Back to Basics: consumer-centric marketing or target

Transcription

Back to Basics:
consumer-centric marketing or
target-centric marketing
Pedro Ferreira & André Vieira (eds)
International Conference on Marketing & Consumer Behaviour – 2013
Back to Basics: consumer-centric marketing or target-centric marketing
Porto, 16-17 May 2013
Title: Back to Basics: consumer-centric marketing or target-centric marketing
1st Edition: July, 2013
Editors: Pedro Ferreira, André Vieira
Edition and Property: Edições IPAM
Av. Boavista, 1102, 1ºDto
4000 - 113 Porto, Portugal
Design: André Vieira
ISBN: 978-989-98442-4-7
All rights reserved
The contents of the papers are the sole responsibility of their respective authors
ORGANIZING COMMITTEE MEMBERS
Conference Manager
Pedro Ferreira
Themes Supervisor
Irina Saur-Amaral
Submissions Coordinator
André Vieira
Conference Secretariat Supervisor
Diana Barradas
SCIENTIFIC COMMITTEE
Name
Affiliation
Angel Herrero Crespo
Carlos Melo Brito
Cláudia Simões
Daniel Sá
Elisa Alen González
Elizabeth Real
Ferrão Filipe
Helena Alves
João Leitão
Luísa Agante
Maria José Silva
Maria Teresa Heath
Miguel Martin D’Ávila
Osmud Rahman
Paula Vicente
Raquel Reis
Vanessa Apaolaza Ibáñez
Universidad de Cantabria, Spain
Universidade do Porto, Portugal
UM, Portugal
IPAM – The Marketing School, Portugal
Universidade de Vigo, Spain
Universidade Lusíada de VNF, Portugal
IPAM – The Marketing School, Portugal
UBI, Portugal
IST, Portugal
Universidade Nova de Lisboa, Portugal
UBI, Portugal
University of Nottingham, UK
Universidad Complutense de Madrid, Spain
School of Fashion, Ryerson University, Canada
ISCTE, Portugal
Universidade Lusíada de VNF, Portugal
Universidad del País Vasco, Spain
REVIEWERS
Name
Affiliation
Adriana Brambilla
Adrienne Steffen
Alicia Blanco
Angel Herrero Crespo
Aruna Mesquita e Noronha
Bruno Sousa
Carmen Marques
Cigdem Sahin
Cláudia Carvalho
Cláudia Simões
Conceição Santos
Daniel Sá
Danilo de Oliveira Sampaio
Elídio Vanzella
Elisa Alen González
Elizabeth Real
Emine Özen OKAT ÖZDEM
Helena Alves
Ilham Uludag
Inês Veiga Pereira
Irina Saur-Amaral
Isabell Koinig
Ivonne Serna
João Leitão
Jolanta Tkaczyk
Jorge Marques
Kalender Özcan ATILGAN
Luísa Agante
Maria Fátima Salgueiro
Marek Prymon
Margarida Cardoso
Maria José Silva
Maria Puelles
Mark Ng
Martín Dávila
Nagy Katalin
UFPB-Brasil
Hochschule für Internationales Management Heidelberg
Universidade Rey Juan Carlos
Universidad de Cantabria
S.S.Dempo College of Commerce and Economics
Universidade do Minho / IPCA
Universidade de Aveiro
Okan University
Universidade Portucalense
Universidade do Minho
ISCTE-IUL
IPAM - The Marketing School
Universidade Federal de Juiz de Fora/UFJF/Brasil
ESTÁCIO E ENSINE
Universidade de Vigo
Universidade Lusíada
Ege University Faculty of Communication
Universidade da Beira Interior
Yalova University
ISCAP
Alpen-Adria University of Klagenfurt
Ryerson University
Instituto Superior Técnico
Akademia Leona Koźmińskiego
Faculdade de Economia da Universidade de Coimbra
University of Mersin
Universidade Nova de Lisboa
ISCTE-IUL
University of Economics, Wrocław
ISCTE-IUL
Universidade da Beira Interior
Universidade Complutense
Hong Kong Shue Yan University
University of Miskolc, Faculty of Economics
Name
Affiliation
Osmud Rahman
Özgür Atilgan
Paula Odete
Paula Vicente
Pedro Ferreira
Pedro Mendes
Peter Atorough
Raquel Meneses
Raquel Reis
Ricardo Correia
Rosa Conde
Rui Pascoal
Sally McKechnie
Sandra Filipe
Sara Neves
Serap ÇABUK
Sérgio Dominique
Silvia Faria
Susana Marques
Susana Romero
Teresa Pereira Heath
Ugur Bakir
Vanessa Apaolaza Ibáñez
Verónica Rosendo
School of Fashion, Ryerson University
Istanbul Kultur University
Instituto Politécnico de Bragança
ISCTE-IUL
Robert Gordon University Aberdeen
Universidade do Porto (Faculdade de Economia)
Universidade Lusíada de VNF
Instituto Politécnico de Bragança
Faculdade de Economia da Universidade de Coimbra
Nottingham University Business School
Universidade de Aveiro
Faculdade de Economia da UP
University of Cukurova
IPCA
ISAG - Instituto Superior de Administração e Gestão
Universidade Rey Juan Carlos
Nottingham University Business School
Ege Üniversitesi
Universidad del País Vasco
Colégio de Estudos Financeiros
Back to Basics:
consumer-centric marketing or target-centric marketing
IPAM – The Marketing School
Porto
16-17 May 2013
CONFERENCE PROCEEDINGS
Back to Basics:
consumer-centric marketing or target-centric marketing
Groups of consumers have been the main focus of marketing activity. As an example, the basic idea behind
segmentation, one of the most important marketing processes, is that consumers are not all alike. They have
different characteristics and lifestyles, which calls for the need to group them (and the market they
represent for a respective good) in homogeneous segments so that marketing actions can be better targeted
and obtain more effective results. We may call this type of marketing, target-centric marketing.
More recently there has been a growing concern with the consumer as an individual. Expressions such as
“personalization”, “relationship marketing”, and “co-creation” among others have gained considerable
attention from researchers and practitioners. The assumption that “consumers are not alike” takes a step
further and consumers are seen as human beings with very specific needs and desires, almost unique or
unrepeatable. Each consumer should feel that the marketing action targeted to reach him/her was designed
specifically for him/her. This may be called consumer-centric marketing.
These two approaches have significant (and different) impacts on marketing practices and marketing
management.
In target-centric marketing, approaching consumers as a “market” means that companies need to look for
characteristics that group consumers and try to know them very well, as a group. In this context, operational
marketing tasks are directed to an “anonymous” mass, although a targeted one.
In consumer-centric marketing, seeing consumers as unique human beings, whose specific needs and desires
need to be fulfilled, demands for a different, more “surgical” approach, even in more operational marketing
tasks.
Although the latter is gaining supporters, the operational support is much more demanding in terms of
processes, human and even financial resources, leaving it difficult for companies to being capable of
implementing such a marketing philosophy.
This duality was the main focus of our conference as it rises very important questions still unanswered that
we invited participants to address.
Pedro Ferreira & André Vieira (Editors)
Summary
SESSION 1 ........................................................................................................................................................................................................ 11
M ODELING BRAND EQUITY IN RETAIL BANKING THROUGH COGNITION AND EMOTION...................................................................................12
SOME ASPECTS OF I NTEGRATED M ARKETING COMMUNICATIONS IN BUILDING BRAND EQUITY...................................................................24
PERCEPTION OF SOURCES OF BRAND VALUE TAP PORTUGAL BY THE PERSPECTIVE OF ITS USERS ...............................................................................30
SESSION 2 ........................................................................................................................................................................................................ 43
USING THE EYE TRACKING FOR ANALYSIS OF PREFERENCE FOR VEHICLES......................................................................................................44
ANALYSIS OF THE USAGE AND ATTITUDES OF PAYMENT CARDS USERS IN BOSNIA AND HERZEGOVINA.........................................................55
COMÉRCIO ELETRÔNICO: PERFIL DO CONSUMIDOR DE BELO HORIZONTE/BRASIL QUE REALIZA COMPRAS ONLINE.....................................68
THE EFFECTS OF REVENUE MANAGEMENT STRATEGIES IN CONSUMERS BEHAVIOUR .....................................................................................79
SESSION 3 ........................................................................................................................................................................................................ 89
INTENT TO PURCHASE AND CONSUMPTION OF O RGANIC FOOD IN BRAZIL....................................................................................................90
RECENT TRENDS IN CONSUMER BEHAVIOR CONCERNING FOODS WITH HEALTH BENEFITS IN RUSSIA .................................................... 104
THE IMPORTANCE OF COUNTRY OF O RIGIN (COO) ON CONSUMERS PREFERENCE: STUDY ON PACKAGED BUTTER IN THE FOOD M ARKET OF
AZERBAIJAN .................................................................................................................................................................................................. 115
SESSION 4 ..................................................................................................................................................................................................... 125
D ETERMINANTS FOR PURCHASES OF AGRICULTURAL PESTICIDES: A STUDY ON THE BUYING BEHAVIOR OF RURAL PRODUCER OF COFFEE IN
BRAZIL .......................................................................................................................................................................................................... 126
M OBILE PHONE SURVEYS TO MEASURE CONSUMER BEHAVIOR: EFFECTS ON DATA QUALITY ...................................................................... 140
COMPETING RESEARCH M ETHODS: WHAT ’S BEHIND IT ? ............................................................................................................................ 147
SESSION 5 ..................................................................................................................................................................................................... 157
M ARKETING IN PUBLIC SERVICES: THE CITIZEN SERVICE POINTS IN PORTUGAL....................................................................................... 158
AVALIAÇÃO DA Q UALIDADE DOS SERVIÇOS EM UMA O RGANIZAÇÃO PÚBLICA BRASILEIRA........................................................................ 170
TERRITORIAL MARKETING : A KEY CONCEPT FOR THE PLANNING AND MANAGEMENT OF CITIES ................................................................ 181
SESSION 6 ..................................................................................................................................................................................................... 193
EVALUATING THE USE OF AVATARS AS SOCIABILITY FACTOR IN E-COMMERCE........................................................................................... 194
INFLUENCES OF SOCIAL MEDIA MARKETING ON PRE-ADULT CONSUMERS.................................................................................................... 208
CONSUMERS’ MOTIVATIONS AND ATTITUDE TOWARD THE USE OF SOCIAL MEDIA MARKETING IN HONG KONG......................................... 220
SESSION 7 ..................................................................................................................................................................................................... 232
M ODELING ELECTRONIC AND TOTAL COMMERCE BY INNOVATION DIFFUSION GROWTH MODELS............................................................... 233
INNOVATION, DYNAMIC CAPABILITIES AND PERFORMANCE IN EXPORT MARKETS....................................................................................... 240
AN A NALYSIS OF THE D ECISION STRUCTURE FOR FOOD INNOVATION ON THE BASIS OF CONSUMER AGE................................................. 255
M ARKETING EVALUATION APPROACH IN THE HUNGARIAN MIDDLE-SIZED AND LARGE COMPANIES........................................................... 269
SESSION 8 ..................................................................................................................................................................................................... 283
SOCIAL RESPONSIBILITY CAMPAIGNS AND CONSUMER-CENTRIC M ARKETING, ARE THEY IN COHESION? THE PRACTICES OF TOP TEN
O RGANIZATIONS IN TURKEY......................................................................................................................................................................... 284
A MULTI -STAGE STUDY TO MEASURE CUSTOMER PERCEPTIONS OF CSR ..................................................................................................... 296
ROLE OF PRICE OFFER FAIRNESS IN WILLINGNESS TO PAY FOR ENVIRONMENTALLY FRIENDLY PRODUCTS ................................................ 308
BENEFITS AND MOTIVATIONS FOR COMPANIES TO IMPLEMENT SOCIALLY RESPONSIBLE PRACTICES.......................................................... 317
SESSION 9 ..................................................................................................................................................................................................... 326
UNDERSTANDING CROSS-BORDER TOURIST REGIONS: A PRELIMINARY APPROACH TO THE CONSUMER PERSPECTIVE ............................... 327
TERRORISM AND INTERNATIONAL TOURISTS .............................................................................................................................................. 334
THE CHOICE OF THE UNIVERSITY ABROAD: A CONCEPTUAL M ODEL.......................................................................................................... 342
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THE IMPACT OF LOW COST AIRLINES ON TOURISM DEVELOPMENT ............................................................................................................ 352
SESSION 10 .................................................................................................................................................................................................. 361
THE ELDERLY GO THE GYM: A LOOK AT MARKETING .................................................................................................................................... 362
THE "M ADE IN PORTUGAL" CONSUMPTION AND COUNTRY-O F-O RIGIN (C.O.O.) PERCEPTION IN THE CONTEXT OF CRISIS AND AUSTERITY371
CUSTOMER RESPONSE TO M ESSAGE FRAMING IN CAUSE RELATED M ARKETING ....................................................................................... 394
SESSION 11 .................................................................................................................................................................................................. 404
O QUE TEM SE FALADO POR AÍ SOBRE MARKETING INTERNO? UM ESTUDO SOBRE A PRODUÇÃO BRASILEIRA NA ÁREA.............................. 405
CONSUMER BEHAVIOUR, CONSUMPTION AND SYMBOLISM: A THEORETICAL DEVELOPMENT ..................................................................... 419
SOCIAL SUPPORT EXPECTATIONS FROM HEALTH CARE SYSTEMS- ANTECEDENTS AND EMOTIONS........................................................... 430
SESSION 12 .................................................................................................................................................................................................. 439
REVITALIZATION OF OUTSIDE COMMERCIAL AREAS AS STRATEGY TO ATTRACT CONSUMERS AND GET COMPETITIVENESS ........................ 440
THE APPLICATION OF M ARKET BASKET ANALYSIS TO A FASHION RETAILER............................................................................................ 449
CONSUMER BEHAVIOR IN RETAIL: ONLINE AND OFFLINE – WHAT IS THE FUTURE? .................................................................................... 458
SESSION 13 .................................................................................................................................................................................................. 475
THE LEVEL OF TECHNOLOGY ON SOCIAL CUSTOMER RELATIONSHIP M ANAGEMENT.................................................................................. 476
HOW O NLINE FASHION VIDEOS AFFECT CONSUMERS’ PERCEPTION OF BRANDS – EYE TRACKING EXPLORATORY STUDY ...................... 490
THE INFLUENCE OF EWOM GENERATED BY THE REFERENCE GROUPS ON FACEBOOK, IN PORTUGAL........................................................ 500
SESSION 14 .................................................................................................................................................................................................. 511
ATRIBUTOS INFLUENCIADORES DA ESCOLHA POR VEÍCULOS: ASPECTOS EXPERIENCIAIS E SIMBÓLICOS ..................................................... 512
THE O THER CUSTOMER’S PRESENCE IN THE SHOPPING EXPERIENCE: A CONCEPTUAL APPROACH .......................................................... 524
EXPERIENCE MARKETING AND HOSPITALITY INDUSTRY: SOCIAL MEDIA AS A TOOL TO ENHANCE CUSTOMER EXPERIENCE........................ 535
SESSION 15 .................................................................................................................................................................................................. 543
D RIVERS OF INNOVATION UNDER TURBULENT TIMES IN THE HOTEL INDUSTRY.......................................................................................... 544
INDIVIDUAL AND SOCIAL M ARKETING IN CULTURAL ROUTES O PERATION................................................................................................. 561
HOW TO M EASURE BRAND PERSONALITY OF A NATURE-BASED TOURIST D ESTINATION ......................................................................... 573
SERVICE Q UALITY M EASUREMENT IN THERMAL SPAS’ TOURISM............................................................................................................... 581
SESSION 16 .................................................................................................................................................................................................. 593
A IMPORTÂNCIA RELATIVA DA EMOÇÃO E DA RAZÃO NO PROCESSO DE TOMADA DE DECISÃO DO CONSUMIDOR......................................... 594
HEDONIC CONSUMPTION AND D EPRESSED M OOD: HOW D OES D EPRESSION INFLUENCE CONSUMER BEHAVIOR? .................................. 608
M AIN D RIVERS FOR PURCHASE D ECISION IN THE PHARMACEUTICAL M ARKET FOR M ANDATORY PRESCRIPTION D RUGS ....................... 616
THE INFLUENCE OF ETHNOCENTRICITY IN PURCHASE BEHAVIOR AND ETHNOCENTRIC ATTITUDES ........................................................... 632
SESSION 17 .................................................................................................................................................................................................. 639
RECEPTIVITY TO ADVERTISING IN SOCIAL NETWORKS: AN EMPIRICAL REPLICATION WITH PORTUGUESE USERS....................................... 640
A STUDY OF FASHION M OBILE M ARKETING FROM THE USERS’ PERSPECTIVE ........................................................................................... 651
INTERNET AND CONSUMER EMPOWERMENT : THE ROLE OF DECISION AIDS AND SOCIAL MEDIA ................................................................. 663
SESSION 18 .................................................................................................................................................................................................. 674
STANDARDIZATION VS. LOCALIZATION OF PHARMACEUTICAL ADS: EVIDENCE FROM GERMANY/AUSTRIA AND THE UNITED STATES .... 675
LIMITS TO TRANSPARENCY IN CORPORATE COMMUNICATION: A REFLECTION ON NEED TO EMBRACE SACRED IN SECULAR SPACE OF BSCHOOLS ....................................................................................................................................................................................................... 691
LOCATION BASED SALES PROMOTION STRATEGIES..................................................................................................................................... 697
SEX AND THE CITY AND BRANDS. AN EXPLORATORY STUDY OF THE EFFECTS OF PRODUCT PLACEMENT IN YOUNG PORTUGUESE VIEWERS709
SESSION 19 .................................................................................................................................................................................................. 721
M ARKETING STRATEGY AND THE FLOWERS TRADE WITH PORTUGAL........................................................................................................ 722
THE MARKETING PLAN IN THE WINE PRODUCING COMPANIES IN PORTUGAL.............................................................................................. 734
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INFLUENCIA DE LAS O RIENTACIONES DE LA EMPRESA EN EL D ESEMPEÑO DEL VENDEDOR DE PRODUCTOS FINANCIEROS ...................... 745
D EVELOING A M ODEL OF SUPERIOR M ARKETING STRATEGY TO SUSTAINED COMPETITIVENESS AND BUSINESS SUCCESS ...................... 756
SESSION 20 .................................................................................................................................................................................................. 772
COSTUMER’S VIEWS ON FOOD SAFETY IN FOOD SERVICES: A BRAZILIAN STUDY.......................................................................................... 773
THE EFFECT OF SERVICE CONTEXT IN CONSUMER RELATIONSHIP PRONENESS AND BEHAVIOR............................................................... 785
THE ROLE OF O PERATIONS M ANAGEMENT AND M ARKETING IN THE PLANNING OF VENDING M ACHINES ............................................... 795
SESSION 21 .................................................................................................................................................................................................. 803
THE EFFECT OF SERVICESCAPE ON CUSTOMER PERCEIVED Q UALITY, SATISFACTION AND D ESIRE TO RETURN TO A SPORTS SERVICE: THE
ESTÁDIO DO D RAGÃO (D RAGON STADIUM) CASE........................................................................................................................................ 804
A INFLUÊNCIA DO PATROCÍNIO NO COMPORTAMENTO DOS ADEPTOS: O CASO DO FUTEBOL PROFISSIONAL PORTUGUÊS........................ 817
THE DILLEMAS OF STARTUPS IN THE CREATIVE INDUSTRIES- TENSION BETWEEN ARTISTIC AND MARKET GOALS..................................... 839
10
Session 1
11
Modeling brand equity in retail banking
through cognition and emotion
Brand Equity; Brand Knowledge; Cognition; Emotions; Customer Satisfaction; Customer Loyalty.
Meena Rambocas, The University of the West Indies, mrambocas@yahoo.com
Vishnu Kirpalani, The University of the West Indies, mkirpalan@gmail.com
Errol Simms, The University of the West Indies, Errol.Simms@sta.uwi.edu
Abstract
Objectives: Through brand equity, brand owners can uplift public perceptions of products and services regarded as
commodities in saturated markets. But, how can brand equity be created? There is already an established relationship
between brand equity and customer knowledge, but to date, very little is known about how different aspects of knowledge
contribute to brand equity. This study addressed this theoretical deficit by investigating the influence of two aspects on
knowledge (thought processes-cognition, and feelings-emotion) on brand equity. Specifically, the study investigated: what
are the determinants of brand equity and how important are these determinants in explaining brand equity?
Methodology: Data were collected from two hundred and eighty-three (283) retail banking customers in Trinidad and
Tobago (T&T) through personally administered structured questionnaires and analyzed using Confirmatory Factor
Analysis (CFA) and Structural Equation Modeling (SEM).
Conclusions: The findings revealed that brand equity is a multidimensional construct created through a series of
interrelated relationships between cognitive and emotional knowledge structures. Cognitive knowledge through customer
loyalty and customer satisfaction mediated the relationships between brand equity and emotional aspects of knowledge.
The study concluded with a discussion on the impact of these findings on retail banks and other service providers.
Limitations: Our data collection efforts were limited to one country in one service sector and investigated only two
dimensions of customer knowledge. Future research can consider extending this research context to other countri es and
service sectors as well as investigating the moderating impact of customer characteristics.
1. Introduction
Retail banking service is a distinctive service category in Trinidad and Tobago (T&T) primarily because of the size and
history. It is the largest service sector in the T&T economy accounting for nearly forty percent (40%) of total financial
assets (CSO, 2010). It contributes fourteen percent (14%) to T&T's Gross Domestic Product and employs approximately
eight percent (8%) of the T&T labor force. The sector operations have been stable with most services revolving on
traditional loans, deposits, and short-term credit facilities. In terms of internet banking, most banks offer the opportunity
to conduct approved transactions over the internet, but the consumer public makes very little use of this facility (Robinson
and Moore, 2010; Rambocas and Arjoon, 2012). The facility is most appealing to higher educated, younger customers for
basic services such as checking balances (Robinson and Moore, 2010). Customers mainly rely on personal interface to
conduct most of their transactions. However, the market is now facing challenges ranging from regulations to consumers
lifestyle. Additionally, the market is also changing structurally with recent acquisitions, and diminishing distinction with
other financial providers (insurance companies and credit unions). These changes coupled with the challenges from the
2008 financial crisis are propelling banks to find innovative ways of communicating with customers, b uild trust, and
maintain consumer confidence. Such changes can create new opportunities for banks but it can also lead to a threat of
commoditization. Successful branding can reduce this threat. The interest in branding is not only limited to banking but
extends to every facet of commerce, from software firms like Google to fast moving consumer goods like Nestle. However,
for services, branding plays a special role because it adds a face to an invisible purchase. Strong service brands create
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favorable associations, reduce consumption risks, stimulate confidence, build loyalty, and generate trust. The value
customers assign to brands refers to brand equity (Keller, 1993). Brand equity exists when consumers prefer specific
brands and pay more for them just because of the name appeal.
However, while the consequences of brand equity are well established, there is little consensus on how this marketing
phenomenon is created. Some academics argue that brand equity developed through a combination of cognitive elements
such as, awareness, association, loyalty, and perceived quality (Aaker, 1991; Keller, 1993; Yoo and Donthu, 2001). Others
look at the social and personal elements of attachment and trustworthiness (Belen del Río, Vázquez, and Iglesias, 2001); as
well as brand image and brand attitude (Kim and Kim 2005). Nevertheless, despite the variation, the crucial role of brand
knowledge is common to all arguments (Keller, 1993). This study builds on this academic consensus and examines the
concept of brand equity through the lenses of consumer behavior and psychology theories. It decomposed consumer
brand knowledge into a dichotomous construct driven by ongoing cognitive (intelligent and rational) and emotional
(subjective) evaluation of marketing stimuli. There is a strong suspicion that both cognitive and emotional aspects play
different roles in predicting and explaining brand equity, but to date the nature of this relationship remains under
explored. This study addresses this theoretical deficit by investigating what are the determinants of brand equity, and how
important are these determinants in explaining and predicting brand equity? Specifically, the study examines the impact of
six specific aspects of cognition and emotion (brand awareness, perceived service quality, customer satisfaction, customer
loyalty, service experience and brand affinity) on brand equity.
The structure of our paper follows four main sections. Firstly, we examined the theoretical relationship between consumer
brand knowledge and brand equity. Secondly, we presented the conceptual model that guided our research design and our
research hypotheses. Thirdly, we presented the methodology and data analysis techniques and finally a discussion on the
implications of our findings and make recommendations for future research initiatives.
2. Literature Review
Branding is a widely researched topic in marketing (Berry, 2000). However, recent calls for a more integrative perspective
on the psychology of successful brands have brought the concept back to the forefront (Schmitt, 2012). This study
conceptualizes successful brands as the favorable association customers assign to a brand, referred to as brand equity
(Keller, 1993). Specifically, brand equity is the value a brand name brings to all stakeholders including producers, retailers,
and consumers. It exists when consumers gravitate towards a specific brand, or are willingly to pay more for the same
level of quality just because of the attractiveness of the name. The concept of brand equity draws on multiple constructs,
but common to all definitions is the fundamental value-added to a firm, or value-added to the customer (Aaker, 1991;
Simon and Sullivan, 1993; Keller, 1993; Kim et al., 2003). To the firm, brand equity presents a financial opportunity based
on the incremental cash flow or revenue over unbranded products (Simon and Sullivan, 1993). To the customer, brand
equity creates benefit by positive differential responses (Aaker, 1991; Keller 1993; Kim et al., 2003).
This study defines brand equity from a customer perspective. Our study builds on the premise that the power of a brand
lies on what customers learn, feel, see and hear about brands overtime. Our interest in brand equity from a customer
perspective is twofold. Firstly, motivated by the perspectives of Lasser et al. (1995) and Keller (2001) we believe that
customer brand equity is the driving force of economic and financial performance. Secondly, given escalating costs,
stagnated demand and increasing competition companies are seeking ways to maximize their returns from marketing
spend (Keller, 2001). We believe that understanding brand behavior from a psychological perspective can help. Studying
brand equity from a psychological perspective provides firms with the necessary tools to adopt tactical and
comprehensive marketing programs. We define brand equity as the aggregated benefits customers derive from a brand.
Brand equity helps customers interpret, store and retrieve large amount of information from memory. While the
marketing literature has already established a direct and positive link between brand equity and knowledge (Aaker, 1991;
Keller, 1993), there is general disagreement on the composition of brand equity. Some academics argue that brand equity
is developed through a combination of cognitive elements (Aaker, 1991; Keller, 1993), others look at the social and
personal elements (Belen del Río, Vázquez, and Iglesias, 2001), brand image and brand attitude (Kim and Kim 2005, Low
and Lamb, 2007). Lasser et al. (1995) suggested that consumers create brand equity through intangible and perceptual
dimensions like perceived performance, perceived value, image, trustworthiness, and commitment. On the other hand, Yoo
et al. (2001), proposed behavioral determinant of loyalty, perceived quality and brand awareness/association. Other
authors argue a more integrative hierarchical approach to brand equity. For instance, Keller (2001) suggested that brand
equity is a hierarchical phenomenon created through a sequential process that integrates brand salience, brand
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performance, imagery, judgment, feelings, and resonance. Other studies (Netemeyer et al., 2004) suggested that brand
equity is behavioral, created by consumer willingness to pay extra for a specific brand and key brand related respons e
variables such as perceived service quality, perceived brand value for the cost and brand uniqueness. Recently, Taylor et
al. (2007) extended the Netemeyer (2004) model in the context of financial services to include customer satisfaction given
its strong correlation with customer repeat purchase intention in service markets (Oliver, 1997, 1999; Zeithaml and
Bitner, 2003). The authors admitted that the behavioral and attitudinal intentions (hedonic and utilitarian) influence
brand value.
According to the theory of cognitive psychology, the human mind engages in a series of sequential and systematic
information processing tasks, which starts with absorption of sensory input and ends with the way these inputs are used.
According to Osterlind (2006), sensory inputs are absorbed and elaboration into neurological energy, which are then
stored, recovered, and later used to shape human attitudes and behaviors. Knowledge is the outcome of this elaborated
process. Knowledge represents the structured collection of information obtained from experiences and exposure to
stimuli, base on senses and perception through learning and reasoning. Keller (1993) interpreted brand knowledge as a
brand node, linked to product attributes, benefits, and affective associations, created through ongoing cognitive and
affective evaluation of brand related information. This view suggests that brand knowledge is rational deductive
processing (cognition) as well as subjective personal meaning, feelings, and passions (emotion). Schmitt (2012) purported
a brand psychology model that addresses consumers underlining perceptions and judgments. Through integrating
cognitive and emotional knowledge components, the author presented different levels of psychological engagement
between the consumer and their brands, which depended on customer need, motivation, and goal.
However, the relationship between cognitions and emotions is complicated. Zajonc (1980) postulated that emotions and
cognitions are separate mental states. Emotions are autonomous responses that occur without cognition or conscious
interpretation of stimuli. Separate independent neurons control emotional outcomes like affection, admiration, hate, and
anger without extensive cognitive encoding. On the other hand, Lazarus (1984) argued that the autonomous relationship
between both structures reflect an oversimplification of the human mind. According to this argument, the relationship
between cognition and emotions is far more complex given their recursive relations. This view suggests that humans
engage in continuous evaluation of environmental stimuli from the perspective of their own interest and wellbeing, such
evaluation is subjective and guided by feelings and emotions. The section below presents a discussion on cognitive and
emotional aspects of knowledge.
2.1 Cognitive Knowledge
Cognitive knowledge promotes conscious evaluation of information and addresses the intelligent, systematic selection of
information for rational thought. Cognition requires retrieving knowledge from memory for intelligent judgment. Thinking
link elements of knowledge and beliefs and influence the type of inferences formed. Our conceptualization of cognitive
knowledge structure is motivated by Aaker (1991, 1993), Pappu, and Quester (2006) contributions to brand equity, and
view knowledge structures as an amalgamation of four constructs namely brand awareness, perceived service quality,
customer satisfaction, and customer loyalty.
2.1.1 Brand Awareness
Brand awareness is a rudimentary level of knowledge that ranges from basic recognition of a brand name to highly
developed cognitive structures based on detailed information (Hoyer and Brown, 1990). It reflects a combination of the
ability to recognize a brand among competing alternatives as well as the ability and motivation to remember exactly what
the brand stands for. Through brand awareness, customers gather information about brands and make purchases. Schmit
(2012) defined brand awareness as an important category in brand psychology. The relationship between brand
awareness and brand equity is supported theoretically (Aaker 1991) but the nature and magnitude of this relationship are
not clear. For instance, Yoo and Donthu (2001) support the positive and direct association between consumer brand
awareness and brand equity by pointing out that customers who remember and recognize a brand are more likely to
assign positive associations towards that brand. However, others have discounted this direct relationship by arguing that
while brand awareness is essential for brand equity, it is insufficient. Keller (2001), for instance conceptualized brand
awareness (and brand association) as the foundation for building brand equity by arguing that its presence create identity
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and meaning, but brand awareness alone will not support brand equity. This argument contradicts the view purported by
Aaker (1991), Yoo and Donthu (2001), and motivated the construction of our first research hypothesis.
H1: Brand Awareness directly and positively predicts the level of Brand Equity customers assign to retail banks,
the greater the level of brand awareness the more brand equity customers will assign to retail banks.
2.1.2. Perceived Service Quality
Perceived service quality reflect short-term judgment of service attributes. A positive perception of service quality
increases the likelihood that future purchases and an essential determinant of the value assign to post purchase
evaluations (Aaker, 1991). Aaker (1991) suggested that perceived quality directly and positively relates to brand equity.
He argued that brands high quality brands are more attractive. However, not all theorists agree with this relationship. In
contrast, Bloemer et al, (1997) argued that the role of quality and brand equity is not direct but mediated by other
marketing outcomes like customer satisfaction and customer loyalty. This contradiction provided the motivation for our
second research hypothesis. Specifically, we expect:
H2: Perceived Service Quality directly and positively predicts the level of Brand Equity customers assign to
retail banks, the greater the level of perceived service quality the more brand equity customers will assign
to retail banks.
2.1.3. Customer Satisfaction
Satisfaction is a mental state of pleasurable fulfillment derived from consumption (Oliver, 1999). Satisfaction reflects the
overall judgment on a product superiority compared to others, a judgment that occurs only after consumption but based
on reference points set before consumption. Although satisfaction is related to perceived quality, it is considered
distinctive as it represents a more long-term evaluative state (Sureshchander et al. 2002; Gustafsson, Johnson and Roos,
2005). Empirical evidence already link customer satisfaction to a firm’s economic performance through profitability,
market share and return on investments (Oliver, 1999). Additionally, there is also evidence that link customer satisfaction
to intangible marketing outcomes such as, behavioral and attitudinal loyalty. Satisfied customers are likely to create and
sustain deep psychological bonds with their preferred brand. Given the strong and positive relationship, we expect
satisfaction to have a similar influence on other marketing phenomena like brand equity. Pappu and Quester (2006)
supported this assertion. However, the empirical model focused on aspects of cognitive knowledge structures such as
loyalty, awareness, and perceived quality and did not include emotional structures. Therefore, the influence of customer
satisfaction on brand equity is unclear when modeling emotional knowledge structure. This provided the motivation for
our third research hypothesis:
H 3:
Customer Satisfaction directly and positively predicts the level of Brand Equity customers assign to retail
banks, the greater the level of customer satisfaction the more brand equity customers will assign to retail
banks.
2.1.4. Customer Loyalty
Loyalty is a mental state driven by attitudinal and behavioral motives (Oliver, 1999). Behavioral motives reflect inertia
manifested through commitment and repeat purchase. Attitudinal motives are more involved; develop through intensive
cognition and affection. Attitudinal loyalty reflects a mental state that project a deep commitment towards brands (Keller,
2001). Cognitive aspect of brand loyalty suggests conscious commitment. It is more than habitual purchase or inertia, but
is a psychological bond that reduces brand vulnerability. The psychological bond contributes to brand value, predictable
sales, and lower marketing costs (Chaudhuri and Holbrook, 2001). However, the relationship between brand loyalty and
brand equity is not consensual. Lasser et al. (1995) for instance, suggest that brand equity determines brand loyalty. Brand
equity reflects the strength of one brand over competing brands and translates into customer confidence, loyalty, and
willingness to pay a price premium (Lasser et al., 1995; Tylor et. al, 2004). Aaker (1991) argued that brand loyalty is an
antecedent to brand equity given that loyal leads to marketing advantages of expanded customer base, positive word of
mouth with lower marketing cost. For Aaker (1991), loyalty reflects the probability of customer churn. Keller (2001) on
the other hand emphasized that the emotional aspects or resonance. Brand resonance reflects a deep psychologic al bond
15
with the brand, which manifest into attitudinal and behavioral loyalty, sense of community and active engagement. This
lack of consensus motivated the construction of our fourth research hypothesis:
H 4:
Customer Loyalty directly and positively predicts the level of Brand Equity customers assign to retail
banks, the greater the level customer loyalty the more brand equity customers will assign to retail banks.
2.2. Emotional Knowledge
Emotions are automatic responses to environment stimuli and reflect feelings of love, affection, hate, anger, and hurt.
Emotions are associated with a wide variety of “psychological factors such as temperament, personality, motivation and
categorical knowledge customers use to process and understand information regarding the benefit or consequences of
using a brand” (Ruth, 2001 p. 99). This automatic processing of environmental stimuli leads to sensual engagement and
cultivates affection and resentment. This study investigates two sources of emotional engagement (Berry , 2000; Ruth,
2001): emotions from service experience and emotions from brand affinity.
2.2.1. Service Experience
Experiences are “processes that include sensory perception of a brand, brand affect, and participatory experiences that a
consumer may seek from a brand” (Schmitt, 2012 p. 10). Epstein (1998) summarized experiential system as “a cognitive
system driven by emotions” (p. 125). He argued that although the rational system and experiential system of cognitive
processing are independent they influence each other. Emotional experiences feed into intellectual knowledge and
influence behavior. Emotional experiences depend on service encounters (Berry, 2000). Service experiences invoke
emotional connections, harness trust, and fulfillment. The evaluation of service experience affects the emotional and
psychological response towards the brand, which in turn influence attitudes and behaviors. This conclusion was supported
by Grace and O’cass (2004) who examined the impact of service experiences on the customer evaluation and concluded
that during a service experience, both behavioral and the emotional elements are evoked which ultimately affect the way
consumers rate the overall service encounter. The authors concluded that emotional enticement created through positive
service experiences lead to favorable dispositions towards a service brand and consequently lead to a greater amount of
equity assigned to preferred brands. Therefore, our fifth hypothesis is:
H 5:
Service Experience directly and positively predicts the level of Brand Equity customers assign to retail
banks, the greater the level of service experience the more brand equity customers will assign to retail
banks.
2.2.2. Brand Affinity
Consumers interact with hundreds of brands but consciously develop connections with only a few of them. Conscious
connection towards a brand refers to brand affinity. The level of brand affinity towards a brand is a result of two main
elements (1) affinity towards service attributes, and (2) affinity towards service benefits (Berry, 2000). Affinity towards
service attributes refers to the core service sought by consumers and attitude towards service benefits reflect the symbolic
aspects derived from consumption (Tuominen, 1999). Symbolic benefits relate to underlying need for social approval or
personal expression. Symbolic benefits are especially relevant for socially visible consumption, with value built on prestige
and exclusivity (Keller, 1993; Tuominen, 1999). Brands that are high on attributes and symbolic benefits will have high
levels of equity since both these elements influence the processes consumers employ in information processing, provide a
point of differentiation and a reason to buy (Keller, 1993). This study investigates this link between between brand affinity
and brand equity. We expect that brand affinity is a directly related to brand equity. Our sixth research hypothesis is:
H 6:
Brand Affinity directly and positively predicts the level of Brand Equity customers assign to retail banks, the
greater the level of brand affinity the more brand equity customers will assign to retail banks.
This study conceptualizes brand equity as a linear first-order model, predicted by six aspects of knowledge. Figure 1
presents our research model and six research hypotheses.
16
Figure 1: Research Model - Brand Equity Model
3. Methodology
The population of interest was citizens of Trinidad and Tobago who were eighteen (18) years and over and had a
preference towards a specific bank for service encounters. To collect data, the study used personal intercepts at randomly
selected banks and shopping malls. Data were collected using standardized questionnaires that consisted of fifty -(50)
items. The questionnaire comprised two sections. The first section solicited responses on six aspects of knowledge and
brand equity on a 5-point likert scale that ranged from 1-Strongly Disagree to 5- Strongly Agree. To measure each
construct, the study utilized scales developed and tested by previous studies (Parasuraman, et. al 1988; Las ser et al., 1995;
Yoo and Donthu, 2000; Grace and O’cass, 2004; Taylor et al. 2004; and Aziz and Yasin, 2010) but modified to fit the context
of the study using a pilot study of fifty-(50) banking customers. The second section solicited information on demographics.
From the three hundred and fifteen (315) questionnaires completed, we eliminated thirty -two (32) because of missing
data. Therefore, the effective sample consisted of two hundred and eighty -three (283) participants. In terms of profile,
fifty-one percent (51%) of the participants were male and forty-nine percent (49%) were female. The majority of
participants were between 25-44 years old (47%). Almost twenty-seven percent (27%) were between 45-64 years old,
eighteen percent (18%) were under 25 and the remaining eight percent (8%) were 65 years and older.
3.1. Data Analysis
The analysis of data followed two stages. Firstly, we used Confirmatory Factor Analysis (CFA) to test the nature of each
construct in the research model. The measurement scale for Brand Awareness, the first aspect of knowledge consisted of
four (4) items. Both the MSA (0.742) and Bartlette test of Sphericity (p<0.05) were acceptable to warrant factor analysis.
From the CFA a single factor solution was generated which explained 56.5% of total variance with an acceptable reliability
coefficient (Cronbach’s α = 0.742). The measurement scale for Service Experience consisted of six (6) items. The MSA
(0.799) and Bartlett test of Sphericity (p<0.05) were acceptable, but two (2) items were deleted from further analysis
because of low factor communalities. These items were “my preferred bank has a modern layout” (0.434); and “The service
offered by my preferred bank is superior compared to alternative banks” (0.462). The retained items explained sixty-seven
percent (67%) of variance with strong reliability statistic (Cronbach’s α = 0.829). The third construct “Brand Affinity”
comprise six (6) indicators. The MSA (0.846) and Bartlett test of Sphericity (p<0.05) were also acceptable but two (2)
items were deleted from this scale because of low factor communalities. These items were “I feel emotionally connected to
my preferred bank” (0.497); and “I am happy with my preferred bank” (0.443). The retained indicators explained sixty-eight
percent (68%) of total variance and had strong reliability coefficient (Cronbach’s α = 0.839). The fourth construct labeled
17
“Perceived Service Quality” measured using nine (9) items. We deleted six (6) items because of insufficient shared variance
(factor communality < 0.50). These items were: “My preferred bank has a strong reputation” (0.348); “My bank perform
services right the first time” (0.402); “My preferred bank only makes promises it can achieve” (0.421); “I have confidence in
my preferred bank” (0.496); “I receive all the information I need from my preferred bank” (0.488); and “I get all the attention
I need from my preferred bank” (0.429). The retained explained 68.2% of total variance and had strong reliability
coefficient (Cronbach’s α = 0.764). The fifth construct labeled “Customer Satisfaction” measured using an eight (8)-item
scale. The MSA (0.908) and Bartlett test of Sphericity (p<0.05) were also acceptable. All eight items were retained and
explained 61.8% of total variance, which is above the minimum requirement (50%) in social science research. These eight
(8) items had strong reliability coefficient (Cronbach’s α = 0.909). The sixth construct “Customer Loyalty” measured on a
seven (7)-item scale. The MSA (0.846) and Bartlett test of Sphericity (p<0.05) were acceptable. Two items were dropped
from further analysis because of low factor communalities (p<0.50). These items were “If I have to do it all over again, I
would choose a different bank” (0.209); and “I would not switch banks even though the cost of services may be lower” (0.356).
The retained items explained approximately sixty-three percent (63%) of total variance and (Cronbach’s α = 0.822). The
seventh construct (the dependent construct in this model) was “Brand Equity” was measured with a four (4) item scale.
The MSA (0.777) and Bartlett test of Sphericity (p<0.05) were acceptable and items explained 63.7% of total variance with
strong reliability coefficient (Cronbach’s α = 0.792). The factor loadings for each construct are shown in Table 1.
Table 1: Factor Loadings from Confirmatory Factor Analysis
FACTOR 1: BRAND AWARENESS
Recognition
Knowledge
Recall
Identification
FACTOR 2: SERVICE EXPERIENCE
Prompt
Helpful
Busy
Trust
FACTOR 3: BRAND AFFINITY
Like
Unique
Personality Fit
Social Acceptance
FACTOR 4: PERCEIVED SERVICE QUALITY
Interest
Courteous
Service Quality
FACTOR 5: CUSTOMER SATISFACTION
Expectations
Overall satisfaction
Variety of Banking Services
Perfect
Contentment
Delight
Right Bank
FACTOR 6: CUSTOMER LOYALTY
Continue
Best Choice
Loyal
Recommend
Relationship
FACTOR 7: BRAND EQUITY
Attractive
Respect
Affection
Logical
Loadings
Cronbach’s
α
% of
variance
Extracted
.759
.722
.802
.722
0.742
56.5
.820
.811
.805
.719
.829
66.6
.801
.779
.841
.749
.839
67.6
.785
.746
.784
.764
68.20
.725
.830
.746
.818
.803
.836
.764
0.909
.780
.799
.738
.826
.834
0.822
63.3
.788
.707
.847
.843
0.792
63.7
61.8
The second stage in the analysis involved using Structural Equation Modeling (SEM) to specify the brand equity model on
AMOS 18. The specified model only explained only 47% of total brand equity variance, less than the recommended 50%
(Hair et al. 2010) Additionally, the chi-square (χ2 = 1168.68) was relatively high compared to degree of freedom (15) and
the goodness of fit indices (GFI, AGFI, NFI) were all less than acceptable level. This suggested that the data collected did not
fit the theoretical model tested. In order to improve the model, we re-specified the model through a series of iterative
procedures. Figure 2 presents the re-specified model.
18
Figure 2: Re-Specified SEM Model Using Factor Scores
From on the fit indices, the re-specified model achieved an acceptable fit since approximately 58% of brand equity
variance was explained and the model displayed accpetable fit indices (GFI 0.983, AFGI 0.947, NFI 0.988). The model maps
twelve (12) statistically significant (p<0.05) relationships. It shows brand equity as a direct and positive function of two
knowledge determinants: customer satisfaction (0.297) and customer loyalty (0.511), with customer loyalty having a
greater impact on brand equity than customer satisfaction. The model maps brand awareness as an indirect contributor to
brand equity, mediated by customer loyalty (0.51). The model also shows brand awareness, previously conceptualized as
an exogenous variable, as endogenous to these brand equity relationships. The level of awareness customers exhibited
towards their preferred bank is dependent on the level of brand affinity towards a bank (0.393) and perception of the
bank’s service quality (0.269). This suggests that brand awareness is not only determined by marketing communication
strategies (exogenous to this study) but is also a function of customer love, and perception of services offered by the bank.
The re specified model did not support our hypothesis that perceived service quality have a direct and positive
relationship to brand equity. The re-specified model mapped perceived service quality as an indirect contributor to brand
equity, mediated through brand awareness and customer loyalty. Additionally, model shows perceived service quality as
highly dependent on service experiences (0.416), customer satisfaction (0.333) and customer loyalty (0.135), suggesting
that customer evaluation of service encounters are driven by both rational judgmental and emotions during service
encounters. Customer satisfaction was hypothesized to have a. The re-specified model supported the direct and positive
relationship between customer satisfaction and brand equity (0.297). This suggests that T&T banking customers
perpetually compare their actual experiences with banking services to their expected experiences when deciding how
attractive one bank is to another. The more aligned actual experiences are to expected experiences, the more attractive
banks appear to customers, the more brand equity these customers will assign to their preferred bank. However, this find
maps customer satisfaction as a function of brand affinity and customer service experience. This suggests that cognitive
evaluation of actual and expected service encounters depends on emotional influences. The final hypothesis tested was the
relationship between customer loyalty and brand equity. The re-specified model supports a positive and direct
relationship. In fact, customer loyalty is the strongest predictor of brand equity (0.511). Unlike the conceptual model, the
revised model showed customer loyalty determined by two constructs customer satisfaction and brand awareness.
Relative to emotional influences, the re-specified model mapped service experience as an indirect determinant of brand
equity, mediated by customer satisfaction. The re-specified model shows that service experience has a direct and positive
impact on brand affinity and perception of the service quality. Service experience has the greatest impact on brand affinity
(0.662), followed by customers perception of service quality of retail banks (0.416) and the level of satisfaction with their
banking operations (0.336). Furthermore, the re-specified did not support the direct relationship between brand equity
19
and brand affinity, but maps brand affinity as an indirect predictor, mediated by customer satisfaction (0.57) and brand
awareness (0.393).
In summary,
combination
relationships
indicates that
the results show that brand equity is a multifaceted, multilayered construct determined through a
of direct and indirect relationships. Brand equity is determined through several inter-dependent
mediated by two cognitive component of knowledge: customer satisfaction and customer loyalty. This
brand equity is a marketing outcome linked to both cognitions and emotions.
4. Discussion and Conclusions
There is no doubt, that the financial crisis of 2008 has an effect on the economic sustainability of many Caribbean
countries including T&T. Although the possible threat is still looming, the impact of the financial crisis on T&T's retail
banking institutions has been mild compared to its Caribbean neighbors. The abili ty of the sector to withstand this
economic challenge is still not clear. Many industry experts explained the stability of this sector by drawing on arguments
pertinent to the industry’s oligopolistic structure, bank’s management practices and government regulation (PECU, 2009;
BATT, 2008). However, the possible contributions customers make to the sector’s stability is underexplored. This study
addresses this gap. Through cognitive and emotive brand knowledge structures, the study concluded that brand equity is a
complex, multi-dimensional, hierarchical marketing phenomenon, created through a series of interdependent
relationships. The brand building block pyramid in Keller (2001) contribution supports this conclusion. However, unlike
previous contributions, our findings show the interdependent role of emotions and cognitions in creating and maintaining
brand attractiveness. The re-specified model mapped brand knowledge as a function of both direct and indirect
relationships created before, during and after service encounters and concludes that brand equity is a direct and positive
function of two cognitive knowledge determinants: customer loyalty and customer satisfaction. Other cognitive knowledge
dimensions such as perceived quality and brand awareness had an indirect and marginal impact on brand equity. The respecified model mapped the two emotional knowledge sources of brand affinity and service experience as indirect
predictors of brand equity. However, aspects of cognition mediated this impact, suggesti ng that strong brands reflect both
rational and emotional evaluation of marketing stimuli. It also suggests that cultivating feelings and emotions through
service experiences and brand relationships are essential building blocks for creating brand equity. This finding is
especially significant for banks, given that the service is classified as highly involved, driven by deliberate and rational
processing. Our findings suggest that emotional influences form the foundation for building brand equity and have direct
influences on how consumers deliberately process marketing stimuli.
This study provides meaningful insights into the relationship between knowledge and brand equity from a banking
perspective. However, we collected data in one country (T&T), in one s ervice sector (retail banking). Future research can
consider extending this study to other countries including Portugal and other European countries. This expansion would
also allow comparisons from both a cultural and operational perspective. It is a widely held view that individual
demographic and socio-economic traits can affect information processing and acquisition (Zurawicki, 2010). However, to
date, very little published material look at the impact of these differences on marketing outcomes and in particular brand
equity. Pertinent research questions relating to the extent to which consumer psychographic and demographic
characteristics on brand equity remain unanswered. Future research can build on this theoretical contribution by
examining the extent to which customer personal differences can affect the way they assign preferential value to brands.
Additionally, given that, we examined brand equity from a customer perception (Lasser, 1995); future researchers can
segment the distinctive antecedents into behavioral, attitudinal, and perceptual and examine the effects of each dimension
on brand equity process.
However, despite these limitations, our findings present relevant and practical implications for brand specialist and
marketing managers. By dissecting brand equity in retail banks, the study provides invaluable insights for managing longterm brand relationships with customers. For instance, if marketers invest in providing systems and infrastructure, that
encourages an environment of customer friendliness, staff responsiveness, care and courtesies, customers will assign
positive emotional appeals and stronger emotional connections. Such appeal will have a lasting influence on what
customers think and associate to the specific brand. Marketers should focus on making the service experience enjoyable to
customers. Critical to service experience is service delivery. Customers judge their experience by the efficiency and speed
of processing transactions. Bankers and by extension all service providers, should invest in systems that facilitate a quick
and convenient consumption of service. This will make banking services easier and less costly to consume. The evidence
suggested that customer emotional arousal is a function of the appearance and layout of a bank physical environment. The
20
perceived attractiveness of the service provider’s layout, physical surroundings and space are key contributors to the
overall customer experience. Customers rely on these non-service related cues in addition to other core service elements
when assigning meanings and associations to retail banks.
In conclusion, success in today’s challenging market space demands a customer centered approach to business. Businesses
should recognize the contribution customers make to their ov erall success. However, what factors explain the value
customers assign to brands? Framed within the context of retail banking in T&T, the study investigated factors that predict
and explain brand equity. We argue that customers assign value to brands through a rational appraisal of the brand’s
performance; however, feelings and affections drive this evaluation. Brand equity is emotionally driven and based on the
customer experiences, which in turn influence cognitive appraisals of the overall brand performance.
The authors have a keen interest in replicating a comparison study in Portugal and other European countries pending
contributions and support from interested stakeholders.
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Some aspects of Integrated Marketing
Communications in Building Brand Equity
Integrated marketing communication (IMC), Brand equity, Building brands.
Reza Safarinejad Fard, University Technology Malaysia, Reza375@gmail.com
Abu Bakar Bin Abdul Hamid, University Technology Malaysia, bakarhamid3030@yahoo.com
Rozita Saadatmand, University Technology Malaysia, Rozita.saadatmand@gmail.com
Abstract
Over the past decades business strategies face drastic changes. Modern technologies have been influential in many fields
and the field of business and marketing are not an exception. Validity of the old marketing strategies in today’s world is
dubious. Modern approaches have become critical for effective marketing strategies. Integrated Marketing
Communications (IMC) is one of these new emerging strategies which we are going to discuss about it in the proceeding.
This new approach of marketing is currently practising at the all big multinationals, and it plays an important role in
enhancing business. A process in which organizations make a beneficial and genuine relationship with their stakeholders
and customers is called IMC.
However, many factors have influence on brand equity such as, product, price, promotion and sale, but during this paper
we tend to considering the effect of IMC on Brand equity. During this paper we tend to provided a discussion about the
positive linkage between integrated marketing communication and brand equity. In this paper according to impact of IMC
on brand equity, we provide the details of the role of IMC in building and maintaining strong brand equity.
Introduction
Prior studies have widely accepted IMC or integrated marketing communication. Basically, marketing is a dynamic and
evolving process that develops on the basis of a vision cantered on service (Vargo, Maglio, & Akaka, 2008) . Also, they
proposed that integrated marketing communication is replacing the manifold in a commercial focus and limited
management tools of the trade mark must be used to initiate and maintain an on going dialogue with customers and to
improve relations. The means for the development of strong, customer oriented brand equity can be provided by
marketing communications as Keller (2003) stated. In this study, the main focus is on the influence of IMC in creating
brand equity.
Integrated marketing communications (IMC)
There are various definitions of IMC and all of them enlighten some of the aspects of this subject. According to (Kliatchko,
2005) there is no single agreeable definition that covers all aspects of IMC. Two different reasons are the responsible for
such discrepancy, first confined number of researches in this field and second general disagreements toward the
emergence of IMC.
By the time past and IMC drew many attentions and thus researchers tried to reassess the basic notion and eventually the
today’s term was created. In order to have a comprehensive definition of varied applications of IMC, new ideas were added
to the sooner definitions of IMC. A general misunderstanding about IMC is that any organizations only require single
message and brand which is despite of implication of it. IMC, make managers capable of dealing with many targets and
guide them to attain integration of various brands and functions among only one company. (Fill, 2001; Grove, Carlson, &
Dorsch, 2002; Hartley & Picton, 1999; Lee, 2002; Phelps, Harris, & Johnson, 1996).
24
According to Shimp (2003), definition of IMC is a communication process that implies the integration, planning, creation
and implementation of various forms of adverts, publicity, sales promotion; those are delivered over time to a brand’s
targeted customers and prospects. In order to achieve a strong brand image and moving people to action, communications
should speak in one voice. Hence, coordination is crucial. Acting despite of aforementioned fact will lead to different things.
Building a relationship between brand and consumer requires regarding having a successful marketing communications.
It means all messages which issued by organizations should be closely supervised and controlled to make sure from their
effects, thus it urges to apply data driven technique. To state the matter differently, Duncan(2002) believed that IMC is the
fundamental part of the relationships that build brands. From aforementioned facts it concludes that IMC is considered as
part of marketing field which is the source of data correspondent to brands in such a way that create a mutual relationship
between stakeholders and customers.
Since that customer will only trust that particular organization this relationship not only secures a customer bu t it
guarantees the profitability of the relationship. In fact, voice of a brand is represented by marketing communications
(Keller, 2001). The aim of all IMC processes is a better understanding of the relationship between customer and
organization thus, discussion on IMC would remain incomplete without talking about brand because it is the same goal as
brand building process. Basically, IMCs’ strategies help to create and build brands. Accordi ng to the published literature
by Danziger (2006), happiness of the costumers should be on the centre of attention particularly during designing and
developing of marketing messages and products.
The evolution of IMC, regarding strategic role in brand equity plus its conceptual development and its significance is
overviewed in this section. In terms of its ability to strengthen brand equity there are two methods with which to evaluate
firms’ implementation of IMC including process control and output control (Duncan & Moriarty, 1998). The evaluation of
outside performance of firms such as the organization impact on brand awareness or on customer satisfaction, and its
sales outcomes has been referred to as output control.
Integrated marketing communication (IMC) has become generally avowed, has outspread varied levels inside the firms,
and has become an impartible component of brand. In the competitive market in 21 century, archive to a systematic brand
communication is the way to moving forward and increase the performance of the firms. Marketing communication has
important role to building and maintaining the shareholders communications and affect them on the terms of brand
equity. For the integrated marketing communication we can mention to brands as central IMC. Marketing communication
recognizes as voice of the brand and it is a way for any organization to make contact with consumers to introduce their
product. For developing the brand equity the best way is marketing communication, more ever marketing communication
help to the firms to receive the desirable responds from consumers.
Importance of Brand Equity
Definition of the concept brand equity was provided at the beginning of this section, followed by arguments for why it is
important to study the determinants of brand value. However, before turning to the comparable context of the work, it is
also important to answer the questions: what is determinant of brand equity? And what is customer-based brand equity.
Basically, brand equity embraces the following dimensions: brand loyalty, brand awareness, perceived quality of brand,
brand image and brand association (Hosseini & Zareebaf, 2011; Mihaela, 2012).
A priority for many firms based on Keller’s (2003) investigations is building and properly managing brand equity. He
stated that internal brand identity efforts are necessary to build brand equity. Afterwards, integration of brand identities
into the corporations marketing plans should be executed. In addition, he believed that the process of integration of brand
identities into the supporting marketing platforms is closely connected to the powerful of the corporations brand equity
from communications. Furthermore, he recomended having an efficient strategy for integrating marketing
communications in building and maintaining brand equity is kind of necessary.
All of the mentioned elements determine how the customer perceives a particular brand. Subsequently, customer-based
brand equity reflects the customers’ reactions to the marketing mix elements and activity of a particular brand (Keller,
1993). Keller (1993) further adds that consumer-based brand equity takes place solely when the consumer is well
acquainted with the brand and so holds sturdy brand associations in memory. With these definitions, it is known that a
valid measurement of customers’ perceptions can occur only provided that the individual has favourable and unique brand
associations in mind (Mihaela, 2012).
25
Camarero, Garrido, and Vicente (2010) aim to explore determinants of brand equity for cultural activities from the angle of
internal along with external visitors. Their analysis advocates four components for brand equity in inventive and cultural
activities (loyalty, brand image, perceived quality and brand values) and assesses them for the case of an itinerant art
exhibition staged over the past twenty years. Findings recommend that external visitors attach bigger significance to
brand image as a determinant of value than do internal visitors, whiles for the recent brand values are the principal source
of price.
Based on the published literatures, different marketing communications influence brand equity including sponsorship and
advertising as well as various alternative communication options (Aaker & Bid, 1993; Cobb-Walgren, Cathy J., Cynthia A.
Ruble, & Donthu, 1995; Cornwell, T. Bettina, Roy, & II, 2001; Joachimsthaler, Erich, & Aaker, 1997). The most advantage of
the brand equity is its positive impact on demand. It is predicted that the awareness, complete quality and the brand
loyalty causes the rise of brand market productivity. This facet of brand equity helps the organizations attract the
purchasers and keep them (Baldauf Artur, S, & Gudrun, 2003; chirani, Taleghani, & Moghadam, 2012). Some researchers
conjointly believe that the studies connected to the brand equity have a lot of established conceptual logic with the brand
performance as compared with various areas that creates it a viable phase for considering to organisational productivity.
(Baldauf Artur et al., 2003; chirani et al., 2012).
Customers could be a lot of eager to attend to extra communications for a brand. The power and equity of brand
advertising can completely influence the participation of customers in additional communication for that terribly brand.
Customers can process these communications in an approval manner and thus, they will have a larger capability to recall
the communications or their accompaniment cognitive or emotional reactions in the future. As a mediator or goal to
achieve alternative goals brand equity has the central role in advertising. Benefits of these communications only develop
under situation that company has a strong brand, thus it can be concluded that building powerful brand is a management
preference (Aaker, 1991, 1996; Kapferer & Jean-Noel, 1997). The correct data structure is the prospective consumers,
hence it is quite important to build a strong brand. Marketing communications have a vital role in determining that
knowledge of the customers because they are going to reaction positively to marketing actions of a well -known brand.
Brand equity and also the importance untouchable worth that brand bring to companies are became standard subjects of
studies lately. There are a few agreements amongst academics, this means brand equity ought to determine at conditions
of marketing influences and its distinctive registered to a brand. However, this concept may be approached by scholars in
different ways.
The majority of researchers believe that brand equity reflects the actual fact that brand plays a vital role in marketing of a
service or product delivered by organisation. There are also, general agreements like: brand equity delivers a possessed in
common denominator for rationalization promoting methods and measuring the value of a brand, value differentiation
among products and services are based on the past investments in the marketing for the brand, these values will be made
for a brand through several totally different ways and in the last, so as to profit of the organisation there are various way s
as to how the worth of a brand will be appear or exploited.
Thus, for maintain a position within the market and be easily recognizable and differentiated from the competition, brand
equity is necessary for a company. Brand equity can reduce search costs and the risk associated with purchasing the
product by representing value and quality to the consumer.
Some aspects of IMC in Brand equity
The challenge in marketing communications is to create the selling messages related, vital and supportive of a wider range
of reasons to place a buyer's confidence in an exceeedingly product or service. Some corporations, as revealed by analysis,
perceive this higher than most by supporting their complete message as a product message and an organizational
reputational message: their message is incorporated into an overall strategy of integrated communications (Caywood,
1997).
IMC, according to Kitchen et al. (2004), is no longer just a communication process. In fact, it is a progression that related to
management and brands. In addition, Kitchen et al. (2004) suggested that IMC involves managing marketing
communications to achieve strategic objectives by stress on functionality of the various part of an organization. The
published literature by Mcarthur et al. (1997) toward the responsibility for marketing communications and its role in an
26
interior, higher management affair recommended that IMC is developing to be strategically oriented instead of tactically
oriented.
The idea that IMC offers several advantages for businesses has been supported by several researches (Naik & Raman,
2003; Reid, 2003). IMC is helping to create brand equity for companies’ products and render services through synergies
(Naik & Raman, 2003). Similarly, Reid (2003) recommended that the integration of marketing communications to brand
positively connected performance-based company.
Furthermore, it was indicated that the success of the IMC to generate desirable customer responses (Grove et al., 2002).
The conclusion of these researches propose that in order to achieve the potential business become more effective in
communicating with their target markets plus being able to help companies to superior financial results through higher
brand value, IMC plays the centric role. The strategy and brand identity as the vital components of IMC strategy have been
discussed in the following section.
Keller (2008) implied that brand knowledge is all regarding to the emotions, awareness, images, understandings and so on
that become linked to the brand within the awareness of customers, and it is not about the facts about the brand. These
types of information will be considered as a collection of associations data of brand in consumers’ minds. Janiszewski and
Osselaer (2000) defined he essential evidence of the customer based brand equity model. They believed the strong brand
equity in the minds of consumers and which means that the brand has accomplished in the widest common sense.
Integrated marketing communication has been extensively accepted by companies around the world. This may be a
marketing communications system that enables organizations to higher manage their brand pictures . Integrated
marketing communication ways are aimed toward combining or integrating the elements of the communication mix, like
advertising and public relations so as to make a balanced and constant marketing communications massage that
strengthens the brand. Integrated marketing communication, if managed properly provides a corporation a competitive
advantage because of its value efficiency and its ability to take full advantage of the impact of its product and services
development and also the communication of the organization's massages within the marketplace.
In the latest study Shown below with universities branding process about creating value through integrated marketing
communications by Omer et al. (2012). These variables were determined as organization resistance, brand development,
message consistency, strategic planning and staff development.
Figure1. IMC and Branding, Omer et al. (2012)
According to the published literatures it is firmly accepted that numerous marketing communications have an effect on
brand equity, as well as sponsorship, advertising and several various communication options (Walgren et al. 1995;
Joachimsthaler et al. 1997). This may be a marketing communications structure that enabl es organizations to higher
manage their brand images. It is quite clear that marketers access to varied marketing communication options which have
not been available in the past. In fact, a universal model of brand equity is required to perceive the role of all the various
sorts of marketing communications in building brand equity. Keller (2001, 2008) proposed a model as the customer based
brand equity, based on this model, brand equity is basically specific by the brand knowledge and marketing strategy are
responsible. Definition of brand equity according to this model is the derivative effects that customer knowledge has about
brand equity. Fanally we can consider, customers are absolutely in charge with the info they have or varied offerings that
they are inquisitive about. Regarding this situation, marketers may drop some management over what customers will do
with their action.
27
Summary
This study tried to show the dramatic changes which have happened in integrated marketing communications in recent
years, hence there are new challenges for build and manage their brands for marketers. In this complex new marketing
world the brand equity model that accentuates on significance of the customer brand awareness arrangements, measured
as means to assistance marketers explain the building brand special effects of marketing communications.
The brand resonance pyramid was determined means that to trace how marketing communications will make powerful,
dynamic loyalty connections and positive brand equity to provide better understanding of consumer brand knowledge
structures. Consumer brand knowledge can be affected in one or more ways by any marketing communication which
implies effects of marketing communication on brand equity. In order to create the favourite awareness and image in
understanding of customers, integrating marketing communications includes mixing and matching different
communication options. A significant development area in marketplace is identified as online, interactive marketing
communications. Any perspective of brand building will be just about addressed by collaborating marketing
communications to probably influence brand equity, and that is why collaborating marketing communications offers
marketers great versatility.
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29
Perception of sources of brand value TAP Portugal
by the perspective of its users
Brand Equity, Sources of Value, Loyalty, Perceived Quality, Reputation, Associations
Sara Alexandra Soares da Mata Nunes, Escola Secundária D. Pedro V - Agrupamento de Escolas das Laranjeiras
Júlia Fragoso da Fonseca, Escola Superior de Turismo e Tecnologia Do Mar – GITUR- IPL
Abstract
In a global economy subject to changes in market dynamics and increasing competition, the role of brands has never been so important.
In recent years, we witnessed the apparent triumph of the brand concept: all are encouraged to self-identify. Its economic and social
importance
in
the
national
and
international
scene
is
absolutely
undeniable.
The map marks serve as advisor to the buying behavior and, when managed correctly, result in significant value for their owne rs. There
are currently two approaches that direct studies in this area, determining the financial value of the brand and perceived value of a brand
by
consumers
and
on
this
second
approach
is
that
we
will
address
in
this
article.
The airlines face nowadays challenges, moreover they have been constant since the 80's, this has led to many companies adhere to
concentrations integrating into global alliances, thereby strengthening its position, thus also face competition of low -cost airlines.
Our study falls on the airline TAP Portugal, which is currently the Portuguese flag carrier and largest airline in Portugal thus occupying a
privileged position in commercial aviation landscape.
Despite fierce competition from low-cost airlines, charter flights and competition from large interna tional companies already
positioned, which is very conservative, the company continues to dominate, but how? What are the factors valued by consumers that
makes this company to choose and assign greater value? This is a question we want to answer with this study.
1. Objectives of the Study
The aim of this study focuses on the topic of brand value TAP Portugal, so we intend to get a response with regard to the cor relation
between good results and the company's vision of its customers with respect to sources of value your brand, or brand equity. That is, we
intend to identify and assess the factors explaining the brand equity of a successful brand as TAP Portugal, applying the con ceptual
model of David Aaker (1991), in order to investigate the relationship of brand equity with its dimensions, loyalty brand, perceived
quality, brand awareness and brand associations. The choice of this model is due to the fact that one of the referenced at va rious studies
and have often been tested by scholars (Yoo et al, 2000; Faircloth et al, 2001; Washburn and Plank, 2002; Atilgan et al, 2005) to verify
the dimensions of brand equity.
TAP Portugal is currently the Portuguese flag carrier and largest airline in Portugal thus occupying a privileged position in commercial
aviation landscape. In 1948 becomes member of IATA (International Air Transport Association) and in 2005 became a member of Star
Alliance, the first and largest group of airlines. Performs flights to Europe, North America, Latin America and Africa, in ad dition to
domestic flights. Throughout its existence was awarded in several areas, from medals and titles awarded by public entities. T he
company also stands out from the others by promoting initiatives among its consumers and the general public. Noted that TAP h ad at
the end of 2010, a dimension above double that seen in 2000, as its supply increased during this period, about 136%. Despite the
competition from low-cost and charter flights, the traditional companies continue to dominate on the number of passengers l anded at
Portuguese airports, as in the following graph shows.
30
Graphic nº 1.1 – Debark, type of flight - no, thousands (2nd quarter)
Source: Tourism of Portugal (2nd quarter 2011)
With regard to commercial traffic for companies, TAP Portugal ranks first with 9,298,073 million passengers, followed by two lowcost
airlines, Easyjet Airlines Co Ltd, with about 2,380,693 million passengers and Ryanair Ltd, with about 1,781,134 million pass engers,
according to the Annual Statistical Traffic, Airports ANA (2010).
Any investigation, beyond the general objective, as shown above, also has specific objectives fruits of empirical research, a s:
Objective 1. To study the relationship between the dimensions of brand equity according to the model of Aaker (1991, 1996) selected on
the brand equity of the brand of the airline TAP Portugal;
Objective 2. Identify the variables that best explain the brand equity of the brand of the airline TAP Portugal;
Objective 3. Assess the impact of brand loyalty on brand equity of the brand of the airline TAP Portugal;
Objective 4. To assess the impact of perceived quality on brand equity of the brand of the airline TAP Portugal;
Objective 5. Evaluate the impact of reputation and brand associations in the brand equity of the bra nd of the airline TAP Portugal;
Objective 6. To characterize the demographic variables of respondents;
Objective 7. Knowing the reasons why travel carry passengers;
Objective 8. Understanding what causes the passengers prefer to travel by TAP Portugal;
Objective 9. Understand whether passengers are always faithful to the company chosen and if they are not, understand why this
situation occurs;
Objective 10. Knowing the emotional connection between the TAP Portugal airline and its passengers;
Thus, for response to general objective and specific obejctivos, will present the relevant methodology to be used, which will allow us to
reach the desired results.
2. Methodology
According to Hill and Hill (2002:19), "an empirical investigation is an investigation in which they make observations to better understand
the phenomenon to study," the steps are of an empirical investigation "from the literature review establishes the General Hypothesis work,
and it becomes necessary, from here, to operationalize this hypothesis and select the methods of research. Only then will it be possible to
pass the collection and analysis of data and presentation of results. These will confirm or deny the hypothesis established a nd is operating
this confirmation or denial that will provide the conclusions of the work. "(Hill and Hill, 2002:32). There are however, many different steps
to consider in conducting empirical research, and to Quivy Campenhoudt (2003), there are about seven steps to follow, these b eing the
starting question, exploitation, problematic building a model of analysis, observation, information analysis and findings, and this will be
the methodology used for this work.
As regards the question of departure, according Quivy and Campenhoudt (2003:44) "the best way to get a job in social science research is
to endeavor to spell out the project in the form of a question starting. With this, the researcher tries to express as exactl y as possible what
you want to know”. Based on all this our starting question is: Does the good results of the company TAP Portugal are due to the
perception of its users, with regard to the sources of value of your brand?
Then the goal is to collect a certain quality of information about the object under study, so as to perform the exploratory w ork.
According Quivy and Campenhoudt (2003) it is composed of two parts conducted in parallel, these being a work of reading and
31
interviews or other appropriate methods. The preparatory readings allow the researcher to acknowledge about the investigation s
already carried out on the topic of your research, and do so to emphasize his new perspective and approach. Our review of the lite rature
was performed according to appropriate criteria. Then we have the exploratory interviews that will complement the readings a nd will
"allow the researcher to become aware of aspects of the issue for which his own experience and his reading, by itself, would not have
touched" Quivy and Campenhoudt (2003: 85). Some interviews were conducted so as to enrich the whole process to some customers
and employees of TAP Portugal.
According Quivy and Campenhoudt (2003:89) "the problem is the approach or theoretical perspective that we decided to adopt to treat
the problem posed by the question of departure. One way is to examine the phenomena being studied”. This study is of paramount
importance these days, due to fierce competition from low-cost airlines, as these have a high competitive level to flagship companies,
such as TAP Portugal. A study conducted by the company, published in Público newspaper on 23/06/2011, highlights the estimated
long-term losses, pointing to a revenue shortfall, "based on a year-cruise, the impact on future income can-will translate into a reduction of
more than billion, considering only the base of Easyjet, and more than two billion euros, if there is the entry of Ryanair, "says the study,
therefore, is to analyze all relevant the sources of brand value can cause the flagship companies stand out from the others, thus
implementing marketing strategies accordingly.
The authors Quivy and Campenhoudt state that (2003:150) "the analysis model is the natural extension of the problem, articulating in
operational milestones and the clues that will ultimately be retained to guide the work of observation and analysis consis tent." It consists of
the construction of concepts and the definition of falsifiable hypotheses, thereby achieving a coherent analytical framework. Quivy
Campenhoudt and show that (2003:136) "a hypothesis is a ratio that provides a relation between two ter ms, which, as the case may be
concepts or phenomena. One hypothesis is therefore a proportion provisional an assumption must be verified. " The hypothesis presents
itself as a provisional answer to the question of departure and that will confirm or deny the operational hypothesis (Hill and Hill, 1998).
So, we introduce the general hypothesis and the respective working hypothesis of our research.
General Hypothesis: The good results of the company TAP Portugal are due to the perception of its users, with rega rd to the
sources of its brand value or brand equity.
Then the general hypothesis should be translated into operational hypotheses, and these will be more specific and written to indicate
the nature of statistical operations necessary for the statistical a nalysis required, so that we achieve the goals we set ourselves for this
investigation (Hill and Hill, 1998). Before enumerating the working hypothesis of this research should provide some informati on about
the topic in question, which allowed us to thus arrive at the formulation of hypotheses presented later, which as we have said, will be
based on the conceptual model of David Aaker (1991), which examines the value of a mark second set of perceptions obtained by
consumers, which is the analysis to be developed in this investigation.
It is quite important to distinguish between product and brand. According to Cravens et al (1987:375) "a product is something that is
potentially valuable for a target market due to the benefits or satisfaction it provides, inc luding objects, services, organizations, places,
people and ideas," while a "brand is a name, term, sign, symbol or design, or a combination of them, intended to identify the goods or
services of one seller or group of sellers and to differentiate them fro m their competitors," according to the American Marketing
Association.
In view of Holt (2005) considering a new product just released, although it has a name, a logo and own traits, characteristic signs of a
brand, this fact does not exist yet, because despite the signs, these are empty, because the product has not yet absorbed the history and
experiences of consumers. According to the same author, consumers value brands primarily by its identity value, ie, those cap able of
embodying the ideals they admire and brands that help them express what they want to be. A brand then arises when several "authors",
these being, companies, industries, intermediaries and consumers, tell stories about the same. According to Keller (1998) has a brand
value when consumers react more favorably to the product from the time they know and identify the brand. This differential effect
occurs at cognitive, affective and behavioral and facilitates the process of consumer decision.
According to Aaker (1991, 1996) the value of the brand is a set of assets, as, loyalty or brand loyalty, brand loyalty, which is the degree
of connection with the consumer and the brand that makes the client prefers not choose other competing brands, the reputation , brand
awareness, is the degree of brand awareness among consumers, the perceived quality, perceived quality, which is the value that the
consumer gives the product beyond the physical attributes and real good and which is reflected in the amount you're willing t o pay and
associations, brand associations, the set of meanings that the consumer attaches to the brand revealed in the ability to evoke a feeling in
the mind of the consumer. Thus the management of brand value has to contemplate investment strategies that create and maintai n
these assets (Aaker and Joachimstraler, 2000; Kotler and Keller, 2006). The strength of the mark depends on the integrated
management of all elements of the mark. These elements must be associated with the name and symbol of the brand. A change in one
can affect all other assets of the brand (Keller, 1998).
32
According to Caldas and Godinho (2007) fewer consumers choose their investments and acquisitions based on the technical
characteristics and specific to products or services. Due to the fact that nowadays it is possibl e to virtually all competitors rely on
technologies for the development and production of their products and services.
A listing of working hypotheses were prepared taking into account the four incorporating the active sources of the value of t he mark
previously made.

