Risk, trust, and consumer online purchasing behaviour : a Chilean perspective

Purpose: The purpose of this study is to investigate Latin American online purchase behaviour with a specific focus on the influence of perceived risk and trust. While studies of this nature have been conducted quite extensively in developed countries, their application in developing countries, such as Latin America is limited. Our study addresses this gap in the literature with an empirical study conducted in Chile. Design/methodology/approach: The authors develop and test a proposed model of the influence of consumer’s perceptions of risk and trust on their attitudes and intentions to purchase on the Internet. An online survey method is used. The sample consists of 176 Chilean consumers who have made at least one purchase online. The data is analysed using structural equation modelling technique (SEM). Findings: The analysis revealed that of the perceived risk and trust factors examined, trust in third party assurances and a cultural environment of trust had the strongest positive influence on intentions to continuing purchasing online. Perceived risk had an inverse relationship with attitude and consumers’ attitude has a positive influence on intentions to purchase online. Trust in online vendors and a propensity to trust were both insignificant. Practical implications: Practically, these results identity which risk and trust beliefs towards purchasing online have the most effect thereby providing insights into how companies should seek to mitigate perceptions of risk to encourage new and return purchasers. Additionally, this research shows that consumers in a Latin American country, recognised as a collectivist, high risk avoidance culture, are willing to make purchases online despite the risks involved. Originality/value: The study and its results is one of few available that consider a Latin American context. The value of the findings provides insights into the specific risk and trust factors that influence Chilean consumers when considering purchasing online. The tested model adds value not only to the literature on Latin American consumer behaviour but also provides guidance for companies offering online retailing facilities in these less developed countries.

Internet usage, internet intensity and international sales performance SME's : a structural model approach

There has been much written about the Internet’s potential to enhance international market growth opportunities for SME’s. However, the literature is vague as to how Internet usage and the application of Internet marketing also known as Internet marketing intensity has an impact on firm international market growth. This paper examines the level and role of the Internet in the international operations of a sample of 218 Australian SMEs with international customers. This study shows evidence of a statistical relationship between Internet usage and Internet marketing intensity, which in turn leads to international market growth, in terms of increased sales from new customers in new countries, new customers in existing countries and from existing customers.

The internetalisation of information, knowledge and interaction components of the firm’s internationalisation process

Transcending traditional national borders, the Internet is an evolving technology that has opened up many new international market opportunities. However, ambiguity remains, with limited research and understanding of how the Internet influences the firm’s internationalisation process components. As a consequence, there has been a call for further investigation of the phenomenon. Thus, the purpose of this study was to investigate the Internet’s impact on the internationalisation process components, specifically, information availability, information usage, interactive communication and international market growth. Analysis was undertaken using structural equation modelling. Findings highlight the mediating impact of the Internet on information and knowledge transference in the internationalisation process. Contributions of the study test conceptualisations and give statistical validation of interrelationships, while illuminating the Internet’s impact on firm internationalisation.

Online retailing versus traditional stores in the purchasing decision making process

Due to proliferation of online stores prior expectations that retailing would move completely online were not fulfilled. Previous research about consumers’ preference of retailing channels suggested that online sales are driven by the convenience of online shopping, or as a natural extension of online searches. This paradigm has changed over the years. Changes in consumer behaviour are indicating that while consumers are searching online using various information sources to learn about products, ultimately when purchasing, consumers are shifting between online and offline retailing channels depending on various factors. Online shopping is still considered to be a convenient way to purchase goods, but the convenience is not the key factor. This qualitative research is based on 22 in-depth interviews with shoppers in Australia.

Costco and the Aussie shopper : a case study of the market entry of an international retailer

Retailing is a globalized industry yet retailers must respond to local shopping habits if they are to be perceived as legitimate by the host country customers. However, some retailers may be unable or unwilling to respond to all customer requirements. Costco, the membership warehouse club retailer, has been successful in its international expansion efforts, establishing its first Australian store in Melbourne in 2009. In the first twelve months of operation, the store became one of Costco’s top five stores in the world. We investigate this success focussing on the customer, and use institutional theory to analyze what concessions were made by the customer and the company. Data were collected from consumer interviews, site visits and secondary media and industry sources. Analysis revealed negotiations based on the rejection, acceptance or adaptation of the regulative, normative and cultural cognitive aspects of the Australian shopper and the Costco business model. Customers made concessions to accommodate the new business model, and Costco responded to entrenched Australian shopping habits. This case is the first to explore the outcome of retail internationalization from the customers’ perspective, revealing the concept of mutual concessions. The interaction and subsequent adaptation by both customer and retailer have resulted in the institutionalization of new shopping norms in the host country and success for the international retailer.

