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Description
Consumers search before making virtually any purchase. The notion that consumers engage in costly search is well-understood to have deep implications for market performance. However to date, no theoretical model allows for the observation that consumers often purchase more than a single product in an individual shopping occasion. Clothing, food,

Consumers search before making virtually any purchase. The notion that consumers engage in costly search is well-understood to have deep implications for market performance. However to date, no theoretical model allows for the observation that consumers often purchase more than a single product in an individual shopping occasion. Clothing, food, books, and music are but four important examples of goods that are purchased many items at a time. I develop a modeling approach that accounts for multi-purchase occasions in a structural way. My model shows that as preference for variety increases, so does the size of the consideration set. Search models that ignore preference for variety are, therefore, likely to under-predict the number of products searched. It is generally thought that lower search costs increase retail competition which pushes prices and assortments down. However, I show that there is an optimal number of products to offer depending on the intensity of consumer search costs. Consumers with high search costs prefer to shop at a store with a large assortment of goods and purchase multiple products, even if the prices that firm charges is higher than competing firms' prices. On the other hand, consumers with low search costs tend to purchase fewer goods and shop at the stores that have lower prices, as long as the store has a reasonable assortment offering. The implications for market performance are dramatic and pervasive. In particular, the misspecification of demand model in which search is important and/or multiple discreteness is observed will produce biased parameter estimates leading to erroneous managerial conclusions.
ContributorsAllender, William Jacob (Author) / Richards, Timothy J. (Thesis advisor) / Park, Sungho (Committee member) / Hamilton, Stephen (Committee member) / Arizona State University (Publisher)
Created2013
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Description
There have been multiple calls for research on consumers' responses to social issues, regulatory changes, and corporate behavior. Thus, this dissertation proposes and tests a conceptual framework of parents' responses to government regulations and corporate social responsibility (CSR) that address juvenile obesity. This research builds on Attribution Theory to examine

There have been multiple calls for research on consumers' responses to social issues, regulatory changes, and corporate behavior. Thus, this dissertation proposes and tests a conceptual framework of parents' responses to government regulations and corporate social responsibility (CSR) that address juvenile obesity. This research builds on Attribution Theory to examine the impact of government regulations and CSR on consumers' attitudes and their subsequent behavior. Three pilot studies and three main experiments were conducted; a between-subjects and randomized experimental design being used to capture the effects of regulations and corporate actions on product satisfaction, company evaluations, and behavioral intentions, while examining the mediating role of attributions of responsibility for a negative product outcome. This research has implications for policy makers and marketing practitioners and scholars. This is the first study to offer a new perspective, based on attributions of blame, to explain the mechanism that drives consumers' responses to government regulations. Considering numerous calls for government actions that address childhood obesity, it is important to understand how and why consumers respond to such regulations. The results illustrated that certain policies may have unintended consequences due to unexpected attributions of blame for unhealthy products. Only recently have researchers tried to address the psychological mechanism through which CSR has an impact on consumers' attitudes and behavior. To date, few studies have investigated attributions as a mediating variable in the transfer of CSR associations on consumer responses. Nonetheless, this is the first study that concentrates on attributions of responsibility, per se, to explain the impact of CSR on company evaluations. This dissertation extends previous research, where locus, stability, and controllability mediated the relationship between CSR and attributions of blame; the degree of blame being consequential to brand evaluations. The current results suggest that attributions of responsibility, per se, mediate the impact of CSR on company evaluations. Additionally, attributions of blame are measured as the degree to which consumers take personal responsibility for a negative product outcome. This highlights a new role of the CSR construct, as a moderator of consumers' self-serving bias, a fundamental psychological response that has been neglected in the marketing literature.
ContributorsDumitrescu, Claudia (Author) / Shaw Hughner, Renée (Thesis advisor) / Schmitz, Troy G. (Committee member) / Seperich, George (Committee member) / Shultz, Ii, Clifford J. (Committee member) / Arizona State University (Publisher)
Created2013
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Description
In this research, I focus on service conversations in professional services. For most Business-to-Business or Business-to-Consumer professional services, the service conversation is an important part of the service experience and is critical to solutions co-creation as well as customer satisfaction. In this research, I examine service conversation sequences at the