H1: There is a positive relationship between the perceived quality of the brand and brand equity TAP Portugal TAP Portugal brand.
Zeithaml et al (1996) argue that the perceived quality of a service is a result of the comparison of perceptions with customer
expectations. The perceived quality is related to the level of customer satisfaction, customer satisfaction logo is a functio n of perceived
performance and expectations (Kotler, 1998). To Grönroos (1995) perceived quality of a service may hav e two dimensions: technical
and functional dimension, for example, in the case of TAP Portugal, transport a client from one location to another is the re sult of a
service (technical dimension) and the perception of quality will depend on how the service wa s provided (functional dimension).
According to Chen and Green (2009) perceived quality is identified as a component of brand value and hence the high perceived quality
leads consumers to choose one brand over other competitors. Therefore, the level of qua lity that the brand is perceived positively
contributes to brand equity.

H2: There is a positive relationship between brand loyalty and brand equity TAP Portugal TAP Portugal brand.
The goal of any marketing manager is the value that represents your brand in the market, make your users become faithful (Bolton and
Kannan, 2000), thus bringing benefits to both parties (Zineldin, 2006, The 'O'Brien and Jones, 1995; Kivetz and Simonson, 200 2;
Dowling and Uncles, 1997 to Duffy, 2002). The main goal is that users increase the use / purchase of the products / services offered by
the company and accelerate the lifecycle of loyalty (to encourage customers with one or two years to behave like the older cl ients and
profitable) by value your brand, and it is therefore appropriate to examine this correlation exists, although this is advocated by
numerous authors who have studied this phenomenon (Reichheld and Kenny, 1990, Reichheld and Sasser, 1990; Bidault and Jarillo ,
1995; Keaveney, 1995 , O'Brien and Jones, 1995; Reichheld and Teal, 1996; Oliver, 1997; Anderson and Mittal, 2000; Brito and Ramos,
2000; Ganesh, Arnold and Reynolds, 2000; Lara and Casado, 2002; Felvey apud Kumar et al. 2,008; LaBarbera and Mazursky, 1983,
Taylor and Baker, 1994, Zeithaml et al.1996, Bolton, 1998; Hart and Johnson, 1999). Thus, to the extent that consumers are brand loyal
to provide an increase of brand equity (Datta, 2003).

H3: There is a positive relationship between reputation and brand associations and brand equity TAP Portugal TAP Port ugal brand.
The notoriety refers to "the strength of a brand's presence in the consumer's mind" (Aaker, 1996:10). The reputation (brand awareness)
is measured according to the different ways the consumer remembers the brand (Aaker, 1996). According to Kell er (1993, 2003), brand
awareness plays an important role in consumer decision making. The associations, according to Aaker (1996:25) "may include product
attributes, a famous spokesperson, or a particular symbol (...) and are from brand identity - what the organization wants the brand means
in the minds their consumers.” The author also believes that an association will be stronger, the more we rely on our experiences or
exposures to communications and more supported by other links, including the reputation or brand loyalty. Therefore, brand
associations underlie the phenomenon of brand image and has influence at the time of purchase. Soon companies will have to bu ild a
solid foundation in defining the value of brands, since they have an active role in making purchasing decisions and stay on brand loyalty
(Aaker, 1991; Keller, 1993, 1998; Kotler, 2005 ). The brand associations that result in high brand awareness are positively r elated to
brand equity (Walsh and Mitchell, 2005).
With respect to the observation Quivy and Campenhoudt say (2003:205) "Observation comprise all the operations by which the analysis
model is confronted with observable". In this step of research will have to be answered to 4 fundamental questions, these being what?
Who? How? Observe what? In our research we used the method of indirect observation, questionnaire survey which "consists in placing
a set of respondents, (...) a series of questions relating to their social, professional or family, their opinions, their att itude toward options or
human and social issues, their expectations, their level of knowledge or awareness of an event or condition "( Quivy and Campenhoudt,
2003:188) because all of this is doubtless , the one that is most used and the easiest to implement and analyze in a quantitative manner
(Hill and Hill, 1998).
The preparation of a questionnaire is a difficult task, because for "adequately test the hypotheses that these Operational should be
specified prior to conducting the data collection. This implies that, when preparing the questionnaire, should have to take on General
Assumptions and decide not only which questions used to measure the variables associated with it, but also what kind of respo nse is most
appropriate for each question, what kind of measurement scale is associated with answers and methods are correct to analyze the data
"(Hill and Hill 2002:83, 84).
33
As such, and after analyzing the above items, for the construction and presentation of the questionnaire for this investigati on, some key
rules were followed, these being the questions were prepared according to a logical sequence and theme, placing more general
questions at the beginning, where it is desired to obtain information about the characteristics of cases and more detailed qu estions at
the end, the existence of several types of questions throughout the questionnaire, these being identified questions, question information
and questions of rest, the number of QB answer is, enough and appropriate for the type of research required; were avoided mos t
sensitive issues to respondents, the issues included are clear and easy to understand terms with, the absence of hypothetical questi ons,
the instructions are clear and fill where necessary present, the level of presentation were taken into account aesthetic care with spacing
issues with the font and the type of question, placed in different sections depending on its nature, an introduction was plac ed at the
beginning the questionnaire to solicit a request for cooperation, the reason for its application, the applic ation of the nature of the
questionnaire, the name of the educational institution, the formal declaration of confidentiality and anonymous nature of the
questionnaire.
Regarding the type of questions used were used close and semi-closed questions, due to the numerous advantages they offer in the
treatment of information collected, as the respondent have a limited number of typical responses that can choose. Some questi ons were
raised in the form of scales of attitudes, as the analysis of the reasons for the preference of TAP Portugal and the degree of satisfaction
and behavior towards the company, through Likert scales (presentation of a series of propositions that respondent indicates y our
agreement or inconcordância for each of them), being distributed in 5 points, strongly disagree, disagree, neither disagree nor agree,
agree and strongly agree, that will give the researcher the possibility to measure attitudes and opinions respondents and all ow the
qualitative characteristics are worked quantitative.
It has also prepared a pre-test questionnaire to ensure their applicability and determine if it is in accordance with the objectives set, poi
and second Carmo Ferreira (1998:145) "when a first version of the questionnaire is drafted, it is necessary to ensure its applicability in the
field and determine if it is in accordance with the objectives initially formulated by the investigator "working well with a pretest, which will
allow to establish whether all questions are understood by respondents, if the alterna tive responses to closed questions covering all the
answers possible if there are no issues useless, inadequate, too difficult, tendentious, if not lacking relevant issues and f inally test
whether the respondents do not consider the questionnaire too long, boring or difficult.
Our questionnaire was divided into two parts, the analysis of brand value or brand equity TAP Portugal and questions of perso nal
character. With regard to the value of the brand, are studied concepts such as loyalty, trust and commitment, organizational reputation
and image, perceived quality and associations. Perceived quality was studied through a closed question assessed on a Likert s cale of five
points, brand loyalty, through a semi-open question, notoriety and brand associations with a closed question assessed on a Likert scale
of five points and reasons why carry passengers travel with a semi-open question. The goals are to determine the degree of satisfaction
and user behavior in relation to the airline TAP Portugal, whether user s will always travel by TAP and reasons for performing the
journey. With regard to questions of a general nature, they serve to meet the sociodemographic characteristics of the members in the
obejtivo is knowing the age, sex, education level, occupation, monthly income and area of residence were studied through six questions,
five closed and one open question.
With regard to sampling the investigator has no effectively time nor resources sufficient to analyze each instance of the uni verse,
therefore, one should consider cases which constitute said universe, namely should choose a sample (Vilares and Coelho, 2005).
According to Ferreira and Carmo (1998) there are two major types of sampling techniques, the causal and probabilistic or non probabilistic causal or not, and, in our research we resort to a probabilistic sampling method does not / not causal, convenience
sampling, to we can get the results. The size of our sample of 201 responses, data were collected between February 15 and Mar ch 16,
2012, via internet, thus capturing a wider range of individuals and their characteristics.
Then we have the information analysis where we treat the information obtained in order to be able to compare the observed res ults
with those expected from the hypothesis. According Quivy and Campenhoudt (2003) this analysis comprises three operations, these
being the description of data, measurement of relationships between variables and finally, compare the observed relationships with
those expected from the hypothesis and measure the difference between the two, according to the authors (2003:239) "if it is zero or
very low, we conclude that the hypothesis is confirmed."
2.1. Characteristics of Users
With regard to issues of personal and for age, 3.1% of the sample has less than 20 years, 10.4% have more than 50 years, 24.4% are
between 41 and 50 years, 28.5 % is between 21 and 30 years and 33.7% between 31 and 40 years of age. Regarding the sex of the
sample is 47.7% male and 52.3% are female. According to the academic qualifications, 0.5% of the sample have basic education /
teaching other types of lower, 14.9% have a PhD / MSc, 19.6% have secondary education and 64.9% has the qualifications the
34
undergraduate level / bachelor. Finally, in terms of yield, 9% of the sample enjoys a monthly income of more than € 3,000, boasts 13.2%
between 2000 € and 3000 €, 19.6% enjoys an income between 1000 € and 2000 €, 27 5% gave no reference value and 30.7% of the
sample occupies less than 1000 € per month.
With regard to questions of a personal nature, we can conclude that most users are between 31-40 years, are female, have a qualification
to degree level / bachelor, have a monthly income of less than € 1,000 monthly and live primarily in large cities. Regarding occupation
72.5% are salaried workers, 7% are self-employed, 13% are students, 3.5% are unemployed and last about 4% are retired. This
question allowed the study objectives 6 and 9.
For the analysis of brand value TAP Portugal, began by studying the question always travels by the company, so check for the first
element that constitutes the brand value, loyalty and verified 42.6% of the sample presented always travels by TAP while the remaining
(57.4%), not always travel by this airline. As reasons for this situation are shown several, but the most mentioned is the price, with
42.5%. This question allowed the study objective 3.
2.2. Characterization of the reasons for members traveling by TAP
Regarding the reasons for traveling by the company, the main reason is the leisure with 58.5%, followed by business reason to 25.1%,
with 10.3% educational reasons, to visit relatives with 5.6% other reasons not listed with about 0.5%, this data will allow u s to study the
objective # 1. Then, we intend to know what are the main reasons for users to choose to travel to TAP, as elucidated in the next table
presented.
Table nº 1.1- Statistics that examine the reasons for traveling by TAP
Nº
Average
Standard Deviation
Variation coefficient
4.1. High safety and confidence conveyed by the company.
198
4,19
0,59
14%
4.2. Quality of service aboard.
197
4,14
0,45
11%
4.3. Quality of Meals.
196
4,03
0,65
16%
4.4. Prestige Company's aviation market.
198
4,29
0,57
13%
4.5. For the price charged by the company.
199
3,04
0,91
30%
4.6. Relationship between quality and price.
198
3,64
0,70
19%
4.7. Relationship of customer proximity.
198
3,75
0,67
18%
4.8. I get benefits outweigh the costs.
198
3,57
0,76
21%
4.9. For the good image that is present in the minds of all consumers.
193
4,01
0,54
13%
4.10. Compliance and respect for timetables.
199
3,88
0,64
16%
4.11. Effective treatment of baggage.
198
3,57
0,85
24%
4.12. Modernity and conservation status of its fleet.
197
4,12
0,56
14%
4.13. Competence and efficiency of pilots.
197
4,31
0,56
13%
4.14. High coverage of destinations.
195
3,73
0,75
20%
4.15. Stocks of 2 different classes on their aircraft.
197
3,76
0,71
19%
4.16. Speed in solving any problems and complaints management.
196
3,32
0,86
26%
Note: The values refer to the measurement scale: 1 - Strongly Disagree 2 - Disagree 3 - Neither Agree nor Disagree, 4 - Agree, 5 - Strongly Agree.
Source: Author's Own
The two reasons are more marked 4.14 and 4.5. so we can conclude that the reasons to travel by company relate to the privileg ed place
that it occupies, or the notoriety, perceived quality and associations that customers are the brand. The analysis of this question al lowed
the study objective 2.
2.3. Analysis of patient satisfaction and behavior of members Victoria
It is also important to know the behavior of the users face the situations presented reveal that important data concerning the fairness
shown in the following table.
35
Table nº 1.2 – Results of the views of members on behaviors presented
Nº
Average
Standard
Deviation
Variation
coefficient
7.1. I believe that, at the time, TAP Portugal, has offers greater value and higher quality compared with its
competitors.
193
3,81
0,65
17%
7.2. I will continue to travel by TAP Portugal is as profitable for me.
193
4,36
0,63
14%
7.3. I am particularly attached to this company compared to its other competitors.
195
3,86
0,87
22%
7.4. When I need to travel TAP Portugal is my first choice, although there are other companies that offer more
attractive prices.
195
3,19
1,23
38%
7.5. Whenever my friends or family ask me for advice on airlines, I recommend TAP Portugal.
194
3,79
0,80
21%
7.6. I intend to continue in the coming years to take advantage of the services offered by the current airline.
196
3,98
0,51
13%
Note: The values refer to the measurement scale: 1 - Strongly Disagree 2 - Disagree 3 - Neither Agree nor Disagree, 4 - Agree, 5 - Strongly Agree.
For average values, all items have a value higher than the average midpoint of the scale, which shows a behavior very positive view of
the company. The degree of agreement is thus superior to 7.2. I will continue to travel by TAP Portugal is as profitable for me, 7.6. I
intend to continue in the coming years to take advantage of the serv ices offered by the current airline and 7.3. I feel particularly
connected to this company compared to its other competitors. This question allowed the study objective # 4, so we may conclud e that
commitment that this relationship exists, since all items have an average value above the midpoint of the scale, as indeed we had
mentioned earlier.
2.4. Principal Component Factor Analysis
This method analyzes a set of variables in order to check whether it is possible to group the answers are interpreted identi cally by the
elements, determining your position in this set of variables. If so, the factors resulting from the analysis are associated w ith a set of
variables. Factor analysis allows proceed to the transformation of the variables that make up a scale in a smaller number of factors: the
major components. It becomes thus a set of initial variables correlated, in another set of uncorrelated variables, called the principal
components.
Factor Analysis Principal Component-Reasons to Choose TAP: We begin by performing tests KMO and Bartlett test according to the
reasons for choosing the degree of TAP and behavior of members and concluded that the data are suitable for the application o f factor
analysis. Regarding the reasons for the choice of TAP, justified the establishment of six factors presented in the following table. For each
of the components can present a designation that reflects the summary of the content of the variables that constitute it. Fac tor 1
referred to as Quality, Safety and Prestige (4.2, 4.3, 4.4, 4.5 e 4.14), is associated with variables related to safety, quality of pilots and
aircraft and transmitted by the trust company. Factor 2 titled Benefits and Image (4.1, 4.9, 4.10 e 4.13), adds variables that relate to
income that consumers can get when traveling on TAP and the very image of the company. Regarding the third factor is bound attributes
relating to the company's ability to meet deadlines and effective treatment of luggage, considering this factor as efficacy (4.11 e 4.12).
Factor 4 was designated price (4.6 e 4.7), because here are grouped variables linked to the price of the company and value for money.
For the Factor 5 relates to the coverage of destinations and proximity (4.8 e 4.15) to customers. Finally got the Factor 6, designated as
Classes and Post-sale (4.16 e 4.17), where it is shown the existence of infrastructures that allow you to have two types of passengers
on planes, as well as infrastructure that relate to the ability to solve problems quickly manage complaints. Analyzing in isolation we find
that the attributes that passengers raise more agreement, is without doubt the existence of two classes in aircraft, baggage and effective
treatment of high coverage of destinations, as revealed in the next table.
36
Table nº 1.3 – Results of exploratory factor analysis - reasons choice of TAP
Components
1
2
Communalities
3
4
5
6
4.2. High safety and confidence conveyed by the company.
,737
0,57
4.3. Quality of service aboard.
,748
0,69
4.4. Quality of Meals.
,570
0,589
4.5. Prestige Company's aviation market.
,658
0,586
4.14. Competence and efficiency of pilots.
,625
0,61
4.1. The advantages and benefits of the accumulation of miles are quite high.
,683
0,558
4.9. I get benefits outweigh the costs.
,515
0,654
4.10. For the good image that is present in the minds of all consumers.
,686
0,707
4.13. Modernity and conservation status of its fleet.
,617
0,706
4.11. Compliance and respect for timetables.
,781
0,696
4.12. Effective treatment of baggage.
,830
0,73
4.6. For the price charged by the company.
,735
0,641
4.7. Relationship between quality and price.
,736
0,682
4.8. Relationship of customer proximity.
,563
4.15. High coverage of destinations.
,803
0,61
0,679
4.16. Stocks of 2 different classes on their aircraft.
,870
0,802
4.17. Speed in solving any problems and complaints management.
,504
0,601
% Explained variance
15,7
Total variance explained
65,4
12,4
10,6
9,9
8,8
8,0
Note: Rotation Method: Varimax with Kaiser normalization. Rotation converged in 11 iterations. N = 200. The saturations great er than 0.4 are bolded.
Factor Analysis Principal Component-Behavior Program members TAP Victoria: Regarding the behavior of members, justified the
creation of two factors presented in the following table. For each of the components can present a designation that reflects the summary
of the content of the variables that constitute it. Factor 1 called Loyalty (7.3, 7.4, 7.5 e 7.6), is associated with variable connection to
the company, either by repeat purchase intention and continuity, either by recommendation from friends and family. Factor 2 t itled
Opportunities (7.1 e 7.2), adds variables offer greater customer value offered by the company and an intention to continue to enjoy the
services of the company since it is justified. Analyzing in isolation we find that the attributes that passengers raise more agreement, is
without doubt continue to travel around while TAP is profitable for me when I need to travel and TAP Portugal is my first choice
although there are other companies that offer lower prices attractive, as revealed in the next table.
Table nº 1.4. - Results of exploratory factor analysis - behavior of members
Components
1
2
Communa
lities
7.3. I am particularly attached to this company compared with other competitors.
,848
0,752
7.4. When I need to travel TAP Portugal is my first choice, although there are other companies that offer more attrac tive prices.
,856
0,762
7.5. Whenever my friends or family ask me for advice about companies, I recommend TAP Portugal.
,855
0,748
7.6. I intend to continue in the coming years to take advantage of the services offered by the company today.
,696
0,616
7.1. I believe that, at the time, TAP Portugal / TAP Victoria Programme, has offers greater value and higher quality compared with
its competitors.
,543
0,485
7.2. I will continue to travel by TAP Portugal is as profitable for me.
,932
0,874
% Explained variance
47,7
Total variance explained
70,6
22,9
Note: Rotation Method: Varimax with Kaiser normalization. Rotation converged in 3 iterations. Source: Author's Own
After collecting and analyzing the data should be analyzed to confirm or deny whether the general hypothesis or hypotheses of
operational, so that will provide the conclusions of this research, as such, is present then the analysis of each hypothesis.
37
 H1: There is a positive relationship between the perceived quality of the brand and bra nd equity TAP Portugal TAP Portugal brand.
To test Hypothesis 1 is necessary to perform the following analysis: checking the reasons that lead the public to travel with the company
to understand whether they relate to the asset value of the perceived quality of the brand.
Conclusions: All items analyzed have an average value above the midpoint of the scale, indicating that they all show satisfactory and
relevant. The reasons most marked related to perceived quality are 4.3. quality of service aboard, 4.4. q uality of meals and 4.13.
modernity and conservation status of its fleet. Perceived quality creates satisfaction and value for the customer consistentl y and
profitably. Kotler (2000) and Kotler and Keller (2006) draw attention to the close connection betwe en the product and service quality,
customer satisfaction and profitability.

H2: There is a positive relationship between brand loyalty and brand equity TAP Portugal TAP Portugal brand.
To test Hypothesis 2 is necessary to perform the following analyzes: check the behavior of the public in relation to the company and
examine whether customers often travel always by TAP Portugal. We can also test if customer loyalty is related to the fact th at the same
hold a loyalty card loyalty program of the airline, TAP Victoria (Miles card, Silver and Gold Winner).
Conclusions: The percentage traveling by TAP is always inferior to the card holders Miles Winner and top for card holders and Gold
Winner Silver Winner. This analysis reinforces the hypothesis H2, because the holders of loyalty cards with more privileges are
traveling more than ever for TAP, then the benefits that are offered to customers, which are higher as the type of card incre ases, make
that retention is a reality. (Zineldin, 2006; O'Brien and Jones, 1995; Dowling and Uncles, 1997 to Duffy, 2002).
As regards the behavior of the members, all items have an average value greater than the midpoint of the scale, which shows a very good
behavior against the company. The degree of agreement is thus superior to the 7.2.continuarei while traveling by TAP Portugal is
profitable for me, 7.6 I intend to continue in the coming years to take advantage of the services offered by the company and 7.3 present
me feel particularly connected to this company compared with other competitors. The concept of commitment, which is the type of
behavior expected by any organization "is a psychological force that binds the customer to the organization with which it does business"
(Fullerton, 2005:100) and Wong and Sohal (2002:35) say in which "compromising appears to be one of the most important variables to be
used for understanding the strength of a relationship marketing, and is a useful concept to measure the likelihood of a custo mer loyalty, as
well as to predict the frequency of future purchase" . This attitude of commitment is reflected in the desire and intention of the partners in
the relationship of the organization and continue to feel emotionally attached to it, relying on the stability of this relati onship (Morgan
and Hunt, 1994). From what we can affirm that confirms Hypothesis 2.

