski Tipton, Sundar G. Bharadwaj, Diana C. Robertson
Research Collection Lee Kong Chian School Of Business
Research linking marketing to financial performance has predominantly focused on how marketing assets and actions add value. The authors argue that it is equally important to understand how marketing decisions can reduce firm value. Prior research has indicated that negative events vary greatly in their indirect costs to the firm. On the basis of established theory and in-depth interviews with practitioners, the authors identify a set of factors that can explain the heterogeneity in the magnitude of indirect costs associated with negative marketing-related events. Specifically, they address how the regulatory exposure of deceptive marketing, which carries no direct cost to …
Innovation And Commoditization: Asian Cross Border Sourcing Practices, Sudhi Seshadri
Innovation And Commoditization: Asian Cross Border Sourcing Practices, Sudhi Seshadri
Research Collection Lee Kong Chian School Of Business
What constitutes better sourcing performance? The question is gaining prominence from recent work in the resource based view of the firm where interest in functional performance is growing. The paper addresses this question by investigating several dimensions of sourcing practices. Two main performance priorities are captured by supply innovation and supply commoditization, and we develop several hypotheses involving these constructs. The paper reports on our survey research with Asian purchasing managers; scales that measure supply innovation and commoditization; and the estimates of a path analytic model to test our hypotheses and provide relative effect sizes. The results contribute to a …
Customer Satisfaction And Stock Returns Risk, Kapil R. Tuli, Sundar G. Bharadwaj
Customer Satisfaction And Stock Returns Risk, Kapil R. Tuli, Sundar G. Bharadwaj
Research Collection Lee Kong Chian School Of Business
Over the past decade, several studies have argued that customer satisfaction has high relevance for financial markets because it has a significant impact on stock returns. However, little attention has been given to understanding the impact of customer satisfaction on the risk of stock returns. The finance literature suggests that investors that judge performance only in terms of returns place more resources than warranted in risky opportunities, forgo profitable opportunities, and apply misguided performance evaluations. Accordingly, this study develops, tests, and finds empirical support for the hypotheses that positive changes (i.e., improvement) in customer satisfaction result in negative changes (i.e., …
Differential Reliance On Feelings In The Present Vs. The Future (Or Past): Affect As A Decision Making System Of The Present, Hanwen Hannah Chang, Michel Tuan Pham
Differential Reliance On Feelings In The Present Vs. The Future (Or Past): Affect As A Decision Making System Of The Present, Hanwen Hannah Chang, Michel Tuan Pham
Research Collection Lee Kong Chian School Of Business
We posit that compared to the cognitive system, the affective system of judgment and decision making is relatively more engaged in the present. Specifically, we hypothesize that even if their accessibility is held constant, affective feelings are weighted more heavily in consumer judgments and decisions set in the present than in equivalent judgments and decisions set in the future or in the past. Consistent with this proposition, results from six experiments show that (a) compared to a more distant future, a nearer future increases consumers’ relative preferences for options that are superior in terms of integral affect over options that …
Seeking Emotion Enhancement Or Uncertainty Resolution? A Dual-System Approach To Examining Post-Purchase Information Search, Hanwen Hannah Chang, Cecile Cho, Leonard Lee
Seeking Emotion Enhancement Or Uncertainty Resolution? A Dual-System Approach To Examining Post-Purchase Information Search, Hanwen Hannah Chang, Cecile Cho, Leonard Lee
Research Collection Lee Kong Chian School Of Business
Product information search is typically assumed to follow the recognition of a purchase need and to occur before decision making. Once a sale transaction is completed, searching for information (e.g. price) on the purchased product seems futile and even irrational. Real-life observation and prior research (e.g. Russo and Leclerc 1994), however, suggest that such post-purchase search behavior is pervasive among consumers despite having no apparent consequence.
The Indian Mystique, Nirmalya Kumar
The Indian Mystique, Nirmalya Kumar
Research Collection Lee Kong Chian School Of Business
The rise of global business means that Western companies will increasingly encounter Indians as customers, competitors and collaborators. The author profiles how best to collaborate with Indian business leaders.
Aiming For “Brand Bonuses” In Times Of Budget Cuts, Knowledge@Smu
Aiming For “Brand Bonuses” In Times Of Budget Cuts, Knowledge@Smu
Knowledge@SMU
Branding, perceived by the bean-counters as an expense item, is always among the first to go during recessions. In its place are price cuts and price promotions aimed at delivering value to customers. The common (and predictable) belief is to stimulate demand quickly, so as to sustain production and operations during the trying times. After all, brand equity cannot possibly help close a sale or bring in the cash –- or can it? To answer this question, SMU’s Provost, Rajendra K. Srivastava, examined the financial performance of brands during a downturn in a hunt for the elusive “brand bonus”.
