Purchase Scenario Research Articles

Can mobile promotion automation decrease overall purchases? The role of promotion pattern predictability in customer habit formation

Automating mobile promotions facilitates customization through geo-location and temporal targeting; however, this can lead the geographic and temporal patterns of promotions to become predictable. We argue that this predictability enables customer habit formation as the promotion, the context in which it is received, and the purchase behavior become associated in the customer's memory through repeated co-occurrence. This results in the customer purchasing only when promotions are expected to occur, decreasing their overall purchase likelihood. Across four studies, including empirical data from two different industries in different global regions and two controlled laboratory experiments focused on different purchase scenarios, we find that customers exposed to predictable promotion patterns shift their purchases to when promotions are expected, decreasing overall purchase probability. These effects are stronger for customers with consistent past purchase patterns or low involvement with the product, and predictability of promotion patterns does not impact customer attitudes, providing evidence that they are driven by customer habit formation.

Optimizing extended warranty options with preventive maintenance service under multinomial logit model

Extended warranty (EW) services have become the primary source of profit for manufacturers. How to design the appropriate EW service to balance customer user experience with the manufacturer’s profit issues has received great attention. Implementing preventive maintenance (PM) actions can not only reduce the customer’s lifecycle cost but also enhance the manufacturer’s brand image. Therefore, EW bundled with PM service has emerged in the after-sales market today. To enrich customers’ choice, we investigate the design of EW menus bundled with PM service options, and then we jointly determine EW prices and the frequency of PM actions for the provided menus. In the proposed model, we combine the multinomial logit model with prospect theory to characterize customer choice behavior when presented with different EW menu options. Based on that, with the aim of maximizing the manufacturer’s profit, we can derive sets of offers, the corresponding EW service prices, and the number of included PM actions. We also introduce two additional models that account for different customer purchase scenarios. Numerical results reveal that when the manufacturer chooses to offer a unified EW menu to all customers, it is consistently more profitable to present the menu at the point of product sales. Another interesting finding is that customized EW menus designed for various customer segments do not always outperform unified ones. Overall, this study will provide a foundation for manufacturers to make informed decisions regarding the selection and design of EW menus in various scenarios.

Protection motivation when using biocidal products – A survey study in Germany

Due to their inherent properties, biocidal products might pose a risk to human and animal health and the environment. In risk management, there exists uncertainty about private users' comprehension of and willingness-to-adhere to use instructions that mitigate these risks (e.g., limit frequency of use or application area). This study aimed at providing insights into the users' perspective by focusing on their attention, comprehension, and the attitudinal predictors of protection motivation. In the online study (N = 957 participants from Germany) were introduced to a hypothetical purchase scenario featuring an insect spray and a realistic set of use instructions. Next, the participants' attention for the use instruction was measured in self-report and by tracking the time spent on the page with the use instruction, while Likert scale-type questions measured the comprehensibility, protection motivation, and predictors. Participants reported higher protection motivation if they spent more time with the use instruction, perceived it as comprehensible, rated the threat to humans, animals, and the environment as more severe, perceived themselves as responsible (i.e., internal locus of control) and capable (i.e., self-efficacy) of adhering to the use instructions, perceived adherence to the use instructions as effective (i.e., response efficacy) and did not perceive biocidal products as inherently safe (i.e., neutral locus of control). These results offer valuable information for an improved regulation of biocidal products and better management of potential risks associated with their use. They also provide concepts for interventions to ensure users of biocidal products follow the instructions for a safe use and better protection of the environment.

Financial Feasibility Analysis of XYZ Company Market Expansion Plan to Kalimantan

XYZ Company, a B2B manufacturer of Songkok in Gresik, East Java, plans to expand its market by establishing a new distribution warehouse in Banjarmasin, Kalimantan. This strategy aims to leverage the growing demand for Songkok in Kalimantan, which has a significant Muslim population. The primary goal of this study is to evaluate the financial feasibility of purchasing versus renting the new warehouse for this investment plan. The financial feasibility analysis was conducted in multiple stages. Pro forma financial statements were constructed for both scenarios, incorporating historical data of the company's financial statements, industry benchmarks, and growth assumptions from management interviews. Free Cash Flow to the Firm (FCFF) and terminal cash flows were calculated using the Weighted Average Cost of Capital (WACC). Capital budgeting techniques were then used to evaluate financial feasibility, including Net Present Value (NPV), Internal Rate of Return (IRR), and Discounted Payback Period. Risk assessment was performed through sensitivity analysis and Monte Carlo simulation. Results indicate that the renting scenario, with an initial investment of IDR 242 million, has a higher NPV and IRR than the purchase scenario, which requires an initial investment of IDR 944 million. The renting scenario also offers a faster-discounted payback period of 2 years and one month, making it more feasible. Risk assessment shows moderate risk, with an 83% probability of achieving a positive NPV. The financial feasibility analysis recommends renting the new warehouse in Banjarmasin. This option provides a quicker payback period, higher NPV and IRR, and positive risk assessment results. Investing in this project will enhance XYZ Company's market presence in Kalimantan, cater to the growing demand for Songkok, and achieve sustainable growth and profitability.

