Dr. Gerard Prendergast is a Professor of Marketing and the Dean of the College of Business Administration. With a diverse international background, he has taught Bachelor's, Master's, and Doctoral programs across Africa, Asia, Australasia, Europe, and the Middle East. His research and teaching expertise lies in marketing communications, marketing ethics, and qualitative methods. Before transitioning into academia, Dr. Prendergast worked as a marketing executive with the ANZ (New Zealand) Banking Group.
Fundraising appeals frequently feature sad victims. This research postulates that the evaluation of fundraising appeals by consumers and their willingness to donate are contingent upon the congruence between organizational stereotypes (warm vs. competent) and the intensity of the negative emotion expressed in the appeal. Results show that when for-profit organizations employ negative emotional narratives, rather than non-emotional factual appeals, evaluations are less favorable (Experiment 1). Additionally, highly negative emotional appeals featuring multiple sad children designed to evoke compassion do not increase donations in for-profit fundraising campaigns (Experiment 2). These findings suggest that negative emotional appeals may backfire on for-profit organizations.
Marketing experts are tasked with making important decisions that influence firms' performance. Some decision tasks are decomposable and can be broken down into smaller parts (e.g., pricing new products). Others are non-decomposable and are challenging to break down (e.g., selecting creative work for advertising campaigns). The literature remains divided on whether expertise aids decision-makers in addressing these different decision tasks, as well as how different decision-making processes (critical analysis, intuition, introspection) improve decision-makers' performance when they face these tasks. Using experiments with comparative samples of senior marketing managers (experts) and general public participants (non-experts), we test whether expertise provides advantages when making decisions. Our results suggest that experts perform better than the general public with decomposable decision tasks, though not with non-decomposable decision tasks. Furthermore, decision-makers who rely on critical analysis perform better compared to intuition when addressing decomposable decision tasks, but the decision process is less important with non-decomposable decision tasks. These findings provide insight into the conceptual boundaries of marketing professionals' expertise. Managers could apply these insights to potentially save resources (e.g., time, finances) by delegating decisions to more junior staff or even by leveraging external counsel through crowdsourcing. © 2024 The Authors. Psychology & Marketing published by Wiley Periodicals LLC.
Purpose: In an arts organisation context, this paper aims to further the understanding of service relationships by developing a framework explaining how sponsored arts organisations could better manage their relationships with sponsors to facilitate mutual benefit and relationship persistence. Design/methodology/approach: Grounded theory methodology was applied to sponsorship of arts organisations through interviews with the managers of arts organisations worldwide who had been involved in seeking and managing sponsorship relationships. Findings: Reciprocity was found to be the key factor in successful sponsorship relationships, but emotional reference to reputation was also important. Together they link uncertainty in the complex sponsorship environment with an arts organisation’s artistic ambitions. Practical implications: This study extends the understanding of service relationships by shedding light on the sponsorship relationship from the sponsored organisation’s point of view and in particular highlighting the role of reciprocity in managing the relationship with their sponsor. Originality/value: Understanding the moderating roles of reciprocity and reputation in sponsorship relationships helps to explain key facets of such relationships which can partially negate sponsor benefits and threaten a sponsorship’s continuation. © 2021, Emerald Publishing Limited.
The impact of various message features in persuasive online word-of-mouth (eWOM) written in Chinese was investigated through a content analysis and laboratory experiment. A content analysis of 3,263 real online reviews of Hong Kong restaurants in Chinese was used to define typical features of online reviews. Based on those features, mock reviews were presented to 175 participants and their responses in terms of attitude and purchase intention were analyzed. Strongly argued negative reviews were found to be the most persuasive, and weakly supported positive reviews were the least persuasive. We invoke negativity effect, the elaboration likelihood model, and the theory of planned behavior to explain these findings. © 2020 Taylor & Francis Group, LLC.
This study offers both the first systematic investigation of the relationship between the five-factor personality model and general (ostensibly non-problem) lottery gambling, and the first application of Thompson and Prendergast’s (2013) bidimensional model of luck beliefs to gambling behavior. Cross-sectional analyses (N = 844) indicate the bidimensional model of luck beliefs significantly accounts for variance in lottery gambling that is discrete from and greater than that of the five-factor personality model. Moreover, the broad pattern of relationships we find between presumably harmless state-sponsored lottery gambling and both personality and luck beliefs tend to parallel those found in studies of problem gambling, suggesting implications for quality of life and public policy in relation to lottery gambling. © 2019, The Author(s).
While popular aphorisms and etymologies across diverse languages suggest an intrinsic association between happiness and luck beliefs, empirically testing the existence of any potential link has historically been constrained by varying and unclear conceptualizations of luck beliefs and by their sub-optimally valid measurement. Employing the Thompson and Prendergast Personality and Individual Differences, 54(4), 501-506, (2013) bi-dimensional refinement of trait luck beliefs into, respectively, ‘Belief in Luck’ and ‘Belief in Personal Luckiness’, we explore the relationship between luck beliefs and a range of trait happiness measures. Our analyses (N = 844) find broadly that happiness is negatively associated with Belief in Luck, but positively associated with Belief in Personal Luckiness, although results differ somewhat depending on which measure of happiness is used. We further explore interrelationships between luck beliefs and the five-factor model of personality, finding this latter fully accounts for Belief in Luck’s negative association with happiness, with additional analyses indicating this is wholly attributable to Neuroticism alone: Neuroticism appears to be a possible mediator of Belief in Luck’s negative association with happiness. We additionally find that the five-factor model only partially attenuates Belief in Personal Luckiness’ positive association with happiness, suggesting that Belief in Personal Luckiness may be either a discrete facet of trait happiness or a personality trait in and of itself. © 2019, The Author(s).
The market orientation construct has proven to be of value to profit-seeking firms. It ought to be of value to NGOs too. Some previous research has been done to facilitate understanding of market orientation in NGOs, but the methodologies used have mostly been quantitative, and nothing is known about the market orientation of Chinese NGOs. To address this research gap, a qualitative case study methodology was used to develop a deeper understanding of how market orientation is practiced among NGOs in Hong Kong (China). Mapping with previous studies, the research found that three factors together explained the varying degrees of market orientation in the NGOs studied: senior management factors, organizational and institutional factors, and structural and system factors. But more importantly, an NGO’s funding base was found to moderate the relationship between these antecedents and an organization’s market orientation. The more that the NGO relies on public funding or a small number of funders the weaker the influence of the antecedents on market orientation. The more that the NGO relies on private funders, a diversified group of funders, or self-funding, the stronger the influence of the antecedents on market orientation, and the closer its understanding of market orientation is likely to be to that of a commercial entity. The article finishes with a substantive theoretical model for market orientation in the Chinese NGO context. © 2019, © 2019 Taylor & Francis.
This paper identifies the distinctive features of nonprofit arts sponsorship relative to profit driven sports sponsorship and shows that although arts sponsorship has been little researched, it is a potentially important means of marketing. The methodology employed was a literature review on sponsorship that attempted to distinguish arts sponsorship from sports sponsorship. Then, we present the findings from 23 in-depth interviews with arts sponsee managers, to reveal how they see themselves (as sponsees) being differentiated from sports sponsees. The literature and interview findings are brought together in a discussion that highlights the differences between arts sponsorship and sports sponsorship in terms of target audience, the relationship cost/benefit, range of emotions elicited, awareness, marketing metrics, goodwill, and learning potential. Finally, suggestions are made for future research. © 2018, © 2018 The Author(s). Published with license by Taylor & Francis Group, LLC.
https://www.scopus.com/inward/record.uri?eid=2-s2.0-85056176253&doi=10.1108%2fJFMM-02-2018-0025&partnerID=40&md5=f70d8bd3ef72e4a5898d3bcc2c8a3c99
Recent research on social responsibility has largely focused on firms, with only limited research into individual behavior. Recycling is socially responsible behavior which poses a difficult choice for consumers because it benefits society as a whole in the long term but involves a personal cost and does not benefit the individual consumer directly. Previous studies of recycling, however, have only partly explained consumers’ recycling choices. Addressing this gap, this research applied a social dilemma perspective in qualitative and quantitative consumer studies. The findings from the studies demonstrated a positive relationship between a consumer's expectation that others will recycle and his own participation. A social value orientation was found to have a significant moderating effect on this relationship. © 2019 Wiley Periodicals, Inc.
Electronic word-of-mouth (eWOM) is playing an increasingly important role in influencing consumer behavior, and it represents another opportunity for marketers to build support for their brands. This study explores how the gender of the reader influences how eWOM is perceived. An experiment grounded in evolutionary psychology examines how males and females differ in their perceived trust of eWOM of positive, negative, or mixed valence. The results indicate that females place greater trust than males in eWOM messages. But both genders find eWOM of mixed valence more trustworthy than entirely positive or negative eWOM. A follow-up phenomenological study of male and female consumers who had experienced eWOM shed more light on the experimental findings and offers additional support for their evolutionary basis. Theoretical and practical implications are discussed as well as recommendations for further research. © 2016 Advertising Association.
Purpose: To date the vast majority of sponsorship research has focused on the perspective of sponsors. The purpose of this paper is to use this research to identify factors that sponsored institutions and organizations (sponsees) should be cognizant of before entering into a sponsorship arrangement, and to propose a research agenda based on these factors. Design/methodology/approach: The authors leverage sponsorship research that has been published in business journals with an impact factor above 0.5 (Reuters, 2015). Findings: This paper argues that sponsees should be aware of the benefits that sponsorship brings to sponsors so that they can better appeal to potential sponsors. A sponsee also needs to be aware of the impact a sponsorship partnership may have on its own brand, image, and equity. Research limitations/implications: This is a conceptual paper grounded in the literature that aims to stimulate further research in the domain of sponsorship and provide deeper understanding for sponsees. Empirical research addressing the research questions posed is required. Practical implications: In a holistic manner, this literature review offers insights into factors that sponsees should consider before entering a sponsorship relationship. Originality/value: Previous research in the sponsorship domain has focused primarily on dyadic sponsors. This paper considers sponsorship from the sponsee’s perspective. © 2018, Emerald Publishing Limited.