In this research, I focus on service conversations in professional services. For most Business-to-Business or Business-to-Consumer professional services, the service conversation is an important part of the service experience and is critical to solutions co-creation as well as customer satisfaction. In this research, I examine service conversation sequences at the micro-level and explore two important research questions: (1) how do I explain the dynamics of moment-by-moment Customer Participation in Service Conversations (CPSC)? and (2) how do the temporal and process dynamics of CPSC relate to customer satisfaction and solution compliance? From a dynamic context perspective, I develop a conceptual framework that explains the co-existence of stable and dynamic customer participation behavior in a service conversation. I conduct a series of lab experiments and an observation study of online conversations between 173 customers and 52 doctors to empirically validate the conceptual framework. This research demonstrates that at any given moment, customers manage their information sharing and interaction control based on their mental representation of the context complexity. Although the context-behavior relationships are stable, the service conversation context is dynamic. The service provider's behavior can constantly change and introduce new context cues. When the context changes so does the CPSC behavior. Finally, this research shows that to improve customer satisfaction, customer perceived service quality, and customer solution compliance, service providers should focus on helping customers reduce their perceived context complexity as early as possible, by providing information and educating customers. This research makes important theoretical and managerial contributions. Theoretically, it defines and develops measures of service context complexity in terms of its psychological features. It develops a conceptual framework to explain the temporal dynamics of CPSC on multi-dimensions. Empirically, this research adopts a phase-based sequence analysis approach and uses a negative bi-nominal model to examine the temporal process effect of the service conversation on service outcomes. Managerially, the research findings provide firms important and actionable guidelines to manage conversation-based professional services.
ContributorsWang, Si (Author) / Binter, Mary Jo (Thesis advisor) / Ostrom, Amy L. (Committee member) / Olsen, G. Douglas (Committee member) / Arizona State University (Publisher)
Created2013
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Description
Unrestricted Mexican exports of sugar into the U.S. is considered the most pressing issue facing the U.S. sugar industry. The goal of this dissertation is to analyze the trade of sugar between Mexico and the U.S. as well as analyze additional primary issues confronting the U.S. sugar industry. Chapters 1

Unrestricted Mexican exports of sugar into the U.S. is considered the most pressing issue facing the U.S. sugar industry. The goal of this dissertation is to analyze the trade of sugar between Mexico and the U.S. as well as analyze additional primary issues confronting the U.S. sugar industry. Chapters 1 and 2 provide an introduction to the U.S. sugar industry. Chapters 3 through 6 develop trade models which analyze sugar trade between Mexico and the U.S. The trade models estimate how NAFTA, USDA sugar forecast errors and Mexican ownership of twenty percent of the Mexican sugar industry each impact U.S. producer surplus and Mexican welfare. Results validate that U.S. producer surplus and in some instances Mexican welfare were decreased by full implementation of NAFTA. U.S. producer surplus and Mexican welfare were decreased due to USDA sugar production forecasting errors. U.S. producer surplus would be increased if the Mexican government did not own twenty percent of Mexican sugar production. Using an online choice experiment, Chapter 7 assesses U.S. consumers' preferences and willingness to pay (WTP) for imported and genetically modified (GM) labeled sugar and sugar in soft drinks. Results indicate that consumers prefer bags of sugar and soft drinks labeled as "Not GM". Furthermore, consumers prefer sugar from Canada and the U.S. over sugar from Mexico, Brazil and the Philippines. Evidence is also provided that participants are more likely to choose actual products in the choice set rather than the "none of these" options when controlling for hypothetical bias by using consequentiality techniques. A non-hypothetical experimental auction was used in Chapter 8 to determine consumers' WTP for soft drinks labeled with sweetener and calorie information and analyzed the role of taste panels in an experimental auction. Results indicate that sugar is consumers' most preferred sweetener and calorie labeling is ineffective at influencing consumers to choose healthier soft drinks. Including taste in an experimental auction caused significant reductions in consumers' WTP for all soft drinks. Chapter 9 concludes by summarizing the results of this dissertation and discussing the future challenges facing the U.S. sugar industry.
ContributorsLewis, Karen Elizabeth (Author) / Schmitz, Troy (Thesis advisor) / Grebitus, Carola (Committee member) / Manfredo, Mark (Committee member) / Ketcham, Andrea (Committee member) / Arizona State University (Publisher)
Created2014
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Description
Identifying factors associated with service infusion success has become an important issue in theory and practice, as manufacturers turn to services to advance performance. The goals of this dissertation are to identify the key factors associated with service infusion success and develop an integrative framework and associated research propositions to