Sustainable future food demand: Integrating social, health, and environmental considerations in forecasting

Predicting future food demand and understanding its environmental and dietary ramifications are vital for ensuring food system sustainability in an equitable manner. Existing forecasting methods often overlook societal diversity and do not connect projected food demand with its socio-environmental implications. This paper introduces a framework for forecasting a nation's future food demand with considerations for socio-demographics and dietary preferences, along with potential dietary and environmental implications. Israeli household expenditure surveys spanning two decades (1997–2017) representing over 120,000 households were used to explore a series of potential food purchase scenarios for the period up to 2030 and the nutritional and environmental footprints of subgroups. These subgroups included small and large families, young couples, the elderly, and wealthy adult households. Three dietary scenarios based on expected socio-demographic changes were then examined: “Environmental,” “Healthy,” and “Mediterranean” scenarios. All examined scenarios predicted a surge in food demand by 18 to 22 % for the period of 2018–2030. The “business-as-usual” (BAU) scenario emphasizes the expected rise in the consumption of meat, oil products, and food outside the home, leading to a 20 % rise in greenhouse gas emissions. In comparison, in the case of the Healthy scenario, emissions are expected to rise by 22 %, and according to the Environmental scenario by only 10 %. Significant differences were also discovered across various social groups in regard to the analyzed dietary and environmental indicators. Although the study focuses on Israel, the proposed framework's universality makes it adaptable to any country. This could empower policymakers and stakeholders to craft food security informed decisions and targeted interventions that address the needs of diverse social groups while considering socio-environmental implications both presently and in the future.

Cost and competitiveness of green hydrogen and the effects of the European Union regulatory framework

By passing the delegated acts supplementing the revised Renewable Energy Directive, the European Commission has recently set a regulatory benchmark for the classification of green hydrogen in the European Union. Controversial reactions to the restricted power purchase for electrolyser operation reflect the need for more clarity about the effects of the delegated acts on the cost and the renewable characteristics of green hydrogen. To resolve this controversy, we compare different power purchase scenarios, considering major uncertainty factors such as electricity prices and the availability of renewables in various European locations. We show that the permission for unrestricted electricity mix usage does not necessarily lead to an emission intensity increase, partially debilitating concerns by the European Commission, and could notably decrease green hydrogen production cost. Furthermore, our results indicate that the transitional regulations adopted to support a green hydrogen production ramp-up can result in similar cost reductions and ensure high renewable electricity usage.

STUDY OF THE IMPACT OF BRAND AWARENESS OF ENTERPRISES IN THE LEISURE SNACK INDUSTRY ON CONSUMER PURCHASE INTENTIONS: USING PRODUCT EXPECTATIONS AS THE MEDIATING VARIABLE

With rapid economic growth, enterprises in the leisure snack industry have entered a phase of rapid development. Nowadays, it is crucial for leisure snack companies to focus on factors influencing consumer purchase intentions in order to better develop their businesses. When consumers make a purchase decision, factors such as brand awareness have an impact on their willingness to buy, extending beyond the influence of the product itself. Additionally, the internet's development has integrated online shopping into consumers' lives. Due to the inability of online consumers to physically interact with products, there are differences in how consumers perceive product brands. This study aims to investigate the influence of brand awareness, consumer purchase intentions, and product expectations in the leisure snack industry under two purchase scenarios: online and offline. We will test the hypotheses through a literature review, collect data using surveys, and validate the results using SPSS. The research findings indicate that, in both online and offline purchase scenarios, brand awareness of leisure snack companies positively influences consumers' purchase intentions. Specifically, in both online and offline settings, aspects of brand awareness such as "brand recognition, brand recall," and "brand distinctiveness" all have a positive impact on consumer purchase intentions. In the leisure snack industry, product expectations play a mediating role between brand awareness and consumer purchase intentions.