Who I Am And How I Think: The Impact Of Self-Construal On The Roles Of Internal And External Reference Prices In Price Evaluations, Yi, Cathy Chen
Who I Am And How I Think: The Impact Of Self-Construal On The Roles Of Internal And External Reference Prices In Price Evaluations, Yi, Cathy Chen
Research Collection Lee Kong Chian School Of Business
Drawing from self-construal studies on cognitive styles as well as reference price literature, this research investigates the impact of independent versus interdependent self-construal on consumers' use of internal reference prices (IRPs) and external reference prices (ERPs) during price evaluations. Three experiments reveal that IRPs have a larger impact on price evaluations for participants who are primed with an independent (vs. interdependent) self-construal, whereas ERPs have a larger impact for participants who are primed with an interdependent (vs. independent) self-construal. The differential impact of self-construal on the use of IRPs and ERPs seems to be mediated by a generalized, perceived sense …
Ownership, Institutions, And Capital Structure: Evidence From China, Kai Li, Heng Yue, Longkai Zhao
Ownership, Institutions, And Capital Structure: Evidence From China, Kai Li, Heng Yue, Longkai Zhao
Research Collection School Of Accountancy
We employ a unique data set to explore the role of ownership structure and institutional development in debt financing of non-publicly traded Chinese firms. We show that state ownership is positively associated with leverage and firms’ access to long-term debt, while foreign ownership is negatively associated with all measures of leverage. Surprisingly, firms in better developed regions are associated with reduced access to long-term debt, suggesting the availability of alternative financing channels and the tightening of the lending standards under the on-going banking reform. The combination of ownership structures and institutions explains up to 6% of the total variation in …
Branding For Airliners In A Web 2.0 World, Knowledge@Smu
Branding For Airliners In A Web 2.0 World, Knowledge@Smu
Knowledge@SMU
In the world of digital social networking, consumers can influence how brands are perceived. Airliners, often besieged with challenges in areas such as service, security, regulations, oil prices, make convenient targets for online critics. While many uncertainties exist in the business of running airliners, one certainty brought about by Web 2.0 is that customer experiences, good and bad, will be reported. That is why Shashank Nigam, CEO of SimpliFlying, an airline brand consultancy, believes that brands within the airline sector need to respond quickly.
Market-Based Capabilities And Financial Performance Of Firms: Insights Into Marketing's Contribution To Firm Value, Sridhar N. Ramaswami, Rajendra K. Srivastava, Mukesh Bhargava
Market-Based Capabilities And Financial Performance Of Firms: Insights Into Marketing's Contribution To Firm Value, Sridhar N. Ramaswami, Rajendra K. Srivastava, Mukesh Bhargava
Research Collection Lee Kong Chian School Of Business
While there is recognition that market-based capabilities contribute to a firm’s financial performance, the exposition is largely conceptual (Srivastava et al. Journal of Marketing 62:2–18, 1998; Journal of Marketing 63:168–179, 1999). Using a resource based view of the firm, the present study proposes that (1) market-based assets and capabilities of a firm impacts (2) performance in three market-facing business processes (new product development, supply-chain and customer management), which in turn, influence (3) the firm’s financial performance. It develops related hypotheses and tests the framework empirically. The study also examines for the first time the interrelationship among the three business processes …
Consumer Technology: Professional Versus 'Octopus' Peripherals, Knowledge@Smu
Consumer Technology: Professional Versus 'Octopus' Peripherals, Knowledge@Smu
Knowledge@SMU
Convergence is a popular term in consumer electronics. In recent years, a number of gadgets have evolved to take on different functions, as manufacturers try to out-do one another. Printers are now expected to scan and fax. Mobile phones are moonlighting as cameras. Mp3 players have become mini-television sets. In a paper about technological convergence, SMU marketing professors, Jin Han and Seh-Woong Chung, explore how consumers are really taking to such multi-purpose machines.
Marketing And Democracy: Similarities And Remedies, Knowledge@Smu
Marketing And Democracy: Similarities And Remedies, Knowledge@Smu
Knowledge@SMU
Marketing and democracy, two key concepts in the different fields of business and politics, share various traits. Political campaigns, like the landmark victory scored by Barack Obama, were increasingly run in a way that will make most marketing professionals proud. For the better or worse, both concepts have been criticised variously for what they are. Nevertheless, the two can learn and benefit from each other, says Harvard business administration professor John Quelch.