Identifying factors associated with service infusion success has become an important issue in theory and practice, as manufacturers turn to services to advance performance. The goals of this dissertation are to identify the key factors associated with service infusion success and develop an integrative framework and associated research propositions to isolate the underlying determinants of successful hybrid solution strategies for business customers. This dissertation is comprised of two phases. The first phase taps into the experience and learning gained by executives from Fortune-100 manufacturing firms who are managing the transition from goods to hybrid offerings for their customers. A discovery-oriented, theory-in-use approach is adopted to glean insights concerning the factors that facilitate and hinder those service transition strategies. Twenty-eight interviews were conducted with key executives, transcripts were analyzed and key themes were identified with special attention directed to the particular capabilities that managers consider crucial for successful service-growth strategies. One such capability centers on the ability of a firm to successfully transfer newly-developed hybrid solutions from one customer engagement to another. Building on this foundation, phase two involves a case study that provides an in-depth examination of the hybrid offering replication process in a business-to-business firm attempting to replicate four strategic hybrid offerings. Emergent themes, based on 13 manager interviews, reveal factors that promote or impede successful hybrid offering transfer. Among the factors that underlie successful hybrid offering transfers across customer engagements are close customer relationships, a clear value proposition embraced by organizational numbers, an accurate forecast of market potential, and collaborative working relationships across units. The findings from the field studies provided a catalyst for a deeper examination of existing literature and formed the building blocks for the conceptual model and several key research propositions related to the successful transfer of hybrid offerings. The model isolates five sets of factors that influence the hybrid offering transfer process, including the characteristics of (1) the source project team, (2) the seeking project team, (3) the hybrid offering, (4) the relationship exchange, and (5) the customer. The conceptualization isolates the critical role that the customer assumes in service infusion strategy implementation.
ContributorsSalas, Jim (Author) / Walker, Beth (Thesis advisor) / Hutt, Michael D. (Thesis advisor) / Park, Sungho (Committee member) / Ulaga, Wolfgang (Committee member) / Arizona State University (Publisher)
Created2013
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Description
We apply a Bayesian network-based approach for determining the structure of consumers' brand concept maps, and we further extend this approach in order to provide a precise delineation of the set of cognitive variations of that brand concept map structure which can simultaneously coexist within the data. This methodology can

We apply a Bayesian network-based approach for determining the structure of consumers' brand concept maps, and we further extend this approach in order to provide a precise delineation of the set of cognitive variations of that brand concept map structure which can simultaneously coexist within the data. This methodology can operate with nonlinear as well as linear relationships between the variables, and utilizes simple Likert-style marketing survey data as input. In addition, the method can operate without any a priori hypothesized structures or relations among the brand associations in the model. The resulting brand concept map structures delineate directional (as opposed to simply correlational) relations among the brand associations, and differentiates between the predictive and the diagnostic directions within each link. Further, we determine a Bayesian network-based link strength measure, and apply it to a comparison of the strengths of the connections between different semantic categories of brand association descriptors, as well as between different strategically important drivers of brand differentiation. Finally, we apply a precise form of information propagation through the predictive and diagnostic links within the network in order to evaluate the effect of introducing new information to the brand concept network. This overall methodology operates via a factorization of the joint distribution of the brand association variables via conditional independence properties and an application of the causal Markov condition, and as such, it represents an alternative approach to correlation-based structural determination methods. By using conditional independence as a core structural construct, the methods utilized here are especially well- suited for determining and analyzing asymmetric or directional beliefs about brand or product attributes. This methodology builds on the pioneering Brand Concept Mapping approach of Roedder John et al. (2006). Similar to that approach, the Bayesian network-based method derives the specific link-by-link structure among a brand's associations, and also allows for a precise quantitative determination of the likely effects that manipulation of specific brand associations will have upon other strategically important associations within that brand image. In addition, the method's precise informational semantics and specific structural measures allow for a greater understanding of the structure of these brand associations.
ContributorsBrownstein, Steven Alan (Author) / Reingen, Peter (Thesis advisor) / Kumar, Ajith (Committee member) / Mokwa, Michael (Committee member) / Arizona State University (Publisher)
Created2013
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Description
Branding and brand management have been top management priorities in the hotel industry. Some researchers have concluded that strong branding would be an efficient way for hotels and hotel chains to differentiate themselves from each other. Recent studies have focused on the establishment of a brand equity model and the

