Price-related consequences of the country-of-origin (COO) cue have received limited attention in extant literature. In this study, the authors draw from equity theory and cue utilization theory and investigate (1) whether a brand's COO affects a consumer's willingness to pay and (2) the extent to which the consumer's familiarity with the brand moderates this relationship. The results of three complementary experimental studies reveal that COO indeed has a positive impact on willingness to pay. Furthermore, the authors find a negative moderating influence of brand familiarity on the COO effect in a high-involvement setting but not in a low-involvement setting. The authors discuss the theoretical and managerial implications of the findings, and they identify directions for further research.
Companies increasingly employ cause-related marketing to enhance customer goodwill and improve their image. However, because these efforts have major implications for pricing strategy and firm profitability, understanding the relationship between the company's donation amount and customers’ willingness to pay is important. In particular, little is known about the moderating effects that influence this relationship or their underlying mechanisms. Study 1 confirms that two types of customer predispositions moderate the link between donation amount and willingness to pay: donation-related and cause-related predispositions. Three additional studies focus on the negative moderating effect of company–cause fit and provide insights into the underlying moderation process. Specifically, the motives customers attribute to the company mediate the moderating impact of fit on the donation amount–WTP link (Study 2), which occurs particularly in cases of utilitarian (Study 3) and privately consumed products (Study 4).
A key benefit of private labels for retailers is their potential to increase customers’ store loyalty. However, previous research has not examined how this relationship varies across customers and situations. This study contributes to knowledge in this area by developing a conceptual framework that guides the investigation of the role of four moderating factors in strengthening the private label brand share–store loyalty link: (1) customers’ price-oriented behavior, (2) degree of commoditization of the product category, (3) product category involvement, and (4) the retailer's price positioning. This article draws on a large-scale empirical study using a household panel and questionnaire data for 35 diverse fast-moving consumer goods product categories. The results of this study show that the relationship between private label share and store loyalty is more complex than previous research has suggested. Specifically, the private label brand share–store loyalty link is stronger for customers with high price-oriented behavior, retailers with a low price positioning, and product categories that are less commoditized and have relatively higher involvement.
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