Purpose: This paper aims to summarize the results of an empirical project to understand the perceptions of consumers of the future high end products in the USA. This project was a precursor of a larger global project on the topic. Design/methodology/approach: The approach utilizes the consumer insights-driven process, rule-developing experimentation (RDE), introduced by the senior authors and developed in cooperation with Wharton School of Business (University of Pennsylvania). The empirical part was conducted with qualified US consumers (middle- and upper-middle class respondents). Based on a series of in-depth qualitative interviews with global leaders of luxury and premium companies, star designers and thought leaders, five dimensions of high end offering were identified, with each dimension having a unique set of four factors (elements). The second part included a quantitative survey based on RDE (modified conjoint analysis) conducted in the USA with 373 qualified middle- and upper-middle class respondents to discover the driving forces behind their perceptions of high end. Findings: There are four distinct consumer mindsets towards future high end products. The segmentation is based on a disciplined experimentation afforded by RDE and produces a more targeted understanding of the consumer mind. Practical implications: The paper provides insights of what might drive the consumer perception of high end products in the near future. The pattern-based consumer mind-set segmentation creates actionable directions for corporations in answering today's big question "How can brands migrate from being cost-driven commodities to higher margins and profits?" The answer is in the high end. Originality/value: The approach offered here could help designers and brand managers to efficiently create better products that consumers like and perceive as high end. This will result in higher margins and help marketers to differentiate their respective products from the competition.
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This paper describes a study into consumers' reasons for buying socially responsible (SR) products, such as Fair Trade products and organic meat. As opposed to other studies, we use a qualitative approach based on 25 in-depth interviews and include several different products in the research. This leads to several new results, such as: (1) buying SR products is perceived as an imperfect moral duty; (2) low quality of SR products is a dissatisfier, but high quality not a satisfier; (3) the attitude towards SR products is related to the reputation of charitable funds; (4) the demand for SR products is negatively related to the frequency of purchasing SR products; (5) reflection on SR products raises the demand for SR products; (6) consumers that have witnessed the social problems that SR products aim to alleviate purchase more SR products. Finally, we find that the demand for different SR products is correlated: if a consumer buys one SR product, it is more likely that (s)he purchases other SR products as well.
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Assistive Technology (AT) is any technology that supports people with functional difficulties to perform their daily activities with less difficulty and/or obstruction, thus contributing to a more fulfilling life. This refers to people of all ages and to all kinds of functional limitations, either permanent or temporary. Assistive products can be traditional physical products, such as wheelchairs, eyeglasses, hearing aids, or prostheses, but they can also be special input devices, care robots, computers with accessible software, apps for smartphones, home automation solutions, virtual realities, etc. It is essential to understand that AT involves more than just familiar products, and that it also includes knowledge about the personalized selection of appropriate solutions, provisions, and services, as well as the training of all parties involved, the measurement of outcomes and impacts, awareness of ethical issues, etc.
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Wat is de rol van prijs in duurzaam consumentengedrag? ‘Omdat het te duur is’ is een veelgehoord argument wanneer mensen wordt gevraagd waarom ze geen duurzame producten kopen. Maar is dat werkelijk zo, of is dit een makkelijk alibi van mensen om niet hun gedrag te hoeven veranderen? We zijn over het algemeen niet bepaald armlastig in de westerse wereld, dus is het werkelijk een gebrek aan geld, of is er een andere oorzaak van dit gedrag? Om daar een uitspraak over te kunnen doen, hebben we de literatuur onderzocht op de relatie tussen prijs en duurzaamheid. Overall conclusie: een bepaalde groep mensen geeft in onderzoeken aan best bereid te zijn om meer te betalen voor duurzamere oplossingen, tot wel 29%. Maar sociale wenselijkheid speelt daarbij waarschijnlijk een grote rol. Want gezien het nog geringe marktaandeel van duurzame producten is de realiteit weerbarstiger. De meerderheid van de mensen is kennelijk nog niet zodanig overtuigd van de meerwaarde dat ze er ook extra geld voor over hebben. Dit document is opgedeeld in twee secties: 1. sectie 1 beschrijft een analytische beschouwing van de literatuur. Dit onderzoek schetst de ontwikkeling van de artikelen die tot dusverre gepubliceerd zijn over bereidheid van consumenten om een meerprijs te betalen voor duurzame producten; 2. sectie 2 beschrijft een inhoudelijke beschouwing van een selectie van de literatuur: specifiek artikelen die (experimenteel) onderzoek beschrijven naar de willingness to pay voor duurzame producten en diensten.
