Outi Uusitalo

Switching to electronic stores: consumer characteristics and the perception of shopping benefits

The shift from physical (brick and mortar) stores and hard copy catalog stores toward electronic stores (e‐tailing) may be seen as a continuous innovation building on past changes brought about by in‐home shopping methods such as catalog, TV and direct mail. Why are e‐tailers then having such difficulty retaining their customers? In this paper, we examine the influence of consumer characteristics on perception of shopping benefits associated with electronic and physical shopping. Based on a mail survey of upscale US households, the empirical study finds the two shopping formats to be clearly different from each other in terms of perceived shopping benefits. The data supports the influence of individual characteristics (such as age, household income and family composition) as well as past behaviors on the shopping benefits associated with the two modes of shopping.

An alternative view of relationship marketing: a framework for ethical analysis

At present, a continuing widespread debate on the moral nature of business is widely recognized. However, it seems that the ethical evaluation of business practices is not very common in the area of relationship marketing. Analyses relationship marketing from the viewpoint of ethical theories. The theories applied are deontology, utilitarianism, virtue ethics, and emotivism. Reviews and analyses studies on relationship marketing issues in order to construct a framework for the ethical analysis of relationship marketing principles. Finally presents a framework for ethical analysis in the form of a constructive solution. Includes a model or code of business ethics for relationship marketers. The code will help make relationship marketing practices ethically longer lasting and, in this way, make the practices also more competitive and profitable.

Consumer perceptions of grocery retail formats and brands

Grocery retailers are operating in a slow‐growth market. The pursuit of market share is one of the main concerns for retail managers. The retail structure is becoming increasingly standardized and homogenous because of concentration of the ownership of stores. Cultural differences remain, however, between different European countries. Cultural factors influence the success of a positioning strategy. This study examined how consumers perceive grocery retail formats and brands in Finland. Data from personal interviews were used in highlighting the consumer perspective. Consumers perceive meaningful differences in various store formats, meanwhile store brands are seen as quite similar. Consumers rely on functional attributes of stores when discussing grocery stores. However, it seems that consumers are unable to recognize the fabricated, often imaginary differences at the brand level. The informant’s own, creative symbolic work results in this case to interpreting all grocery retail brands as similar. Managerial implications of the study are presented.

Competitive reactions to market entry

Grocery retailing markets are becoming more open and international. Finland is an example of a previously closed and restricted market which has recently opened its borders to foreign food products as well as food retailers. This paper describes the competitive dynamics and actions of the domestic retailers that took place when the first foreign grocery retailer entered the market. The paper concludes that the main competitive moves were related to the price of food products and to changes in product ranges. The domestic retailers imitated the concept of the entrant and added new low‐priced own brands into their product mixes. The roles of the market actors were reversed during the entry process: the domestic market leaders became followers and the small entrant played the role of the market leader.

First foreign grocery retailer enters the Finnish market—a stakeholder model

Abstract Finnish grocery retailing has until recently been dominated by four major domestic retail groups. The first totally foreign grocery retailer, hard discount chain Lidl, was the first entrant into the Finnish market. This paper describes and analyses the entry process of Lidl from the perspective of the stakeholder groups in the host market. The stakeholder model of foreign retailer entry is used as a framework in exploring the stages of the entry as well as the reactions, roles and motives of the relevant stakeholders. Secondary data was collected from articles published in newspapers and business magazines and minutes of the municipal board meetings. The three stakeholder attributes—power, legitimacy and urgency—characterize the reactions of the stakeholders.

Conflicting values of ethical consumption in diverse worlds – A cultural approach

This paper examines the plurality of ethical consumption and aims to illustrate how consumers cope with its complexity in the context of everyday food consumption. This study seeks to outline the tensions that consumers inevitably face when pursuing ethical choices and to shed light on the various ways in which they solve these tensions in the rhythms of everyday life. The research applies Boltanski and Thévenots theory of orders of worth as an interpretive framework. The research data has been collected from Finnish online discussion forums in which consumers debate various aspects of ethical food consumption. The analysis indicates that the participants in the discussions recognize various understandings of ethical consumption that may be accompanied by insecurities about the ‘right’ ones. However, the research suggests that consumers are able to solve fundamental tensions in ethical food consumption by carrying out different types of practices.

Credibility of a peer endorser and advertising effectiveness

Advertisers use various tactics to influence consumer purchases and create positive associations with their brands. The purpose of this study is to explore the formation of peer-endorser credibility and its influence on attitude formation. The role of product involvement in the formation of attitudes and endorser credibility is also examined.,A quantitative study was conducted among university students. Data were collected using an online questionnaire concerning three advertisements for which identical questionnaires were constructed; 364 responses were generated.,The authors show that the credibility of a peer endorser is constructed from trustworthiness, expertise, similarity and attractiveness dimensions that positively affect consumers’ attitude toward an advertisement and a brand. Product involvement affects advertising effectiveness indirectly through the endorser-credibility construct. Finally, the authors show that a consumer’s experience with an advertised product affects the perception of endorser credibility and the effectiveness of the advertisement.,The findings reveal new insights into the little studied area of peer-endorser effectiveness. The authors shed light on the construction of peer endorser credibility and the relative importance of specific credibility dimensions on the effectiveness of an advertisement. This study also provides information on the direct and indirect effects of consumers’ brand involvement on attitudes toward advertisements.

Banks’ unfairness and the vulnerability of low-income unbanked consumers

ABSTRACT This paper’s objective was to explore low-income unbanked consumers’ perceptions of bank fairness and the way these perceptions were linked to consumer experiences of vulnerability. Qualitative data were used to analyse low-income consumers’ perceptions about banks’ services and communications. The study finds that although consumers’ financial inclusion is partially hindered by their personal circumstances, the perceived unfair treatment by banks has an even more negative impact on their financial inclusion. Low-income unbanked individuals report banks avoiding them, discriminating against them and impeding their financial inclusion. Banks’ perceived unfairness towards low-income consumers leads those consumers to experience vulnerability in numerous ways. Finally, we provide public policy implications for low-income consumers’ well-being and financial inclusion and to assist them in mitigating their vulnerability.