Journal of Marketing Development and Competitiveness

Brand Diversity and Brand Similarity Impacts on Brand Evaluations

Joseph W. Chang — Mon, 10 Jun 2024 00:00:00 -0400

This research examined the joint impact of brand diversity and brand similarity upon brand evaluations. The results revealed that low-diversity brands are favored over high-diversity brands, whereas high-similarity brands are favored over low-similarity brands. High-diversity narrow brands are favored over high-diversity broad brands, whereas low-diversity narrow and broad brands are favored identically. Additionally, low-diversity narrow brands are favored over high-diversity narrow brands, whereas low-diversity broad brands are favored over high-diversity broad brands. The findings of extant research that narrow brands are preferred over broad brands are true only when the quality diversities of both brands are high.

The Role of Generative AI in Shaping Millennials and Gen Z’s Orientation Toward Luxury Products

Emad AbouElgheit — Mon, 10 Jun 2024 00:00:00 -0400

This study investigates the impact of Artificial Intelligence (AI)-generated promotional content and status motivations on the perception of luxury brands among Millennials and Generation Z. The author adopts a mixed-method research approach that integrates a quantitative survey and structural equation modeling analysis with qualitative Natural Language Processing (NLP). The findings reveal that generative AI promotional content impacts millennials and Gen Z’s purchase intention due to its perceived entertainment, transparency, and usefulness. Status motivations had a stronger impact on purchase intention, and demographic characteristics were significantly different in their results. The study is the first to examine the human characteristics of perceived expertise, transparency, and entertainment in an AI context in light of status consumption motivation. As AI is expected to have more human-like characteristics and behavior, testing theories centered on human influence in an AI context is crucial for marketing theory and practice.

The Influence of COVID-19 on Online Sales in the Wine Sector: A Portuguese Case Study

Cláudia Ribau, Carolina Oliveira Santos, Joana Figueiredo — Mon, 10 Jun 2024 00:00:00 -0400

COVID-19 reinforced the adoption of an online sales strategy, with e-commerce proven to be an asset in achieving positive results. Based on this premise, a case study was developed in the wine sector, to identify a strategic model for the implementation and management of a virtual store. The simultaneous presence of businesses in the largest number of distribution channels is the differentiating factor in the wine sector, as it currently has an extremely attractive market dynamics for its stakeholders. A qualitative methodological case study was developed analyzing the wine sector e-commerce in the context of a theoretical model. The conclusions highlight an increase of online sales in the wine sector in Portugal, and consequently, the importance of creating a virtual store. The growth of the B2C online sales channel indicates there is ‘divergence’ from the traditional offline B2B sales channel. There is resistance by the B2B sales model to adopt online B2C, but despite this, the wine sector favoring e-commerce has seen a boost in sales profits. Pandemic restrictions reduced consumer physical contact which is a limitation of this single case study.

The Competitive Challenge in Post-Internet Advertising: Appraising the Functional Divide Between Agencies and the Newcomers

W. Wossen Kassaye — Tue, 18 Jun 2024 00:00:00 -0400

Although they have made modest gains in revenues and employment, ad agencies face challenges in utilizing different media platforms and the latest technologies. Advertisers’ negative perception of ad agencies as not having the expertise needed for post-Internet success was the first major threat agencies faced, resulting in increased competition from newcomers. Advertisers’ adoption of algorithms generally, particularly AI-related algorithms, poses the latest threat to agencies. Based on a conceptual framework, the article analyzes the threat factors agencies face and proposes some strategies to contain the newcomers’ encroachment and new technologies such as AI.

Using Game Theory and Price Elasticity in Tourism in the U.S.

Xuan Tran, Arimsay Rodriguez — Tue, 18 Jun 2024 00:00:00 -0400

This research aims to employ game theory along with price and income elasticities of demand to reveal hidden strategies for maximizing revenue among competitors in the hotel market, focusing on New York and San Francisco over 20 years. Results suggest that demand for hotels in New York is characterized by luxury-driven income but responsive pricing, while San Francisco exhibits lower income levels but demonstrates Giffen elasticity. Both markets present opportunities for maximizing revenue per available room through a mutually beneficial strategy whereby average daily rates increase in New York and decrease in San Francisco.

