Actual Purchase Decisions Research Articles

How does green trust mediate the relationship between environmental concern and green brand knowledge during green purchases?

Purpose This paper aims to examine the influence of environmental concerns and consumers’ knowledge of green brands on their purchasing decisions of green products, utilising green trust as a mediator. Design/methodology/approach Responses from 383 Indian consumers were collected, which was analysed using descriptive and inferential statistics. The causal relationships between latent variables and mediating effect of green trust were investigated by performing Structural Equation modelling. Findings Green trust served as a crucial factor in mediating the relationship between environmental concern and green purchase decision. Trust in eco-friendly products significantly influenced the consumers’ decisions to make green purchases. The study further validated that environmental concern significantly influences individuals’ decisions to make green purchases. Research limitations/implications The study employed a cross-sectional research design to elucidate the relationship among the factors. However, a longitudinal research design is recommended for further study to ascertain the actual purchase decision and evaluate the reliability of the results. Practical implications Marketers can use the study findings to understand consumer knowledge better and trust in green and sustainable products. The proposed model will support marketers and policymakers in developing appropriate marketing strategies as well as facilitate educating consumers about the nuances of green products and the habit of buying eco-friendly products. Originality/value Study’s novel contribution is mediation between environmental concern and green purchase decision through green trust.

Consumer Perception and Buying Behaviour Regarding Eco-Friendly Products

The shift towards eco-friendly products has gained significant attention in recent years due to growing environmental concerns globally. This study investigates the attitudes of consumers towards eco-friendly products and their impact on purchase behaviour. Through a comprehensive literature review and empirical research, the study explores various factors influencing consumer attitudes including environmental consciousness, perceived product benefits, and demographic variables. Additionally, it examines the extent to which these attitudes translate into actual purchase decisions. Data was collected throughsurveys distributed among a diverse sample of consumers, and analysed using statistical methods to draw meaningful insights. The findings suggest a positive correlation between favourable attitudes towards eco-friendly products and increased purchase intent. However, the study also identifies barriersand challenges that hinder widespread adoption, such as price sensitivity and a lack of awareness. The implications of these findings for marketers and policymakers are discussed, emphasizing the need for targeted strategies to enhance consumer awareness and address barriers to adoption. Overall, this research contributes to understanding consumer behavior in the context of sustainability and provides valuable insights for promoting eco-friendly products in the marketplace.

The role of demographics to actual purchase decision in online shopping

The role of demographics to actual purchase decision in online shopping

The Impact of Actual Purchase Decision Towards Circular Behavior: A Case of Food Delivery Application Usage by Urban Millennials

The purpose of this study is to examine the impact of actual purchase decision toward circular behavior in case of food delivery usage by urban millennials in Jakarta City as The Capital of Indonesia. The increasing use of the Internet and the ease of getting food through food delivery application led to increased consumption by customers which has resulted in widespread of food waste. Quantitative method and online survey questioner techniques are used. Pre-test and pilot test are done to establish the credibility of the research. In total 160 valid samples are examined by SPSS and PLS SEM. Results show that actual purchase decision by urban millennials in Jakarta is positive and significant toward circular behavior actions. The sociodemographic analysis revealed that married women with Bachelor degree use grab food up to 5 times in a month and pay with digital wallet is the most frequent user. The effect size (F2) purchase decision toward circular behavior is relatively high with score 45.9%. Meanwhile, the R2 value is low with total score 31.5%.

Is it all due to peers? The influence of peers on children's snack purchase decisions

The objective of this study is to examine whether the presence of peers has an impact on children's snack purchasing decisions. In particular, the research analyzes whether the company of a classmate or friend influences children's brand awareness and price perception, and how these factors affect their snack purchases. An incentive-based discrete choice experiment was conducted with snacks varying in price, brand, and healthiness, using the presence or absence of peers as a between-subject treatment. The data was analyzed using mixed logit models and a multinomial logit model. A total of 128 primary school children aged 8 to 10 years were included in the final data analysis. The findings show that the presence of peers strongly influences children's snack purchase decisions, particularly with respect to product type and price. The results highlight that children tend to conform to the group's decision, highlighting that social influence plays a crucial role in shaping children's decision-making processes. This study is the first to investigate the influence of peers on children's actual purchase decisions, thereby extending previous knowledge of the impact of peers on primary school children to the market domain.