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Consumers currently place increasing importance on the values that companies represent. Modern values such as transparency, benevolence to society, sustainability and fairness are becoming more relevant, as noted by many major consulting firms among which are Nielsen (2013), the World Federation of Advertisers (2013) and the Boston Consultancy Group (2013). Modern values are grounded in social, political and economic developments and represent the new values of this era. As a consequence, a company’s value to consumers no longer has to lie solely in its products and services. This new, broader scope of value may include the entire business process and organizational culture, ranging from the management’s integrity to values being found in the company’s contributions to society. Although the role of values in human behaviour has been extensively discussed in the psychology literature since the beginning of the 1900s (e.g. Feather 1995; Hofstede 1980; Olson and Maio 2003; Rokeach 1973; Schwartz 2012), limited attention has been dedicated to values in marketing literature. This was the conclusion of a systematic literature review that we conducted on this subject (Voorn et al. 2016). As a follow-up, we organized an online survey (n = 1109) to empirically investigate the role of values in the brand selection process. In this paper, we report on the relationship between values and brand purchase intentions through the concept of value congruence and in relation to several product categories representing services, durables and consumables. Overall, the results confirm the relevance of value congruence as a predictor of brand purchase, in particular in services and durables. Our study shows that companies can benefit from incorporating values into their marketing strategies, especially those values that are congruent with (higher-order) personal goals, rather than more (instrumental) category-specific values. This offers new marketing perspectives, especially for brands. Brands are – by definition – more than just one product or service, which means they can serve as an umbrella for the incorporation and propagation of new values. However, an important question remains for the brand manager: the extent to which values have an advantage over brand personality traits and functional attributes, since investing in values is not only about communication – it means that an organization needs to embody them in the very fibre of its being; otherwise it may be perceived as ‘green washing’, which can undermine brand trust.
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PURPOSE: The aim of this research is to link sustainability strategies with risk management. DESIGN/METHOD: 33 unique cases were used for the data analysis. Using the cases, the researchers built a database to operationalise the theoretical framework. This database contains data on general characteristics of an organisation, strategic characteristics (mission, vision, value proposition, core values from the Balanced Score Card categories, strategic goals), strategy characteristics of the sustainability strategies, the 17 sustainability goals of the UN, risks (strategic, financial, operational) and control measures appropriate to the risks. RESULTS/FINDINGS: The first sub-question: Which risks at a strategic, financial, and operational level differ in organisations that pursue SDG 3 Good health and wellbeing, SDG 8 Decent work and economic growth and/or SDG 12 Responsible consumption and production, or do not pursue sustainability goals? It can be answered that sustainable values lead to different risks at strategic and financial levels, but not on an operational level. The second sub-question: Which risks on a strategic, financial, and operational level differ in organisations that pursue the sustainability strategy (Retain product ownership, Product life extension and/or Design for recycling) or do not pursue a sustainability strategy? It can be answered in a similar way as the first research question: that apparently sustainable strategies lead to different risks at strategic and financial levels, but not on an operational level. Operational risks were found but did not change in case of the sustainable strategy. ORIGINALITY/VALUE: Researchers have investigated whether pursuing the sustainability strategy (part 1) or contributing to the achievement of SDGs (part 2) by an organisation causes a change in strategic, financial and/or operational risks. Patterns were sought, not the magnitude of a change, because of the number of cases examined.
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Financial constraints and risk taking are two well-established determinants of firm performance, however, no research analyzes how these variables are connected in the context of a high risk environment. Using data from microfinance clients in Tanzania, we derive a novel financial constraints measure and incorporate a psychometric risk taking scale. Results confirm the importance of access to finance and risk attitudes for business development. Also, we provide preliminary evidence for an interaction between financial constraints and risk taking. Financial constraints “throw sand in the wheels” and protect risk taking entrepreneurs from the negative impact of risk taking on microenterprise performance.
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