The voice of the consumer speaks forcefully in brand identity: user-generated content forces smart marketers to listen

User-generated content (UGC) is attracting a great deal of interest - some of it effective, some misguided. This article reviews the marketing-related factors that gave rise to UGC, tracing the relevant development of market orientation, social interaction, word of mouth, brand relationships, consumer creativity, co-creation, and customization, largely through the pages of the Journal of Advertising Research over the last 40 (or so) of its 50 years. The authors then discuss the characteristic features of UGC and how they differ from (and are similar to) these concepts. The insights thus gained will help practitioners and researchers understand what UGC is (and is not) and how it should (and should not) be used.

Consumer-based brand equity conceptualisation and measurement: a literature review

Although there is a large body of research on brand equity, little in terms of a literature review has been published on this since Feldwick's (1996) paper. To address this gap, this paper brings together the scattered literature on consumer-based brand equity's conceptualisation and measurement. Measures of consumer-based brand equity are classified as either direct or indirect. Indirect measures assess consumer-based brand equity through its demonstrable dimensions and are superior from a diagnostic level. The paper concludes with directions for future research and managerial pointers for setting up a brand equity measurement system.

Can sentiment surveys pre-empt real estate market activities?

We evaluate a number of real estate sentiment indices to ascertain current and forward-looking information content that may be useful for forecasting the demand and supply activities. Our focus lies on sector-specific surveys targeting the players from the supply-side of both residential and non-residential real estate markets. Analyzing the dynamic relationships within a Vector Auto-Regression (VAR) framework, we test the efficacy of these indices by comparing them with other coincident indicators in predicting real estate returns. Overall, our analysis suggests that sentiment indicators convey important information which should be embedded in the modeling exercise to predict real estate market returns. Generally, sentiment indices show better information content than broad economic indicators. The goodness of fit of our models is higher for the residential market than for the non-residential real estate sector. The impulse responses, in general, conform to our theoretical expectations. Variance decompositions and out-of-sample predictions generally show desired contribution and reasonable improvement respectively, thus upholding our hypothesis. Quite remarkably, consistent with the theory, the predictability swings when we look through different phases of the cycle. This perhaps suggests that, e.g. during recessions, market players’ expectations may be more accurate predictor of the future performances, conceivably indicating a ‘negative’ information processing bias and thus conforming to the precautionary motive of consumer behaviour.

Measuring the consumer benefits of improving farm animal welfare to inform welfare labelling

Policy makers in the European Union are envisioning the introduction of a community farm animal welfare label which would allow consumers to align their consumption habits with their farm animal welfare preferences. For welfare labelling to be viable the market for livestock products produced to higher welfare standards has to be sufficiently segmented with consumers having sufficiently distinct and behaviourally consistent preferences. The present study investigates consumers’ preferences for meat produced to different welfare standards using a hypothetical welfare score. Data is obtained from a contingent valuation study carried out in Britain. The ordered probit model was estimated using Bayesian inference to obtain mean willingness to pay. We find decreasing marginal WTP as animal welfare levels increase and that people’s preferences for different levels of farm animal welfare are sufficiently differentiated making the introduction of a labelling scheme in the form of a certified rating system appear feasible.

Exploring the market potential of 'local' in food systems

Local food initiatives create a niche market in many developed countries where consumer choice is being met with an expanding offering in both conventional as well as complementary retail outlets. Supermarkets in conjunction with the food service sector currently dominate food sales and consumption, and are likely to do so for the foreseeable future. However, the local food sector offers an opportunity for implementing niche marketing strategies for many businesses. Local food activities tend to be relatively independent activities and a clearer definition for “local” food would assist in consolidating this important component of the food system. Related to this, consumers would benefit from the establishment of some form of assurance system for the ‘localness’ of food. In the UK, with its well established local food market, farmers’ markets, farm shops and box schemes are currently having the largest impact in terms of total sales. Hence further research is required to confirm that support for similar business ventures in Australia would be a viable strategy for strengthening its local food systems.