A study was conducted to test an expanded Theory of Planned Behavior (TPB) in predicting healthy eating intention among adolescent boys and girls in mainland China. Two variables (perceived barriers and self-efficacy) were added to the TPB. A purposive sampling design was adopted to select schools, then students. Altogether, 635 adolescents were asked to complete a structured questionnaire about healthy eating. Results of confirmatory factor analysis and structural equation modeling supported the structural validity of the proposed expanded model. Confirmatory factor analysis suggested that selected items of the perceived behavioral control and perceived barriers should be combined to form a new measure of perceived behavioral control. The new measure of perceived behavioral control and self-efficacy was found to be more influential than attitude as well as subjective norm in predicting healthy eating. Past behavior and gender were found to be significant moderating variables. © 2016 Taylor & Francis Group, LLC.
Continuing our series inviting leading academics and practitioners to offer commentaries on important challenges facing the advertising business, Gerard Prendergast and Marc Mazodier of the Hong Kong Baptist University School of Business-with Aishwarya Paliwal of Prosperity Investments Worldwide Ltd-provide an assessment of the theory and practice of sponsorship. Their starting point is that sponsorship (the act of providing resources for a sports event, or other activity in exchange for advertising) mainly has been predicated on the concept of “unidirectional transfer,” whereby the image of the event is transferred to the brand. What they deftly point out, however, is that there is also potential for “bidirectional transfer,” whereby the image of the brand is transferred to the event. The authors go on to examine the importance of the relationship between the brand and its customers, the relationship between the brand and the event, and the potential wrecking impact of ambush marketers on a sponsored event. The topic is particularly timely in light of the 2016 Summer Olympics in Rio. © 2016, World Advertising Research Center. All rights reserved.
Mainland Chinese consumers are increasingly crossing borders to purchase luxury brands. However, a large influx of tourists to a given destination has the potential to impact the quality of life of local residents. In this research, the influx of Mainland Chinese visitors (particularly those purchasing luxury products) to Hong Kong was investigated using a case study approach. How Hong Kong residents perceive this phenomenon and how it affects Hong Kong as a whole were topics of particular interest. The case study involved observations of Mainland consumers purchasing in Hong Kong shopping malls, in-depth interviews, and a focus group with Hong Kong residents, and compiling data from documents and video sources. The results are categorized into three themes: the economy, the environment, and attitudes. While the purchases boost Hong Kong’s economy and generate profits for luxury goods retailers, Hong Kong people were found to have negative perceptions of the Mainland consumers’ activity. This is because of the negative effects on daily life in Hong Kong. The Mainland consumers were found to be unintended endorsers of luxury brands, which negatively impacted their image among Hong Kong people. Based on the findings, theoretical implications are built up. In addition, the implications of these findings for public policymakers and luxury brands both in Hong Kong and elsewhere are discussed and recommendations for further research are made. © 2016 Taylor & Francis Group, LLC.
Introduction: While numerous studies relating to the lives of intellectually challenged people have been published previously, most have been from the caregiver's perspective and lack an insider's view. In addition, none of them were conducted in a Chinese context. Our purpose is to fill this gap by studying the life of Sue Leung, an intellectually disabled Chinese woman in Hong Kong. Methods: Using a narrative approach that combined interviews and observational data collected over an extended time period, the research sought a holistic understanding of her life, how she interacts with others and the challenges and difficulties she faces. Results: Sue Leung's life proved to be complex with social, spiritual, psychological, sexual and financial dimensions. Her story, in which she herself and other mentally impaired people are the actors, reflects to some degree the world of mentally impaired people, at least in Hong Kong. Their world is just as complex as that of anyone else. Violence, dangers, romances, friendships and goodwill also exist in that world. Discussion: Sue Leung's story has helped to unravel the various dimensions of her life and enabled a deeper understanding of the challenges and difficulties a mildly intellectually disabled woman has to face in her life in Hong Kong. Social implications are discussed, and recommendations are made for future research. © 2014 Wiley Publishing Asia Pty Ltd.
Research into the influence of affect on impulse buying has to date produced contradictory results, partly due to confusion between the potentially discrete influences of, respectively, state and trait affect. Additionally, studies on how the five-factor personality model's dimensions influence impulse buying have also produced contradictory results. Moreover, while the established link between trait affect and personality suggests dimensions of this latter could account for whatever influence the former has on impulse buying, no study has yet attempted to examine this possibility. We draw on self-regulation theory to examine three unanswered questions: (1) the extent to which trait affect influences impulse buying whilst controlling for state affect; (2) establish which dimensions of the five-factor personality model predict impulse buying; and (3) test whether or not any influence of trait affect on impulse buying is additive to the effects of the five-factor personality model. Analyses of cross-sectional data (. n=. 842) find that trait affect does have a significant (. p
Purpose: Handbills are an interesting advertising medium since they are distributed by people in a social context. Little, however, is known about why handbills are often avoided. This study was designed with the purpose of extending previous research on advertising avoidance by using social psychological variables to explain consumers' avoidance of handbills in Hong Kong and the UK. Design/methodology/approach: A survey of 337 individuals was conducted (166 in Hong Kong and 171 in the UK). A series of hypotheses relating to perceived handbill clutter, perceived goal impediment, and the perceived manner of the distributer were tested. Findings: Perceived handbill clutter was found to be the strongest predictor of handbill avoidance in both Hong Kong and the UK. The second strongest predictor was perceived goal impediment. The perceived manner of the distributor did not predict handbill avoidance in Hong Kong, but it did predict handbill avoidance in the UK. Research limitations/implications: The study's methodology has a number of limitations. First, the measure of the distributor's perceived manner may not have directly tapped the distributor dimensions of importance to handbill avoidance. Second, no account was taken of non-response bias. The model also did not recognize that there may be other variables capable of explaining handbill avoidance. Practical implications: The results suggest that effort is needed to raise the perceived value of handbills so that their perceived value neutralizes any perceptions of goal impediment. In addition, handbill designers need to find creative ways to stand out from the clutter. In the UK, deportment should be considered when distributors are recruited and trained. Originality/value: Handbills are frequently used as a promotional tool. In two contrasting countries, this study found that perceived handbill clutter, perceived goal impediment, and perceived manner of the distributer influence handbill avoidance. The research has extended theoretical knowledge related to advertising avoidance and generated insights that are likely to be of practical value to marketers. © Emerald Group Publishing Limited.
Purpose – The purpose of this study was to assess the utility of the homophily theory and the related concept of source similarity which predict that a male salesperson is more effective in serving male customers, and a female is more effective with females. For products designed to enhance female attractiveness, however, Darwinian theories of reproduction suggest that a male may be more effective than a female in dealing with female customers. This study of Hong Kong consumers examined the possibility and, in doing so, challenged the assumed utility of homophily in selling cosmetics. Design/methodology/approach – Two studies were conducted. The first was an experiment where female subjects were asked to report their responses to female and male salespersons selling cosmetics. The second study was a phenomenological study exploring the responses of female customers who had encountered male salespeople in cosmetics shops. Findings – The experiment found that a male salesperson tended to induce significantly stronger purchase intention than a female, and that salesperson credibility (specifically, trustworthiness and attractiveness) plays a significant role in mediating the impact of salesperson gender on purchase intention. The follow-up phenomenological study of female customers who had encountered male salespeople in cosmetics shops supported the experimental findings and offered additional support for their evolutionary basis. Research limitations/implications – Darwinian theories of reproduction and source credibility together offer a more complete explanation for the effectiveness of salespeople in the gender-sensitive cosmetics market. However, the experiment involved creating fictitious salespeople matched for trust, expertise and attractiveness. The artificiality of the treatments was necessary to construct a controlled scenario to uphold internal validity, but it may limit the generalizability of the results. Practical implications – To encourage a positive consumer response, retailers need to consider salesperson gender and training. In some specific contexts (such as the selling of products designed to enhance female attractiveness), male salespeople ought to be used ahead of female salespeople, and those male salespeople need to have high credibility to be effective. However, as such, salesmen may not be seen as more expert than saleswomen; expertise needs to be an area of focus in terms of salesperson training. Originality/value – The results of previous research testing homophily theory suggest that a salesperson of the same gender as the customer ought to induce stronger purchase intentions. This study has shown that for the selling of appearance-related products, gender heterophily may be more effective than homophily. Darwinian interpretations of intrasexual rivalry and courtship might help explain why males sell cosmetics more effectively. © Emerald Group Publishing Limited.
A study was conducted to examine how interpersonal norms, media norms, attitudes, perceived behavioral control, perceived barriers, and self-efficacy had an influence on healthy eating intention among adolescents. A probability sample of 544 adolescents aged 12 to 18 was conducted. Results indicated that girls had a more favorable attitude and intention toward healthy eating than boys. Healthy eating intention among boys was predicted by attitude, perceived behavioral control, perceived barriers, and self-efficacy, and among girls was predicted by perceived behavioral control and self-efficacy. Different marketing strategies to promote healthy eating among adolescent boys and girls should be adopted. © 2014, Copyright Taylor & Francis Group, LLC.
Purpose: Charitable organizations need to have an in-depth understanding of their donors in order to retain their donations and attract new donors. This is particularly the case when the relationship with the donor is expected to be sustained rather than a one-off donation. The purpose of this phenomenological study is to discover the essence of donors' experiences of joining a child sponsorship program. The central research question is: What does it mean to be a child sponsor? Design/methodology/approach: A phenomenological methodology was used to explore the experiences associated with charitable giving for individuals providing long-term financial support to disadvantaged children. Findings: An analysis of 84 significant statements from a series of in-depth interviews revealed that sponsors experience both gains and losses from sponsoring a child. Financial ability and peers are influential in motivating child sponsorship, but the decision to sponsor a child is often not shared with family members. Sponsors indicated that they want to establish a close relationship with their sponsored child and they tend to sponsor children whom they perceive as similar in some respect to themselves. Research limitations/implications: The study focused on existing sponsors and did not consider lapsers. Second, although interviewing was continued to the point of saturation, and although the sample size was relatively large for a phenomenological study, caution must be exercised when trying to extrapolate the findings to a broader population. Practical implications: Charities should take a proactive role in managing communication between beneficiaries and sponsors. It is particularly important for the beneficiaries to communicate with the sponsors so as to give the sponsor the feeling of sponsoring a friend/family member. Charities could encourage their current sponsors to actively share their happiness and satisfaction with their friends. Testimonials and referral programs wherein happy sponsors share their experiences with potential sponsors would probably be productive. Finally, charities should aim to match sponsors and beneficiaries, at least in terms of nationality. Originality/value: This is the first study to investigate long-term charitable giving using an interpretative framework. The findings extend understanding of the experiences underlying sustained charitable giving and will be useful for charitable organizations seeking to understand more about the experiences of sponsors. Consideration of the findings will help charities maintain long-term donor relationships and encourage more people to undertake long-term sponsorship commitments. © Emerald Group Publishing Limited.
