Mark T. Spence

Decomposing the value of department store shopping into utilitarian, hedonic and social dimensions: Evidence from Finland

– The purpose of this paper is to decompose total customer value as perceived by department store shoppers into utilitarian, hedonic and social dimensions, and empirically test this conceptualization in a Finnish department store shopping context., – Data were collected by a questionnaire administered over three days at a department store that generates the second largest turnover in Finland. A total of 364 shoppers completed the questionnaire., – Empirical evidence supports our tripartite conceptualization of total customer value. In particular, social value is an independent construct. Further, social value varies by day‐of‐week, with a significant increase on Saturday (versus weekdays) when the store is more crowded, whereas no such differences in utilitarian and hedonic values were detected., – The principal contribution is a tripartite conceptualization of total customer value that incorporates utilitarian, social and hedonic value dimensions in a department store shopping context. Individually these dimensions are all well rooted in streams of consumer behavior literature, albeit mostly at the product or brand, not the store, level. Increasing our understanding of these softer aspects of shopping, particularly the social dimension, is important because they represent possible differentiating factors in the highly competitive and often commoditized retail markets.

Causes and consequences of emotions on consumer behaviour: A review and integrative cognitive appraisal theory

Purpose – Consumption situations can be emotionally charged. Identifying the cause(s) of emotions has clear practical import to the understanding of consumer behaviour. Cognitive appraisal theory serves this purpose; however, a consensus has not yet emerged concerning terminology, number of relevant concepts and concomitant construct measurements, and theoretical linkages between constructs. This paper attempts to rectify this shortcoming.Design/methodology/approach – This conceptual paper provides an extant review of emotions literature as it pertains to cognitive appraisals and consumption behaviours. Based on this review an integrative cognitive appraisal theory is advanced that is parsimonious and incorporates similarities across the various appraisal theory perspectives to date.Findings – Four appraisals are proffered that appear capable of implicating specific emotions and their effects on consumer behaviour. The appraisals advanced are outcome desirability that encompasses pleasantness and goal con...

Factors Affecting Encoding, Retrieval, and Alignment of Sensory Attributes in a Memory‐Based Brand Choice Task

Sensory attributes, such as sound quality ascertained by listening to a stereo, are often ambiguous and therefore difficult to encode and retrieve. Despite this, consumers often place more weight on these attributes compared to verbally described market information when making brand choice decisions. Results from two studies demonstrate that providing criteria to evaluate the sound quality of competing brands of stereos facilitates the encoding, retrieval, and alignment of the sensory attribute in a brand choice task. Study 1 shows that without criteria to evaluate sound quality during trial, memory for this attribute is poor. Further, perceptions of sound quality assimilate to conflicting market information, which adversely affects decision performance. The reverse is true when evaluative criteria and a scheme to rate the criteria are provided: memory for sound quality improves, perceptions of sound quality contrast with conflicting market information, more weight is placed on sound quality when decision making, and better choices are made. Study 2 shows that providing evaluative criteria during product trial enhances performance through improvement in the encoding process. Copyright 2002 by the University of Chicago.

Do Australian and American consumers differ in their perceived shopping experiences

Purpose – The purpose of this paper is to present findings from an experiment designed to test the impact of crowding perceptions (both human and spatial), emotions (positive and negative) and shopping values (utilitarian and hedonic) on shopper satisfaction. Culture is explored as a moderating variable with the expectation that it systematically affects perceptions and values, which, in turn, influence the shoppers experience with the store.Design/methodology/approach – Data were collected via a 2×2×2 full factorial between subjects design with two variables, one manipulated and one measured. The two manipulated variables were spatial density (high versus low) and human density (high versus low). The measured variable was country of origin, where subjects were coded as either American or Australian.Findings – Culture moderates the effects of perceived spatial crowding as well as both hedonic and utilitarian shopping values on shopper satisfaction. Specifically, the adverse effect of perceived spatial cr...

The effect of construal level on time perceptions, confidence in judgements and future preferences

Purpose – This paper aims to examine how activating an abstract versus concrete construal as a retrieval cue – prior to providing estimates but after exposure to the stimulus – affects retrospective duration estimates of a hedonic experience, the kind of experience one might wish to repeat. Recent research has examined the effect of construal mindsets on prospective time perceptions (Hans and Trope, 2013) as well as the prediction of future durations (Kanten, 2011; Siddiqui et al., 2014). Design/methodology/approach – Two experiments are presented to test four hypotheses. The effect of construal level on time perceptions, confidence in duration judgments and future preferences using two different construal level manipulation techniques and a range of measures for the dependent variables is demonstrated. Findings – This research found that compared to a neutral experience, time perceptions of an enjoyable event are not explained by differences in the level of attention paid to the stimuli; that duration es...

Optimising the internal value chain: Principles and practices

The employee–customer interface in hedonic services requires high quality interactions at key touch points to ensure experiences are positively remembered. We propose an approach that combines service blueprinting with internal marketing to achieve these experiences. While internal marketing suggests using marketing techniques for hiring, retaining and motivating employees, the literature in this field has been largely independent of each employees contribution to the internal value chain. Service blueprinting is a useful approach which makes explicit the value creation processes used in service production. No study has thus far connected the blueprint (which identifies functions to be performed) to internal marketing (which specifies the mechanisms for hiring, retaining and motivating the people performing the functions). This paper proposes a service value chain optimisation framework to enhance employee–customer interactions in hedonic services using these two research streams.

