ADR and Justice in consumer disputes in the EU

This policy brief reports on the main conclusions from an international conference held at Wolfson College, Oxford on 18–20 April 2016, at which representatives from seven governments, ombudsmen, and academic experts assessed efforts to implement new dispute resolution mechanisms across EU Member States. The briefing also assesses the levels of trust the public holds in ombudsmen, and what drives this trust. It finds a number of mechanisms under development, and makes a range of recommendations for future approaches.

A voice for change? Trust relationships between ombudsmen, individuals and public service providers

There has been a debate for years about what the role of the ombudsman is. This article examines a key component of the role, to promote trust in public services and government. To be able to do this, however, an ombudsman needs to be perceived as legitimate and be trusted by a range of stakeholders, including the user. This article argues that three key relationships in a person’s complaint journey can build trust in an institution, and must therefore be understood as a system. The restorative justice framework is adapted to conceptualize this trust model as a novel approach to understanding the institution from the perspective of its users. Taking two public sector ombudsmen as examples, the article finds that voice and trust need to be reinforced through the relationships in a consumer journey to manage individual expectations, prevent disengagement, and thereby promote trust in the institution, in public service providers, and in government.

Consumer reactions to different forms of CSR communication

Aim Companies around the world are making sizeable investments into CSR initiatives, but ensuring appropriate returns on these investments remains challenging. Therefore, it is of value to study the communication of corporate CSR efforts. The purpose of this study is to investigate how consumers react to rational versus emotional message strategies in CSR communication. Two categories of consumer reactions were considered: trust and purchase intention. Methods Qualitative research with four focus groups was conducted. Participants discussed three texts regarding a CSR project, utilising a rational, emotional and a hybrid rational-emotional message strategy respectively. The conversations focused on trust towards the communication and purchase intention. Results Trust - All of the respondents viewed the rational text over the emotional text as more trustworthy, but they most positively reacted to the combined strategy. Rational information was viewed as more reliable by many participants, with emotional cues adding value by better holding their attention. Purchase intention – Participants more positively reacted to the rational CSR communication strategy, compared to an emotional strategy. For approximately half of respondents, the hybrid strategy targeting both rational and emotional cues was the most successful in terms of purchase intention. Upon further analysis, it was identified that this division in respondents’ opinions may reflect a gender difference, where men portrayed the more task oriented and women the socially sensitive consumers. Conclusions The findings support previous research championing the use of rational strategies over emotional strategies in CSR communication. A number of managerial implications that can be used by companies in order to better communicate their CSR activities and increase returns on CSR-related investments are provided.

Collecting valuable consumer data: Motivating consumers to disclose personal information

Collecting and analyzing consumer data is essential in today’s data-driven business environment. However, consumers are becoming more aware of the value of the information they can provide to companies, thereby being more reluctant to share it for free. Therefore, companies need to find ways to motivate consumers to disclose personal information. The main research question of the study was formed as “How can companies motivate consumers to disclose personal information?” and it was further divided into two subquestions: 1) What types of benefits motivate consumers to disclose personal information? 2) How does the disclosure context affect the consumers’ information disclosure behavior? The conceptual framework consisted of a classification of extrinsic and intrinsic benefits, and moderating factors, which were recognized on the basis of prior research in the field. The study was conducted by using qualitative research methods. The primary data was collected by interviewing ten representatives from eight companies. The data was analyzed and reported according to predetermined themes. The findings of the study confirm that consumers can be motivated to disclose personal information by offering different types of extrinsic (monetary saving, time saving, self-enhancement, and social adjustment) and intrinsic (novelty, pleasure, and altruism) benefits. However, not all the benefits are equally useful ways to convince the customer to disclose information. Moreover, different factors in the disclosure context can either alleviate or increase the effectiveness of the benefits and the consumers’ motivation to disclose personal information. Such factors include the consumer’s privacy concerns, perceived trust towards the company, the relevancy of the requested information, personalization, website elements (especially security, usability, and aesthetics of a website), and the consumer’s shopping motivation. This study has several contributions. It is essential that companies recognize the most attractive benefits regarding their business and their customers, and that they understand how the disclosure context affects the consumer’s information disclosure behavior. The likelihood of information disclosure can be increased, for example, by offering benefits that meet the consumers’ needs and preferences, improving the relevancy of the asked information, stating the reasons for data collection, creating and maintaining a trustworthy image of the company, and enhancing the quality of the company’s website.