Purpose: The purpose of this study is to describe the shopping experiences of males and females. The central research question is: what does shopping mean for males and females? The sub-question related to this central research question is: what are the differences in male and female experiences of shopping? Design/methodology/approach: Using a phenomenological method, a study was conducted of the shopping experiences of males and females. This involved in-depth interviews, an analysis of significant statements, and generation of core themes. Findings: The analysis revealed six core themes that highlight the differences in how males and females experience shopping. Categorizing these six themes into textural and structural descriptions of the phenomenon culminates in an essence that depicts shopping as being a pleasurable experience for females but not so pleasurable for males. Through an inductive process, the authors argue that these findings are most suitably explained within an evolutionary psychology framework. Research limitations/implications: First, the sample consists solely of Hong Kong shoppers. Second, although every effort was made to validate the findings, with an interpretivist study of this nature, the interpretations can be challenged. Practical implications: Based on the evolutionary instincts of consumers, retailing tactics can be developed to cater for the needs of males, females, and couples. Originality/value: While many quantitative studies have been conducted of the shopping behavior of males and females, none have deeply probed the shopping experiences using a qualitative line of inquiry. By seeking to discover the essence of the experience of male and female shoppers, this phenomenological research fills the gap in the existing literature. © Emerald Group Publishing Limited.
Research on the dimensionality and measurement of luck beliefs has yet to produce a clear conceptual and metrical consensus. This research theorizes a bidimensional model of luck beliefs that is tested through a series of studies (total n=1205) validating the new Belief in Luck and Luckiness Scale. Unlike existing conceptualizations and measures, this new model is applicable to both believers and non-believers in luck, and reveals belief in luck and personal luckiness to be discrete, uncorrelated, and respectively unidimensional constructs. © 2012 Elsevier Ltd.
This article aims to examine young consumers' perceptions of healthy eating, contexts where healthy or unhealthy eating are practiced, and their evaluation of regulatory measures that discourage the consumption of unhealthy foods in two different markets. A convenience sampled survey was conducted of 386 Danish and Chinese adolescents using a structured questionnaire. Results showed that perceptions of healthy eating were generally based on concepts such as balance and moderation. Unhealthy eating was most frequently practiced at parties and in festive periods. Hong Kong respondents were more likely to associate eating habits with healthy eating than Danish respondents. Danish respondents were more likely to practice healthy eating at schools than Hong Kong respondents. Making tanks of cold water freely available everywhere was perceived to be most effective in discouraging the consumption of soft drink. There were age, gender and market differences in attitudes toward selected regulatory measures that discourage the consumption of soft drinks. Health educators and public health campaign designers should design health communication messages that target different perceptions of unhealthy eating, as well as different unhealthy eating contexts. Policy makers should be aware of the difference in local environmental conditions when designing regulations to encourage healthy eating. The study is an innovative attempt to examine adolescents' perception of healthy eating and attitudes toward food regulatory measures in more than one consumer market. © 2011, Emerald Group Publishing Limited
Purpose: It is common for companies to sponsor sports teams. The aim of this paper is to examine experimentally the impact of two team attributes (team performance and the presence of a star in the team) on consumers' intention to purchase the sponsor's product. The moderating role of team identification on the relationship between these two team attributes and intention to purchase is also to be studied. Design/methodology/approach: An experiment was conducted in Hong Kong. A series of hypotheses relating to team performance, presence of stars in the team, and team identification were tested. Findings: Team performance significantly influenced consumers' intention to purchase the sponsor's product, and this influence was more pronounced for casual than for avid fans and more pronounced when the team contained a star. A winning team with a star generated the strongest purchase intention. A losing team with a star produced the lowest purchase intention. Research limitations/implications: The trade-off between internal and external validity when using experimental research methods constitutes the main limitation of this study. This limitation aside, the study suggested that sponsors should try to sponsor a winning team, especially if it contains a star player. A sponsor of a losing team might encourage the team management to take actions that increase the level of team identification among consumers. If the losing team also contains a star, the sponsor ought to promote other strengths of the team instead of focusing on team performance. Originality/value: The paper extends previous work in the area by examining how team performance and the presence of a star in a team impact intentions to purchase the sponsor's product, and how team identification moderates the influence of these two attributes. © Emerald Group Publishing Limited.
Purpose: Globalization and outsourcing have decoupled country of origin into the country of origin of manufacture (COM) and the country of origin of the brand (COB). This study seeks to extend the work of Gurhan-Canli and Maheswaran and Lee et al. by investigating the interactive influence of COB and personal involvement with a product on purchase intention. Design/methodology/approach: A total of 168 young adults in Hong Kong were intercepted for mall interviews and presented with mock advertisements for personal computers ostensibly with brands originating in Japan and Korea. Their personal involvement with such products was measured using an instrument designed by Zaichkowsky, and their purchase intentions were self-assessed. Findings: COB was found to predict purchase intentions among consumers with a low level of personal involvement with computers, but not among consumers with a high level of personal involvement. Research limitations/implications: First, to improve internal validity, the study involved a single product type and a sample limited to 15-34 year olds. However, this improvement in internal validity places limitations on generalisability. Second, a median split was used to divide the subjects into low and high involvement groups. Third, only one dependent variable, purchase intention, was studied. Practical implications: For marketers whose product is branded in a country with a favorable image, emphasizing the COB would be appropriate when communicating with low involvement consumers. Marketers whose product is branded in a country with a less favorable image ought to emphasize other peripheral cues when communicating with low involvement consumers. Originality/value: By finding that COB has a significant impact on the purchase intentions of low involvement consumers, but not with those more highly involved, this research constitutes a small but important extension of the conclusions of Gurhan-Canli and Maheswaran and Lee et al.
A survey was conducted of 386 Danish and Hong Kong adolescents aged 11 to 16. Results showed that the consumption of relatively unhealthy food was common among respondents. Looking at socializing agents, respondents claimed that parents asked them to eat healthy food more often than the government publicity, teachers, or friends. Parents were also perceived as being the most effective source in encouraging them to eat healthy food. Respondents considered news and fear appeals for communicating healthy eating the most effective, while popularity and achievement appeals were considered less effective. There were some gender and age differences in the liking and perceived effectiveness of five advertising appeals. Respondents with higher collectivism scores showed a higher liking and perceived effectiveness of advertising appeals.
One of the key debates in the sponsorship literature has been the importance of congruence between a sponsor and the event being sponsored. Functional sponsorship congruence describes a situation where the sponsor's product or service is aligned intrinsically with the event. Image congruence, in contrast, exists when some aspect of an event's image is similar to some aspect of the sponsoring brand. Little work, however, has been undertaken on the interaction between functional and image congruence. Is it worth sponsoring an event if there is low functional and/or low image congruence? Or would the sponsor (ignoring altruistic motives) be better off leaving the money in the bank? From a service perspective, this study investigated such interactions by means of an experiment using representative mock advertisements. No evidence was found of interaction effects between functional and image congruence, which suggests a compartmentalization of congruence rather than its being a multi-dimensional construct. Sponsorships involving low functional and low image congruence were found unable to create more favorable communication outcomes than no sponsorship at all. Managerial implications are discussed and future research directions suggested.
Advertising avoidance remains one of the most challenging elements in campaign planning. Strong commercial production values, glossy magazine advertisements and the endorsements of highly paid celebrities count for little if people simply avoid the advertising. This study builds on previous research on the topic by extending the range of psychological variables examined and assessing their influence in China, a country where advertising has a relatively short history. Survey data are collected on advertising avoidance in China. The article proposes a new passive-active framework to explain observations of avoidance behavior. The results of interviews with over 400 respondents in Shanghai indicate that general attitudes towards advertising are an important predictor of advertising avoidance in both broadcast and print media, with a more negative attitude towards advertising resulting in higher levels of advertising avoidance. The presence of others and individual time pressure are important predictors of advertising avoidance in the broadcast media.
Purpose: The purpose of this paper is to look at product reviews from a cross-cultural perspective. Product reviews are potentially an influential form of marketing communication, as well as a predictor of sales performance. With Hofstede's typology as a backdrop, the basic proposition of this study is that collectivistic cultural values place more emphasis on giving face to others, even in impersonal social environments, resulting in them giving more positive product reviews than their individualistic counterparts. Design/methodology/approach: The paper uses content analysis of Chinese and American computer game reviews to test the hypotheses. Findings: The results showed that Chinese reviews use fewer negative comments and give higher final ratings for the same set of products than their American counterparts. In addition, Chinese reviews showed a lower consistency between their evaluative comments and their final ratings. Also confirmed is a common belief that final ratings are a summary of the evaluative comments of the review-texts. Research limitations/implications: Future research is invited. Practical implications: Theoretically, the study refines the understanding of differences between individualistic and collectivistic cultures. Practically, it is suggested that if consumers' cultural values are reflected in product reviews, international marketers should weigh and balance possible cultural bias when they decode evaluations of their products from reviews published in other countries' media. Originality/value: Product reviews are a rich but ignored resource with high marketing value. It is hoped that the study can stimulate both marketing researchers and practitioners to make better use of product reviews to further understand marketing phenomena and make better marketing decisions. © Emerald Group Publishing Limited.