H3: There is a positive relationship between reputation and brand associations and brand equity TAP Portugal TAP Portugal brand.
To test Hypothesis 3 is necessary to perform the following analysis: the reasons why the public to travel with the company to
understand whether they relate to assets representing the value of the brand, reputation and associations.
Conclusions: All items analyzed have an average value above the midpoint of the scale, indicating that they all show satisfactory and
relevant. The reasons are more marked 4.14. competence and efficiency of the pilots and 4.5. company's reputation in the avia tion
market, 4.2. high security and confidence conveyed by the company and 4.10. the good image that is present in the minds of all
consumers. These can be grouped according to the assets constituting the brand value, the notoriety (4.14, 4.5, 4.2) and asso ciations
(4.10).
According to Nguyen and LeBlanc (2001:228), the image of an organization can be "described as the overall impression established in the
public mind about a company". Which is related to several physical and behavioral attributes of the organization such as the company
name, organizational structure, the variety of products / services, tradition, ideology and sense of quality communicated by each person
who interacts with the customers of the company "among other aspects. The consumer to choose their supplier does so based on the
evaluation of image / corporate positioning (Deschamps and Nayak, 1996), as such, the picture is "one of the most valuable assets that an
organization can have" (Gomes and Shapiro, 1993:84) and whose competitive advantage resulting from this form of differentiation of
the product / service "is virtually impossible for a competitor to duplicate it" (Webster, 1994:104).
We can thus conclude that it is clear the weight of importance of the company in the aviation market, thus giving a high impo rtance on
organizational image (associations), which is much more powerful, the more the remaining sources of value if prenunciarem. From what
we can affirm that all confirm the hypotheses presented, which incidentally come so reinforce previous studies (Aaker, 1991, 1996;
38
Atilgan et al., 2005; Rundle-Thiele and Bennett, 2001; Bharadwaj, Varadarajan and Fahy , 1993; Alba and Hutchinson, 1987, Walsh and
Mitchell, 2005).
For the general hypothesis, which is that good results will be the company TAP Portugal are due to the perception of its user s, with
regard to the sources of value of your brand, as occur most operating assumptions, we can conclude that this is checks. Especially
because it has been proven that users exhibit high degrees of loyalty or brand loyalty, perceived quality, reputation and ass ociations,
which are assets that constitute the value of a brand, through positive references that carry the willingness to pay a price high whe n the
uncertainties are reduced or eliminated, value the quality factor and its relationship with the price, have intentions to continue enjoying
the services of the company and value the organizational image as it is mainly for these reasons that choose to travel by TAP Portugal.
3. Conclusion
The evaluation of brand equity is important for all business managers, as well as giving insights about brands, it is also a starting point
for the development of a specific system for monitoring them (Aaker, 1996). Due to this fact, there are several academic stud ies on the
problem of the evaluation of brand equity, but the models Aaker (1991) and Keller (1993) are the most referenced and used by
academic studies (Anselmsson et al., 2007), because, and according to these same authors, there are similarities between thes e two
models, with regard to the importance of brand awareness, quality and brand associations. As such, our study was focused on these
models and in four dimensions, these being, perceived quality, brand loyalty and reputation and brand associations.
Comparing the results obtained with the proposed objectives, we can conclude tha t there is a relationship between the dimensions of
brand equity, according to the model of Aaker (1991, 1996), with the brand equity of the brand TAP Portugal, where the variab les
concerned explain the success of the brand, as proven in the results presented above in that the main reasons why passengers choose
TAP relate to the influence that the company is in the aviation market, for more items listed relate to the competence and efficiency of
the pilots (4.14), the company's reputation in the aviation ma rket (4.5) and high security and confidence conveyed by the company
(4.2). Regarding the behavior of members concordance was highest for the items, I will continue to travel by TAP Portugal is as
profitable for me (7.2), I intend to continue in the coming years to take advantage of the services offered by the current airline (7.6) and
I feel particularly connected to this company compared to its other competitors (7.3). The last two items presented show an e motional
connection to the brand, because they reveal a strong connection and continuity.
According to several authors, brands are a combination of several elements like name, symbol, or design that identifies one o r a set of
products and / or services. All these elements will define the brand, ie, will g ive an identity to the brand, which in turn will give a
direction, a purpose and a meaning to the brand and that will serve to try to influence consumers to prefer our brand . In a review of a
brand, certain characteristics are always evaluated by consumers: brand loyalty, brand awareness, perceived quality and brand image,
so this was the philosophy that governed the construction of the questionnaires. Tried to assess these four points in order t o meet the
author who based my study.
Through all the presented results we can conclude that the good results presented by TAP Portugal relate to the sources of its brand
value, especially when active loyalty, because according to Aaker (1991), brand loyalty is a core dimension of brand equity i f customers
continue to buy the same brand, even when competitors improve the characteristics of their products, their price or convenience, then it
means that there is substantial value in this brand, its symbol and slogans.
A large number of loyal consumers is a heritage of the brand, and has been identified as a major determinant of Brand Value (Rundle Thiele and Bennett, 2001). It is she who will ensure that forecasts of future earnings and cash flows will be realized. The c hallenge for
management is therefore to transform the consumer's emotional connection with the repeated mark on purchases over time. Thus,
marketers are responsible for creating lifestyles, not just products or services, because every purchase is generated by emot ional
factors. From the standpoint of management, brand equity provides sustainable competitive advantage for the firm (Bharadwaj,
Varadarajan and Fahy, 1993). In fact, this study has demonstrated the importance of marketing efforts on building strong bran ds. The
top managers should improve their performance in marketing strategies aimed at strengthening the determinants of brand equity of its
brands, including loyalty, because that way will ensure the sustainability of its core asset, the brand.
4. Limitations and conclusions implications.
The study has some limitations, which offer opportunities for future research to improve the work done, which are now presented. We
can then call the limitations found throughout and after the completion of this investigation, as such, were not distinguishe d in the
39
study, the different categories of clients, individuals and corporate, the study only focused on users residing in Portugal a nd the
limitation of sample size 200 answers.
The fact that in this study have opted for a quantitative approach does not pre clude future studies will not adopt methodologies with
qualitative in-depth interviews with consumers and marketing managers, to better characterize the dimensions of the model and the
actual situation of different lovebrands, which would serve to deepen the theme. Also interesting would be the study of the impact of the
marketing mix variables in building a lovebrand may constitute an important step in the development of the work presented.
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42
Session 2
43
Using the eye tracking
preference for vehicles
for
analysis
of
Neuromarketing; Neuroeconomics; eye tracking; declared preference
Caissa V. Sousa, Faculdade Novos Horizontes, caissaveloso@yahoo.com.br
José Edson Lara, Faculdades Pedro Leopoldo, jedson2010@hotmail.com
Erico Castro-Costa, Centro de Pesquisa Rene Rachou/Fiocruz, castro-costa@cpqrr.fiocruz.br
Carlos Alberto Gonçalves, Universidade Federal de Minas Gerais - UFMG/CEPEAD, carlos@face.ufmg.br
Henrique T. Akiba, Universidade de São Paulo – USP, henriqueakiba@gmail.com
Rodrigo A. Bressan, Universidade Federal de São Paulo – UNIFESP, rodrigobressan@gmail.com
Álvaro M. Dias, Universidade Federal de São Paulo – UNIFESP, alvaromd@usp.br
Abstract
From the early 1980 on, the Neuroscience showed significant advances regarding the knowledge and analysis of the brain
in vivo. Among these possibilities, the eye tracking, the ability to infer the relativ e role of different parts of the same object
in the sensory appropriation carried out, providing suggestions about the establishment of preference, which may lie
beyond the conscious domain and cannot therefore be prospected by means of questionnaires. Therefore, the present
research aimed to identify the main points of high valence and salience when observing three photos of brand /model
vehicles, allowing to infer the preferred points or the points to be rejected in each vehicle. 30 volunteers were selected
through accessibility in the city of São Paulo Brasil. They were exposed to Visual stimuli of the vehicles – Fiat Bravo, Ford
Focus and Hyndai I30. Utilizing the ViewPoint equipment Tracker, the map of the eye movements of individuals were
captured, identifying points of higher valence - i.e. points observed per region and higher salience, which is the analysis of
the pupil diameter. The data was presented with a questionnaire filled out manually by volunteers, allowing the crossing
of the data observed through the analysis of the eye tracking and the information stated. Among the study findings, the
inter cars analysis does not allow to infer that there is relationship between the car observed and the mean of the pupil
diameter, however, there is a relationship between the pupil diameter mean and the result of each projected item.
1 Introduction
From the late 1980 on and, more markedly, the early 1990, the neurosciences presented advances in the
development of new techniques of evaluation of the brain in vivo, enabling to capture the changes in the brain functioning
during mental stimulation, from non-invasive techniques. Besides representing benefits related to its initial proposal
which is the medical science, such advances have also contributed to the development of various fields of knowledge,
especially those related to the human and social sciences, notably in the areas of Economics and Marketing.
Specifically in respect of the identification of the attributes related to the decision-making of the individuals.
Recent studies have proved to be important contributions of Neurosciences, broadening the scope of the researchers’
evaluations. This new research approach, which broadens the possibilities for the study commonly used, such as
questionnaires and focal groups, it is named by the marketing researchers, neuromarketing (Braidot, 2005, 2009;
Lindstrom, 2008, 2009; Zaltman, 2003, 2008).
When compared to the conventional research methods used in the areas of business administration and
economics, as quantitative and qualitative research, it is possible to affirm that the Neuroeconomics and Neuromarketing
is a new field of knowledge to be reaffirmed as a transdisciplinary research space, involving the interaction of areas such
44
as: Anthropology, Psychology, Sociology, Marketing, Economics, and, especially, the Neurosciences for the study of
consumer behavior (Dias, 2010b; Soares Neto, 2007; Zaltman, 2003).
According to Zaltman (2003) it is necessary to recognize that mental activity arises from the i nteraction between
social processes and biological processes, so it is possible to imagine new ways of collecting and processing the data from
the understanding of the importance and the complexity of the human brain in decision-making. In this sense, the
contribution of Neuroscience to assist in identifying difficult aspects of expression and knowledge rather than other
research techniques, due to its unconscious aspect to the consumer.
Among the most used techniques it is cited the neuroimaging methods s uch as functional magnetic resonance
imaging (fMRI) (Harlé and Sanfey, 2012; McCabe et al., 2001; McClure et al., 2004; Venkatraman et al., 2012; Xue, 2009),
electromyography (EMG) (Dias, 2010a; Ohme, Matukin & Pacula-Lesniak, 2011; Soleymani et al., 2009) and the
magnetoencephalography (MEG) (Lee et al., 2009; Trinity, 2004); central neurophysiology techniques, such as the
electroencephalogram (EEG) (Dias, 2012; Ariely & Berns, 2010); In addition to the peripheral, neurophysiology techniques
involving the electrocardiogram and the measurement of the heart rate variability (HRV) (Crozet, 2009; Dias, 2010a,
2010b, 2012), Galvanic Skin Response (GSP) (Crozet, 2009; Dias, 2010a, 2012) and the eye tracking (López -Gil et al., 2010;
Schiessl, 2003, Theuner, 2008), which is the method proposed for assessment in this study.
The eye tracking consists in tracing the iris to identify what draws the consumer's attention in a particular
advertisement - object, picture, web site, or any other point chosen by the consumer. The method enables to identify the
areas of greatest interest of the observer (López-Gil et al., 2010; Schiessl, 2003). The eye tracker cameras are able to
monitor any movement of the eyes during the visual process. This technology allows to measure the time that the
individual spends looking at each specific part of the object in question and to check what region draws more attention
and the order of observation of the regions of interest (Theuner, 2008).
Considering that every second 11 million bits of information is received by all the senses, of which only 50 are
processed (Wilson, 2002), the understanding of which factors are responsible for the capture of attention is fundamental
to the establishment of the preference in the case of visually analyzed objects (Plassman, 2012). In this study, more
specifically, the objects elected for analysis were three cars with distinct brands and models: Fiat Bravo, Ford Focus and
Hyundai I30, all of them were Hatch models and they are marketed in Brazil.
It is believed that the technique when applied to the analysis of preference for cars allows the suggestions about
the relative role on the different parts of the object (headlight, front glass, mirror, etc.) in the sensory appropriation
carried out, providing suggestions about the leitmotiv of the establishment of the preference, which may be placed beyond
the conscious domain and cannot, therefore be prospected by means of questionnaires.
Starting from the arguments presented, the present study had as the main objective to identify the points of
valence and salience on the observation of the photos of three brand/models vehicles allowing to infer the preference
points or the points to be rejected in each vehicles.
2 Metrics based on the eye tracking as the support for the consumer behavior study
In this section the assumptions supporting the use of eye tracking as the metric of the research in the social
sciences, more specifically, in the study of consumer behavior are developed.
2.1 The development of consumer behavior studies
With the end of the Second World War, some factors such as the rapid overcoming of the repressed demand, the
spread of television as a mean of communication and access to advertisements, the emergence of shopping malls and
discount stores and the economic growth have led to new arrangements in the development of Marketing strategies. In the
new scenario, consumers went on to play a more active role. It is appropriate to know the consumers’ profile and
understand the motivations and the expectations about the products and services. This led the Marketing theory to emerge
in 1950 at the school of consumer behavior (Engel, Blackwell & Miniard, 2000; Sheth, Gardner & Garret, 1998).
Two groups distinguish in elaborating models to analyze consumer behavior: stimulus-reaction models, which are
mathematical models and aim to answer a specific question; and the explanatory models which study the reasons involved
45
in consumer decision-making (Goldstein & Adams, 2000). According to the authors, despite the important contributions,
the integrative models of consumer behavior are still considered unknown phenomena. Thus, there is a holistic and
holographic integration trend that along with the support of the consumer behavior theory and other theories, s uch as
neural networks and mental processes, will be able to broaden the understanding of factors yet unknown.
In this context, Mowen and Minor (2003), even without addressing the term "Neuromarketing", specifically, have
already indicated the importance to pay attention to physiological aspects to the measurement of the level of attention
given to a stimulus. The authors state that the measurement of the level of excitement generated by the stimulus can be an
important measurement to assess the impact of advertising campaigns, a context in which the eye tracking is portrayed by
Zikmund and Babin (2011) as a technique capable of revolutionizing the process of gathering information for the research
in marketing. In this respect, it should be noted that the authors understand the neurophysiological measurements as
promising techniques, although still embryonic. Somehow, it can be justified by the cost of the application when comparing
the cost of the traditional research methods such as the qualitative interviews or the surveys.
2.2 measurement of neurophysiology peripheral: eye tracking
The interest in discoveries about visual system is not new. According to Li, Munn and Pelz (2008), since the
beginning of the 19th century researchers have undertaken efforts to develop techniques to describe the movement of the
eyes. However, it was in the last thirty years that such studies developed more. It may be indicated among these studies:
electrooculography development, reflection of the cornea, pupil dilatation and the development of contact lenses (Joyce et
al., 2002).
In the case of eye tracking, specifically, its use in research of cognitive processes has already exceeded 100 years.
Currently, it is considered a great power of prediction (Brown, Jay & Harper, 2010; López-Gil et al., 2010), especially when
used in conjunction with other techniques, allowing the researcher to identify which areas of the figure presented are
more salient — that is, attract more attention – and which areas are less salient (Brown, Jay & Harper, 2010). It should be
noted that the salience represents the importance assigned to an attribute, indicating the importance for the consumers,
unlike the valence, representing the fact of an attitude toward something (goods, service, brand, advertising campaign,
etc.) be positive, negative or neutral (Engel, Blackwell & Miniard, 2000).
The eye tracking is based on the use of cameras that detect the position, direction and the diameter of the pupil.
These cameras can be set in the ambient, in front of the participant or a pair of glasses. The mapping of eye movements
provides information relevant to the study of preference for objects, giving precise information about the most interesting
(salient) of a given stimulus.
The conventional model of eye tracker is composed of cameras that are set on a pair of sunglasses fixed on the face
of the observer. An infrared light diode is set beside the camera attached next to the eye (about 30-40 mm away from the
eye). The eye camera captures these images while the central camera captures the scene that the observer is seeing.
Infrared light is invisible to the human eye and do not disturb or distract the observer. It has the advantage of reflecting
strongly the iris, regardless of their color. There is a cable attached to the glass that transmits the information to the
software for later transcription and analysis of the data (Read, Munn & Pelz, 2010).
2.3 Research Hypotheses
From the theoretical development presented, it was possible to formulate the followi ng research hypotheses
tested from the experiment proposed in the third section:

H1- It is possible from the eye tracking to identify areas of interest that are differentially met and they are
statistically significant in each of the cars.

H2- It is possible from the eye tracking to identify regions of interest that produce different patterns on the
peripheral neurophysiological activity, statistically significant, measured through levels of pupil dilatation.
46
3 Experimental Design and method
In order to the conduct the experiment 30 volunteers were randomly selected and the following exclusion criteria:
under the age of 18 years; employees of any of the organizations responsible for the brands surveyed; and individuals who
claim to possess at the time of the study any of the three vehicles researched.
Since the measure of the salience presents the point that most caught the attention of the individuals, given the
presented stimuli, it was wise to include at this stage of the research a measurement of qualitative character, in order to
make it possible to compare the subjects declarative information about preferences, with the points observed from the eye
tracking. This provides greater reliability for the data submitted since it enables to argue about points of highest salience
as preferred or rejected by the individuals.
Thus, the eye tracking was divided into two moments. At first, the data collection of the tracking experiment itself,
and in the second, the volunteers filled out a questionnaire intended to identify parameters of preference between the
vehicles analyzed. The eye tracking data collection took place in the Department of Experimental Psychology (PSE) of the
University of São Paulo (USP), Brazil.
The equipment used was the ViewPoint of Arrington Tracker Research, composed by a pair of glasses equipped
with three cameras, two pointing at each of the individual's eyes capturing what he is watching (stimulus). Two led were
positioned just below the cameras, which film the eye, projecting an infrared light in the eyeball allowing the distinction
between the iris and the pupil. The center of the pupil can be detected in three different ways: by reflection of the cornea,
the difference in light between the iris and the pupil or a combination of both. The adjustment of the cameras to the
correct image capture of the eye is done manually. This process is carried out through mathematical algorithms that
automatically calibrate the location of the center of the pupil and provide information about its diameter, direction and
time of fixation. This data is stored by the program and exported in ‘txt’ format, capable of being opened in Excel program.
ViewPoint Eye Tracker also generates a video which features points showing the eye movement of each of the indiv iduals'
eyes as well as the time of the video in milliseconds, and presents the look fixation regions, distinct by the colors red and
yellow, for the left and right eyes respectively. It is noticed that there is a larger concentration of the look fixation in some
regions rather than in others.
In order to create the maps related to eye movements and subsequent the segmentation of those parts of the
stimulus in the regions of interest, a software using the MATLAB 2010 has been developed. Through the data provided by
ViewPoint Eye Tracker, the interface of the analysis program produces the map of eye movements of the individual that is
plotted on the static image of the screen seen by the individual. This procedure is done screen by screen selecting the data
according to the time interval in which was presented to the screen (10 seconds for images with three cars and 15 for
these individually), obtaining specific maps of eye movements during that period in which it was presented to the screen.
Once the maps were plotted on the screen, the program allows the adjustment of the dispersion of the points in
the image, thus preventing any calibration error, individual to individual. One adjustable mask makes the selection of the
points within the region of interest, which are added up and pre-tabled. Thus, it is obtained the data related to the
frequency of the points in the region and the mean the pupil diameter for each eye inside it. The height and the width of
the masks are also tabled as well as the time interval in which the data were obtained which can be readily exported and
then statistically analyzed. For the calculations, the software uses the look fixation time (time that the individual shall not
make saccadic movements calculated through algorithms) and the direction. The time varies according to each individual.
Figure 1 presents an example of selecting points tracked at a given time of the measurement. The color red
represents the left eye and the yellow the right eye. On the right side of the figure the exported data for the software
reading is presented and the export in Excel-compatible format.
47
Figure 1 – analysis of eye tracking inter stimuli and export to set the tables
Source: survey data
Before starting the observation of the images effectively, the volunteers were asked to observe the screen, where
black squares appeared at different points in order to calibrate the equipment. In order to the conduct of the experiment,
the photos of the three vehicle models analyzed were used, following these parameters: the photographs were produced
for use in the research with the help of a professional photographer; all vehicles photographed were brand new, 2012
model; the similarity between the angles were kept; the vehicles had similar colors, keepi ng the specifications of each car
manufacturers.
Each volunteer observed a sequence of nine images, presented randomly, having one sequence with the three
vehicles showed separately, totaling three photos, plus a sequence with three vehicles displayed at the same time, for
which the order is reversed, comprising six more photos. The time of observation was10 seconds for images with three
simultaneous cars and 15 seconds for these individually.
Soon after ended the experiment data collection, a questionnaire was given to the volunteers in order to be filed
out. The purpose of the questionnaire was to collect information of those involved in the research, so that the data
observed through the eye tracking could be confronted. This procedure was adopted to have clarity on the salient points to
confront them with the points declared as preferred or rejected by the individuals of the research.
During the filling out of the questionnaire, the photos were again available for viewing, avoiding the need to evoke
memory, which could incur inconsistencies regarding the memories. The first question involved marking a point on a
continuous line, in a graphic rating scale, without attribution of values and with the extremes "did not like" and "liked a
lot". According to Cooper and Schindler (2011), the graphics rating scale allows the identification of the subtle differences
based on the record of the respondent. The markup should reflect the point that most approached the opinion about each
vehicle. Then, it was asked to point out three attributes the individual had most enjoyed and three attributes that he had
least enjoyed for each one of the vehicles. Some people said they ‘couldn’t find’ three attributes for marking, whether in
terms of "Most liked", "Least liked", or both. For these cases, it was allowed the markup of a smaller number of attributes.
In order to analyze the questionnaires, the quantitative content analysis technique was utilized. George (2006)
uses simple statistical techniques such as survey of frequency and percentages, allowing data to be presented in tables,
figures or models.
The results finding on the measurement of eye tracking were analyzed through Multivariate analysis of data. Hair
Jr. et al. (2005, p. 26), "refers to all statistical methods that simultaneously analyze multiple measures on each individual
or object of investigation. Any simultaneous analysis of more than two variables in a certain way can be considered
multivariate analysis ".
48
4 Results
4.1 Analysis of the self filled questionnaires
30 individuals were randomly chosen, respecting the exclusion criteria established. Of this total, 24 filled out the
‘age’ in the questionnaire. The composition has a minimum age of 18 years and a maximum of 59 years old. The age mean
was 26.96 and the standard deviation was 8.222.
On the scale of preference for each vehicle, there was an unnumbered straight line, ranging from 0 to 10
centimeters, for which the respondent should mark its level of preference. It may vary from one extreme to another. The
analysis of this scale consisted of marking (in centimeters), according to the measure pointed out by the respondent.
Regarding the preference, Hyundai I30 was the vehicle that obtained the highest mean, followed by Ford Focus and Fiat
Bravo. The highest minimum value was also observed for Hyundai I30 (4 cm), it was the only vehicle that got maximum
value of 10 centimeters, recalling that the 0 cm mark means that ‘didn't like’ anything and that the marking 10 cm means
you ‘liked it’ a lot.
Following the questionnaire, each individual was asked about the items that most enjoyed in each vehicle keeping
the descending order of what you liked the most to least. Considering the information for the Fiat Bravo, the items
declared as preferred, when grouping the three positions were: headlights (15.6); fog light (10) and design (7.8).
Concerning the items declared preferred for the Ford Focus: headlights (28.9); fog lights (13.3); and hood (10). For the
Hyundai I30, on the same note, we have: headlights (26.7) and design (20). It should be noted that the third classification,
in the case of Hyundai I30, appeared more pulverized: front design, logo, bumper and rearview mirror, with 6.7 markings
for each item.
Considering the question "didn't like it", for the Fiat Bravo, we have the following: 17.8 marked the rearview
mirror; 13.3% did not indicate any item; and 11.1% indicated the headlights (11.1%). For the Ford Focus remained the
rearview mirror as item that more displeases (16.7%), followed by the bumper (10%), and the front grille (6.7%).
The Hyundai I30 was the vehicle upon which more people abstained from presenting a rejected call. It is noted a
pulverization in markings when asked to indicate three items. For this vehicle, 24.4% of the respondents did not indicate
one or more items; the hood, the fog lights, the front grille and the rear view mirror were featured items indicated by 5.6%
of then people (each item).
4.2 eye tracking experiment analysis
The results of the measurement of the peripheral neurophysiology through eye tracking have involved intra and
inter cars analysis in relation to both, the heat maps and the pupil dilatation. The integration of both provides important
benefits to the definition of the aspects that most drew attention in the figures presented and through the crossing of the
data from the questionnaires, it was possible the "drawing" of the preferred or the rejected aspects in each one of the
vehicles. Before starting the presentation of the results, some clarifications are important to facilitate the understanding of
the metrics presented:

Eye1 – refers to the number of points traced into the mask (region of interest), in relation to all points
observed in the range of exposure of the image to the right eye (these points are shown in red).

Eye2 – number of points traced into the mask (region of interest), in relation to all points noted in the image
interval presented to the left eye (these points are shown in yellow).

Eye1P – pupil diameter mean into the mask in relation to the pupil diameter mean in the full sequence (all
images) for the right eye.

Eye2P – pupil diameter mean into the mask in relation to the pupil diameter mean in the full sequence (all
images) for the left eye.
From the descriptive statistical data, it is possible to observe the data close to both eyes the right and the left, for
the three vehicles. In order to verify the existence of comparable patterns between variables Eye1, Eye2, mean %, P eye 1,
49
P eye 2, P mean and the preference with the car variable (Fiat Bravo, Ford Focus or Hyundai I30), ANOVA was carried out.
Considering a 5% significance level, it is accepted the null hypothesis that there is equality between the variables Eye 1 (p
0.02747), Eye 2 (p 0.03885), mean (p 0.02986) and preference (p= 0.00014), as it can be seen in table 1, implying that they
are comparable considering the parameter given by the car.
Table 1 – comparison of variables tracked points and pupil diameter for the three vehicles
G. L.
Eye1% SS
Eye1%MS
Eye1% F
Eye1% p
Eye2% SS
Eye2% MS
Eye2% F
Eye2% p
Car
2
103,50
51,75
3,819
0,02747
78,47
39,23
3,430
0,03885
Error
60
813,11
13,55
686,24
11,44
Total
62
916,60
G.L.
%mean SS
%mean MS
%mean F
%mean p
Pref. SS
Pref. MS
Pref. F
Pref. p
Car
2
89,70
44,85
3,725
0,02986
86,002
43,001
10,2988
0,00014
Error
60
722,44
12,04
250,522
4,175
Total
62
812,14
764,71
336,524
Source: research data
In order to evaluate the discriminability between the variables Eye1, Eye2, mean% the and preference regarding
each car, the post hoc analysis and the Fischer test was carried out. The results permits to infer that there is discretionary
between the parameters analyzed between the Ford Focus and Hyundai I30, as well as between the Fiat Bravo and the
Hyundai I30, but there is no discriminability between the Fiat Bravo and the Ford Focus, considering p 0.05.
When comparing the inter cars it is possible to observe a difference between the I30 and the other cars, and the
difference is presented, especially in the variables: preference and observed points ratio (mean), in which the I30 has
higher results. The other two cars have similar results in terms of these variables, with a slight predominance of Ford
Focus over Fiat Bravo.
The variable pupil diameter (P) did not present statistically significant relationship with the car (Fiat Bravo, Ford
Focus and Hyundai I30).
Once you have analyzed the inter car parameter, the intra car analysis started in order to identify salient points
on each vehicle, making possible the comparison with data collected in the questionnaires filled out after the eye tracking.
To become possible the analysis, the figure of the cars was broken down into parts, from the identification of the regions
with the highest concentration of salient points. The following parts of the vehicles were considered: left headlight (LH)
right headlight (RH), manufacturer logo (LO), bumper (BO), front grille (FG), hood (HO) and rear view mirror (RV). In table
2, the descriptive statistics data were compiled, facilitating the comparison between items with larger and smaller mean
values, standard deviation, maximum and minimum variance.
Table 2 – comparison of descriptive statistics for cars
ITEM WITH THE HIGHEST
ITEM WITH LOWER
% mean
P mean
% mean
P mean
MEAN
Bravo BO
Focus RH
Focus RV
Bravo RV
STD. DEVATION
Bravo RH
I30 BO
Bravo RV
I30 FG
VARIÂNCE
Bravo RH
I30 BO
Bravo RV
I30 FG
MINIMUM
Bravo RH
Focus RH
I30 FG
Bravo RV
MAXIMUM
I30 RH
Focus BO
I30 RV
I30 HO
In table 3, we present the summary of the raw data by car/ point by region and the relationship of these with the
information stated and collected in the filled questionnaires on preferred or rejected aspects of each vehicle. One can see
50
that for the Fiat Bravo, the item "most liked" refers to the headlights, when putting together the right and left headlights,
they have obtained the highest mean points per region and pupil diameter. The same relationship was analyzed for the
Ford Focus, it appears in this case that the headlights reach higher scores on the salient points, and they were mostly
stated as preferred. As for the Fiat Bravo, the rear view mirrors also feature a level of rejection. In the case of Hyundai I30,
as already identified in the qualitative questionnaires, there seems to be greater dispersion among the categories "most
liked" and "didn't like it".
Table 3 - Summary of the raw data: points per parts versus stated preference
LIST OF ITEMS BY REGION
MEAN PUPIL DIAMETER
BRAVO
FOCUS
I 30
% mean
%
mean
%
mean
BRAVO
FOCUS
STATED IN RELATION TO PREFERENCE QUESTIONNAIRE
I 30
BRAVO
Relat.
ITEM
P mean
P mean
P mean
w/ +
liked
FOCUS
Relat.
w/ liked
Relat.
w/ +
I30
Relat.
w/ +
liked
Relat.
w/ liked
liked
Relat.
w/ liked
LEFT
HEADLIGHT
5,23507
8
7,0041
5
9,502
117
104,344
6
103,66
9
106,61
59
0,555556
0,22222
2
0,8888
89
0,1111
11
0,66666
7
0,2222
22
HIGHT
HEADLIGHT
8,75513
9
7,7356
22
8,974
806
108,435
7
109,42
61
107,69
23
0,555556
0,22222
2
0,8888
89
0,1111
11
0,66666
7
0,2222
22
LOGO
7,13945
6
4,9195
67
9,196
217
100,752
9
104,34
75
103,57
42
0,111111
0
0
0,1111
11
0,22222
2
0,3333
33
BUMPER
16,7187
6
11,285
39
12,47
758
107,935
9
107,92
75
104,36
07
0
0
0
0,2222
22
0,11111
1
0
FRONT
GRILLE
11,3342
3
9,1665
72
14,78
871
101,542
5
105,12
86
104,20
28
0,333333
0,33333
3
0,2222
22
0,3333
33
0,22222
2
0
HOOD
8,73152
2
12,846
13
15,68
577
102,110
8
102,05
06
104,34
1
0,222222
0,33333
3
0,3333
33
0,1111
11
0,11111
1
0,2222
22
REARVIEW
4,47867
2
4,1829
33
8,105
828
99,8336
5
103,67
95
103,55
96
0,111111
0,77777
8
0,3333
33
0,4444
44
0,33333
3
0
Factorial Anova was performed to compare the mean% and
the mean P with the variables car and item
separately, and together. It was found relationship between mean % and cars, mean% and item separately and mean P and
item according to the results shown in table 4.
Table 4 – Comparative Factorial ANOVAf for mean% and Mean P versus car and isolate items
gl
%mean SS
%mean MS
%mean F
%mean p
P mean SS
P mean MS
P mean F
P men p
CAR
2
326,01
163,00
5,3180
0,005762
94
47
1,95
0,145921
ITEM
CARRO*
ITEM
ERROR
6
1533,80
255,63
8,3400
0,000000
864
144
5,98
0,000011
12
444,42
37,03
1,2083
0,281017
283
24
0,98
0,471261
168
5149,42
30,65
4046
24
TOTAL
188
7453,64
5287
It is observed that at the level of 5% of significance when factorial Anova compares car, items and these combined
items demonstrated a statistically significant relationship between the variable mean %, mean and cars; and mean% and
cars, when examined in isolation, but not when conjugated. In practice, this implies that it is possible, for example, to
compare the Hyundai I30 with the Fiat Bravo and the bumper with the front grille, but not Fiat Bravo bumper with the
51
front grille of the Hyundai I30. As in the inter car analysis, there is no relationship between the car and mean P. However,
there is a relationship of this with the results of each item.
The post hoc analysis along with the Fischer test was carried out, showing the discriminability between the
Hyundai I30 and the other cars regarding the variable mean %.
Using the same method, the item-by-item comparison analysis of the discriminability between items was
performed LH x BO; LH x FG; LH x HO; RH x BO; RH x FG; RH x HO; LO x BO; LO x FG; LO x HO; BO x RT; FG x RV; and HO x
RV, considering the variable mean. Yet, it was analyzed the discriminability between items LH x RH; RH x LO; RH x FG; RH
x HO; RH x RV; LO x BO; BO x FG; BO x HO; BO x RV regarding the P mean.
Of the test results of Fischer for the items, he noted the existence of three groups with regard to average variable:
(i) BO x LH x RH x LO x RV; (ii) FG x LH x RH x LO x RV; and (iii) HO x LH x RH x LO x RV. With regard to variable p average,
two groups were observed: (i) RH x LH x LO x FG x HO x RV and, (ii) BO x LO x FG x HO x RV.
The cluster analysis was performed, observing the existence of two independent groups: (1) car, preference and
mean%; and (2) item and P mean. This analysis pointed out the existence of two distinct sampling universes. One
composed by the variables car, preference and mean; and the other composed by the variables item and P mean. Due to its
approach with the preference, it can be inferred that the mean % is correlated to the stimulus of valence, whereas mean P
is a measure correlated to salience.
5 final considerations
Although the eye tracking experiment did not provide information on the profile designed for the vehicles
consumers, it can largely contribute when the purpose to be reached includes the identification of physical attri butes with
high engagement that are represented by high levels of salience. What makes this measurement interesting is the
possibility to identify aspects that may not easily be stated by individuals, as the different parts that compose each one of
the vehicles analyzed.
Managerial implications related to this type of analysis can reveal aspects not reported in focus groups, in-depth
interviews or surveys. This possible non- statement would not be on purpose but it would occur because of the difficulty in
decomposing into pieces the object analyzed by the respondents. It is as if it were offered a piece of apple to an individual .
Only by observing this "piece", it is already possible to know what this is about, even if the whole object is not effectivel y
observed. In this case, the image would be formed, from an external stimulus, with representations in different localities of
the cerebral cortex. Given that the image can be formed through personal experiences, recalls or perception, this could be
distorted, or rather, not quite remembered, before a question about it.
As Braidot (2005; 2009), Lindstrom (2009) and Zaltman (2003) state, some aspects are difficult to measure for
people. Yet, some memories are fragile and the methods used to identify them can change them (Zaltman, 2003).
Making a connection with the object of the research- the vehicles It is possible to infer that these may evoke the
memory of individuals, either presented in part or as a whole. However, these can at the same time evoke memories
related to brand and past experiences, which can represent both a positive and negative point for the vehicle.
From the analysis of the results, it is possible to conclude that the research hypothesis H1 and H2 were supported, as
followed:

H1- It is observed that at the level of 5% of significance when factorial Anova compares car, items and these

combined items demonstrated a statistically significant relationship between the variable mean %, mean and
cars; and mean% and cars, when examined separately, but not when conjugated. As in the inter car analysis,
there is no relationship between car and mean P. However, there is a relationship of this with the results of
each salient item.
H2 – there was a relationship between the salient points and preference information stated or not declared to
the vehicles analyzed.
As well as in other research, regardless of the attention needed to methodological formulation, limiting
implications can be explained. Among these limitations, the ones were were spotted in the course of the work and deserve
to be highlighted are:
52



The study comprises a cross-sectional analysis. However, it does not focus on the perception changes of the
individuals in the course of the study or a posteriori.
Marketing efforts of any of the brands tested can involve a change in the perception of its attributes.
There was a need to limit a part of each vehicle analyzed. The front was chosen. An analysis of the back or the
side of the vehicle may result in different results concerning the preference.
In addition to conducting longitudinal studies and the analysis of different parts of the vehicles, it is suggested for
future studies the comparison with groups of individuals from other parts of the country or in other countries where the
same vehicles are marketed.
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54
Analysis of the usage and attitudes of payment
cards users in Bosnia and Herzegovina
Payment cards, credit cards, debit cards, payment card market, Bosnia and Herzegovina, consumer behavior
Almir Pestek, School of Economics and Business in Sarajevo, almir.pestek@efsa.unsa.ba
Lejla Helic-Dizdarevic, Intesa Sanpaolo bank BH, lejla.dizdarevic@intesanpaolocard.com
Abstract
In most countries of the world usage of payment cards is constantly growing, same as a number of payment cards. Card
business in Bosnia and Herzegovina (B&H) began to develop more than 40 years ago. In that time card users could choose
between two payment card issuers, today there are 25 card issuers of many types of payment cards (Central Bank of
Bosnia and Herzegovina, 2011).
Since the beginning of 1970’s there has been a growing interest in the study of marketing in the payment card industry.
Already, there are many studies that analyze the relationship between the usage of payment cards or card selections and
attitudes of card users, and the demographic and socio-economic characteristics of the card user. But, the conclusions of
these studies are often different, which disables generalizations about the behaviour of credit cards users.
The aim of this study was to investigate the current situation in B&H card market, establish payment card user profiles and
to explore opinions and attitudes of payment card users related to the card products they use. Except secondary data,
primary data were collected through the organization of two focus groups and through on-line questionnaire during 2012.
Payment card market of B&H is characterized by steady growth of number of payment cards and spending with payment
cards, but with 0.5 cards per capita, compared with countries in the region, B&H is a country with less number of cards,
and certainly represents a great potential for the payment card issuers. Among others, it was concluded that on the
payment card market of B&H leading payment cards brands are presented and the most common brand is Visa. The
respondents have one or two credit cards and they use all cards that they posses. The credit cards are mainly used for cash
withdrawals at ATMs and for payment at retail stores and least for online shopping. As most important benefits of using
credit cards are payment at retail stores and ATM cash withdrawals.
1. Introduction
Payment cards are important part of the financial and payment system of modern society. Payments cards are an
instrument of cashless payment, which allows the user to pay for goods and services, as well as to wi thdraw cash. Payment
cards are often referred to as credit cards, although not all cards offer the possibility of credit.
Wonglimpiyarat (2005) defines payment cards as variable repayment cards that offer a line of credit to its user; a payment
card user can spend money up to the pre-arranged spending limit. The payment card thus offers a self-service credit
without standard bank procedures. The spent amount must be repaid within a given period, or else an interest on the
remaining balance will be charged (Paxson and Wood, 1998). Lindsey (1994) defines the payment card as a plastic
payment card that has access to the revolving credit and cash. Accordingly, payment cards may also be used as an
identification document that identifies the user who has a credit account and allows him to make and accumulate
purchases, and pay the entire bill or part of it afterwards (Frazer, 1985). A contract on card use regulates terms of using
the card between the issuer and holder. Besides, the card-issuing bank also signs the contract on card acceptance with
retail outlets (Lindsey, 1994).
There are a few classifications of payment cards. According to Cirovic (2001), payment cards can be classified into three
groups:
55
1.
Debit cards – are used so that the user can use the resources on their current account. They can be used in shops
that have the POS devices, or at ATM’s.
2.
Credit cards – contain a defined credit limit that the holder can use when buying goods and services or
withdrawing cash. If the card holder does not pay off the debit balance at the end of the month, an interest is
charged.
3.
Prepaid cards – cards with a money amount paid-in in advance.
Similar to Cirovic, Worthington (1996) also distinguished three types of payment cards: the ‘pay later’ cards (credit cards),
‘pay now’ cards (debit cards), and ‘pay in advance’ cards (prepaid cards).
Card business is dealt with by banks which, in cooperation with leading payment systems MasterCard Worldwide and Visa
International issue various types of debit, charge and revolving cards. Besides banks, there are also non-bank card systems
in the market, such as American Express and Diners, which also issue different types of payment cards.
Since the holding and use of cards have increased considerably over the past few years, payment cards have become the
main source of financing/lending and method of payment (Ausbel, 1991, Slocum and Matthews, 1970, Brito and Hartley,
1995, Stavins, 2000, Bar-Gill 2004). The popularity of payment cards as a means of payment is due to the convenience of
not carrying cash, limited liability in case of card loss or theft, additional benefits such as dispute resolution (Chakravorti
1997, 2003, Chakravorti and Emmons 2001, Whitesell 1992).
Originally, cards were used for paying for luxury goods such as travel and accommodation However, cards are now
increasingly used for everyday shopping (Lee, 2000).
Payment cards satisfy two different needs: they are a means of payment and a source of credit (Ausbel 1991, Slocum and
Matthews, 1970, Brito and Hartley, 1995, Stavins 2000, Lee and Kwon 2002, Bar-Gill 2004).
2. Usage of payment cards
Despite the financial crisis, the usage of cards in most countries has grown to 9.7% (Capgenini,The Royal Bank of Scotland
and Efma, 2011).
Although payment cards are becoming more and more frequent in global economy, there are still differences in the
number of card users in individual countries. In general, the number of users is larger in developed countries, where
income per capita and spending power are high, and in the countries with more developed infrastructure for electronic
payment processing (Kaynak and Harcar, 2001). Almost 80% of the payment card market consists of cards by three
issuers (O’Connell, 2011):
1.
UnionPay 29.2%,
2.
Visa 28.6% and
3.
MasterCard 20.0%
UnionPay is a new card issuer in the market, which started issuing cards in 2002 (UnionPay, 2012) and, over less than ten
years, has become the largest card issuer in the world, with over $ 2.5 billion issued cards (Harper, 2012). The reason is
that it is a card issuer in the most populated world country – China, and 99.5% issued cards is in China itself (Harper,
2012).
3. Card business in Bosnia and Herzegovina
The first payment cards in B&H, i.e. former Yugoslavia, appeared in the 1960s. They were charge cards, Diners and
American Express (Novac.net, 2012), while the first Visa card was issued in 1984 (Rts, 2010).
Due to the dissolution of Yugoslavia and war events, card business was interrupted in 1992, and re-established as late as in
1999, when Turkish Ziraat Bank started issuing Visa credit cards (Turkish Ziraat Bank, 2012). It marked the redevelopment of card business in B&H, although the business had to be re-started from scratch, since it required both
issuing cards and establishing the entire infrastructure that was to allow the acceptance of cards at retail outlets and
withdrawing cash at ATMs.
56
B&H registers the presence of leading payment card brands: Visa, MasterCard, American Express, Diners, as well as two
local cards, BamCard and Moja kartica, which are issued by as many as 25 banks (Central Bank of Bosnia and Herzegovina,
2011). Over the past six years, there has been a significant increase in the number of users in B&H , as well as in spending
using the cards. However, the number of issued cards per capita (about 0.5 cards) is below the region’s average. For
instance, the number of issued cards per capita in Croatia is 2.2, and the average for the region is 0.74 (Babic, 2008).
At the end of 2005, the number of users amounted to 942,874, and in 2010 – to 1,693,466, which is almost double. The
largest number of issued cards was registered at the end of 2009, 1,773,758, which is a 10% increase compared to the
previous year (1,612,219). Unfortunately, the growth trend was stopped in 2010, when a decrease in the num ber of cards
of 4.7% compared to the previous year was recorded. The main reason for the decrease is the world economic crisis. The
value of transactions in the observed period increased 3.7 times, from 1.47 billion KM (751 million EUR) at the end of
2005 to 5.47 billion KM (2,8 billion EUR) at the end of 2010 (Central Bank of Bosnia and Herzegovina, 2011).
Card business parameters include the development of acceptance network, i.e. the number of ATMs and POS terminals,
which also increased considerably. At the end of 2005, the number of ATMs amounted to 397, and of POS terminals to
8,947, while in 2010 the number increased considerably and amounted to 1098 ATMs and 17,834 POS terminals. Still, the
number of ATMs in 2010 decreased by 257 compared to 2009, which was due to the crisis and consequences of bank
restructuring (Simic, 2011). An interesting fact is that the number of POS terminals records permanent growth despite the
crisis and retail outlets closures.
With respect to the brand presence, the most frequently issued cards are Visa cards (about 70% cards), with the note that
data on the number of Visa debit and credit cards are not available. However, if we take into account the fact that 83%
issued cards are debit cards, we can conclude that most Visa cards are debit cards, i.e. Visa Electron cards. The second
largest card issuer in B&H is MasterCard with a 29% share, while other issuers are represented only with 1%.
In 2010, B&H citizens used payment cards to make payments amounting to 5,469,028,587 KM (2,796,269,915 EUR), which
is an increase of 594,568,227 KM (303,997,907 EUR) compared to 2009. By the structure of ATM/POS spending, the value
of spending is: ATM 4,679,626,544 KM (2,392,655,059 EUR), i.e. 85%, and POS only 789,402,042 KM (403,614,855 EUR),
i.e. 15%. This fact tells us that payment cards still mostly serve to withdraw cash, and are insufficiently used to pay for
goods and services at retail outlets.
The average value of a transaction amounted to 138 KM (70,55 EUR) and was 3 KM (1,53 EUR) lower than in the last year,
when it amounted to 141 KM (72,1 EUR). The average annual turnover per card amounted to 3,229 KM (1,651 EUR) and
was by 450 KM (230 EUR) higher than in 2009, when it amounted to 2,779 KM (1,421 EUR). The increase in annual
turnover was due to a decrease in the number of cards, while the decrease in the average transaction value was caused by
the crisis, due to which citizens use cards for lower amounts.
Out of the overall spending amount of 5,469,028,587 KM (2,796,269,915 EUR), B&H citizens spent 271,290,278 KM
(138,708,517 EUR) abroad. Interestingly, the ATM/POS spending structure abroad is quite different compared to spending
in B&H. Citizens tend to use cards abroad more than in the country, 59% for payments at retail outlets, and 41% for cash
withdrawals.
4. Literature review
Since the 1970s, due to the accelerated growth of card industry, a growing interest is noticeable in marketing research in
card business, i.e. in payment card users’ behaviour. Consequently, we can now reliably say that consumers, when paying
with payment cards:




