nep-mkt New Economics Papers
on Marketing
Issue of 2020‒01‒13
three papers chosen by
Marco Novarese
Università del Piemonte Orientale

  1. ?From Generation Y to Generation Wine? A Best-Worst scaling study of wine attribute importance By Chris Pentz; Markus Filter
  2. Are Generation Y students brand loyal to their university? A case of attitude, commitment and trust on student brand loyalty By Costa Synodinos; Kirty-Lee Sharp
  3. Package Transparency, Opacity, and Windowing: An Investigation of the Canadian Food Industry Practices By Soumaya Cheikhrouhou; Deny Bélisle

  1. By: Chris Pentz (Stellenbosch University); Markus Filter (Stellenbosch University)
    Abstract: South Africa is an emerging market, but it is also the eighth largest wine producer in the world. Despite the country?s established position in the global wine industry and its rich history in wine production, South Africa has a significantly low level of wine consumption per capita compared to other wine-producing countries. Consequently, there is a need for wine producers to explore opportunities and strategies to increase domestic wine consumption. One such opportunity lies in new, unexplored markets, such as the emerging Generation Y consumers. However, these consumers seem to lack knowledge when selecting and purchasing wine mainly because of their inadequate experience with the product. Owing to the complex nature of wine, consumers typically identify and prioritise certain wine attributes. For the purposes of this study, 13 wine attributes were identified from prior research that might influence consumers? wine selection and purchase behaviour, namely, ?taste?, ?price?, ?someone recommended it?, ?medal/award?, ?brand?, ?attractive front label?, ?in-store promotions?, ?grape variety?, ?region of origin?, ?information on back label?, ?read about it?, ?matches my food? and ?information on shelf?. This study investigated the relative importance of these wine attributes to South African Generation Y consumers. A quantitative research design that used self-administered, non-interactive surveys was presented to a student sample at a leading South African university. The relative importance of the wine attributes was measured using the Best-Worst scaling method. The results indicated that ?taste?, ?price?, ?someone recommended it,? ?medal/ award? and ?brand? were deemed the most important wine attributes, whereas the attributes ?information on shelf?, ?matches my food?, ?read about it?, ?information on back label? and ?region of origin? were identified as less important. Based on these findings, it is recommended that wine producers should focus their marketing efforts on providing South African Generation Y consumers with experiences that involve tasting wine; that wine producers should compile appropriate wine pricing strategies; and that they should encourage opinion-sharing of their wines. By gaining a deeper understanding of the wine selection and purchasing behaviour of South African Generation Y consumers and the importance they place on wine attributes the low level of South Africa?s per capita wine consumption can be addressed in a positive way.
    Keywords: Wine attribute importance; Best-Worst scaling; Generation Y; South African wine industry
    JEL: M31
    Date: 2019–10
  2. By: Costa Synodinos (North-West University); Kirty-Lee Sharp (Vaal University of Technology)
    Abstract: Customer loyalty is at the epicentre of any successful business. As such, the ultimate goal for any organisation is to create a loyal customer base. Loyalty occurs when organisations consistently satisfy the needs and wants of their customers. In addition, the more trust a consumer places in a particular organisation, the more loyal they will be to that organisation. Supportive attitudes and relationship commitment are perceived as valuable predeterminants when measuring customer loyalty and predicting future purchasing behaviour of consumers. Similarly, student loyalty is a major goal for a university. Loyal students engage in positive word of mouth marketing and could consider returning to their university to complete their postgraduate studies. This study aimed to determine if Generation Y students display both supportive attitudes towards their current university and if they possess some sort of relationship commitment towards their university. In addition, the study sought to understand the impact with which Generation Y students? trust exhibits towards brand loyalty of their respective universities. A total of 480 self-administered questionnaires were distributed across three higher education institutions in the Gauteng province of South Africa. A variety of statistical techniques were employed to analyse the captured data. These included internal-consistency reliability and validity measures, descriptive statistics and structural equation modelling. The study?s results found Generation Y students? supportive attitudes and their relationship commitment have a direct positive significant influence towards trust in their university. Moreover, the trust that Generation Y students placed into their university has a direct positive influence on student brand loyalty. Based on the commitment-trust theory of relationship marketing, both relationship commitment and trust need to exist for relationships to be successful. The results indicate that relationship commitment and trust are cooperative behaviours that allow both Generation Y students and universities to mutually fulfil their needs. Thus, Generation Y students feel a sense of value, whilst, the university receives customer loyalty in return. The results of this study indicate that universities should take note of a student?s supportive attitudes and relationship commitment. In addition, universities must take students? trust into consideration, as this affects student brand loyalty and ultimately student retention for the institution.
    Keywords: Relationship commitment, attitudes, trust, brand loyalty, Generation Y students, South Africa
    JEL: M31
    Date: 2019–10
  3. By: Soumaya Cheikhrouhou (École de gestion, Université de Sherbrooke); Deny Bélisle (École de gestion, Université de Sherbrooke)
    Abstract: Package often represents the consumers? first contact with the product on the point of purchase (Underwood & Klein, 2002). Besides, consumers exposure to package often continues until its full consumption (Chandon, 2013). Package design elements have been shown to be a critical source of information consumers use to forge expectations and make choices about products and brands (Greenleaf & Raghubir, 2008; Orth & Malkewitz, 2008). While the marketing literature has seen a recent interest in the study of the effect of package design elements on product evaluation (e.g., Koo & Suk, 2016; Lui et al., 2017; Rundh, 2013), research on package transparency has been scarce (Deng and Srinivasan, 2013). However, understanding the use of transparency is key as it corresponds to a strong trend where consumers want to see what they are buying (Schürmann, 2008) and it has been shown to influence the amount of product consumed (Deng & Srinivasan, 2013). This study aims at contributing to the marketing research on structural package design elements, in particular transparency, by investigating the Canadian food industry?s practices. A quantitative content analysis of 1,500 packages belonging to product categories where the use of transparency, opacity, and on-package windows is prevalent has been undertaken. This research offers a comprehensive understanding of the wide array of transparency, opacity and windowing practices adopted by food manufacturers and producers in different contexts. It highlights several future research avenues in terms of understanding the role of package opacity level, shape and location of windows, and substituting or complementing a displayed image on consumer product and brand judgement. From a managerial standpoint, it offers a broad view of the current use of transparency in several industries and underlines the advantages and downsides of the use of this package design element by food producers and manufacturers.
    Keywords: Package design, transparency, opacity, windowing, quantitative content analysis.
    JEL: M31 M30 M00
    Date: 2019–10

This nep-mkt issue is ©2020 by Marco Novarese. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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