Branding and brand management have been top management priorities in the hotel industry. Some researchers have concluded that strong branding would be an efficient way for hotels and hotel chains to differentiate themselves from each other. Recent studies have focused on the establishment of a brand equity model and the relevant causal relationships of the model. Most of these studies have used types of desirability scales examining the importance of individual factors in measuring brand equity. However, they ignore the trade-offs that affect and characterize choice. Particularly, the personal decision process implied by the hierarchical brand equity model is absent. This study proposed two alternative measures of brand equity, analytic hierarchy process (AHP) and conjoint analysis (CA), to address these limitations. The AHP and the CA were compared using several validity measures to aid in selecting efficient methods. This study examined the validity of AHP and CA under two data collection methods applied to hotel branding: paper-based survey and online survey. Result showed that the AHP data collection methods were easier, as well as with respect to saving time and costs. Results also indicated that the AHP is equivalent to the CA with respect to predictive accuracy. Practical differences for hotel branding in attribute preferences were clearly observed between the AHP and the CA. The AHP results were consistent with previous studies by awarding high importance to perceived quality and brand loyalty and lower importance to brand awareness and brand image. Managerial implications were provided for results. In terms of practicality in data collection, the study results revealed that the data gathered online leads to a slightly lower internal and predictive validity. A limitation of this study was that the two methods were not perfectly comparable. Nevertheless, the validity of both AHP and CA seems satisfactory for both methods. The study results also offer useful perspectives to consider when choosing between the two methods, as well as between AHP and CA.
ContributorsLee, Seung-Hyun (Author) / Tyrrell, Timothy (Thesis advisor) / Uysal, Muzaffer (Committee member) / Andereck, Kathleen (Committee member) / Nyaupane, Gyan (Committee member) / Arizona State University (Publisher)
Created2014
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Description
It is well understood that decisions made under uncertainty differ from those made without risk in important and significant ways. Yet, there is very little research into how uncertainty manifests itself in the most ubiquitous of decision-making environments: Consumers' day-to-day decisions over where to shop, and what to buy for

It is well understood that decisions made under uncertainty differ from those made without risk in important and significant ways. Yet, there is very little research into how uncertainty manifests itself in the most ubiquitous of decision-making environments: Consumers' day-to-day decisions over where to shop, and what to buy for their daily grocery needs. Facing a choice between stores that either offer relatively stable "everyday low prices" (EDLP) or variable prices that reflect aggressive promotion strategies (HILO), consumers have to choose stores under price-uncertainty. I find that consumers' attitudes toward risk are critically important in determining store-choice, and that heterogeneity in risk attitudes explains the co-existence of EDLP and HILO stores - an equilibrium that was previously explained in somewhat unsatisfying ways. After choosing a store, consumers face another source of risk. While knowing the quality or taste of established brands, consumers have very little information about new products. Consequently, consumers tend to choose smaller package sizes for new products, which limits their exposure to the risk that the product does not meet their prior expectations. While the observation that consumers purchase small amounts of new products is not new, I show how this practice is fully consistent with optimal purchase decision-making by utility-maximizing consumers. I then use this insight to explain how manufacturers of consumer packaged goods (CPGs) respond to higher production costs. Because consumers base their purchase decisions in part on package size, manufacturers can use package size as a competitive tool in order to raise margins in the face of higher production costs. While others have argued that manufacturers reduce package sizes as a means of raising unit-prices (prices per unit of volume) in a hidden way, I show that the more important effect is a competitive one: Changes in package size can soften price competition, so manufacturers need not rely on fooling consumers in order to pass-through cost increases through changes in package size. The broader implications of consumer behavior under risk are dramatic. First, risk perceptions affect consumers' store choice and product choice patterns in ways that can be exploited by both retailers and manufacturers. Second, strategic considerations prevent manufacturers from manipulating package size in ways that seem designed to trick consumers. Third, many services are also offered as packages, and also involve uncertainty, so the effects identified here are likely to be pervasive throughout the consumer economy.
ContributorsYonezawa, Koichi (Author) / Richards, Timothy J. (Thesis advisor) / Grebitus, Carola (Committee member) / Park, Sungho (Committee member) / Arizona State University (Publisher)
Created2014
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Description
Private labels command a growing share of food retailers' shelf space. In this dissertation, I explain this phenomenon as resulting from "umbrella branding," or the ability of a single brand to reach across categories. Conceptually, I define umbrella branding as a behavioral attribute that describes a shopper's tendency