Make larger purchases in shops (Hirschman 1979),
Give higher tips (Feiberg 1986),
Underestimate or forget amounts of previous purchases (Soman 1999) and
Are more willing to purchase and have greater spending intent (Feinberg 1986).
Numerous studies showed that payment card users spend more compared to those who use cash or checks (Soman, 2001;
Feinberg, 1986; Hirschman, 1979). Feinberg (1986) concluded that payment cards make spending easier in terms of
motivation, probability and spent amounts. Besides, he concluded that the time of making the purchasing decision is
shorter when paying with a card compared to paying by cash. Chan (1997) discovered that for card users in Hong Kong,
57
when making a decision on using the card, the most important economic factors are: long interest-free term of payment
and low annual fee. Canner and Cyrnak (1986) showed that the main reason for using payment cards is convenience,
which in turn is in positive correlation with income and age. Kinsey (1981) established that the simplicity of payment and
risk of carrying cash are main reasons for using payment cards. Durkin (2001) observed that cards are favoured both due
to convenient use and as a source of revolving credit.
According to research conducted in Greece, there are five main factors that affect the selection of card: convenience of use
in Greece, security, cost-effectiveness, prestige and purchases abroad (Meidan and Davo, 1994). Gan et al. (2006)
concluded that in Singapore a low interest rate and absence of annual fee are the two factors that are valued the most
when selecting a credit card.
In the research conducted by Toner (1996), respondents were supposed to rank the most important characteristics when
choosing a new card. Results were as follows:
1.
2.
3.
4.
5.
6.
7.
Free annual membership,
Competitive interest rate,
Choice of the way of payment,
Balance check at ATMs,
Added value and convenience of card,
Discount when switching to another card, and
Balance check over the phone.
When a user wants to pay for his purchase, he should both make a decision on the selection of paying with card, and decide
about the card he will use. The selection of card is conditioned by the following factors (Hirschman, 1979):
 Personal characteristics (income, age, lifestyle, stage of lifecycle),
 Payment card characteristics (interest rate, prestige, limit, debt repayment),
 Characteristics of the object of purchase (price, size, complexity),
 Retail outlet’s policy on the way of payment and
 Characteristics of the moment of purchase (time needed for the purchase, available resources on the card,
other short-term foreseeable card benefits).
There are many studies that analyze the relationship between the payment card usage or the selection of card and user
attitudes, and demographic and users’ socio-economic characteristics, such as Slocum and Matthews (1969, 1970), who
discovered that social class affects users’ views when using payment cards.
Income is one of demographic variables that has a significant correlation with payment cards and their usage. Thus, for
instance, Kinsey (1981) discovered that high income is the most important determinant in holding the number of cards.
Besides, studies by Gan et al. (2008), Barker and Sekerkaya (1992), Wasberg et al. (1992), Heck (1987), Arora (1987) and
Mandell (1972) showed that the number of cards held by a user and greater card usage depends on the user’s income.
Chan (1997) compared active and inactive bank card users in Hong Kong and discovered that inactive users have lower
income than active ones.
Although most authors found that income significantly correlated with cards, Awh and Waters (1974), Choi and DeVaney
(1995) found out that the level of income is not a significant determinant when using payment cards , while Danes and Hira
(1990) showed that medium-income families use payment cards more than high-income ones. Persons with high income
attach greater significance to the card convenience than to the credit feature (Barker and Sekerkaya, 1992). Kaynak,
Kucukemiroglu and Ozmen (1995) found that lower and medium-income users value the credit feature more than card
security and convenient use.
Sex and marital status are determinants that have a significant correlation with cards (Kinsey, 1981; Slocum and
Matthews, 1970; Gan et al., 2008). White (1975) learned that single males use cards more than females. Besides, Adcock,
Hirschman and Goldstucker (1977) found that bank card users are mostly males.
On the contrary, Kinsey (1981) and Arora (1987) in their studies showed that females use cards more. Armstrong and
Craven (1993) studied the average number of cards relative to sex and established that females have a larger average
number of cards than males. In their research conducted in Turkey, Kaynak and Harcar (2001) concluded that there is no
significant difference between males and females in terms of holding a card. Ingra, and Pugh (1981) concluded that the
lowest number of cards is held by singles, young couples and retirees.
58
Some studies showed that there is a significant correlation between the sex and the type of purchase. Lindley, Rudolph and
Selby (1989) found a positive correlation between card usage for purchasing household items and clothes in females.
Hayhoe et al. (2000) studied consumer habits and card usage in student population and learned that females use cards to
pay for clothes, while males use them for buying electronics and entertainment.
Numerous researchers found that education is one of the most important demographic variables that is in pos itive
correlation with card usage. Canner and Luckett (1992) found that users’ monthly spending increases with the degree of
education. Danes and Hira (1990) and Barker and Sekerkaya (1992) found that persons with higher education use cards
more often.
Slocum and Matthews (1969) found that persons of lower socio-economic class typically use their payment cards for
installment financing, while persons in higher socio-economic groups use payment cards for convenient usage – daily
payments.
Research conducted by Dosen and Vajda (2011) on the card usage in student population in Croatia concluded that the
number of cards held by students does not imply higher monthly spending. Besides, they concluded that cards are mostly
used for withdrawing cash at ATMs, and least for online shopping.
Carow and Staten (1993) conducted research on the way of consumer payment at gasoline stations, i.e. whether the
consumers pay in cash or with a card. They learned that a person with higher degree of education, higher income and a
larger number of cards tend to pay with a card rather than in cash.
6. Paper aim and methodology
Studies dealing with the analysis of payment cards and individual factors’ impact have not so far been conducted in B&H .
The paper is aimed at studying the existing conditions in the B&H card market, and research users’ views and attitudes
related to the card products they use. This research provides basic information on the card market, and serves as a starting
basis for further research in the area.
The field research of card market in B&H was conducted by means of focus groups and questioning by correspondence,
using the structured questionnaire:
-
Two focus groups were organized in Sarajevo. Respondent groups with 7 and 6 participants respectively were
formed so as to include men and women who use payment cards and who belong to 18-35 and 36-60 age groups
respectively. The interviews were audio and video recorded. The average duration of the interviews was 90
minutes. In order to collect data, an identification questionnaire for socio-demographic data on participants and
their habits was designed and used, as well as a guide for focus group moderator.
-
The structured questionnaire developed by the authors based on the presented theoretical concepts was available
to all B&H payment car users who have Internet access, and was distributed via website www.surveymonkey.com.
Out of the 344 collected questionnaires, a total of 312 were assessed as valid. Sampling was done using the
snowball method. The research was conducted in June 2012.
7. Presentation of research results and discussion
The sample structure by socio-demographic characteristics:
-
Respondents of both sexes were represented, with female respondents prevailing (66.4%).
-
Most respondents were in the 26-35 age group (59.9%), followed by 36-45 (24.3%). The least represented age
group included respondents aged 55 to 65 (2.2%) and over 66 (2.6%).
-
Most respondents live with a partner/spouse and children (47%), followed by singles who live with parents
(17%). Out of the total number of respondents, 17.0% live with a partner/spouse without children, 14.1% are
singles who live in their own households, and only 4.1% respondents are single parents.
-
Most respondents are employed full-time (84.1%), followed by those employed occasionally (6.3%), unemployed
(4.1%), and the least represented groups are students (1.9%) and retirees (3.7%).
59
-
Most respondents have monthly income between 1,001 KM (512 EUR) and 1,500 KM (752 EUR) (29.6%), followed
by those with income between 501 KM (256 EUR) and 1,000 KM (512 EUR) (24.7%), and over 2,000 KM (1,002
EUR) (22.1%). The least represented respondents are those with income below 500 KM (255 UR) (3.7%).
According to official statistics, an average monthly salary in Bosnia and Herzegovina was 819 KM (418 EUR)
(Federal Office of Statistics, 2012).
-
Most respondents have university education (51.1%), then secondary education (21.5%). The percentage of
respondents with a master’s degree is 13.7%, and with vocational qualifications – 11.1%. Respondents with a PhD
were the least numerous (2.6%).
7.1. Number and type of payment cards
Analyzing the number of payment cards held by the respondents, it was concluded that over 60% respondents hold one or
two cards, i.e. one card is held by 33.7% and two by 33.7% respondents. Three payment cards are held by 20.2%
respondents, while fewest respondents hold more than five payment cards (1.6%). About 69.0% respondents claim to
actively use all the payment cards they hold.
Most respondents in the sample became users of their first card over five years ago (68.1%), followed by 3-5 year long
card users (23.3%), while fewest respondents have used their card for less than a year (1.1%).
As shown by data by Central Bank of B&H, the most represented card in the B&H market is Visa Electron, held by 85.9%
respondents. Maestro is held by 30.7%, while only 15.1% respondents hold the BamCard debit. Similar to debit cards, Visa
credit cards are again the most common. Thus most respondents use Visa credit card (65.3%), fol lowed by MasterCard
(44.4%), and American Express (25%). The least represented cards include Diners, with only 1.5% respondents, and
BamCard – 4.6%.
The analysis of the category of payment cards held by respondents revealed that most respondents have only a debit card
(49.8%), credit card is held only by 3.5% respondents, while 46.6% respondents have both types of card.
We were interested in the information as to whether the type of card (debit, credit) is affected by an independent variable,
and the application of linear regression to the dependent variable type of card concluded that respondents’ monthly
income has the strongest effect on the type of card they hold.
7.2. Analysis of factors affecting respondents’ satisfaction
Based on the results when assessing satisfaction with the card-issuing bank’s services, a ranking list of the service
importance can be created:
1.
2.
3.
4.
5.
6.
7.
Number of retail outlets
Customer service (kindness, attention paid, accuracy and speed of providing information …),
Number and spread of ATMs,
Staff’s expertise,
Procedure of card issuance
Additional card benefits, and
Costs of card issuance.
T-test showed that there is a statistically significant difference in average rankings of the satisfaction with the bank and its
services, t=3.58; p=0.006.
Using the non-parameter Kruskal Wallis test, the analysis was performed of factors that affect satisfaction with the cardissuing bank’s service. Most respondents who have held the card for over 5 years are statistically significantly satisfied
with the number and spread of ATMs, while respondents with secondary education are less satisfied with additional card
benefits compared to respondents with other types of education. There is dissatisfaction with costs of card issuance
compared to the number of cards the respondents hold. The type of card does not affect satisfaction with the card-issuing
bank, while higher-income respondents are more satisfied with the number of retail outlets compared to respondents with
lower average monthly income. Frequency of card usage and the number of active cards does not affect user satisfaction
with the card-issuing bank’s service.
60
7.3. Analysis of the correlation between card usage and socio-demographic characteristics
Some of important findings follow:
-
Hi-square test (χ2=1.200; p=0.273) did not reveal a significant correlation between the employment status and the
number of cards, though the highest percentage of respondents has two payment cards.
-
Hi-square test (χ2=10.03; p=0,002) revealed a statistically significant difference in the number of payment card
the respondents hold and the respondent’s sex. Most male respondents hold two or three cards, while female
respondents hold one or two cards.
-
Hi-square test (χ2=44.38; p=0,002) revealed statistical significance between the number of cards respondents
hold and their monthly income. The number of cards held by respondents increases together with the increase in
monthly income. Most cards are held by respondents with income over 2,000 KM (1,002 EUR).
-
Hi-square test (χ2=7.36; p=0.007) confirmed the statistically significant difference in the number of payment cards
and education level, where respondents with a higher education level hold a greater number of payment cards.
-
Hi-square test (χ2=20.45; p=0.000) showed that there is a statistically significant difference in the number of cards
held by a respondent and the period of holding a card. Respondents who have held the card for over five years
also hold a greater number of cards.
-
Hi-square test (χ2=3.84; p=0.05) showed that there is no statistically significant difference in the number of cards
held by respondents and age groups, and that respondents in the 26-35 hold the greatest number of cards
(59.9%); the number of cards from one to five are held by this group of respondents while the highest percentage
of those who hold over five cards includes respondents in the 36-45 age group.
-
Hi-square test (χ2=1.606; p=0.205) revealed that there is no statistically significant difference between the
number of cards held by respondents and their marital status, and confirmed that the number of cards is the
greatest in respondents who are married and have children.
Application of linear regression to the dependent variable “number of cards” led to the conclusion that the greatest impact
on the number of cards is exerted by monthly income and time passed from obtaining the first card; other socio demographic factors do not have a statistically significant effect on the number of cards held by respondents.
7.4. Analysis of the way of card usage
Analysis of the place of using payment cards revealed that 60% respondents use the card both in B&H and abroad, 38.9%
use card only in B&H while only 1.1% respondents use the card only abroad.
The analysis found that most respondents (95.5%) use the debit card to withdraw cash at ATM, then for paying at retail
outlets (84.7%), while 28.0% respondents use the debit card for online shopping. Interestingly, as many as 84.7%
respondents use the debit card for payments at retail outlets. It is well known that card issuers pay a lot of attention to
educating users on the advantages of using debit cards at retail outlets, since debit cards are mostly used for withdrawing
cash at ATMs. Therefore, although research results are above expectations, they should be taken with a grain of salt since
data by the Central Bank of B&H show the opposite.
Analysis also included the most common usage of respondents’ credit card. The analysis established that most
respondents (83.6%) use the credit card for payments at the retail outlets, while the same number of respondents uses the
credit card for online shopping (37.4%) and withdrawing cash at ATMs (37.4%).
Viewed by the frequency of card usage, the sample includes most respondents who use their card 2-3 times a week
(38.0%), then a few times a month (35.5%). A total of 20.1% use the card daily, 6.1% once a month, while only 0.4% use
the card a few times a year.
Hi-square test (χ2=3.68; p=0.045) showed that there is a statistically significant difference between the frequency of
payment card usage and monthly income, and that respondents with higher income use payment cards more frequently.
Application of linear regression on the dependent variable “frequency of card usage” concluded that the greatest effect on
the frequency of card usage is exerted by respondents’ age, employment status, average monthly income and education
level, while marital status and time passed from obtaining the first card have no effect.
61
Most respondents claimed that, for payments, they use cash, then debit cards, and then credit cards. Kruskal Wallis nonparameter test showed that there is a statistically significant difference between the frequency of the ways of payment and
kind of costs, df=4; p=0.006.
The following graph shows the kinds of costs for which cards or cash are used.
Graph 1. Comparison of payment of costs
The analysis of average monthly spending using cards concluded that most respondents use from 255 EUR to 512 EUR
(39.3%), while 33.9% respondents spend less than 255 EUR. The smallest number of respondents spends over 1.002 EUR
(6.4%), while 7.1% spend from 752 to 1.002 EUR.
Most respondents with monthly spending below 255 EUR have one payment card (45.3%). Respondents with the 255 1.002 EUR monthly income typically hold two cards. Respondents with the spending over 1.002 EUR hold three or more
cards.
Hi-square test (χ2=39.17; p=0.000) shows a statistically significant correlation between the average monthly spending
using cards and the number of cards held by respondents. The increase in spending also increases the number of cards
held by respondents.
Application of Pearson’s correlation concluded that the number of cards is in positive correlation with active usage, time of
obtaining the first card, type of card, and monthly spending, p<0.05.
Active card usage correlates with the time of obtaining the card (p=0.019), and type of card (p<0.05).
Monthly spending using the card correlates with the number of cards the respondent holds (p<0.05), time of obtaining the
card (p<0.027) and type of card (p<0.05).
Hi-square test and Pearson’s correlation showed that the number of cards and monthly spending are in positive
correlation, and we can therefore conclude that spending using cards increases when the number of cards held by
respondents increases.
62
Table 1: Correlation between independent variables
Number
of cards
Number of
cards
Pearson Correlation
Sig. (2-tailed)
1
.359**
.000
.268**
.000
Type
of
card
.611**
.000
Active
usage
N
Pearson Correlation
Sig. (2-tailed)
312
.359**
.000
303
1
285
.140*
.019
283
.226**
.000
280
.103
.087
Time
of
obtaining
N
Pearson Correlation
Sig. (2-tailed)
303
.268**
.000
303
.140*
.019
279
1
277
.261**
.000
275
.132*
.027
Type
card
N
Pearson Correlation
Sig. (2-tailed)
285
.611**
.000
279
.226**
.000
285
.261**
.000
283
1
280
.273**
.000
N
Pearson Correlation
283
.375**
277
.103
283
.132*
283
.273**
278
1
Sig. (2-tailed)
.000
.087
.027
.000
N
280
275
280
278
Monthly
spending
of
Active
usage
Time of
obtaining
Monthly
spending
.375**
.000
280
Analyzing the obtained responses about the efficiency of cost control using the card, it was concluded that 32%
respondents agree that card usage allows a better cost control, while 30.9% respondents disagree with this statement. Out
of the total number of respondents, 18% have no opinion, 15.1% strongly disagrees and 4.0% strongly agrees.
Hi-square test (χ2=84.00; p=0.000) showed that there is a statistically significant difference in the obtained answers, and
that opinions on whether card usage allows better cost control are divided. However, application of Anova test on
assessing responses concluded that the average ranking of 2.79±1.16 reveals that respondents do not have a clearly
articulated view on whether they agree or disagree with the statement, that there is no statistically significant difference
and that opinions are divided, F=0.697; p=0.628.
By ranking the benefits of card usage, the best rating was given to the possibility of paying at retail outlets 2.48±1.60,
followed by the possibility of withdrawing cash at ATMs 2.53±1.66. The lowest ranked benefit was that of online shopping,
3.15±1.50. Application of independent t-test concluded that there is no statistically significant difference in average ratings
of benefits offered by card usage, t=0.307, p=0.745. However, all benefit ratings are statistically significantly different f orm
rating 1 which, according to the ranking scale shows the most important benefit confirmed by the t-test, t1=25.58; p=0.000
(ranking follows the scale 1 – the most important, 5 – the least important).
Based on the obtained results, the ranking list of card benefits by importance can be derived as follows:
1.
2.
3.
4.
5.
Payment at retail outlets.
Possibility of cash withdrawal at ATMs,
Lending possibility,
Installment purchases, and
Online shopping.
Most respondents in the sample claimed that they do not have a minimum amount when deciding on the bill payment with
the card (62.9%), while 37.1% respondents replied that there is a minimum amount when deciding about paying a bill
with the card.
63
8. Conclusions
Payment card market has a permanent growth tendency across the world and in B&H as well. The number of cards issued
in B&H has doubled since 2005, and the value of transactions increased 3.7 times, which was accompanied by the
development of acceptance network.
The development of card industry has been accompanied by the interest in research of marketing in card business, i.e.
interest in collecting and systematizing data on payment card users and their behaviour. In B&H, there is a lack of studies
on payment card usage, while international studies are mainly focused on, e.g. only on a given type of cards or on a special
population of card users. With respect to research on the topic, it can be claimed that payment card users spend more
compared to those who use cash, that they are more willing to buy and that they have a greater i ntent to spend and make
larger purchases in shops.
As the research reveals, the leading brands of payment cards are present in the card market of B&H. Patterns of card users’
behaviour are same or similar to patterns of behaviour in the global market, whic h is presented in the overview of
available literature. Respondents hold one or two cards and actively use mostly all the cards. Cards are used for
withdrawing cash at ATMs and for paying at retail outlets, and least for online shopping. Cards are used two to three times
a week, and are used both in B&H and abroad. Respondents have mostly held the cards for over five years. Monthly
spending using cards amounts to between 255 and 512 EUR. The most represented brand is Visa, and payments at retail
outlets and withdrawing cash at ATMs were rated as the most important card benefits.
B&H is a great potential for card issuers. Therefore, bank and card company managers should regularly conduct research
on payment card users’ habits, in order to adjust their marketing strategies to individual user segments.
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67
Comércio eletrônico: perfil do consumidor de
Belo Horizonte/Brasil que realiza compras
online
Comércio Eletrônico, Internet, Oportunidades de Negócios, Comportamento do Consumidor, compras on line
Caissa V. Sousa, Faculdade Novos Horizontes, caissaveloso@yahoo.com.br
Stephanie S. Nunes, Faculdade FEAD, ssnunes30@yahoo.com.br
André F. A. Fagundes, Universidade Federal de Uberlândia/UF, fagundesandre@yahoo.com.br
Danilo De O. Sampaio, Universidade Federal de Juiz de Fora/UFJF, danilo.sampaio@ufjf.edu.br
Erich V. Sousa, Pontifícia Universidade Católica de Minas Gerais/PUC-MG, erichvale@gmail.com
Gustavo R. Cunha, Faculdade Novos Horizontes, gustavo.cunha@unihorizotnes.br
Abstract
Desde o início do século XXI o uso da internet como forma de conhecer e concomitantemente atender as necessidades dos
consumidores tem se mostrado relevante para as organizações que usam a rede como meio de comercialização. Assim, a
confiança nesse meio de transmissão de informações e o relacionamento com o cliente se destacam como papel
fundamental para a manutenção e a ampliação do canal de comunicação. Portanto, faz-se interessante ampliar o
conhecimento acerca do perfil do consumidor que utiliza a internet para realizar suas compras, bem como a identificação
de estímulos que o motivam a utilizar o e-commerce. No presente trabalho, realizou-se uma pesquisa online na cidade de
Belo Horizonte/Brasil, a partir de um questionário composto por 29 questões, subdivididas em três partes: (i) a primeira
destinada a identificar os hábitos dos respondentes em relação ao uso da internet; (ii) a segunda em relação aos hábitos de
compras pela internet; e (iii) a terceira trata-se da caracterização do respondente. Dentre os entrevistados, 93,7%
afirmaram já ter comprado por meio da internet e pretendem continuar comprando, 5,7% nunca compraram e 0,6% já
compraram e não pretendem comprar mais. Entre os motivos destacado para nunca terem comprado, ou optado por não
comprar mais pela internet, destacam-se o medo que as informações sejam utilizadas de maneira indevida e
impossibilidade de experimentar o produto/serviço. Os respondentes consideram de maior importância ao optar por uma
loja virtual a segurança (55,5%), o preço (48,8%) e a variedade de opções de produtos (38,4%).
1 INTRODUÇÃO
No atual cenário econômico, a evolução tecnológica impõe às organizações a necessidade de reformulação ou
adaptação de suas estratégias, com o propósito de adequar suas práticas de negócios à nova realidade comercial. Para
Kendzerki (2009), o final da década de 1990 marcou o início de uma nova era, na qual as empresas pas saram a conviver
com a utilização e disseminação do Marketing Digital, podendo esse representar um aliado à construção de
relacionamentos com os clientes e ampliação de seus negócios, independente de seu porte.
Desde o início do século XXI o uso da internet como forma de conhecer e concomitantemente atender as
necessidades dos consumidores tem se mostrado relevante para as organizações que usam a rede como meio de
comercialização, levando essas a investir em técnicas de marketing digital. (Duarte, 2002).
O Brasil configura como o 5º país com maior número de conexões à internet, com aproximadamente 76.000.000
usuários conectados à rede. A sua frente estão a China, os Estados Unidos, a Índia e o Japão (e-commerce, 2012a). O
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faturamento do setor alcançou R$22,5 bilhões em 2012, o que representa um crescimento de 26% em relação ao ano
anterior e 2400% em relação ao ano de 2002 (e-commerce, 2012b).
Segundo Lindgreen Jr. (2001), a causa primária para a expansão do comércio eletrônico foi o grande impacto que
este causou em áreas cruciais nas práticas empresariais, entre as quais a melhoria dos serviços ao cliente, as
oportunidades de desenvolvimento de mercado e a redução de custos e estoques.
Costa e Marques (2011) afirmam que a necessidade de se reconhecer o caráter diferenciado da internet ao
proporcionar maior interação com o usuário, especialmente se considerada a velocidade de transmissão das informações e
a facilidade de uso, dada a disseminação desse tipo de conhecimento.
Nesse prisma, a confiança nesse meio de transmissão de informações e relacionamento com o cliente se destaca
como papel fundamental para manutenção e ampliação do canal, o que segundo Hernandez, Ambrosina e Groh (2009, p.
13) as vezes pode ser dificultado, uma vez que “o comércio eletrônico é marcado pela natureza impessoal da internet em
que há pouca ou nenhuma presença física e contato pessoal, gerando pouca oportunidade para a criação e manutenção da
confiança”.
A partir das argumentações apresentadas, faz-se interessante ampliar o conhecimento acerca do perfil do
consumidor que utiliza a internet para realizar suas compras, bem como a identificação de estímulos que o motivam a
utilizar o e-commerce como meio de satisfazer suas necessidades de consumo (COSTA, 2009). Assim, limitando-se ao
estado de Minas Gerais, que é o segundo mais populoso do Brasil e sua capital, Belo Horizonte, compõe a terceira maior
aglomeração urbana do país, com aproximadamente 4,9 milhões de habitantes, em sua região metropolitana (Prefeitura de
Belo Horizonte, 2012), emerge a pergunta orientadora do trabalho: “Qual a percepção dos usuários da internet da região
de Belo Horizonte, em relação ao comércio eletrônico?”
O presente artigo tem como objetivo geral identificar as percepções relacionadas ao e-commerce, dos
consumidores da região metropolitana de Belo Horizonte. Para atingir tal objetivo, o trabalho propõe os seguintes
objetivos específicos: (a) identificar e caracterizar o perfil do consumidor virtual na região metropolitana de Belo
Horizonte; (b) investigar as razões que motivam o consumidor a comprar pela internet; (c) analisar as razões pelas quais
os usuários não utilizam o e-commerce; (d) conhecer os hábitos de consumo dos e-consumers da região de Belo Horizonte.
2 REFERENCIAL TEÓRICO
2.1 A Transição do Mecanicismo para Informacionalismo e o surgimento da internet
Como aborda Castells (2006), desde o início do século XX, o modelo tecnicista predominava nas organizações, no
qual o homem era considerado parte da máquina e sua função nas organizações era estritamente mecânica. As habilidades
intelectuais não eram interessantes para a organização, que por sua vez procurava extrair ao máximo sua capacidade em
realizar tarefas repetitivas que exigiam pouco do intelectual de cada indivíduo.
Para o autor esse modelo prevaleceu até meados da década de 1980, quando o modelo tecnicista/mecanicista deu
lugar a um novo paradigma, o informacionalismo. O desenvolvimento das tecnologias de informação e comunicação é visto
por Castells (1999; 2001; 2003) como o divisor de aguas entre um e outro paradigma, sendo o informacionalismo
essencial para o que chama de sociedade em rede. A sociedade em rede seria, nesse aspecto, uma sociedade conectada,
tanto cultural como economicamente.
Para Castells (2001) todo esse movimento conduziu as empresas a um modelo de gestão configurado pela
organização em redes. Nesse sentido, “a inovação tecnológica e a transformação organizacional com enfoque na
flexibilidade e na adaptabilidade foram absolutamente cruciais para garantir a velocidade e a eficiência da reestruturação”
(CASTELLS, 2006, p. 55).
Apesar de a internet não ser a o único representante desse novo paradigma caracterizado pelas tecnologias de
informação e comunicação, pode-se inferir que seja um dos mais importantes. Seu surgimento, – ou pelo menos a ideia do
que viria a ser internet – data do período compreendido entre a II Guerra Mundial, nos Estados Unidos. Na época o
engenheiro elétrico Vannevar Bush foi indicado para o escritório de Pesquisa e Desenvolvimento Científico, o qual era
responsável por reunir cientistas a fim de descobrir formas de criar operações de guerra modernas por meio da ciência. Ao
final da guerra, Vannevar Bush empenhou-se em formas de compartilhar informações mundialmente por meio da
comunidade científica (LINDGREN JR., 2001).
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Quatro anos mais tarde a internet foi criada pelo Departamento de Defesa dos Estados Unidos como uma rede
denominada ARPANET (Advanced Research Projects Agency Network). Segundo Ellsworth e Ellsworth (1995), a rede
utilizava um protocolo que possibilitava a disseminação de dados por meio de vários caminhos de comunicações entre
diferentes sistemas. Como é conhecido atualmente, o TCP/IP (Protocolo de Controle de Transmissão/Protocolo Internet),
foi adotado por outras redes tendo em vista seu grande êxito na década de 1970 (CASTELLS, 1999).
No início da década de 1980, usando a tecnologia desenvolvida pela ARPANET, a Fundação Nacional de Ciências
criou uma rede semelhante, a NSFNet, a qual tinha o propósito de permitir que pesquisadores e acadêmicos pudessem
acessar a rede. Contudo, suas conexões começaram a ser usadas para transferência de informações e correio eletrônico
entre localidades. Esse fato trouxe à luz a necessidade de estabelecer e aprimorar os objetivos da internet e de quais
pessoas ou grupos deveriam acessá-la (CASTELLS, 1999).
A internet no Brasil teve seu marco em 1991, com o início de um sistema acadêmico chamado RNP (Rede Nacional
de Pesquisa), ligado ao MCT (Ministério de Ciência e Tecnologia). Três anos mais tarde, a empresa Embratel lançou o
acesso online, de forma experimental, porém somente em 1995 ocorreu a liberação de acesso à internet ao setor privado a
fim de estudar como explorar seus benefícios comerciais (MENDES, 2008).
Para Castells (2003) as relações entre as empresas e seus fornecedores e consumidores, a administração, o
processo de produção e cooperação com outras empresas estão passando por transformações ocasionadas pela internet.
Seu uso adequado resulta em produtividade e competitividade para os negócios atuais, sendo pequenos ou grandes
negócios.
Como resultante desse processo de desenvolvimento, o comércio eletrônico passou a representar importante
canal de comunicação entre as empresas e seu público consumidor, seja ele composto por pessoas físicas, outras empresas
ou governo. A seção que segue tem por propósito apresentar características desse canal emergente.
2.2 Comércio Eletrônico: características e emergência
Segundo Novaes (2004, p. 75) o “comércio é a troca de produtos e de serviços por dinheiro”. Esse envolve
iniciativas de promoção do produto ou serviço ofertado, de capitação e fidelização de clientes por meio do relacionamento
estabelecido entre comprador e vendedor, envolve o pós-venda e o atendimento ao cliente. Nesse sentido, o comércio
engloba uma série de ações que as empresas utilizam, não somente como forma de vender o produto em si, mas conquistar
a confiança do cliente, para que este compre mais e possa contribuir como forma de propagação dos seus serviços
(marketing boca a boca).
Assim como as atividades envolvidas com o comércio sobrepõem a venda em si, o comércio online de mercadorias
e serviços abrange uma gama de atividades mais abrangente do que a troca, especificamente. Nesse aspecto, diversos
elementos como: o marketing, as vendas, o faturamento, os pedidos de compra, a escolha da forma de pagamento, e,
representando um caráter importante, a logística, estão envolvidos nesse tipo de comércio (MORAES, 2002).
Alguns elementos principais distinguem o comércio eletrônico do tradicional, e segundo Novaes (2004), podem
ser classificados em:

Comunicação – fornece suporte às trocas de informações entre vendedores e compradores;

Dados – permitem a criação e manutenção de bases de dados necessárias para o cliente, além de permitir o
levantamento e captação de informações sobre os consumidores;

Segurança – autentica a fonte da informação e garante a integridade e privacidade dos clientes. Ao contrário da
tradicional, nessa modalidade de comércio a segurança é de vital importância, uma vez que não há a proximidade
física entre consumidor e vendedor.
Na atualidade, a internet abrange a maior parte do comércio eletrônico. Segundo Turban, Rainer e Potter (2003),
existem vários tipos de comércio eletrônico, sendo os mais comuns o B2B (Business-to-business), o B2C (Business-toconsumer), o C2B (Consumers-to-business) e o C2C (Consumer-to-consumer).
O comércio B2B, segundo Novaes (2004, p. 82), “[...] se caracteriza por ter pessoas jurídicas nas duas pontas do
processo, ou seja, a comercialização não é dirigida às pessoas físicas.” Nesse tipo de comércio eletrônico, são desenvolvidos
70
sites na internet por empresas fornecedoras, possibilitando a troca de informações e obtenção de produtos pelas empresas
consumidoras.
Para Felipini (2006), o comércio eletrônico B2B tende a se tornar uma necessidade nos mercados competitivos,
tendo em vista que a capacidade de proporcionar benefícios tangíveis, tais como: redução de custos na realização de
pedidos; redução do preço da matéria-prima; maior controle dos processos licitatórios; e, a diminuição de erros nesses
processos, além da maior agilidade nos procedimentos de escolha de fornecedores ou compradores.
O comércio eletrônico B2C se caracteriza por transações entre empresa e consumidor - pessoa física, o qual efetua
buscas em relação a um determinado bem e/ou serviço ofertado (NOVAES, 2004). Para o autor, este tipo de comércio é
altamente volátil, o que pode ser explicado por ser uma forma de compras, ainda recente – e por que não nova, para alguns
consumidores -, que atrai clientes por motivos variados. O cliente do comércio eletrônico B2C geralmente procura por
preço e qualidade do produto/serviço, além de dar grande importância aos fatores logísticos ao efetuar seu pedido de
compras.
Ao contrário da B2C, a transação C2B ocorre quando os consumidores vendem para empresas. É uma modalidade
não tão conhecida como as demais. Nela, uma empresa anuncia na internet a intenção sobre algo que deseja adquirir,
dessa forma, o consumidor que possui o que a empresa necessita faz uma oferta de venda (MENDES, 2008). Por outro lado,
o comércio C2C já constitui uma modalidade de negociação mais comum. Geralmente abrange várias negociações de
valores pequenos, tendo como exemplos sites como o mercadolivre.com.
Os negócios C2C são realizados por meio de uma plataforma eletrônica na internet e intermediados por uma empresa que
oferece a infra-estrutura tecnológica e administrativa. Tanto o comprador quanto o vendedor devem estar cadastrados no
sistema e podem ser avaliados por todos os membros da comunidade de negócios pela quantidade de transações que já
realizaram e pelas notas que receberam em cada transação, numa espécie de ranking dos bons negociadores (FELIPINI,
2006).
O comércio eletrônico pode propiciar vantagens quando comparado ao comércio tradicional. Entre as principais
tem-se: a inserção instantânea no mercado – os produtos/serviços são expostos imediatamente, em nível nacional ou
internacional; relações mais ágeis – permite relações entre consumidores e vendedores de forma mais ágil; a redução da
assimetria informacional – a web possibilita análise rápida e abrangente de ofertas; redução da burocracia – diminuição do
uso de papéis, o que possibilita ganho de tempo, redução de custos e diminuição de erros; e por fim, análise mercadológica
facilitada – uso de informações dos clientes e transações possibilitam benefícios como definição de estratégias e
desenvolvimento de novos produtos/serviços (NOVAES, 2004).
Para Palácios e Sousa (2009, p. 207), as grandes vantagens dessa modalidade de comercialização são:






