Dale F. Duhan

Influences on Consumer Use of Word-of-Mouth Recommendation Sources

This article reports the development and testing of a theoretical model of the initial stages of recommendation-based decision making by consumers. Although consumers use a variety of recommendation sources, they have different motivations for the use of different sources. The model focuses on the factors that influence the likelihood of consumers using strong-tie sources (e.g., friends and family) and weak-tie sources (e.g., acquaintances or strangers) or recommendations. The factors used in the model are the prior knowledge level of the consumer about the product being considered, the perceived decision task difficulty level, and the type of evaluative cues sought by the consumer. Hypotheses are tested using data collected in an extensive field study with consumers. Two paths or routes of influence on the use of recommendation sources are proposed and confirmed in the study.

Differential Effects of Experience, Subjective Knowledge, and Objective Knowledge on Sources of Information used in Consumer Wine Purchasing

The decision to consume wine has been associated with variables such as product involvement, variety seeking, demographic characteristics, experience, and sources of information. The purpose of this study was to examine the decision process for wine selection in different situations. Data were collected from a sample of wine consumers in Texas and a total of 632 completed responses were obtained. The questionnaire was designed to determine consumer experience, knowledge, and use of differential sources of information to make a purchase decision on wine purchased in a store for home consumption and wine purchased in a restaurant. The data were analyzed using structural equation modeling. Results indicate that usage experience forms the basis for subjective and objective knowledge. High levels of objective knowledge are related to using impersonal sources of information (wine guides, reviews, and advertising) to make purchasing decisions. An additional finding was that high levels of subjective knowledge are positively related to impersonal sources and the self (ones own preferences) and negatively related to using personal sources (friends, acquaintances, and sales personnel). These results and their implications for wine marketers are discussed.

Supervisor Communication Practices and Service Employee Job Outcomes

On the basis of findings from the communications, marketing, and management literatures, the relations between four supervisor communication practices and service employee job performance, job satisfaction, and facets of ambiguity are examined. The results indicate that supervisor communication practices are differently associated with service employee job outcomes; frequency of supervisor-service employee communication is associated with employee job satisfaction, indirect communication content is associated with reduced employee ambiguity regarding the supervisor, and bidirectional communication is associated with employee job performance and multiple sources of employee ambiguity. Service employee ambiguity regarding customers is negatively related to job performance and satisfaction, whereas ambiguity regarding ethical situations is negatively associated with job satisfaction alone.

An integrated model of sales managers’ communication practices

Drawing from several diverse streams of research, the authors develop the rationale and empirical background for considering the role of sales manager communication practices. Using a multifaceted conceptualization of communication as its base, the study justifies, proposes, and evaluates a model describing the relations among sales managers’ communication practices and salesperson ambiguity, satisfaction, performance, and commitment. The results support the hypothesized model and suggest that sales manager communication practices are associated with these important salesperson job outcomes.

Point-of-purchase displays, product organization, and brand purchase likelihoods

Can point-of-purchase (POP) displays cause a decrease in sales of the featured brand? In an actual test-market promotion, the use of special POP displays led to a decrease in sales of featured wines from a specific U.S. region. Moreover, sales of regularly shelved wines from competitive regions actually increased. The results of a laboratory experiment supported the explanation that the POP displays essentially reorganized the wines into region categories within the stores, making it easier for consumers to compare alternatives by region. As a result, sales of wines from preferred regions increased and sales of wines from disliked regions decreased relative to when the wines were displayed by variety categories on regular shelf space. Further evidence indicated that reorganizing products by levels of a given attribute influences purchase likelihoods mainly when the attribute is otherwise low rather than high in salience and when brands have normally high rather than low purchase likelihoods.

Competition in the third millennium Efficiency or effectiveness

Abstract Neoclassical economic wisdom holds that competition is, exclusively, an efficiency-seeking enterprise. For neoclassical theory, therefore, competition in the third millennium will be, can only be, efficiency seeking. In contrast, conventional business wisdom is that competition in the third millennium will primarily be an effectiveness-seeking enterprise. This article uses resource-advantage (R-A) theory to explore whether efficiency or effectiveness — or both — will drive competition in the third millennium.

Consumer attitudes towards local wines in an emerging region: a segmentation approach

Purpose – The current study is an initial attempt to segment the wine market in an emerging region and examine local residents’ attitudes towards local wines.Design/methodology/approach – The study was conducted using data collected from US households through a telephone survey. Consumer attitudes towards local wines were operationalized through assessment of local wines; recommendation of local wines to others; and rating of quality of local wines. The K‐means clustering algorithm was applied to classify the respondents into clusters.Findings – The developing wine market was segmented into four clusters: “local enthusiasts”, “local detractors”, “local advocates” and “local non‐advocates”. Socio‐demographic and wine consumption profiles for each segment are developed. Of particular interest was the difference in recommendation behavior between two of groups of consumers with similar relatively high‐quality ratings and assessments of the local wines. Despite the similarity in attitudes, local advocates are...

Testing Competing Models of Sales Force Communication

Based upon findings from the organizational communication, management, and marketing literatures, this study evaluates three competing models describing sales force communication. The results of the analysis suggest that the theorized PEO (Sales Manager Communication Practices⇒ Sales Force Communication Environment⇒ Salesperson Communication and Job Outcomes) Model best accounts for the relations between sales manager communication practices and salesperson communication and job outcomes. Specifically, the PEO Model holds that sales manager communication practices are positively associated with salesperson perceptions of communication quality. Communication quality is positively associated with salesperson satisfaction with communication; salesperson communication satisfaction is positively related to salespersons job satisfaction and organizational commitment. These results and their implications for developing an effective sales force communication environment are detailed.

Outcomes of advertiser–agency relationships

The form and the role of cooperation within advertising relationships is the focus of this research. The theory posits that trust, commitment and cooperation are the core of the relationship and that the agency’s performance and the advertiser’s willingness-to-paymore for the agency’s services are the outcomes. Cooperation is defined and tested as a higher-order construct with three facets: shared problem solving, information exchange and flexibility. Competing theories are presented: the shared-influence model and the sole-mediator model. The contrast between the models focuses on whether the influence of trust and commitment is: (1) entirely mediated through cooperation; (2) shared with cooperation; or (3) bypasses cooperation altogether. The results indicate that although cooperation has a strong influence on agency performance, both trust and commitment have direct and indirect (mediated through cooperation) influences on performance. This supports the shared-influence model. The results also indicate that cooperation can successfully be measured as a higher-order construct.

Strategy Clusters in Japanese Markets: Firm Performance Implications

This study identifies generic Japanese strategy clusters and explores their performance implications. It is based on Japanese executives’ perceptions of the veracity of various PIMS strategy principles in Japan. Three distinct strategy clusters are identified around market position and product strategy dimensions. These Japanese strategy clusters, when moderated by such contingency factors as strategic orientation and product life cycle stage, offer unique performance implications for the Japanese market.