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Consider the production of an evolving family of similar products, each having a well-defined life cycle. The fundamental production resources are inherently flexible, i.e., reconfigurable and reprogrammable. Two distinct strategies can be followed in configuring production facilities: (1) focused facilities, where a facility is dedicated to one product at a time, but may be reassigned; and (2) nonfocused facilities, where setup operations permit a variety of products to be produced during a given planning period. When focused facilities are used, which is a common strategy in some electronics companies, products must be assigned to specific facilities. If facilities are not identical, and capacity is limited, then changing production requirements may force reassignment of products from one facility to another. Thus, the product assignment/reassignment decision may have a significant impact on the production capacity required. This paper concentrates on the product assignment/reassignment decision when a pure focused facility strategy is used. This problem is analyzed and a number of insights are developed. Based on this analysis, the problem is reformulated and an optimal solution procedure based on a multi-commodity network flow model is presented and tested for the product assignment/reassignment decision.Keywords:
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Purpose The purpose of this paper is to explore how the product type (hedonic product and utilitarian product) and reward type (hedonic gift and utilitarian gift) influence customer referral likelihood in referral reward program. Design/methodology/approach The authors test the effect of the product type and reward type on referral likelihood through two studies. Study 1 produces a 2 (product type: hedonic product and utilitarian product) × 2 (reward type: hedonic gift and utilitarian gift) factorial design to test H1 , H2 and H3 , that is, the effect of the product type and reward type on referral likelihood and their interaction effect. On the basis of study 1, study 2 will select different subjects, different products and different incentive allocation schemes to test H1 , H2 and H3 again. Findings The results are as follow: first, the product type has significant influences on referral likelihood. Compared with a utilitarian product, customers are more likely to make referrals when consuming a hedonic product. Second, the product type and reward type have significant interactions to referral likelihood. When rewarded a hedonic gift, customers who consumed the hedonic product have great willing to make referrals; however, when rewarded the utilitarian gift, customer who consumed the utilitarian product have great willing to make referrals. Originality/value The authors’ findings contribute to the literature of consumers’ recommendation in the following aspects. First, from the perspective of enterprises which launch referral reward program, the present research demonstrates the product type (hedonic product and utilitarian product) and reward type (hedonic gift and utilitarian gift) influence customer referral likelihood. Previous studies discuss attributes of product that influence consumers’ referral likelihood, such as product sensitivity (Kornish and Li, 2010), product involvement (Zhu et al., 2011), brand strength (Ryu and Feick, 2007) and price (Xiao et al., 2011). However, few studies focus on the hedonic and utilitarian attributes of products and explore their impact on the willingness to recommend. This paper makes a useful supplement to the research gap. Most previous studies simply divide the type of reward into tangible and intangible (Shi and Wojnicki, 2007), cash and coupon (Wang, 2010) or cash and gift (Huang et al., 2013). This paper enriches the research on reward types and refines the types of gifts in a referral reward program. The present research divides the type of reward into hedonic gifts and utilitarian gifts, and applies benefit congruency frameworks (Chandon et al., 2000), attitude theory (Eagly and Chaiken, 1993) and over-justification effect (Deci and Ryan, 1985).
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While there have been numerous attempts over a number of years to describe and analyze various aspects of the industrial buying process, comparatively little has been done to determine the effects of general product‐related factors on the choice of products by buyers. This article examines effects on the product evaluation and choice process of several such factors. Using a group of representative products, the effects of product application, general product type, and certain aspects of the buying environment are determined and analyzed. Implications for industrial buyers and for their product preferences are discussed. The author concludes that the product selection process is affected by product application and product type; subsequently, a general reference framework for the relative importance of product attributes is developed.
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Abstract Given the heterogeneity of European consumers, it is not surprising that they have different perceptions and expectations regarding and understanding the concept of ‘traceability’. Consumers may also perceive traceability differently for different product types. The present study is based upon an analysis of focus groups in 12 countries across Europe. It explains how European consumers understand the traceability of food products as well as their expectations of traceability for different types of food product (meat and honey have been used as examples). Labelling schemes for these two types of products are also examined. The results showed that dissimilarities exist in consumers’ perceptions of traceability in different countries. Some dissimilarities also exist between consumers’ expectations of traceability and the information they require. However, labels are still seen as an important way of communicating with consumers, although the participants claimed that these labels need to be understandable and more easily accessible to facilitate consumer understanding.