The role of the consumer-citizen in environmental protest in the 1990s

This paper links market‐based ‘protest’ strategies, as used recently by environmental protest groups and other sociations, to citizenship theory, seeking to open a debate about the role of the consumer‐citizen. It is suggested that such consumer‐citizenship, whereby protest and political action are encouraged through market mechanisms, and limited through state action, is an important feature of late‐modernity. The paper seeks to illustrate how advanced capitalist societies are producing reworked forms of rights relationships. This is discussed within the context of the rhetoric of ‘active’ citizenship as used in UK politics and through examples of recent environmental protests and other consumer‐citizen strategies.

Market effects of changes in consumers' social responsibility

In a duopoly model of vertical differentiation, we study market equilibrium and the resulting social welfare following an increase in the consumer's willingness to pay (WTP) for products sold by socially responsible manufacturers. Different types of such changes emerge depending on their effects on consumer heterogeneity. We show that, in most cases, increases in the consumers' social consciousness yield higher profits to socially responsible firms and may lead to higher levels of social welfare, provided that the market structure is left unchanged. However, when an increase in the consumer's social consciousness changes the market structure, welfare may fall, while the duopolists' profits rise. The resulting tension between private and social interest calls for a cautious attitude toward information campaigns aimed at increasing the consumer's social consciousness.

Managing a duopolistic water market with confirmed proposals. An experiment

We report results from experimental water markets in which owners of two different sources of water supply water to households and farmers. The final water quality consumed by each type of consumer is determined through mixing of qualities from two different resources. We compare the standard duopolistic market structure with an alternative market clearing mechanism inspired by games with confirmed strategies (which have been shown to yield collusive outcomes). As in the static case, complex dynamic markets operating under a confirmed proposals protocol yield less efficient outcomes because coordination among independent suppliers has the usual effects of restricting output and increasing prices to the users. Our results suggest that, when market mechanisms are used to allocate water to its users, the rule of thumb used by competition authorities can also serve as a guide towards water market regulation.

Consumers perception and evaluation of fresh cut buying attributes: a survey on the Italian market

During the last twenty years, consumer choice in high income countries is no longer merely dictated by price and the organoleptic characteristics of a product, but also by other features some of which are not patently tangible. The growing importance of such attributes in the process of consumer choice is not only due to income increase, but also to changes in lifestyle such as migrations from the countryside, a generalized urbanization and consequential city life style, female emancipation and work outside the domestic walls for women, the drastic decrease in hard physical labor and the process of internationalization. The present survey study aims to explore the importance that Italian consumers give to fresh cut buying attributes and which of these attributes should be taken into consideration by industries in order to satisfy the needs of the most critical shoppers. Where possible, market and survey data for fresh cut products will be compared with those for cooked products and before presenting the results and conclusions of the study, the technical issues of processing will be highlighted owing to the fact that they affect the marketing of these products, the recent market situation with regard to consumption will be illustrated and the methodology used will be described.

Disrupting the market for illegal rhino horn and ivory

This paper considers methods for regulating the trafficking of rhino horn and ivory, seen through the lens of compliance theories. It stresses the importance of the distinction between normative and instrumental motivations. It argues for a balanced set of strategies that include normative levers designed to change the behaviour of poachers, traffickers and consumers of these products. In particular it considers the options needed to achieve demand reduction in consumer countries, and those needed to provide incentives to local communities in producer countries to disengage from poaching.

Consumer behaviour towards organic ready-to-eat meals: a case of quality innovation

Over the past decades, a significant number of peer-reviewed journal articles on the field of interest, has gradually grown mirroring the corresponding relevance. The purpose of this research is mainly to analyse the factors that could influence the choices of consumers’ when purchasing organic RTE meals while simultaneously identifies consumers’ attitudes regarding the ethical and green sounds towards such products. Particularly, special interest is placed on the dual nature of these products which on the one hand are characterized by high quality (organic) and on the other hand by the convenience factor. As a result, research has been carried out in order to examine both the potentiality of organic RTE meals in the food market and also the presentation of consumers’ behaviour and perceptions towards these products from a review perspective. Hence, a narrative literature review was performed in order to produce an overview of the most important outcomes and trends in this area being presented, compared and summarised based on authors’ experience. To put over a holistic approach of organic RTE meals purchase behaviour and attitudes, both key findings and other areas that have not been extensively documented, are presented.