The interplay of eco-labels and price cues: Empirical evidence from a large-scale field experiment in an online fashion store

Even though eco-labels are a promising means to support consumers in making sustainable choices, insights into the effectiveness of eco-labels in combination with conventional marketing tools are scarce. This field study (a) investigates the effect of eco-labels on consumers' actual purchase behavior in an online fashion store, (b) examines the moderating role of price premiums, and (c) reveals a three-way interaction between eco-labels, price premiums, and discounts. Based on 58,000 actual purchase decisions from a large-scale field experiment, the results indicate a beneficial effect of eco-labels on consumer purchases and that higher price premiums can even reinforce the positive effect of eco-labels. The empirical findings also suggest that discounts only increase purchases for eco-labeled products in combination with high price premiums, but not with low price premiums. The present study has important implications for research on eco-labels and their interplay with other marketing cues and provides valuable guidance to marketers and policymakers on how to price eco-labeled products.

The Green Light on Buying a Car: How Consumer Decision-Making Interacts with Environmental Attributes in the New Vehicle Purchase Process.

Although it is commonly understood that the average U.S. new vehicle buyer ranks price and safety above environmental attributes, a stated ranking of one shopping criterion above another is not necessarily maintained when consumers make an actual purchase decision. In fact, the distribution of shopping criteria rankings is not well understood, and it is unclear how rankings translate to the attributes of purchased vehicles. This raises several related questions: What is the distribution of shopping criteria rankings across the U.S. and how do they differ among demographic groups and purchasers of different vehicle fuel types or body styles?How do consumers weigh their purchase criteria?How does the environmental impact of a vehicle rank as a purchase criterion for U.S. new vehicle buyers, and its importance differ among gender, age, or income groups?Do purchase criteria differ for consumers who state that they value the environment?Is a consumer's shopping criteria ranking of environmental attributes reflected in the vehicles they consider and ultimately purchase? We explore these issues using data from an extensive survey of new vehicle buyers in 2014, 2015, and 2016 (approximately 250,000 respondents per year). We broadly find the environmental criterion outranked by preference for safety and performance, but different patterns emerge across groups defined by household income, purchased vehicle fuel type, and other measures of respondent attitude toward the environment. Stated preferences for environmental attributes align with higher fuel economy and greater likelihood of electric or hybrid fuel type within considered and purchased vehicles.

Purchase intention and actual purchase of cargo cycles: Influencing factors and policy insights

To support the penetration of cargo cycles in commercial transport, this research aims at identifying the significant influencing factors for their purchase, using data from Europe’s largest cargo cycle testing project “Ich entlaste Städte”. This is achieved by developing binary logit models for the intention to purchase (stated at the end of a 3-month vehicle trial), and the actual purchase decision made (queried three months or later, after the end of the trial). Prior to the estimation of the logit models, latent variables have been constructed using explanatory factor analysis. Based on the estimation results, factors that influence the actual purchase decision include catchment area of cargo cycle trips, daily usage during the trial phase, trial phase season, type of cargo cycle tested, mode substituted by cargo cycles during the trial phase and business sector. Furthermore, four other factors, which are latent variables constructed through exploratory factor analysis, are found to have significant influence: perception of operational, soft and cost benefits, as well as importance of deterioration of conditions for conventional vehicles. Based on the influence of these factors, policy measures are suggested under the following categories: (i) Regulation, (ii) Infrastructure, (iii) Finance, (iv) Campaigns and (v) Trial schemes. The data from the project shows the existence of a difference between the intention and the actual purchase decision (around 50% higher intent compared to realized purchase). This implies that there is a need to convert intention to actual decision, when making conclusions based on intention. A comparison, made between the binary logit models of intention and actual purchase decision, brings out the reality that the latter is influenced by hard facts like the deteriorating conditions (e.g., vehicle access restrictions) for conventional vehicles, while the former is influenced by operational concerns towards cargo cycles. This observation suggests the necessity of formulating measures to foster the market penetration of cargo cycles.

