Digital Exhaustion in relation to Video Games – The Consumer Perspective

This thesis regards exhaustion of copyright’s distribution right in intangible transfers of video games. It analyses whether, under the current law of the European Union, the phenomenon of digital exhaustion, especially in relation to games exists. The thesis analyses the consumers’ position in the market for copyright protected goods. It uses video games market as an example of the wider phenomenon of the effect of latest technological developments on consumers. The research conducted for the thesis is mostly legal dogmatic, although also comparative analysis, law and economics and law and technology methods are utilised. The thesis evaluates the effects of the most recent case law of the European Court of Justice to analyse the current state of digital exhaustion. In the analysis of effects that the existence of digital exhaustion has, the thesis uses the consumers’ point of view. The thesis introduces the current state of technology in the field of video games from a legal perspective. Furthermore the thesis analyses the effects on consumers of a scenario that no digital exhaustion exists in the future. Such scenario under the recent European case law at the moment seems realistic. The conclusion of my research is most importantly that the consumer position in the market for digital goods has deteriorated and that the probable exclusion of the exhaustion for digital goods is another piece of evidence of this development. Most importantly however, the state of affairs where no certainty prevails on whether digital exhaustion exists, creates injustice from the consumers’ point of view. Accordingly, acts by EU legislators of the Court of Justice of the European Union are required to clarify the issue.

Impact of Word-of-Mouth on consumer decision-making: An information processing perspective in the context of a high-involvement service

This doctoral study conducts an empirical analysis of the impact of Word-of-Mouth (WOM) on marketing-relevant outcomes such as attitudes and consumer choice, during a high-involvement and complex service decision. Due to its importance to decisionmaking, WOM has attracted interest from academia and practitioners for decades. Consumers are known to discuss products and services with one another. These discussions help consumers to form an evaluative opinion, as WOM reduces perceived risk, simplifies complexity, and increases the confidence of consumers in decisionmaking. These discussions are also highly impactful as WOM is a trustworthy source of information, since it is independent from the company or brand. In responding to the calls for more research on what happens after WOM information is received, and how it affects marketing-relevant outcomes, this dissertation extends prior WOM literature by investigating how consumers process information in a highinvolvement service domain, in particular higher-education. Further, the dissertation studies how the form of WOM influences consumer choice. The research contributes to WOM and services marketing literature by developing and empirically testing a framework for information processing and studying the long-term effects of WOM. The results of the dissertation are presented in five research publications. The publications are based on longitudinal data. The research leads to the development of a proposed theoretical framework for the processing of WOM, based on theories from social psychology. The framework is specifically focused on service decisions, as it takes into account evaluation difficulty through the complex nature of choice criteria associated with service purchase decisions. Further, other gaps in current WOM literature are taken into account by, for example, examining how the source of WOM and service values affects the processing mechanism. The research also provides implications for managers aiming to trigger favorable WOM through marketing efforts, such as advertising and testimonials. The results provide suggestions on how to design these marketing efforts by taking into account the mechanism through which information is processed, or the form of social influence.

Logistics Cost Optimization of Road Freight Shipments in a Consumer Goods Company

In the industry of the case company, transportation and warehousing costs account for more than 10% of the total cost which is more than on average. A Finnish company has an understanding that by sending larger shipments in parcels, they could save tens of thousands of euros annually in freight costs in Finland’s domestic shipments. To achieve these savings and optimize total logistics cost, company’s interest is to find out which is the cost efficient way of shipping road shipments of certain volumes; in parcel boxes or on pallets, and what should be the split volume determining the shipment type. Distribution center (DC) costs affect this decision and therefore they need to be also evaluated to determine the total logistics cost savings. Main results were achieved by executing activity-based costing-calculations including DC and road freight costs to determine the ideal split volume with which the total logistics cost is optimal. Calculations were done for Finland’s DC, separately for two main road freight destinations, Finland and Sweden, which cover 50% of road shipment spend. Data for calculations was collected both manually and automatically from various internal and external sources, such as the company ERP system and logistics service providers’ (LSP) reporting. DC processes were studied in practice and compared to model processes. Currently used freight rates were compared to existing pricing models and freight service tendering process was evaluated by participating in the process and comparing it to the models based on literature. The results show that the potential savings are not as significant as the company hoped for, mainly because of packing work increasing DC labor cost. Annual savings by setting ideal split volume per country would account for 0,4 % of the warehousing and transportation costs of shipments in scope of this thesis. Split volume should be set separately for each route, mainly because the pricing model for road freight is different in each country. For some routes bigger parcels should be sent but for some routes pallets should be used more. Next step is to do these calculations for remaining routes to determine total savings potential. Other findings show that the processes in the DC are designed well and the company could achieve savings by executing tenders more efficiently. Company should also pay more attention to parcel pricing and packing the shipments accordingly.

