• Asia Marketing Journal
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• v.14 no.2
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• pp.39-63
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• 2012

Previous studies of reward programs have generally focused on designing the best programs for consumers and suggested that consumers' perception of the value of reward programs can vary according to the type of reward program (e.g., hedonic vs. utilitarian and direct vs. indirect) and its timing (e.g., immediate vs. delayed). These studies have typically assumed that consumers' preference for reward programs has a positive effect on brand loyalty. However, Dowling and Uncles (1997) pointed out that this preference does not necessarily foster brand loyalty. In this regard, the present study verifies this assumption by examining the effects of consumers' perception of the value of reward programs on their brand loyalty. Although reward programs are widely used by online shopping malls, most studies have examined the conditions under which consumers are most likely to value loyalty programs in the context of offline shopping. In the context of online shopping, however, consumers' preferences may have little effect on their brand loyalty because they have more opportunities for comparing diverse reward programs offered by many online shopping malls. That is, in online shopping, finding attractive reward programs may require little effort on the part of consumers, who are likely to switch to other online shopping malls. Accordingly, this study empirically examines whether consumers' perception of the value of reward programs influences their brand loyalty in the context of online shopping. Meanwhile, consumers seek utilitarian and/or hedonic value from their online shopping activity(Jones et al., 2006; Barbin et al., 1994). They visit online shopping malls to buy something necessary (utilitarian value) and/or enjoy the process of shopping itself (hedonic value). In this sense, reward programs may reinforce utilitarian as well as hedonic value, and their effect may vary according to the type of reward (utilitarian vs. hedonic). According to Chaudhuri and Holbrook (2001), consumers' perception of the value of a brand can influence their brand loyalty through brand trust and affect. Utilitarian value influences brand loyalty through brand trust, whereas hedonic value influences it through brand affect. This indicates that the effect of this perception on brand trust or affect may be moderated by the type of reward program. Specifically, this perception may have a greater effect on brand trust for utilitarian reward programs than for hedonic ones, whereas the opposite may be true for brand affect. Given the above discussion, the present study is conducted with three objectives in order to provide practical implications for online shopping malls to strategically use reward program for establishing profitable relationship with customers. First, the present study examines whether reward programs can be an effective marketing tool for increasing brand loyalty in the context of online shopping. Second, it investigates the paths through which consumers' perception of the value of reward programs influences their brand loyalty. Third, it analyzes the effects of this perception on brand trust and affect by considering the type of reward program as a moderator. This study suggests and empirically analyzes a new research model for examining how consumers' perception of the value of reward programs influences their brand loyalty in the context of online shopping. The model postulates the following 10 hypotheses about the structural relationships between five constructs: (H1) Consumers' perception of the value of reward programs has a positive effect on their program loyalty; (H2) Program loyalty has a positive effect on brand loyalty; (H3) Consumers' perception of the value of reward programs has a positive effect on their brand trust; (H4) Consumers' perception of the value of reward programs has a positive effect on their brand affect; (H5) Brand trust has a positive effect on program loyalty; (H6) Brand affect has a positive effect on program loyalty; (H7) Brand trust has a positive effect on brand loyalty; (H8) Brand affect has a positive effect on brand loyalty; (H9) Consumers' perception of the value of reward programs is more likely to influence their brand trust for utilitarian reward programs than for hedonic ones; and (H10) Consumers' perception of the value of reward programs is more likely to influence their brand affect for hedonic reward programs than for utilitarian ones. To test the hypotheses, we considered a sample of 220 undergraduate students in Korea (male:113). We randomly assigned these participants to one of two groups based on the type of reward program (utilitarian: transportation card, hedonic: movie ticket). We instructed the participants to imagine that they were offered these reward programs while visiting an online shopping mall. We then asked them to answer some questions about their perception of the value of the reward programs, program loyalty, brand loyalty, brand trust, and brand affect, in that order. We also asked some questions about their demographic backgrounds and then debriefed them. We employed the structural equation modeling (SEM) method with AMOS 18.0. The results provide support for some hypotheses (H1, H3, H4, H7, H8, and H9) while providing no support for others (H2, H5, H6, H10) (see Figure 1). Noteworthy is that the path proposed by previous studies, "value perception → program loyalty → brand loyalty," was not significant in the context of online shopping, whereas this study's proposed path, "value perception → brand trust/brand affect → brand loyalty," was significant. In addition, the results indicate that the type of reward program moderated the relationship between consumers' value perception and brand trust but not the relationship between their value perception and brand affect. These results have some important implications. First, this study is one of the first to examine how consumers' perception of the value of reward programs influences their brand loyalty in the context of online shopping. In particular, the results indicate that the proposed path, "value perception → brand trust/brand affect → brand loyalty," can better explain the effects of reward programs on brand loyalty than existing paths. Furthermore, these results suggest that online shopping malls should place greater emphasis on the type of reward program when devising reward programs. To foster brand loyalty, they should reinforce the type of shopping value that consumers emphasize by providing them with appropriate reward programs. If consumers prefer utilitarian value to hedonic value, then online shopping malls should offer utilitarian reward programs and vice versa.