Capacidade de universalização das fontes de abastecimento;
Acesso pelo consumidor a todos os produtos de forma semelhante, independentemente de barreiras físicas;
Conveniência do canal, que está disponível 24 horas por dia;
Capacidade de aumento de sortimentos através de colaboração entre empresas;
Capacidade de acesso/comparação rápida, em tempo real, às diversas ofertas pelos consumidores,
possibilitando maiores opções de escolha;
Desenvolvimento de atividades de logística como elemento fundamental de todo o processo.
Novaes (2004) destaca possíveis problemas relacionados às transações eletrônicas dentre as quais tem -se as
fraudes, impostos (especialmente relacionados as transações que extrapolam fronteiras nacionais), risco à propriedade
intelectual, violação da confidencialidade e o afrouxamento da relação de confiança entre comprador e vendedor.
Entender a ascensão do comércio eletrônico não é uma tarefa trivial, dada a multiplicidade de fatores que podem
envolvê-la. No caso específico do Brasil, o e-commerce ganha destaque, especialmente, com a ascensão do poder aquisitivo
da classe C (considera-se classe C no Brasil a população com renda mensal entre 3 a 5 salários mínimos, o equivalente a
aproximadamente U$1030,0 a U$1720,0 mensais). Por meio do crédito fácil, os consumidores encontram na modalidade
de compra online conveniência, o que pode representar oportunidade para os empreendimentos (FELIPINI, 2010). Tal fato
é corroborado por Kayano (2008), que afirma que dado ao pouco tempo livre que as pessoas geralmente têm, a
modalidade de comércio eletrônico pode representar uma solução para o acesso às lojas, uma vez que, virtualmente,
permanecem abertas 24 horas por dias, durante todos os dias do ano.
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Ressalta-se que o alto grau de penetração do e-commerce no varejo brasileiro está intimamente relacionado ao
acesso da população à internet , que apresentou significativo aumento nos últimos 10 anos, passando de 13,98 milhões de
internautas, em 2002, para aproximadamente 79,9 milhões, em janeiro de 2012 (e-commerce, 2012a).
Apesar do mercado em expansão para o canal, não se pode deixar de enfatizar os possíveis transtornos desse
comércio. Segundo Lopes (2011) foram registradas quase cinco mil reclamações relacionadas a problemas de entrega,
entre novembro de 2010 e janeiro de 2011. Kayano (2008) destaca a falta de normas de em vigor, no país, que versem
sobre o comércio eletrônico. Nesse aspecto, as leis que regulamentam o setor, via de regra, seguem os padrões das mesmas
normas de proteção ao consumidor para o comércio tradicional.
O autor ainda destaca o receio daqueles que não acessam a internet para promover suas compras por receios
relacionados às questões de segurança, como ação de hackers, pragas virtuais, como spywares e cavalos de troia, difíceis de
serem detectados por usuários comuns e que podem lesar o usuário a partir da cópia de senhas e dados pessoais.
Na última década diversas pesquisas foram desenvolvidas com o intuito de estudar as variáveis envolvidas na
intenção de compra online. Entre esses estudos destaca-se os trabalhos de Pavlou (2003), que investigou a confiança
relacionada aos construtos: facilidade de uso percebida, utilidade percebida e risco percebido, como determinantes da
intenção comportamental.
Nakagawa (2008) adaptou o modelo de Pavlou (2003) e investigou a percepção de confiança como decorrente das
variáveis: facilidade de uso percebida, utilidade percebida, risco percebido e influência social, sendo que todas essas
variáveis levariam a intenção de compra online.
A facilidade de uso e a percepção de risco também foram variáveis encontradas por Heidjen, Verhagen e Creemers
(2003) como influenciadoras da atitude em relação às compras online.
Fernandes e Ramos (2010), em pesquisa realizada no Brasil, encontraram que as percepções de facilidade de uso,
de utilidade, de risco, confiança e influência social influenciam a intenção de compra online. Ainda segundo os autores, a
confiança influencia a facilidade de uso percebida, a percepção de utilidade e o risco percebido.
Na seção que segue é apresentada a modalidade de compras coletivas, representante de um novo segmento do
mercado de compras online.
2.4 As Compras Coletivas
Representante de um novo segmento de negócios, as compras coletivas encaixam-se em uma lógica conhecida e
praticada anteriormente, na qual, produtos são ofertados com descontos com o intuito de conseguir uma quantidade
maior de compradores. Assim, o vendedor tem uma menor margem de l ucro em cada unidade de produto, contudo, ao
final, o lucro é maior, pois maiores quantidades de unidades são vendidas (FELIPINI, 2011).
Apesar de ser um setor de compras novo, principalmente no Brasil, aonde se registra vendas em sites de compras
coletivas há aproximadamente dois anos, o seu crescimento está ocorrendo de forma rápida. Felipini (2011) afirma que
em seu primeiro ano, o setor registrou mais de mil sites operando nesta modalidade, tendo sido investidos centenas de
milhões de reais por ano em recursos no setor, além da entrada de players como Facebook e Google, empresas que estão
estabelecidas solidamente na internet e possuem acesso a milhões de usuários.
Contudo, como toda relação de compra e venda, as compras coletivas também possuem revezes. No último ano,
alguns dos principais sites de compras coletivas receberam mais de 12 mil queixas no Reclame Aqui – um dos principais
sites para registrar reclamações a respeito de produtos e serviços do Brasil. As principais reclamações inerentes às
compras coletivas relacionam-se à qualidade dos serviços ofertados (LOPES, 2011).
Para Ladeira et al. (2012), dado aos escassos estudos sobre o tema, não se tem claro os motivos que influenciam os
consumidores a aderirem a esse tipo de demanda, contudo, algumas hipóteses podem ser elaboradas, se relacionando a:
comodidade, menor preço e agilidade. Os autores testaram um modelo, em consumidores brasileiros, que avaliou a
influência de alguns construtos na adesão as compras coletivas: comportamento impulsivo, estilo perfeccionista, consumo
conspícuo, busca por exclusividade e influências pessoais. Como resultados, os autores confirmaram a hipótese de que o
comportamento impulsivo está diretamente relacionado à adesão as compras coletivas. Apesar de mostrar uma pequena
relação, o estilo perfeccionista também foi observado como relacionado à adesão as compras por esse canal. O consumo
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conspícuo foi o construto com maior relação à variável observada, devendo-se destacar a exibição destacada do produto e
o status de se comprar pelo canal online, como influenciadores. Observou-se também uma relação negativa entre a busca
por exclusividade e a influência de outras pessoas à adesão as compras online.
3 ASPECTOS METODOLÓGICOS
A presente pesquisa tem abordagem quantitativa e se classifica quanto aos fins como descritiva e quanto aos
meios como um estudo de campo. A coleta de dados se deu por meio da aplicação de questionário hospedado no site de
pesquisas ‘SurveyMonkey.com’. Ressalta-se que para a elaboração dos questionários dispensou-se a aplicação de técnicas
como grupos focais ou entrevistas em profundidade, uma vez que se tomou por referência os questionários adaptados dos
trabalhos de Costa (2009) e Duarte (2002).
O questionário aplicado foi composto de 29 questões, subdivididas em três partes: a primeira destinada a
identificar os hábitos dos respondentes em relação ao uso da internet, a segunda em relação aos hábitos de compras pela
internet e a terceira relacionada a aspectos sócio demográficos dos respondentes.
Como maneira de verificar a adequação do questionário e averiguar possíveis dúvidas com relação ao seu
preenchimento antes de iniciar a coleta de dados, foi aplicado um pré-teste para seis pessoas. Constatou-se que a escala
likert de 5 pontos estava mais adequada ao público pesquisado e que as questões permitiam fácil entendimento por parte
dos pesquisados. Após a adequação da escala do questionário, esse foi disponibilizado, ficando acessível por um período de
30 dias. A amostra foi constituída por acessibilidade, a partir de contatos dos pesquisadores nas redes sociais.
4 ANÁLISE DOS DADOS
O total de 175 pessoas respondeu completamente ao questionário online, sendo que todos residiam, na ocasião da
pesquisa, na Região Metropolitana de Belo Horizonte. Desse total, 50,9% foram do sexo feminino e 49,1% do sexo
masculino.
Quanto à faixa etária, os jovens de 18 a 24 anos somaram 33,1% das respostas, seguidos dos indivíduos entre 25 a
35 anos (30,9%), de 46 a 60 anos (24,0%) e por último os respondentes com idade entre 36 a 45 anos (12,0%). Com
relação ao estado civil, mais da metade são solteiros (52,6%), 39,4% são casados e 8% são separados/divorciados.
A maior parte dos entrevistados possui ensino superior incompleto (40,6%), seguidos de superior completo
(28,0%) e 22,9% especialização.
Mais da metade dos entrevistados trabalham fora de casa (52,9%), sendo que 36,2% trabalham e estudam
(36,2%). Na variável renda mensal familiar per capita os dados obtidos revelaram a participação significativa de classes
distintas: 37,6% entre U$680,0 a U$1360,0; 31,2% acima U$2750,0; 28,9% entre U$1720,0 a U$2400,0; e 2,3% com renda
de até U$340,0. Ainda, pode-se perceber a relevante participação da classe C nas compras virtuais.
Dos 175 respondentes, a maioria afirma acessar a internet diariamente, totalizando 94,9% das respostas. Quanto
ao local de acesso à internet, os locais mais acessados são: casa (93,7%) e trabalho (77,1%). Nota-se um percentual
considerável de respondentes que utilizam o telefone móvel para acessar a internet (23,4%), o que vem ao encontro com
as novas práticas dos consumidores com relação às mudanças e inovações tecnológicas, as quais possibilitam maior
acessibilidade de diferentes modos e de acordo com a disponibilidade dos consumidores.
Com relação às compras realizadas pela internet, 93,7% dos entrevistados afirmaram já ter comprado e que irão
comprar mais, 5,7% nunca compraram e 0,6% já compraram e não pretendem comprar mais. Dentre os principais motivos
para motivos para nunca ter comprado ou para ter parado de realizar compras online, apresentados pelos pesquisados:
medo que as informações sejam utilizadas de maneira indevida (90,9%) e impossibilidade de experimentar o
produto/serviço (90,9%). Sendo que a maioria não concorda com a afirmati va que as compras pela internet são difíceis e
complexas. Nota-se que os respondentes sabem que podem encontrar ofertas melhores nas lojas virtuais do que nas lojas
físicas, contudo quesitos como confiança e segurança os impedem de realizar compras pelo mo do virtual, o que corrobora
com os resultados apresentados por Nakagawa (2008), Pavlou (2003) e Heidjen, Verhagen e Creemers (2003).
A maior parte dos respondentes afirma comprar pela internet várias vezes ao ano (62,8%), de encontro a esse
dado, tem-se 1,2% que realizam compras online semanalmente, o que demonstra que o Comércio Eletrônico ainda não se
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tornou um hábito nas compras dos consumidores da região estudada. Com relação ao gasto médio nas compras online,
48,2% gasta em média de U$50,0 a U$150,0, sendo que as compras acima de U$500,00 resultam na minoria das respostas
(6,1%). Pode-se inferir com base nestes dados que, sendo o Comércio Eletrônico um novo meio de comercialização de
produtos e serviços no país, possui barreiras com relação à mudança de hábitos e cultural, causando obstáculos a compras
de valores mais elevados.
Quanto aos sites utilizados para realizar compras pela internet, a questão deixou livre para assinalar quais e
quantos tipos de sites o respondente utiliza. Destes, 72,0% afirmam utilizar sites de compras que vendem produtos
generalizados, não pertencendo a uma loja específica; 61,6% realizam suas compras nos sites das próprias lojas; e, 41,5%
utilizam sites de compras coletivas. Os resultados permitem visualizar um número relati vamente importante de pessoas
que realizam compras por meio de sites de compras coletivas, especialmente por ser este um canal compra online
relativamente novo no Brasil.
Quando solicitado aos respondentes que indicassem o quanto concordam com algumas ass ertivas relacionadas à
internet e as compras realizadas por esse meio, 61,6% concordam totalmente que quando fazem compras não rotineiras
gostam de pesquisar na internet; 57,9% afirmam que compram pela internet se esta oferecer preço mais baixo do que a
loja física; e, 50,0% afirmam que compram pela internet se esta oferecer promoções e/ou descontos.
Dentre os produtos mais comprados pela internet tem-se: passagens aéreas (57,9%); artigos de informática
(55,5%); e eletrônicos (54,9%), para essa questão os entrevistados poderiam marcar mais de uma opção. Outros produtos
não especificados entre as opções disponíveis também foram citados, como: instrumentos musicais, lentes de contato e
hospedagem em hotel. Em relação aos produtos que não compraria pela internet, 62,8% dos entrevistados não
comprariam veículos; 48,2% produtos alimentícios; 43,9% sapatos; e 41,5% vestuário. Os dados completos sobre as
categorias de produtos que poderiam ou não ser comprados pela internet se encontram disponíveis na tabela 1.
Tabela 1 – Produtos que costuma comprar versus que não compraria pela internet
Categoria de produto que costuma
comprar pela Internet
Categoria de produto que não
compraria pela Internet
Opções de Respostas
% Respostas
Total
Artigos de informática
55,5%
91
5,5%
9
Artigos para saúde & beleza
Artigos para bebês
Brinquedos
Cama e banho
25,6%
2,4%
42
4
15,9%
11,0%
26
18
12,2%
10,4%
28,0%
18,3%
20
17
46
30
4,9%
11,0%
2,4%
4,3%
8
18
4
7
17,1%
54,9%
28
90
4,9%
5,5%
8
9
Livros e Revistas
Passagens aéreas
38,4%
11,0%
47,0%
57,9%
63
18
77
95
6,7%
2,4%
2,4%
1,8%
11
4
4
3
Produtos alimentícios
Sapatos
Telefonia
Utilidades domésticas
Vestuário
Veículos
Outro (especifique)
5,5%
8,5%
18,9%
26,2%
15,9%
1,2%
3,7%
9
14
31
43
26
2
6
48,2%
43,9%
5,5%
6,7%
41,5%
62,8%
5,5%
79
72
9
11
68
103
9
CD's & DVD's
Cine & foto
Esporte & lazer
Eletrônicos
Eletrodomésticos
Games
% Respostas
Total
Fonte: Dados da pesquisa
Quando categorizado em relação ao gênero, as passagens aéreas continuam como o produto mais comprado, com
27,4% das marcações para o feminino e 30,5% para o masculino. Dentre produtos que não comprariam por esse canal, os
veículos continuam os mais rejeitados, com 31,7% para o feminino e 31,1% para o masculino. Os artigos de saúde e beleza
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são predominantemente comprados pelas mulheres (22,0%), quando comparados aos homens que fazem esse tipo de
compra (3,7%).
A estratificação pela faixa etária permite identificar que os entrevistados com idades entre 18 a 24 anos compram
mais produtos eletrônicos e artigos de informática (17,7%); com idades entre 25 a 35 (18,3%) e entre 46 a 60 anos (8,5%)
compram mais passagens aéreas; e para os entrevistados com idades entre 36 a 45 anos predominam as compras de
passagens aéreas (8,5%) e livros e revistas (8,5%).
Os entrevistaram relataram dar muita importância a quesitos como informações sobre o produto disponíveis no
site (90,2%); prazo de entrega (75,6%); e conveniência (49,4%). Com relação a ser conveniente poder comprar pela
internet e retirar o produto em uma loja física 23,8% concordam parcialmente com a afirmativa e 66,5% concordam
totalmente que é conveniente poder devolver em uma loja física um produto comprado pela internet. 49,4% concordam
totalmente que a apresentação visual do site faz a diferença na hora de escolher a loja virtual, o que novamente remonta a
pesquisas anteriores (Heidjen, Verhagen & Creemers, 2003; Hor-Meyll, 2006; Nakagawa, 2008; Pavlou, 2003; Silva Jr.,
Figueiredo & Araújo, 2011) que discutem a segurança percebida como relacionada a intenção de comprar pelo canal
online.
Sobre o caráter planejado das compras online, 37,8% dos entrevistados afirmaram que às vezes (porém nem
sempre) suas compras pela internet são planejadas; 27,4% afirmaram que fazem algum tipo de planejamento; 15,2%
afirmaram que raramente planejam; 12,8% afirmam que suas compras pela internet são sempre bem planejadas; e 6,7%
nunca planejam. Se somados os percentuais daqueles que às vezes (porém nem sempre) planejam, daqueles que
raramente planejam e daqueles que afirmam nunca planejar suas compras pela internet, tem-se o equivalente a 59,7%, o
que permite inferir que há relação positiva entre a impulsividade e a realização de compras pela internet, corroborando os
achados de Ladeira et al. (2008).
Dentre os principais motivos para comprar pela internet encontram-se: gostar de aproveitar as promoções
(36,6%) e conveniência (35,4%). Quando correlacionados os dados com o gênero dos respondentes, pode-se perceber que
para as mulheres, o principal motivo para comprar pela internet são as promoções (21,3%) e para os homens, a
conveniência é o principal motivo (20,1%). A tabela 2 apresenta os resultados estratificados pelo gênero.
Tabela 2 – Principal motivo para se comprar pela internet segundo o gênero
Opções de Respostas
Pouco tempo livre
Não gostar de ir à loja física
Pela conveniência
Gostar de aproveitar as promoções
Gostar de analisar as informações disponíveis
Total
Sexo
Feminino
9
4
25
35
10
83
%
5,5%
2,4%
15,2%
21,3%
6,1%
50,6%
Masculino
2
2
33
25
19
81
%
1,2%
1,2%
20,1%
15,2%
11,6%
49,4%
Ao serem questionados os itens mais importantes na escolha de uma loja virtual, os entrevistados consideram de
maior importância a segurança (55,5%), o preço (48,8%) e a variedade de produto (38,4%), ressalta-se que para essa
questão havia a opção de marcação de mais de uma opção.
Foi perguntado para os entrevistados quais seriam, em uma opinião pessoal, os principais fatores que
conduziriam ao sucesso de uma loja virtual. Segurança e confiabili dade foi o item mais marcado na opção ‘concordo
totalmente’, com 67,1% de concordância; em sequência tem-se a credibilidade do fornecedor junto ao mercado com
64,6%. Percebe-se novamente a importância dada à segurança e confiabilidade as quais devem ser fornecidas pelo
vendedor. A tabela 3 apresenta os resultados compilados para o questionamento evidenciado.
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Tabela 3 - Fatores relacionados ao sucesso do Comércio Eletrônico
Discordo
Totalmente
Discordo
Parcialmente
Não
Concordo/Nem
Discordo
Concordo
Parcialmente
Concordo
Totalmente
Facilidade na utilização do site
0,6% (1)
1,8% (3)
2,4% (4)
36,0% (59)
59,1% (97)
Layout, facilidade de conexão e
disponibilidade de produtos
1,2% (2)
1,2% (2)
4,3% (7)
39,0% (64)
54,3% (89)
Qualidade dos produtos
0,6% (1)
0,6% (1)
15,9% (26)
25,0% (41)
57,9% (95)
Fidelização de clientes
1,8% (3)
6,7% (11)
25,0% (41)
35,4% (58)
31,1% (51)
Estar atrelado a uma grande
empresa
0,6% (1)
4,3% (7)
22,6% (37)
36,6% (60)
36,0% (59)
Segurança e confiabilidade
0,6% (1)
3,0% (5)
6,7% (11)
22,6% (37)
67,1% (110)
Credibilidade do
junto ao mercado
0,6% (1)
1,2% (2)
9,1% (15)
24,4% (40)
64,6% (106)
Fatores avaliados
fornecedor
Quanto aos fatores relacionados às desvantagens do Comércio Eletrônico, conforme apresentado na tabela 4,
pode-se identificar que os respondentes ‘concordam totalmente’ com todas as assertivas relacionadas no questionário,
destacando-se a impossibilidade de experimentar o produto/serviço (58,5%) e a impossibilidade de realizar trocas
(50,6%).
Tabela 4 – Fatores relacionados a desvantagem do comércio eletrônico
Discordo
Discordo
Totalmente Parcialmente
Demora nos prazos de entrega
Não
Concordo/Nem
Discordo
Concordo
Parcialmente
Concordo
Totalmente
7,3% (12)
19,5% (32)
11,0% (18)
29,3% (48)
32,9% (54)
3,0% (5)
13,4% (22)
9,1% (15)
36,6% (60)
37,8% (62)
2,4% (4)
8,5% (14)
4,9% (8)
36,0% (59)
48,2% (79)
3,7% (6)
11,6% (19)
9,8% (16)
36,6% (60)
38,4% (63)
Excesso de propagandas e de
detalhes nos sites
8,0% (13)
9,8% (16)
11,7% (19)
30,7% (50)
39,9% (65)
Impossibilidade de realizar trocas
3,7% (6)
9,8% (16)
9,8% (16)
26,2% (43)
50,6% (83)
Impossibilidade de experimentar o
produto/serviço
2,4% (4)
5,5% (9)
11,0% (18)
22,6% (37)
58,5% (96)
Desconfiança em relação à qualidade
dos produtos
Receio de transmitir informações
bancárias
Sites que mais dificultam do que
facilitam as compras
5 CONSIDERAÇÕES FINAIS E SUGESTÕES
O presente trabalho propôs identificar as percepções dos consumidores de Belo Horizonte/Brasil, em relação ao ecommerce. Entre os respondentes houve uma participação homogênea de pessoas do sexo feminino e do sexo masculino,
destacando-se a variação na faixa etária, com escolaridade superior a oito anos.
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Quanto às razões que levam os consumidores a comprar pela internet, encontram-se principalmente as
promoções e descontos oferecidos, os preços mais baixos em relação a produtos vendidos em lojas físicas e comodidade
que esse modo de compra oferece. Uma vez que, realizando suas compras pela internet, o consumidor evita trânsito e filas,
além de poder comprar com mais facilidade em razão da sua falta de tempo diária. Em contrapartida, os usuários não
utilizam o e-commerce principalmente por receio de que as informações expostas sejam utilizadas de forma inadequada,
além de aspectos intangíveis relacionados às compras online, como a impossibilidade de ver (presencialmente) e tocar o
produto que está sendo comprado.
Considera-se que o lócus da pesquisa compreendeu uma limitação do estudo e sugere-se, nesse aspecto, que novas
pesquisas sejam realizadas, tanto em caráter longitudinal quanto em comparação a outras cidades e/ou países distintos,
uma vez que dada a facilidade de acesso, as compras online não estão restritas a um ambiente específico.
Sendo o Comércio Eletrônico um tema inovador e instigante, sugere-se para pesquisas futuras novas abordagens,
com relação às empresas (no âmbito de pequenas e grandes), que estão buscando no e-commerce novas oportunidades de
negócios. Concomitantemente estudar e analisar a preocupação em atender às demandas crescentes, em gerar e manter a
segurança nas transações, na qualidade dos produtos e serviços e no compromisso em realizar as entregas nos prazos
determinados. Neste contexto, cabe o estudo de treinamentos e capacitação dos novos perfis de empregados que o
Comércio Eletrônico exige. Outra vertente proposta seria a realização de estudos referentes às possibilidades que o
marketing agrega às organizações que têm o intuito de usar a plataforma eletrônica como canal de venda.
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78
The effects of revenue management strategies
in consumers behaviour
Revenue management; consumer behavior; loyalty; decision confidence; satisfaction with price.
María-Encarnación Andrés Martínez, UNIVERSIDAD DE CASTILLA-LA MANCHA, encarnacion.andres@uclm.es
Miguel-Ángel Gómez Borja, UNIVERSIDAD DE CASTILLA-LA MANCHA, miguelangel.gborja@uclm.es
Juan-Antonio Mondéjar Jiménez, UNIVERSIDAD DE CASTILLA-LA MANCHA, juanantonio.mondejar@uclm.es
Abstract
The use of revenue management strategies has lead to an increased overall in the tourist sector and concretely in the
airlines and hotel. In this paper we consider the case of an online hotel booking studing different revenue management
strategies used in this sector to analyse the effect of these strategies in the consumer behavior measure in terms of
satisfaction with price, loyalty and decision confidence, that is, our analysis considers the effect of the consumer rate
election in the consumer behaviour.
Analyzing the web of different hotels that used revenue management strategies, we have devel oped a simulated context
where some Internet users have make an online simulated process of hotel booking and after they answer some questions
in relation to aspects related with the satisfaction with price, loyalty and decision confidence. The results sho w that the
hotel election considering the different revenue management strategies has an important effect in the consumer loyalty
and in the satisfaction with price. However, the effect over the decision confidence is not statistically significant. Moreov er,
the best results in terms of the three dimensions of consumer behavior considered have been obtained by the hotel that
used a strategy based on the length of stay, that is, the hotel in which the price of room decreases from a certain number of
nights onwards. Without doubt these aspects are very important to the hotel manager in order to take decision around the
revenue management strategies used in this company.
1. Introduction
In the last years, the use of revenue management strategies has lead to an increase. The main reason for this has been the
consolidation of the Internet as sale channel and the objective to maximize profit by sellers as consequence of the decline
in demand caused by the current economic crisis. The main sector where these strategies are more used is the tourist
sector overall in the airlines and hotel.
Furthermore, the situation of the economy has seen product prices take on a very important role in consumer purchase
decisions. In this sense, consumers spend more time trying to gain a more accurate knowledge of the price of the products
they buy. As a result, price rate has become a much more relevant factor. As a starting point, prices can be considered the
monetary effort that consumers must make in order to obtain the right to consume or to use a product or service,
however, prices sometimes act as an indication of quality. The prices, sometimes, regulate supply and demand, as a
qualitative property of the product (Velasco, 1994). Although prices are one of the costs faced by c onsumers in a purchase
decision, there are others, such as the time of purchase, displacement costs and psychological costs. Nevertheless, prices
are among the easiest for consumers to analyze, which is why they play such an important role in consumer purc hase
decisions. The findings of Agárdi and Bauer (2000) showed that buyers selected at a point of sale and a rate to make a
purchase considered the price of a product to be the most decisive factor in their purchase decision.
Thus, we consider different revenue management strategies used in the hotel sector to analyse the effect of these
strategies in the consumer behavior measure in terms of satisfaction with price, loyalty and decision confidence.
Concretely, we consider the change in the price as consequence of the application of these strategies distinguished
strategies that alter price on the basis of accepting certain restrictions (consumers benefit from lower prices if they accept
79
that the booking cannot be changed), day of week (prices are lower when the booking is made on week days), location
(prices are lower when the hotel room does not have a special location, such as sea views) and the length of stay (from a
certain number of nights onwards, the price of the room decreases). Therefore, our analys is considers the effect of the
consumer rate election in the consumer behavior.
Section 2 of this paper analyses the revenue management strategy from a theoretical viewpoint, as well as the main
strategies used in the hotel sector. Section 3 considers the factors that most influence consumer behavior and the
hypotheses to be tested in relation to the influence that the revenue management strategy has on consumer behavior.
Section 4 conducts an empirical application, which makes it possible to test the verac ity of the hypotheses considered and
the main results obtained. Finally, the conclusion section includes the main conclusions and the future research lines.
2. Revenue management strategies
Revenue management strategy began to be popular in airlines but now, the demand situation has motivated to adapt this
strategy to their business in many companies such as hotels, wholesale tourism operators, catering and restaurants; urban
and suburban transport; long-distance passenger rail transport; electricity supply and generation, infrastructure for
commodity transport, use of roads and public streets. One definition of revenue management can be seen in Kimes (1994)
that consider this as a “method that helps to sell the correct product to the appropriate consumer, at the suitable moment
and price”, allowing in this way to maximise income (Kimes, 1994). The revenue management application entails
understanding consumers’ purchasing behaviour in order to compare present demand with the demand that is anticipated
in the future. This strategy identifies sales opportunities and using the price, adjustments are made in order to secure the
balance between supply and demand (Relihan, 1989).
Revenue management techniques imply the allocation of a fixed capacity to different prices to segments of consumers with
the purpose of maximizing income. These consumers, in order to benefit from price discounts, need to accept restrictions,
as well as penalties if they decide to make any change in relation to the purchase. This strategy c an be used in several
sectors with some elements in common: limited capacity, perishable products or services, the possibility of segmenting
demand and high overheads.
Thus, Berman (2005) defines revenue management as an effective mechanism to assign a service that fixes capacity and a
great scale of discounts. Therefore, the main goal of revenue management is to fit prices with the purpose of completing
available capacity, because the marginal cost of considering one more consumer in many services is small . This practice
usually divides time into two periods: one with discounts on prices for bookings in advance; and another where the rest of
capacity is set aside for consumers who are less sensitive to prices, this strategy working better with non-sensitive
consumers (Desiraju and Shugan, 1999).
Revenue management techniques are based on the prior segmentation of the market aiming to later establish different
prices according to each segment and thereby maximise income and available capacity (Selmi, 2010). T herefore, the
success of revenue management depends mainly on consumers, as they are the basis. Consequently, decision making is
also consumer-based (Shaw, 1992). This means that is very important to study the consumer behavior in order to know
the possible impact of use this strategy for the company in both the short term and also the long term.
By analysing previous research, such as Kimes (1994), Kimes (2002), Kimes and Wirtz (2002) and Selmi (2010) and hotel
websites, it is possible to consider different types of revenue management strategies on the basis of accepting conditions
to obtain a lower price. When several restrictions are imposed to obtain a lower price, the strategy is normally referred to
as revenue management based on restrictions. The most frequent restrictions are based on penalising changes or
cancellations or not returning money. This paper considers that consumers can benefit from lower prices if they accept
that the booking cannot be changed, therefore we have named this strategy as revenue management based on no changes.
The second type are the revenue management strategies based on day of week, that is, prices are different if the booking is
on weekdays or at weekends. Analysing hotel websites, we have observed that most hotels set lower prices when the
booking is made on weekdays, so that is the scenario considered in this paper.
The third type of strategy implies lower prices on the basis of location. In this case, consumers can obtain lower prices
when the hotel room does not have a special location, for example, sea views. This strategy is named revenue management
based on location. Finally, revenue management based on the length of stay implies that from a certain number of nights
80
onwards, the price of the room decreases. Therefore, consumers can obtain a discount if the booking exceeds a minimum
purchase amount.
The table 1 summarizes the main revenue management strategies considered in this paper.
Table 1. Revenue management strategies according to different criteria
No changes
Day of week
Location
Length of stay
Source: own elaboration
3. Consumer behavior
In the online purchasing process it is possible distinguish two phases (Cao et al., 2003). In the first phase, customers seek a
product in different pages and then they compare features, make a selection and finally order. This is known as ordering
process. Secondly, once done the order, when it comes to customers they can keep it or return it. This is known as
fulfillment process. In this paper we focus on the ordering process since although the information collection process
collects the entire purchase process, we never got to assess the situation once the reserve is made.
It should take into account that the channel in which the product is bought has a clear influence in the process price
perception (Yu 2008), tending online buyers to perceive higher prices in a more negative way than offline buyers. This
work has been developed in an online context so it must be taken into account that online buyers are well aware of the
price value, have a higher level of price awareness and have more propensities for buy than offline buyers.
The price perception generates a consumer behavior that it manifests in different responses and emotional reactions,
reactions which, in some cases can have consequences for the seller. In this paper we analyse the consumer behavior in
terms of satisfaction with price, loyalty and decision confidence measure since the price perception affects so consumer
satisfaction as in purchase intentions and actions (claims) developed against the seller (Campbell, 1999).
3.1. Decision confidence
Consumer confidence is defined as people feeling of being capable and safe regarding the decisions they made and their
behavior. It is the consequence of beliefs such as self-esteem, perception of control and dominion, as well as previous
experience.
Confidence is characterized for being multidimensional and consists of multiple levels. Thus, two factors can be
distinguished: on the one hand, the decision confidence considered as the ability to take decisions at the time of purchase
and use information; and, on the other hand, the protection defined as the ability to protect themselves from scams and
situations of unfairness (Bearden et al., 2001).
Consumer confidence is a variable that has more importance in the online channel than in the traditional channel due to
the fact that consumers make purchase decisions online always guided by the confidence (Urban et al., 2000). Anderson
and Srinivasan (2003) highlight decision confidence acquires great relevance on the Internet. It is because of that this
channel has greater risk to make purchases.
Garbarino and Lee (2003) conducted a study on the Internet to analyze consumer reactions to the use of dynamic pricing
and its influence on confidence. The results show that, as it had been noted in other studies (Dickson and Kalapurakal,
1994; Kahneman et al., 1986), consumers do not generally accept the changes in prices that are set according to demand,
considering how unfair and impacting negatively on confidence. Therefore, if customers come to believe that the price of a
product might go down in the very near future, and perhaps even on the same day, it is possible that some of them would
decide to hold off on a purchase. This reasoning allows us to establish the following hypothesis:
H1: The used revenue management strategy has an important effect in the decision confidence.
81
To measure decision confidence, we have used items for the different levels this variable comprises, namely: acquisition
and processing of information; formation of the set to consider and, finally, personal and social outcomes (Bearden et al.,
2001), using a seven-point likert scale (Chelminski and Coulter, 2007), these items appear in Table 2.
Table 2. Items used to measure: decision confidence, loyalty and satisfaction with price
Decision Confidence
Item
Description
DC1
DC2
I am confident about the decision
It was not very difficult for me to decide
I think that I have managed to find the best
option for me
I think that I have managed to gather all the
relevant information
I have made the right decision
I quickly identified the best option
DC3
DC4
DC5
DC6
Scale
Seven-point
Likert scale
(Strongly
Disagree (1)
and Strongly
Agree (7))
Source
Adapted from
Bearden et al.
(2001)
and
Chelminski
and
Coulter
(2007)
Loyalty
L1
I would recommend the hotel I have chosen
L2
If my friends or relatives were looking, I
would recommend this decision
L3
If I had to choose again, I would choose the
same hotel
L4
Although others offer lower prices, I think I
would still choose this hotel
Seven-point
Likert scale
(Strongly
Disagree (1)
and Strongly
Agree (7))
Adapted from
Zeithaml
et
al.
(1996);
Maxham and
Netemeyer
(2002);
Söderlund
(2006); Cater
and
Zabkar
(2009).
Adapted from
Zeithaml
et
al.
(1996);
Maxham and
Netemeyer
(2002)
Satisfation with price
SP1
SP2
SP3
SP4
SP5
SP6
In general, I am satisfied with the purchase I
have made
I am satisfied with the price paid for the room
I think that I have got the best possible
conditions for the price paid
I am happy with the price paid
The price paid makes me feel the product is
cheap
The price paid makes me feel good about my
purchase
Seven-point
Likert scale
(Strongly
Disagree (1)
and Strongly
Agree (7))
Adapted from
Voss et al.
(1998);
Ordóñez et al.
(2000);
Kauffman et
al. (2010)
We have used Likert-type scales as quantitative measurement because the scale’s points are equally spaced and the results
in Table 3 verify the fulfillment of conditions related with inter-ítems correlation higher than 0.3, correlations between
items and the average higher than 0.5 and a value of Cronbach alpha higher than 0.7 in the development of factorial
exploratory analysis.
82
Table 3. Conditions to use a summated scale for decision confidence
DC1
DC2
DC3
DC4
DC5
DC6
DC1
DC2
1
0.577**
0.636**
0.537**
0.692**
0.607**
1
0.497**
0.442**
0.498**
0.615**
DC3
DC4
DC5
1
0.661**
1
0.698**
0.629**
1
**
**
0.630
0.610
0,701**
Cronbach alpha 0.900
DC6
1
Correlation
items-average
0.825**
0.745**
0.838**
0.792**
0.855**
0.850**
Source: own elaboration. Note: ** statistically significant at 1% 1.
3.2. Loyalty
Loyalty can be defined as the desire to purchase again. This concept is particularly important for companies on the virtual
channel because loyal customers are the most profitable (Reichheld et al., 2000). As competition is increasing, companies
have to improve to maintain their customers’ loyalty (Bruhn and Grund, 2000).
Two types of loyalty can be distinguished: behavioural and attitudinal. Behavioral loyalty refers to the experience that has
been previously, while the attitudinal loyalty refers to the future behaviour (Zins, 2001). Auh et al. (2007) consider
attitudinal loyalty as the intentions to remain and the commitment to the organization. While behavioral loyalty refers
more to an effective behavior of repeat purchases. Thus, the attitudinal loyalty focuses more on the commitment of the
individual in relation to the behavior that will have in the future in relation with a brand or a service provider.
The use of these concepts of loyalty depends on the type of product concerned. Thus, in common consumer products it
uses behavioral loyalty, whereas products sporadic purchasing and services are convenient to use as measures of loyalty
both dimensions (Moliner and Berenguer, 2010). In this paper, we have considered the attitudinal loyalty that can be
linked to factors like word-of-mouth and repatronage (Söderlund, 2006).
Reynolds and Arnold (2000) pointed out that consumers tend to spread positive word-of mouth and make repeat
purchases when they feel they have a good relationship with the service provider. Benefits gained from such a relationship
include the discounts obtained with several revenue management strategies (Leisen and Prosser, 2004). Moreover,
Karkhanis (2013) established in the airline context that pricing play a moderating role in the process of building customer
loyalty. Chapuis (2005) showed that the revenue management strategy impacts on consumer’s loyalty. In this sense,
Shoemaker (2003) considered that revenue management destroys customer loyalty due to adverse effects on guests'
perception of the hotel because revenue management appears to be the type of opportunistic behavior that inhibits guests'
trust and loyalty. Therefore, the following hypotheses are proposed in this study
H2: The used revenue management strategy has an important effect in the loyalty.
Although some authors have distinguished three loyalty dimensions, namely word of mouth, price tolerance and
intentions to purchase again, we have focused on word of mouth and purchase intentions to measure loyalty, as in
Söderlund (2006). More specifically, we have used the items shown in Table 2. Moreover, Table 4 shows the compliance
with the conditions necessary to use a summated scale for loyalty.
1
The significant values in tables are indicative since the sample is non -probabilistic.
83
Table 4. Conditions to use a summated scale for loyalty
L1
L1
L2
L3
L4
1
0.908**
0.652**
0.484**
L2
L3
L4
1
0.635**
1
**
0.471
0.551**
1
Correlation
items-average
0.886**
0.877**
0.840**
0.770**
Source: own elaboration. Note: ** statistically significant at 1%.
3.3. Satisfation with price
Consumer satisfaction emerges when expectations prior to purchasing are fulfilled or surpassed. Satisfaction also refers to
an emotional state that occurs as a result of interaction between the customer and the service provider (Crosby et al.,
1990).
Zielke (2008) defines satisfaction with price as "an emotional reaction resulting from the interaction of cognitive and
affective mental processes that are caused and activated by specific experiences that take place in the presence of different
dimensions of price perception".
Satisfaction with the price, in some studies, is regarded as a construct that consists of multiple dimensions, which are:
price transparency; price-quality ratio; relative price; confidence in the price; price reliability and price fairness (Matzler
et al., 2006). However, Campbell (1999) focuses only on price fairness; Fornell et al. (1996) consider the price-quality ratio
and Varki and Colgate (2001) analyze the effect that price perception has on satisfaction and behavior.
Bolton and Lemon (1999) made a study on two services to learn how influences consumer satisfaction with price
customer in general satisfaction. The results show them that satisfaction with price has a positive impact on satisfaction
with the service provided.
Chapuis (2012) explores the effects of perceptions of fairness and trust in the relationshi ps between the practice of
revenue management and consumer satisfaction. The main conclusion is that the consumer’s satisfaction, when
confronting discriminations during the buying process or the selling period, may decrease. Thus, we formulate the
following hypothesis:
H3: The used revenue management strategy has an important effect in satisfation with price.
To measure satisfaction, we have focused on satisfaction with price, using the items shown in Table 2 adapted from Voss et
al. (1998), Ordóñez et al. (2000) and Kauffman et al.. (2010). Furthermore, table 5 shows as the inte-ítems correlation is
higher than 0.3, the correlations between items and the average higher than 0.5 and a value of Cronbach alpha of 0.928.
Table 5. Conditions to use a summated scale for satisfaction with price
SP1
SP2
SP3
SP4
SP5
SP6
SP1
SP2
1
0.784**
0.711**
0.733**
0.447**
0.686**
1
0.696**
0.932**
0.554**
0.753**
SP3
SP4
SP5
1
0.734**
1
0.562**
0.613**
1
**
**
0.699
0.785
0.672**
SP6
1
Correlation
items-average
0.838**
0.895**
0.854**
0.913**
0.755**
0.895**
Source: own elaboration. Note: ** statistically significant at 1%.
84
4. Empirical application
Analyzing the web of different hotels that used revenue management strategies, we hav e developed a simulated context in
order to obtain the sample information. Some Internet users purchase online have made an online simulated process of
hotel booking and after they answer some questions in relation to the perception of price fairness and aspects related with
the satisfaction with price, loyalty and decision confidence.
The study was undertaken by means of an online self-administered survey carried out between February, 29th 2012 and
March, 27th 2012 to a sample of 600 users. These users took the decision to book a hotel room in a simulated context of
five hotels with different revenue management strategies. The final number of questionnaires deemed valid once
incomplete ones had been ruled out was 541. The sample selection of individuals has been made considering quotas based
on the socio-demographic profile of Internet users who have bought sometimes on the Internet with aged between 16 and
74 years.
Taking into account the main objective of this paper we have calculated an indicator of deci sion confidence, loyalty and
satisfaction with price using an unweighted average of the value of each items used in order to measure these dimensions.
Using these averages we have used an univariate analysis of variance (ANOVA) to ascertain the differences in these
dimensions for hotels that use the different revenue management strategies analyzed in section 2. This analysis is a highly
versatile and powerful method of analysis in these cases and can be applied in different situations and with different
objectives.
In the first place, Table 6 includes the homogeneity test of the variance within groups, a necessary requisite in order to
select the statistics that we can use to compare their averages (ANOVA). We can see how for decision confidence and
satisfaction with price the null hypothesis of homogeneity is rejected. Therefore, we have used in these cases the Welch
statistic and for loyalty the F statistic to compare the averages.
Table 6. Test of homogeneity of variance. Levene’s statistic.
Variable
Levene’s
statistic
df1
df2
Sig.
Decision Confidence
Loyalty
Satisfaction with price
3.474
1.964
4.081
4
4
4
536
536
536
0.008
0.099
0.003
The Welch or F statistics displayed in Table 7, at the critical level of 0.05, verify the existence of significant differences
between the groups of consumer established in base of the revenue strategy selected in the hotel booking for loyalty and
satisfaction with price. However, the differences in terms of decision confidence are not statistically significant and
therefore, we can consider that there are not a clear difference in decision confidence on the base of the rate selected.
Table 7. Test of average equality (ANOVA).
F or Welch statistic.
Variable
Decision Confidence
Loyalty
Satisfaction with price
Statistic
Welch
F
Welch
Statistics
value
Sig.
1.754
3.262
3.713
0.142
0.012
0.007
These results indicate that consumers have archive different level of loyalty and satisfaction based on the rate selected.
Therefore, the hotel election considering the different revenue management strategies has an important effect in the
consumer loyalty and in the satisfaction with price, therefore we must accept the hypotheses two and three. However, the
effect over the decision confidence is not statistically significant, thus the first hypothesis is rejected. Furthermore, we are
interested in comparing each strategy to the rest in order to ascertain which strategies are the furthest apart and which
record the highest levels on average for each variable. For this, the Table 8 shows the average of loyalty and satisfaction
for each revenue management strategy.
85
Table 8. Average for each revenue management strategy.
Revenue Management
Decision
Loyalty
Satisfation with
Strategy based on
Confidence
average
price average
No changes
4.8884
4.6545
4.4571
Day of week
4.9211
4.5395
4.5263
Location
4.5714
4.4571
4.3857
No revenue management
4.8617
4.8936
4.6348
Length of stay
5.1117
5.0745
4.9787
Moreover, the best results in terms of the three dimensions of consumer behavior considered have been obtained by the
hotel that used a strategy based on the length of stay, that is, the hotel in which the price of room decreases from a certai n
number of nights onwards.
5. Conclusions and future research lines
The increase in the use of different revenue management strategies in the hotel sector makes neccesary consider the effect
of this strategies in consumer behaviour. In an effort to understand consumers’ behaviors, this paper explores the
influences of different revenue management strategies on consumer behavior in terms of decision confidence, loyalty and
satisfation with price.
The results of the study indicate that the hotel election considering the different revenue management strategies has an
important effect in the consumer loyalty and in the satisfaction with price. However, the effect over the decision
confidence is not statistically significant. Moreover, the best results in terms of the three dimensions of co nsumer behavior
considered have been obtained by the hotel that used a strategy based on the length of stay, that is, the hotel in which the
price of room decreases from a certain number of nights onwards. Without doubt these aspects are very important to the
hotel manager in order to take decision around the revenue management strategies used in this company.
This paper opens new future research lines such as: considering others elements related with the consumer behavior
besides decision confidence, loyalty and satisfaction with price, taking into account this study for other products or
services different of hotels and include one element so important as familiarity in order to make clear if the best results
obtained for the hotel whose strategy is based on the length of stay is conditioned by the familiarity of consumers with this
rate.
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88
Session 3
89
Intent to Purchase and Consumption of Organic
Food in Brazil
Consumer Behaviour. Organic Food. Sustainability. Marketing Research.
Danilo Sampaio, Federal University of Juiz de Fora, danilo.sampaio@ufjf.edu.br
Marlusa Gosling, Federal University of Minas Gerais, mg.ufmg@gmail.com
Abstract
The objective of the research was to propose and test a model to assess the impact of variables affecting the intention to
purchase/consumption of organic food from the perspective of the consumer of this type of food. To meet the goals and
hypotheses of this research was developed two focus groups and a transverse survey with 560 consumers of organic food
in Brazil. After the construction of the adjusted scale to the purposes of this research, a model of consumer behavior of
organic food has been prepared based on the technique of structural equation modeling (HAIR et al., 2012). It can be
concluded that the only endogenous construct this model, intent to purchase/consumption, showed a correlation
coefficient (R2) of 41%, indicating that 41% of their variations are explained by exogenous constructs and the other 59%
reflect other things that influence the intention to purchase / consumption, but were not addressed in the model. With
respect to academic and managerial contributions, there is the rescue of a theoretical updated on the consumer behavior
of organic foods and suggestions for improvements to create actions that retails for advertising and sales promotion
including a message of appreciation to the environment the quality and availability of organic food. As a suggestion for
future research, while differentiating marketing strategy can be used in view of the various types of organic foods, pointing
purchasing behavior and consumer product-specific (both fresh and processed) enabling the improvement of the
proposed model.
1. Introduction
What makes a person to buy a organic food? What are the variables that are considered by supporters of organic
food? The objective of this paper: What are the factors that determine significantly the intention to purchase/consumption
of organic food and what the relationship of these factors with each other? The consumer of organic food is in line with the
concept of sustainable development. For the United Nations (UN, 2012), sustainability is defined as "a principle of a society
that maintains the characteristics necessary for a fair social system, environmentally balanced and economically
prosperous for a long period of time and indefinitely".
Organic food has a supply chain, which brings agroecological concepts, protecting the environment, rural workers
and providing a fair income. The organic consumer is considered a green consumer with more rigidity principles.
According to Jia et al. (2002), there are differences in the standards used to define hazard free, green and organic food. Chu
and Rahman (2012) organizations are appealing to the concept "green" in the sense that there is greater synergy between
associate the color to factor ecological awareness. The authors conclude that there is a relationship between association of
color and marketing strategy, including environmental issues.
With respect to the statistics, there is the increased production and consumption of foods organic worldwide. In
the United States, organic food and beverage sales increased from $3.6 billion in 1997 to $26.7 billion in 2010. Just
considering the year 2010, U.S. organic food sales grew 8% (OTA - Organic Trade Association, 2012). In Europe, Germany
is pointed out as an important market, totalling 6.6 billion euros, followed by France with 3.8 billion euros. With respect to
organic farms, 80% of them (1.8 million properties) are in developing countries, like India, Mexico, Argentina and Brazil
(IFOAM - International Federation of Organic Agriculture Movements, 2013).
90
2. Hypotheses and Constructs
Before starting the theoretical framework, it is important to mention the hypotheses of this research, which are
based on the studies of internationally renowned authors and, to a lesser extent, based on focus groups (figure 1).
Hypotheses
Authors
H1: Concern for the environment has a positive impact on belief in
the buying of organic food
Archanjo et al. (2001), Ceschim and Marchetti (2009), Kim and
Chung (2011), Krischke and Tomiello (2009), Madaets (2003),
Sluzzs et al. (2008), Smith et al. (2009)
H2: Healthy eating habits have positive impact on belief in the
buying of organic food
Aertsens et al. (2011), Giddens (1996), Tarkiainen and Sundqvist
(2005), Pino et al. (2012)
H3: The perception of the price paid for organic food has a positive
impact on the attribute
Stringheta e Muniz (2003), Vilas Boas et al. (2008), Yin et al. (2010) e
Zakowska-Biemans (2011)
H4: The perception of the brand of product of organic origin has a
positive impact on the attribute
Della Lucia et al. (2007), Krischke and Tomiello (2009)
H5: The perception of quality has a positive impact on the attribute
Janssen e Hamm (2012), OECD (2011), Ribeiro (2010), Thorton
(2002), Pimenta e Vilas Boas (2008), Yin et al. (2010)
H6: The availability of organic food has a positive impact on the
attribute
Aertsens et al. (2011), Hoppe et al. (2010), Tarkiainen e Sundqvist
(2005)
H7: Media and health professionals have a positive impact on
reference groups
Della Lucia et al. (2007), Guivant, (2003), Madaets (2003),
Cuperschmid e Tavares (2002)
H8: The household has a positive impact on reference groups
H9: Acquaintances of the consumers of organic food have a positive
impact on reference groups
Cuperschmid e Tavares (2002), Della Lucia et al. (2007), Guivant,
(2003), Madaets (2003) e Zakowska-Biemans (2011)
H10: The belief of consumers of organic food has a positive impact
on the intent to purchase/consume food
Aertsens et al. (2011), Giddens (1996), Tarkiainen e Sundqvist
(2005), Pino et al. (2012)
H11: The attitude of consumers of organic food has a positive impact
on the intent to purchase/consume this kind of food
Janssen e Hamm (2012), Thorton (2002), Vilas Boas et al.(2006), Yin
et al. (2010) e Zakowska-Biemans (2011)
H12: The reference groups of consumers of organic foods have a
positive impact on their intent to purchase/consume this kind of
food
Figure 1 – Hypotheses and authors studied.
Source: Prepared by the authors of the research.
3 Literature Review
3.1 Behaviour of the Organic Food Consumer
The consumer behaviour researches usually studying variables such as attitudes, beliefs, values and intentions of
purchase and consumption. Yin et al. (2010) developed a survey with 432 organic food consumers in China. The Chinese
purchase intention is strongly affected by factors such as income, level of confidence in the organic food, degree of
acceptance regarding price and health concerns. The consumers call themselves confident on the concept of organic food
and believe that this type of food results in a healthier life. The authors also mention that the purchase intention of organic
food is slightly affected by age, level of education and environmental concern.
Another contemporary research can be seen in Tarkiainen and Sundqvist (2005). The authors investigated the
behaviour of organic food consumers (bread and organic flour) in Finland. The authors appli ed the structural equation
modelling technique to understand the relationship between subjective norms, attitudes and purchase intentions of
organic food consumers. Aertsens et al. (2011) developed their survey in Belgium and found that the attitudes of
consumers towards the consumption of organic vegetables are generally positive, and the most positive factor was that the
consumers recognize that the organics are produced without synthetic pesticides.
91
Hsieh and Stiegert (2011), in the United States, report that the organic consumers are susceptible to price changes,
are more concerned with the quality of the food when compared to traditional consumers and purchase organics both in
specialty stores and in supermarkets. The authors mention that large organi zations have increased their organic food
sales. In Brazil, research on consumer behavior of organic food is limited. The few studies are mostly developed in the
south and southeast. Regarding the research approach in this country, qualitative studies were prioritized in articles from
journals. In articles presented at scientific meetings, some authors have used quantitative methods along with qualitative
ones. The research methods most used by Brazilian researchers are in-depth interviews, content analysis, scaling /
laddering, survey, and lastly, focal groups.
Some of the major Brazilian researchers of consumer behavior of organic foods are Archanjo et al. (2001),
Cuperschmid and Tavares (2002), Ruchinski and Brandenburg (2002), Zamberlan et al., Büttenbender (2006), Sluzzs et al.
(2008), Ceschim and Marchetti (2009) and Krischke and Tomiello (2009). These authors researching consumer behavior
in order especially as variable attributes and values.
Ruchinski and Brandenburg (2002) report that consumers of organic food internalizes the movement in favor of
ecology and has awareness of environmental preservation, a fact that was verified when consumers found that is willing to
pay a higher price for organic. Krischke and Tomiello (2009) found that this type of consumer has average income of
around 4.000 U.S. dollars, representing in Brazil, a premium segment of the market.
Zamberlan et al. (2006) and Rucinski and Brandenburg (2002) point out that organic food consumers have a
higher income and a higher educational level when compared to organic food non-consumers, and are also more aware in
terms of environmental preservation. For the authors, consumers of organic foods appreciate the care with personal and
family health, being guided by values terminals as longevity, happiness and tranquillity.
3.2 Constructs Research
Considering the importance of hypotheses, they are flagged according to the explanations of each construct of the
model, as well as contributions from the focus groups. The central constructs studied were: Beliefs, Attributes, Reference
Groups and Intent to Purchase/Consume. Each of these constructs is indicated in terms of conceptual and operational
definition below (figure 2).
Constructs
Conceptual Definition
Operational Definition
Beliefs of the consumer of
organic foods buying /
consuming this type of food
"[...] of the consumer beliefs come from cognitive
learning" The belief for the consumer is that they
have knowledge about objects, their attributes and
benefits (MOWEN; MINOR, 2003, p. 141)
The belief in organic food was measured by Hoppe et
al. (2012) with seven-point Likert scale. The belief by
organic food was measured by Chryssohoidis and
Krystallis (2005) with five-point Likert scale
Attributes are characteristics of a product that
consumers can store in memory or not knowledge of
such attributes. Attributes can be tangible (physical
and tangible as a type of wood for a particular
product) or abstract (intangible subjective
characteristics such as quality) (PETER; OLSON,
2009)
The variable attribute in relation to organic food was
measured by Hoppe et al. (2012) from a seven-point
Likert scale. The variable attribute in relation to
organic food was measured by Chryssohoidis and
Krystallis (2005) from five-point Likert scale. The
variable attribute in relation to organic food was
measured by Zakowska-Biemans (2011) from a sevenpoint Likert scale
A reference group influential in a given society may
suggest to the consumer that this change your
attitude or behavior (SCHIFFMAN; KANUK, 2009)
Variable Reference Groups in relation to organic food
was measured by Chryssohoidis and Krystallis (2005)
with five-point Likert scale. Variable Reference Groups
in relation to organic food was measured by Kim and
Chung (2011) with seven-point Likert scale
"The intentions of behavior are defined as
expectations to behave in a certain way in relation to
the acquisition, disposal, and use of products and
services" (MOWEN; MINOR, 2003)
"The intentions of behavior are defined as
expectations to behave in a certain way in relation to
the acquisition, disposal, and use of products and
services" (MOWEN; MINOR, 2003)
Attributes that consumers
of organic foods judges as
needed for the purchase /
consumption of the same
Reference groups that
influence the consumer of
organic foods in the
purchase / consumption of
the same
Intention to purchase /
consumption of organic
foods
Figure 2 – Constructs and conceptual/operational definition.
Source: Prepared by the authors of the research.
92
Regarding construct belief, a consumer who is concerned about health in terms of eating habits and the
preservation of the environment (VILAS BOAS et al. 2008). The construct belief finds support in Alternative Medicine and
Nutrition, because these sciences point, according Zanoli and Naspetti (2001), that organic food has nutrients and vitamins
that help fight disease and provide better quality of life to people.
In this research, the construct attribute is related to four variables: price perception, brand awareness, perceived
quality and availability. As for the variable price, in the case of organic food, its higher price compared to non-organic
foods impacts greater market segmentation and positioning involves a related individuals belonging to the higher social
classes in terms of income (ZAKOWSKA-BIEMANS, 2011).
The variable perception of price is related to the symbolic issue that involves organic food, as this differentiated
food that favours because of their cropping system, ecology, respect the proper methods of handling and production, with
the call to provide a healthier life for consumers (STRINGHETA; MUNIZ, 2003; VILAS BOAS, 2005).
The brand or origin of organic food is a motivating factor in consumer purchase. Della Lucia et al. (2007) found
that consumers of organic coffee notes, in the area of retail sales, the brand of the product and its origin, pointing this fact
as important in the acquisition process. According Krischke and Tomiello (2009), trust in the brand is present in more
mature consumers and the elderly, who affirm that the brand generates a value important tradition at the time of
purchase. For Thorton et al. (2002), consuming organic food, ecological and certified means having an attitude and correct
behavior, i.e., the consumer in this case feels like a social actor essential to the preservation of the environment.
The organic food, in respect of their chemical and nutritional characteristics, positions as a nutritionally superior
food. The nutritional quality and certification of organic food are factors identified in the research as fundamental as it
consolidates the consumer's perception of the quality you are looking for is audited and monitored (VILAS BOAS et al.,
2006; KRISCHKE; TOMIELLO, 2009; RIBEIRO, 2010; ZAKOWSKA-BIEMANS, 2011).
So important to the consumer, as realizing the value of organic food is finding it on the shelves of supermarkets,
open-air markets and specialty stores. For Hoppe et al. (2010), availability is a critical factor in the purchase decision of
the consumer. In developed countries such as in Holland and England, organic foods are offered in many open-air markets
and retails traditional and specialized. Aertsens et al. (2011) corroborate Hoppe et al. (2010) and indicate the availability
factor of objective intention to purchase organic foods. Tarkiainen and Sundqvist (2005) indicate how necessary the
availability of organic food in supermarkets. The authors while researching the purchase intention of consumers in
relation to organic tomato, referred to the variable availability as critical to consumers.
The central construct Reference Groups is appointed in view of the close relationship of the consumer of organic
food with people and organizations around you, like relatives, friends, media and professional somehow connected to the
issue of health. According Madaets (2003), consumers of organic food feels more comfortable as a member of a targeted
group of consumers, aware of ecological responsibility. Noteworthy is the construct Reference Groups as a form of
socialization. The research of consumer behaviour must once again take a special look at trends in social groups and the
objects of desire of these groups. Consumers of organic foods develop a relationship group around the concept of a healthy
lifestyle and even alternative in order to be recognized as consumers that protect the environment and preserve health
(ZAKOWSKA-BIEMANS, 2011).
Dahl et al. (2001) conducted a survey on how the consumer is confused to make purchases due to the influences of
family and social presence. For the authors, the confusion (or embarrassment) means the social interaction and the forces
involved in the action of purchase. The embarrassment or confusion can occur before, during and after purchase. The
authors conducted focus groups and field tests purchase to individuals, which received a sum of money to carry out
specific acquisitions. As a result, it was found that the presence of family and social groups influence the purchase,
confusing the consumer in the sense that some issues were raised - What I really (consumer) desire? What I (the
consumer) actually bought?
Influences of parents and relatives, friends, colleagues, media and other organic consumers have no power of
decision-making, but have supporting role in encouraging consumers to buy organic food (GUIVANT, 2003; DELLA LUCIA
et al., 2007). The organic consumer can make a purchase decision, both based on the relationship you have with the people
around you, as to the power of the media that reinforces daily information about organic foods that can be stored in the
memory of the consumer. Cuperschmid and Tavares (2002) pointed out that the consumer of organic food it is also
considered a green consumer, with strong ecological awareness, influencing even others to raise awareness of the issue of
the ecological organic food.
93
4. Methodological Aspects
The conception of this research is considered to be descriptive, but also includes an exploratory phase. Regarding
the methods of research, two focus groups were developed in the qualitative phase, and then used a cross-sectional survey
in quantitative research.
In the qualitative phase of this study, two focus groups were worked, one with seven participants (Focus Group A FGA: organic food consumers) and the other with six participants (Focus Group B - FGB: non-organic, traditional food
consumers). The purpose of choosing two different focus groups was to compare and verify the groups' knowledge of
organic food and their characteristics. In both FGA and FGB, a term of free consent and authorization for participants' data,
voice and image was written in, which allowed for filming, voice recording and collection of socio -economic data of all
invited consumers. The city of Juiz de Fora, in the state of Minas Gerais, Brazil, city with 517,872 inhabitants, was chosen
for the implementation of the focus groups, due to the convenience for the researcher and the appropriateness of the site
for the work. An advantage in choosing the focus group was the rapidity in providing results and the opportunity to c ollect
data from the interaction of groups (KRUEGER, 1994; MORGAN, 1988).
In the quantitative study, from the total of 560 elements randomly choose, three of them were excluded, since they
presented data from the questionnaires with validation problems. Therefore, 557 elements were considered. The survey
was limited to the city of Belo Horizonte, state of Minas Gerais, Brazil, with about 2,375 million inhabitants, in Brazil (IB GE,
2012), which in fact made the survey viable due to the easy access of the res earcher in being close to the phenomenon
(COLLIS; HUSSEY, 2005; MALHOTRA, 2006; MARCONI; LAKATOS, 2009; VIEIRA, 2002). The survey occurred during the
months of September to November of the year 2011.
The proposed scale was based on the conceptual and operational definitions of the variables and the perusal of the
authors mentioned in this thesis, referred to the behaviour of consumers of organic food. Reference groups also
contributed to the elaboration of the items that formed the survey questionnaire. The final questionnaire contains itens
regarding the addition of variables, issues-filter and socioeconomic issues in order to characterize the respondent.
The agreement scale used in the questionnaire of the survey was the eleven point Likert scale (0 = stro ngly
disagree to 11 = strongly agree). This scale considered unforced (no type options do not know if any of the above) means
that presupposed that the respondents were buyers of organic food (Malhotra, 2006). In this way, it is worth informing the
interviewers approached the respondents when they caught organic food and put it in the shopping cart. With regard to
the scale of the questionnaire items, it was decided to implement the 11-point Likert scale, because, according to Monteiro
(2010), this can reduce measurement errors. As the research was conducted in Brazil, the decimal system facilitates
understanding by the respondent.
5. Data Analysis and Results: Focus Groups
In the reports of the focus groups (FGs), the frequent words and terms, which were s elected and grouped under
the following categories: (a) terms: health, nutrition, quality of life, (b) values: human, economic, (c) opinion: favorable,
unfavorable. Prior to the tabulation of the data, participants' speech and debates were verified by means of the recording.
We developed a report with the transcriptions of both FGs, which gave a good cross section of data with the recordings
and images generated in the group meetings. Regarding the frequency with which the words most frequently mentioned
by participants are measured (Stone et al., 1970; Bardin, 1977), can note FGA's situation 65 words/terms were mentioned
by participants.
Regarding the frequency of words/terms used in the FGA, we observe that the habit of organic food consumption
was the most mentioned by the interviewees (f = 53), followed by the importance of small organic food producers (f = 13),
the need for certification of organic food (f = 12), organic food is good for health (f = 12), and the importance of having
retail/access/variety of organic food (f = 12).
In the case of the word/term: habit of organic food consumption, it was cited by participants who pointed out the
preference for this type of food knowing the benefits that organic food offers for human health. By analyzing the frequency
of the FGA participants' words selected from the voice recording, we can infer that the organic food consumer investigated
in this study is concerned with: (i) the term organic food, (ii) who produces organic food, (iii) the organic food quality, (iv)
how good organic food is for health and, (v) access to organic food retail and the fact that there could be a wider variety o f
organic food available.
94
The organic foods most often mentioned by the FGA participants were sugar, green vegetables, chocol ate and
brown rice. For the interviewees organic food is not easily found in retail establishments in Brazil. Participants referred to
certified organic foods, with a quality seal and both industrialized and non-industrialized organic products.
Participants also mentioned people's and retail staff's (employees) lack of knowledge about the concept of organic
food, its characteristics, as well as the location / availability of organic food in the retail outlet.