Marketing To Customer Networks: The New Way To Build Your Brand, Knowledge@Smu
Marketing To Customer Networks: The New Way To Build Your Brand, Knowledge@Smu
Knowledge@SMU
Digital technologies connect consumers, and as such, customers function not only as individuals but within customer networks. Negative and positive brand experiences can easily be broadcast across customer networks to powerful effect. This significant shift in the producer-consumer dynamic requires businesses to think and act differently. However, according to David Rogers, a speaker at the BRITE Asia ’09 conference, hosted by SMU, many businesses continue to view customer networks as threats rather than opportunities.
How Emerging Giants Are Rewriting The Rules Of M&A, Nirmalya Kumar
How Emerging Giants Are Rewriting The Rules Of M&A, Nirmalya Kumar
Research Collection Lee Kong Chian School Of Business
While Western companies struggle with mergers and acquisitions, emerging giants like Indian aluminum producer Hindalco are using M&A as their main globalization strategy. That's partly because developing economies grew at near double-digit rates in the past 15 years, enabling many enterprises to make acquisitions. It's also because, according to the author's research, those corporations create more value from takeovers. To compete, Western multinationals should change their mind-set and shift the locus of their M&A efforts to regional headquarters in developing countries.U.S. and European companies, inhibited by slow-growing home markets, acquire rivals primarily to become bigger and thus create economies of …
A Red Devils-Inspired Parallel In The Re-Branding Of Aig?, Knowledge@Smu
A Red Devils-Inspired Parallel In The Re-Branding Of Aig?, Knowledge@Smu
Knowledge@SMU
AIG’s sponsorship of Manchester United has given the insurance giant a big boost in brand visibility. However, before more value can be extracted from the $107 million deal, the financial crisis hit. Coupled with the on-going outrage over AIG’s legal obligations to pay bonuses to the Financial Products division -- the same business unit that caused most of its financial issues, the company is suffering from unprecedented damage to its credibility and branding. Steps are being taken to re-brand the company. How can this be more effective?
India Unleashed, Nirmalya Kumar
India Unleashed, Nirmalya Kumar
Research Collection Lee Kong Chian School Of Business
Corporations in the developed world increasingly see India as a high-growth market and its companies as acquirers of their assets, global competitors, partners for enhancing the competitiveness of their global value chain and a source of new energy and dreams for the world economy. How did this all happen? The author shares the essence of what he learned from 10 trips to India to interview more than 30 CEOs and top executives who are unleashing the new global power of Indian firms.
When Income Matters: Customers Evaluation Of Shopping Malls' Hedonic And Utilitarian Orientations, Thomas Allard, Barry J. Babin, Jean-Charles Chebat
When Income Matters: Customers Evaluation Of Shopping Malls' Hedonic And Utilitarian Orientations, Thomas Allard, Barry J. Babin, Jean-Charles Chebat
Research Collection Lee Kong Chian School Of Business
This study, based on 772 shopper's interviews in two shopping malls, establishes that malls can achieve differentiation from their competitors through the pursuit of singular orientations following the hedonic and utilitarian dimensions of shopping. Furthermore, perceived differentiation from competitors is found to positively influence customers’ attachment to the mall, a determining factor in the mall's evaluation. Interestingly, mall's orientation related to hedonic elements was found appealing by all subjects, although slightly more by those with lower income. However, utilitarian orientation appeared strictly effective on those with higher income. Theoretical and managerial implications along with limitations are discussed.
Consumer Decision Making And Aging: Current Knowledge And Future Directions, Carolyn Yoon, Catherine A. Cole, Michelle P. Lee
Consumer Decision Making And Aging: Current Knowledge And Future Directions, Carolyn Yoon, Catherine A. Cole, Michelle P. Lee
Research Collection Lee Kong Chian School Of Business
We review existing knowledge about older consumers and decision making. We develop a conceptual framework that incorporates the notion of fit between individual characteristics, task demands and the contextual environment. When the fit is high, older consumers use their considerable knowledge and experience to compensate for the impact of any age-related changes in abilities and resources. When the fit is relatively low, older consumers feel increased need to adapt their decision making processes. We discuss these consumer adaptations and propose a number of research questions related to the processes underlying them in order to contribute to a better understanding of …