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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
This study investigates how well prominent behavioral theories from social psychology explain green purchasing behavior (GPB). I assess three prominent theories in terms of their suitability for GPB research, their attractiveness to GPB empiricists, and the strength of their empirical evidence when applied to GPB. First, a qualitative assessment of

This study investigates how well prominent behavioral theories from social psychology explain green purchasing behavior (GPB). I assess three prominent theories in terms of their suitability for GPB research, their attractiveness to GPB empiricists, and the strength of their empirical evidence when applied to GPB. First, a qualitative assessment of the Theory of Planned Behavior (TPB), Norm Activation Theory (NAT), and Value-Belief-Norm Theory (VBN) is conducted to evaluate a) how well the phenomenon and concepts in each theory match the characteristics of pro-environmental behavior and b) how well the assumptions made in each theory match common assumptions made in purchasing theory. Second, a quantitative assessment of these three theories is conducted in which r2 values and methodological parameters (e.g., sample size) are collected from a sample of 21 empirical studies on GPB to evaluate the accuracy and generalize-ability of empirical evidence. In the qualitative assessment, the results show each theory has its advantages and disadvantages. The results also provide a theoretically-grounded roadmap for modifying each theory to be more suitable for GPB research. In the quantitative assessment, the TPB outperforms the other two theories in every aspect taken into consideration. It proves to 1) create the most accurate models 2) be supported by the most generalize-able empirical evidence and 3) be the most attractive theory to empiricists. Although the TPB establishes itself as the best foundational theory for an empiricist to start from, it's clear that a more comprehensive model is needed to achieve consistent results and improve our understanding of GPB. NAT and the Theory of Interpersonal Behavior (TIB) offer pathways to extend the TPB. The TIB seems particularly apt for this endeavor, while VBN does not appear to have much to offer. Overall, the TPB has already proven to hold a relatively high predictive value. But with the state of ecosystem services continuing to decline on a global scale, it's important for models of GPB to become more accurate and reliable. Better models have the capacity to help marketing professionals, product developers, and policy makers develop strategies for encouraging consumers to buy green products.
ContributorsRedd, Thomas Christopher (Author) / Dooley, Kevin (Thesis advisor) / Basile, George (Committee member) / Darnall, Nicole (Committee member) / Arizona State University (Publisher)
Created2012
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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
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
When consumers fail in their environmental, dieting, or budgeting goals, they may engage in a consumer confession about their goal-inconsistent behavior. This dissertation seeks to understand how confessions about consumer goal transgressions affect subsequent consumer motivation and behaviors. Results from a series of five experiments reveal that after reflecting about

When consumers fail in their environmental, dieting, or budgeting goals, they may engage in a consumer confession about their goal-inconsistent behavior. This dissertation seeks to understand how confessions about consumer goal transgressions affect subsequent consumer motivation and behaviors. Results from a series of five experiments reveal that after reflecting about a past transgression, Catholics who confess (vs. do not confess) about the focal transgression are more motivated to engage in subsequent goal-consistent consumer behaviors. However, results reveal no such effects for Non-Catholics; Non-Catholics are equally motivated to engage in goal-consistent consumer behaviors regardless of whether or not they confessed. Catholics and Non-Catholics differ on the extent to which they believe that acts of penance are required to make amends and achieve forgiveness after confession. For Catholics, confessing motivates restorative, penance-like behaviors even in the consumer domain. Thus, when Catholics achieve forgiveness through the act of confession itself (vs. a traditional confession requiring penance), they reduce their need to engage in restorative consumer behaviors. Importantly, results find that confession (vs. reflecting only) does not provide a general self-regulatory boost to all participants, but rather that confession is motivating only for Catholics due to their beliefs about penance. Together, results suggest that for consumers with strong penance beliefs, confession can be an effective strategy for getting back on track with their consumption goals.
ContributorsMathras, Daniele (Author) / Mandel, Naomi (Thesis advisor) / Cohen, Adam B. (Thesis advisor) / Morales, Andrea C (Committee member) / Samper, Adriana (Committee member) / Arizona State University (Publisher)
Created2015
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Description
Mobile applications (Apps) markets with App stores have introduced a new approach to define and sell software applications with access to a large body of heterogeneous consumer population. Several distinctive features of mobile App store markets including – (a) highly heterogeneous consumer preferences and values, (b) high consumer cognitive burden