Purpose - This study aims to look at the conventional wisdom with regards to budgeting methods, processes, and sophistication in light of recent macro work relating budgetary approaches to risk-taking. Design/methodology/approach - Based on a survey of UK advertisers and personal interviews, current advertising and promotions budgeting methods and processes are summarized. A series of hypotheses relating risk, process and experience to advertising and promotions budgeting sophistication were tested. Findings - UK advertisers were found to use a variety of budgeting methods (two methods on average per company). Judgmental methods dominate, especially the "what is affordable" method, but at the same time more sophisticated methods like objective and task and measurement techniques (in particular return on investment) were solidly represented. The relationship between budgeting sophistication and risk was investigated, the premise being that risk and budgeting sophistication are inversely related, as well as budgetary processes and marketing experience. Research limitations/implications - Considerable insight is provided into the methods and processes being used. It is concluded that the explanation as to why firms use sophisticated or unsophisticated methods for setting their advertising and promotion budgets is largely related to organizational culture. Originality/value - Just over 1.5 percent of the UK's gross domestic product is spent on advertising and promotions (£19 billion). The study suggested that the primary reason for the lack of consensus on budgetary sophistication is that stakeholders involved with budgeting are far less concerned with specific methods than dealing with cultural norms, personalities, access to supporting data and policies and practices. © Emerald Group Publishing Limited.
Purpose - This study aims to explore perceptions of healthy/unhealthy eating, and perceptions of various socializing agents encouraging healthy eating, amongst Chinese adolescents. Design/methodology/approach - A survey was conducted of 152 seventh, eighth and ninth grade Hong Kong students. A structured questionnaire with closed-ended questions was distributed in three public secondary schools. Findings - Results showed that respondents frequently ate out with friends and frequently consumed a range of relatively unhealthy food (candies, chips, and soft drinks). They perceived that a balanced diet and eating at a regular time were the most important attributes of healthy eating. In terms of situational influences on their consumption, respondents most likely ate unhealthy food at parties, when eating out or with friends. They most likely ate healthy food at home and when they were sick. Looking at socializing agents, respondents claimed that parents and government publicity asked them to eat healthy food more often than teachers or friends. Parents were also perceived as being the most effective source in encouraging them to eat healthy food. In terms of alternative advertising appeals discouraging unhealthy eating, respondents considered news and fear appeals to be the most effective, while popularity and achievement appeals were considered to be relatively less effective. Research limitations/implications - The respondents were chosen from three secondary schools (two co-ed schools and one school for boys). These three schools may not be representative of all schools in Hong Kong or elsewhere, thus limiting the generalizability of the findings. Practical implications - The study can serve as a guideline for social services marketing professionals targeting adolescents. Looking at the findings in relation to socializing agents, social services marketers can consider influencing the adolescents' eating habits through the parents. As government publicity was perceived as a relatively weak socializing agent, there is a need to review health education materials targeting adolescents. Looking at the findings in relation to different advertising appeals discouraging unhealthy eating, news and fear appeals should be considered, as these were considered relatively more likeable and effective than other types of appeals. Originality/value - The paper offers insights into designing communication strategies for adolescents. It is original in that it focuses on adolescents, and explores the perceptions of various socializing agents influencing healthy eating.
Purpose: The aim of the research reported in this paper was to identify for which types of products and services consumers find the advertising to lack credibility and in which media this effect is most serious. The association between self-esteem and skepticism towards advertising was also explored. Design/methodology/approach: Using a structured questionnaire, 200 Hong Kong shoppers were surveyed in mall intercept interviews. Findings: The results showed that ads for weight-loss products were considered the least credible. The broadcast media (radio, broadcast television and cable television) were considered the most credible advertising media, while direct mail and the internet were considered the least credible. Self-esteem was found to be positively related with skepticism towards advertising. Research limitations/implications: The study had two key limitations. First, the list of products and services was not exhaustive. Second, the study did not consider how frequently the interviewees were exposed to each medium. Practical implications: By recognizing the credibility of their advertisements and the media in which they are placed, and the influence of self-esteem on advertising skepticism, the findings are of use to advertisers in formulating their strategies. The findings also provide information of value for policy makers trying to combat non-credible and deceptive advertising. Originality/value: The primary contribution from this work comes in the form of methodological considerations. This is the first study to consider the relationships between self-esteem and skepticism after controlling for socially desirable responding. Also, this study takes a broader perspective by looking at credibility of advertising across a range of products and media, and with a broader audience, than has been considered in previous research. © Emerald Group Publishing Limited.
Purpose - The purpose of this study is to investigate how the interplay of valences (positive or negative) between review texts and ratings affects consumers' reactions to the reviews and the product being assessed. Design/methodology/approach - An experimental design with hypothetical movie reviews was used to investigate how inconsistent text-rating reviews affect people's intention to consume a particular product and their perceptions of the review itself. Findings - It was found that text valences (positive or negative) significantly influence how subjects perceive the interestingness and trustworthiness of reviews. The texts also have an influence on the subjects' movie-attendance intention compatible with their valence. In addition, a cross-over interaction was found between texts and ratings that affects a review's trustworthiness. Research limitations/implications - The study enriches understanding of consumer decision making when different formats of information about the same object are presented. Practical implications - Marketers can benefit by incorporating review texts and rating valences to enhance the prediction accuracy of their products' sales performances. Review publishers can get a better understanding of how to present their reviews to enhance their perceived interestingness and trustworthiness. Originality/value - Product reviews are commonly found in the mass media. These reviews use ratings as evaluative summaries of the texts. However, little research has been conducted regarding the communication effects that the ratings have in relation to the texts. The study seeks to fill this gap.
Purpose - The purpose of this paper is to explore Chinese adolescents' perceptions of healthy eating, their perceptions of various socializing agents shaping their eating habits, and their opinions about various regulatory measures which might be imposed to encourage healthy eating. Design/methodology/approach: Four focus group interview sessions were conducted with 22 eighth and ninth grade adolescents (aged 13 to 15) in Hong Kong. Findings: The participants perceived a balanced diet and regular meal times as the most important attributes of healthy eating. Participants were most likely to eat unhealthy food at parties, during festivals, and when socializing. They reported that mothers and teachers often advise them to eat healthy foods. They felt that banning the sale of soft drinks in schools and at sports centers and/or increasing the price of soft drinks might discourage their consumption, but felt that banning soft drink advertisements and/or making free drinking water more available would be ineffective. Research limitations/implications: The interviewees were mostly from low to middle income families. They may not be representative of all adolescents in Hong Kong or elsewhere, thus limiting the generalisabilty of the findings. Originality/value: The study serves as a guideline for social services marketing professionals targeting adolescents. Social services marketers might consider influencing adolescents' eating habits through the parents and school teachers. Restricting selling of soft drinks at schools and sports centers and increasing the price of soft drinks should be considered, as these were considered relatively more effective than other measures. Seven testable hypotheses are proposed to guide further research.
The effect of buyer belief in good luck on the propensity to select a sales promotion strategy involving a lucky draw (e.g., sweepstakes) is investigated using a sample of 699 individuals in Hong Kong. Using subscales from Darke and Freedman's (1997b) Belief in Good Luck Scale, it is found that a belief in being personally lucky is associated with selecting a lucky draw over other sales promotions options, but that a general belief in the phenomenon of luck is not. Moreover, it is found that perceived utility of the lucky-draw prize is consistently associated with the option to select a lucky draw over other sales promotion strategies. © 2008 Wiley Periodicals, Inc.
Materialism is an important issue, especially among young people, and especially in a Chinese context. Based on a theoretical model of the endorsement of materialistic values among Chinese youth, the objectives were to examine the influence of interpersonal communication on social comparison, and the influence of advertising viewing on imitation of celebrity models. In turn, the study examined how both social comparison and imitation of celebrity models contribute to young people's endorsement of materialistic values. A mall intercept survey of 631 young people aged 15-24 in Hong Kong revealed that peer communication and susceptibility to peer influence had strong positive relationships to engagement in social comparison. Motivation for viewing advertisements had a strong positive relationship to imitation of celebrity models. In turn, both social comparison and imitation of celebrity models were positive predictors of materialism. © Warc 2008.
Previous research has classified offensive advertising into matter (offensive products and services) and manner (offensive execution). This study was designed to (1) develop a more comprehensive schedule of offensive advertising and (2) identify the psychological predictors of taking offense. A survey conducted in Hong Kong and Shanghai showed that offensive advertising could be classified into three categories: advertisements dealing with offensive sexual matter, advertisements for offensive nonsexual matter, and advertisements displaying an offensive manner. Of these categories, manner was perceived as the most offensive. Self-esteem and susceptibility to interpersonal influence both were significant in predicting the level of offensiveness for all three types of offensive advertising.
Materialism and social comparison are important issues, especially in a Chinese context, and especially amongst adolescents. In this paper a theoretical model of the endorsement of materialistic values and social comparison by adolescents was proposed and tested. A survey of secondary school students in Hong Kong revealed normative peer influence and peer communication were positive predictors of social comparison with friends. In addition, motivation for advertisement viewing was a positive predictor of social comparison with media figures. Social comparison with friends and with media figures were both positive predictors of materialism. The implications are discussed, with recommendations for further research. © Society for Personality Research (Inc.).
While Hong Kong and Mainland China are fused politically, they are in every other sense quite separate. Product, piracy in China is a serious problem for multinationals wishing to do business there. This study attempts to gain a greater understanding of the profile of buyers of pirated products in Hong Kong and Shanghai. Issues examined include buyers' purchasing behavior, materialistic attitudes and conformity motivation. Two major categories of pirated products were explored: pirated VCDs and pirated clothing and accessories. Personal interviews with more than 700 Hong Kong and Shanghai consumers who knowingly buy pirated products revealed that in both cities pirated products are most often purchased for the buyers and/or their families, and are identified mainly by their price and buying location. Shanghai tended to have a higher number of heavy buyers of pirated products than Hong Kong. Indeed, location was significant in predicting heavy and light pirated product buyers. While materialism did not effectively distinguish heavy from light buyers within either city, conformity was found to have a positive effect on the purchase of pirated VCDs in Hong Kong. Based on the findings, recommendations are made for reducing the market demand for pirated products, and for future research. © 2006 by The Haworth Press, Inc. All rights reserved.