Buy, boycott or blog : exploring online consumer power to share, discuss and distribute controversial advertising messages

The availability of new media as a universal communication tool has an impact on the power of the general public to comment on a variety of issues. This paper examines this increase in consumer power with respect to bloggers. The research context is controversial advertising, and specifically Tourism Australia’s “Where the bloody hell are you?” campaign. By utilising Denegri-Knott’s (2006) four on-line power strategies, a content analysis of weblogs reveals that consumers are distributing information, opinion and even banned advertising material, thereby forming power hubs of like-minded people, with the potential to become online pressure groups. The consequences and implications of this augmented power on regulators, advertisers and bloggers are explored. The findings contribute to the understanding of blogs as a new communication platform and bloggers as a new demographic of activists in the process of advertising.

Brand loyalty in the Australian wine industry

Consumers are increasingly exposed to a wider range of wine brands as the industry is becoming vastly competitive. Using data from Australian wine consumers, the authors empirically test a model of antecedents of wine brand loyalty. The findings of this study show that wine knowledge and wine experience influence wine brand loyalty indirectly through wine brand trust and wine brand satisfaction. In addition, it is demonstrated that consumer satisfaction with a wine brand is the strongest driver of wine brand loyalty.

Investigating Customer-Oriented Deviance (COD) from a frontline employee's perspective

While frontline employees (FLEs) are known to bend the rules or act in non-conforming ways for customers, the phenomenon of FLEs over-servicing customers is not well understood. This paper proposes a behavioural concept termed customer-oriented deviance (COD) and a conceptual model of its key drivers. Using a qualitative study involving 22 in-depth interviews with FLEs, the analysis reveals three categories of COD behaviours: deviant service adaptation (DSA), deviant service communication (DSC), and deviant use of resources (DUR). The drivers of COD are categorised as individual (risk-taking, service aptitude, and pro-social moral values), situational (resource availability, social capita with customers, legitimacy of customer problems, and avoidance of hassles), and organisational (unconducive service climate and anticipated rewards). This paper contributes to understanding how and why FLEs over-service customers and extends current research by exploring multiple categories of behaviours within a services marketing context.

Toward a shopping typology of primary male grocery shoppers

Purpose – The purpose of this paper is to segment primary male grocery shoppers based on store and product attribute evaluations. A rich profile for each segment is developed. These developed contemporary shopper typologies are contrasted against earlier works. Design/methodology/approach – Data of 280 male grocery shoppers was attained by a survey questionnaire. Factor analysis, cluster analysis and ANOVA were employed to develop specific segments of male shoppers. Findings – Four distinct cohorts of male shoppers emerge from the data of eight constructs, measured by 46 items. One new shopper type, not found in earlier typology literature, emerged from this research. This shopper presented as young, well educated, at the commencement of their career and family lifecycle, attracted by a strong value offer and willingness to share the family food shopping responsibilities. Practical implications – Research outcomes encourage supermarket retailers to implement targeted marketing and rationalized operational strategies that deliver on attributes of importance. Originality/value – This research makes a contribution to segmentation literature and grocery retail practice in several ways. It presents the first retail typology of male supermarket shoppers, employing a cluster analysis technique. The research provides insights into the modern family food shopping behaviour of men, a channel in which men are now recognised as equal contributors. The research provides the basis for further gender comparative and cross-contextual studies.

Consumer Internet purchasing behaviour in Chile

Despite the potential for e-commerce growth in Latin America, studies investigating factors that influence consumers’ Internet purchasing behavior are very limited. This research addresses this limitation with a consumer centric study in Chile using the Theory of Reasoned Action. The study examines Chilean consumers’ beliefs, perceptions of risk, and subjective norms about continued purchasing on the Internet. Findings show that consumers’ attitude towards purchasing on the Internet is an influential factor on intentions to continue Internet purchasing. Additionally, compatibility and result demonstrability are influential factors on attitudes towards this behavior. The study contributes to the important area of technology post adoption behavior.