The Impact of Corporate Social Responsibility on Brand Sales: An Accountability Perspective

Consumers are increasingly mindful of corporate social responsibility (CSR) when making purchase and consumption decisions, but evidence of the impact of CSR initiatives on actual purchase decisions is lacking. This article introduces a novel brand accountability–based framework of consumer response to CSR initiatives, which categorizes CSR efforts as “corrective,” “compensating,” or “cultivating goodwill.” Leveraging a database of CSR press releases by leading consumer packaged goods brands, the authors examine the effect of the different types of CSR announcements on brand sales. The findings suggest that CSR initiatives that genuinely aim to reduce a brand's negative externalities (“corrective” and “compensating”) lift sales, whereas CSR actions focused on philanthropy (“cultivating goodwill”) can hurt sales. The authors propose two moderators—CSR reputation and CSR focus on environmental or social causes—and a mechanism for these effects, which they examine under controlled experimental settings. The experimental results show that, conditional on CSR reputation, consumers perceive varying degrees of sincerity in the different CSR types and that sincerity mediates the effect of CSR type on purchase intentions. Overall, the results suggest that consumers are more inclined to reward firms that directly reduce the negative by-products of their own business practices than to be impressed by public goodwill gestures.

Sensory Attributes of Malt Drinks and Consumer Purchase Decisions

ABSTRACT This paper examined the influence of visual, gustatory, tactile, and olfactory attributes of malt brands on consumer purchase in Nigeria. The study adopted a quantitative research design. Structural Equation Modeling technique was employed to test the hypothesized relationships at 5% level of significance. The findings revealed that visual, gustatory, tactile, and olfactory attributes of malt brands had significant influences on consumer purchase intentions. The findings also show a significant association between consumers’ purchase intentions and actual purchase decisions. The results obtained are for exploratory purposes which have many implications for food and beverage companies.

The impact of online display advertising and paid search advertising relative to offline advertising on firm performance and firm value

This research examines the impact of online display advertising and paid search advertising relative to offline advertising on firm performance and firm value. Using proprietary data on annualized advertising expenditures for 1651 firms spanning seven years, we document that both display advertising and paid search advertising exhibit positive effects on firm performance (measured by sales) and firm value (measured by Tobin's q). Paid search advertising has a more positive effect on sales than offline advertising, consistent with paid search being closest to the actual purchase decision and having enhanced targeting abilities. Display advertising exhibits a relatively more positive effect on Tobin's q than offline advertising, consistent with its long-term effects. The findings suggest heterogeneous economic benefits across different types of advertising, with direct implications for managers in analyzing advertising effectiveness and external stakeholders in assessing firm performance.

Polarized America: From Political Partisanship to Preference Partisanship

In light of the widely discussed political divide and increasing polarization, we investigate in this paper whether the polarization of political ideology extends further to consumers’ preferences, intentions, and consumption. Using three different datasets: publicly available social media data of brand followerships of nearly half a million Twitter users, YouGov brand preference survey dataset and Nielsen Scanner Panel data, we assess the evolution of brand preference polarization. Our results show that the claimed polarization in political ideologies post the election of Donald Trump in 2016 stretches further to the daily lives of consumers. We observe increased polarization in preferences, behavioral intentions and actual purchase decisions of consumer brands. Consistent with compensatory consumption theory, we find that the increase in polarization post the election of Donald Trump is stronger for liberals relative to conservatives and our findings suggest that this asymmetric polarization is driven by consumers’ demand for “Democratic brands” rather than the supply of such brands. From a brand perspective, we find evidence that brands that took a political stand became even more polarized. We provide a publicly available API that allows access to our data and results.

Willingness to pay and actual purchase decision for organic agriculture products in Vietnam

This article aims to investigate the determinants of willingness to pay and the actual purchase decision of organic agriculture products among consumers in Vietnam, one of the emerging markets. The study uses primary survey data of 210 consumers based on the logit and ordered logit regression models. Findings/Originality: The results confirmed that consumers perceptions of external factors and product attributions, external factors (processing, packaging, and labelling, certification, supply of product), perceived health and nutrition of products, socioeconomic characteristics significantly influence on consumer’s willingness to pay and actual purchase decision for organic foods in the context of Vietnam market. These results of the study provided insights for marketers on the key variables that could be used for promoting more widespread consumption of organic foods in the country.