Private labels command a growing share of food retailers' shelf space. In this dissertation, I explain this phenomenon as resulting from "umbrella branding," or the ability of a single brand to reach across categories. Conceptually, I define umbrella branding as a behavioral attribute that describes a shopper's tendency to ascribe a performance bond to a brand, or to associate certain performance characteristics to a private label brand, across multiple categories. In the second chapter, I describe the performance bond theory in detail, and then test this theory using scanner data in the chapter that follows. Because secondary data has limitations for testing behavioral theories, however, I test the performance bond theory of umbrella branding using a laboratory experiment in the fourth chapter. In this chapter, I find that households tend to transfer their perception of private label performance across categories, or that a manifestation of umbrella branding behavior can indeed explain private labels' success. In the fifth chapter, I extend this theory to compare umbrella branding in international markets, and find that performance transference takes its roots in consumers' cultural backgrounds. Taken together, my results suggest that umbrella branding is an important behavioral mechanism, and one that can be further exploited by retailers across any consumer good category with strong credence attributes.
ContributorsTheron, Sophie (Author) / Richards, Timothy J. (Thesis advisor) / Grebitus, Carola (Committee member) / Hughner, Renee (Committee member) / Arizona State University (Publisher)
Created2014
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Description
Destination image has been explored by studying various aspects of the process of forming a perception about an area and choosing to visit or not. This study uses a variety of theories from previous research which has focused on subsets of factors which influence the overall process to create a

Destination image has been explored by studying various aspects of the process of forming a perception about an area and choosing to visit or not. This study uses a variety of theories from previous research which has focused on subsets of factors which influence the overall process to create a model to organize the perception formation and decision making progress into one continuous and interrelated progression. Online questionnaires using Likert scale statements and questions were distributed to participants through Facebook in order to measure and test the model. A total of 266 questionnaires were completed and analyzed using t test, ANOVA, regression, factor analysis, and cluster analysis. The original model from the beginning of the study transformed with the removal of some variables and the alteration of others. The factors that were shown to influence perception of the destination were tourist type and knowledge of the country. Tourists who were more likely to seek new environments and had a higher level of knowledge of the country used in the marketing video had a better perception of the destination before and after the video. Obstacles for deciding to visit the destination were found to be long distances traveling and substitution of alternative destinations. The results show that marketing videos do create a positive change in the perception of the destination, but this alone is not likely enough to influence the decision to visit the destination. Marketing agencies should consider more ways of informing consumers of the destination in addition to commercials so that overall knowledge of the area can be improved. In addition, marketing agencies should target consumers that are interested in visiting new environments by using travel magazine subscriptions, international airline agencies and hotels, and social media groups.
ContributorsHugo, Nichole (Author) / Nyaupane, Gyan (Thesis advisor) / Andereck, Kathleen (Committee member) / Buzinde, Christine (Committee member) / Harrill, Rich (Committee member) / Arizona State University (Publisher)
Created2014