When asked if they consume industrialized organic products other than those found in open markets or in the
supermarket green vegetable section, the FGA participants mentioned that they consume these foods from different kinds
of retail establishments: supermarkets, specialized stores or open markets. The FGA participants pointed out that they
look for different types of organic food, such as fruits, vegetables, green vegetables, pasta, among others.
The participants also commented that when travelling abroad she brings back all types of organic food which, in
Brazil, are more expensive or not easily found. Both by means of the video and voice recording, and by observing the
participants, we found that all participants’ attitudes go beyond the use of organic food only, that is, participants live their
lives in a conscious way, concerned with their eating habits and with their education, as well as with the preservation of
nature and quality of life.
Participants also complain about the location of organic products in retail outlets, or mention that organi c food
has no specific location like other products in the retail outlet layout. It is difficult to find a section specifically for organic
products. For the consumers participating in the FGA, organic foods are even mixed with other foods such as light and diet
ones.
When asked by the moderator about the most important features of organic food, participants indicated in
decreasing order: (a) health, (b) quality of life/wellness/lifestyle, (c) respect for the environment/respect for
others/respect for the ecosystem. Regarding the FGB, that is, the FG composed of consumers who do not have the habit of
consuming organic food, a greater number of words/terms was transcribed when compared with the FGA. While the FGA
mentioned 65 words/terms, the FGB mentioned 77. The most often mentioned products by the FGB participants were
sweets (regardless of flavour) coffee, bread and sugar.
The FGB participants showed lack of knowledge about the meaning of organic food, however, some consumers
said that organic food is the one that has no pesticides. The FGB participants did not mention factors such as
environmental protection and ecosystem, the importance of agro ecological agriculture and concern for the rural
population working with crops.
In the FGB health problems regarding high cholesterol (f = 16) was the most common term, followed by the habit
of consuming traditional sweets (f = 10); the exchange of a food brand occurs when the price is high (f = 8); habit of
consumption regarding traditional coffee (f = 7); and lack of knowledge about organic food (f = 7). Besides these most
common terms, matters concerning fast food meals in cafeterias, such as fast food chains, were also highlighted in the FGB
participants' speech.
At the beginning of the FGB meeting, participants also emphasized problems related to poor health, sometimes
due to hereditary issues, other times because of an unhealthy diet. The major diseases mentioned by the consumers
interviewed were related to high cholesterol and a predisposition to hypertension. For the FGB participants it is important
to have a healthier diet, as is the case of people who eat organic products and play sports more regularly.
The fact that most FGB consumers have high cholesterol contributed to a greater interest in the present study,
since, according to the participants themselves, they are considering changing their eating habits to include the
consumption of organic food. Another fact observed when filming the FGB, was that participants are willing to eat organic,
however, the price variable should be observed. When FGB participants were asked about how much more they would pay
for organic food, they mentioned that they could afford up to 20% more to eat better.
Both in the FGA and FGB, participants indicate a greater need to learn more about organic food, or better
understand the concept and characteristics of such food, as well as what organic food can mean for people's health and
quality of life. Regarding the socio-economic profile, comparing the two FGs, it was found that FGA participants had a
higher family monthly income than the participants in the FGB, which corroborates other studies already conducted on the
consumption of organic food (COLTRO, 2006; KRISCHKE; TOMIELLO, 2009). Out of the seven participants of the FGA, one
is attending higher education, two have completed postgraduate studies, another has a higher specialization course and
three others have finished higher education. Such information indicates that in the present study all organic food
95
consumers are highly educated.
It is important to mention that before beginning the discussions in the FGs, the researcher distributed and then
collected the socioeconomic questionnaire filled in by all participants. Even though the FG is a simplified picture of the
reality in terms of sampling and taking into account that the FG should not be considered a conclusive result as a
qualitative research technique (Malhotra, 2006), the fact that consumers with better education have better financial
conditions and information on diet, indicates that the organic food consumer is educated, conscious, critical and concerned
about his or her own health and well being.
The relationship between education, family income and organic food consumption is also addressed in research
by Ceschim and Marchetti (2009) and Coltro (2006), where the authors cite that high education levels and family income
awaken consumer's consciousness for the better quality of life provided by organic food. Rucinski and Brandenburg
(2002), Shepherd et al. (2005), Tarkiainen and Sundqvist (2005), and Zamberlan et al. (2006) point out that organic food
consumers have a higher income and a higher educational level when compared to organic food non-consumers and are
also more aware in terms of environmental preservation.
When studying the behaviour of organic food consumers, Pimenta and Vilas Boas (2008) noted that consumption
was higher among those aged over 30 with advanced education and a monthly income of more than four times the
minimum wage. Krischke and Tomiello (2009) also revealed in their research that the better education of organic food
consumers favours the extent of knowledge regarding the agro ecological benefits of organic food. When checking the
second focus group, the FGB, we note that the educational level is lower than in the focus group of consumers who eat
organic food (FGA). Such information may influence the income variable as previously seen.
Regarding gender, of the seven participants in the FGA, two of them are male (28.57%) and five of them are fem ale
(71.43%). In the FGB there are two males (33.33%) and four females (66.67%) out of a total of six participants.
In conclusion, when analysing the factors that lead to a certain type of consumer, in the FGA a greater awareness
regarding the importance of organic food as a source of better quality of life was observed. On the other hand, despite
perceiving organic food as being healthier, participants of the FGB are not aware of the concept of organic food and of the
fact that this kind of food provides a better quality of life.
6. Data Analysis and Results: Survey
A conceptual and operational definition of variables allowed the construction of the proposed model of consumer
behaviour of organic food. According to Malhotra (2006), the correct definition of variables allows researchers to the
creation of a scale and questionnaires that are faithful to the purpose of the research. In this way, the four variables that
were studied are: beliefs; attributes; reference groups; intent to purchase/consumption.
Firstly, it is important to show the sample profile in this study. The survey was limited to the city of Belo
Horizonte, in Brazil, with about 2,4 million inhabitants (IBGE, 2012). This research occurred during the months of
September to November of the year 2011, comprising 560 food consumers, and three of them were excluded, since they
presented data from the questionnaires with validation problems.
About the gender of the respondents, 74% were women and 26% were men. The frequency distribution with
respect to the age of the interviewees pointed out those between ages 46 to 55 (27%) as prevalent followed by the range
between 36 and 45 (21%) and 56-65 years old (19%). In the education level, 37% respondents had completed a college
degree, 63% were postgraduates, including master and doctoral degrees. About marital status, 52% were married, 29%
were single, 13% were divorced or separated and only 6% consumers of organic food are widowed. About income
question, 34% have a household income monthly above 10,375.01 BRL (5,239 U.S. dollars in Feb. 28, 2013) and 32% with
incomes between 6,225.01 (3,143 U.S. dollars) to 10,375.00 BRL (5,239 U.S. dollars).
In this item each variable and its corresponding descriptive statistics are presented. All tables were generated by
the SPSS® software, version 13.0. With respect to the 'belief' construct, one can notice that the means for the scale were
elevated, showing a positive positioning of consumers of organic foods. Moreover, the standard deviation, which is the
average of the variability data, was above 2.50, which is considered high by the scale used, indicating there is some degree
of divergence of opinion among the respondents.
96
The variables with the greatest distance from the average values were: HAS2 (I usually eat portions of meals at
short intervals throughout the day), MA2 (I avoid using plastic bags when I buy/consume food at retailers); MA3 (When I
know that a company pollutes the environment, I avoid buying/consuming their products) MA4 (I separate packages made
of metal, glass and plastic for recycling).
Out of the 14 variables of the 'attribute' construct studied, the six which showed high standard deviation above
2.50, were: PQ2 (the smell of the organic food is different from non-organic food); FP4 (the appearance of organic food is
better than non-organic food); PM1 (I have a habit of buying/consuming organic food of known brands or sources), PM2 (I
have a habit of buying/consuming organic food from companies that associate their brand with the environment); PM3 (I
prefer to buy/consume organic food from companies that associate the brand/source to health); D4 (if there is a
restaurant specializing in organic food in my town I intend to go there). With respect to 'attribute' construct, it was found
that the averages were also high, being closer to the maximum scale value.
By analysing the 'reference group' construct, the variables GR5 (I usually ask people who eat organic products
before purchasing/consuming) and GR6 (most of my friends are people who also feed on organic products, not those that
feed on non-organic foods) showed averages near the minimum of the scale and with high standard deviation compared to
other variables. Variables GR5 and GR6 indicate that consumers of organic foods tend not to ask other individuals that feed
on organic food and is not necessarily friends with such individuals.
The GR4 variables (health professionals, such as doctors or nutritionists approve of my purchase/consumption of
organic food) and GR7 (I am interested in news stories about organic foods) had lower standard deviation and average
values closer to the maximum of the scale. These facts indicate that the consumers of organic food surveyed place high
importance in the views of health professionals and the media as they are providing information and advice on the use of
organic food.
Three other variables demonstrate an average close to the maximum range and standard deviation above 2.50.
They are: GR1 (in my family there are other people like me who feed on organic foods); GR2 (influential people such as
athletes, political leaders and renowned artists who advocate the consumption/purchase of organic food approve my
purchase/consumption); GR3 (my parents, relatives and friends would approve of my purchase/consumption of organic
food). Thus, it is understood that, despite there being variables accepted by consumers as influencing the purchase and
consumption of organic foods, they do not have the same degree of significance as the GR4 and GR7 variables. In the 'intent
to purchase/consume' construct, the averages of the three variables were close to the maximum value of the scale, with a
standard deviation lower than 2.50. Therefore, the intent to purchase/consume is one of the most significant constructs
indicated in the survey.
7. Structural model
After verifying the Outer Model of the constructs of the first and second orders, it was possible to attest that they
have adequate validity and reliability. That is because it only makes sense to evaluate the Inner Path Model after ensuring
that the Outer Model has validity (convergent and discriminant) and reliability because if the measures representing the
constructs of interest are inadequate, there is no reason to examine relationships between the constructs (HAIR, RINGLE;
SARSTEDT, 2011). Thus, further analysis of the Inner Path Model was carried out.
The structural model of this study, also defined by the Behaviour Model of the Consumer of Organic Food
(MCCAO) can be seen in figure 3. In this model, loads for each exogenous construct in relation to intent to
purchase/consume of organic food (endogenous construct) are presented, as well as the correlation coefficients between
each exogenous construct.
97
Figure 3 - Inner Path Model (structural model) - Behaviour Model of the Consumer of Organic Food (MCCAO).
Source: Prepared by the authors of the research with data from the survey worked in SmartPLS.
(i) ** p value <1%, (ii) * p value <5%; Ɨ p value <10%, the dotted arrow indicates that the relationship showed
a p value> 10%, (iii) caption: CI = intent to purchase/consume - questionnaire items).
The only endogenous construct of MCCAO, 'Intent to Purchase/Consume', presented a R² of 41% (table 1),
indicating that 41% of their variations are explained by exogenous constructs, and the other 59% reflect other things that
influence the intent to purchase/consume, but were not addressed in the model. This size of R² indicates a moderate to
substantial power of prediction, according to Chin (1998), who highlights that the construct is explained by only one or
two variables, therefore, a moderate value is acceptable. According to Lohmöller (1984), an appropriate model should
provide an R² of at least 50% (DIAS, 2004). The MCCAO proposed in this study showed a value very close to that, which
can be justified because it is an exploratory research on the subject.
Construct Exogenous Construct Endogenous Sample
Pop.
Dev.
Error
T Value
Sig.
Attitude
Belief
Reference Group
Intent to
Purchase/Consume
0,50
0,50
0,05
0,05
9,56
<1%
0,20
0,20
0,05
0,05
3,82
<1%
R² = 41%
0,05
0,06
0,04
0,04
1,26
> 10%
Table 1 - Results of the hypotheses of the Inner Path Model proposed.
Source: Prepared by the authors of the research with data from the survey worked on in SmartPLS.
a) Sample: standard weight obtained for the full sample, b) Pop.: is the average weight obtained in the population c)Dev.: th e standard
deviation of the estimate d)Error: the error is estimated from the estimate e)T Value: the ratio of weight not standardized by its standard error.
Out of the three exogenous constructs, only two showed statistically significant impact, and these were the Belief
and Attribute constructs. Both loads were positive, and the impact of the Attribute construct (standardized loads of 0.50, p
value <1%) was greater than the magnitude of the impact of the Belief construct (loads standardized 0.20, p value <1 %),
for being closer to one. The Reference Groups construct had an impact of 0.05 (load very close to zero, although positive),
not significant at 10%, indicating it does not exert influence on the intent to Purchase/Consume.
In the case of the Belief construct, the Environment variable has a greater weight than the Healthy Eating Habits
variable. This indicates that the Beliefs construct undergoes major changes when the consumer has a tendency to worry
about the environment if this concern is similar to his/her health. Apparently, the belief linked to the environment has a
greater weight than the belief related to the consumer’s own health, which indirectly impacts the Intent to
Purchase/Consume.
98
As for the case of the Attribute construct, there is the perception of price, and availabili ty has greater weight than
the perception of the brand and quality. This reveals that changes in the Attribute construct are more perceived when
there is less concern about the price and an increased habit of buying/consuming in places that sell/offer organic
products, than the importance given to smell, taste, brand or origin of the organic food. Indirectly, the first two (Perceived
Price and Availability) are also more closely attached to the intent to purchase/consume.
The major variable in the Reference Groups construct was Media and Health Professionals, followed by Family
Unity, and then Acquaintances. This reveals that despite the media, health professionals, family and acquaintances
approving of or consuming organic foods, this is not reflected in a higher intention on the part of the respondent to
generate an intention to buy/consume this type of food.
Besides verifying the relationships between exogenous and endogenous constructs, Hair et al. (2012) also
suggest examining the relationships between the exogenous constructs of the model through correlation coefficients. All
pairs of exogenous constructs of the model show significant correlations at the 1% level. The highest ratios were observed
for the pairs P1, between the Belief and Attribute constructs, 46%, and P3, between the Attribute and Reference Groups
constructs, with a coefficient of 45%. However, the relationship between Belief and Reference Groups was lower (24%),
although it was also significant. Note that all coefficients were positive, indicating that the variables are correlated in the
same direction.
Besides the nomological validity, it is also important to check the quality of the fit, and the prediction ability of the
model. In order to check the goodness of the adjustment the Goodness of fit (GoF) was used, and it can be calculated using
the formula proposed by Amato, Esposito Vinzi and Tenenhaus (2004), according to which the averages of AVEs and R² of
the constructs of the model should be checked and the geometric sequence verified. This measure ranges from 0% to
100% and, so far, there are no limits for considering a fit as good or bad. However, the closer to 100%, the better the fit,
and the GoF model was 48%.
In order to check the predictive ability of the model the measure called Stone-Geisser's (Q²) was used. This
measure reflects whether the model was able to adequately predict the endogenous constructs as suggested by Hair,
Ringle, and Sarstedt (2011). In SmartPLS, this measure is obtained through the procedure called blindfolding, where the
value d requested by the test should be between five (5) and ten (10), as the authors suggest. Furthermore, the authors
point out that the measure must check the cross-validated redundancy measure and not the so-called cross validated
communality measure. The endogenous variable has an adequate predictive capacity when Q² has a value greater than zero
(HENSELER et al., 2009). Therefore, we adopted a d of seven (7) and performed such analysis for the only endogenous
construct of MCCAO, the Intent to Purchase/Consume, which presented a Q² of 0.31 (> 0.00), indicating that MCCAO was
able to adequately predict the construct.
About the twelve hypotheses tested proposed by MCCAO, only the H12 has not been confirmed. The others were
accepted. All correlation coefficients between the exogenous constructs (first order) were positive. The most significant
correlation coefficients occurred between the Belief and Attribute (46%) constructs, and Attribute Groups and Reference
(45%), whereas the correlation between Belief and Reference Groups was less pronounced (24%). Accordingly, with
respect to Beliefs construct, both the hypothesis H1 and H2 are confirmed, but the weight was greater in H1, as consumers
of organic food are more prone to consume/buy this type of food, more motivated by a belief in preserving and respecting
the environment than in improving their health.
With regard to the Attribute construct, the Perception of Price (H3) and availability (H6) influence over the
consumer of organic foods to acquire/consume such foods at the expense of quality perception variables (H4) and brand
(H5), even though these influence the consumer decision process, however, to a lesser degree.
Regarding the Reference Groups construct, it did not have the same satisfactory results compared to the other
constructs of the MCCAO. The statistics of the Reference Groups construct were less striking than the other constructs of
the first order. The influence of the media, health professionals, the family core and acquaintances to the consumer of
organic foods occurs, however, it is less impressive than the other constructs (Belief and Attributes). Thus, the H7, H8 and
H9 hypotheses were confirmed by the MCCAO.
With respect to the latter construct and, in this case considered endogenous of the model proposed, the Intent to
purchase/consume proved to have a stronger correlation with the Attribute construct (50%) and (20%) with the Belief
construct. With the Reference Groups construct, the correlation was not considered in terms of explanation (5%). In this
99
case, the H10 and H11 hypotheses of this construct, Intent to purchase/consume, were considered confirmed, while the
H12 hypothesis, due to the low correlation with that construct, was not confirmed.
8. Conclusions
This descriptive study that included a qualitative phase was adequate to the purpose of this work. The model
proposed to assess the impact of variables affecting the intention to purchase/consumption of organic food from the
perspective of the consumer of this type of food was valid. Only one of twelve hypotheses of this research wasn't
confirmed. The focus groups provided important information for the development of the questionnaire used in the survey.
Studies on the consumer behaviour of organic foods mentioned in the theoretical framework contribute to a review of
research on the topic and provide opportunities for researchers in future research advances.
The endogenous construct Intent to purchase/consume showed a correlation coefficient of 41% (R ² = 41%),
indicating that 41% of their variations are explained by the exogenous constructs which, according to Chin (1998), is
justified in view of this being an exploratory survey on the topic at hand.
It can be considered that one of the academic contributions of this research was to develop a model that could
drive how the purchasing behaviour/consumer consumption of organic food in Brazil occurs. Another important
contribution was a revision of a theoretical framework on consumer behaviour, most especially, the behaviour of
consumers of organic food. Other researchers interested in the subject can use this framework developed here and apply it
in their surveys.
The profile of the consumer of organic food identified in the survey, as well as the analysis of their buying
behaviour/consumption can contribute to the formulation of marketing actions related to current and prospective
customers. Retailers can create advertising campaigns that have the appreciation for the environment and quality and
availability in relation to organic food as the message content, because these variables motivate the consumer's intent to
purchase, as seen in this study.
It is also suggested that the layout of the sales area in the retailers highlights the organic food on the shelves and
places that allow access to materials that show the consumer information and data on the benefits of this type of food. It is
the retailer's job to define the associations to the brands of organic foods and choose brands that value health and well being. According to the research, the customers' intent to purchase/consume organic food takes into account the
perceived value and brand awareness.
Since this is a descriptive survey with an exploratory phase aiming to reveal new insights about the consumer of
organic food, it is noteworthy that the proposed Behaviour Model of the Consumer of Organic Food (MCCAO) has a
predictive power assessed as moderate to substantial. It should then be considered a valid model in view of the objective
of this survey (CHIN, 1998).
One of limitations refers to the period of conducting the survey. A longitudinal research in this direction can be a
good alternative. Doing this research in other cities, even in different countries, may reveal specifics not found in the
present study. Extending the research to other countries is crucial to compare data.
It is also advisable to develop a research aimed at targeting different types of organic foods. In this survey we
studied organic foods without specifying the types. A final suggestion for further studies rests with the selection of more
variables and constructs that might engage or develop and refine the model proposed in this work. One of the possible
options is to increase the number of individuals surveyed, thereby having a sample that allows making new correlations
between variables.
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Recent Trends in Consumer Behavior
Concerning Foods with Health Benefits in
Russia
Consumer behavior, transitional economy, Russia, food with health benefits, functional food, health.
Irina Dolgopolova, Leibniz Institute of Agricultural Development in Central and Eastern Europe, Dolgopolova@iamo.de
Ramona Teuber, Leibniz Institute of Agricultural Development in Central and Eastern Europe, Teuber@iamo.de
Viola Bruschi, Leibniz Institute of Agricultural Development in Central and Eastern Europe, Bruschi@iamo.de
Abstract
Developing Russian food market and the transitional character of Russian economy requires timely knowledge
about Russian consumers’ behavior and nutrition patterns. Until now very little research has been done on the topic.
Besides, the potential of Russian market for functional foods poses additional questions for marketing of such products.
We feel this gap by discussing recent trends in consumer behavior concerning functional products in an emerging postsoviet economy.
Four semi-structured focus group interviews were performed in two Russian cities (Moscow and Irkutsk) in
December 2012. In total 30 people participated in the discussions. Topics discussed included general patterns in food
consumption behavior, connection between food and health, and consumers’ perception of health-related products.
Results of our study suggest the following hypotheses that describe trends in consumer behavior concerning
health-related foods in Russia:
1. Existing income inequality does not change nutrition patterns significantly.
2. Institutional uncertainty in the food sector led to consumers’ loss of trust in formal institutions.
3. Russian consumers have little knowledge about functional foods and determine healthiness by sensory
characteristics, norms and traditions, and family members’ recommendations.
4. Regional differences in consumption behavior are created by the level of market development, income
inequality and natural conditions.
In general, Russian consumers’ behavior reflects the transitional character of the economy. Consumers are still
developing preferences and attitudes, allocating to the different parts of the market, creating strategies to keep traditional
diet and maximize utility that arise country specific questions for food marketing.
104
Introduction
“…food is the most important and frequently
encountered material object that translates
regulatory regimes and power relationships
into lived experience. Thus food has the
almost magical property of jumping scale:
as it moves, it links the global economy
and household economies, political bodies
and the bodies of individuals, the world and the self”
(Dunn, 2009).
Emerging economies are characterized by profound changes in economic and social order of a country that
involve transformations in life-styles and life quality for all segments of the society. Major socio-economic trends
influencing consumer behavior in Russia which have developed during the transition process are: growing income
inequality, deteriorating health, increasing variety of food with prevalence of imported products and institutional
uncertainty. These processes were complemented by few country-specific idiosyncrasies which resulted in a complex stillevolving behavior at consumer markets.
Although some research has been done about Russian consumers’ behavior, nonetheless its transitional character
requires constant monitoring. Besides, Russian food market in general and specifically market for functional foods (or
foods with health benefits) are reported to grow in the future, which poses additional questions for marketing of healthrelated products. We feel this gap by discussing socio-economic factors influencing consumer behavior concerning
functional products in an emerging post-soviet economy.
The structure of this article is as follows. It opens with an overview of recent research concerning soci o-economic
factors of consumer behavior in transitional economies that is followed by the description of methods in this research. The
third section demonstrates the main hypotheses that were created from the analysis of literature and results and section
five concludes.
An overview of recent research concerning socio-economic factors influencing consumer behavior in
transitional economies
Studies about food patterns in transitional post-Soviet economies show similar trends in adjusting to economic
and institutional uncertainties at the food markets. Most important factors that influence shifts in food demand in a
transitional economy were pointed out by Brosig & Ratinger (1999) in their study of Czech households. Those factors
include: “a) the range of food products available on the market; b) changed purchasing power and relative prices; c)
continuous changes in consumer preferences; and d) structural breaks in consumer preferences”. Other evidence suggests
that since transitional countries in post-Soviet sphere share socio-economic characteristics like low incomes and income
inequality the economic determinants of food choice (price, income) become very important (Petrovici, Ritson, & Ness,
2002).
Indeed, huge inequality gap stayed high during the transition period and even increased recently in Russia. This
inequality is formed by the difference between the top decile that gets 30% of total monetary income and the rest of the
population (Denisova, 2012). According to Credit Suisse Emerging Consumer survey 39% of households in Russia have
income of less than 1000 USD per month, besides one third of the household income is spent on food (Credit Suisse, 2011).
Although many aspects of Russian economic growth and improvements in life-quality of Russian citizens seem to
be controversial, statistical reports show growth in the disposable income and food consumption (Rosstat, IMF). Together
with the income increases the demand for more expensive and quality goods. Russians spent US $142.0 bn on food in 2009
and in 2014 they are expected to spend US $204 bn, or 43.7% more (Agriculture and Agri-Food Canada, 2010).
105
Also, the range of available food products has changed dramatically during transition. Decrease in food production
was compensated by imports. In 1996 imported food accounted for 35% of all the food consumption in the country
(Овчарова, 2008). Recently, food production is concentrated in the central Russia with Moscow and St. Petersburg regions
as producers of most food products (Kotilainen, Rajalahti, Ragasa, & Pehu, 2006), although 40% of total food consumption
is still imported (Kotilainen et al., 2006).
Besides, first years of liberalization process were characterized by very quick prices growth. However, prices
were growing not in equal proportions. More quick growth was reported for dairy and bread when prices for vegetables
and potatoes were growing more slowly because people started to produce them in their own garden plots (Овчарова,
2008).
Influenced by these factors and often faced with scarce resources consumers in transition economies can apply
two basic strategies: increasing their incomes or optimizing their consumption. In general Russian consumers
demonstrate the same way of adjusting to new economic conditions as other post-Soviet countries like Hungary and
Poland. Consumers in all these three countries have very strong positive consensus on changing consumption basket and
becoming more price conscious although Russian consumers stand out by demonstrating more strong opinion than Poles
and Hungarians on the topic of using informal networks for getting products and services (Shama, 1992).
Studies about household behavior in Bulgaria and Russia demonstrate that consumers apply similar strategies to
keep the dietary patterns during transition times. They tend to produce more food in the household, especially at the
private garden plots – the tradition that seems to be very persistent in the times of change (see e.g. Seeth, Chachnov,
Surinov, & Von Braun, 1998; Kostov & Lingard, 2002; Ivanova, Dimitrov, Ovcharova, Dellava, Hoffman, 2006) . Same
tendency was also observed for Czech Republic (Dofkova, Kopriva, Resova, Rehurkova, & Ruprich, 2007).
Despite significant common characteristics some country-specific idiosyncrasies also influence the developments
at the Russian food market. One of them is rapidly growing market of functional foods or foods with health benefits that is
usually connected with the deterioration of health in Russia. Although some studies on this topic have been completed, the
results and factors influencing health-related behavior in Russia still seem to be controversial.
Health crisis of Russian population introduced itself in the late 1990’s and has deep historical and cultural roots,
some of which are also responsible for the current attitude of Russians towards health in general and health food in
particular. As Tragakes & Lessof (2003) point out: “The paternalistic Soviet philosophy did not encourage the development
of responsibility of the individual with respect to lifestyle issues that have a major bearing on health (alcohol use, smoking,
diet, etc.), a situation exacerbated by the heavy dependence on alcohol sales as a means of circulating currency in a country
with little access to consumer goods”.
The deterioration of health that accompanied economic growth in Russia was reported to have as the leading
cause of death non-communicable diseases followed by external causes of injury and poisoning all being consequences of
poor diet, smoking and alcohol consumption (see e.g. Tragakes & Lessof, 2003; Marquez, Suhrcke, McKee, & Rocco, 2007).
Alarming health statistic therefore is reflected in Russians’ self-rated health that also does not change a lot over
the years, keeping high-rates of average and poor health (see table 1).
Table 1. Russians' self-rated health (%)
Bobak (1998)
Very good
Perlman (2008)
Men
Women
Men
Women
6
3
3.2
1.1
Rosstat (2008)
2009
28.8
VCIOM
2010
2011
5
6
5
37
38
39
Good
33
19
35.2
20.1
Average
45
49
50.3
58.5
59
46
44
46
Poor
15
25
9.7
16.9
10.8
10
10
9
2
2
1
Very poor
No answer
2
5
1.6
3.5
1.4
Sources: VCIOM (ВЦИОМ) monitoring “Russians’ Health Status”, press issue No. 1912 http://wciom.ru/index.php?id=459&uid=112205; Bobak,
Pikhart, Hertzman, Rose, & Marmot (1998); Perlman & Bobak (2008); Goskomstat http://www.gks.ru/free_doc/2008/demo/zdr08.htm.
106
Transitional character of Russians’ perception of their health is reflected in several recent studies that report
growing interest and more care about health. Federal Service of State Statistics (Rosstat) in 2008 performed selective
survey “The influence of behavioral factors on health status of the population”. The results show that good health is now
one of the most important values for Russian people. Most respondents (84,2%) realize that their health status mostly
depend on themselves. This is consistent with the results of consumer focus group interviews by (Popova, Frewer, Jonge,
Fischer, & Kleef, 2010) that recently Russians are more attentive to their health and health-related food issues than in the
past. Agriculture and Agri-Food Canada (2010) also identifies that in 2007-2009 82% of Russians started to pay more
attention to their health.
Although, according to the same Rosstat survey, most Russians do not care about their health in a way of
sustaining healthy life-style, visiting doctor regularly or eating healthy foods. Most people are not used to the healthy lifestyle, and are influenced by negative social norms and traditions. Typical answers to the questions like: “Why do you
smoke?” or “Why do you drink alcohol?” are: “Out of habit” or “Because of traditions”. When feeling sick, 62,7% of Russians
prefer self-treatment with the use of medicine or folk methods and 24,9% of people who prefer self-treatment consider
alcohol as folk medicine for cold or other sicknesses.
Contradiction of results demonstrates that Russian consumers still heavily depend on Soviet norms and traditions
and at the same are not excluded from the global trends of food consumption that emphasize more healthy nutrition. Sales
of functional foods in Russia are increasing with bakery and dairy being products sold the most (see table 2). Russians
demonstrated extremely quick adaptation to functional ingredients in dairy products, although the demand is mostly
concentrated at higher income group (Kotilainen et al., 2006), which is logical considering the fact that people with higher
incomes are more involved in global food consumption trends.
Table 2. Functional Foods Sales in Russia, 2006-2010 bn rubles (bn euros)2
2006
Functional
sales
foods
2007
2008
2009
2010
41.19 (1.2)
49.73 (1.4)
65.79 (1.6)
61.12 (1.4)
65.81 (1.6)
Bakery
27.78 (0.8)
33.39 (0.93)
44.62 (1.08)
36.74 (0.85)
40.56 (0.99)
Dairy
8.90 (0.26)
11.00 (0.31)
13.64 (0.33)
16.37 (0.38)
15.58 (0.38)
Cereals
0.40 (0.01)
0.32 (0.01)
0.45 (0.01)
0.49 (0.01)
0.61 (0.01)
Other
4.12 (0.12)
5.02 (0.14)
7.07 (0.17)
7.51 (0.17)
9.06 (0.22)
By product type:
Source: BusinesStat (2011)
Rapid market growth caused some consumer behavior research at the functional food market. For example, the
survey of consumer preferences in Altai region demonstrated very little knowledge of consumers about functional foods
and enriched foods. 56% of respondents consider their knowledge about functional foods as insufficient and 10% as nonexistent. 44% of respondents know about enriched products. Mostly people consider functional products as products with
unclear ingredients and low quality. Also people mention that advertised product characteristics are very often not
present in reality. Survey also shows low frequency of functional and enriched product purchases, so that they are not a
part of normal diet. Most popular functional products are: dairy products, beverages, and bakery. Due to the lack of
knowledge people consider alcohol as enriched product. Most popular information source about functional foods are
friends and acquaintances (29%), although respondents show low trust for this group. More people trust doctors (52%),
but only 9% get information from this source (Маюрникова, Новоселов, & Болховитина, 2010).
Another research about consumer behavior at functional foods market was conducted at the city Nakhodka in
Primorskiy Kray. At first, respondents were asked to evaluate their health status: only 24% think they are healthy, 61%
confirm the presence of some diseases and 15% do not have clear opinion about that. Among the reasons for poor health
2
Numbers are converted into euros according to yearly exchange rate.
107
63% of respondents mention bad ecological situation and 24% - unbalanced diet. Most of the respondents (88%) agree
that balanced diet can help reducing unfavorable environmental influence and reduce the risk of some diseases.
Surprisingly big difference exists between consumers’ understanding of the connection between diet and health and
practical steps about it: 47% do not pay attention to the information on the food labels, only 18% buy vitamins, 16% minerals and 12% - food supplements; 36% of respondents never buy any micronutrients. Respondents also show little
knowledge about what micronutrients contained in food products can prevent diseases: 54% had information only about
the lack of iodine; 23% about ferrum as a source of hemoglobin and 20% about calcium for bone structure (Табакаева,
2011).
In light of growing incomes and forming attitudes functional foods show a good potential at Russian market. But
since these products are somehow innovative for Russian consumers the main constraints for market growth will
probably be lack of knowledge and informal institutions of food consumption.
Methods
Since the knowledge about Russian consumers’ behavior is still scarce we’ve attempted to get more insights into
recent trends and performed qualitative study in the form of focus groups. This method has proved to be effective at the
first stages of research for gaining preliminary overview of general aspects.
Four focus group interviews were conducted in two Russian cities, Moscow and Irkutsk, with 30 participants in
total. The selection of the cities was aimed at representing the difference between capital city and periphery. Participants
were recruited through personal connections. The following criteria were used to select participants: gender, age,
educational and income levels. The structure of the groups was heterogeneous, displaying differences in main selection
criteria (see table). The number of participants in the groups varied from 5 to 9. Participants were asked to identify their
income level according to the following income groups: up to 750 euros per month, 751-1500 euros per month, 1501-2250
euros per month, more than 2251 rubles per month. Respectively, we can identify 4 societal classes: low income class, low
middle income class, middle income class, and high income class.
Table 3. Focus Groups Characteristics
Moscow
Irkutsk
M.1.
M.2.
I.1.
I.2.
Participants
9
5
8
8
Gender
(male/female)
5/4
2/3
4/4
4/4
Range of
participants’ age
from 26 to 61 years old
Educational
level
Graduate
Undergraduate/Graduate
Range of
participants’
income level3
from up to 750 to more
than 2251 euros per
month
from up to 750 to 2251
euros per month
euros per month
euros per month
Besides, participants were asked to complete short questionnaire before the interviews with questions about the
presence of children, food-related chronic diseases, smoking and alcohol consumption.
The interviews were semi-structured and performed using the guide based on (Barrios, Bayarri, Carbonell,
Izquierdo, & Costell, 2008; Chambers, Lobb, & Mortimer, 2006; Honkanen, 2006). Topics discussed included general
Participants were asked about their income level in rubles. Corresponding amount in euros is presented in the table and in the text
below.
3
108
patterns in consumption behavior, connection between food and health, and consumers’ perception of foods with health
benefits.
Each interview took 70 to 90 minutes and was video and audio recorded. All the interviews were conducted in
Russian by one of the authors who is a native Russian speaker. All recorded data were transcribed and translated from
Russian into English.
Data were analyzed using classical content and comparative analysis and contextualized counts of categories.
Results of the analysis were organized as research hypotheses that possibly define consumer behavior trends.
Discussion of results
Hypothesis 1: Despite existing income inequality consumers seem to share tradition al preferences for food
and nutrition patterns do not differ much between different income groups.
In times of economic uncertainty and growing income inequality price is usually considered to be one of the most
important factors that influence food consumption behavior. For example, price was proved to be one of the most
important factors for food choice in Russia by Honkanen (2006), Honkanen & Frewer (2009). Another important food
choice factor coming from changing economic conditions is availability of food. In particular (Liefert, 2004) shows that
there exist inadequate access to food by certain socio-economic groups caused by low-income, garden plot availability and
high income inequality.
All that being true, decrease of income does not necessarily imply diet changes. Soviet norms of healthy nutrition
were not based on expensive products, but rather on a basic livestock products and cereals. These products are still low priced and available for production at the garden plots. Consequently, when faced wi th the decreased income, consumers
do not change their diet – they change the strategies of household food supply. Dore, Adair, Popkin, & Al (2003)
demonstrate that income and healthy diet are not directly related for some consumers, who switch to cheaper foods and
household food preparation to keep existing eating patterns.
Therefore, while strategies vary, the composition of diet for different income groups is the same. Irrelevant of the
income level, focus group participants mentioned the same range of products they usually consume, that mostly included:
meat, vegetables, fruits, dairy, and cereals. Price as the most important factor influencing food choice was named by only
one participant. Among the other most important factors of food choice were: time, presence of children, healthiness of
food, diversity of food, climate and traditions (see table 4).
“My choice of products depends mostly on traditions, Russian traditions and price and I prefer more healthy food:
soups, porridges, lard, meat – everything that is necessary in our region… Also my family eats a lot of self -grown food. We eat
our own meat, vegetables, so I don’t pay for it” – female, 25 years old, graduate, income up to 750 euros per month.
Table 4. Diet, factors of food choice, and income level of focus groups participants
Participants
List of Products
Factors influencing food choice (in a
descending order)
Income Level
(euros per month)
Moscow
M.1.1.
cereals, porridge, dairy products
health
1501-2250
M.1.2.
pasta, bread, cereals, pizza, vegetables
price
up to 750
M.1.4.
meat, fish, soups, porridges
family
751-1500
M.1.5.
vegetables, meat and fruits
healthy lifestyle, philosophy
more than 2251
M.1.7.
different, less fatty, fried
diversity, healthy lifestyle
751-1500
M.1.9.
pasta, bread, cabbage, potatoes, fruits, beer
diversity
751-1500
M.2.1
meat, vegetables, cheese, bread
taste
751-1500
M.2.2
same as M.2.4.
M.2.3
meat, grains, vegetables, fruits
quality, price
751-1500
109
M.2.4
meat, grains, vegetables, fruits, dairy
health
up to 750
M.2.5
bread, oat meal, vegetables, soups
health
751-1500
Irkutsk
I.1.1
grains, meat, fish, processed food
diversity, price, time
751-1500
I.1.2
meat, fruits, vegetables, grains
healthiness, price, climate, children
751-1500
I.1.3
soups, porridges, bacon, meat, cabbage, borsh
traditions, price, climate
up to 750
I.1.4
fruits, sour cheese, sour cream, meat, borsh,
sour cabbage, bread
necessity
up to 750
I.1.5
shi, porridge, meat, chicken, fish and dairy
children, knowledge, climate
751-1500
I.1.6
soups, porridges,
vegetables, meat
quality, price, children
751-1500
I.1.7
sour cheese, buckwheat, peas, beans, chicken
sport, time
I.1.8
tea, soup, second courses
time, garden plot
up to 750
I.2.1
meat, fish, vegetables, fruits, porridges, eggs
freshness, price
up to 750
I.2.2
processed food, meat
quality, price, time, climate
751-1500
I.2.3
porridges, fish, meat, processed foods, dairy,
sauerkraut, cabbage, cucumbers
freshness, price
up to 750
I.2.4
anything, milk, bread, meat, fruits
healthiness, price, time
1501-2250
I.2.5
same as I.2.6.
appearance of the product
751-1500
I.2.6
meat, vegetables, fruits, processed food, salads,
sausages
freshness, price
751-1500
I.2.7
Everything
healthiness and freshness, price
751-1500
I.2.8
very diverse diet, meat, vegetables, fruits
quality and taste, family
1501-2250
sour
cheese,
dairy,
Hypothesis 2: Institutional uncertainty in the food sector led to consumers’ loss of trust in formal
institutions, including medical ones. Russian consumers tend to trust only themselves and close personal informal
networks. This tendency has another implication - since consumer choice is mostly determined by informal
institutions (family values, friends’ opinions, etc.) trends in consumer behavior have multidirectional character that
increases the complexity of consumer behavior at Russian food markets.
Post-communist societies and especially Russia are characterized by low trust in formal institutions.
Consequently, institutions of family and friends play the major role (Pehlivanova, 2009). According to Bobak et al. (1998)
49% of Russian men and 38% of women trust only themselves; 38% and 48% respectively trust informal institutions only.
“I’m sitting here and thinking that I would gladly buy new product not because of advertisements on TV, but if I would
find it by myself somewhere at the corner of a shop and tell my friends later: “Look, what a cool thing I have found!” But if I see
it on TV – then immediately I would say “No”. I would like to find it by myself and then whisper to a friend” – female, 38 years
old, graduate, income not specified.
The legacy of Soviet regime – distrust in formal government institutions – makes consumers trust only themselves
or their personal connections. In the food sector this tendency is reflected i n the wide networks of personal connections
between farmers and consumers, between owners of garden plots, etc.
“The only reliable information channel in our country is word of mouth. So I would gather a group of retired people
and give them new product for free, tell them about all the health benefits, and later these retired people, when they visit
hospitals…, when they are in a line…, tell each other, and it will be advertisement for free. They will also tell their
grandchildren and their children…” - female, 31 years old, graduate, income level 1500- 2250 euros per month.
Since food-related institutions in Russia are not reliable consumers compensate lack of institutional trust via
developing personal knowledge and acquiring additional information about the products (Popova et al., 2010).
110
“…we don’t buy anything in the supermarket, but my husband goes to the market and also makes social contacts
there – this is very comfortable… he has stable contacts to buy better products at lower prices, sometimes sellers even call him
and say when certain product arrives and at which price” – female, 62 years old, graduate, income level 750-1500 euros per
month.
Hypothesis 3: Russian consumers have little knowledge about foods with health benefits. The healthiness of
food for Russians is mostly determined by sensory characteristics, Soviet norms and traditions, and family members’
recommendations.
When asked about functional foods or about health effects of food products almost no participant could give a
complete response. One exception was a woman with medical background. Mostly the knowledge of foods with health
benefits is limited to dairy and cereal products that are the most developed sectors at Russian functional foods market.
Perhaps, Soviet recommended “norms” of food consumption have strengthened the tradition of livestock products
(meat, eggs, dairy products) oriented diet preferences of Russian consumers (as mentioned by Liefert, 2004) and being
transferred through family institution take responsibility for the understanding of healthy food by Russian consumers.
“Porridges are healthy because we were taught from the childhood – you should eat porridge, it is healthy!” – female,
31 years old, graduate, income level 1501-2250 euros per month.
“Our parents were feeding us with this food, and we are used to it now. People who now go abroad more, they try
something new, who lives such a life… globalization, you kno w… Those who don’t go, they still eat potatoes with meatballs.” –
female 39 years old, graduate, income up to 750 euros per month.
Sensory motives as the most important determinant of food choice for Russian consumers are noted by Honkanen
(2006), Honkanen & Frewer (2009). Results of our focus group study show that participants emphasize taste as a product
attribute that is most attractive for them and sometimes can be even a criterion of the product healthiness.
“I suppose that the more nutritious is the food and the tastier, the better it is metabolized and influence moral and
physical health. If the food is tasty then it doesn’t matter if it is soup, meat, fish or anything else. The point is for it to be tasty
and look good”. – male, 60 years old, graduate, income 1501-2250 euros per month.
“Taste is a criterion of product’s healthiness” – male, 61 years old, graduate, income up to 750 euros per month.
It is also interesting how the connection between food and health is perceived by Russian consumers. The
connection with health is mostly defined by avoiding fatty and sugar foods in order not to gain weight and avoiding foods
with a lot of additives (Honkanen, 2006).
“I try to buy healthy food, not processed somewhere at the factory. To say so, products in their clean form, clean meat
without fat, preferably beef, grains, vegetables, fruits, dairy, also without any additiv es. I also try to watch my weight, not to
buy sweets… I tend more to natural products” – female, 39 years old, graduate, income up to 750 euros per month.
The fact that health considerations are far not the main motives for food choice (Honkanen, 2010) supports the
idea that food is not seen by Russian consumers as a way to improve health.
“You know, to me the main criteria for grain products are physical characteristics. Elasticity, how fresh it is. If I see a
bread like a stone, there can be a picture of anyone on its label, I will not take it. More important is that it is crispy, so that I
feel it… So, if it really would be fresh and with these physical characteristics – I would choose it. And would pay more. May be”
– male, 52 years old, graduate, income more than 2251 euros per month.
One more important characteristic is the fact that Russians are also cautious in their consumption of imported
foods, despite (or because of) significant share of imported product at the market. Thelen & Ford (2006)demonstrate that
Russian consumers tend to prefer domestic products over imported ones. Domestic food is considered to be more natural,
contain less chemicals and preservatives and appeal to Russian traditions.
“I think that it is better to orient on traditional products because they are checked by time, by tens, hundreds of years.
With new products you should be careful” – male, 52 years old, graduate, income more than 2251 euros per month.
Hypothesis 4: Regional differences in consumption behavior are created by the level of market development,
income inequality and natural conditions.
111
Recent economic situation in Russia is characterized by notable difference in incomes between geographical
areas, where Moscow presents the exceptional case of higher incomes and diversified consumer choices (Kotilainen et al.,
2006). Projections for market growth of organic and healthy foods also show that markets for health-related food will
most probably stay limited to high-income groups of consumers in Moscow and St. Petersburg (Agriculture and Agri-Food
Canada, 2010). And although our data show that price was not the most important food choice factor both in Moscow and
Irkutsk, it is clear that consumers in Irkutsk region have less purchasing power and food choice. This makes them create
specific strategies for expenditure reduction.
“I prefer to buy less… I can buy only 3 apples and divide it for my children, but they will smell like real apples…” –
female, 34 years old, graduate, income 751-1500 euros per month
“If you can buy grains by kilos or in a package, it’s better to buy by kilos, because why would you pay more money fo r
a package?” – male, 36 years old, undergraduate, income not specified.
Living in a difficult natural conditions make Irkutsk consumers more aware about the specific nutrition needs and
their diet is more livestock products oriented (see table 1).
“As my grandfather used to say the best fruit is a sausage, or meat. We live in a cold climate, we need a lot of energy
and positive spirit, so the more proteins – the better, so it’s meat” – male, 23 years old, graduate, income 751-1500 euros per
month.
Due to lower incomes and greater place of traditions consumers at the periphery markets show more skeptical
perception of functional foods and new products in general. Compared to metropolitan area, periphery consumers lean
more towards domestically produced traditional Russian food.
Conclusions
In general, Russian consumers’ behavior reflects the transitional character of the economy. Consumers are still
developing preferences and attitudes, allocating to the different parts of the market, creating strategies to keep traditional
diet and maximize utility.
The results of our focus group study show that price might play not as important role as is usually assumed for
transitional economy with high income inequality. In the case of post-communist countries where the role of Soviet norms
and institutions is still high, healthy nutrition is perceived as a combination of not expensive products that are also
available for production at the garden plots, like grains and vegetables. Consequently, when faced by decreasing income,
instead of changing diet consumers change strategies of household food production.
Our research also shows that despite the fact that Russian consumers share some behavioral trends with other
transitional post-Soviet counties, there also exist some country-specific trends. First, consumers are highly diversified by
incomes, regions, nationalities, cultures. Attempts to distinguish segments among Russian consumers show that different
groups significantly vary in their preferences (see e.g. Honkanen, 2010). Second, important role of informal institutions
that highly influence consumer behavior make this behavior more complex and pose additional challenges for marketing
strategies. Third, the success of new food products at the periphery markets will mostly depend on the ability to fit
traditional diet and face such barriers as low incomes and conservatism of consumers.
Next steps of our research involve performing quantitative analysis to prove the above-mentioned hypotheses.
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The Importance of Country of Origin (COO) on
Consumers Preference: Study on Packaged
Butter in the Food Market of Azerbaijan
PROPOSAL FOR MASTER THESIS
Country of Origin (COO), Conjoint Analysis, Butter Brands, Purchase Decision Making.
Kanan Amirov, University of Bonn, kanan.amirov@gmail.com
Abstract
The consumer decision making process is real complex system that requires a lot of factors such as economical, social,
personal and demographical to be taking account. In last decades, an importance of country of origin is increasing
relatively to other factor in the perception of consumers. It is one of the most investigated concepts in the field of
marketing as well as in consumer behavior. Basically, the role of country of origin becomes paramount important in
purchase decisions and often it is also considered as a fifth element of product mix.
In spite of fact that several scientists pay remarkable attention to the factor of country of origin (COO), no final conclusi on
was made regarding to the exact effect of COO on product evaluations in previous studies. The most of these studies
provide evidence that COO’s influence on product evaluations and perception is moderated when encountered alongside
with other extrinsic cues (Price, brand, packaging and so on). However, it is really difficult to consider also intrinsic cues
such as quality, taste, and smell with extrinsic cues in the same research work.
In this paper, I will find out the importance of country of origin among other extrinsic attributes of product. The second
hypothesis is to determine the relationship between social-economic furthers and preference of consumers for COO.
Butter was selected as an objected product because of high usage of it in Azerbaijan (author’s home country).
Nevertheless, only packaged butter brand are involved in this research because of incom parability of packaged and
unpackaged brands. Five well-know characteristics of packaged butter brands were determined as a main product cues;
they are weight, price, package type, COO and brand name.
As a method, conjoint (trade off) analysis is used in order to offer respondents a situation that contain multi-attributed
judgments. This method allows measuring the degree that consumer value among all of given butter attributes in the Food
Market of Azerbaijan. On this purpose, questionnaire is made regarding to several butter brands that contains various
extrinsic attributes and asked to targeted sample. Afterwards, software program SPSS is used to analyze the data and make
final conclusion regarding to the research questions.
Problem Background
The effect of country-of-origin on consumer’s preference became the main objective of researches after the first known
article of Robert Schooler on this topic in 1965. Later on, different studies have shown that country of origin (briefly as
COO) effect plays paramount role on purchase decision making process and scholars started to pay more attention on it in
the context of product perception and evaluation (BAUGHN and YAPRAK 1993). The concept of COO was defined by
NAGASHIMA (1970) as
“The picture, the reputation, the stereotype that businessmen and consumers attach to products of a specific country”.
In spite of the fact that several scientists pay remarkable attention to the factor of country of origin (COO), no final
conclusion had been made regarding to the exact effect of COO on product evaluations in previous studies. Most of these
studies provide evidence that the influence of COO’s on product evaluations and perception is moderated when encoun115
tered with other extrinsic cues such as price, brand, packaging (URBONAVIČIUS and GINEIKIENĖ 2009). However, it is really
difficult to consider also intrinsic cues such as quality, taste, and smell with extrinsic cues in the same research work.
In last decades, researchers have suggested that cues affecting decision processes are product specific. This issue puts
forward that all products contain a set of specific attributes as well as COO that affect consumer’s choice. It is on this
rationale that several scientists including HAN and TERPSTRA made a suggestion that the examination of the effect of
country of origin on consumer’s choice be done in the term of specific products and attributes (HAN and TERPSTRA 1988).
However, the search for relevant information about cues of the chosen product would require further search for
information which originates not from the implicit or explicit nature of a product. Usually, consumers collect this required
information cues from various sources including media (advertisements), social environment and different agencies. This
group of information includes the search for other information, where the product originated from or ‘ place of origin’ of
the objected product (GUDERO 2001). More concretely, a specific product and its characteristics have to be identified and
rated (or ranked) for making conclusion on importance of them to consumers. For this purpose, this study being
conducted to determine the importance of COO in the purchase process of butter in the food market of Azerbaijan.
Theoretical background and state of the art
Plenty of analyses were implemented on the purpose of COO in the last few decades. Based on the main purposes of these
papers, the importance of country of origin was analyzed in three types of studies, which also reveal the chronological
development of researches in the area of marketing: Single-cue; Multiple-cue; High complexity studies (SULAIMAN 2008, p.
33).
Single-cue study was the first method that proves the existence of country of origin effect on the consumer’s preference.
General products, different classes of products (NAGASHIMA 1970&1977), as well as specific products (TONGBERG 1972;
WHITE 1979) were analyzed by this study.
The country of origin effect was investigated by CAI and coworkers (2004) and final conclusion was that COO is better
implemented and understood in a multi-cue study. The multi-cue environment became the essential option in today’s
marketplace because of the fact that consumers have various accesses to required information regarding existent products
(CAI et al. 2004). More realistically, KNIGHT demonstrated that image of country acts as just one of known extrinsic cues of
product that buyers take account on the perception of product quality (KNIGHT et al. 2007).
In the literature, the big share of the previous studies on COO was conducted in different developed countries including
USA and Canada. This issue implies that inferences drawn from such studies may suffer lack of cross -cultural
considerations; in this case, it limits the validity and generalization of final results (BAKER and BALLINGTON, 2002).
In spite of several scientific studies on COO, only few of such studies were conducted on food products in literature; they
have mostly been on cars, TV channels, etc. Industrial products and appliances were the main focus of such studies. KNIGHT
et al. (2007) stated that people usually purchase food products with “low involvement” because of product durability.
Differently, HOYER and M ACINNIS (2000) was not satisfied with this statement; in low involved products, usually purchas er
don’t engage in long information processing (in COO as well). However, the majority of scholars indicate that food
products category contains the most important product that requires frequent purchases. Indirectly, it implies that small
change in the COO perception as a result of changes in the economic and political conditions as well as in several other
issues will strongly affect purchase intention of consumers (PHILIPPIDIS and HUBBARD 2003).
1. Main Objectives
Azerbaijan is one of the countries that basically meet its demand for food products by imports. In this situation, consumers
have various perceptions regarding local and foreign brands depending on which country they come from. However, COO
is not the only cue that consumers take into account in the period of decision making and this is why other essential
product cues were also considered in this research. Basically, the main objective of my thesis was to define the role of
country of origin as essential factor in the decision of consumers in Azerbaijani on butter brands.
Initially, it seemed much more complex to measure this effect in terms of all food products. Due to this issue and literature
preference, this study concentrates on a specific product. Packaged butter is selected because of its high consumption and
116
existence of several foreign brands in Azerbaijan. According to statistics, 60 grams of butter is consumed per person per
day on average in Azerbaijan (HAYDAROVA 2012). In relevant food market, there are various packaged and unpackaged
butter brands available for sale. Moreover, only packaged butter is considered in this study because of its inherent
packaging cost that makes it incomparable with unpackaged butter brands in the market. Therefore, only packaged butter
brands are being selected as the products on interest for this study, with concept of “packaged” been emphasized in the
title of the thesis as well.
In the course of time, the main attributes of packaged butter and their existing alternatives would be selected in the
market. On this point, different cues believed to effect the decision of consumers are portrayed in the Figure 1 as below.
Figure 1. The important attributes in butter purchase
Brand
COO
Consumer’s
choice
Packagin
g
Price
Source: Constructed by author
Generally, the study claims that COO is one of the essential cues in the evaluation and perception of butter purchase;
however, the main objective is to figure out how strong this effect is in presence of other attributes. Secondly, qualitative
analysis would be performed to investigate the relationship between consumer’s choice and their social-demographic and
personal characteristics. Due to the multi-cues nature of this research, conjoint analysis is selected as the most appropriate
method that allows making judgment among several attributes.
Hypothesis and Research questions
This research aims to define the extent to which COO is important for consumers among other attributes of butter brands
in purchasing process. More concretely, two research questions are considered;
1.
What is the real effect of COO on buyers in the process of decision making for butter brands? This question is
based on quantitative analysis.
2.
What is the interrelation between social-demographic and personal characteristics of consumers and their choice
regarding the factor COO? Quantitative analysis is conducted for this part as well.
Firstly, based on a pilot survey with few respondents, general information and the main extrinsic cues of butter brands
were collected in Azerbaijan. On this purpose, more cues were considered in the list of important attributes in purchase
process of butter. For instance, brand name, COO, organic, weight, protein and fat content, price, packaging types was
included in the first list of main product attributes of butter. Afterwards, small qualitative analysis was conducted with 20
people in order to determine the most important attributes among them in Azerbaijan. Respondents were asked “what
attributes are important for you when you purchase butter?” and 4 product attributes were determined as the most
important cues at the end. Moreover, conjoint analysis is usually done with 4 (ideal) or 5 (max.) attributes in SPSS
program. The eliminated attributes and their reasons are described below:
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Table 1. Eliminated attributes
Eliminated Attributes
Reasons
Weight
Possible interaction between price and weight
Protein and fat content
Not having standard measurement on packages. On different brands, it is indicated
with gram or percentage (%).
Organic and Inorganic
All selected brands are produced naturally.
Source: Constructed by author.
The remaining cues namely country of origin (COO), brands, price, and packaging were selected as the main product
attributes for butter. Subsequently, alternatives of each attributes were found and added to the final list.
Table 2. Attributes and alternatives
Attributes
Number
Alternatives
COO
5
Azerbaijan (local), New Zealand, France, Russia, Finland
Brands names
5
PalSud, Anchor, President, Doyarushka, Fin
Price
4
1.8; 1.9; 2.0; 2.1 (AZN)
Packaging
2
Plastic; Waxed paper
Source: Constructed by author.
Methodology
As mentioned above, conjoint analysis is the quantitative analytical tool for this research. Simply, this analysis is a metho d
that allows measuring consumer preferences regarding the attributes of service or a product. By conjoint analysis,
researchers usually can find answers to questions such as: “What product attributes are important or unimportant to the
consumer?, What levels of product attributes are the most or least desirable in the consumer’s mind?” (SPSS INC. 1997).
Here, the main interest is to know how the various constructs would be traded off in different combinations; for example
to decide whether one feature of product is desirable enough to sacrifice another (M ALHOTRA and BIRKS 2003).
Basically, a research aims to follow the stages for constructing conjoint analysis as below: formulate the problem,
construct the stimuli, decide the form of input data, select conjoint analysis procedure, interpret the results and assess
reliability and validity (M ALHOTRA and BIRKS 2003).
On purpose of data collection, the content and design of questionnaire was done in line with the basic requirements of
conjoint analysis. Generally, SPSS uses the “full-concept approach” for conjoint analysis. In this approach, respondents have
to rate or rank given alternative products defined by selected alternatives of all attributes (SPSS INC. 1997). In my case,
having 4 attributes; COO, brand names, price and packaging and respectively, 5, 5, 4, 2 alternativ es in each, 200 (5*5*4*2)
cards or profiles can be made as different combinations in full concept approach. More realistically, “ fractional factorial
designs” can be used and it presents a suitable fraction and number of all possible combinations. This des ign helps to
prevent problems associated with high time-consuming, high cost, fatigue with respondent and thereby potentially
invalidating responses. In SPSS, the “Generate Orthogonal Design” automatically generates the certain number of