When Doing Good, What Good to Do?: Examining Whether and Why Firms Benefit From Their CSR Initiatives

Consumers are increasingly mindful of CSR when making purchase and consumption decisions, but evidence of the impact of CSR initiatives on actual purchase decisions is lacking. This paper introduces a novel, brand accountability-based framework of consumer response to CSR initiatives, which categorizes CSR efforts as “Corrective,” “Compensating,” or “Cultivating goodwill” actions. Leveraging a database of CSR press releases by leading CPG brands, the authors examine the effect of the different types of CSR announcements on brand sales. The findings suggest that CSR initiatives that genuinely seek to reduce a brand’s negative externalities (“Corrective” and “Compensating”) lift sales, while CSR actions focused on philanthropy (“Cultivating goodwill”) can hurt sales. The authors propose two moderators – CSR reputation and CSR focus on environmental or social causes – and also a mechanism for these effects, which they examine under controlled experimental settings. The experimental results show that, conditional on CSR reputation, consumers perceive varying degrees of sincerity in the different CSR types, and that sincerity mediates the effect of CSR type on purchase intentions. Overall, the results suggest that consumers are more inclined to reward firms that directly reduce the negative by-products of their own business practices than to be impressed by public goodwill gestures.

ASSESSING WHETHER ENVIRONMENTAL IMPACT IS A CRITERION OF CONSUMERS WHEN SELECTING AN AIRLINE.

The aim of this study is to gain insight as to whether environmental impact is a criterion of consumers when actually selecting an airline. Findings indicate that cost and convenience, followed by destinations on offer and departure airports, are the key criteria for consumers in airline ticket purchasing decisions. Airlines may continue environmental activity and disclosure for long-term strategic reasons although individual ticket purchase decisions do not appear to be based primarily on environmental considerations. The research fills a gap in the U.K. empirical literature by exploring whether consumers of airlines operating out of the U.K. consider environmental impacts when making actual ticket purchase decisions.

Cross-national variation in consumers' retail channel selection in a multichannel environment: Evidence from Asia-Pacific countries

This study examines the impact of cross-national variation in culture on the selection of retail channels in a multichannel environment in eight Asia-Pacific countries. In contrast to the prior literature, which examined the intention to purchase through online channels, we study the actual purchase decisions made by consumers by comparing online and telephone channels. We adopt Hofstede, Hofstede, and Minkov's (2010) six cultural dimensions (power distance, uncertainty avoidance, individualism/collectivism, masculinity/femininity, long vs. short-term orientation, and indulgence vs. restraint) to examine the impact of cross-national variation in culture on online vs. telephone retail channel selection. The empirical findings suggest that countries with high uncertainty avoidance and long-term orientation are less likely to adopt online channels rather than telephone channels, whereas countries with high individualism, high masculinity, and high indulgence are more likely to adopt online channels. These findings highlight the importance of cross-national variation of culture on retail channel selection.

In-store proximity marketing: experimenting with digital point-of-sales communication

PurposeThe authors present an exploratory study on the effectiveness of in-store marketing communication appeals via digital signage applying the construal level theory (CLT) in a field experiment. According to this theory, the authors hypothesize that shoppers will on the one hand respond more favorably to messages focusing on the desirability of the offering, when they are further distanced from the actual purchase decision. On the other hand, the authors expect more favorable responses toward messages containing feasibility appeals, positioned closer by to the purchase decision. The purpose of this paper is to determine appropriate location-based content for in-store proximity marketing.Design/methodology/approachA field experiment was conducted in a Belgian coffee bar, examining temporal distance effects in a natural retail/service environment. A 2×2 between-subjects experimental design is implemented (i.e. low vs high temporal distance×concrete/cost vs abstract/brand-oriented appeal), examining the impact on marketing communication effectiveness.FindingsOverall, the authors find some initial support for CLT on effectiveness measures regarding purchase intentions and actual purchase, but not in terms of self-reported noticing of the screen and the ad, nor in terms of (un)aided ad recall.Research limitations/implicationsThis experiment is a pilot study and such finds itself confronted with a limited number of observations.Originality/valueThe study is among the first to examine how message content (beyond price promotion) can be adapted to in-store locations.

Consumers' Use of Country-of-Manufacture Information? Norway and the United States: Ethnocentric, Economic, and Cultural Differences

ABSTRACTThe influence and use of the country-of-manufacture (COM) information on purchase decisions is examined in Norway and the USA in a nonlaboratory setting. Ethnocentrism, dependence on imported products, market size, and cultural difference are variables that may have led to differences in measured behaviors between Norway and the USA. Respondents in Norway showed less ethnocentrism, were less aware of COM, and showed no difference in the rating of COM importance, but cited self-reported COM as a purchase influencing factor more frequently than consumers in the USA. The overarching finding is that COM is rarely used by the studied consumers in actual purchase decisions with little difference found between Norway and the USA.