YouTube Influencers Fostering Audience Engagement Through Parasocial Relationships

Elaina Aquino, Kiseol Yang, Lynn Brandon — Tue, 18 Jun 2024 00:00:00 -0400

As the growing popularity of lifestyle YouTube influencers risks the possibility of over-saturation of sponsored content on YouTube, brands should determine the effectiveness of influencers and identify the characteristics of lifestyle YouTube influencers to make sponsored content successful. Drawing upon parasocial relationship theory, this study incorporates match-up hypothesis and source credibility theories to determine characteristics of lifestyle YouTube influencers and their content that increase their audience engagement and makes social media influencer marketing effective. Using the content analysis of lifestyle YouTube influencers, this study reveals that micro-influencers have a higher engagement with their audience through parasocial relationships than mega and macro-influencers.

How an In-Store Self-Service Technology Impacts Customer Shopping Experience, Satisfaction and WOM Intentions

Tue, 18 Jun 2024 00:00:00 -0400

Retailers are increasingly using self-service technologies (SSTs) in-store. However, their impacts are not well known. The objective of this study is to establish whether the use of SST and its key characteristics (perceived ease of use (PEOU) and perceived usefulness (PU)) has a significant effect on the customer experience (i.e., cognitive, affective, sensory, behavioral and social dimensions). The effect of these dimensions on satisfaction and positive word-of-mouth (WOM) intent were also investigated. We conducted an in-store experiment in which half of the 102 participants chose sports shoes using an interactive wall while a salesperson exclusively assisted the other half. The results demonstrate that the cognitive/positive affective and sensory dimensions of the experience are positively influenced by use of SST while the social dimension is diminished. Further, when SST was used, the negative affect increased. For customers who used the SST, PEOU and PU contribute to enhance all dimensions of the experience, except for PEOU which lowers the social experience. Customer experience positively impact consumer’s satisfaction and WOM intent.

Strength of the Sweep: Exploring the Cleaning Culture of Black Women Consumers

Kimberly K. Powell, Melanie Powell Rey, Asia Alexander — Tue, 18 Jun 2024 00:00:00 -0400

This qualitative research study delves into the rich cleaning culture among Black women consumers, aiming to uncover the underlying motivations, beliefs, and practices that shape their household cleaning behaviors. Through in-depth interviews, the research explores how cultural heritage, community expectations, and personal empowerment inform Black women’s cleaning rituals and product preferences. The study employs a grounded theory approach to analyze participants’ narratives, revealing a complex interplay between societal norms, familial traditions, and individual agency. The findings highlight the role of cleaning as a form of self-expression, a means to preserve cultural legacy, and a powerful avenue for fostering a sense of control and pride within domestic spaces. By illuminating the unique perspectives and experiences of Black women in the realm of domestic cleanliness, this study contributes to a more nuanced understanding of consumer behavior. It offers valuable insights for brands aiming to engage with this community respectfully and authentically.

Historical and Theoretical Perspectives of Panic Buying: Consumer Behavior at Its Worst?

Mohan Menon — Tue, 18 Jun 2024 00:00:00 -0400

Panic Buying (PB) is an old phenomenon but has been in the news mostly because of the pandemic but in 2021 for other reasons. While there are supply-side reasons that make it difficult for marketers to sell, the demand-side reasons cause psychological difficulties in consumers. While there have been a few attempts to smooth over these situations, it would seem that every PB situation is different. This limits the applicability of lessons learned from one instance to another in the future. The paper attempts to provide (1) a historical perspective for PB, layout the nature of PB and (2) provide an overview of the various theoretical perspectives that can utilized to potentially to understand the consumer psychology behind PB. This is followed by a brief section on the implications of PB and discussion.