By absorbing advanced knowledge and business practices from their overseas partners, international joint ventures (IJVs) have helped the development of many aspects of Chinese business. Do IJVs in China use more sophisticated advertising budgeting methods than their local counterparts? To test this, a construct was devised to measure budgetary sophistication, taking into account the tendency of firms to use multiple methods. Then, personal interviews were conducted with over 200 advertisers in China, representing a mix of Chinese state-owned enterprises (CSOEs), IJVs, and private companies. Their budgeting sophistication scores were then related to demographic, attitudinal, and behavioral variables. Results showed that the most common budgeting method used was "judgmental" and the most common decision-making process was "bottom-up, top-down." On average, firms used more than two budgeting methods. IJVs and firms that adjust their budgeting methods for different profitability levels used more sophisticated budgeting methods. Theoretical implications are discussed, and recommendations are made for firms that are working in or considering entering the Chinese market. © 2006 American Academy of Advertising. All rights reserved.
Despite the popularity of sponsorship, there remains a paucity of research attention. This is especially the case when considering the product relevance issue (the fit between the sponsor and the activity being sponsored). In the past, relevance has incorrectly been treated in terms of two mutually exclusive categories: function-based similarity (where the sponsor’s product is used in the event being sponsored) and image-based similarity (where the sponsor’s image is congruent with that of the event). In reality, however, these two types of similarity can coexist. In this paper a new product relevance construct–integrated product relevance–is proposed. Research hypotheses are then formulated as to how integrated product relevance may affect consumer responses (in terms of quality perceptions, attitude towards the brand and purchase intention) to a sponsor’s products. Directions for future research are proposed based on this new construct. © 2006 Advertising Association.
Purpose - To investigate buyer attitudes and behaviour with respect to pirated products, in China, and to present findings potentially usable as the basis for planning effective marketing strategies to counteract this endemic competitive threat facing multinational entrants to the crucial Chinese market. Design/methodology/approach - Existing knowledge in the published literature was combined with inputs from focus groups in three cities to design and administer a questionnaire-based "mall intercept" survey in the same locations. Data were analysed and interpreted by means of principal component analysis and varimax rotation. Respondents were classified as heavy or light purchasers of pirated products, on criteria derived from the focus-group and survey findings. Findings - Responses from 1,152 buyers of two categories of pirated product suggest that tertiary-educated males in white collar occupations are heavy purchasers of pirated video discs, attracted by their speed of publication, variety and supply. Heavy and light buyers of pirated clothing and accessories has similar demographic and attitudinal profiles, and were mainly attracted by the appearance of the product. Both product categories were rated less positively on their ethical and legal dimensions, and on after-sales service. Research limitations/implications - Though the research sample was large and carefully controlled, the three cities in which data were collected, though chosen for their distinctive characteristics, cannot be considered representative collectively of the whole of China. Caution is, therefore, required in drawing general conclusions. Directions are suggested for future research studies. Practical implications - The findings provide useful marketing intelligence on an important phenomenon, and further suggest a number of strategies and tactics available to planners concerned to counter erosion of their market share in China by the producers and distributors of pirated products. Originality/value - Adds a fieldwork-based dimension to the body of knowledge about a serious challenge facing multinational marketers operating in the self-evidently crucial Chinese consumer market.
Supermarkets are heavy users of sales promotion devices and need to be able to assess the effectiveness of these tools. Consumer response (brand switching, purchase acceleration, stockpiling, product trial, spending more) to five different sales promotion tools (price discounts, in-store demonstrations, coupons, sweepstakes and games, and ‘buy one get one free’) was investigated through a survey of 206 supermarket shoppers in Hong Kong. Price discounts and buy-one-get-one-free offers were felt by the consumers to be the most effective promotional tools for inducing purchase acceleration, stockpiling and spending more. In-store demonstrations were felt to be mainly effective in encouraging product trial. Coupons were considered effective mainly in inducing stockpiling and purchase acceleration. Sweepstakes and games, in contrast, were felt to be relatively ineffective in terms of generating all types of consumer response. Recommendations for marketers are presented, along with suggested directions for future research.
A handbill (i.e., a leaflet distributed by hand) is a form of advertising especially common in high-traffic pedestrian districts. However, there are no previous reports in the literature relating to consumer perceptions of handbills as a promotional medium. This article reports on a telephone survey of a random sample of 240 interviewees in Hong Kong and represents a starting point for research on this topic. One hundred and seventy-four (72.5 percent) of the interviewees were classified as handbill acceptors, and 66 (27.5 percent) were classified as handbill nonacceptors. Among the handbill acceptors, 71.8 percent actually read the handbills. In addition, handbill acceptors were more likely to be female, younger, and to have had secondary or tertiary education. The main reason acceptors gave for taking handbills was to help the distributor finish his or her work promptly. The main reason nonacceptors gave for refusing handbills was that the handbills are distributed during peak hours, when they are too busy to stop. Handbill acceptors predictably had more favorable perceptions of handbill attributes than handbill nonacceptors. The findings are discussed in terms of their implications for advertisers and future research.
Cinema advertising offers a relatively less cluttered environment for advertisers to present their message to a captive audience. However, little is known about its effectiveness in countries such as Hong Kong (a city that is relatively underdeveloped in terms of cinema adspend). Building on the work of Ewing et al. (2001) and Dunnett and Hoek (1996), insights into perceptions of cinema advertising in Hong Kong were obtained from a survey of 150 interviewees. As opposed to previous studies, which utilised delayed recall, this study interviewed audience members immediately after they had viewed a particular movie. Results showed that cinema advertising exposure and recall rates were significantly related to various demographic variables, especially gender and age. Furthermore, the level of recall was found to be correlated with various situational stimuli in the cinema, such as the larger-than-life screen, Dolby stereo sound, the silent environment, comfortable seats and audience members’ expectations to focus on the screen. Based on these findings, recommendations for cinema managers and advertisers are made.
The majority of research about offensive advertising has been conducted in Western countries. However, little is known about consumers’ perceptions of offensive advertising in an Asian context, especially offensive advertising on the web. This study, conducted in Hong Kong, furthers Prendergast et al.’s (2002) study by including the web as a medium, and aims to identify what types of web advertising consumers find offensive, consumers’ tolerance of offensive advertisements on the web relative to offensive advertisements in other media, and the effects of offensive web advertisements on consumers’ purchase intention. Results from a survey of 240 interviewees indicated that gambling and chat-line services were considered the most offensive products to be advertised on the web. In terms of appeals, consumers were most sensitive to advertisements that contained nudity or had a sexist attitude. Perceptions of offensiveness and how it affects purchasing behaviour were clearly related to demographic variables such as age, educational status and gender. Relative to other media, interviewees were least tolerant of offensive advertisements on the web.
With a focus on the purchasing behaviour of parents buying luxury brands of infant apparel, this paper considers the concepts of buying roles, conspicuous consumption/social consumption motivation, and materialism. A survey of 134 mothers who had purchased luxury brands of clothing for their infants found that parents are motivated by the good quality and design associated with the luxury brands. The relationship between the amount of money spent by parents on luxury brands of infant apparel and social consumption motivation was not significant. However, interviewees who spent more on luxury clothing brands for their infants were determined to be more materialistic. It is thus recommended that marketers should emphasise the good quality and design of their luxury brands of infant apparel. In addition, marketers should promote the materialistic values of purchasing luxury brands of infant apparel, showing that buying luxury brands of infant apparel may be a route to happiness, rather than being a route for impressing others.
Intranets and their applications to internal communications have been of interest to academics and professional managers alike in the recent past. A generic measure to aid PR managers in measuring the effectiveness of their intranets has been reported, but there have been no replications thus far to confirm the psychometric properties of this scale. In addition, little is known about how effective intranets might enhance an organization's ability to disseminate information internally. This article discusses the results of an empirical study, which confirms the reliability and validity of the generic measure. Results also show that an effective intranet significantly enhances information dissemination within organizations. Managerial implications and avenues for future research are identified. © 2003 Elsevier Science Inc. All rights reserved.
China's accession to the World Trade Organisation has raised concerns about pirated and counterfeit products not only in China, but also in Asia in general. This research explores the demand determinants of Hong Kong consumers purchasing nondeceptive pirated brands. Utilising a structured questionnaire and counterbiasing statements, results from facetoface street intercept interviews showed low spenders on nondeceptive pirated brands are mainly students or bluecollar workers between the ages of 19 and 24, with secondary education and earning a monthly income of HK$1,999 or below. High spenders on nondeceptive pirated brands are mainly whitecollar workers between the ages of 25 and 34, with tertiary education and earning a monthly income of HK$10,000 to HK$19,999. Consumers identify nondeceptive pirated brands by their low price and buying location. The findings also demonstrate that the criteria for choice of nondeceptive pirated brands differ by product category. Based on these results, this paper makes recommendations for original brand manufacturers and policy makers for combating nondeceptive pirated brands. © 2002, MCB UP Limited
Studies considering links between store image and store loyalty, especially in an Asian context, are sparse. This article explores the relationship between store image and store loyalty in the Hong Kong fast-food industry. A survey of 200 users of fast-food restaurants revealed that functional attributes of store image are more accurate than psychological attributes when predicting the degree of store loyalty. Functional attributes of particular importance are waiting time for a seat, store environment and store location. However, some psychological attributes have an influence on store loyalty. Furthermore, the findings show that the more favorable the store image, the more likely consumers are to consume in a particular restaurant.