• The Korean Journal of Franchise Management
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• v.11 no.2
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• pp.17-22
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• 2020

Purpose: As consumers have difficulty in brand choice due to excessive information, using brand popularity as an advertising cue (e.g., Sales No. 1, Hit Product) has been getting more attention as an effective curation strategy for decreasing consumers' cognitive efforts. Accordingly, recent studies empirically demonstrate that consumers tend to prefer and choose a brand with a popularity cue and offer a useful information regarding how to use a popularity cue in marketing communication. However, extant research has mainly focused on investigating the impact of "brand popularity in a domestic market" on consumer behaviors. Thus, little is known about the effect of "brand popularity in a foreign market" on local consumers' decision-making process. Given that domestic consumers tend to purchase imported products from overseas countries, it can be meaningful information for global companies. Therefore, this research derives and tests the five hypotheses to examine how local consumers respond to brand popularity in a foreign market as an advertising cue. Specifically, it tests the three hypotheses regarding the direct and indirect effects of brand popularity in a foreign market on risk perception and purchase intention. Then, it tests two additional hypotheses about moderating effects of psychic distance on the relationship between brand popularity and risk perception as well as on the relationship between brand popularity and purchase intention. Seventy participants are exposed to an advertisement for an Indian cosmetic brand using a popularity cue in Indian market and answer the questions about brand evaluation. For data analysis, regression analysis is employed. The findings of this research show that perceived brand popularity lowers local consumers' perceived risk with a foreign brand. However, perceived brand popularity does not have a direct impact on purchase intention while it has an indirect effect through perceived risk. Meanwhile, psychic distance moderates the effect of perceived brand popularity on perceived risk level, but it has no impact on the relationship between brand popularity and purchase intention. This research is one of the first studies that demonstrate the positive impact of brand popularity in a foreign market on a local consumer's purchase decision, and it shows the effect can be moderated by psychic distance.

• The Journal of Industrial Distribution & Business
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• v.10 no.3
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• pp.25-33
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• 2019

Purpose - With the economic development in China, the lifestyle of Chinese customers has changed dramatically. Chinese customers are more likely to have coffee in a shop with the ability to make them happy than those with high quality coffee in a nice physical environment. Happiness becomes a critical driver of customers' intention to purchase a cup of coffee in a specific coffee shop again and again. As a result, happiness becomes an important factor for managers to make strategies for attracting customers. Although managers and scholars pay more attention to emphasize the importance of happiness in customers' consumption, little research has been conducted to investigate the relationship between happiness and coffee shop's continuous usage intention in the Chinese coffee industry. Research design, data, and methodology - A research model is made to explain the impact of happiness on customer's behavior. To understand the influence of happiness better, we consider two dimensions of happiness which are subjective well-being and psychological well-being. In order to confirm the relationships of the variables in the research model, the online survey is constructed in China. Customers who have experienced the services in a coffee shop are asked to do the questionnaire. With 453 reliable questionnaires, structural equation modeling is used to analyze the causal relationships of the coffee quality, physical environment, subjective well-being, psychological well-being, and continuous usage intention. Results - Results indicate that coffee quality and physical environment are not the direct factors that influence customers' continuous usage intention. However, good coffee quality and physical environment are the significant predictors of Chinese customers' happiness associated with subjective well-being and psychological well-being, which in turn affects customers' continuous usage intention. Conclusions - In this study, it is proposed that coffee quality and physical environment may be the key factors influencing customers' happiness. Happiness, including subjective well-being and psychological well-being matters in decision making process. More importantly, happiness increases the continuous usage intention when the coffee shop can serve customers with higher quality coffee at a good atmospheric place. Managers should consider happiness as an important factor in making marketing strategies to compete in this industry.

