Repurchase Frequency Research Articles

Understanding the role of physical trial for good shopping decisions

Purpose In the context of omnichannel distribution development, this study aims to understand how and why trying products out helps people make good purchase decisions (i.e. decisions that they do not regret later). Design/methodology/approach The paper uses mixed methods consisting of an experiment (n = 162), a series of interviews with consumers (n = 16) and in-store observations (n = 202). Findings Results show that trying products out allows us to evaluate how they will fit, which increases purchase intention. They also indicate that trying leads to better decision-making. Research limitations/implications This paper enriches product trial literature and sheds new light on how sales channels combine in omnichannel distribution. Practical implications The conclusions of this research will be useful to retailers who want to help consumers make better purchasing decisions. Social implications Helping consumers make better decisions minimizes the societal impact of consumption by reducing the frequency of re-purchases and product returns. Originality/value The originality of this research lies in using mixed methods, providing a complete understanding of why consumers try products out and how they do so.

A Study on the Influence of Product Characteristics on Consumer’s Purchasing Intention: A Case Study of Mixue Ice Cream & Tea

Purpose - With the improvement of people’s quality of life, tea drinks have become increasingly integrated into consumers’ daily routines. However, due to the prevalence of commodity homogenization, various competitive brands have emerged in the leisure industry, such as Mixue Ice Cream & Tea, Coco, Auntie in Shanghai, Dieting, and others, which has resulted in mounting competitive pressure within the industry. Design/Methodology/Approach - In order to enhance the competitiveness of Mixue Ice Cream & Tea and increase market sales by improving consumer repurchase frequency, this study conducts an in-depth analysis of the product characteristics of Mixue Ice Cream & Tea and examines their relationship with consumer behavior. Findings - Based on the research objectives described above, this paper conducts a questionnaire survey on consumers and target Mixue Ice Cream & Tea consumers to analyze the relationship between product characteristics and consumer behavior. The current situation of the leisure beverage market is also analyzed, and statistical analysis is performed on the collected data. The results indicate that product characteristics positively impact customer satisfaction and purchase intention. Research Implications - To improve the sales volume and market share of Mixue Ice Cream & Tea, this study incorporates the experimental results to provide marketing recommendations and corresponding strategies for Mixue Ice Cream & Tea enterprises. In addition, the findings will provide important guidance for developing Mixue Ice Cream & Tea enterprises in the leisure beverage market.

Analisis Pengendalian Persediaan Barang Dagang (Inventory) Dan Harga Pada Keputusan Pembelian Air Minum Dalam Kemasan (Amdk) Merek Isqo PT Metro Surya Inovasi (PT Mesva) Di Kota Metro Lampung

This research is a qualitative research with a qualitative descriptive method. This study took 1 respondent from the warehousing staff of PT Metro Surya Innovation as a provider of information about the company's merchandise inventory and 6 large outlets selling Isqo brand bottled drinking water as a provider of price information on purchasing decisions for isqo brand bottled drinking water. Data collection techniques using observation, interviews, and documentation. Based on the results of the analysis and assessment in this study, it shows that in the period August-December 2021, the EOQ/KPE method is 999 units/box with a repurchase frequency of 14 times. Safety stock is 95 units/box and ROP/TPK 190 units, the maximum inventory of goods at the company that must be maintained is 1,094 per day. Based on the comparison results if the merchandise control method is carried out using the EOQ/KPE method, the company can increase efficiency and provide benefits to the company with a cost difference of Rp. 7,281,281. The results show that by using the EOQ/KPE method, the company can precisely determine the safety stock so as to minimize the occurrence of shortages of goods and can also determine the ROP/TPK to avoid delays in ordering and delivery of goods to the customer.

Antecedents of Customer Bargain Satisfaction In Informal Retail Markets: Insights from Street Shoppers in Lagos, Nigeria

This study aims to expand the understanding of customer satisfaction by looking at the factors that explain the under-investigated dimension of customer bargain satisfaction in informal retail markets. The study adopted an exploratory sequential approach by conducting two focus group discussions and administering a cross-sectional survey of 1012 shoppers in Lagos, Nigeria. Factors such as product scarcity, product quality, customer identification with retailers, repurchase frequency, perception of the retail environment, and ethical sales behaviour affect customer bargain satisfaction in informal retail markets. No known studies have investigated the dimension of customer bargain satisfaction. The focus on Africa's informal retail context unpacks situational conditions that trigger consumers' bargain behaviour.