The role of the Internet on export market growth : an empirical study in Latin America

The Internet has been shown to positively influence the export activities of firms from developed countries. However, the literature is vague as to whether the Internet has an impact on the export market growth of firms form developing countries. This paper examines of a cross-national sample of 204 firms from a Latin American country (Chile). The results show that Internet marketing activities positively influence information availability and business relationships, which lead to an increase in export market growth. The findings indicate that the Internet influences not only information availability for export performance but also business relationships generally thought to be face to face interactions in nature.

Experience sharing

This conceptual paper continues the dialogue advancing the understanding of co-creation of value aligned to the actor-to-actor worldview (Vargo & Lusch, 2011), and builds on the work of Grönroos (2011) and Ramaswamy (2011). We introduce an effort-centric lens that interprets value as embedded in experience that is derived from individual efforts expended in co-creation processes. We conceptualise `experience sharing' as a value creation effort for the direct benefit of others, `value-in-experience' as an effort-based meaning of value creation, and `value initiators' as actors who perform `experience sharing'. In turn, we put forward an integrated framework to expand our understanding of `co-creative' interpretation of service provision.

Pricing approaches in the construction industry

Contractors have to bid competitively for most of their work and at the same time deal with the risks and uncertainties connected with bid submission. This article examines the factors involved in tender pricing and how they interrelate. From this, a conceptual model of contractors’ pricing strategy is developed.

Hollywood’s dominance : a revisionist approach

This 
paper 
is
 based
 on 
a
 PhD 
thesis
 that investigated how Hollywood’s
dominance 
of
 the
 movie
 industry 
arose
 and
 how
 it
 has
 been
 maintained
over
time.
 Major 
studio
 dominance 
and
 the 
global
 popularity 
of
Hollywood
 movies has
 been
 the 
subject
 of
 numerous 
studies. 
An interdisciplinary
 literature 
review
 of 
the
 economics,
 management,
marketing,
 film,
 media
 and
 culture 
literatures
 identified
 twenty
 different 
single 
or
multiple 
factor
 explanations
 that 
try
 to
 account
 for
Major
 studio
 dominance 
at
 different
 time
 periods
 but
 cannot
comprehensively 
explain 
how 
Hollywood
 acquired
 and 
maintained
 global
 dominance 
for
 nine
 decades. 
Existing 
strategic
 management 
and
marketing
 theories
 were 
integrated 
into
 a 
‘theoretical
 lens’
 that
 enabled
a
 historical
 analysis
 of 
Hollywood’s
 longstanding 
dominance 
of
 the
movie
 business
 to
 be 
undertaken 
from 
a
 strategic
 business
 perspective.
 This
 paper
 concludes
 that 
the
 major 
studios 
rise 
to
 market 
leadership
 and 
enduring
 dominance
 can
 primarily
 be
 explained 
because 
they
 developed
 and 
maintained 
a 
set
 of
 strategic
 marketing
 management
 capabilities 
that
 were
 superior 
to rival
 firms
 and 
rival 
film 
industries. 
It
 is
 argued that 
a 
marketing
 orientation 
and 
effective
 strategic
 marketing
management
 capabilities 
also
 provide
a 
unifying
 theory
 for
 Hollywood’s
enduring 
dominance 
because 
they
 can 
account
 for
 each
 of
 the 
twenty
 previously
 identified
 explanations 
for 
that
 dominance.



The effects of portal website attitude and e-services on branding of e-stores

Purpose –Increasingly the company websites, along with the intermediary websites such as portal sites have become an integral component of the firms brand strategy. This study emphasises the importance of website service elements within portal sites and the impact on e-retailer brand attitudes and brand identity in an ever more competitive digital market-space. Design/methodology/approach– The research employs structural equation modeling technique to capture the relationship among website attitude, e-service quality, brand attitude and brand identity. Findings–The results from the study indicate consumer attitude perceptions toward portal website and e-service elements combine to increase brand attitude and also brand identity for e-retailers. Originality/value –Although there has been a plethora of studies evaluating corporate websites and branding interactions there is limited comprehension of the impact of intermediary portal sites. Moreover, the literature is limited in validating the link between e-services with brand attitude and brand identity within a portal website context. This study develops a framework that highlights the important influence of e-services within portal websites and the impact on the firm’s brand.