Incentivised dishonesty: Moral frameworks underlying fake online reviews

AbstractFeedback mechanisms, such as customer reviews and ratings, are essential for making informed decisions on online platforms, particularly in the presence of asymmetric information. However, the practice of reward‐based reviews is on the rise in online platforms, where sellers incentivise buyers to give biased feedback (e.g., 5‐star ratings) regardless of the quality of the products. This study intends to determine whether financial incentives motivate people to award dishonest ratings and explore the moral heuristics underlying this motivation. Using a hypothetical purchase scenario, responses were elicited from 411 participants and the Philosophical Moral Framework Measure (PMFM) was used to identify the moral frameworks that underlie the reported self‐interested behaviour. The findings reveal that the likelihood of giving fake reviews increases with an increase in financial incentives. The dominant moral framework of those who accepted the cashback offer is utilitarianism and egoism, whereas those who declined the offer primarily have deontology and virtue theory as dominant frameworks. The results also indicate that men and young individuals are more likely to give dishonest feedback. These findings not only advance the understanding of the interplay between financial incentives and self‐interested behaviour but also aid in identifying the moral frameworks underlying self‐interested behaviour.

Financial Analysis of Additional Supply to Obtain Optimal Basic Costs of Provision in The Weda System

The electricity growth in the PLN Weda Customer Service Unit (ULP) area in Central Halmahera Regency reached 26.64% in 2022, driven by national-scale nickel mining, resulting in consistent yearly increases in electricity demand. ULP Weda's electricity supply, with an installed power of 5.2 MW and a peak load of 5.6 MW, faces challenges due to high fuel prices, leading to a Cost of Supply (BPP) value of IDR 4,193, significantly higher than the average selling price of IDR 1,365 in the Veda system. To address these issues, a research methodology, incorporating SWOT and TOWS analyses, was employed. Three potential scenarios emerged: relocating Diesel Generating System (SPD) engines, adding rental generator engines, and purchasing excess power. Financial Feasibility Study (KKF) calculations, considering Nett's Present Value (NPV), Nett's Present Cost (NPC), and Internal Rate of Return (IRR), determined the excess power purchase scenario as the most viable, with an NPV of IDR 29.8 billion, NPC of IDR 623 billion, IRR of 33.49%, and the lowest BPP value at IDR 1,244. The Homer application provided insights into optimizing generating machine units for optimal BPP values. Sensitivity analysis showed that higher interest rates and lower fuel prices contribute to lower BPP values. This comprehensive research offers a strategic framework for addressing electricity supply challenges in the ULP Weda area, ensuring financial viability and optimal operation.

Green marketing and the purchasing decision oriented towards sustainable consumption

Sustainable and environmentally friendly consumption is a current trend, so marketing strategies focused on this doctrine have taken its name green marketing or green marketing. The present research is oriented to analyze green marketing from the perspective of sustainable consumption, for this purpose a correlational study was used between the two variables of green marketing study mediated by four dimensions: sustainability, price, quality, and durability proposed in four scenarios of purchase decision, segmenting consumers by age, gender, economic and social status and level of education. The main results show that women tend to buy sustainable products regardless of their level of education and that young people are the age groups that show the greatest interest in environmental care. The correlation matrix reflects that the male gender is more inclined to price and quality of products rather than sustainability. Low, medium, and high economic and social status are inclined towards the purchase scenario where sustainability goes hand in hand with price, quality, and durability of products.

Ethical decision-making in purchasing channels: A context of developing B2B markets

ABSTRACT The present study analyses the responses of supply chain professionals facing certain ethical situations while performing their strategic tasks. The objective of this empirical investigation is to link the six dimensions of moral intensity (magnitude of consequences, proximity, probability of effect, social consensus, temporal immediacy, and concertation of effect) and two dimensions of ethical ideology (idealism and relativism) with three sequential phases of EDM (Ethical Decision Making), i.e. recognition, judgement, and intention, while purchasers are exposed to ethical dilemmas in B2B context. A mixed experimental research methodology was employed to analyse the responses of 289 purchasing professionals from a developing country. Six dimensions of moral intensity were manipulated into three conditions (Low, High, and Control) using 18 originally constructed purchase scenarios. The study’s findings reveal that idealism, relativism, and moral intensity are associated mainly with ethical decision-making stages. Among four sets of ethical ideologies, absolutists were found to be more ethical. The study concludes by giving future research directions and implications for practitioners.