• Journal of Distribution Science
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• v.17 no.11
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• pp.17-26
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• 2019

Purpose: Mobile media is gaining ground as an independent and core platform, and corporate interest and the expectations forstrategic use are rising in one-person media. Therefore, this study aims to establish interactivity, entertainment, information, professionalism, and up-to-date as the sub-factors of one-person media advertising properties, and to study the effect of one-personmedia advertising attributes on purchasing intention. Research design, data, and method: After collecting data from a total of 202 people, including 106 men and 96 women with the online survey method, frequency analysis and regression analysis were conducted using SPSS 25.0. Results: Research has shown that information, professionalism, entertainment, and up-to-date have a significant influence on purchasing intent. In addition, although information and expertise are found to have a significant influence on trust which shows a direct impact on the purchasing intention, the results of verification for the effect of purchasing intent through the medium of trust found to be significant in entertainment, information and up-to-date. Conclusions: There is a difference in Professionalism and Entertainment between men and women. This study provided the suggestions for establishing the most effective measures and marketing strategies in producing one-person media advertisements.

• Journal of the Korea Convergence Society
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• v.9 no.5
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• pp.157-169
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• 2018

The purpose of this study is to investigate the effect of voluntary purchasing motives on insurance consumer satisfaction. The purpose of this study is to investigate the direct and indirect effects of insurance consumption satisfaction including psychological needs of consumers that induce voluntary purchase motivation based on psychological self-determinism theory. The research hypotheses and models were verified through structural equation analysis using online surveys of 1,225 insurance consumers. As a result of the study, the satisfaction of insurance consumption is increased when purchasing by voluntary purchase motive, in which consumers perceive the necessity of purchasing themselves. The positive perception of insurance consumption autonomy and insurance consumption environment increases the motivation to purchase voluntarily, Respectively. Through this study, it is suggested that excessive marketing of insurance companies and self-confidence of insurance consumers may hinder insurance consumption satisfaction and education of consumption attitudes of financial consumers to raise awareness of autonomous rights and responsibilities of insurance consumers.

• Human Ecology Research
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• v.55 no.2
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• pp.153-166
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• 2017

This study examined the effects of the cognitive and affective country image of Korea on product evaluation and purchase intention for Korean products. The research model was developed from relevant literature based on the halo effect model and data was collected using a self-administered online survey of 772 Southeast Asian consumers from Vietnam, Indonesia, and Malaysia. The major findings are as follows. First, analysis of variance revealed that Vietnam consumers have a significantly positive perception compared to Indonesia and Malaysia, regarding the affective country image and purchase intention towards Korean products. Second, results from structural equation model showed that the affective country image has significantly positive effects on product evaluation and purchase intention, which means the affective country image is directly and indirectly connected to purchase intention towards Korean products. However, cognitive country image only has an indirect effect on purchase intention. Third, the results of comparing path coefficient among three countries showed that the direct effect is more effective for consumers in Indonesia and Malaysia, whereas indirect effect has a stronger effect on consumers in Vietnam. Academically, this study contributes to an expansion of understanding the effects of country image by empirically proving the different roles of cognitive and affective dimensions for country image. This study provides practical implications for developing marketing communication strategies for businesses that hope to penetrate Southeast Asian countries.