orthogonal fractional plans. Using this procedure, 25 different product profiles of butter were generated. Each product
profiles contained different combination of attributes. On the second hand, 25 profiles also seem ideal when it is calculated
according to formula established by AUTY (1995).
Cards/parameters ≥ 1.5
Parameter= number of alternatives-number of attributes= (5+5+4+2) - 4= 12
118
If we assume card/parameters ratio is equal to 2, then number of cards has to be equal to 24 (12*2). Dues to generation of
orthogonal design, 25 cards were included in the quantitative part of the questionnaire in order to collect the respondent’s
preference. Nevertheless, these profiles don’t mean that all of described products exist in the market.
Each profile contains four attributes and it will be asked of the respondents to rate profile on a 7 point scale. Due to the
fact that a normal a 9 point scale used for previous studies were problematic for respondents in terms of rating their
preferences, a 7 point scale has been chosen.
In qualitative analysis, I included 8 questions concerning to social, demographical, personal characteristics of respondents
to questionnaire. Initially, questions about sex, age, education and occupation were added to question list. Then, the
following questions were constructed based on different hypothesis:
-How much do you spend on food products per month? Number of households in the family? The intervals for these
questions were taken from the master thesis that was done by GULIYEV (2007) on the similar topic.
-How often do you purchase butter? It aims to figure out a relationship between purchase frequency and decisions made
on butter brands.
-Are you basically weekend shopper? This question is based on idea that people can evaluate and consi der more factors
(attributes) in the purchase decision making process at weekends than in regular days.
In contrast to several related research I did not include question regarding the income level of respondents; objected
country has a problem of corruption and usually people do not have stable monthly income.
Totally, questionnaire contains 33 questions and its preliminary list is attached at the end of this document. At least 150
respondents will be interviewed online via the internet. Unfortunately, it is not possible to make identical sampling for an
online survey. However, questions concerning social demographic characteristics of people help to make conclusion on
population characteristics.
In SPSS, the procedure of conjoint analysis uses the ordinary least-squares estimation. It was found that this method
performs as well as other methods, and additionally it has the advantage of being easier to use and interpret (SPSS INC.
1997). The data coding and process of analysis is elaborated on at the end of data collection. Coded data would be entered
in the software package SPSS in order to get output of conjoint analysis. Finally, the program will guide me in making a
final conclusion on importance of COO in the midst of other 3 attributes of butter in the food market of Azerbaijan.
Expected Result
Using procedure of conjoint analysis, part worth utility will be calculated for each level of attributes in selected profiles. By
SPSS program, coefficients of variables and utility scores can be used to make comment on the relative importance of each
attributes for all attributes. More detailed, utility scores (or ratings) in outputs shows how important each product
characteristic is to the respondent’s overall preference of a product. Afterwards, it will enable the researcher to make a
conclusion on extent of attention people attach to COO in buying process of butter brands.
The final result of this research will help me to conclude as to whether or not country of origin (COO) plays an important
role in effecting the attitudinal change of the consumers by creating perceptional competitive differences between
products in the mind of a consumer.
119
QUESTIONNAIRE
Below questionnaire is designed in order to investigate in important factors of purchasing process in the food
market of Azerbaijan. The main objective of research is butter brands.
Collected data will be used only for this research.
Thanks for your valuable time.
1. Questions concerning to different product profiles.
Please, cross the name on the scale that best reflects the extent you prefer the product described. You can use one
number between “1” and “7” to indicate your preference. In product profiles, “COO” is abbreviation of Country of
Origin factor.
Please, notice that there is not any true or false answer.
Profile 1.
Brand- Palsud; COO- New Zealand; Price- 2.1; Packaging- Plastic
Least
Preferred
1
2
3
4
5
6
7
Most Preferred
Profile 2.
Brand- Fin; COO- France; Price- 2.0; Packaging- Waxed Paper
Least
Preferred
1
2
3
4
5
6
7
Most Preferred
Profile 3.
Brand- President; COO- Azerbaijan; Price- 2.1; Packaging- Waxed Paper
Least
Preferred
1
2
3
4
5
6
7
Most Preferred
Profile 4.
Brand- Palsud; COO- Finland; Price- 2.0; Packaging- Waxed Paper
Least
Preferred
1
2
3
4
5
6
7
Most Preferred
Profile 5.
Brand- Fin; COO- Azerbaijan; Price- 1.9; Packaging- Waxed Paper
Least
Preferred
1
2
3
4
5
6
7
Most Preferred
Profile 6.
Brand- Anchor; COO- France; Price- 1.8; Packaging- Waxed Paper
Least
Preferred
1
2
3
4
5
6
7
Most referred
Profile 7.
Brand- Doyarushka; COO- Azerbaijan; Price- 2.0; Packaging- Plastic
Least
Preferred
1
2
3
4
5
6
7
Most Preferred
Profile 8.
120
Brand- Fin; COO- Finland; Price- 2.1; Packaging- Plastic
Least
Preferred
1
2
3
4
5
6
7
Most Preferred
Profile 9.
Brand- Anchor; COO- Azerbaijan; Price- 1.8; Packaging- Plastic
Least
Preferred
1
2
3
4
5
6
7
Most Preferred
Profile 10.
Brand- Doyarushka; COO- Russia; Price- 1.9; Packaging- Waxed Paper
Least
Preferred
1
2
3
4
5
6
7
Most Preferred
Profile 11.
Brand- Doyarushka; COO- France; Price- 2.1; Packaging- Waxed Paper
Least
Preferred
1
2
3
4
5
6
7
6
7
6
7
Most referred
Profile 12.
Brand- Palsud; COO- France; Price- 1.9; Packaging- Plastic
Least
Preferred
1
2
3
4
5
Most Preferred
Profile 13.
Brand- President; COO- France; Price- 1.8; Packaging- Plastic
Least
Preferred
1
2
3
4
5
Most Preferred
Profile 14.
Brand- Palsud; COO- Azerbaijan; Price- 1.9; Packaging- Waxed Paper
Least
Preferred
1
2
3
4
5
6
7
6
7
Most Preferred
Profile 15.
Brand- President; COO- Russia; Price- 2.0; Packaging- Plastic
Least
Preferred
1
2
3
4
5
Most Preferred
Profile 16.
Brand- Fin; COO- New Zealand; Price- 1.8; Packaging- Waxed Paper
Least
Preferred
1
2
3
4
5
6
7
Most Preferred
Profile 17.
Brand- President; COO- New Zealand; Price- 1.9; Packaging- Waxed Paper
Least
Preferred
1
2
3
4
5
6
7
Most Preferred
Profile 18.
Brand- Doyarushka; COO- New Zealand; Price- 1.8; Packaging- Plastic
Least
Preferred
1
2
3
4
5
6
7
Most Preferred
121
Profile 19.
Brand- Anchor; COO- New Zealand; Price- 2.0; Packaging- Waxed Paper
Least
Preferred
1
2
3
4
5
6
7
Most Preferred
Profile 20.
Brand- Palsud; COO- Russia; Price- 1.8; Packaging- Waxed Paper
Least
Preferred
1
2
3
4
5
6
7
Most Preferred
Profile 21.
Brand- President; COO- Finland; Price- 1.8; Packaging- Waxed Paper
Least
Preferred
1
2
3
4
5
6
7
Most Preferred
Profile 22.
Brand- Anchor; COO- Russia; Price- 2.1; Packaging- Waxed Paper
Least
Preferred
1
2
3
4
5
6
7
6
7
6
7
Most Preferred
Profile 23.
Brand- Anchor; COO- Finland; Price- 1.9; Packaging- Plastic
Least
Preferred
1
2
3
4
5
Most Preferred
Profile 24.
Brand- Fin; COO- Russia; Price- 1.8; Packaging- Plastic
Least
Preferred
1
2
3
4
5
Most Preferred
Profile 25.
Brand- Doyarushka; COO- Finland; Price- 1.8; Packaging- Waxed Paper
Least
Preferred
1
2
3
4
5
6
7
Most Preferred
2. Questions concerning to Social, Demographical, Personal characteristics of respondents.
Please, cross one of the boxes in order to give answer to following questions. And write down your occupation in 4 th
question.
1.
Sex:
Male
Female
2.
Age:
16- 25
26-35
36- 45
46- 55
56 ≤
3.
122
Education
High School;
Bachelor;
Master
Doctoral
Occupation: ………………
How much do you spend on food products per month?
≤50
51-100
101-150
151-200
200≤
6.
Number of Hauseholds in the family?
1
2
3
4
5≤
How often do you purchase butter?
Less than once in a month
Once in a week
1-2 times in a month
More than 1 time in a week
Are you weekend shopper?
Yes
No
I am not sure
R EFERENCES
AUTY, S. (1995): “Using Conjoint Analysis in Industrial Marketing, The Role of Judgement”, Industrial Marketing
Management, Vol. 24, p. 191-206.
BAUGHN, C. C. AND YAPRAK, A., (1993): Product-Country Images: Impact and Role in International Marketing. New York,
Business Press.
BAKER, M., AND BALLINGTON, L. (2002): "Country of Origin as a Source of Competitive Advantage." Journal of Strategic
Marketing, Vol. 10, No. 2, p. 157-168.
CAI , Y., CUDE, B. AND SWAGLER, R. (2004): "Country-of-Origin Effects on Consumers' Willingness to Buy Foreign Products: An
Experiment in Consumer Decision Making." Consumer Interests Annual, Vol. 50, p. 98-105.
GUDERO, F. (2001): The effect of Country of Origin of a Product on Consumer’s Buying Behavior, Master degree, Oklahoma
State University, 2009.
GULIYEV , O. (2007): The Importance of Country of Origin Factor of Azerbaijan consumers’ Preference of Local and Foreign
Brands, Master Thesis, University of Sakarya, Turkey.
HAN, M. AND TERPSTRA, V. (1988): ‘Country-Of-Origin Effects for Uni-National and Bi-National’,Journal of International
Business Studies, Vol. 19, No. 2, p. 235.
HAYDAROVA. (2012): http://wap.big.az/bigcms.php?op=ArticleFull&sid=45318, last accessed: 05.02.2013
HOYER, W., AND M ACINNIS, D. (2000): Consumer Behavior, 2nd Ed., Houghton Mifflin Company.
123
KNIGHT , J., HOLDSWORTH , D. AND M ATHER, D. (2007): "Country-of-Origin and Choice of Food Imports: An In-depth Study of
European Distribution Channel Gatekeepers." Journal of International Business Studies, Vol. 38, No. 1, p. 107-125.
M ALHOTRA, K AND BIRKS, F. (2003): Marketing Reasearch, and appliad approach, 3rd edition, Pearson Education Limited.
NAGASHIMA, A. (1977): "A Comparative 'Made in' Product Image Survey Among Japanese Businessmen." Journal of
Marketing, Vol. 41, No. 3, p. 95-100.
NAGASHIMA, A. (1970): "A Comparison of Japanese and U.S. Attitudes Towards Foreign Products."Journal of Marketing ,
34(Jan): p. 68-74.
PHILIPPIDIS, G., AND HUBBARD, L. (2003): "Modelling Hierarchical Consumer Preferences: an Application to Global food
Markets." Applied Economics 35: p.1679-1687.
SPSS INC. (1997): “SPSS Conjoint™ 8.0”, Marketing Development, Printed in the USA, www.spss.com, last accessed:
05.02.2013
SULAIMAN, K Al-RAJHI (2008): The effects of brands and country of origin on consumers' buying intention in Saudi Arabia.
PhD thesis, University of Glasgow.
TONGBERG , R. C. (1972): "An Empirical Study of Relationships Between Dogmatism and Consumer Attitudes Toward Foreign
Products." PhD. Dissertation, Pennsylvania State University.
URBONAVIČIUS, S. AND GINEIKIENĖ, J. (2009): “Importance of the product country-of-origin factor on purchasing progress in
the context of globalization”, Vilnius University Faculty of Economics, Ekonomika, 2009.
WHITE, P. D. (1979): "Attitudes of U.S. Purchasing Managers Toward Industrial Products Manufactured in Selected
European Nations." Journal of International Business Studies Spr/Sum, p. 81-90.
124
Session 4
125
Determinants for Purchases of Agricultural
Pesticides: a study on the buying behavior of
rural producer of coffee in Brazil
Consumer. Organizational consumer behavior. Agriculture. Coffee Producer. Attributes of Buying.
Wendel Alex Castro Silva, Faculdade Novos Horizontes, wendel.silva@unihorizontes.br
Ricardo William Pinheiro, UNICERP, ricardo.pinheiro@mestrado. unihorizontes.br
Gustavo Rodrigues Cunha, Faculdade Novos Horizontes, gustavo.cunha@unihorizontes.br
Abstract
This research is driven by the existence of a theoretic gap which gathers studies on the behavior of an
organizational consumer. Having the Sheth, Mittal and Newman (2001) model, a research instrument was developed and
applied in a survey considering the agriculture consumer behavior of an organizational consumer. The univariate statistic
analysis was conducted to describe the subjects’ characteristics establishing relation among these characteristics.
Individual components which formed the instrument were divided into 5 parts, obeying the model proposed.
Subsequently to this division, a cluster analysis was applied to obtain the best variables possible, contained in each part –
according to its similarities. Once the results of cluster analysis came up, was possible to elaborate the hypothesis of the
research. Afterwards, the qui square test was performed to judge formulated hypothesis and to valid the formation of
clusters. To verify the level of similarity contained in the attributes analyzed on the research, especially the ones presented
in the hypothesis, simple and multiple correspondences analysis were done. Throughout this procedure, was possible to
consider the model of Sheth, Mittal and Newman (2001) as being suitable. Therefore, was viable to identify, based on
Alpert rating scale (1971), the determining attributes of purchase of coffee producers in the region of Patrocínio/MG. The
results of the research showed that the attributes linked to the salesperson are meaningful to a coffee producer and must
to taken into account by distributors of defensive products. Finally, the model can be helpful for investigate the consumer
behavior in agribusiness.
1. AGRIBUSINESS IS A MAJOR PILLAR OF THE ECONOMY
It recognized its importance to the Brazilian trade balance and the economy as a whole, because moves billions of dollars
per year in various supply chains, highlighting those in which there is worldwide recognition, such as beef, soy, corn, milk
and coffee.
One of the most prominent cities in the Brazilian agribusiness – Patrocínio - is Located 400 kilometers from Belo
Horizonte state of Minas Gerais (MG). Agribusiness generated for the city in 2006, something around 22% of its Gross
Domestic Product (GDP), which represents over 100% of GDP generated by local industry. Among the activities of
agribusiness in the city are dairy farming and cutting, production of corn, soybeans and coffee production, which is
featured on the national level. Coffee plantations in Patrocínio occupying 29,000 hectares produced 672,000 sacks in 2008
- it brought as the first city to the country - generating approximately R$ 119 million in production value (IBGE, 2008).
Due to the presence of many coffee growers, Patrocínio receives the largest companies in the field of
agrochemicals in the world with high value billing and product diversification. This provides ideal conditions for this
research that focuses on the consumer agricultural producer of coffee while buyer of agrochemicals used in its production.
The farmer, for the purpose of purchase inputs required for the production of coffee, should resemble the buyer of
an industry with regard to their purchasing behavior. Therefore, to assume the position of buyer for a rural business, your
126
property, should assume a professional role in analyzing the alternatives very carefully at all stages of the buying process,
making it one of the best examples of customer organization. See Martins (2001), Rossi, Neves and Carvalho (2003), Castro
naves (2007), Silva, Scare and Casanova (2008).
A crucial aspect to consider this assumption is emergence of doubt about what are the most important attributes
for these producers. The intuition behind has several implications, particularly, creating the need to understand how the
coffee farmer behaves in the process of buying pesticides. Moreover, it is also important to include this analysis in
scientific discussions, basing research on buying behavior and contributing to strengthening business. Thus, the problem
focus of this research is delineated from the following question: What are the attributes of factors in the decision to
purchase pesticides by farmers in the coffee region of Patrocínio - MG?
In this paper aims to identify and describe the attributes that are decisive for the purchase of pesticides by
farmers of the region's coffee of Patricínio - MG, and also verify that the buying behavior of rural producer of coffee in this
region can be explained from the perspective of theoretical Sheth, Mittal and Newman (2001), exposed in its model of
buying behavior of the customer organization.
2. Consumer Behavior
Consumer behavior is defined by Engel, Blackwell and Miniard (1995) as those activities directly involved in
obtaining, consuming and disposing of products and services, including the decision process that precedes and follows
these actions. Seeks to show how people make decisions, what the factors that guide their behavior are and what the
attributes that influence them are.
Studies of consumer behavior analysis focus not only on the purchase, but everything that can somehow interfere
with it. The analysis is done prior to purchase, to show the consumer that led to this act and after this acquisition, to sho w
how it behaves before using the product. See Holbrok (1987) and Engel and Miniard Blackwell (1995).
From a physical or mental activity, the customer gives signals whether will behave as before the supply. Physical
activities are performed, for example, when a customer goes to a store, talking to vendors and issue purchase orders.
Example of mental activity is the association of quality to a particular brand, due to its previous experience with it (Sheth,
Mittal and Newnan, 2001).
2.1 Organizational Purchases
Often, one has used the term consumer to set only those who are part of the consumer market, excluding the
organizational market, for which is the term more applied client. In general, the client is a person or organizational unit
that plays a role in the consummation of a transaction with the marketer or an entity (Sheth, Mittal and Newman, 2001).
The consumer is the one who acquires a product or service that will be consumed or used in some other way. The
market organization is formed by all organizations that produce goods and services used in the production of other goods
or services that are sold, leased or given to third parties. The company dedicated to agriculture is a classic example of a
component of this type of market (Sheth, Mittal and Newman, 2001).
The purchasing organization is defined by Webster and Wind (1972) as the decision-making process through
which organizations establish the need for purchased products and services and identify, evaluate and choose between
brands and suppliers available what is the best option. The organizational purchase has character more professional than
the purchase made by the consumer. There is a higher number of procedures and expertise of those involved in the
process. Indeed, it happens according to a standardization of procedures, providi ng the strategic and operational
requirements of the organization.
The organizational buyer makes decisions in relation to the complex problem to be solved by analyzing whether
the purchase is made for the first time, considering the number of people involved and the deadline to be met (Candido,
2004).
127
2.2 Attributes and purchase their classification
When a consumer wants to describe a product, he does it reporting its characteristics, particularities, utilities and
accessories that are purchased together. In short, discriminates product attributes. When he is processing information
with respect to the purchase, the product attributes are the main stimuli that influence this process. For this reason, will
always advantageous to work these attributes in order to make customers perceive a real need of purchase (Joas, 2002,
Tibola, Sanzovo and Vieira, 2004). A peculiar issue stands out clearly, that is, by analyzing the background consumer
perceptions regarding the attributes of a product is possible to understand how the customer feels about him (Assael,
1992).
In the specific case of agricultural consumers, the package size is, for example, an attribute that can reflect the
benefit of avoiding residue or facilitate handling. These benefits can only be reali zed after using the package (Rossi, Neves
and Carvalho, 2003). A set of attributes highly valued by consumers farming is the full solution, that is, the possibility of
acquiring a set of inputs in a single resale, which may increase their bargaining power, incurring assistance in the
application and subsequently facilitate marketing (Neves et al., 2001).
There are several classifications of attributes, with many different classifications, but with the same coverage. The
classification of Alpert (1971), to be widely used in various studies on consumer behavior, was chosen for this study.
Alpert (1971) argues that consumers do not realize all the attributes in the same way, and they attach greater importance
to some as their beliefs and values.
There are several classifications of attributes, with many different classifications, but with the same coverage. The
classification of Alpert (1971), to be widely used in various studies on consumer behavior, is also relevant for this study.
Alpert (1971) argues that consumers do not realize all the attributes in the same way, and they attach greater importance
to some as their beliefs and values.
He assumed key concepts to compare the predictive validity of this assumption and dealing with issues of
determinant attributes in purchasing. According to him, ‘salient attributes’ are easily perceived by the consumer, not
influence the process of purchase and will only be used as a tiebreaker. That is, if all other attributes equate themselves.
‘Important attributes’ are not taken into consideration by some consumers, because they believe are present in all offers.
Other groups consider important when choosing the product, but exert little or no influence in determining the purchase.
‘Attributes determinants’ are the most important to the goal of marketers. In the consumers' eyes, make a difference and
are crucial in making purchasing decision. In the eyes of customers, means satisfaction.
128
2.3 Model of organizational buying behavior Sheth, Mittal and Newman
Figure 1 - Model of customer behavior encompassing organizational
Source: Sheth, Mittal and Newman (2001)
Sheth, Mittal and Newman (2001) proposed a model, shown in Figure 1, assembling the individual components of
industrial acquisition system, which helps to understand the relationships within that system and its impact on buying
behavior of the customer organization. According Candido (2004), the model proposed by Sheth, Mittal and Newman
(2001) is considered comprehensive concepts by showing multiple other theoretical models. Silveira (2000) states that
the original version of Sheth, Mittal and Newman, published in 1999, this is a more complete and systematic than its
predecessors, depicting an evolution of the academic understanding of the subject. Perhaps the only shortcoming of the
model of Sheth, Mittal and Newman (2001) is the fact stop staring macro environmental relations, including economic,
political, legal, cultural, technological and market (Silveira, 2000 and Candido, 2004).
Precisely because it is more recent and complete their proposals on organizational buying behavior, we decided to
test the hypotheses in this research model Sheth, Mittal and Newman (2001) for the coffee farmers of the region of
Patrocínio below.
3. Research Hypotheses and Methodological Aspects
The main hypothesis of this research can be presented as follows:
Ho: The theoretical perspective of Sheth, Mittal and Newman is appropriate to analyze and describe the attributes
determinants for the purchase of pesticides by farmers Coffee of Patrocínio region.
To be able to achieve the goals of the research, the analyzes were performed according to blocks A, B, C, D and E
shown in Table 1, which tried to find greatest similarity relationship between the components of the questionnaire and a
set of variables descriptive that were associated through multiple correspondence analysis.
129
Assumption A.1 Type of buyer refers to anyone who makes purchases for application of pesticides in the
cultivation of coffee - in other words - owner, employee, family members and another. Amount of properties refers to the
number of farms each producer, being 1, 2, 3, 4 and 5 or more.
Assumption A.2 Centralized purchasing refers to the degree of centralization of purchases of chemicals for the
properties of a single grower, either; the purchase can be performed separately for each property or for all properties in
together.
Assumption A.3 By means of the adoption of rules and procedure, you can identify if the buyer of pesticides
follows rules or procedures when making purchases.
Assumption B.1 Speed in attendance refers to the speed of service perceived by the producer in relation to the
resale of pesticides. Service in general refers to care provided by the retail coffee producer in all its aspects, namely in
product sales, negotiating financial and technical assistance.
Assumption B.2 Service-level property relates to service done on the farm producer of coffee, which is a type of
care usually provided by the resale of pesticides to their customers. The tracking and monitoring of applications and
results of products is a service provided by the reseller when sending a technician to monitor the implementation of
products in the fields and to measure the results after such application.
Assumption B.3 In the event the price charged in general refers to the vision of the producer of coffee in relation to
prices for resale, i.e., whether it is a resale that adopts a policy of low prices or high prices. Price (SRP) refers to the
product value. Discount for cash payment refers to the special conditions given to producers effecting their payments upon
purchase.
Assumption B.4 Payment deadline concerns the payment deadline for the reseller offers the producer called
normal negotiations, negotiations with deadlines that are small, usually 30 days, to purchase in small quantities. Payment
deadline extended refers to the payment terms for purchases of larger volumes, when retailers offer extended deadlines
for payments after harvest, called the "harvest plans." A variety of forms of payment refers to diversity in the way the
producer can pay for their purchases, so credit card payments, check and bank in duplicate, among others.
Assumptions C.1 and C.2 refer to sources of information and arising direct relationship with the sellers at the time
of purchase. D.1 In the event the active product used is the substance of pesticide that will exert the expected effect
according to your specifications. The concern with environmental aspects of resale refers to the level of attention of
producer in relation to the shares of resale to combat the misuse of pesticides to avoid contamination of people and the
environment.
Assumptions E.1 experience with previous use concerns that the producer had experience in the past when it used
the pesticide in its plantations. Technical assistance linked to the sale of product refers to conditions of technical support
offered to purchase some pesticides. Assumption E.2 to coffee producer satisfaction with the resale is the level of
satisfaction with the service producer of resale in general, not only in selling products. Service quality refers to the ability
to distinguish a resale service provided by another. Product quality relates only to the product approval and product
acceptance.
3.1 Characterization and Research Instruments
This research aims to expose the buying behavior of rural producer of coffee and provide greater familiarity with
this behavior in order to make it explicit. It is also a study aimed hypothetical-deductive, because by supporting the
theoretical analysis and the results of quantitative evaluations, test the research hypotheses presented earlier (Martins
and Teófilo, 2009).
The instrument used for this research was built on the model of Sheth, Mittal and Newman (2001) and divided
into 3 parts with the first consisting of 14 questions designed to characterize the unit of analysis. We sought to identify the
size of the organization, the orientation of purchase, the existence of rules and procedures and the level of centralization in
the buying process.
The second part consists of three issues in which the respondents are prompted to assign importance level
attributes through ordinal scales staggered type and interval of ten points, with the higher the value the greater the
130
numerical value. To facilitate the visualization of these levels, these subcategories were grouped into categories, such as:
no importance (level zero); little importance (levels 1, 2 and 3); average importance (levels 4, 5, 6 and 7) and very
importance (levels 8, 9 and 10). The attributes of the second half were related based on the application of the concepts of
technical and educational background, satisfaction / dissatisfaction with previous experience of purchasing, buying and
nature of information sources, also exposed in the model of Sheth, Mittal and Newman (2001). The third part consists of
the same attributes of the second part, but that the subject is asked to select those attributes that are necessary for the
purchase of pesticides used in coffee production.
The population consists of farmers who purchase their products at the dealerships of Patrocínio, whose properties
are also located in the same municipality or in smaller municipalities that are part this grower pole. The probability
sampling methods allows the sample to establish the basis of a predetermined measure of accuracy (Mattar, 2001). Thus,
according to IBGE (2006), there are 1,421 agricultural establishments which have coffee plantation in the municipalities
that are part of the productive pole Coffee of Patrocínio (Patrocínio, Serra do Salitre, Guimarânia and Coromandel).
Proceeding to the calculations came up with a sampling of 107 instruments that were applied between 01 August and 30
September 2009, which, with a margin of error of 5% resulting in 85.4% confidence.
Table 1 shows the separation of the individual components that comprised the research instrument in five blocks.
Bloc A – Organizational Characteristics
Variable
Number of properties
Type of Purchase
Bloc C – Sources of Information
Code
Variable
Nº PROPERTIES
TYPE OF PURCHASE
Size
SIZE
QUANTITY
PRODUCTION
Quantity Production
Purchaser
PURCHASER
Rules
RULES
Strategy
STRATEGY
Bloc B – Nature of Purchase
Variable
Code
OPN
View of other producers
Time of performance in the market
What are the multinationals that
represents
Availability
producer
Mark
of
information
TAM
MULT
OOP
to the
DIP
MAR
Honesty
HON
Practical knowledge of techniques
CPT
Code
Product Knowledge
COPR
Packing
EMB
Education
EDUC
Variety of Products
VARP
Competency
COMP
Price charged (generally)
PREP
Simplicity
SIDE
Deadline for Payment
PRAP
Seriousness
SERI
Attendance at the level of property
ANP
Experience
EXP
Location
LOC
Treatment (generally)
ATE
Variety of products that offers
VPO
Concern with environmental aspects
Price
Bloc D – Technical Background and Educational
Variable
Code
PAA
PRE
Type of application
TAPL
Fast in attendance
RAPA
Recommendations
RECO
Delivery takes place in the farm
ENTR
Active Principle
Speed in invoice issuance and recipe
RENF
Deadline for payment extended
PPE
Discount for cash payment
Variety of methods of payment
DPAV
VMP
PA
Bloc E – Satisfaction/dissatisfaction with previous
experience of buying
Variable
Code
Quality
QUAL
Ease in the release of credit
FLC
Easy to find it on the market
FEM
Quickly in the release of credit
RLC
Experience with previous use
Technical assistance related to the sale
of the product
Fact is satisfied with the resale
Service Quality
EUA
Promotion
PROM
Ease in the release of the product
FLP
Hours of operation
HOFU
Table 1 - Description of Blocks
Origination: Prepared by the author on the basis of the research
ATVP
SATR
QA
131
In data analysis, the univariate and bivariate descriptive statistics describes the characteristics of Coffee farms and
its owners, focusing in establishing relationships between them and determinants of purchase. The model of Sheth, Mittal
and Newman (2001) is consisting of individual components which were separated into five sections, Table 1:
organizational characteristics, nature of purchase, sources information, technical and educational background, and
satisfaction / dissatisfaction with experiences previous purchase. Thus, after selecting only relevant variables (presented
in blocks) used the analysis of clusters. After forming clusters, it was held the Chi -square test between pairs of variables
contained in the groups or classes resulting from step before. The goal was to validate the formation of these obtained
clusters and, thus, confirm the existence of a possible association of the main variables of interest contained in each
grouping formed.
The aim was to get a better grouping of possible variables contained in each block, according to their major
similarities. The chi-square test was used in order to judge the assumptions made for, then check whether it was
recommended to use correspondence analysis.
In this sense, the similarity levels contained in attributes relating to organizational characteristics and the degree
of importance that each respondent gave to each attribute is related to pesticide used in the cultivation of coffee, resale
and the seller. Particularly, aims showing the similarity degree in the variables displayed in the hypotheses.
4. Results and Discussion
4.1 Formulation, validation and testing of hypotheses of the research
The results presented were obtained from cluster analysis of the variables of the blocks A, B, C, D and E (see Table
1).
For block A, composed of the variables related to organizational characteristics, the final partition results in four
clusters. “Size” refers to the number of acres of property, joined or associated “quantity”, which is related to the amount of
coffee trees planted on the property, forms a small cluster.
The variables "buyer" which relates to the person who does the buying defensives, "rules" if the buyer informs
that follows rules and procedures for purchase, "property number" number of farms each respondent and "kind of
purchase" if the purchase is made for each property separately or for all, unite in another cluster. “Number of bags of
coffee” produced on the farm, alone constitutes a cluster, so does the “strategy”, which shows whether the respondent
believes that the purchase of pesticides is a strategic function.
The clusters formed from the association between the variables related to the nature of the purchase, that
compose the block B, showed that “packaging”, “location” (resale), and “promotion variety of products” (offered by resale)
in separate clusters and other block B variables are together in another cluster.
Regarding the clusters formed with the variables in block C, connected to sources of information, the variables
related to the seller: “honesty”, “information”, “friendliness”, “product knowledge”, “education”, “competence”, “simplicity”,
“reliability”, “experience”, for resale: availability of information the producer, and the product: the company's “reputation”
and “manufacturer” formed a cluster.
“Operating time on the market” and “multinational representative”, both related to the resale, are associated with
other body as brand (product) and the opinion of other producers (in relation to resale). The variable opinion of other
producers (for the product) is isolated in another grouping.
The groupings for the variables that make up the D block, linked to technical and educational background, showed
that concern about environmental issues (for resale) and active ingredient (product) are l inked and form a cluster. The
variables type of application and recommendations, both related to the product, are isolated each in its cluster.
Regarding the E block, consisting of variables related to satisfaction with previous purchase experiences, the
results were: “facility of finding it in the market” (product) is in a separate cluster. “Experience with prior use” (product)
and “technical assistance” linked to the sale of the product are in another cluster. Quality (for the product), the fact of
being satisfied with resale and “quality service” (provided by resale) are contained in a third cluster.
Based on the results of cluster analysis are formulated hypotheses of the research listed in section 3. After the
formation of clusters of hypotheses and construction preceded the Chi-square test, from which it was concluded that the
132
10% significance level, there is an association between the variables described in the hypotheses, because the p-values
were lower above this level. After confirming the existence of association between variables, we used the simple
correspondence analysis and multiple correspondence analyses, to verify the type of pattern similarity contained in the
variables listed in the events. Based on analyzes of correspondence, one can summarize the results of the verifications
hypothesis presented in Table 2.
Table 2 - Result of the Chi-square test for the variables described in the hypotheses
Test
variables
Qui-quadrado
Type of buyer in relation to
Nº. property
79.3714
Buyer
79.3714
The quantity of properties in relation to the
Type
of 72.1842
purchase
Type
of 72.1842
The number of properties in relation to the
purchase
Rule
8.796
QA
171.9313
The rapidity in the service in relation to
PRE
81.8912
The service in terms of property in relation to
MAAP
276.5529
PRE
123.7598
The price (in general) in relation to
DPAV
118.3092
PPE
292.1094
The deadline for payment for the
VMP
119.0174
SIDE
69.3341
The education of the seller for the
SERI
69.33
SIMP
90.8906
The experience of the seller for the
COPR
25.6035
The active principle of the product used in relation to
PAA
274.9257
Experience with previous use in relation to
ATVP
65.5383
The importance given to the satisfaction of the QA
53.1721
producer of coffee with the resale in relation to
QUAL
230.5585
Degree
of liberty
12
12
4
0,01349
0,01349
0,0004998
4
0,0004998
4
16
20
49
20
16
30
54
4
4
24
8
30
25
18
24
0,09245
0,0004998
0,001999
0,0004998
0,00049
0,001999
0,0004098
0,09445
0,01199
0,002499
0,01249
0,05047
0,0004998
0,05897
0,01749
0,0004998
P-Value
Source: Prepared by the authors using simulation by means of the method of Monte Carlo suggested by Maroco (2007)
Based on these results we observe that the assumptions are acceptable from 1.1 to 5.2, due to the existence of an
association between the variables that compose them. It also accepts the hypothesis, since the proof of existence of an
association between the variables analyzed, constructed based on the theoretical perspective of Sheth, Mittal and Newman
(2001), makes the appropriate model to analyze and describe the attributes determinants for the purchase of pesticides
agricultural by coffee farmers in the region of Patrocínio.
4.2 Levels of importance given to the attributes of buying pesticides used in the cultivation of coffee
Following will be the presentation of the results collected through the survey regarding the level of importance
given by farmers to purchase attributes of agrochemicals used in its activity. According to the sum of concordant opinions,
attributes were classified as follows: unimportant (level 0), minor (levels 1, 2 and 3), medium importance (levels 4, 5, 6
and 7) and very important (levels 8, 9 and 10). Among the attributes that were classified as very important are considered
extremely important those who obtained more than 80% agreement among respondents.
4.2.1 Levels of importance given to product attributes
Farmers consider the attributes of price, quality, recommendation, reputation of the manufacturer, active
ingredient, using previous experience and technical assistance linked to the sale, all related to the product, as extremely
important. Quality showed the highest proportion of concordant: 98.13%, among the attributes of great importance.
Opinion by other producers showed the lowest proportion of concordant: 55.14%.
133
4.2.2 Levels of importance given to the attributes of resale
Among the attributes of the resale of pesticides, farmers indicated care (in general), variety of products it offers,
the fact that he was satisfied with the resale price charged (in general), payment term, concern about environmental issues
, call the property level, tracking and monitoring of applications and performance of the products, quality service, fast
service, held on the farm delivery, quick issuance of invoice, availability of information to the producer, extended payment
term, discounted payment in cash, credit facility in the release, quick release credit facility in the product release schedule
and functioning as being extremely important.
Among the attributes extremely important, discount for cash payments is what got greater agreement among
respondents: 98.14%. Only the attributes of time in the market, which are multinationals represent, location, view from
other producers and variety of payment arrangements were not considered of utmost importance.
4.2.3 Levels of importance attributes of the data vendor
Farmers agree that the attributes honesty, information, knowledge of techniques, product knowledge, education,
expertise and reliability are extremely important when analyzing the seller of agricultural pesticides. All were considered
extremely important. Moreover, proportionally, the attribute less agreement among respondents was the friendliness of
the salesperson.
4.3 Attributes that make impracticable the purchase
After surveying the levels of importance accorded to product attributes, and the resale of the seller up to the
grower asked what are the attributes that once nonexistent make impracticable the purchase. Attributes that were
considered as unfeasible to buying are those that obtained a degree of correlation exceeding 80%.
Respondents agreed on over 80%, which attributes the price, quality and active principle, related to the product,
are of high importance; to the point of nonexistence make impracticable the purchase. Regarding the attributes of the
resale were identified price charged (in general), and deadline for payment discount for cash payments.
The attributes linked to the salesperson were stood out, with 8 of the 10 being obtained above 80% agreement.
According to respondents the lack of honesty, information, knowledge of techniques, product knowledge, education,
competence, simplicity and seriousness on the part of the seller would make impracticable the purchase of pesticides for
the cultivation of coffee.
4.4 salient attributes, and important determinants for farmer Coffee
In Table 3, we present a comparison between the attributes with higher assignment of importance and those
which, once nonexistent, makes impracticable the purchase.
Table 3 - Attributes that, once a non-existent, precluded the purchase of agricultural pesticides used in the culture
of coffee.
Attribute
Proportion
Product
Concurring
Discordant
Price
0,972
0,028
Mark
0,4206
0,5794
Quality
0,9533
0,0467
Packing
0,2897
0,7103
Variety of Products
0,3084
0,6916
0,2243
0,7757
Type of application
0,1682
0,8318
Recommendation
0,2897
0,7103
0,1121
0,8879
Repute of the company manufacturer
0,6636
0,3364
Active Principle
0,8785
0,1215
0,4019
0,5981
134
Technical assistance related to the sale of the product.
0,6729
0,3271
Resale
What are the multinationals that represents
Location
Care (generally)
Deadline for payment
Monitoring and monitoring of applications and results of the product
Service Quality
Fast in attendance
Availability of information to the producer
Variety of methods of payment
Promotion
Hours of operation
0,4486
0,2523
0,1121
0,6542
0,1495
0,2617
0,6822
0,9439
0,9159
0,486
0,3738
0,2804
0,5607
0,3925
0,2991
0,1589
0,3738
0,757
0,8318
0,1308
0,4766
0,2523
0,1215
0,1028
0,5888
0,5514
0,7477
0,8879
0,3458
0,8505
0,7383
0,3178
0,0561
0,0841
0,514
0,6262
0,7196
0,4393
0,6075
0,7009
0,8411
0,6262
0,243
0,1682
0,8692
0,5234
0,7477
0,8785
0,8972
0,4112
0,9813
0,9065
0,5047
0,9252
0,9533
0,972
0,8879
0,8692
0,9626
0,6916
0,0187
0,0935
0,4953
0,0748
0,0467
0,028
0,1121
0,1308
0,0374
0,3084
Seller
Honesty
Information
Empathy
Practical knowledge of technical
Product Knowledge
Education
Competence
Simplicity
Seriousness
Information
Source: Prepared by the authors on the basis of the research
From the results presented in Table 3, it is possible to identify what are important attributes and attributes
determining, according to the classification of Alpert (1971), exposed on basis of this research. The attributes highlighted
in Table 3 are considered extremely important, that is, those whose proportions of importance levels were greater than
80%. Also, were considered an essential point that his absences make impracticable the purchase.
As for the other attributes listed in Table 3, were considered important attributes those to which coffee farmers
attributed utmost importance. But when asked whether the absence of this attribute would make the purchase, less than
80% thought so. Through approach of Alpert (1971), besides the important attributes and determinants, there are also the
attributes that are salient attributes easily perceived by the consumer and does not influence the purchasing process.
Framed up here who were not identified as extremely important, nor that their absence would make impracticable the
purchase.
135
4.5 Analysis of the classification of salient, important and determinants attributes
Table 4, allows us to observe that among the 14 attributes considered determinants, 8 attributes are linked to the
seller of agricultural pesticides; 3 connected to the product and other 3 connected to the resale.
From a total of 10 attributes related to the seller of pesticides, 8 were considered determinants, demonstrating
that the coffee farmer values the information received by the seller (i.e., the technical knowledge about the product).
Those 25 attributes related to the resale of pesticides only 3 were considered crucial by coffee farmers, being
delivery price, deadline for payment and discount for cash payment. All three linked to economic factors.
Of the 13 attributes related to the product, only 3 were considered crucial, and 2 refer to technical factors, and
quality active and 1 to economic factors, the price of the product. Considering the attributes determinants related to resale
and the product together, it is observed that most, 4 to 6 is on the offered price and payment terms, which reflects a major
concern to the rural producer of coffee with economic factors as for purchasing pesticides.
Among the 48 attributes analyzed in the study, 22 were classified as "important", 4 linked to the product, 16
linked to 2 other resale and the seller. Attributes related to product, 1 refers to technical factors, recommendations, 2 the
factors of supply, adequacy of the manufacturer and technical assistance linked to the sale of the product, and 1 refers to
factors of satisfaction and dissatisfaction with previous experience of buying, experience with previous use. Notice that
none of the four are linked to economic factors. With regard to the attributes Associated with resale, of a total of 25, 16
were classified the Significant, noting That the Majority Refers to factors of care and only 2 refer to economic factors,
Which are extended the deadline for payment and credit facility in the release. Only two attributes linked to the seller
were rated the important: experience and sympathy.
Classification
Attributes Determinants
Important Attributes
Attribute
Product
Price
Quality
Active Principle
Resale
Deadline for payment
Seller
Practical knowledge of technical
Product Knowledge
Education
Competence
Simplicity
Seriousness
Honesty
Information
Product
Recommendations
Repute of the company manufacturer
Technical assistance related to the sale of the product
Resale
Care (generally)
Monitoring and monitoring of applications and results of the
product
Service Quality
Fast in attendance
136
Availability of information to the producer
Hours of operation
Seller
Empathy
Experience
Production
Mark
Package
Type of application
Resale
Salient Attributes
Variety of Products
What are the multinationals that represents
Location
Variety of methods of payment (can i pay with a check card,
duplicate in bank, etc.)
Promotion
Table 4 – Classification of attributes analyzed in the study in salient, important and crucial
Source: Prepared by the authors on the basis of the research
Among the attributes classed as "salient", none is connected to the seller, which proves that the vendor factor is
highly valued by farmers of coffee. Of the total of 12 attributes this classification, 5 are connected to the product and 7 are
connected to resale. Linked to product attributes, 4 are linked to market factors: branding, packaging, ease of finding it in
the market and opinion from other producers. The rest is on the technical factors of the product, type of application.
Among the seven attributes related to resale, only 1 Refers to economic factors, variety of payment arrangements (e.g., can
I pay by check, card, bank bills).
For studies of buying behavior of the consumer farm, although I agree that the consumer should professionalize,
some studies have shown different results (Martins, 2001 and Silva, Scare and Casanova, 2008). The first states that the
consumer has already farming resembles industrial consumer when it comes to buying process, while the latter argue that
the professionalization of rural enterprises still do not occur in a structured and effective. Rossi, Neves and Carvalho
(2003) had already wounded to a conclusion similar to Silva, Scare and Casanova (2008), stating that the small and
medium producers have a purchasing behavior characteristics much closer to buying individual than organizational. They
admit that this can be explained by the familiar character and centralize the management of these properties. In our study
we showed that for agricultural users during the evaluation of alternatives, commercial aspects tend to exert more
influence than technical, because it does not seem to be consolidated in the minds of the producer. The producers seem to
have difficulty answering about which attributes are most important in choosing the product to be purchased, no choice of
parameters. Some emphasize aspects of the company manufacturing the product, other aspects of the product and its
features, and other prices. But, most of the evidence was the value assigned to the professional rather than technical
specifications resale.
5. Conclusion
Based on data collected with the survey and shown in Table 5, it was possible to answer the research problem,
defining which attributes are determinants of purchase for the coffee farmers of the region of Patrocínio. This delineation
137
was based on the definition of determinant attribute exposed by Alpert (1971) that classifies this type of attribute as
extremely important enough to that their absence makes impractical a purchase. From the theoretical perspective of
Sheth, Mittal and Newman (2001) exposed in its comprehensive model of buying behavior of the customer organization
was possible to get search results, better understanding the buying behavior of rural producer of coffee.
The analysis based on this approach was adequate and can generate, through a qualitative and exploratory
research, the development of a specific model that has focused on the buying behavior of consumers agricultural. Such a
model would be of great relevance for Brazilian agribusiness and fill a theoretical gap, currently busy with adaptations of
imported models that focus on the consumer industry. Regarding the model used, this research is limited because it is not
developed an etymological analysis of the concepts presented, restricting the analysis of the results of the theoretical
perspective Sheth, Mittal and Newman (2001). The most anticipated academic implication is that this study serves as a
means to instigate and motivate other researchers to develop studies on rural producers in general. It is hoped that this
study can serve as a model for research involving farmers in their various activities. With the instrument used in this
research, scholars can study this reproof for other agricultural consumers, since it is a general questionnaire and consists
of attributes common to most farmers, regardless of their activity. Although some authors suggest that the purchasing
decisions of consumers being confused agricultural and behavior resemble the behavior of the consumer rather than the
consumer behavior intermediary (ROSSI; NEVES and CARVALHO, 2003), in this study the determinant variables could be
adjusted in an interesting theoretical construct. Consumer agricultural is still far from the professionalism achieved by the
consumer industrial. However, the determinants represent a way of organizing themselves adaptable to social and
environmental condition of these farmers.
A recurring challenge for the development of this research was the lack of publications that have focused on
agriculture consumer behavior. Were rare research found that the main objective is to study this type of client. For this
reason, it is expected that this research should encourage research to understand the peculiarities of this important
consumer not only for Brazil but for all countries that have a significant agricultural base constituting its economy. Finally,
the analysis developed in this study indicate that there is a vast field to be investigated to better understanding about
consumer behavior agriculture, especially in business to business relations or organizational buying model.
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139
Mobile phone surveys to measure consumer
behavior: effects on data quality
Consumer behavior, mobile phones, surveys, data quality
Paula Vicente, ISCTE-IUL, BRU-IUL, paula.vicente@iscte.pt
Inês Lopes, BRU-IUL, inesislopes@gmail.com
Abstract
The rapid growth of mobile phone ownership has opened up new opportunities for collecting data about
consumers. Mobile phones are increasingly used to conduct surveys and this trend is likely to continue. However, the use
of mobile phones to conduct surveys may pose some problems to data quality due to the specific characteristics of mobile
phone communications.
This paper evaluates the effect of mobile phones on data quality. Specifically, it is investigated whether the
respondent’s location at the time of the interview - at home vs. elsewhere - affects the accuracy of response, completeness
and interview length.
Evidence was found that when the respondent is not at home during the interview data quality may be negatively
affected. The study also highlights the importance of considering several indicators of response quality when assessing
data quality.
1. Introduction
Marketing researchers strive to find the best way to reach consumers in order to collect information that allows
their choices and attitudes to be analyzed (Adamowicz et al. 2008). Over time, data collection methods have changed but
telephone surveys have become the dominant mode in the marketing survey field since the mid 1980s, especially in North
America and Western European countries where high rates of telephone coverage have been achieved. The preference for
telephone over face-to-face surveys is justified for several reasons: low cost, speed, simplicity of control, homogeneity in
completing the questionnaire and elimination of difficulties in contacting people or households being surveyed (Zickmund
& Babin 2007). The use of fixed phone as a tool to conduct surveys implies that the households equipped with fixed
telephones are representative of the whole population; in other words, on one hand it assumes that the fixed telephone
equipment rate is high, and on the other that households not equipped with a fixed telephone do not demonstrate atypical
behavior for the variables under study.
Changes in the configuration of telephone coverage reveal that telephone surveys are becoming less viable.
Statistics on telephone access show that the coverage provided by fixed phone in some European countries has already
fallen below 60% and is tending to decrease (European Commission 2008). In a scenario of decreased validity of fixed
phone surveys mobile phones appear as a “natural” alternative to fixed phones. Communication is essentially the same 
both modes rely on oral conversation , CATI systems developed for fixed phone surveys are applicable to mobile phones
and the speed of fieldwork completion, which is given as the major advantage of telephone surveys, is likely to be
maintained with mobile phones (Kuusela et al. 2008). Although the cost of calling mobile phones is even higher than
calling fixed phones, it is going down. Additionally, the mobile phone is a personal device carried at all times, thus making
the person accessible at any moment of the day. As a result, consumers who were previously difficult to reach may now be
more accessible (Kuusela & Simpanen 2002, Döring 2009). Given that mobile phone surveys are likely to become
increasingly prevalent as a marketing research tool, it is relevant to investigate the methodological issues associated with
this survey mode.
140
The use of mobile phones to conduct surveys may pose some problems for data quality which result for example
from audio quality, the location of the respondent at the time of the interview or other activities in which the mobile phone
respondents may be engaged during the interview (AAPOR 2010). Whereas a person who answers the telephone at a fixed
number is almost certainly at home, possibly available and even willing to give the time required to answer the survey
questions, someone contacted by mobile phone may be in the street, in a public place or in an environment with many
distractions. The noise and the surrounding people can be the cause of confusion and a lack of privacy that interferes w ith
concentration and may consciously or unconsciously inhibit responses (Steeh 2004). Furthermore, as people engage in
more multitasking when speaking on mobile phones, respondents give the question-answering task less attention and this
may encourage satisficing in mobile surveys (Lavrakas et al. 2007). Additionally, if respondents are in a public place
surrounded by others, they may also feel pressured to give socially desirable answers (Brick et al. 2007, Lynn & Kaminska
2011). Concern for data quality may also be heightened by the bad quality of the connection due to poor network coverage
in certain areas or by sudden interruptions to conversations due to battery failure. These specific characteristics of mobile
phone communications are sufficient to hypothesize that data quality may be affected in mobile phone surveys.
Prior research on data quality in mobile phone surveys has focused on making a comparison with fixed phone
surveys in order to reveal mode differences. A number of studies have found few differences between data collected via
mobile phones and fixed phones. Roy and Vanheuverzwyn (2002) found consistency in results between mobile and fixed
phone surveys in a survey comparing radio listening estimates. The level of detail and richness of information in openended responses was studied by Dipko et al. (2005) and no significant differences were found between mobile and fixed
phone responses. Brick et al. (2007) investigated duration of the interviews, response to sensitive questions, the
percentage of items with missing data and response to open-ended questions and found significant differences only for the
first two issues. The comparison of survey estimates from the mobile and fixed phone survey in the research by Link et al.
(2007) revealed significant differences in only two of the ten variables examined.
Although the existing research suggests that the mobile phone can be treated in the same way as the fixed phone
when designing and implementing surveys, there has not yet been enough research into the mobile phone as an
interviewing device (Callegaro & Poggio 2004; Brick et al. 2007; Lavrakas et al. 2007) to permit conclusive knowledge
about it effects on data quality.
Surveys are of great importance in marketing and consumer behavior research but in most cases the investigation
is more focused on response rates and its determinants and less on the accuracy and usefulness of the data (e.g. Furse et al.
1982, Fox et al. 1988, Deutskens et al. 2004). The particular characteristics of mobile phone surveys and mobile phone
respondents can lead to specific results and influence data quality. This study evaluates how the use of mobile phones to
conduct surveys affects data quality. Specifically, it is investigated whether the respondent’s location at the time of the
interview - at home vs. elsewhere - affects the responses to a set of behavior and attitudinal items. If differences are found,
decision-makers should give careful thought to the use of data from mobile phone interviews, especially when the location
of the respondent at the time of the interview is not controlled.
2. Methodology
A mobile phone survey was conducted in 2012 to collect information on the use and attitudes towards mobile
phones of Portuguese mobile phone users (aged  15 years). Sample selection was not list-assisted as there is no database
of listed mobile phone numbers. Instead, the numbers to contact were randomly generated. Among the 11,470 numbers
dialed, 1,808 were found to non eligible (because they were not working, were disconnected or not attributed or were
owned/used by someone aged below 15 years).
Marktest was identified as the survey sponsor and this had a positive effect on cooperation since Marktest is one
of the most well known survey companies operating in Portugal. The interviews were conducted from the company’s CATI
centre. A total of n=1,501 completed interviews was obtained, 1,083 of which were conducted with mobile phone users
that were at home at the time of interview.
The questionnaire included: (1) a section on mobile phone ownership with questions about the number of mobile
phones owned/used, type of contract, monthly expense, (2) a section on mobile phone use with questions about number of
calls and SMS sent and received, and a battery of 13 items using an ordinal scale of 4 categories (never to always)
regarding the frequency of turning the mobile phone off or setting on silent mode, (3) a section on attitudes towards
mobile phones which included a battery of 20 attitudinal items using an ordinal scale of 4 categories (totally disagree to
141
totally agree), and (4) a section of demographics. The questionnaire also contained the question: “Are you at home or
somewhere else at this moment?” A response of “somewhere else” was followed up with the question “Where are you?”
The answers obtained included at work, in someone else’s home, in the car, in the street, in the shopping center, at a
restaurant...
Data quality was analyzed considering two types of indicator of response quality: (1) indicators of satisficing,
which reveal the respondent’s failure either to devote sufficient attention to the interview or to make sufficient effort to
fully complete the questionnaire and (2) indicators of socially desirable answers, which reveal the respondent’s
unwillingness to give true answers (Lynn & Kaminska 2011). The indicators of satisficing examined were: (a) item
omissions, (b) agreeing, i.e., the tendency to answer “agree” in ordinal measured items, (c) rounding answers, i.e., the
tendency to give round answers instead of accurate answers and (d) interview length.
Item omission has frequently been used as an indicator of poor data quality as it is measured by the “don’t know”
or “no opinion” responses (De Leeuw & van der Zouwen 1988). Item omissions was estimated by the proportion of “don’t
know” or “no opinion” responses that each respondent gave to the monthly expense question, to the 4 items of mobile
phone use (open-ended questions), to the 13 items of mobile phone use (ordinal scale questions) and to the 20 attitudinal
items.
The questions with ordinal scale response categories in a battery of “agree/disagree” items were found to be
particularly susceptible to acquiescence bias, in which respondents tended to agree with assertions in the question,
irrespective of their content (Krosnick et al. 2005). Therefore, agreeing was estimated as the proportion of “agree”
answers across the 20 attitudinal items.
The tendency to round answers was measured by a binary indicator of whether the response to the monthly
expense question was a multiple of five Euros; for the 2 items concerning the number of calls made and received per day
the proportion of answers multiple of ten was computed; the same computation was made for the 2 items regarding the
number of SMS’s sent and received per day. Interview length was measured in minutes.
Ten indicators of social desirability bias based on 10 questionnaire items were evaluated. A dichotomous indicator
of the (more) socially desirable answer was constructed for each item believed to have social desirability connotations.
The proportion of socially desirable answers was computed for each item.
The analysis began by comparing the demographic characteristics of mobile phone users interviewed at home and
mobile phone users interviewed elsewhere. The latter group included respondents that were in the street, at work, in
another person’s home, shopping, in the car (not driving), on public transport.
Second, the various response quality indicators were analyzed across the two groups of respondents. In general, it
was expected to see more satisficing and more socially desirable answers in interviews conducted somewhere other than
at home. Several binary logistic regression models were estimated using as dependent variable the “interview location”,
coded as 1 for at home and 0 for elsewhere, and each of the data quality indicators as independent variables.
3. Results
3.1 Demographic characteristics of mobile phone users
Our analysis began with an evaluation of subsample equivalence in terms of demographic characteristics of
mobile phone users at home and elsewhere. Table 1 shows the percentage distribution of five demographic characteristics
for each sample.
A significant association was found between interview location and demographics (p<0. 01), concerning sex, age
and occupation. Overall, the associations are summarized as follows:
 Sex – a higher percentage of males (61.5%) was found in the elsewhere group; in the at home group only
46.5% are males;
 Age – the at home group has a higher percentage of older people (26.1%) than the elsewhere group (19.1%)
and a lower percentage of 25-34 year old people (18.5% vs. 25.5%);
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 Occupation – the elsewhere group has higher percentages of people with an occupation, either boss (6.7% vs.
4.1% in the at home group), self-employed (10.8% vs. 7.7% in the at home group) or employed (60.3% vs.
46.8% in the at home group); a lower percentage of people in another situation (retired people, housewives,
students) was found in the elsewhere group than in the at home group (22.2% vs. 41.5%).
Table 1 – Selected demographic characteristics of mobile phone users interviewed at home
vs. elsewhere (%)
Sex
Male
Female
Age
15-24
25-34
35-44
45-54
55+
Educational level
Elementary
Secondary
University
Occupation
Boss (with employees)
Self-employed
Employed
Other situation
Region of residence
Metropolitan Area of Lisbon
Metropolitan Area of Porto
North
Center
South
Archipelagos of Madeira and
Azores
At home
(n=1,083)
Elsewhere
(n=418)
46.5
53.5
61.5
38.5
14.3
18.5
22.1
19.0
26.1
11.5
25.5
24.4
19.4
19.1
45.4
32.7
21.9
39.7
36.8
23.4
4.1
7.7
46.8
41.5
6.7
10.8
60.3
22.2
Significance
2(1) =27.00; p=0.000
2(4) =16.12; p=0.003
2(2) =4.12; p=0.128
2(3) =49.42; p=0.000
2(5) =2.70; p=0.747
20.8
10.8
37.7
15.8
10.6
19.9
13.2
36.8
15.6
9.3
4.3
5.3
Because there are compositional differences between at home and elsewhere respondents it will be necessary to
account for those differences when making the comparisons regarding data qual ity. Occupation is the demographic
characteristic more strongly associated with interview location (2(3)=49.42; p=0.000) and in consequence will be included
as a covariate in all subsequent analyses. Despite the significant association found between interview location and sex and
age, these variables will not be included as covariates because a significant correlation was detected between them and
occupation.
3.2 Response quality
Significant differences were found between the two groups in four indicators of satisficing (Table 2): the
proportion of don’t knows regarding monthly expense of the mobile phone was lower in at home interviews (p<0.1), the
proportion of don’t knows across the 13 items on the frequency with which the mobile phone is set on silent mode or
turned off was higher in at home interviews (p<0.1), the proportion of “agree” responses was lower in at home interviews
(p<0.1) and the proportion of rounded answers about the number of calls made and received per day items was lower in
at home interviews. These indicators suggest less satisficing in at home interviews, with the exception of the proportion of
don’t knows across the 13 ordinal items.
143
Table 2 – Differences in indicators of satisficing between interviews at home and elsewhere
Indicator
Don’t knows “monthly expense” item
Don’t knows “4 items of mobile phone use”
Don’t knows “13 ordinal scale items of mobile phone use”
Don’t knows “20 attitudinal items”
Agreeing
Rounding “calls made/received”
Rounding “SMS’s sent/received”
Rounding “monthly expense”
Interview length (minutes)
B
s.e.
Sig.
R2
0.395
0.086
+0.675
+3.026
0.678
0.500
0.156
+0.025
0.010
0.220
0.402
0.388
1.880
0.397
0.170
0.148
0.159
0.012
0.072
n.s.
0.082
n.s.
0.088
0.003
n.s.
n.s.
n.s.
0.052
0.049
0.052
0.052
0.051
0.056
0.049
0.043
0.051
When comparing indicators of socially desirable answers, differences were found in four items (Table 3). The
proportion of mobile phone users saying the bill of the mobile phone is paid by the company in which they work
(p<0.001), the proportion of mobile phone users saying they are intensive/heavy users of the mobile phone (p<0.1), the
proportion of mobile phone users that reported a high number (more than 6) of calls made per day (p<0.001) and the
proportion of mobile phone users that reported a high number (more than 8) of calls received per day (p<0.01) is lower
among at home interviews, suggesting a tendency to give more socially desirable answers in elsewhere interviews.
Table 3 – Differences in indicators of socially desirable answers between interviews at home and elsewhere
Indicator
Number of mobile phones used regularly: 2+
Type of contract : monthly
Mobile phone expenses: paid by the company
Type of use of mobile phone: “intensive or heavy”
Main contributor to household income: the respondent
Expense per month (> 3rd quartile = 20 euros)
Number of calls made/day (> 3rd quartile = 6 calls)
Number of calls received/day (> 3rd quartile = 8 calls)
Number of SMS sent/day (> 3rd quartile = 10 SMS)
Number of SMS received/day (> 3rd quartile = 10 SMS)
B
s.e.
Sig.
R2
0.077
0.133
0.942
0.421
0.172
0.091
0.517
0.400
0.154
0.171
0.121
0.148
0.198
0.228
0.128
0.125
0.133
0.135
0.136
0.134
n.s.
n.s.
0.000
0.065
n.s.
n.s.
0.000
0.003
n.s
n.s.
0.049
0.048
0.069
0.051
0.051
0.049
0.062
0.052
0.048
0.050
4. Conclusions and Implications
The outcomes suggest that there are differences between the demographic characteristics of people interviewed
at home and those interviewed outside home. The tests conducted reveal that respondents who were not at home at the
time of the interview were more likely to have an occupation than those interviewed at home.
The outcomes suggest that there are differences between the data quality of interviews conducted at home and
those conducted elsewhere. The tests revealed significant differences in terms of indicators of satisficing and suggest that
data quality tends to be lower in interviews conducted outside the respondent’s home: there was a greater tendency for
elsewhere respondents to round answers about the number of calls made and received, not to give the monthly mobile
phone expenses and to agree with attitudinal items. Contrary to expectations, interview length did not vary with interview
location. We expected elsewhere interviews to take longer to complete due to communication problems which could cause
difficulties for example in hearing and answering questions but this was not verified. This probably indicates that, when
taking a call, respondents move to a quieter place at the start of the interview, or only agree to cooperate with the survey if
they feel they are somewhere that does not hinder conversation.
The differences found suggest a greater social desirability bias in elsewhere interviews. Despite a correlation
between the four items of socially desirable answers and occupation has been detected, the analysis reveals that the
differences in data quality between at home and elsewhere interviews are beyond occupation differences. This suggests
that the characteristics of the interview setting are different at home and out of home, and this affects the way people