A decision support model for buying battery electric vehicles considering consumer learning and psychological behavior

Developments in battery electric vehicles (BEVs) have received more and more attentions in the last decades due to alleviating carbon emissions and energy crisis. Consequently, how to rank alternative BEVs to assist consumers make better purchasing decisions is a worthy research study. However, there are still some defects in the existing studies for ranking of BEVs: 1) the evaluation index system of BEVs is not comprehensive; 2) the determination of criteria weights cannot be well applied to the actual purchase scenarios; and 3) the psychological behavior of consumers is ignored. To address those shortcomings, this paper proposes a decision support model to assist with consumers to buy BEVs. First, a systematic evaluation criteria system of BEVs including quantitative and qualitative indicators from parameter configurations and online reviews is constructed. Then, a weight algorithm considering consumer learning is proposed to determine the criteria weights. Furthermore, a decision support process considering consumers' regret avoidance behavior is proposed. Finally, an actual BEV purchase case is given to illustrate the practicability of the decision support model. This can be seen in case studies the proposed support model can be well applied to consumers with different regret avoidance behaviours.

Value stream mapping from the customer's perspective: expanding concepts, representations and key performance indicators based on a typical real case study

PurposeThis study aims to improve the buying experience for both customers and providers by presenting a conceptual basis which seeks to expand the usual understanding, representation, mapping and measurements of the different value and non-value stages of a customer purchase journey (CPJ).Design/methodology/approachInspired by the precepts of lean thinking, with emphasis on the value stream mapping method, the approach is based on an in-depth analysis of a real and typical e-commerce acquisition of an electronic customised product (a mobile phone) during the COVID-19 pandemic.FindingsThis study demonstrates different types of consumer stages, values and wastes for the CPJ. This allowed the development of a mathematical formulation – named customer journey engineering (CJE) – from which improvements of the different categories can be identified. Exemplifying with those whose implementations require no further efforts or costs, the following results could be readily obtained in the case studied: a reduction of 96 h of non-value activities, an improvement of approximately 15% of the established index for customer satisfaction and avoidance of loss worth US$50 for the analysed customer.Research limitations/implicationsThe consistency and applicability of the qualitative and quantitative findings presented here should be examined further in other customer purchase scenarios, allowing enhancements of the CJE approach.Originality/valueRegardless of the context in question, this investigation attempts to identify and precisely define any common universal elements, often overlooked, which constitute the structure of any CPJ and are crucial for its understanding and improvement.

Cost-effectiveness and gain-sharing scenarios for purchasing a blockchain-based application in the maritime supply chain

Maritime supply chain (MarSC) stakeholders interact with third parties (e.g. freight forwarders, 3PLs, financial institutes, custom authorities) to facilitate the cargo flow and exchange of information, documents, or financials. Hence, MarSC stakeholders are increasingly interested in innovative technological solutions that vouch for the authenticity and/or the ownership of digital assets without the control of a central third party. Extended research is carried out to prove how applications based on the distributed ledger technology or blockchain address these requirements, yet limited research investigates their purchasing process and economic implications. This paper uses the phytosanitary certificate in an international supply chain flow as a case study where interaction between multiple stakeholders is fundamental and analyses the purchase scenarios of a blockchain-based tool. To do so, it uses a theoretical model that identifies and quantifies the costs and benefits incurred by MarSC stakeholders, formulates gain-sharing scenarios and presents the results of a sensitivity analysis to show the dependence between the data-use and the potential economic gains it generates. The results show that freight forwarders could share economic benefits with shippers or consignees to anticipate purchasing a blockchain-based tool.

Does awe facilitate conformity in tourism consumption? Evidence from China

ABSTRACT Although conformity is frequently used to increase the appeal of popular tourism products, research on the drivers of tourist conformity is limited. Using laboratory experiments conducted in China, we demonstrate that the emotion of awe, which is often experienced while traveling but seldom investigated in the tourism literature, may have a novel influence on tourist conformity that has been overlooked so far. We conducted three studies using different manipulation methods and tourism purchase scenarios to provide convergent evidence that participants who experience awe (vs. neutral states) prefer majority-endorsed tourism-related products over minority-endorsed ones. Moreover, the effect of awe on conformity is partly mediated by social connectedness. Our findings shed light on the emotional determinants of tourist conformity, enrich research on the consequences of awe, and have useful managerial implications for tourism practices in terms of guiding consumer conformity by managing tourists’ emotional experiences.

Drivers of autonomous vehicles\u2014analyzing consumer preferences for self-driving car brand extensions

Autonomous cars are considered to be the next disruptive innovation that will affect consumers. It can be expected that not only traditional automakers will enter this market (e.g., Ford) but also technology companies (e.g., Google) and newer companies dedicated to self-driving cars (e.g., Tesla). We take a brand extension perspective and analyze to what extent consumers prefer autonomous cars from these brand categories. Our empirical study is based on discrete choice experiments about adopting autonomous vehicles in a purchase scenario and in a renting context. Our findings show that brands play a central role when making autonomous driving decisions. Brand preferences differ systematically when buying versus renting a self-driving car. While technology brands are most preferred overall, consumers favor automaker brands over new brands only when purchasing, not when renting. We further disentangle the brand strength into the marginal effects of image associations. For example, Google’s strong brand positioning can be explained by experiences with the parent brand, but it could still improve brand strength by highlighting the relevance of the associated brand portfolio for self-driving cars. The effect of these brand extension success factors differs between parent-brand categories and also between the renting and purchasing scenarios, which requires a dedicated brand management.