The role of consumer behavior and power structures in coping with shoddy goods

This paper aims to understand the increasingly prevalent phenomenon of shoddy goods and help honest firms better cope with the unfair competition posed by shoddy goods producers. We develop a game-theoretic model to examine the interaction between an honest manufacturer of quality goods (the truth-teller) and an unscrupulous producer of shoddy goods (the deceiver). Three power structures are considered: with the truth-teller as leader, with the deceiver as leader, and with equal-power players. Our equilibrium analysis suggests that when consumers make only one-time purchase, the truth-teller is prone to suffer profit loss. Yet some power structures may help the truth-teller mitigate the risk of losing profit. Specifically, when the announced quality of the deceiver is low enough, the truth-teller-as-leader power structure reduces the truth-teller’s risk of profit loss; in contrast, when the announced quality of the deceiver is not low enough, the deceiver-as-leader power structure has a better mitigating effect; and the equal-power-player power structure always works worst. We also investigate the role of consumer repurchase behavior in fighting shoddy goods by extending the model to incorporate consumer dissatisfaction and repurchase frequency. A numerical study indicates that consumers’ quality expectation disconfirmation sensitivity can deter the deceiver from exaggerating its product quality – either when consumers’ repurchase frequency is high or when consumers repurchase at a medium frequency in a market led by the truth-teller. Our findings yield new theoretical insights for firms and industries seeking to combat shoddy goods.

Identification of production planning and supply of glass bottles at the bottled tea company

Sinar Sosro Limited (SS Ltd) is a company that produces a variety of packaged teas with superior products of bottled tea with 220 ml glass bottles. Based on the preliminary research, the glass bottles still can meet the production but with the demand. In their production planning, the company applies a method of estimating or predicting so that production results cannot meet production demand. This is the background of the researchers to make production planning based on forecasting methods and determine the quantity of glass bottle orders to meet demand. In forecasting the demand for production of the 220 ml glass bottle packaging, the methods used are Moving Average, Exponential Smoothing, and Linear Regression by comparing the size of forecasting errors using Mean Absolute Deviation (MAD), Mean Square Error (MSE), and Mean Absolute Percentage Error (MAPE). To determine the supply of glass bottles used the EOQ (Economy Order Quantity) method to determine the purchase of the most economical glass bottles. Base on the data, the Moving Average method (n=9) was the best forecasting used to predict the 220 ml glass bottle packaging demand for the next period of 233,862 crates with MAD forecasting error of 13,680, MSE of 561,420,907, and MAPE 5.49% which is the smallest value of the three methods. The application of the EOQ method results in the most economical order of glass bottles that is 136,234 crates for one message with a total repurchase frequency of 21 times a year.

Buyback behaviour and the option funding hypothesis

We study how stock option grants are funded through share repurchases under conditions of option exercisability and moneyness. Using daily repurchase disclosures by U.K. firms, we corroborate our hypothesis that driven by flexibility, firms repurchase early in an option schedule while options are out-of-money and before becoming exercisable. Our findings show that when daily stock prices are below weighted average option exercise price and when options are not immediately exercisable, firms (a) increase daily repurchase volume (value), (b) increase repurchase frequency, and (c) have lower relative repurchase prices. We further evidence this by examining the change in treasury regulation that enabled firms to hold on to repurchased shares rather than cancelling them. Our findings show a strong support for option funding motives in the post-treasury regulation period when repurchase flexibility is greater.

Who will stay with the brand after posting non-5/5 rating of purchase? An empirical study of online consumer repurchase behavior

Customer retention has been fully examined in marketing research. It has been noticed that satisfied customers do not always retain and customer churn happens repeatedly in an e-Business context. In this paper, we focus on online consumer repurchase behavior on online business to consumer platforms after posting a non-5/5 rating of the purchased product. The non-5/5 rating can be taken as buyer’s self-claimed non-fully satisfaction on shopping experience. We investigate whether online consumers’ self-claimed non-fully satisfied shopping experience of a brand would attenuate their repurchase intention of the same brand, and further, what factors would impact their repurchase frequency and the time interval to the next purchase of this brand. We applied multinomial logit regression and ordinary least square regressions to Amazon review data to test the research hypotheses. We collected more than 241 thousand review records involving over 182 thousand buyers of Amazon beauty products. 44% of these buyers rated below 5, and 19% out of whom had repurchase records. The empirical results showed that consumers’ past shopping experience and the non-5/5 rating level significantly impact the possibility of repurchase intention; consumers’ emotional stability is associated with their repurchase frequency positively; their relationship proneness to a certain brand shortens the time interval to the next purchase of the brand. Managerial implications and future research directions are discussed last.