Consumer neuroscience: usability of brain imaging methods in marketing research

Consumer neuroscience (neuromarketing) is an emerging field of marketing research which uses brain imaging techniques to study neural conditions and processes that underlie consumption. The purpose of this study was to map this fairly new and growing field in Finland by studying the opinions of both Finnish consumers and marketing professionals towards it and comparing the opinions to the current consumer neuroscience literature, and based on that evaluate the usability of brain imaging techniques as a marketing research method. Mixed methods research design was chosen for this study. Quantitative data was collected from 232 consumers and 28 marketing professionals by means of online surveys. Both respondent groups had either neutral opinions or lacked knowledge about the four themes chosen for this study: benefits, limitations and challenges, ethical issues and future prospects of consumer neuroscience. Qualitative interview data was collected from 2 individuals from Finnish neuromarketing companies to deepen insights gained from quantitative research. The four interview themes were the same as in the surveys and the interviewees’ answers were mostly in line with the current literature, although more optimistic about the future of the field. The interviews also exposed a gap between academic consumer neuroscience research and practical level applications. The results of this study suggest that there are still many unresolved challenges and relevant populations either have neutral opinions or lack information about consumer neuroscience. The practical level applications are, however, already being successfully used and this new field of marketing research is growing both globally and in Finland.

CONSUMER PERCEPTIONS ON A CONTENT-BASED DIGITAL SERVICE. The usage and service quality of Masennusinfo.fi

Kuluttajat käyttävät sisältöpohjaisia digitaalisia palveluita jatkuvasti saadakseen lisää tietoa terveydestään. Samalla he arvioivat käyttämiensä palveluiden laatua. Jotta yritykset voisivat suunnitella ja tarjota parhaita mahdollisia digitaalisia palveluita kuluttajille, yritysten tulisi tunnistaa ja analysoida kuluttajien kokemuksia ja käyttötarkoituksia heidän palveluissaan. Tämän tutkimuksen tarkoituksena on kuvailla kuluttajien näkemyksiä Masennusinfo.fi:stä, joka on sisältöpohjainen digitaalinen palvelu, ja joka tarjoaa käyttäjilleen tietoa masennuksesta. Päämääränä on selvittää, kuinka kuluttajat kokevat lääkeyrityksen tarjoaman palvelun laadun ja mihin tarkoituksiin sitä käytetään. Tutkimuksen tarkoitus voidaan jakaa kolmeen osa-ongelmaan: • Mihin tarkoituksiin kuluttajat käyttävät sisältöpohjaisia digitaalisia palveluita? • Miten kuluttajat kokevat näiden palveluiden laadun? • Kuinka käyttötarkoitus ja koettu laatu eroavat eri käyttäjäryhmissä? Tutkimus toteutetaan web-pohjaisella kyselytutkimuksella. Mittarit tehdään teoreettisen viitekehyksen pohjalta, joka perustuu aikaisempaan tutkimukseen. Tutkimuksen empiirinen osuus suoritetaan pop-up tutkimuksella, joka sijoitetaan tutkittavalle sivustolle antaen näin kaikille palvelun käyttäjille mahdollisuuden vastata kyselyyn. Tulokset osoittavat, että palvelua käyttävät suurimmaksi osaksi naiset, suhteellisen nuoret 16−29-vuotiaat, tai yli keski-ikäiset 50−65-vuotiaat henkilöt, jotka ovat joko työssäkäyviä tai opiskelijoita ja korkeasti koulutettuja. Masennusinfo.fi nähdään laadukkaana palveluna kaikissa käyttäjäryhmissä sekä sen käytettävyyden että sisällön perusteella. Käyttötarkoituksetkin ovat jokseenkin samankaltaisia eri käyttäjäryhmissä. Yleensä palvelua käytetään tiedon hakemiseen sairauden alkuvaiheessa. Löydöksien perusteella esitetään, että palvelua muokataan vastaamaan yhä paremmin sen käyttötarkoituksia ja tyypillistä käyttäjäprofiilia. Koska muutamia pieniä eroja käyttäjäryhmien näkemyksissä havaittiin, palveluiden tuottaja päättää, minkä ryhmän mieltymyksiä se noudattaa.