• Korean Journal of Organic Agriculture
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• v.30 no.2
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• pp.129-149
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• 2022

In March 2020, the National Assembly revised the Framework Act on Cooperatives, allowing a federation of heterogeneous cooperatives, and in October 2020, the Daegu Gyeongbuk Federation of Local Food Cooperatives was launched as the first federation of heterogeneous cooperatives in the country. The local food movement, which has been promoted upward in the local community as an alternative to the existing global food system, seems to be being activated by the government's food plan policy, but critics say that the government's policy goals are not fully achieved due to the top-down policy promotion and lack of communication. In response, this study first examines the role and significance of the local food federation of heterogeneous cooperatives in solving the problems raised in the process of establishing a food plan. In addition, the current status of the federation was investigated for the successful settlement and development of the Daegu Gyeongbuk Federation of Local Food Cooperatives. A survey of affiliated cooperatives, focus group interviews with managers and experts and related literature surveys were conducted. Based on this, the direction of activities was presented, such as the role of an intermediary in Daegu and Gyeongbuk and the role of an intermediary in the public and private sectors etc. In addition, six joint project tasks were specifically presented, including an integrated information sharing system & a logistics network, a planned production system & a joint processing center, an online sales system & a co-marketing promotion, a joint education system, a management of direct stores & restaurants, a sustainable public-private cooperation system etc.

• Journal of the Korean Society of Clothing and Textiles
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• v.46 no.2
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• pp.232-249
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• 2022

As the postsecondary school-age population continues to decline, the competition among universities to attract potential students has intensified. As an alternative, we propose to introduce a collaborative marketing strategy to universities to gain the attention of precollege students and parents. This study examines perceived fit, the prestige of university and fashion brands, consumption values, and the category of fashion brands in the context of collaboration between university identity and fashion brands. Utilizing an online survey, we collected 391 responses. The results indicate that perceived fit between universities and fashion brands has a significant impact on the purchase intention of collaborative university merchandise. In addition, the prestige of fashion brands plays a key role, while the prestige of universities has no direct effect on purchase intention. However, the indirect effect of university prestige on purchase intention mediated by perceived fit is significant. Also, this study confirms that social value and emotional value have significant impacts on purchase intention. These findings present a guideline for selecting a collaborative partner, which is the most important task in a collaboration strategy. Finally, merchandising strategies reflected consumption values based on precollege students and their parents' needs are proposed.

• Journal of Distribution Science
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• v.21 no.1
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• pp.85-93
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• 2023

Purpose: This research is intended to analyze how distribution of brand communication of a Soft Drink brand on brand image mediated through electronic word of mouth on packaged carbonated drink in Indonesian Gen-Z. This research also aims to find out how electronic word of mouth can have a role in creating a brand image for Indonesia Gen-Z. Research design, data and methodology: This research is using a quantitative approach with purposive sampling technique, a survey was conduct online and the number of samples being 384 responders who are spread all over Indonesia. The questionnaire construct was designed based on several variables, such as brand communication, brand image, and e-WOM. E-WOM was positioned as a mediating variable in this research. Brand Communication indicators consist of event and experience, public relation and publicity, direct marketing and personal selling. Meanwhile brand image consists of Attributes, Benefits, and Attitudes. E-WOM indicators consist of intensity, balance of opinion, and content. Results: The result of this research being (1) There is a significant influence between brand communication and brand image. (2) There is a significant influence between brand communication and electronic word-of-mouth. And (3) There is a significant influence between brand communication and brand image mediated through electronic word-of-mouth. Conclusion: The findings of this research prove that there is significant influence between brand communication, brand image and electronic word-of-mouth, this study also provide several information about how other factor affect the distribution of brand communication.

• Fashion & Textile Research Journal
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• v.26 no.2
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• pp.179-189
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• 2024

This study aims to explore the influence of product popularity signals on purchase intention in China's open market, with a focus on understanding the interaction effect of fashion product types. The popularity signals were measured through sales volume and review volume. For the experiment, a 2 (sales volume: high vs low) × 2 (review volume: high vs low) × 2 (fashion product type: trend vs basic) factorial design was employed. The findings of this study are summarized as follows. First, sales volume and review volume, as signals of the popularity of fashion products, did not appear to have a direct effect on purchase intention. Second, the impact of fashion product popularity on purchase intention was found to be contingent on the type of fashion product. When purchasing trendy fashion products, purchase intention was found to be higher under low popularity conditions compared to high popularity conditions. When purchasing basic fashion products, purchase intention was found to be higher under high popularity conditions compared to low popularity conditions. These findings contribute valuable insights for developing marketing strategies that leverage popularity signals for fashion products in China's open markets. Furthermore, the study improves understanding of online fashion product purchasing behavior among Chinese consumers.