Omni-channel retailing: propositions, examples and solutions

Abstract Customers are not passive agents, but intrinsic to the value creation process. Because retailers are the customer’s link to the marketplace they are uniquely placed to develop value co-creation opportunities that give themselves a strategic advantage. Omni-channel retailing is a means to create an advantage by forging deeper customer relationships and potentially developing new markets. Omni-channel retailing can appeal to the heterogeneity in customers’ shopping orientations with the aim of providing a seamless cross-channel experience. However, without a clear strategic purpose, omni-channel initiatives can easily result in unbeneficial – or worse, counterproductive – investments. To address this, the purpose of this paper is to formulate guiding principles to facilitate decision-making with respect to developing an omni-channel marketing strategy. Consequently, two complementary research streams are presented. The first pertains to strategic considerations regarding omni-channel retailing; the second pertains to value co-creation as seen through a service-dominant logic lens. These research streams are then linked to derive five propositions– along with examples and solutions – to assist retailing decision-makers when developing an omni-channel marketing strategy. These propositions underline the importance of viewing channels as value-facilitating resources that should be aligned with the customer’s decision journey.

From Electronic WOM to Social eWOM: Bridging the Trust Deficit

The purpose of this study is to identify and uncover characteristics of social electronic word-of-mouth. Social eWOM applies to social media platforms in which membership is restricted and content providers are known to recipients. In relation to traditional eWOM platforms that post anonymous reviews, social eWOM has several unique characteristics: intended audience, information trustworthiness, source evaluation, and interpersonal relationships. Therefore, social eWOM should be regarded as conceptually different from anonymous eWOM, with the two serving as endpoints on a continuum. Marketing managers should understand the distinct role and value-creating potential of social eWOM in relation to other forms of WOM and social media strategies should consider methods for converting anonymous eWOM into social eWOM.

How brand loyal shoppers respond to three different brand discontinuation scenarios

Purpose Retailers may respond to a manufacturer discontinuing a brand or product range in three ways: not offering an alternative, thus reducing the assortment size; replacing it with a substitute; or introducing a rebranded product by the same manufacturer, if such an option is available. This study aims to evaluate all three scenarios and assess the extent to which total category sales are affected; how these discontinuations affect alternative offerings within the product category; and whether usage levels moderate within category switching behaviour. Shoppers did not have the option of switching stores to acquire the discontinued brand – their preferred brand/product range ceased to exist. Design/methodology/approach All three studies are quasi-experiments using scanner panel data. The product discontinuations examined are real events that took place within the major supermarket chain in New Zealand. Findings In all the three scenarios, average category sales decreased for the three-month period following the discontinuation. In Study 1, where a preferred brand of milk was discontinued with no replacement, overall category sales decreased but competing brands gained sales; introducing a replacement corn chip range (Study 2) successfully captured the spend on the discontinued range, but other brands lost sales; and rebranding a cereal (Study 3) decreased both brand sales and category sales. With the exception of Study 1, near-substitute product offerings did not capture a greater proportion of the spend from the discontinued brand as compared to less similar substitutes. Expectations were that heavy users would have a greater propensity to shift to near alternatives than would medium/light users; however, none of the studies lend support. Originality/value This is the first research effort to use scanner panel data to explore the reactions by brand loyal customers to three different brand discontinuation scenarios initiated by the manufacturer.

Parsing out the effects of personal consumption norms and industry influences on food consumption volume

Purpose The purpose of this paper is to test whether individuals possess personal consumption norms and idiosyncratic reference points to which they target behaviour. These personal consumption norms are related to the amount of food consumed independent of industry influences, specifically the size of the package offered and the perceived healthiness of the food. We also examine the extent to which one’s commitment to adhere to their personal consumption norm (referred to as “commitment to norm”) influences food consumption volume. Design/methodology/approach Three experiments are presented, two involve estimates of food consumption and the third examines actual food consumption. Findings All studies demonstrate that participants can provide a personal consumption norm for how much food they would typically consume that is independent of manipulated industry influences and that actual consumption is significantly related to their personal consumption norms. Furthermore, commitment to norm is negatively related to the absolute difference between their personal consumption norm and the amount of food consumed; however, supporting evidence was only realized in the case of actual food consumption, suggesting that commitment to norm does not have an effect on the formation of intentions. Research limitations/implications The authors demonstrate that at a point in time, personal norms are fixed. However, it is possible that norms may be shaped by industry influences over time. The authors suggest further research into how these personal norms evolve over time, as well as assessing how these norms affect the likelihood of going from zero consumption to some positive amount. Practical implications Many studies indicate that marketers can easily influence food consumption volume. However, their ability to influence actual consumption volume is circumscribed by factors beyond their control, namely idiosyncratic personal consumption norms. Social implications Over time, it is likely that personal consumption norms have emanated from a variety of antecedents, almost certainly including prior industry experience and situational/social influences. Repeated exposure to external influences is likely to shift the personal norm reference point over time. Originality/value Personal consumption norms are carefully disentangled from industry influences and are shown to significantly relate to food consumption volume, independent (but not to the exclusion) of industry influences.