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The product presentation videos on E-commerce platforms have a significant influence on consumers' purchase decisions, and enterprises have focused on choosing the type of product presentation videos. Based on the resource matching theory, mental imagery theory and cue utilization theory, this study investigated the influence of product presentation videos type (product appearance video vs. product usage video) on consumers' purchase intention and the moderating effect of product rating (low vs. high). Through three pre-experiments and two formal experiments, the results showed that the product usage video has a stronger effect on consumers' purchase intention more than the product appearance video, which is mediated by perceived diagnosticity and mental imagery. In addition, product rating moderated the influence of product presentation videos type on consumers' purchase intention. The product usage video would improve consumers' purchase intention more than the product appearance video when the product rating is high; however, there is no significant difference in the impact of two types of videos on consumers' purchase intention when the product rating is low. This study supplements the research on product presentation videos and provides a reference for online retailers to select effective product presentation videos.
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Little attention has been attributed to product context in the design of EC environments. Even though extensive marketing research has shown product context to be a major driver of consumer search behavior in the physical world of shopping, most EC websites seem to ignore this. EC sites generally offer the same type of corporate layout, interactive functionality, dialogue system and information depth regardless of the product on sale. This article presents an experimental study with 150 subjects conducted at Humboldt University Berlin (Germany). The study shows how consumers have distinct navigational needs when they search for different product types online. Specifically, we observe how users seek 'deeper' levels of interaction for product categories with higher purchase uncertainty. Equally, we prove that different interactive functionality is needed to address different dimensions of product risk. Consequently, we argue for more product context recognition in EC website design and make some recommendations on how this could be done.
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This study draws on signaling theory to test whether seller and product characteristics impact the use of display-type versus informational-type promotion on eBay. The authors predict that display-type promotion is used by less-experienced sellers who cannot promote on the basis of their own seller ratings. The authors predict that experienced sellers, on the other hand, prefer informational promotion since their high ratings make seller-provided statements more credible. In addition to seller characteristics, the authors predict that product characteristics, such as price and product condition, also impact promotion. It is expected that higher prices drive greater investments in display-type promotions overall, even if such promotion is less effective. Finally, it is hypothesized that the better the condition of the product, the greater the use of informational promotion since this kind of disclosure is especially influential. The hypotheses were tested using a large data set of auction data from eBay and received excellent support. Implications and directions for future research are discussed.
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The objective of this research is to examine the effect of message’s regulatory focus (promotion versus prevention) and product types (hedonic versus utilitarian) on advertising effectiveness, as well as how direct product experience alters these effects. The findings show that, for hedonic products, promotion messages are more persuasive, generate more positive product attitudes, and willingness to pay a higher price than prevention messages. For utilitarian products, prevention messages are more persuasive and generate more positive product attitudes than promotion messages. However, product trial moderates most of these effects. Managerial implications of these results are discussed.
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Abstract The purpose of this paper is to consider attributes that stimulate variety seeking in hedonic and utilitarian product categories and examine the interaction of product category and attribute type on variety‐seeking behaviour. The results of 3 studies indicate that in hedonic product categories, consumers seek more variety in sensory attributes, whereas in utilitarian product categories, they seek more variety in functional attributes. This interaction effect is explained by the fact that the satiation rates of sensory and functional attributes depend on the nature of the product category. In product categories, which are not clearly hedonic or utilitarian, this interaction effect is not evident. The theoretical and practical implications of the findings are discussed.
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This article reports on the influence of product type on the purchasing structure within selected phases of the purchasing process by using regression analysis on data from Greek manufacturing and utility enterprises. Our study examined the influence of two different categories of items, namely product incorporated items and MRO (maintenance, repair and operating) items, on various aspects of the purchasing cycle. The results suggested that parameters of purchasing structure varied considerably between the two product types and that their configuration depended on attributes such as product complexity and environmental uncertainty.
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