Mobile applications (Apps) markets with App stores have introduced a new approach to define and sell software applications with access to a large body of heterogeneous consumer population. Several distinctive features of mobile App store markets including – (a) highly heterogeneous consumer preferences and values, (b) high consumer cognitive burden of searching a large selection of similar Apps, and (c) continuously updateable product features and price – present a unique opportunity for IS researchers to investigate theoretically motivated research questions in this area. The aim of this dissertation research is to investigate the key determinants of mobile Apps success in App store markets. The dissertation is organized into three distinct and related studies. First, using the key tenets of product portfolio management theory and theory of economies of scope, this study empirically investigates how sellers’ App portfolio strategies are associated with sales performance over time. Second, the sale performance impacts of App product cues, generated from App product descriptions and offered from market formats, are examined using the theories of market signaling and cue utilization. Third, the role of App updates in stimulating consumer demands in the presence of strong ranking effects is appraised. The findings of this dissertation work highlight the impacts of sellers’ App assortment, strategic product description formulation, and long-term App management with price/feature updates on success in App market. The dissertation studies make key contributions to the IS literature by highlighting three key managerially and theoretically important findings related to mobile Apps: (1) diversification across selling categories is a key driver of high survival probability in the top charts, (2) product cues strategically presented in the descriptions have complementary relationships with market cues in influencing App sales, and (3) continuous quality improvements have long-term effects on App success in the presence of strong ranking effects.
ContributorsLee, Gun Woong (Author) / Santanam, Raghu (Thesis advisor) / Gu, Bin (Committee member) / Park, Sungho (Committee member) / Arizona State University (Publisher)
Created2015
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Description
When consumers make experiential purchases, they often have to decide between experiences that contain many or few features. Contrary to prior research demonstrating that consumers prefer feature-rich products before consumption but feature-poor products after consumption, the author reveals a reversal of this effect for experiences. Specifically, the author hypothesizes and

When consumers make experiential purchases, they often have to decide between experiences that contain many or few features. Contrary to prior research demonstrating that consumers prefer feature-rich products before consumption but feature-poor products after consumption, the author reveals a reversal of this effect for experiences. Specifically, the author hypothesizes and finds that consumers prefer feature-poor experiences before consumption (a phenomenon denoted as `feature apprehension') but prefer feature-rich experiences after consumption. This feature apprehension occurs before consumption because consumers are concerned with the uncertainty associated with attaining a satisfying outcome from the experience. Manipulating the temporal distance with which consumers view the experience can attenuate this effect. Additionally, locus of control and social signaling moderate consumers' post-consumption preference for feature-rich experiences. The author proposes several recommendations for consumers and providers of experiences.
ContributorsMiller, Chadwick Justin (Author) / Samper, Adriana (Thesis advisor) / Mandel, Naomi (Thesis advisor) / Sinha, Rajiv K (Committee member) / Arizona State University (Publisher)
Created2015
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Description
This research examines the effects of using similar vs. dissimilar models in health messages on message compliance. I find that level of self-awareness moderates the effect of model similarity on message compliance. Across three studies, I demonstrate that when self-awareness is high, a health message that contains a similar model

This research examines the effects of using similar vs. dissimilar models in health messages on message compliance. I find that level of self-awareness moderates the effect of model similarity on message compliance. Across three studies, I demonstrate that when self-awareness is high, a health message that contains a similar model leads to higher compliance than the same message containing a dissimilar model. On the other hand, when self-awareness is low, a health message that contains a similar model leads to lower message compliance than the same message containing a dissimilar model. Additionally, I demonstrate that the increased compliance observed when self-awareness is high and a similar model is used is associated with self-enhancing behavior and increased engagement with the ad, while the decreased compliance observed when self-awareness is low and a similar model is used is associated with disregarding the ad.
ContributorsLoveland, Katherine (Author) / Mandel, Naomi (Thesis advisor) / Miller, Elizabeth G. (Committee member) / Morales, Andrea C. (Committee member) / Smeesters, Dirk (Committee member) / Arizona State University (Publisher)
Created2011
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Description
This dissertation offers three essays that investigate consumers’ health-related food choices and behaviors from three different, yet complementary, angles. The first essay uses an eye-tracking experiment to examine consumers’ visual attention to the Nutrition Facts Panels for healthy and unhealthy products. In this essay, I focus on how involvement and