Consumer-led new product development. Case: Dairy Industry

This thesis focuses on consolidation the recommendations on the integration of consumer in new product development (NPD) given in the academic literature, and on the example of the three NPD projects in the case company. The empirical findings advocate that the case company fulfills the principles of consumer-led NPD, and it is only one-step away of the full consumer empowerment strategy. Therefore, its NPD can be seen as an example of consumer-led NPD implementation. The findings also suggest that the product can be developed in consumer-led way regardless of the source of an idea (product- or need-driven), the target audience and resources assigned, in case when consumer mindset is integrated on all levels of organisation: strategic, cultural, operational and process. It is possible with top-management commitment, internal consumer research group, and the sophisticated consumer research methods. The specific managerial recommendations are given on developing consumer-led culture, strategy, NPD process and the appropriate consumer research methods and techniques.

Consumer neuroscience: usability of brain imaging methods in marketing research

Consumer neuroscience (neuromarketing) is an emerging field of marketing research which uses brain imaging techniques to study neural conditions and processes that underlie consumption. The purpose of this study was to map this fairly new and growing field in Finland by studying the opinions of both Finnish consumers and marketing professionals towards it and comparing the opinions to the current consumer neuroscience literature, and based on that evaluate the usability of brain imaging techniques as a marketing research method. Mixed methods research design was chosen for this study. Quantitative data was collected from 232 consumers and 28 marketing professionals by means of online surveys. Both respondent groups had either neutral opinions or lacked knowledge about the four themes chosen for this study: benefits, limitations and challenges, ethical issues and future prospects of consumer neuroscience. Qualitative interview data was collected from 2 individuals from Finnish neuromarketing companies to deepen insights gained from quantitative research. The four interview themes were the same as in the surveys and the interviewees’ answers were mostly in line with the current literature, although more optimistic about the future of the field. The interviews also exposed a gap between academic consumer neuroscience research and practical level applications. The results of this study suggest that there are still many unresolved challenges and relevant populations either have neutral opinions or lack information about consumer neuroscience. The practical level applications are, however, already being successfully used and this new field of marketing research is growing both globally and in Finland.

Home Made Cars: An insight on Consumer Ethnocentrism – Case Saab

Saab outstands in the history of the Finnish car manufacturing. This is not only due to that these cars have been manufactured in Finland more than other passenger vehicles altogether. Finns also have a special emotional attachment to the “Finnish Saabs”. Findings from previous studies show that consumers connect cars well to the origin of the brand (COB). They are however rarely aware of the Country of Manufacturing (COM). Domestic brands are often popular in the COB, but research from situations in which the domestic origin is limited to the COM is rare. The case of this study is a phenomenon, in which the products origin is two dimensional and divided into domestic COM and foreign COB. The aim is to understand the phenomenon’s effect on consumer behavior. The research problem is approached with two sub questions: • Which country do consumers perceive as the origin country of the car? • What is the role of this origin in the consumers’ product perception and purchasing decision of the car? The theoretical framework of this study applies previous findings of two areas of interest: Country of Origin effect and Consumer Ethnocentrism. This is followed by feasibility studies that present and discuss the history and current state of Finnish car manufacturing. Based on the findings of earlier stages of the study, the role of the domestic COM on consumer behavior is presumed high. This expectation is confirmed by the experts and also by the first consumer respondent, who states domestic origin having been the main motivation to his car choice. All further consumer respondents do however not connect Saab to the home country, but discuss it as a Nordic car. This unexpected finding means that they do not perceive the origin to be neither the COM nor COB, but a geographical area that includes both countries. In other words, consumers have widened their in-group in a way that is in this thesis explained with reference group theory. The consumers’ perceived origin of the car is in this research found to be an important factor to the consumers’ product perception and purchasing decision. Being fit for the yields of the local environment is discovered to have been the most important factor to Finnish consumers purchasing choice of a Saab and the Nordic origin has been an indicator of this fit to them.