When Love Becomes Hate(?): The Interplay Between Consumer-Brand Relationships and Crisis Situations

This study had three purposes. First, it aimed to re-conceptualize organization-public relationships (OPRs) in public relations and crisis communication. This OPR re-conceptualization helps find out when the OPR buffering effect or the OPR love-becomes-hate effect happens. Second, it aimed to examine how consumer emotions are influenced by OPRs and influence consumer behavioral intentions. Third, it aimed to address the current problematic operationalization of the concept of consumer. Three pilot studies and one main study were conducted. Apple and Whole Foods were the two brands examined. One crisis that undermined the self-defining attributes shared between the brand and its consumers and another crisis that did not were examined for each brand. Almost 500 Apple consumers and 400 Whole Foods consumers provided usable questionnaires. This study had several major findings. First, non-identifying relationship and identifying relationship were different constructs. Moreover, trust, satisfaction, and commitment were not conceptually separate dimensions of OPRs. Second, the non-identifying relationships offered buffering effects by increasing positive attitudes and tempering anger and disappointment. The identifying relationships primarily offered the love-becomes-hate effects by increasing anger and disappointment. Third, if the crisis was relevant to consumers’ daily lives, brand response strategies were less effective at mitigating consumer negative reactions. Moreover, apology-compensation-reminder strategy was more effective compared to no-comment strategy. However, the apology-compensation-reminder strategy was no more effective than other strategies as long as brands compensate to the victims. Identifying relationships increased the effectiveness of response strategies. If the crisis did not undermine the self-defining attributes shared between consumers and brands, the response strategies worked even better. This study contributes to crisis communication research in multiple ways. First, it advances the OPR conceptualization by demonstrating that non-identifying relationship and identifying relationship are different concepts. More importantly, it advances the theory building of OPRs’ influences on crises by finding out when the buffering effect and the love-becomes-hate effect happen. Second, it adds to emotion research by demonstrating that strong OPRs can lead to negative emotions and positive emotions can have negative behavioral consequences on organizations. Third, the precise operationalization of the concept of consumer gives more insights about consumer reactions to crises.

Consumer appraisals of mobile marketing communications

This paper reports on a study that investigates the emotions elicited from appraising SMS-based mobile marketing (m-marketing) communications under three marketing conditions: product consistency, incentives and permission giving. Results from the experimental design show that appraising m-marketing communications elicits both single emotions and mixed emotions; that is, a mixture of positive and negative emotions in the same response. Additionally, the results show that the influence of specific marketing conditions may increase or reduce the intensity of the emotions elicited. This study contributes to marketing practice by examining consumer appraisals of m-marketing communications under different combinations of marketing conditions. The results provide insights into which emotions are likely to be elicited as a result, and how a specific marketing condition might influence their levels of intensity. The study contributes to marketing theory also through combining appraisal theory with Richins (1997) consumption emotion set.

Tourism Destination Preferences: A Longitudinal Analysis of Consumer Decision Sets

There have only been a small number of applications of consumer decision set theory to holiday destination choice, and these studies have tended to rely on a single cross sectional snapshot of research participants’ stated preferences. Very little has been reported on the relationship between stated destination preferences and actual travel, or changes in decision set composition over time. The paper presents a rare longitudinal examination of destination decision sets, in the context of short break holidays by car in Queensland, Australia. Two questionnaires were administered, three months apart. The first identified destination preferences while the second examined actual travel and revisited destination preferences. In relation to the conference theme, there was very little change in consumer preferences towards the competitive set of destinations over the three month period. A key implication for the destination of interest, which, in an attempt to change market perceptions, launched a new brand campaign during the period of the project, is that a long term investment in a consistent brand message will be required to change market perceptions. The results go some way to support the proposition that the positioning of a destination into a consumer’s decision set represents a source of competitive advantage.

M-technology, Consumption and Gambling: A Conceptualisation of Consumer Vulnerability in an M-gambling Marketplace

Technology imbued m-marketing systems influence the consumptive lives of citizens, by facilitating anytime, anywhere business-to-consumer interactions. Business pundits’ enthusiasm towards mobile services (m-services) has been driven by the promise of a marketspace context involving seamless, business-to-consumer interactions that can be simultaneously impulse-driven, highly entertaining and omnipresent. Arguably, gambling too is impulse-driven, exciting and easily accessible. An important question that needs to be addressed is: how the convergence of mobile technology and gambling will impact the millennial consumer. The authors address this question by examining the contextually bounded interactions between internal and external factors that make mobile phone users potentially vulnerable during m-gambling interactions. By examining key themes that describe the convergence of m-technology and gambling, we clarify the experiential nature of m-gambling and its relationship to consumer vulnerability.