Considerable research has been conducted on offensive advertising in Western countries. However, not much is known about consumers' views of offensive advertising in an Asian context. This research, which was conducted in Hong Kong, aimed at identifying what product/service advertisements consumers find offensive, what executional styles consumers find offensive, consumers' tolerance of offensive advertisements in different media and the effects of offensive advertisements on consumers' purchase intentions. The results from a survey of 200 consumers showed that chat-line services and funeral services were considered the most offensive products or services to be advertised. When looking at the manner of advertising, sexist themes, indecent language and nudity were found to be the major reasons for the respondents finding advertisements offensive. In general, direct mail was considered to be a medium that prompts lower tolerance by consumers to potentially offensive advertisements while men and women's magazines were considered to be media that prompt higher tolerance to potentially offensive advertisements. Finally, it was found that levels of advertising offensiveness had an effect on purchase intentions.
Researchers have postulated that exposure to images of thin ‘ideal body’ women portrayed in advertising and editorial content on television and in magazines contributes to eating disorders among female college students in Western countries. The central aim of this study is to examine the relationship between such advertising and editorial, and self- reports of eating disorder and body image dissatisfaction among Hong Kong females. The Eating Attitude Test (EAT) and Body Dissatisfaction subscale in the Eating Disorder Inventory are employed in a survey of females in Hong Kong. The analysis indicates that overall media consumption is a positive predictor of eating disorder and body image dissatisfaction. Several policy recommendations and suggestions for future research are made.
China, with its history of a planned economy and current status of part-planned/part-market economy, presents an interesting environment for the advertising industry. However,the advertising industry in China is still somethingof a mystery, particularly in terms of client perceptions of advertising and advertising agencies.After examining the literature relating to China's advertising this article reports on a survey of 200 firms in Shanghai who use the services of an advertising agency. The results indicated that advertising's primary purpose is to increase awareness and sales. Contrary to what has been suggested by previous researchers, the firms in this study felt confident in their media and creative decisions (although they saw the effects of advertising as being difficult to estimate). Advertising agencies are used more for creative decisions rather than media decisions. Clients tend tohavean arm's length relationship with their agency in the sense that they let the agency carry out advertising activities and do not interfere in what the agency does. While not affected by the size of their clients, the agency relationship was affected by whether or not client firms had top-down or bottom-up decision processes.
Prior literature regarding offensive advertising relates mainly to western cultures. No work has been done on this area in an Asian context. The research in this article reports on a survey of Singaporean consumers. The survey aimed to identify what types of products and appeals consumers find offensive in advertising, the reasons why they find the advertisements offensive, and how this offensive advertising may affect their purchase intentions. The results found that advertisements relating to chat-line services and sexual diseases were the most offensive, followed by advertisements for dating services. Levels of offensiveness were clearly related to demographic variables such as gender and age. In terms of reasons for offensiveness, consumers were most concerned by advertisements that had a sexual connotation or evoked unnecessary fear.Levels of offensiveness also affected purchase intentions. Based on the results, the article recommends that advertisers and their agencies should think more carefully about the demographic profile of their audiences, how this profile might impact their audiences „sensitivity” to potentially offensive advertising, and how this sensitivity should be used as a guide when making media and message decisions.
Retail shopping bags are a form of secondary packaging, which are provided by retailers (free of charge) to customers as a means of transporting merchandise. In Hong Kong, the reuse of shopping bags is a common phenomenon. What are the important reasons for consumers to use and reuse shopping bags? What are the usage frequencies of different kinds of shopping bags? There are no published studies relating to shopping bags, therefore, this exploratory study aims to provide an initial insight toward consumer perceptions of shopping bags. After qualitative work, a survey consisting of a total of 200 personally-administered questionnaires was conducted at a selection of Hong Kong's Mass Rapid Transport (MRT) stations in Hong Kong. The target sample included males and females aged 15 or over, with an equal distribution of each gender. The findings indicated that the majority of interviewees would like to use and reuse paper shopping bags rather than plastic shopping bags. In addition, the interviewees desired different attributes from paper shopping bags when compared with plastic shopping bags. Finally, the relationship between the duration of keeping a shopping bag and the frequency of reusing the same bag is identified.
This research profiles consumers of pirated products, specifically pirated brands of clothing. Utilising a structured questionnaire and counter-biasing statements, results from face-to-face street-intercept interviews showed that low spenders on pirated brands of clothing are mainly people aged 19 to 24 with a blue-collar occupation, relatively low monthly income, secondary education level, and no children. High spenders on pirated brands are in the age bracket 25-34 with white-collar jobs, a monthly income of HK$10,000-HK$19,999, tertiary or university education, and children. Consumers identify pirated brands of clothing usually by lower price and buying location, but price was not the sole determinant for purchase. Finally, they bought the pirated brands mainly for private use. Based on these results, the paper makes recommendations to original brand manufacturers and policy makers for combating pirated products.
The 1980s and 1990s have seen the development of an interesting, diverse, and relevant body of literature on the advertising agency-client relationship. In recent times, an area of focus has been the application of organizational buying behavior principles to companies that are purchasing advertising services from advertising agencies. However, little is known about the application of such theories in the context of a developing country. After examining the literature relating to China's advertising industry and the application of organizational buying behavior principles in the advertising industry, this article reports on a survey of 200 firms in Shanghai. The results unexpectedly show that advertising agency power in the campaign development process is not related to the nature of the advertising task (new task, modified rebuy, straight rebuy) at hand. In addition, bottom-up processes give agencies the weakest power, and the client buying process is dominated by marketers, the salesforce, and public relations, with top managers the primary deciders.
The relevance of country image in the globalisation of international trade is questioned as products today are manufactured, designed, assembled and sold in different countries. Known as hybrid products, these are products branded or designed in one country but manufactured, assembled or have parts supplied by another. This trend is also perceived to have homogenised a consumer buying culture for many luxury brands. In the process, the recognition of brand names is accentuated, while the country of manufacture of a product may no longer be the most important determinant for evaluation of brand image and product quality. This paper therefore extends prior country of origin research by conceptualising the country of branding as a product evaluation tool for luxury brands. The strategic and managerial implications are presented to justify the proposal. Finally, some research initiatives are discussed.
With the globalization of international trade, consumers today are faced with a proliferation of products with multicountry affiliations (hybrid products). As such it is likely that the country of origin of manufacture of a hybrid product is no longer the most important determinant in the evaluation of brand image and product quality. This paper therefore extends prior country of origin research by conceptualizing the country of origin of brand as an alternative evaluation tool. In particular, an earlier definition of country of origin is revisited for its emphasis on the country of brand. We have also highlighted the strategic, conceptual and practical relevance in the form of future research propositions. The managerial implications are also presented. ©
Defining marketing's role within today's organization is often difficult and frustrating. The literature is equivocal: there is no universally accepted definition of marketing, no consensus on where the boundaries of the marketing function should lie, and no single theory of marketing [Carson, D. and McCartan-Quinn, D. (1994) Non-practice of theoretically based marketing in small business - issues arising and their implications. Journal of Marketing Theory and Practice Fall, 24-32]. Historically, marketing has had a functional responsibility. Many authors now argue that marketing is moving away from being a function and towards being an organizational culture or belief - a value system or philosophy that permeates all functions and levels within the organization. The problem, however, is that no model exists to facilitate our understanding of marketing in transition. To solve this problem this article turns to ecology, in particular the concept of ecotone. An ecotone is a zone of transition between two ecosystems. In this paper we argue that ecotones offer an insightful metaphor to explore marketing in transition. Specifically, understanding the form and management of ecotones can offer insights into the form and management of marketing.
The 1980s and 1990s have seen the development of an interesting, diverse and relevant body of literature on the advertising client-advertising agency relationship. Recently an area of focus has been the application of organizational buying behavior principles to companies who are purchasing advertising services from advertising agencies. However, little is known about such issues in China. This article reviews the literature relating to the application of organizational buying behavior principles in the advertising industry, and provides a background to China's advertising industry. Then, based on insights from both the literature and in-depth interviews in Shanghai, this article lists a set of propositions relating to organizational buying behavior in the context of the agency-client relationship in China. Future researchers can use these propositions to develop testable hypotheses relating to the agency-client relationship in China.
The 1980s and 1990s have seen the development of an interesting, diverse and relevant body of literature on the advertising client-advertising agency relationship. Recently an area of focus has been the application of organizational buying behavior principles to companies who are purchasing advertising services from advertising agencies. However, little is known about such issues in China. This article reviews the literature relating to the application of organizational buying behavior principles in the advertising industry, and provides a background to China's advertising industry. Then, based on insights from both the literature and in-depth interviews in Shanghai, this article lists a set of propositions relating to organizational buying behavior in the context of the agency-client relationship in China. Future researchers can use these propositions to develop testable hypotheses relating to the agency-client relationship in China.
The research covers a preliminary examination of the effectiveness of the advertisements (for a range of products and services) on the buses of Hong Kong’s leading bus company. Data were collected using personal interviews with more than 100 Hong Kong people over a period of five days. Not surprisingly, given that the target respondents were waiting at bus stops, exposure to exterior bus advertisements is relatively high. In addition, around 80% of interviewees could recall (aided or unaided) one or more advertisements with brand names. Those factors which draw and hold consumer attention to exterior bus advertising are advertisements which are colorful, interesting and have some feature which makes it noticeably different from other advertisements. Compared to US consumers, Hong Kong people are generally less opposed to tobacco and liquor advertising on the exterior of buses, although there is still considerable opposition. Exterior bus advertising was found to be more effective if consumers were highly involved with the prod- ucts/services being advertised, and if consumers had positive attitudes towards advertising in general.
As consumers' environmental concerns have risen over the past decade, many companies have responded with “green” products, processes and public relations. Superficial and even spurious firm responses have resulted in claims that marketers have cynically segmented and exploited green markets in an opportunistic way. However, whether the glibness of marketing managers or overall corporate policy is behind such claims has not been investigated. This paper explores the issue by assessing the personal attitudes, opinions and behaviour of senior marketing executives across a range of firms. The results suggest that the majority of marketers, in their personal lives, do in fact display attitudinal and consumption patterns consistent with environmental concerns. Hence, when the finger of green-market exploitation is pointed, it should perhaps be in the direction of wider corporate objectives and not at beleaguered marketers.
