Purchase decision-making in fair trade and the ethical 'gap':'is there a fair trade twix?'

Children are increasingly being recognised as a significant force in the retail market place, as primary consumers, influencers of others, and as future customers. This paper adds to the literature on children as consumers by exploring their attitudinal responses to a specific group of products: Fair Trade lines. There has been no research to date that has specifically addressed children as consumers of Fair Trade or the ethical purchase decision-making process in this area. The methodological approach taken here is an essentially interpretive and naturalistic analysis of two focus groups of school children. The analysis found that there is an urgent need to develop meaningful Fair Trade brands that combine strong brand knowledge and positive brand images to bridge the ethical purchase gap between the formation of clear ethical attitudes and actual ethical purchase behaviour. Such an approach would both capture more of the children’s primary market and influence future purchase behaviour. It is argued that Fair Trade actors should coordinate new marketing communications campaigns that build brand knowledge structures holistically around the Fair Trade process and that extend beyond merely raising consumer awareness.

Differences in consumer price knowledge between Germany and Finland

Price knowledge studies are a key to understanding behavioural pricing strategies. Consumer price knowledge is an ongoing concern in the literature. It is also generally acknowledged that price awareness is subject to cross-cultural differences. This is important because the retailer market is dominated by global players who use standardized marketing-mix instruments. However, there are no studies about price knowledge between countries. This study examines differences in price knowledge between German and Finnish consumers. The results show that Finnish consumers were able to give at least some price estimate for a product more often, but the estimates of German consumers were more accurate. Due to data limitations of our study more research is needed about cross-cultural price knowledge.

Market-awareness in service-based systems

Service-based systems are applications built by composing pre-existing services. During design time and according to the specifications, a set of services is selected. Both, service providers and consumers exist in a service market that is constantly changing. Service providers continuously change their quality of services (QoS), and service consumers can update their specifications according to what the market is offering. Therefore, during runtime, the services are periodically and manually checked to verify if they still satisfy the specifications. Unfortunately, humans are overwhelmed with the degree of changes exhibited by the service market. Consequently, verification of the compliance specification and execution of the corresponding adaptations when deviations are detected cannot be carried out in a manual fashion. In this work, we propose a framework to enable online awareness of changes in the service market in both consumers and providers by representing them as active software agents. At runtime, consumer agents concretize QoS specifications according to the available market knowledge. Services agents are collectively aware of themselves and of the consumers' requests. Moreover, they can create and maintain virtual organizations to react actively to demands that come from the market. In this paper we show preliminary results that allow us to conclude that the creation and adaptation of service-based systems can be carried out by a self-organized service market system. © 2012 IEEE.

The influence of brand equity on consumer responses

Purpose: The purpose of this paper is to propose and test a model to better understand brand equity. It seeks to investigate the effects of this construct on consumers' responses using data from two European countries. Design/methodology/approach: Hypotheses were tested using structural equation modeling (SEM). Measurement invariance and stability of the model across the two national samples was assessed using multigroup confirmatory factor analysis. Findings: Results indicate that brand equity dimensions inter-relate. Brand awareness positively impacts perceived quality and brand associations. Brand loyalty is mainly influenced by brand associations. Finally, perceived quality, brand associations and brand loyalty are the main drivers of overall brand equity. Findings also corroborate the positive impact of brand equity on consumers' responses. In addition, the general framework proposed is found to be empirically robust across the studied countries. Only a few differences are observed. Research limitations/implications: A limited set of product categories, brands and countries were used. Practical implications: Findings provide useful guidelines for brand equity management. Managers can complement financial metrics with consumer-based brand equity measures to track brand performance over time and to benchmark against other brands. Building brand equity generates more value for corporations since a more favourable consumer response results from positive brand equity. Originality/value: This study contributes to the scarce international brand equity literature by testing the proposed model using data from a sample of consumers in two European countries. It also enriches the brand equity literature by empirically examining the relationships among consumer-based brand equity dimensions and its effects on consumers' responses. © Emerald Group Publishing Limited.