Consumer reactions to unsustainable luxury: a cross-country analysis

PurposeThis paper investigates why and when messages regarding unsustainable luxury products lead to negative word-of-mouth (NWOM) through a focus on the role of guilt, need to warn others and consumers' cultural orientation.Design/methodology/approachThree experiments test whether messages describing unsustainable versus sustainable luxury manufacturing processes elicit guilt and a need to warn others and whether and how the need to warn others affects consumers' NWOM depending on their cultural orientation.FindingsConsumers experience guilt in response to messages emphasizing the unsustainable (vs sustainable) nature of luxury products. In turn, guilt triggers a need to warn other consumers, which leads to NWOM about the luxury company. Furthermore, the results suggest that two dimensions of Hofstede's model of national culture – namely individualism/collectivism and masculinity/femininity – moderate the effect of the need to warn others on NWOM.Practical implicationsLuxury managers should design appropriate strategies to cope with consumers' different reactions to information regarding luxury brands' unsustainability. Managers should be aware that the risk of NWOM diffusion may be higher in countries characterized by a collectivistic and feminine orientation rather than an individualistic and masculine orientation.Originality/valueConsumer reaction to unsustainable luxury, especially across different cultural groups, is a neglected area of investigation. This work contributes to this novel area of research by investigating NWOM stemming from unsustainable luxury manufacturing practices in different cultural contexts.

Between love and boycott: a story of dual origin brands

Purpose This research aims to address ethnocentric consumers’ willingness to boycott dual origin brands, in the particular case of national brands linked to a very specific regional origin, through analysing the paradox of (unfavourable) regional ethnocentrism versus (favourable) consumer–brand relationship (i.e. brand identification, trust and love) on consumers’ decision to buy or boycott those brands in that circumstances. Building on social identity and cognitive dissonance theories, this study aims to examine the Spanish consumer relationship with national brands originated in Catalonia considering the current conflicting circumstances in the region. Design/methodology/approach The authors collected data by means of personal questionnaires, distributed among 277 Spanish consumers of Catalan brands of Cava. The data is analysed by using structural equation modelling and linear structural relations. Findings After controlling for brand familiarity, the results of this study reveal that ethnocentrism negatively distorts consumers’ confidence in dual origin brands and highlight the role of identification and trust as brand love antecedents. It also reveals that ethnocentrism has a more profound impact on boycotting decision than brand love. Originality/value This study is one of the few to capture the puzzlement created by the paradoxical nature of the brand’s duality of origin. Furthermore, it contributes to the marketing literature by examining the impact of ethnocentrism on two relationship variables (i.e. identification and trust) and exploring their joint impact on consumers’ decision to buy or boycott. The findings of this study can be helpful for companies facing boycotting behaviour triggered by ethnocentric consumer reaction towards dual origin brands.

No matter what you do, I still love you: an examination of consumer reaction to brand transgressions

Purpose This paper aims to examine the impact that brand transgressions, and the effect of an apology or lack thereof, have on consumers’ intentions to co-create with a brand, perceived brand equity and brand love, and compares these effects on brands that are viewed positively versus brands that are viewed negatively. Design/methodology/approach Two studies were deployed. In the first study, a 2 × 2 between subjects factorial design using fictitious brands is used to test the hypotheses. The second study seeks to replicate the findings of the first study by using a brand connected to a real retailer. Findings Regardless of a brand issuing an apology or not, co-creation, higher perceived brand equity and increased levels of brand love, are more likely to occur when a consumer views a brand as being positive versus negative. However, the results vary when the consumer has a prior level of knowledge and a stronger relationship with a brand. Research limitations/implications This paper focuses on consumers between the ages of 18 and 29 years. While the findings of Study 1 are mostly replicated in Study 2, a more generalizable sample could create additional insights into the impact of brand transgressions and issuing or not an apology. Originality/value The findings of this paper add to the current literature on co-creation, brand equity, brand love and theory of reasoned action, in terms of the impact of an apology, or lack thereof, on brand transgressions and consequent consumer responses.

Correlation between sensory and instrumental measurements of saltiness in Queso Molido Narinense

A sensory study was conducted at the Universidad Santiago de Cali with Queso Molido Nariñense. To determine the preferred levels of concentration acceptable by consumers, samples were made with different concentrations of NaCl (C1 = 0.62%, C2 = 0.87%, C3 = 1.05%, C4 = 1.74%, C5 = 2.71%, and C6 = 5.34%). The results show that sample C4 had the highest degree of acceptance, followed by C2, C3, and C5, while C1 and C6 had the lowest acceptance. Consumers were able to distinguish salt differences above 0.27%. It was possible to predict consumer reaction regarding their levels of acceptability and perception using the Sensory-Instrumental correlation. This result showed that either an extremely low or a very high level of concentration of salt in cheese could result in a low acceptance by consumers.

Scarcity-Based Price Promotions: How Effective are they in a Revenue Management Environment?

Two key characteristics of revenue management (RM) environments–fixed capacity and the application of variable pricing–have the potential to influence consumers’ reactions to scarcity-based price promotions. In this study, we explore consumer reaction to two types of restrictions on price promotions-limited-time scarcity (LTS) and demand-driven limited-quantity scarcity (LQS)-in the RM context. We propose a moderated mediation model, wherein perceived consumer competition, perceived price uncertainty, and anticipated regret mediate the price promotion type (restricted vs. unrestricted)-booking intentions relationship, and booking lead-time moderates the relationship of price promotion type with perceived consumer competition and price uncertainty. Our findings suggest that LTS and LQS are effective in driving consumers’ perceptions of competition for available inventory and price uncertainty when booking lead-time is long. In turn, heightened perceptions of competition and price uncertainty amplify anticipated regret, leading to a positive effect on booking intentions. Conversely, when booking lead-time is short, restrictions-based price promotions do not differ significantly from nonrestricted promotions in terms of their effect on consumers’ booking intentions. This research provides guidance for hospitality marketing managers regarding how, and when, to employ scarcity-based price promotions to influence consumers’ booking behavior.

Water Pricing Policy as Tool to Induce Efficiency in Water Resources Management

This research seeks to determine and analyze the reaction to an increase in the water invoice with the aim of introducing improvements in wastewater treatments. To this end, the purification situation is analyzed and the price elasticities of demand are obtained through Ordinary Minimum Squares. The results show that there are several small noncompliant treatment plants, as well as a complex interaction among consumption, price, and income. In many cases, the results offer small or significant differences without a clear pattern. However, it highlights the number of household members as it is strongly related to consumption and price and not considering it in the elaboration or modification of the water tariff would lead to inefficiencies. A reduction in revenue has also been found due to the strong consumer reaction, so it is necessary to assess in more depth what kind of price change would be most appropriate, as well as whether such measures would be best suited to address the problem.

Customer Segmentation and Factors Affecting Willingness to Order Private Label Brands

E-grocery as a retail service of delivering grocers to consumer's door step is a new phenomenon for Indian consumers. Private label brands of e-grocery retail creates a new level of complication for consumers. As consumers are familiar with private label brands of popular supermarkets through past experience, they are not aware about private label brands of e-grocery retailer and therefore have not developed a level of trust with the private label brands making them reluctant to purchase private label brands from e-grocery retailers. However, there is lack of research done to understand the consumer attitude towards private label brands available on the e-grocery platform. Therefore, the purpose of the present study is to focus on two key areas: first, on types of private label brand buyers on e-grocery sites based on consumer reaction towards private label brands; and second, situations where consumers show their willingness-to-purchase private label brands on e-grocery site.