Consumer Choice and Market Outcomes Under Ambiguity in Product Quality

Yoo, Onesun Steve; Sarin, Rakesh K.

doi:10.1287/mksc.2017.1069

Cited by 12 publications

(10 citation statements)

References 95 publications

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“…Leisure activities are secondary for them in their destination selection (Lee and Fernando, 2015). According to Yoo and Sarin (2018), pre-disposition such as past experience, positive association and inertia are other factors that guide consumers in choice making. Pre-disposing factors also play an important role in destination selection by the Middle-Eastern medical tourists.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Ambiguity is a situation in decision-making where the probability distribution is unknown, whereas in condition of risk probability distribution is known (Becker and Brownson, 1964; Huettel et al , 2006). According to Yoo and Sarin (2018), when there is an ambiguity related to the quality of a product consumers make choice on the basis of initial preference based on affect, association, past experience and familiarity.…”

Section: Literature Reviewmentioning

confidence: 99%

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Antecedents of perceived beneficial destination image: a study on Middle-Eastern medical tourists visit Iran

Chelliah

Khan

Kashi

2020

IJPHM

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Purpose This study aims to investigate the relationship between travel motivation, perceived risks, travel constraints and perceived beneficial destination image that leads to visit intention among Middle-Eastern medical tourists. Some previous studies have explained these factors in detail, however, studies that explore the relationship between these factors in the Iranian context is scarce. Moreover, there are relatively very few studies, which focused on actual medical tourists in empirical investigation, therefore, there is still a lack of clarity in the literature regarding travel behavior and travel decision-making of medical tourists. Design/methodology/approach A quantitative study was performed on 161 Middle-Eastern medical tourists who visited Iran in early months of 2018. Purposive sampling method was used to collect the data from two private hospitals. Structural equation modeling with partial least square (PLS) approach was used and PLS 3.2.8 data analysis tool was used to test the hypotheses. Findings The data analysis results have found that perceived destination image was the strongest predictor of visit intention among medical tourists. The results have also found a positive effect of travel motivation and negative effect of perceived travel risks on perceived beneficial destination image. Originality/value This study aims to enrich the body of knowledge by investigating the relationship between the factors, which have important roles in travel behavior and decision-making of medical tourists. The study also bridges the gap in the literature by explaining the behavior of actual medical tourists. The findings of the study provide the much needed insight on the behavioral intention of medical tourists, which will help the service providers and policymakers to reform their strategies and policies accordingly.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Antecedents of perceived beneficial destination image: a study on Middle-Eastern medical tourists visit Iran

Chelliah

Khan

Kashi

2020

IJPHM

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“…Even before consumers buy daily consumption products, some are looking for and evaluating the widest range of information that points to the quality of the purchased products [16], [17]. And after studying, they decide to buy.…”

Section: Resultsmentioning

confidence: 99%

Consumer Behaviour in Conditions of Dual Quality of Daily Consumption Goods in Slovakia

Bartková¹,

Sramkova²,

Veselovská³

2019

Proceedings of the International Conference on Economics, Management and Technology in Enterprises 2019 (EMT 2019)

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The problem of dual quality of daily consumption goods in the countries of the European Union has been known for a while. Well-known manufacturers do not offer their products in the same composition and quality in all countries of the join European market but produce two variants. The first variant for Western countries includes other basic and auxiliary ingredients, other proportions of basic raw materials, other active ingredients, as the second variant designated for the countries of Central and Eastern Europe. Research into this problem has been conducted mainly in the Czech Republic. However, several specific product tests have already been conducted in Slovakia, confirming that the composition of products purchased in Western countries (Austria and Germany in particular) is different from products purchased in the Slovak Republic, but the research of consumers' opinions is lacking. This paper addresses the issue whether consumers are aware of the dual quality problem of daily consumption goods, whether they are consider the information they receive and how their consumer behaviour changes accordingly.

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“…In particular, the consumer's personal equilibriums or optimal decisions may change after quality uncertainty is incorporated in the model and the consumer reference point becomes endogenous (Biyalogorsky & Koenigsberg, 2014). Consumers are usually imperfectly informed and thus are uncertain about product attribute levels such as quality (Zhao, Zhao, & Helsen, 2011; Yoo & Sarin, 2018). This is particularly true in the case of product recalls.…”

Section: A Behavioral Model Of Quality Recallmentioning

confidence: 99%

“…An important factor behind consumers’ reactions is the uncertainty associated with recalls and evaluations of products. Consumers may lack precise knowledge or information about product quality, which affects consumers’ purchase decisions (Leffler, 1982; Yoo & Sarin, 2018). Consumer purchase decision is therefore developed from consumers’ expectations of quality, rather than the actual quality, and their psychological gain‐loss utility, both of which are dependent on the consumer reference levels affected by product recalls.…”

Section: Introductionmentioning

confidence: 99%

Quality Reference in Consumer Product Recalls

Dong

Song

et al. 2020

Decision Sciences

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Product recalls are often associated with quality failures and may negatively affect customer satisfaction and firm performance. Motivated by counterintuitive anecdotal evidence on the positive relationship between recalls and sales, we develop an endogenous consumer reference model with stochastic quality levels and consumer valuation of gain-loss utility to examine the consumer's willingness to buy in the event of a recall. A consumer makes purchasing decisions by evaluating gain-loss values against a quality reference point. The theory of endogenous reference points incorporates the consumer's expectations of buying into forming a reference point based on the This article is protected by copyright. All rights reserved. 2 consumer's beliefs about quality outcomes (Kőszegi & Rabin, 2006. The uncertainty of the consumer's quality expectations combined with the consumer's personal equilibrium makes the reference point endogenous, generating predictions different from those under conventional exogenous reference point and in the case of deterministic quality expectations. We find that a product recall may revise the consumer's belief toward a more negative quality outcome, and therefore a lower reference point, when quality expectations are uncertain and the consumer's reference point is endogenous. The consumer expects a greater gain from buying the product against the lower reference point, leading to a higher willingness to buy. In addition, we find that supply chain offshoring, which may be associated with consumer evaluation of gain-loss utility or consumer loss aversion, may complicate the effect of recalls on a consumer's willingness to buy. These results suggest that firms should consider consumer preferences under uncertainty when designing and developing their global supply chain strategies in quality management.

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Consumer Choice and Market Outcomes Under Ambiguity in Product Quality

Cited by 12 publications

References 95 publications

Antecedents of perceived beneficial destination image: a study on Middle-Eastern medical tourists visit Iran

Antecedents of perceived beneficial destination image: a study on Middle-Eastern medical tourists visit Iran

Consumer Behaviour in Conditions of Dual Quality of Daily Consumption Goods in Slovakia

Quality Reference in Consumer Product Recalls

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