Market reaction to actual daily share repurchases in Greece

Using a unique, hand-collected data set of actual daily share repurchases from the Athens Stock Exchange, we examine the stock market reaction around the disclosure date of actual share repurchases, the factors that affect the size of that reaction, and the motives behind share acquisitions. We find that different firms proceed to actual repurchases for different reasons: the results for the small firms and the firms with high book-to-market ratio repurchases are consistent with the signaling undervaluation hypothesis, while the results for the large firms and firms with low book-to-market ratio are in line with the price support hypothesis. In contrast to other studies, we find that long-term abnormal returns are higher for repurchasing firms compared to non-repurchasing controls and depend positively on the frequency of repurchases.

The Evolution of Employee Compensation, Dilution, and Payout Policy

Employee compensation may impact payout policy by (i) incentivizing managers with non-dividend-protected options to favor repurchases over dividends and (ii) diluting earnings, which firms can neutralize through share repurchases. Both the dividend-protection and dilution channels imply a positive relation between stock options and repurchases. Yet, recent studies and trends suggest repurchases do not decline when option usage falls around mandatory option expensing, casting doubt upon a causal relation between equity compensation and payout. We examine this relation in light of the shift from options to restricted stock. Our results strongly support a positive relation between compensation and share repurchases via the dilution channel; dividend protection has no first-order effect on payout. Difference-in-differences analyses using a shock to compensation around mandatory option expensing and an instrumental variable approach suggest that the relation between dilution and payout is likely causal. Further, as the dilution channel predicts, equity compensation positively relates to repurchase frequency and timing.

What Does Repurchase Frequency Imply About Repurchase Motives?

What Does Repurchase Frequency Imply About Repurchase Motives?

Market Reaction to Actual Daily Share Repurchases in Greece

Using a unique, hand-collected data set of actual daily share repurchases from the Athens Stock Exchange, we examine the stock market reaction around the disclosure date of actual share repurchases, the factors that affect the size of that reaction, and the motives behind share acquisitions. We find that different firms proceed to actual repurchases for different reasons: the results for the small firms and the firms with high book-to-market ratio repurchases are consistent with the signaling undervaluation hypothesis, while the results for the large firms and firms with low book-to-market ratio are in line with the price support hypothesis. In contrast to other studies, we find that long-term abnormal returns are higher for repurchasing firms compared to non-repurchasing controls and depend positively on the frequency of repurchases.

User-driven Customization and Customer Loyalty: A Survey

For companies, customer loyalty is one of the main goals to ensure long-term success. However, it is not completely resolved which mechanism stimulates customers to repurchase the same product or same brand respectively, repurchase being an important aspect of loyalty. The customer's level of satisfaction with a product is an adequate indicator for customer loyalty, but is seen as not fully sufficient. Rather, the emotional attachment of a customer with a product or brand may be crucial for his loyalty. Amongst others, the emotional attachment or sentiment of connection can be encouraged through the active participation of the customer in the development and configuration process of the product in terms of a co-creation. The customer can be put in the position of a co-designer throughout the whole development and buying process. Yet, no literature was found investigating whether customization in the use phase of a product -as a post-purchase configuration- equally leads to an emotional attachment and renders the product a personal item. Supposedly, a customized product triggers customers to 1) keep a current product longer and therefore postpone the moment of perceived obsolescence and 2) rebuy the same product or brand respectively significantly more often.To respond to the corresponding research questions, a questionnaire was developed and distributed online via email and popular social media platforms. Subject to the questionnaire were smartphones as everyday objects. The participants answered to question items regarding their customization habits of software as well as hardware components, their usual repurchase frequency of smartphones and preferred product/brand. The data was analyzed for statistical relations between customization and repurchase behavior; implications for product life-cycles and potentials for producing companies were discussed.

The Information Content of Repurchase Program Status Updates

This paper examines firms’ voluntary disclosures regarding open market repurchase (OMR) programs, i.e., announcements that firms have suspended, resumed, or completed repurchases. Such disclosures are not uncommon but have not been investigated before. Abnormal returns around announcements are, on average, positive when starting or continuing repurchases and negative when stopping repurchases, either by suspending uncompleted programs or by not immediately following completed programs with new programs. Our findings suggest there is less managerial flexibility in repurchases than previously thought. Managers’ decisions to provide status updates relate to materiality, auditor quality, product market competition, and repurchase frequency. Also, when we examine a positive shock to mandatory disclosure, we find that mandatory disclosure substitutes for voluntary disclosure and the effects of auditor quality, strategic considerations and industry peers on voluntary disclosure choice are attenuated.

커피전문점의 디저트 메뉴품질이 점포선택과 재방문에 미치는 영향

The purpose of this study was to develop definite and practical marketing strategies for coffee shop managers or preliminary founders through empirical analysis of the effects of desert menu quality characteristics a mainstay of coffee shop-on store choice and revisit frequency. The results of this study are summarized as follows. The results showed that the menu quality characteristics taste, price, hygienic conditions, and health had significant effects on store choice and repurchase frequency through customer satisfaction, whereas originality was rejected due to the lack of menu originality. Both shop choice and repurchase frequency through customer satisfaction were also significant. This suggests that there is a need for the development of a diverse desert menu to increase competitiveness, creation of new customers, and regular customer management.