This dissertation offers three essays that investigate consumers’ health-related food choices and behaviors from three different, yet complementary, angles. The first essay uses an eye-tracking experiment to examine consumers’ visual attention to the Nutrition Facts Panels for healthy and unhealthy products. In this essay, I focus on how involvement and familiarity affect consumers’ attention toward the Nutrition Facts panel and how these two psychological factors interact with new label format changes in attracting consumers’ attention. In the second essay, I demonstrate using individual-level scanner data that nutritional attributes interact with marketing mix elements to affect consumers’ nutrition intake profiles and their intra-category substitution patterns. My findings suggest that marketing-mix sensitivities are correlated with consumers’ preferences for nutrient attributes in ways that depend on the “healthiness” of the nutrient. For instance, featuring promotes is positively correlated with “healthy” nutritional characteristics such as high-protein, low-fat, or low-carbohydrates, whereas promotion and display are positively correlated with preferences for “unhealthy” characteristics such as high-fat, or high-carbohydrates. I use model simulations to show that some marketing-mix elements are able to induce consumers to purchase items with higher maximum-content levels than others. The fourth chapter shows that dieters are not all the same. I develop and validate a new scale that measures lay theories about abstinence vs. moderation. My findings from a series of experiments indicate that dieters’ recovery from recalled vs. actual indulgences depend on whether they favor abstinence or moderation. However, compensatory coping strategies provide paths for people with both lay theories to recover after an indulgence, in their own ways. The three essays provide insights into individual differences that determine approaches of purchase behaviors, and consumption patterns, and life style that people choose, and these insights have potential policy implications to aid in designing the food-related interventions and policies to improve the healthiness of consumers’ consumption profiles and more general food well-being.
ContributorsXie, Yi (Author) / Richards, Timothy (Thesis advisor) / Mandel, Naomi (Committee member) / Grebitus, Carola (Committee member) / Arizona State University (Publisher)
Created2018
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Description
This dissertation uncovers the negative aspects of aesthetics by examining when and how enhanced product and payment aesthetics can backfire and lead to unfavorable consumer responses. The first essay examines the downstream effects of nondurable product aesthetics on usage behavior and consumption enjoyment. Across a series of field and lab

This dissertation uncovers the negative aspects of aesthetics by examining when and how enhanced product and payment aesthetics can backfire and lead to unfavorable consumer responses. The first essay examines the downstream effects of nondurable product aesthetics on usage behavior and consumption enjoyment. Across a series of field and lab experiments, I document an inhibiting effect of aesthetics on consumption. I find that highly aesthetic products elicit greater inferences of effort in their creation, and that people have an intrinsic appreciation for such effort. Because the consumption process indirectly destroys the effort originally invested to make the product beautiful, people reduce consumption of such products because usage would involve destroying something they naturally appreciate. Further, I show that in cases where individuals do consume a beautiful product, they exhibit lower consumption enjoyment. These negative post-consumption outcomes are driven in parallel by concerns over having actually destroyed the effort that made the product beautiful as well as the decrements in beauty that become visible when aesthetic products are made less attractive through consumption. The second essay investigates how the aesthetics and design of a payment (e.g., beautiful gift card packaging) can influence the purchase experience. Three field and lab experiments reveal the negative impact of beautified payments on spending and purchase satisfaction, particularly in situations where usage involves compromising its aesthetic appeal. Specifically, when consumers must damage a payment’s appearance before using it (e.g., ripping gift card packaging), they are less likely to use that payment, and experience lower purchase satisfaction when they do, an effect driven by the pain of payment. In doing so, I identify aesthetics as a novel antecedent to the pain of payment that carries important consequences for spending behavior, purchase satisfaction, and the overall customer experience. Implications for theory and practice are discussed.
ContributorsWu, Freeman (Author) / Morales, Andrea C. (Thesis advisor) / Samper, Adriana (Thesis advisor) / Dahl, Darren W. (Committee member) / Fitzsimons, Gavan J. (Committee member) / Mandel, Naomi (Committee member) / Arizona State University (Publisher)
Created2018