Builds on an article, which looked at tenant-manager relationships in shopping centres, published by the authors in IJRDM, Vol. 24 No. 9. Using data from the same research project, this article compares the views of shopping centre and non-shopping centre retailers. Despite many countries having seen a substantial growth in the number of shopping centres, not all retailers choose to locate within a shopping centre, and some retailers actively oppose shopping centres. A survey of clothing retailers in New Zealand showed that retailers in centres tended to have higher sales turnover than those outside centres. Retailers inside centres believed much more strongly that there are opportunities in locating within a centre. The main reasons for retailers not locating in centres were that the levels of rent are too high and the trading hours are too long.
Branding has traditionally been viewed as an essential tool for marketers to establish an identity for their products. Even products among the commodity range make use of branding to establish a position for themselves in the market. Recent times, however, have seen the emergence of unbranded or “generic” products. These products, which are usually sold at a price which is lower than their branded equivalents, are most often found in the area of low‐involvement grocery items. Previous studies of consumer perceptions suggest that while consumers see generics as being less expensive than their national branded equivalents, they are also seen as being inferior in quality. This research goes beyond comparing generic products to their national brand equivalents by comparing generic products to one another, in order to ascertain whether the “low price‐low quality” perception is more applicable to some generic products than others. A mail survey of 1,000 New Zealanders revealed that, in contrast to previous studies, generic consumers tend to be older and on a lower household income. The more standardized generics (such as rice) received more favourable ratings than the more processed generics such as coffee and shampoo, although there were significant differences in the respondents’ perceptions across different demographic groups. The results suggest that it is unwise for marketers to draw sweeping conclusions about consumer perceptions of generic products in general. Rather, each generic product, when compared with other generic products, has its own consumer perception and, therefore, each generic product requires different attention from different elements of the marketing mix.
Explores the problems of “counting” hits and visits to Web sites on the World Wide Web. Nominally, cyberspace offers unrivalled monitoring and tracking potential when compared with other marketing media. However, further inspection reveals some complicating factors. Identifies the phenomenon of cache memory, the use of proxy servers and trawler software and explores their influence on under- and over-counting. Drawing on the hierarchy of effects model developed by Berthon et al.(1996), presents a series of correction factors. Concludes that the problem of accurate counting on the Web is a new manifestation of an old problem: old wine in new bottles.
There is pressure from both consumers and the European Union or EU (formerly the European Community or EC) for companies to adapt their activities in order to minimize the imapct on the environment. This paper reviews literature relating to packaging, the environment, and European legislation, and then identifies the current status of the proposed EU Directive on Packaging and Packaging Waste. To gain an insight into packaging and the directive, a survey was conducted with UK Marketing executives involved in the production of consumer goods. The survey found that the primary function of packaging is to protect the product until it is ready for use. The Marketing function carried the most influence within the organization when it came to making packaging decisions and, in the majority of cases, packaging accounted for less than 10% of overall product costs.
Branding has traditionally been viewed as an essential tool for marketers to establish an identity for their products. Even products among the commodity range make use of branding to establish a position for themselves in the market. Unbranded or “generic” products, therefore, tend to go against this branding principle. These products, which are usually sold at a price which is lower than their branded equivalents, are most often found in the area of low-involvement grocery items. Previous studies of consumer perceptions of generic products tend to be broad in their scope by looking at generic products as a product category, rather than seeking consumer views on individual generic products. This paper identifies the characteristics of generic purchasers, and their broad perceptions of generic products as a group; and, the research extends previous work in the area by comparing a range of individual generic products to each other in terms of their value, quality and packaging. In addition, the research identifies how much importance consumers attach to value, quality and packaging when buying these individual products - in generic form or otherwise. A mail survey of 1,000 New Zealanders revealed that, in contrast to previous studies, generic consumers tend to be older and on a lower household income. In general, consumers do not believe that generics are substandard products. However, when looking at individual generic products, the less standardized generic products are not performing as well as others when it comes to consumers’ perceptions and demands. Proposes that if generic products are to have a recognizable future, it may be necessary to embark on a program which enhances consumer perception of the quality and value of the less standardized generic products.
Recent times have seen the emergence of unbranded or “generic” products. These products, which are usually sold at a price which is lower than their branded equivalents, are most often found in the area of low-involvement grocery items. Previous research on generic products appears not only to be incomplete and inconclusive, but has been conducted in relatively mature markets. This paper examines in more detail the current consumer perceptions of generic products in the relatively young New Zealand market. Results of a consumer survey suggest that generics are generally accepted by a broad spectrum of society and are not necessarily perceived as being more appropriate for certain groups, although usage tends to be significantly higher amongst older age groups and lower household income groups. Generics are seen as being a sensible buy which have a lower price than their branded equivalents but not necessarily seen as being lower quality products or the type of products which people are embarrassed to buy or consume publicly. Not all products, however, lend themselves easily to the generic concept. This is especially so for those products which have less predictable or less consistent quality.
Presents research which explores tenant-manager relationships in managed shopping centres. In order to address this issue a sample of 16 shopping centre managers and 45 clothing retailers within these centres was taken in the lower North Island of New Zealand. Clothing retailers were chosen because of their tendency to locate in centres. Results showed that most managers were located at the centre site - which assists in manager-tenant communications. Managers tended to set tenant rent based on the area and site to be leased. When it came to shopping centre managers selecting tenants, store credibility and willingness to take part in public relations activities were the most important factors. Once the tenants were selected, managers encouraged most of them to contribute to an in-house marketing fund. When it came to specific relationship issues, managers tended to have more positive views of their relationship with the tenants than the tenants themselves. Concludes that, although the centres have enjoyed success in New Zealand until now, there is still a need for managers and retailers to strive to work together in order to benefit equally from the relationship they have.
Little research has been done on the impact of social decision schemes on group process variables. Green and Taber created a self-report scale to provide five measures of the group process. These measures deal with the descriptions of an individual’s behaviour as well as others’ behaviour towards a specific person. The items within each measure also probe evaluative ratings of several specific group processes and outcomes. Evaluates the relationship between the process variables and a dependent performance variable - the profit achieved by groups in a marketing simulation game - in an attempt to shed further light on the group process in strategic marketing decision making. A factor analysis reveals a reasonably close concurrence of the experimental data and that of the Green and Taber instrument, leading to the conclusion that the two sets of data were of a similar structure. Attempts to establish a relationship between the Green and Taber process variables and profit. Concludes that negative socio-emotional behaviour and solution satisfaction are positively related to group success. Therefore, the opportunities for negative socio-emotional behaviours such as rejecting others’ positions, arguing and criticizing seem to be worthy of exploration. Since solution satisfaction returned a significant regression, finds that the give-and-take arguments of socio-emotional behaviour contributed to solution satisfaction.
Professional services suffer from a dearth of literature on marketing, especially in New Zealand. Like other professional services, consulting engineers have expressed particular concern on how to adapt to the present competitive environment. A survey of New Zealand consulting engineers indicated that the use of marketing techniques within consulting engineering practices is uncoordinated in nature and there is disagreement as to the most effective method of attracting clientele. The lack of coordination of marketing techniques is best illustrated by the majority of consulting engineering practices competing on price, while actually perceiving service quality as the most important method for success. Within consulting engineering practices, marketing is becoming a legitimate management function. However, evidence can be seen to illustrate that the 'trappings' of marketing prevail rather than the 'substance' which is needed to have the customer-driven orientation fundamental to the implementation of the marketing concept.
Identifies, via a mail survey of UK marketing executives, who makes the sales packaging (i.e. primary packaging) decision within the company, and the extent to which these individuals perceive trade‐offs between the traditional marketing and logistical functions of a sales package, and environmental pressures to reduce, recycle and reuse packaging. Finds that the primary function of sales packaging is to protect the product until it is ready for use. The marketing function carries the most influence within the organization when it comes to making the sales package decision and, in the majority of cases, sales packaging accounts for less than 10 per cent of overall product costs. Claims the majority of respondents did not see a trade‐off between the marketing and logistical function of the sales package and the environmental demands to reduce, recycle and/or reuse sales packaging. However, reports that respondents did agree that sales packaging is a major environmental concern and, assuming it is not possible to have a sales package which both enhances the saleability of the product and is compatible with the environment, the ability of the sales package to sell the product is more important than its compatibility with the environment.
The service industry has several unique characteristics. Since the client is also present as the service is produced, provider-client interaction is a special feature of services marketing. This provider-client interaction is being challenged due to self-service technology, especially in the banking industry. Previous research by the authors (Marr and Predergast, 1990 and 1001) suggests that not all customers accept this innovative change. Some customers, after adopting self-service technologies, have abandoned them and reverted back to obtaining services from a human staff member in a bank. Rogers (1962) has called this behavior “disenchantment discontinuance” in diffusion, which is where consumers reject an innovation (after they have adopted it) due to dissatisfaction with its performance, and revert back to their previous behavior. To date, no research has set out with the specific objective of examining the presence of disenchantment discontinuance. This paper examines disenchantment discontinuance by looking at customer use of self-service technologies in the retail banking industry. The survey of 302 banking customers indicated that there were less than significant levels of disenchantment discontinuance occurring.
Discusses the relationship between logistics, packaging and the environment. Attempts to clarify industry confusion by identifying the current status of the proposed EC Directive on Packaging and Packaging Waste, which focuses on the recovery of packaging materials. This directive has major implications for logistics. Presents a survey conducted with UK marketing executives involved with the production of consumer goods. Finds that awareness of the EC packaging directive is very high – especially among medium– and large‐sized companies. Respondents were concerned that the directive would create excessive distribution costs for their firm. Proposes that it is in this area where the benefits of information technology may be realized by allowing the efficient management of the increased volume of information created by reverse logistics. Finds that industry is somewhat unsure of what the directive is meant to achieve …
Abstract The increasing provision of self‐service technologies such as automated telling machines (ATMs) in retail banking means that customers now have a variety of means of carrying out their banking business In many cases, the functions of these technologies overlap with the functions of the bank branch. Seeks to determine the form and function of the retail bank branch network in New Zealand, in the presence of these self‐service technologies, to the years 2000 and 2010 To achieve this objective, a Delphi study was conducted with leading experts from both banks and technology supplying companies The results indicated that in the short term the bank branch in its current from will remain very important. In the longer term, while the bank branch will still be very important, one can expect a reduction in numbers In part this reduction will be caused by the availability of remote banking technology which reduces the need for the bank branch The main city centres will supply customers with staffless branches – a branch which is dominated by self‐service technology In branches which are still dominated by human staff, tellers will become salespeople armed with platform automation, i.e. personal computers which both themselves and customers can access to in order to obtain product profiles and other information Self‐service technology in the branch “vestibules” will also become widespread Given these findings, banks will need to monitor continuously, in terms of profitability and customer service levels, the human/technology mix in their branches In addition, banks will need to recognize and reward front‐line staff who display selling skills.