Special Issue on Corporate Social Responsibility and Sustainability: An Introduction

This special issue includes a selection of articles presented at the Fourth World Business Ethics Forum (WBEF) held on December 16–18, 2012, hosted by the School of Business, Hong Kong Baptist University. The School has been placing major emphasis on whole-person business education, with a vision of inspiring business practice, creating values for stakeholders, and enhancing social and economic growth and development. The WBEF was cofounded by the Hong Kong Baptist University (School of Business) and University of Macau (Faculty of Business Administration) in 2006. Held on a biennial basis, it serves as a platform for scholars and the business community to explore new insights in relevant areas of business ethics. The theme of the Fourth WBEF is ‘‘Corporate Social Responsibility and Sustainability.’’ The main objective is to develop research on corporate social responsibility (CSR) and provide implications to corporations for their sustainable development. The forum is a timely event for academics and practitioners as the contemporary business world is facing increasing challenges including economic, environmental, social, and ethical issues. Entrepreneurs are experiencing an evolution of mindset. CSR is not just a strategy of risk management in response to corporate scandals or pressures from stakeholders. It is also a practice with foresight for sustainable success and ultimate benefits. The Forum received a total of 91 papers submitted by authors from different institutions worldwide. 59 papers were selected and presented in 15 concurrent sessions. Over 150 academics and practitioners from 16 countries and regions participated in the Forum. For this Special Issue, we selected 9 best papers to represent the work of the Forum, being clustered in four topics of CSR and sustainability integration, including the conceptualization, its development and normativity, factors influencing CSR, and impacts of CSR. Three papers extended our understanding on the concept of CSR by bringing new thoughts. First, Francois Maon and Adam Lindgreen argue that the cultural aspect of CSR is one dimension being neglected in our understanding. They introduce the notion of corporate cultural responsibility (CCR), which reflects cultural impacts of corporations through value systems. The second and third papers, written by Scott J. Vitell and Catherine Janssen and Joelle Vanhamme, respectively, call for attention on consumer social responsibility (CnSR), which emphasizing the role of the consumer in CSR. Vitell indicates that engagement of the consumer is important for the development of CSR. He examines the proposition and discusses the difference between consumer ethics and consumer social responsibility. Catherine Janssen and Joelle Vanhamme go a step further by their research to look at the relationship between CSR and consumer engagement. Realizing a gap between consumers’ purchase intentions and their actual purchase decisions, Catherine Janssen and Joelle Vanhamme argue that this is a puzzling paradox because CSR has only a minor impact on consumers’ actual purchase decisions. Employing theoretical lenses, the authors propose an integrative framework to understand the CSR-consumer paradox. & Stephen Y. L. Cheung scheung@ied.edu.hk

Standing out from the crowd: niche product choice as a form of conspicuous consumption

Purpose – This paper aims to define the niche market concept and to investigate the extent to which purchasing niche products represents a form of conspicuous consumption. Consumers increasingly seek products that differ from the mainstream, and companies regard niche markets as a promising opportunity beyond saturated mass markets. Design/methodology/approach – Based on survey data that combines self-report scales and actual purchase decisions, the effects of different dimensions of conspicuous consumption on niche product choice are investigated using binary logistic regression. Findings – Choosing niche products over mass market products is mainly influenced by differentiation tendencies. Moreover, consumers use niche products to strengthen their role as opinion leaders. Choice of mass market products, on the other hand, is influenced by assimilation tendencies. In contrast to common assumptions, status-seeking consumers are more likely to choose a mass market alternative over niche products. Research limitations/implications – Based on the conceptualization of niche markets, this study reveals that niche products are a means for consumers to distinguish themselves. Limitations include the focus on a single product domain and country. Future research should replicate the study for other types of niche products and in other cultural settings. Practical implications – Niche firms should explicitly consider the social effects of conspicuous consumption as a key driver of demand. Specifically, the unique nature of a niche product should be highlighted and recognizable to increase the acceptance among potential customers. Moreover, instead of focussing the status of niche products, marketing activities should address opinion leaders’ desire to maintain their standing among the social group by providing in-depth information and enhanced customer experience. Originality/value – This paper addresses the call for a conceptual definition of niche markets. Moreover, while previous work focussed on the company perspective, this study allows for an improved understanding of consumer behaviour with regard to niche markets.