The Role of Information Search Cost on Seller's Disclosure of Negative Information

This study has attempted to provide an important understanding about the information asymmetry in markets through empirical analysis on how the disclosure of low quality can increase demand even in the short run. More specifically, this study has extended the previous findings from the related literature by considering the effect of information search cost and providing empirical evidences about the effect of voluntary disclosure of low quality, using an experimental method with purchase scenarios. The results from our analysis show that reduced perceived risk have an important effect on sharing negative information, while the effect of information search cost is minimal. We also explain the circumstances whereby the information disclosure of a seller with low-quality product can enhance not only the seller’s profitability but also customers’ welfare by increasing the market demand and the demand for the seller claiming high quality.

Information Aggregation in Large Collective Purchases

We study a monopolist that uses the following scheme to gauge market traction for its common-value, excludible product. The monopolist offers its product at a given price, and each potential consumer decides whether to buy it. The contributions are collected. The product is supplied only if the total demand exceeds some threshold set by the monopolist, as is common in crowdfunding platforms and collective-buying sites. We study how well such collective purchase scenarios perform from: (1) the monopolist's perspective, in terms of market penetration, and (2) from the society's perspective, in terms of efficiency and social welfare.

A further approach in omnichannel LSQ, satisfaction and customer loyalty

PurposeThe purpose of this research is to analyse the LSQ in the context of three different omni-channel purchasing scenarios while considering four dimensions (timeliness, availability, condition and return of the product) and to assess their impact on customer satisfaction and loyalty. In addition, an evaluation of the relationship between satisfaction and loyalty in the mentioned omni-channel scenarios is investigated.Design/methodology/approachA mixed two-phase research methodology is proposed: an initial qualitative analysis with six focus groups followed by quantitative research through surveys with a sample of 323 individuals. The proposed scales were tested for three purchase scenarios: “buy-online-ship-direct” (BOSD), “buy-online-pickup-in-store” (BOPS) and “buy-in-store-ship-direct” (BSSD). The data were analysed using partial-least squares structural equation modelling (PLS-SEM) techniques.FindingsIn an omni-channel context, the most important element of the logistics service deriving in satisfaction was timeliness for all the scenarios. The return-of-product dimension of LSQ was relevant for satisfaction in “ship-direct” scenarios, while the availability dimension was only relevant for customer loyalty in the BOPS scenario. Customer satisfaction had a positive impact on loyalty in the three purchasing scenarios.Practical implicationsThese results might provide guidance to managers in order to improve not only logistics procedures and processes but also their relationships with their customers. Moreover, retailers need to account for return policies in ship-direct channels, prioritize punctuality and adapt delivery terms to ensure product availability.Originality/valueThis work represents a progress in LSQ research in the B2C omni-channel environment by extending its study to a previously untested purchasing scenario (BOSD) and including a fundamental and insufficiently explored dimension of the LSQ: the return.

Concept, Content, and Context Perspectives of Quality of Agrofood Products: Reflections on Some Consumer Decision-Making-Purchase Scenarios.

Quality attributes in agrofood products can be somewhat difficult to identify and observe. The quality of the same agrofood product in two different market shelves would, most likely not be exactly the same when compared to each other, even if both belong to the same batch. There are quality attributes peculiar/specific to one product, which stands it unique from the other. The basics/fundamentals underlying such peculiarities/specificities can be found either in concept, content, and context perspectives of quality. It appears however that no publication has deliberated on these three aspects together, that is, concept, content, and context perspectives of quality of agrofood products, particularly on how it contributes to the decision-making to purchase an agrofood product. We, therefore, in this current work, looked at concept, content, and context perspectives of quality of agrofood products, specifically discussing some reflections on some consumer decision-making purchase scenarios. Each of these, “concept,” “content,” and “context” perspectives independently project very important meanings to the quality of agrofood products. There appears a thin line that would separate concept, content, and context perspectives of quality in the choice/decision-making of purchase of agrofood products. To solely depend on either concept, content, or context perspective of quality will likely provide the consumer with insufficient information about the (given/specific) agrofood product. Interaction between any two will most likely improve the information. Obviously, the interaction between the three, would most likely provide sufficient information about the quality and help consumers make a more informed decision of purchase.