Students, quality assessment bodies established by the Government to determine output-related funding, and other groups in society are placing more and more pressure on tertiary institutions to improve the quality of their teaching practices. Some institutions are responding to this pressure by implementing student-centred approaches to teaching, where the students and course leaders become equal partners in determining the course work assessment process, teaching methods and learning outcomes. To a certain extent the learning outcomes are set by the Government's quality assessment bodies. However the course work assessment process, teaching methods and Interpretation of these pre-specified learning outcomes, can still be negotiated with the students in a student-centred manner.Many disciplines in tertiary institutions currently face, or can expect to face in the future, extremely large class sizes. Many argue that it is not possible to implement a student-centred approach in the large class setting. Indeed, they suggest that there is a negative relationship between class size and the quality of the learning experience. This paper examines the application of a student-centred approach to a final year business studies course involving over 100 students completing their BSc (Hons). A survey of the students at the end of the year indicated that, relative to the other courses being taken by the students, this course achieved an unusual treble: higher levels of Student learning, higher Student workload, and yet, higher levels of Student enjoyment. These results would tend to dispel the myth that student-centred approaches can only be successful in the smaller class setting.
Self-service technologies have had a large impact on retail banking. The central objective of this study was to profile the future diffusion levels for a number of these self-service technologies: some of which are established and some of which are still in the pilot stage. To achieve this objective, a Delphi study was conducted with leading experts from both banks and technology supplying companies in New Zealand. This sample was split into five relevant panels. The results suggested that transaction-based services, for which banks traditionally charged a relatively low fee, are moving away from human tellers and towards self-service technology. This is freeing up time for human tellers, who are now being trained in the giving of advice related to high involvement banking services, and cross-selling. Fees for this new service have increased, and will increase, accordingly. Surprisingly, there were few major differences in the diffusion estimates across the panels - although the technology suppliers were consistently more optimistic than the bankers when it came to their estimates of the implementation and acceptance of self-service technology.
Human interaction (between client and provider) is a speical feature of services marketing which is being challenged due to self-service technology, especially in the banking industry. Previous research, however, does not indicate if there are specific banking services which consumers do or do not consider appropriate for self-service technologies. New Zealand is considered by many to be at the state-of-the-art in terms of self-service in banking, and events there could well provide insights into what can be expected in the future in Europe's equally turbulent banking sector. The objective of this research, therefore, was to research the views of New Zealand bank customers and bank experts with regards to what banking services are and are not appropriate for dispensing from self-service technologies. THe research indicated that utilisation of self-service technologies by the mass market will be limited to mundance …
Self-service technology is challenging the traditional concept of provider-client interaction in the retail banking industry. Following a review of the literature, this paper discusses the experts' opinions of the role of self-service technologies and human bank staff in New Zealand retail banking to the years 2000 and 2010. These opinions were identified through a Delphi study held with leading executives from various sectors of the economy. The research indicated that in the future utilisation of home banking by television will be limited to a specific and small market segment. Home banking by personal computer will be relatively more widespread, although it is unlikely to be used by more than twenty per cent of the banking population. Home banking by automated telephone service will be more widespread still, yet acceptance is unlikely to be greater than thirty per cent of the banking population. ‘Staffless branches’ (which are staffed predominately by self-service technology) will be available in all main city centres before the turn of the century. Automatic Telling Machines (ATMs) will be the most utilised self-service technology in the future. Due to the increased use of self-service technologies, especially ATMs, the use of human bank tellers will gradually fall over the next twenty years. As a result, human bank tellers will be freed-up from normal transactional duties, and will become more involved in customer service and selling. © 1993, MCB UP Limited. All rights reserved.
Three key self‐service technologies exist in banking in New Zealand: ATMs (automatic telling machines), EFTPoS (electronic funds transfer at the point of sale), and telephone banking. All three are at differing stages of the adoption process. Of interest is exactly the stage where they are and towards which they are heading. Information of this nature would assist banks in developing marketing strategies. In order to identify at what stages of adoption these technologies are, and heading towards, 302 telephone surveys were carried out with randomly selected respondents. The results indicated that ATMs are at the late majority stage of the diffusion process, and heading for the laggard group. The question thus needs to be asked, “Should banks be spending any resources at all in trying to encourage new users?” The laggards are the least likely of all customers to adopt, and the banks′ resources could well be better spent elsewhere. EFTPoS is at the late stages of the early majority, and heading for the late majority. Strategies used by the banks to encourage new users need to recognize that the late majority are typically sceptical about new ideas. Also the banks need to stress the mobility value of EFTPoS, since members of the late majority tend to be less mobile. Telephone banking is at the early stages of the early majority. Banks need to recognize that at this stage it is word‐of‐mouth which will determine the success or failure of a product or service. Telephone banking systems should be available to the market only when the system has been found to be faultless, and customer service levels are at an optimum.
Due to deregulation, the New Zealand retail banking environment is characterized by change, especially in the area of self‐service technologies. The success of these technology projects has been mixed, and one must question whether or not the suppliers of these technologies have a true understanding of consumer needs. Draws a comparison between what the consumers see as being important influences in the adoption or non‐adoption of retail banking self‐service technologies; and what the suppliers of these technologies (i.e. banking and technology experts) perceive as being important influences in the consumer adoption or non‐adoption of self‐service retail banking technologies. To achieve this, a review was conducted of the literature relating to consumer surveys which investigated why consumers do or do not adopt the main self‐service technology in retail banking: automated telling machines. The themes from this review were identified. A Delphi study was then conducted with New Zealand′s leading experts in the area of retail banking technologies. A comparison between the themes from the literature and the results of the Delphi study indicated that the suppliers of technology do in fact have an understanding of those variables, which affect consumer adoption of self‐service technologies in retail banking.
Focuses on the issue of country of origin stereotyping by consumersin the New Zealand automobile market. The approach uses 275 mailquestionnaires (with 150 of these being returned) containing bi‐polaradjectives to assess the current attitude of new car purchasers towardsautomobiles made in four different countries (France, Italy, Germany andJapan). These four countries were chosen on the basis of their brand andmodel representation in the New Zealand market. The results of the studyindicate that there is a significant level of stereotyping in the NewZealand automobile market, with “made in Germany” emergingas a favourite place of origin among consumers. Also, the recentpurchase of a brand of automobile from a particular country of origintends to positively bias the individual′s perception of automobiles fromthat country. The perception of automobiles from the four testedcountries differed among various demographic groups classified by age,income, occupation and sex.
Most modern consumer societies make use of retailing technologies. For instance, consider the widespread use of scanning equipment in supermarkets. The banking industry, in particular, has also tried to take advantage of the productivity and customer service gains associated with technology with the provision of ATMs (Automated Telling Machines), which consumers can use to carry out day to day banking transactions. Consumers access these machines by using magnetic stripe plastic cards. However whole these new technologies may offer significant advantages to the consumer, many are unwilling to adopt them. A large number of consumers are resistant to new ways of doing their banking, especially when the new way represents loss of personal contact. This research found that around 60% of card holders are regular users of ATMs. The vast majority of these only withdraw money. This low usage rate suggests a serious misuse of bank resources. Thus, while ATMs are at the maturity stage of the product life cycle, usage rates are still well short of their potential. Are the strategies used in the past necessarily appropriate for the future? When ATMs were launched in the U.S. and U.K., emphasis was on large scale promotional campaigns and lavish giveaways to encourage trial. Such strategies were largely resisted by New Zealand banks, which preferred to adopt a more “soft sell” approach centered on issuing consumers with a card and then letting them adopt ATMs in their own time. This study found that the main reason for consumers not using ATMs was preference for dealing with humans in banking. It is suggested that strategies such as competitions and promotions, which have been used with great frequency in the U.K. and U.S., will not succeed in the future because they do not meet the needs of the laggard group. What is needed, however, is a program, which lets consumers make the transition in their own time. This could be encouraged by increasing the placement of in-branch ATMs. Not only would this give ATMs the image of being “nearly human, ” but reluctant consumers could use the ATM with the security of having other bank staff present. This is the strategy, which has been adopted by New Zealand banks, and would appear to have greater potential for success in the longer term. The lesson for suppliers of retailing technology both within and outside the banking industry is clear: the late majority and laggards differ from innovators and early adopters in both their reasons for adopting a technology and their reasons for not adopting a technology. Furthermore, by the time the adoption process has reached the late majority and laggards, it is likely that the innovation is at or near the maturity stage of the product life cycle. Strategies, therefore, must change so that they are more appropriate for the latter stages of both the adoption and product life cycle processes.
Human tellers are still the primary means of product delivery, despite the trend towards electronic and remote banking. In New Zealand, there exists a newly deregulated environment in the financial services industry. Therefore a “customer‐oriented” approach is needed to achieve customer satisfaction. Amongst ATM card holders the majority still used human tellers, on a regular basis. This pointed to the fact that there are a number of improvements to be made in two categories; impolite/inefficient tellers; queuing difficulties.
The ‘EFTPOS explosion’ in New Zealand is shown to be something of a ‘damp squib’. While awareness is very high, usage is around 30 per cent. The future usage rates were likely to increase to no more than 50 per cent, which meant a usage rate of 50 transactions per person per annum. Fear and ethical considerations stopped many people from using the system. The continuous introduction of new delivery mechanisms, combined with a hard-sell approach, has met great customer resistance: a resistance intensified by the banks’failure to ensure customer satisfaction with conventional delivery mechanisms.