Economic conditions and the motives for multiple open-market share buybacks

We examine the impact of business conditions on the frequency of share repurchases. The results generally indicate that share repurchase programs are positive and statistically significant in HIGH economic states relative to the other economic states. Segmenting the data into frequency of repurchases, we find evidence suggesting different economic states exert influence on frequent and infrequent but not occasional repurchase programs. Further, we show that firms that institute frequent share repurchasing programs experience stronger returns across different business cycles compared to infrequent and occasional share repurchasers.

Planned Obsolescence as an Incentive Device for Unobservable Quality

Stressing the multi-dimensional character of quality, I propose a new theory of planned obsolescence as an incentive device that benefits consumers. I argue that planned obsolescence increases the frequency of repurchases and, therefore, enables consumers to punish producers faster for a lack of overall quality. This strengthens the producers’ incentives to provide adequate levels of quality. The theory implies a trade-off between a good's durability and its other unobservable quality attributes. This leads to an artificially high degree of obsolescence as compared to the first best where quality is observable.

Modeling repurchase frequency and customer satisfaction for fast food outlets

Although customer satisfaction and loyalty have attracted a lot of attention in service management research, relatively few studies have examined the impact of waiting time and service quality on customer satisfaction and repurchase frequency. In this study, we model the relationships between customer satisfaction, repurchase frequency, waiting time and other service quality factors in fast food outlets. The results indicate that waiting time and other service factors such as staff attitude, environment, seat availability and food quality significantly influence the customers’ return frequency. Results also show that waiting time, staff attitude, food quality and food variety all significantly affect customer satisfaction. It is also found that the significance of the relationship depends on the timing of the visits. These models will help managers to understand the critical factors that influence customer loyalty and satisfaction in the fast food industry and help them make improvements accordingly.

Motives for Multiple Open-Market Repurchase Programs

We examine differences in motives, firm characteristics, market performance, andsubsequent operatingperformance offirms that repurchase shares frequently versus firms that repurchase only occasionally or infrequently. Frequent repurchasers are much larger, have significantly less variation in operating income, and higher dividend payout ratios. Infrequent repurchases are made by smaller firms with more volatile operating income, lower institutional ownership, lower market-to-book ratios and high degrees of asymmetric information. Although most repurchases are viewed favorably by the market, infrequent repurchases receive a much strongerpositive reaction. Finally, we find little evidence of improved operatingperformance following repurchase announcements. In both the academic and practitioner literature, share repurchases are viewed as relatively isolated events. It is considered to be a relatively rare set of circumstances that result in a firm repurchasing its own equity. However, in recent years it has become common for a firm to repurchase its shares on the open market on a frequent or regular basis. The reasons or motives for repurchasing shares on a frequent basis may differ from reasons to repurchase shares only occasionally or infrequently. In this paper, we examine the differences in the motives and firm characteristics for firms that repurchase frequently compared to firms that repurchase only occasionally or infrequently. Signaling or undervaluation is the motive most commonly attributed to share repurchases. Researchers view a firm's announcement of its willingness to invest in itself as a signal that the stock is undervalued. However, it is unlikely that a firm could credibly signal that its stock is undervalued on a regular basis. Therefore, there must be alternative reasons or motives for firms to frequently repurchase their stock. We use this idea to provide a distinction between differing motives for repurchases based on repurchase frequency. We find that less-frequent repurchases tend to be larger programs, that is, these firms seek to repurchase a greater percentage of their shares outstanding, than do the more frequent repurchasers. The firms that repurchase most frequently are generally larger, have higher institutional ownership, higher market-to-book ratios, more stock options, lower debt ratios, lower managerial ownership, and lower volatility of operating income. Infrequent repurchases tend to be initiated by firms with a potentially high degree of asymmetric information and preceded by relatively poor market performance. Infrequent repurchases are made by smaller firms with higher variability of operating income, higher levels of capital expenditures, lower market-to-book ratios, and lower levels of institutional ownership. Market reactions to the repurchase announcements are generally consistent with these ideas. Previous research reports abnormal returns of 2% to 3% around the announcement of openWe would like to thank Chris Anderson, Srini Krishnamurthy, Roni Michaely, Mike Weisbach, James Seward (the Editor), a particularly helpful anonymous referee, and also seminar participants at Binghamton, Case Western Reserve, Kansas, Missouri, Texas Tech, and Texas A&M for their helpful comments and suggestions. All remaining errors are ours.