Product recall process development for exported nonfood consumer products

The purpose of this research is to examine the different opportunities that companies operating on international level has for conducting a product recall. The main subject of the research is strategic decision-making of recall and product recall process. The theoretical framework, core of the research, is based on research questions. The research is performed as qualitative case study and the material has been collected by combining results of previous studies and by observing the case company. Different opportunities for conducting a recall are examined in the empirical part of this study. As a result, different product recall models have been created, which all require deep cooperation between different entities of the supply chain.

Consumer Behavior in Mortgage Market: Evidence from Russia

The purpose of this master thesis is to identify behavioral patterns of potential borrower in mortgage market in crisis conditions and to link mortgage products available on Russian market with potential borrowers segments in dependence of detected patterns. Empirical results achieved through 172 answers of potential borrowers allowed to classify them in four groups in dependence of respondent perceptions about mortgage and future. On the basis of literature review and currently state of Russian mortgage market particular mortgage products were suggested to each of four clusters of potential borrowers. Then, recommendations for Russian banks how to apply received results were developed. Current master thesis has strong both academic and managerial contributions. It it adds significant value to existing consumer behavior studies; and provides practical recommendations for Russian banks how to understand mortgage borrower behavior in order to increase trust to mortgage among population.

Scanning the future of Single Euro Payment Area – towards cashless payment methods

The future of paying in the age of digitalization is a topic that includes varied visions. This master’s thesis explores images of the future of paying in the Single Euro Payment Area (SEPA) up to 2020 and 2025 through the views of experts specialized in paying. This study was commissioned by a credit management company in order to obtain more detailed information about the future of paying. Specifically, this thesis investigates what could be the most used payment methods in the future, what items could work as a medium of exchange in 2020 and how will they evolve towards the year 2025. Changing consumer behavior, trends connected to payment methods, security and private issues of new cashless payment methods were also part of this study. In the empirical part of the study the experts’ ideas about probable and preferable future images of paying were investigated through a two-round Disaggregative Delphi method. The questionnaire included numeric statements and open questions. Three alternative future images were created with the help of cluster analysis: “Unsurprising Future”, “Technology Driven Future” and “The Age of the Customer”. The plausible images had similarities and differences, which were reflected to the previous studies in the literature review. The study’s findings were formed based on the images of futures’ similarities and to the open questions answers that were received from the questionnaire. The main conclusion of the study was that development of technology will unify and diversify SEPA; the trend in 2020 seems to be towards more cashless payment methods but their usage depends on the countries’ financial possibilities and customer preferences. Mobile payments, cards and cash will be the main payment methods but the banks will have competitors from outside the financial sector. Wearable payment methods and NFC technology are seen as widely growing trends but subcutaneous payment devices will likely keep their niche position until 2025. In the meantime, security and private issues are seen to increase because of identity thefts and various frauds. Simultaneously, privacy will lose its meaning to younger consumers who are used to sharing their transaction and personal data with third parties in order to get access to attractive services. Easier access to consumers’ transaction data will probably open the door for hackers and cause new risks in paying processes. There exist many roads to future, and this study was not an attempt to give any complete answers about it even if some plausible assumptions about the future’s course were provided.