answer the questions.
The differences identified suggest that, when collecting data in mobile phone surveys, data quality issues warrant
at least as much attention as response rate issues. The fact that there were significant differences in several data quality
144
indicators indicates that researchers should consider multiple indicators when assessing data quality and that reliance
upon a single indicator may lead to simplistic and inaccurate conclusions.
Acknowledgements
This work received financial support from Fundação para a Ciência e Tecnologia through the PTDC/EGEGES/116934/2010 project.
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146
Competing Research Methods: What’s behind
it?
Methodology; Research Methods; Qualitative; Quantitative; Triangulation.
Ivo Cardoso, Universidades Lusíada, ivofilipe_@hotmail.com
Raquel Reis, Universidades Lusíada, raquel.reis@cenertec.pt
Abstract
Researchers can choose between three types of methods: qualitative, quantitative or triangulation. However, there is some
controversy among those preferring either qualitative or quantitative research approaches. Undoubtedly, each one has its
own advantages and disadvantages. So, the main question is to understand which methodology is preferred by researchers
and what the main motivation behind it is. Therefore, this paper aims to find out what is the research method, or methods,
employed by researchers from a University in the North of Portugal. Moreover, this study aims to find out if there is any
relation between participants’ preferences and their respective background.
In this exploratory research, it was used a qualitative methodology, 9 semi-structured interviews being conducted with
lecturers in the management and marketing field.
It was found that quantitative research is the most applied methodology. However, interviewees would theoretically
prefer either qualitative research or triangulation. This seems to be explained by lecturers when arguing that quantitative
research is “easier” to conduct and, generally, more accepted in academic journals and conferences. Thus, lecturers who
would prefer to employ qualitative methods decide to do triangulation. At same time, it was noticeable that lecturers who
prefer quantitative methods also start to employ triangulation since they believe that academia needs to move on from the
“quantitative only research”.
Thus, these findings indicate that qualitative research is not so used due to some constraints, such as time and financ ial
resources to conduct the research and difficulty in organizing data and access.
Introduction
Companies focused on customers’ needs should have a good marketing management. This means that they should collect
much information as possible from their customers and their competitors.
Only this way, organizations can plan, execute, control and outline strategies to pursue in order to obtain maximum
efficiency. In this context, market studies play a key role as a process of providing the information necessary and essential
to the achievement of marketing objectives.
This study aims to find out what is the most used research method by lecturers from a University in North of Portugal,
particularly, if they prefer to use qualitative research, quantitative research or the triangulation method.
Thus, this paper starts with a literature review on market research, followed by the description of the methodology
applied in this study, results achieved and discussion, research limitations, future research and, finally, the conclusions.
147
2. Literature Review
2.1. Market Research
The increasingly competitive markets lead to the need of establishment and achievement of clear goals by enterprises. As
such, the market research, also known as marketing research, is an essential tool to collect the information necessary to
achieve these goals.
According to Mattar (1995) the first market studies are from 1910 in the U.S.A,. as a result of the Industrial Revolution.
Thereafter, the market studies evolved registering a higher growth in the 50 and 60 decades (Mattar, 1995). Various
authors had contributed to this development, among which are Evrard, Pras & Roux (1993), Churchill (1987), Lambin
(1990) and Marchetti (1996).
According to the American Marketing Association (1987, 1, 14), Marketing research is defined as:
“the function that links the consumer, customer, and public to the marketer through information --information used to identify
and define marketing opportunities and problems; generate, refine, and evaluate marketing a ctions; monitor marketing
performance; and improve understanding of marketing as a process. Marketing research specifies the information required to
address these issues, designs the method for collecting information, manages and implements the data collec tion process,
analyzes the results, and communicates the findings and their implications. ”
Green & Tull (1974) had concisely defined the process of marketing research as the collection and analysis of relevant data
to the identification and resolution of marketing problems of an organization.
2.2. Phases of Market research
Accordingly to Kotler & Keller (2008), the development of a market study should consist of four key steps:
1) definition of the market study problem and aims
2) development of the research plan for data collection.
3) implementation of market research - Collection and analysis of data.
4) interpretation and presentation of results.
Although many other authors have proposed other methods in the specification of each stage, all of them turn out to be
quite similar.
2.2.1. Definition of market study problem and aims
To Mcdaniel & Gates (2005) the crucial step of the process is the correct definition of the problem. A wrongly defined
problem means that the remaining developed process will be incorrect, causing poorly defined objectives and
consequently a loss of financial resources and time. Malhotra, Rock, Laudisio, Altheman, & Borges (2005) add that the
research can be made after both, researcher and marketer, correctly define and agree on the problem for research.
Lopes (2010) also refers that the lack of information that allows marketers to take appropriate decisions are, in most
cases, the reasons and problems that lead to the market study execution. The problems may be related to the consumer,
packaging, product, distribution channels, advertising or market itself. After defining the problem it should be set the
goal(s) of the market study.
2.2.2. Types of market research
Even during the 1st phase, the researcher should choose the type of research that best fits his objectives: exploratory
research, descriptive research or causal research. According to Vieira (2002) exploratory research aims to improve the
relationship between the researcher and the problem under investigation, trying to simplify complex problems through
the exploration of ideas. To Malhotra et al (2005) the exploratory research aims at the discovery of ideas and information.
For these authors the main features of exploratory research are flexibility and versatility. The methods used to conduct
this type of research are surveys and pilot studies, case studies, secondary data and qualitative research.
148
To Churchill (1987) descriptive research consists of understanding and interpreting reality as it is, without interfering or
modifying it. Vieira (2002) adds that descriptive research is typically used for large samples and is based on the use of
questionnaires. Malhotra et al (2005) state that the purpose of descriptive research is to describe features or functions of
the market, which has as main characteristics the previous formulation of specific hypotheses (pre-planned and structured
model). The methods used to conduct this type of research are secondary data, surveys, panels and observation data.
For Vieira (2002: 65) the causal/experimental research "deliberately manipulates some aspect of reality. It is used to obtain
evidence of cause and effect.” Malhotra et al (2005) argues that the goal is to determine relationships of cause - effect and
that its main features are the manipulation of one or more independent variables and the control of other measurement
variables. The most used method for performing this type of research are the formulations and testing of hypotheses.
After the description of these three types of research modes the following question could be raised: What type of research
is currently used predominantly by researchers? In this sense, Sampaio, Perin,, Luce, Saints, Santini, Oliveira and Lenz
(2012: 463, fig. 2) conducted a study in order to get an answer to this question in Brazil. Their results showed that in the
90s the descriptive and exploratory studies were the most used empirical studies. However, from 2000 causal studies
began gaining preference. As a result of this change, nowadays it seems that the three types of research are similar in
terms of preference of marketing researchers.
2.3. Implementation of market research - data collection and analysis
At this stage, the 3rd phase of the process of the market study preparation, the researcher must choose one of the forms of
primary data collection. He should choose between quantitative research, qualitative research or triangulation (mix of
qualitative / quantitative methods).
2.3.1. Qualitative research
Lopes (2010), Malhotra et al (2005) and Mcdaniel & Gates (2005) stated that qualitative research is the one that is based
on understanding. It seeks information through interviews and group discussions. The interviews generally do not have a
pre-defined structure, i.e. the researcher may choose to use structured, semi-structured or unstructured interviews in
accordance with the objectives and purpose of the research. Thus, using semi-structured or unstructured interviews the
researcher can change the questions as the interview proceeds, in order to achieve greater efficiency in data collection.
This freedom allows the researcher to perceive the thoughts, behaviors and attitudes of interviewees. Sometimes, there is
the need to employ qualitative research methods due to the need to understand the factors underlying the research
problem. This kind of research usually explores small sample sizes typically ranging from 10 to 30 interviews.
2.3.2. Quantitative research
According to Lopes (2010) and Malhotra et al (2005) this research method is based on facts. It attends to quantify data
resulting from large samples using statistical analysis. In this research method, unlike qualitative method, it may be harder
to understand thoughts, opinions, behaviors and attitudes of interviewees. The same questions are made to all
interviewees, generalizing the results obtained.
2.3.3. Quantitative versus qualitative research
Malhotra et al (2005) and Mcdaniel & Gates (2005) summarize the main differences between these research methods
(Tables 1 and 2). However, Mcdaniel & Gates (2005) go deeper over the theme since they compare a bigger number of
research characteristics compared to Malhotra et al (2005).
149
Table 1: Differences between qualitative and quantitative research according to Malhotra et al (2005: 114, table 6.1)
Aim
Sample
Data collection
Data analysis
Result
Qualitative Research
Obtain a qualitative understanding of the
reasons and the basic motives
Number of non-representative cases
Non-structured
Non-statistical
Develop an initial understanding
Quantitative Research
Quantify the data and generalize sample
results to the population of interest
Great number of representative cases
Structured
Statistical
Recommend a course of action end
Table 2: Differences between qualitative and quantitative research according to Mcdaniel & Gates (2005: 46, table 4.1)
Question type
Sample size
Amount of information
from each interviewee
Management requirements
Type of analysis
Equipments
Level of replicability
Qualitative Research
Investigative
Small
Quantitative Research
Narrowly investigative
Large
Substantial
Variable
Interviewer with special abilities
Subjective, interpretive
Tape recorders, projection devices, video,
pictures, discussion guides
Low
Interviewer with less special abilities
Statistical, calculations
Questionnaires, computers, printed, book
post
High
Statistical, decision models, decision
support systems, computer programming,
marketing, marketing research
Descriptive or causal
Researcher Training
Psychology, sociology, consumer behavior,
marketing, marketing research
Research type
Exploratory
2.3.4. Triangulation
According Mcdaniel & Gates (2005) the combination of qualitative and quantitative research in a single study is becoming
common for marketing researchers. This is due to the fact that both methods, used in the same study, improve the
efficiency of both. The use of quantitative research, preceding the qualitative research, allows the researcher to develop
smaller and targeted questionnaires, obtaining greater research efficiency and less costly. However, depending on the
research objectives, the two methods can be employed in reverse order. To Malhotra et al (2005: 115), "quantitative
research needs to be preceded by the appropriate qualitative research ... Sometimes qualitative re search is undertaken to
explain the findings obtained by quantitative research." In contrast, Mcdaniel & Gates (2005: 47) consider that "the patterns
shown in quantitative research can be enriched with the addition of qualitative information on the reasons and motivations of
consumers."
3. Methodology
3.1. Research Design
The purpose of this study is to show which research methods, qualitative research, quantitative and / or triangulation is
the most employed by researchers from a University in the North of Portugal. Likewise, this study aims to find out if there
is any relation between participants’ preferences and their respective background. In order to obtain information about
the researchers’ perceptions and opinions on this issue, this exploratory research was applied a qualitative methodology,
including 9 semi-structured interviews.
3.2. Definition and sample selection
Data was collected from the university academic services, the total population size being 27 researchers. The sample was
purposeful and consisted of 9 researchers who were selected by the researcher to obtain as much information as possible
about the purpose of the study (Saunders, Lewis and Thornhill, 2000).
150
The researchers selected were invited to participate in this study by e-mail in which the interview guide was attached.
Therefore, all the selected researchers had the opportunity to be familiarized with the topic of the interview. After
confirmation of acceptance by researchers it was scheduled individual interviews with each participant.
Thus, this study was focused on a non-probabilistic sample, purposeful and included 33.3% of the total population, which
corresponds to 9 professors, 5 females and 4 males, all with a PhD degree.
3.3. Data Collection
For the collection of data an individual and semi-structured interview with each participant was conducted. The interview
was recorded for further analysis. In order to safeguard the identity of each participant a numeric code was used for each
interviewee. The interview guide included the following questions:
1. What are the courses that you are currently teaching as a professor in the Faculty of Economic Sciences of the
University?
2. What is your training area in graduation?
3. What is your training area in the Master?
4. What is your training area in PhD?
5. Which of the research methods presented did you use in your master's thesis?
6. Which of the research methods presented did you use in your PhD thesis?
7. If the interviewee has changed the research method used in the master's thesis for the PhD thesis, ask why this change.
8. If the interviewee method was the same in both ask why the maintenance method of study?
9. What is your preference in terms of research methods: quantitative research, qualitative research or triangulation?
Why?
10. What is the research method that can be more effectively to obtain the necessary information for the identification of
customer needs?
3.4. Analysis of data collected
The information collected was analyzed in order to contemplate the research aims. The information was treated following
the tables of data reduction proposed by Miles and Huberman (1994), following these steps: a) reduction of information,
b) disposal and transformation of information, c) results achievement.
3.5. Public policy and ethics
To ensure confidentiality and ethics of this study, participants were asked if they would allow the use of their identity and
agree to record the interview in audio format. All participants authorized both. However, in order to guarantee the
identities of participants interviewed it was decided to replace their names by numerical references.
4. Results
In table 3 the summarized data on the interviewees is presented. Below, the summary of each interview is presented.
Table 3: Summary of interviewees information
Interviewee
Degree in:
1
Sociology
2
International
relations
3
Computer
science
Master in:
Economic
sociology
Commercial
management and
Marketing
Management
PhD in:
Master thesis
PhD thesis
Economy
Triangulation
Quantitative
Communication
Quantitative
Triangulation
Management
Quantitative
Qualitative
151
5
Industrial
engineering
management
Management
Industrial
engineering
management
Marketing
6
Economy
Economy and
social policy
7
Management
Environmental
management and
social
responsibility
8
Economy
European
economy
9
Economy
Economy
4
Industrial
engineering
management
Marketing
Social economy and
professional
training
Environmental
management and
social
responsibility
International
economy and
international
strategic
management
Management
Quantitative
Quantitative
Qualitative
Qualitative
Triangulation
Triangulation
Quantitative
Quantitative
Quantitative
Quantitative
Quantitative
Quantitative
1 – The interviewee # 1 states that the research methods "are like a toolbox", so you must use the research method that
best suits the purpose, the object of the problem and the constraints of the research, as time and resources available. He
also states that "has no membership card of any search method", i.e. he does not have preference for any of the methods, he
uses that or those methods that are more convenient for the study in order to obtain the maximum possible information
needed. As a reflex of this viewpoint there was a change in the method of research between master's thesis and the PhD
thesis since, according to the interviewee, the circumstances demanded it. The interviewee recognizes that he feels most
comfortable in the use of quantitative methods. He also states that his training in sociology allowed him to experience the
use of various methods and he acknowledges that the training area is undoubtedly a very strong influence in the
use/choice of research methods. In the current market context, the interviewee mentions that the best way to obtain
customer information is through qualitative research since "the consumer lies" when answering to quantitative
questionnaires. So, the only way to avoid this is through the use of qualitative research methods, such as observation in the
"consumers´ habitat, at the time of purchase, in the act of consuming the product."
During the interview the interviewee was always very comfortable and very secure in his opinions. He proved to be always
available and reported several examples.
2 – The interviewee #2 refers that his preference is the use of triangulation because he considers it to be the most
comprehensive research method. However, states that if due to constraints, such as time and resources, he will choose to
use just one research method. In this case, he would use the quantitative method. The interviewee says that "in marketing
we have to make decisions based on actual data, quantified goals" and therefore one should not exclude the use of the
quantitative method. However, when possible it should be used triangulation. The interviewee also notes that the
academic training has influence in the use and preference of a research method. In the current market context, the
participant states that to internally analyze an organization it will be enough the use of qualitative research. But, to analyze
the external market it will be required the use of triangulation or quantitative research due to the size of the
universe/population.
The interviewee was always very confident, sure of his opinions and sincere.
3 – To the interviewee # 3 the preferred research method to use is the qualitative research because this method is more
focused to his areas of interest: the Management. He refers that firstly the investigator should identify the purpose of the
study and then define the methodology to use. The interviewee mentions that "there is the idea that qualitative research is
not scientific, it is to talk about some things without scientific rigor." He also states that in England, unlike in Portugal,
qualitative research has a more "scientific" credibility and acceptance by academic community and publishers.
Interestingly, he also mentions that, in some universities of Portugal, the students in a doctoral program have classes of
quantitative methods but not on qualitative methods. Thus, these students are somehow being influenced to follow the
quantitative method which is harming science by making it less rich and more uniform. Thus, the academic area and even
the country of graduation, appears to influence the preference for the research method. It is also noticed that some
students choose to use the quantitative research because they consider it easier for analysis and processing. In the current
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market context, the interviewee states that, “depending on the sample size, the qualitative research or triangulation are the
most appropriate methods due to new market trends such as co-creation of value.”
Throughout the interview the interviewee showed interest in this study, showing a preference for qualitative research.
4 - The interviewee #4 refers that the first degree? has a high influence on the use/choice of the research method. In
engineering everything has to be quantified, everything has to be measured, because it is based on those measurements
that one can make decisions. He considers that in the engineering field there are not many opportunities for the use of
qualitative methods. "The numbers are measurable, they are forever." However, the interviewee also referred that "it really
depends on the background?; we should not be too closed." He agues that lecturers with degrees in math areas have default
preference for quantitative research, while researchers with social sciences degrees have per si a preference for qualitative
methods. The participant also says that there is an additional difficulty in publishing articles entirely qualitative. In the
current market context, the interviewee understands the use of the method of qualitative research by the marketers, but
believes that triangulation might be more appropriate, as it contains quantified data that support the decisions. So, the
preference of using the research method by this participant falls on quantitative research methods.
During the interview, the participant showed up interested, convinced of his opinions but also flexible to other points of
view.
5 - The interviewee #5 has a preference towards qualitative research, but recognizes that “we cannot always do what we
prefer due to constraints, such as time”. It also acknowledges that "there are surveys that ask purely quantitative methods."
The choice of method can be "influenced by personality, by involvement between the investigator and the research ".
Researchers with more relational personalities may feel more comfortable with qualitative research. The participant
demonstrates some concern about the quality of research that students tend to do – the "research fast food". Sometimes,
students choose more the quantitative method because it is quicker and easier to analyze. The interviewee emphasizes
that the trend of marketing research in other countries is the qualitative method. Nevertheless, Portugal is still a little
behind and, therefore, it has been highlighted the use of triangulation, a result of a "fashion" that is being installed. It´ s
common the difficulty in publish articles entirely qualitative and therefore researchers feel obliged to use triangulation.
The “quantitative researchers” want to follow this fashion and they will also want to use the triangulation method. This
situation will continue until the researchers realize that they must do what they like and what is more appropriate for the
research aims. In the current market context, the interviewee stated that "I would be very unfair if I said that the ideal
method of research to identify customer needs is the qualitative method”. Therefore, it seems that it all depends on the
purpose of the study. The marketer should use the research method that best suits his goals, the theme and the respective
constraints.
During the interview, the interviewee expressed himself with some emotion that reveals his appreciation and interest in
this topic. He was confident and comfortable in addressing the issues discussed.
6 – The interviewee #6 refers the difficulty in publishing qualitative data in scientific journals, noting that to have
quantitative data is always a requisite to publish. Therefore, it seems that it is easier to publish quantitative than
qualitative research. He argues that "any good scientific work should contain both parts: the quantitative and qualitative"
and that "a lecturer must always do research because he is not satisfied with what just come in manuals prepared by others."
The interviewee says that "creation is a profoundly human thing.... Scientific articles are not emotional; they are rational and
always try to prove something". It was noted that the participant have a preference for the use of triangulation. However,
that the participant highlights that he uses several research methods, using the one that is more appropriate regarding the
purpose and object of the study.
7 – To participant #7 the preferred research method is the qualitative because he considers it to be the most
comprehensive research method and because he "likes dealing with people". In quantitative research data is obtained
faster. Yet he considers that these studies are always limited and has doubts in the honesty of respondents’ answers. In
addition to the researchers’ background, he also believes that personality and personal characteristics are important in the
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selection of the research method. Whenever possible, this researcher likes to use the triangulation method, since he
considers that the mix of two research methods complement each other. Regarding the difficulty in publishing, the
interviewee admits that "sometimes we have to submit ourselves to the game rules and we must draw up articles containing
quantitative data”. The interviewee gives an example concerning the identification of consumer needs, considering that the
best method to be used is the qualitative since only through direct observation the researcher can ensure that consumers
do not lie.
Throughout the interview the participant always maintained a confident and participative attitude.
8 - The interviewee # 8 argues that the research method to be applied in a study depends on the purpose of the same. For
example, macroeconomic studies with data from reputable international databases need to be worked through the
quantitative research method. For queries related to consumer perceptions, the qualitative method is more appropriate.
However, the use of triangulation enriches the study given that both methods are complementary. He also says that "there
is no fundamental method or one better than the other". The use of research methods depend on the scope of the study
itself, depend on whether “we study the level of human behavior or if we study the level of a sector activity”. The participant
also notes that by using the triangulation method, if the results of both research methods are very different, the
investigator should formulate a new research question; i.e. he should do more research and find out the reasons for those
results. Also she refers that, mainly in economic databases, the statisticians need to use qualitative studies to formulate
and create indexes. This seems to reflect that both research methods are essential and they both complement each other.
The interviewee also says that, in fact, there is pressure, by the journals where researchers attempt to publish, to use
quantitative methods. However, he considers that this situation will change whereas the trend is the use of triangulation
and also that qualitative methods will gain greater acceptance in scientific journals.
Throughout the interview the participant always maintained a confident stance, always giving opinions based on a lot of
examples, including examples of studies prepared by him.
9 – The researcher # 9 prefers to use quantitative methods due to his background area being closely related to
mathematics and statistics. Also, he justifies his choice saying that he is better able to use these methods and also believes
that these methods are easier to treat. Despite this, the interviewee argues that there is no better method than the other,
but that nowadays he feels the need to work the qualitative methods, using whenever possible the triangulation "lately I
consider that all methods should work complementarily". The use of this method is a result of current market needs, "human
behavior has a very large degree of unpredictability". Thus, it seems that the use of qualitative methods helps in addressing
gaps that arise in the use of quantitative methods. "I try to pass the idea to my students that whenever possible they should
take the questionnaires", since the collected data will be worked out to improve a product or service in order to create
value for both parts. The interviewee also refers the difficulty in publishing articles 100% qualitative.
Throughout the interview the interviewee showed to have a high experience in the use of quantitative methods and was
confident and comfortable in addressing the suggested topics.
5. Discussion
5.1. The research method most used and why
With the data obtained it appears that the most used study method is the quantitative method due to the following factors:
- Lack of time and financial resources available for the development of the qualitative research.
- Difficulty in publishing qualitative articles.
- Personality of the researcher.
- Object of study, research aims, sample size and data to be analyzed.
- Ease in data analysis (quantitative seems to be easier than qualitative)
- Background area of the researcher.
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- Researcher´s personal skills in the use of various research methods.
5.2. The use of triangulation and why it is becoming a trend
It is important to note that it seems that researchers who choose a quantitative methodology recognize that nowadays it is
also required to use qualitative methods due to the current needs of the market. In turn, researchers who opt for a
qualitative methodology recognize the need of using quantitative methods to get their articles published. Thus, there is a
tendency to use the triangulation method both to “quantitative researchers” and “qualitative researchers”.
5.3. The influence of first degree? area in the use of a particular research method
It is possible to verify that researchers who have a background in the field of mathematics and statistics (interviewees # 4
and # 9) prefer the use of quantitative methods. Instead, the researchers who have an area in the field of management
(interviewees # 3, # 5 and # 7) prefer to use qualitative methods. Researchers who have an education level in the field of
economy (interviewees # 1, # 6 and # 8) do not have a preference for the use of methods, i.e. they use the method(s)
required for the development of an effective and enriching research. They consider all research methods as indispensable
tools to be used. The interviewee # 2, despite having a training area related to management, prefers to use the
triangulation method. However, if there is the requisite to choose just one method, he prefers the quantitative research.
Thus, one can consider that scientific areas related to mathematics induce the use of quantitative research method, while
the scientific areas related to social sciences and humanities induce the use of qualitative research and triangulation
method.
6. Research limitations
The main limitations of this research are the time needed to have an answer from the sample in order to arrange the
interviews at a convenient time for both parts, interviewer and interviewee. Moreover, the data analysis was a slow
process due to the high amount of data, as usual in qualitative research. Another limitation was the small sample size due
to the small number of available researchers with a PhD degree. Finally, there was insufficient time available to use the
triangulation method, namely in other Universities in the North of Portugal due to lack of time to analyze all the data
collected in the 9 semi-structured interviews.
7. Future Research
It seems crucial to continue this research on the type of methodologies preferred and used by researchers. From this
study, some important issues emerge that should be considered in future research, such as:
-Fast food research.
-Difficulty in publishing articles that is purely qualitative.
-Quantitative methods are easier to handle.
-Why some training areas do not include qualitative methods in their study plan? What is the reason for the focus on
quantitative research in Portugal?
8. Conclusion
The objective of this study was to identify which research method – qualitative research, quantitative or triangulation – is
the most used by researchers from a University in the North of Portugal. Also, it was aimed to find out any relationship
between the preference of research method by researchers and their background areas. It is clear in this study that the
most advocated methodology is the use of triangulation, mixing qualitative and quantitative methods in order to get the
best of both worlds. However, it seems important to understand better if this choice is considered the most “effective” or
the most “convenient”. It seems that the difficulty in publishing qualitative research is a crucial factor for avoiding
choosing qualitative research. Given this scenario, all the interviewees, regardless of their academic background, think that
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the best choice is to perform a research based on triangulation, which can overcome the shortcomings of each
methodology mentioned. It also seems that researchers are not doing exactly what they consider more appropriate in
terms of research aims but what is more accepted by the academic community. It is intended to continue this important
and innovative research, using the triangulation method, to investigate other Universities in the North of Portugal.
Acknowledgments
The work reported in this paper was co-financed by FCT - Fundação para a Ciência e a Tecnologia, Portugal (PEstOE/EME/UI4005/2011) and carried out within the research centre Centro Lusíada de Investigação e Desenvolvimento em
Engenharia e Gestão Industrial (CLEGI).
9. References
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Lambin, J. J. (1990) La recherché marketing. Paris: McGraw-Hill.
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Malhotra, N. K., Rocha, I., Laudisio, M. C., Altheman, E. & Borges, F. M. (2005). Introdução à PESQUISA DE MARKETING,
Pearson Prentice Hall.
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intercultural. Tese (Professor Titular), Universidade Federal do Paraná (UFPR), Curitiba.
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Mcdaniel, C. & Gates, R. (2005). FUNDAMENTOS DE PESQUISA DE MARKETING, 4ª edição, LTC.
Miles, M.B, and Huberman, A.M. (1994). Qualitative Data Analysis, 2nd Ed., p. 10-12. Newbury Park, CA: Sage.
Sampaio, C. H., Perin, M. G., Luce, F. B., Santos, M. J., Santini, F. O., Oliveira, M. O. R., Lenz, G. S. (2012) Pesquisa Científica da
Área de Marketing no Brasil: uma Revisão da Primeira Década do Século 21, RAC, Rio de Janeiro, V. 16, n. 3, pp.
459-478.
Saunders, M., Lewis, P. and Thornhill, A. (2000) Research methods for business students. 2nd Ed. Harlow: Financial Times
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Session 5
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Marketing in Public Services: The Citizen
Service Points in Portugal
Public Service; Citizen Service Points; Efficacy; Interoperability; Satisfaction.
Maria De Fátima Fontoura, Polytechnic Institute of Bragança, fatima.fontoura@cm-mirandela.pt
Paula Odete Fernandes, Polytechnic Institute of Bragança; NECE (UBI), pof@ipb.pt
Abstract
The Agency for Administrative Modernisation, IP is integrated in indirect Administration and aims to operationalize
initiatives to modernize and boost the participation and involvement of different stakeholders, whether internally or in
their relationship with citizens, aimed the simplification and innovation in achieving the change Public Admini stration.
The Citizen Service Points (PAC) are multiservice with personalized service, installed in Local Municipalities, as extensions
of Citizen Shops, which equip the regions of greatest interiority of a multichannel network ensuring greater proximity w ith
the requirements and due diligence for Public Administration.
In this respect, with the assumption the paradigm change in the delivery of public services, the objective of this study was
based on measuring citizen satisfaction regarding the services provided in the PAC. To this end, descriptive univariate and
bivariate analysis was performed for the treatment of data collected and in order to meet the main goal of the present
research. All inference analysis was carried to determine if the differences and/or relationships found between the
features in the sample are extrapolated to the population, considering a significance level of 5%. For this purpose, the
object of study focused on Citizen, a sample of 306 users, that go to the 54 PAC distributed by Portugal.
According to the results achieved, it can be said that citizens are very satisfied with the efficacy of the PAC. Also showed
that the variables related to Accessibility, Products and Services and Involvement and Participation of the citizen have the
greatest weight when we trying to measure global satisfaction of the citizen while PAC users.
INTRODUCTION
In the context of actions leading to a greater proximity from citizens to the state appeared in 2002, in the wake of Citizens ’
Shops, a new awareness: The Citizen Service Points (PAC). The Citizen Service Points implemented in Portugal reflect the
actions of various governments for the implementation of the new paradigm of decentralized public services, closer to the
citizen and all economic agents. Additionally, the analysis of the public service value to society made clear the relevance of
the physical distribution model focused public services, in a complementary logic in relation to other distribution
channels. It also allowed understanding their own catalytic role in administrative modernization, as well as the direct and
indirect effects for citizens, businesses and the own image of the country.
In this context arises the present research work which intends to analyse the impact and proficiency of this channel of
public services, the Citizen Service Points with increasing importance in everyday life and quality of life of the populations
they serve. Strategically located in regions with lower population density and installed in municipalities, but still very little
studied, despite the multiplicity of interests and material available for research. Thus, the objective of this study is based
on certifying the satisfaction of citizens using PAC, in its many valences. It was understood also to investigate on this
subject would be a disclosure of the PAC and the services provided therein, because, unfortunately, it appears that there is
still a lack of knowledge of this type of service in one part of population. Thus, it is believed that the reach of this study is a
way to validate and promote what has been done and is being done in the administrative modernization in Portugal, as
well as to identify how the public perceives the good practices and how these positively influence their relationship with
the state and their quality of life.
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The purpose of this research study was focused on citizens who used one of the 54 Citizen Service Points in Portugal
Continental. The PAC on the islands of Madeira and Azores not included in this study because of speci fic circumstances of
coordination of respective Regional Governments what would take much more time to collect data.
We chose to use a descriptive and quantitative methodology. The instrument for data collection was based on the model
CAF (Common Assessment Framework), builds on the excellence model of EFQM (European Foundation for Quality
Management) and in order to contribute to the public services improvement through self-assessment based on a model
consisting of criteria based on principles of excellence. We applied a questionnaire titled “Satisfaction Questionnaire for
Citizens/Clients”, divided into 4 components with which it was intended to obtain information on the Global Image
Organization, Involvement and Participation, Accessibility, Products and Services. The set of information collected identify
the importance attached to the service, the satisfaction of citizens and consequently the perceived quality of the PAC.
In this sense, this study is organized into six points. After this point where it i s made a brief introduction to the topic under
study, in the following section it will be studied the public services specificity. In the third section is presented the
organizational model adopted for decentralization and public service improvement. Subsequently the fourth point
addresses the issue of the Citizen Service Points impact in Portugal. Under points five and six, it is made, the empirical
analysis on the study subject, is intended to meet the target of empirical study and validate the research hypotheses, will
be described the data collection methods instruments and research techniques, data collection process and the procedure
for its collection and sample selection, processing, analysis, discussion and interpretation of results. Lastly will b e
presented the main conclusions of this study.
1. PUBLIC SERVICES SPECIFIC FEATURES
Currently, there is a wide range of services available to citizens, whose choice left to fall back on the amount, to give
importance to aspects such as the quality and satisfaction that they get from those services.
The most classical vision of the aspects that characterize the services is based on five essential characteristics to qualify
them (Coelho, 1998; Lopes, 2006):
 Intangibility: translates into the inability of the customer to experience or enjoy a service before the purchase,
originating insecurity moments and uncertainty in its acquisition. As regards Lopes (2006), to prevent these levels
of indecision, organizations should develop a perception about safety and quality of service, trying to turn his offer
intangible, tangible as possible in some aspects that represent the service, particularly in what concerns the contact
with the customer, such as pleasant physical infrastructure, staff professionalism, proper equipment, catchy
advertising, etc.
 Inseparability: production, distribution and consumption are made in a single process the service cannot be
separated from the person who is consuming nor the person who is paying. This fact underlines the importance that
the physical and human factors have to services, including the customer, the employees involved and the entire
physical environment in which the service occurs. Lopes (2006), underlines that the success of this feature requires
organizations to remember that employees who provide services are an integral part of that service. In this sense,
should be formed competent: people, not neglecting the physical environment appearance which is one aspect that
determines the quality of that service.
 Heterogeneity: is defined, according to Lopes (2006), by the variability of services may be different each time
they are rendered. The level of quality of a service is strongly influenced by: who, when, where and how it is
provided. The level of quality of a service is strongly influenced by: who, when, where and how it is provided. The
parties concerned are able to introduce service changes, varying depending on the service provider, the customer
and the environment, which has impact on the quality of service, and affects all agents.
 Perishability: In turn, perishability, demonstrates the fact that services, by their nature, cannot be stored in stock
they are extinguished at the moment of its realization (Coelho, 1998). Consequently, organizations have to cope
with situations of seasonality, between periods of high and low demand. Information technologies can completely
change this situation and conceive other ways to better serve the customer.
 Lack of ownership: considers not having an ownership sense, because the client only has access or benefit but
doesn’t possess the installation or activity property as referred by Lopes (2006).
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Correia and Brito (2007), consider that the practical results of these characteristics are manifested in the complexity
analysis of the process of consumption by each user. In this evaluation the user account only with their expectations,
resulting in a variety of information sources (experience, past experiences, etc.). In turn, from the perspective of the
organization, this can only anticipate promises that may or may not be fulfilled. We conclude, therefore, that the effects of
service depend on the shape and intensity of the expectations created by the client and the promises made by the
Organization are in harmony.
Services that have no direct substitutes (competition) put the Public Administration in a monopoly situation, susceptible
to benefits and, often, inertia in providing efficient and effective services to the citizens (Carapeto & Fonseca, 2006).
However, the role of public administration is based on providing services that satisfy the citizen, i.e., that fulfil their needs
and expectations regardless the level of complexity of the service, supply and demand, because the citizen cannot be
harmed.
Due to what was described, it is concluded that the concept and measurement of perceptions of service quality is one of
the most controversial issues in the services marketing literature (Brady & Cronin, 2001). Indeed, measuring the quality of
services is an issue more complex than in the context of products, because “it is not due to statistical measures of quality,
including physical defects or judgments of management, conversely, is a function of customer perceptions about services”
(Cunningham & Young, 2002, p.5).
Furthermore, services are in essence behaviours rather than physical entities as described by Berry (1980), as 'deeds, acts
or performances' (shares, acts and performances), which makes it fairly complex to measure their quality. In fact, this
added difficulty stems from the outset of the actual characteristics of the services identified above, and widely reported in
the literature of marketing services. In public services the task is even more difficult given the complexity and specificity of
the whole machine that provides these services.
2. PUBLIC SERVICES DESCENTRALIZATION
One of the main conclusions of ‘Putting Citizens First’, a study conducted by the Public Administration Committee of the
OECD (1996), on administrative modernization in Portugal, showed that the orientation of the citizen was the engine of
change management. One of the most successful examples of the close relations between citizens and the administration
was the creation of local services, including the Citizen Shop and Citizen Service Points, at the level of central government
and the Municipal Services Assistance, at local government.
In this context, the municipal service comes embodied in a new organizational unit to facilitate the relationship between
citizens and the municipality, providing better access to information. This new unit, commonly known as Municipal
Services Assistance, or even the Citizen Office, functions as the municipality ‘front office’.
Its main tasks are: the treatment of various issues related to licensing and payment of fees and licens es, assignments
within the city, the receipt and delivery of documents and several citizen requests, forwarding all applications to the
various municipal services , providing information on the status of specific processes and other matters useful to citiz ens,
as in the case of the valences of the Citizen Service Points and other branches or portals that are normally installed in these
physical spaces, it is therefore within the municipal service that develops throughout the service Public Administration
(PA ) decentralized services.
There is no doubt, however, that local government became more coordinator and less service provider and operates in a
more increasingly competitive and dynamic environment. The coordination calls for new policy instruments and
strategies, such as public/private partnerships and networks participation among politicians, employees and citizens.
It is time for the Public Administration to convince himself that his existence is justified by citizens and not by its mere
existence. It exists to help promote the citizens and economic agents’ initiative in constructing a dynamic and social
entrepreneur environment. A civically engaged society requires facilitator Administration in what concerns the initiative
of citizens and economic agents.
It is in this context that the progressive implementation of new information technologies is constituted as a crucial lever
for creating an environment conducive to universal infrastructure for e-Government, allowing the society to encourage the
sharing of public responsibilities. The construction of this new society involves the continuous production of new
knowledge.
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Based on all the above, and based on the information the Agency for Administrative Modernisation (AMA), was establish to
enunciate some Portals in operation or being implemented nationwide:
 Citizen's Portal and Portal Enterprise;
 BMS - Multiservice Counter;
 Citizen Shop Mobile;
 One Stop Shop - Let's Have A Child;
 Balcony I Lost my Wallet;
 Simplex MAR;
 Senior Balcony;
 Entrepreneur Balcony.
As Junqueiro (2002) states “The e-government, besides and providing a significant reduction in public expenditure, also
means greater transparency in relations between citizens and civil society” (pp. 336-337). This author also notes, with
emphasis, that the start of digital technologies in Public Administration offers a real opportunity to increase efficiency,
quality and cost-effectiveness. Also believes that states need to invest heavily in how public services are provided, using
new tools and digital technologies and reshaping its inner workings, breaking interdepartmental barriers and redesigning
new methods and organizational forms.
3. THE IMPACT OF CITIZEN SERVICE POINTS IN PORTUGAL
According to information released by the General Agency for Administrative Modernisation, through various channels you
have access to the image of the PAC and its impact on the lives of citizens and businesses is very relevant, the services near
to economic and social agents is extremely important and qualitatively changes qualitatively the lives of everyone.
Without knowing a study concerning this subject, it is known that the PAC has inferred a degree of quality public services.
A good perception of the service is created, not only by a technically correct work, but also by the successful interaction
between user and employee. Even though there are among the population very different reasons for evaluating the PAC,
the new service units are cosy, unlike the old public office, the new are characterized by a healthy, cl ean and ventilated
environment which provides comfort and welfare to the citizen, with high functionality and structured to allow the
integration of various organizational services installed on them, to all this it is added the standardization of clothing and
identification of officials/employees. The location in strategic areas is one of the key factors, it is intended for citizen easy
access to the service, near parking areas served by public transport, and these are very relevant indicators to the
population who uses the PAC and for Local Authorities that received them.
The access to services for people with special needs, particularly with regard to architectural barriers is also a factor of
quality and equity of services to all citizens. Modern computer technology allows rapid communication between different
actors in the network and access to databases, which gives citizens a feeling of security and certainty that their process is
not simply on paper. The fact that users can make payments electronically is one of the advantages pointed to this service.
People who integrate these units are selected for their expertise and sensitivity to serve. The continuous training equally
concerns the use of knowledge, as in the behavioural area.
The citizen/user perceives the review and continuous improvement, a permanent search for greater efficiency, simplicity,
speed and quality of service, with attitudes and innovative procedures, example of this is the extended hours of service in
some existing PAC and highly valued by citizens, so that it can serve a greater number of people, in their spare time, it is
imperative to extend the opening hours beyond the normal working hours of the vast majority of the population.
Disclosure of services is definitely the weak point of this service, through information provided by the AMA, it appears that
a portion of the population does not know the existence of such a service in his area, so the strong use of the media, with
extensive informative advertising that enables the citizen to be informed of all the features and types of services offered in
the PAC, that was never properly implemented, it remains a bad example for the process that the AMA is to be undertaken
and already in very advanced stage, that is transforming the PAC in Multiservice Counter-Citizen Shops 2nd Generation, in
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order to a proper disclosure will be made. Since this type of service is even more important for the citizen, the number of
valences in BMS more than doubled compared to the PAC, so, disclosure is vital for citizens.
When the services provided meet or exceed the desires and needs, responding to their expectations with value many times
higher than expected, the user is satisfied and acknowledges what is being provided, such as 'Dazzling of Customer'
(Kotler, 2009). Thus, the citizens' satisfaction with public services is improved governance in order to place it in the centre
of attention of the public organization. Thus, the citizen is anyone (person or entity) seen as the beginning and end of
public sector activity. Another very important aspect to understand the complexity of the role of public administration, are
the periodic changes of leadership, which requires greater effort to manage public machine.
Relevant also is to involve stakeholders in the process, either in the internal environment (those within the organization,
whether departments or employees) and external environment (those receiving services: citizens, public partnerships,
etc.) , is an important strategy to achieve the desired results (Drucker, 2001), since, as is well known face of so many
unfulfilled promises many citizens were inflexible, suspicious and resistant to discourses of a public sector more
interested in services more modern efficient (Klibsberg, 2009).
In this respect, the public organization must disclose to the society in fact what can be done and, in particular, what it has
done to achieve citizen satisfaction, attract him to participate in the change process to improve it, for it is through him that
many disorders are identified, and thus coherent measures can be applied.
However satisfy the requirements of its users has been an on-going concern of private and public organizations, which
come from the late twentieth century, to adapt their structures, changing their management practices and invest in
training their employees.
In this context, appear each time administrative and technological innovations that result in improved quality of products
and services offered to citizens who are increasingly demanding and aware of their rights, especially in developing
countries.
As regards the public sector, the Portuguese government, according to a retrospective compiled from the Citizen Shops,
initiated efforts to enter the public administration in the context of quality management through a number of initiatives
where the most outstanding successive openings of Citizen Service Points, Citizen Shops and Portals, managing sow some
methods and techniques of Quality Management, which served to sensitize public organizations to focus on the citizen.
The PAC project arose to dictate alternatives , to change the image of public administration characterized by excessive
formalism, units unable to meet the demand for services, poor and uncomfortable physical facilities attendance by
privilege and servers disinterested and unmotivated. This outlook reflects what was characterized as the dysfunctions of
bureaucracy. Too much formality and impersonality bring as a result an inefficient system, dominated by paperwork and
narrow minded professionals, unable to make decisions and think for themselves.
The increasing demand for services and the public satisfaction and compliment signalised the feasibility of transforming
what was temporary into permanent. The PAC project has become an organizer and conductor of a proximity public
service to citizens who perceived their quality.
The first PAC was inaugurated in the municipality of Cascais in July 2004. This type of service has become a showcase
where the successes and mistakes are common knowledge. Transparency strengthens the commitment of employees and
partners, and alert to the need to review and adapt the adopted procedures.
Networks are new forms of organizational life that are incorporated into all organizational levels, to meet the challenges of
today, since traditional forms of organization, hierarchy and bureaucracy, are not sufficient to overcome them, as said
Lipnack (1994).
The Citizen Service Points cover the whole Portuguese territory, as already mentioned this study included the referenced
posts in Portuguese mainland. These multiservice posts with personalized service are located in places with lower
population density. The services available at the PAC want to respond to the specific needs of populations in relation to
services provided by central authorities.
The PAC are installed in autarchies, they indicate in which physical space the citizen can take added value service, as
already mentioned, with the creation of the Municipal Assistance Offices, the two services have appreciated even more
because the Municipal services centralization also began also to contemplate, in the same space, the central state services.
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Employees assigned to PAC service are human resources from the entities that receive the PAC, i.e. Local Administratio n
human resources, these people are who, because of their proximity to the citizen, do a remarkable job of answering and
routing, some training gaps , unfamiliarity with new tools in portals, imprecise information about some central services
and poor leadership, do not prevent them from turning the gaps into challenges and in favour of the best citizen interests,
provide a friendly and effective work, in which citizens perceive the quality and effort and apprehends satisfaction.
This is another example of how the People Management not being brought to its real meaning, which is to work with
people and not use them passively as mere objects to obtain results, makes this large set of collaborators overcome many
constraints, and being themselves aware of their responsibilities and public function, take the initiative to equip
themselves with skills to serve the citizen.
4. THE CITIZEN SERVICE POINTS EFFECTIVENESS: THE PORTUGUESE MAINLAND CASE
4.1. Study aim and research hypothesis
The main objective of this work is based on assure the satisfaction of citizens using PAC, in its many valences, studying in a
systematic way what the actual impacts of implementing a set of services in Citizen Service Points are reflected in citizens
satisfaction . To such, it was opted to select as its subject one of the 54 Citizen Service Points users in Portuguese mainland.
Emphasized that the services offered through the Citizen Service Points reflect the concern to answer to the needs felt by
most people living in areas far from the Central Administration.
In order to assist and guide the empirical study and taking into account the above objectives as a way to respond to the
latent variable, overall satisfaction with the services provided, it was made up a division by 4 of the same components,
namely: Global Image Organization, Involvement and Participation, Accessibility and Products and Services.
In this sense and to meet the main goal of the study were formulated and tested the following research hypotheses:
Research Hypothesis 1: The citizens are generally satisfied with the services provided in the PAC.
Research Hypothesis 2: The components of Global Image Organization, Involvement and Participation, Accessibility
and Products and Services are correlated with Citizens Global Satisfaction.
4.2. Methods and methodology
The data collection instrument used in this study was the CAF Model 2006, Common Assessment Framework, for Quality
Public Administrations Quality on the European Union. Note that the CAF analyses the organization from different
perspectives, providing a holistic analysis of its performance. In the present study was based on the perspective of
citizens/customers.
The application of the questionnaire survey allowed the collection a sample of the knowledge, attitudes, values and
behaviours of the respondents. The questionnaire consists of 40 questions and is divided into two large groups, one group
is composed by all the 4 components (total of 35 items) and related items, namely: Global Organization Image with 7
items, Involvement and Participation with 5 items, Accessibility with 15 items and Products and Services with 8 items. A
2nd group with 5 socio demographic questions, which aims to characterize the citizens, name, age, sex, occupation and
qualifications.
Aiming the measurement of different items it was used the Likert five points scale that is to say 5 possible answers. Thus,
the scale requires respondents to indicate their level of satisfaction or dissatisfaction with statements regarding the
situation that is being measured through numeric values, since the answers reflect the strength and direction of the
respondent's reaction to the statement. The statements of satisfaction should receive positive values or high while the
statements of dissatisfaction should receive low or negative values, so the scale in this questionnaire comprises: 1 = Very
Dissatisfied, 2 = Dissatisfied, 3 = Moderately Satisfied, 4 = Satisfied and 5 = Very Satisfied. It should be noted that all items
were directed in the same direction, so there was no need to reverse the scale to compare results.
As for the process of data collection, it took place between April and December 2011. The questionnaires were distributed
proportionally in districts where they are installed the 54 PAC. In total 306 inquiries (nf) were collected corresponding
approximately to 57% of the 557 (n2) and 70% of the initial sample of 450 inquiries (n1), according to data presented in
Table 1. Note that a first approach to the issue of the size of the initial sample of 450 citizens having taken was a sample
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error of 4.62% and a confidence interval of 95%. Later and since it was not possible to collect the 450 questionnaires but
only 306, the final sample error was 5.6% assuming a significance level of 5%.
Table1. Population and sample under study.
Municipalities
No. PAC
Population
Initial Sample
Final Sample
N
%
n1
n2
nf
36
34
13
Aveiro
2
713.575
8,00%
Beja
1
161.211
1,81%
8
10
0
Braga
3
831.366
9,32%
42
39
22
Bragança
1
148.883
1,67%
8
12
12
Castelo Branco
1
208.063
2,33%
10
10
0
Coimbra
10
441.204
4,94%
22
100
53
Guarda
1
179.961
2,02%
9
10
11
Leiria
4
459.426
5,15%
23
24
12
Lisboa
9
2.136.013
23,94%
108
108
66
Porto
12
1.781.836
19,97%
90
120
68
Santarém
4
454.527
5,09%
23
24
16
Setúbal
3
788.459
8,84%
40
36
13
Vila Real
1
223.729
2,51%
11
10
0
Viseu
2
394.925
4,43%
20
20
20
54
8.923.178
100,0%
450
557
306
TOTAL
After the data collection and its creation of the database was necessary to assess the degree of internal consistency of data
collection (Hill & Hill, 2002). For this we used the Cronbach's alpha, having been obtained for the present study an internal
consistency coefficient of 0.958, which according to the authors Gageiro and Pestana (2008) is a very good internal
consistency allowing to note that the reliability of the questionnaire is very good.
Descriptive univariate analysis was performed, bivariate for the treatment of data collected and in order to meet the
primary objective of the present study. Univariate analysis focused on descriptive statistical results related to the study
sample socio demographic variables (e.g. gender, age, occupation, region and educational attainment). Moreover, the
bivariate descriptive analysis aimed to explore the relationship between certain pairs of variables to realize the level of
citizen involvement with the PAC. All inference analysis is performed to determine whether the differences and/or
relationships between features found in the sample are extrapolated to the population, considering a confidence interval
of 95%.
4.3. Sample Characterization
Regarding the distribution of the sample by geographic zone the data can be identified reading Fig. 1, where one can
observe that the area of Portuguese Mainland with increased demand for services from what is demo nstrated by the
highest concentration of Citizen Service Points is the centre, with a percentage of 62.4%, clearly more than the sum of the
other two zones, the North with 3,3% and the South with 4.2%.
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%
70,0%
62,4%
60,0%
50,0%
40,0%
33,3%
30,0%
20,0%
10,0%
4,2%
0,0%
North
Centre
South
Geographical zone
Figure 1. Percentage of citizens by geographical area.
%
Regarding the gender of users who demand the services of the PAC (Fig. 2), it can be seen that the sample consists of
58.1% female users and 41.9% male users.
70,0%
58,1%
60,0%
50,0%
41,9%
40,0%
30,0%
20,0%
10,0%
0,0%
Male
Female
Gender
Figure 2. Percentage of citizens by gender.
%
The majority of the interviewed 41% have secondary education, including the ancient courses of Commercial and
Industrial Schools and High Schools. Interestingly the fact that 24.3% of respondents have degrees or higher education or
are attending university. Holders of basic education accounted 34.7%% of respondents (Fig. 3).
45,0%
41,0%
40,0%
34,7%
35,0%
30,0%
24,3%
25,0%
20,0%
15,0%
10,0%
5,0%
0,0%
Primary
High school
Higher education
Qualifications
Figure 3. Percentage of citizens per academic qualifications.
According to the results it can be seen a diversified distribution of age of respondents (Fig. 4). Thus, the age bracket whic h
has a higher concentration of respondents is between 31 to 40 years, 24.2%, followed by ages 41 to 50 years, with 22.1%
the echelon 51to 60 registers 17.7% and the opposite between 21 to 30 points out 16%. The age of 61-70 shows a
165
considerable percentage of users, 11.7%, and from 71 years and between 18 and 20 years are those who have a lower
value, 6.5% and 1.7% respectively.
%
Regarding the professions socio-demographic variable to be noted that the set of occupations is 65. It was given some
evidence only to those of greater numerical relevance. The number of respondents who did not answer this question was
99, which represents 32.4% of the total. The retired characterizes 10.5% with a number of 32 users, the administrative
profession is represented by 8.5% with a value of 27 users, the public official has a significance of 4.9% in demand for
services with number 15 individuals, the teacher and the domestic have the same weight in the professions, 3.3% with 10
participants. The remaining jobs are distributed with numbers and percentages indicated below.
30,0%
24,2%
25,0%
22,1%
20,0%
17,7%
16,0%
15,0%
11,7%
10,0%
6,5%
5,0%
1,7%
0,0%
Less than 20
21-30
31-40
41-50
51-60
61-70
Greater than
71
Age group
Figure 4. Percentage of citizens by age group.
5. DISCUSSION AND RESULTS INTERPRETATION
5.1. The citizen’s global satisfaction
In response to the latent variable global satisfaction of citizens with the PAC, the main hypothesis of this research study hypothesis 1, it can be said that the analysis and interpretation of the data presented in Fig. 5, it is considered that the
summary of a Mean value of 3.99 and standard deviation (SD) of 0.619, shows satisfactory results with respect to the
satisfaction of citizens using the PAC.
In fact, the idea of a generalized inability of public entities to respond promptly and appropriately to requests from citizens
seems to persist, partly attributed to the persistence of bureaucratic constraints and, in some cases, of abuse of power.
Although it has been observed an increase in the level of demand from users for services provided by PAC, there is still the
existence of a certain degree of compromise in situations less satisfactory, because users find that certain service aspects,
including the physical concentration of services and the courtesy of the staff service, compensate, to some extent, the most
unsatisfactory factors.
However the citizens of a country, as a whole, are able to identify, or at leas t feel the quality of its service delivery system,
when it is perceived and result on common benefits, derives also from this factor requirement of accessible, fair and
equitable, quality, effective management in problem solving and efficient use of public resources, which the AP responds as
it is an example the PAC model although it displays a set of standard features, seeks to adapt to characteristics of the
localities in which it operates, particularly in terms of physical facilities, type of care and communication, the results of all
the synergies is that the citizen/customer wants and recognizes the public service.
The result referred to in the previous paragraph are the outcomes of the 4 components, especially those with higher
averages, such as the component Products and Services and Global Image Organization that have a greater weight in
satisfaction, which respectively have an mean of 4.29 and 4.26, with a SD of 0.77 and 0.82.
Thus, all the analysis described above and displayed briefly in Fig. 5 all ows us to confirm the first research hypothesis.
Allows also to state that the optimum result of the satisfaction of PAC users shows that this study is indeed the result of a
166
concentrated presence attendance model with an important place in the distribution of public service. As well as the
distribution model focused public service that reveals itself a catalyst for administrative modernization at various levels:
promoting transparency and efficiency of public action, citizen orientation, promotion of technological innovation and
working methods and adopting new models of leadership.
Mean
Standard Deviation
Global Image
Organization
5,0
4,0
3,0
2,0
1,0
Products and Services
Involvement and
Participation
0,0
Accessibility
Figure 5. Summary of the Global Mean and Global Standard Deviation of Components.
Table 2 complements and enhances the overall satisfaction of citizens and translates a result that shows positively their
satisfaction, with higher values considered in its presentation. In this sense, and once again through this analysis attests to
the first hypothesis. Well, it turns out that the empirical averages are higher than the theoretical average in all
components, which shows that citizens make a very positive and supportive appreciation of the PAC. Still, the deviations
are small which shows a reasonable agreement of responses. In Global Satisfaction scores for the empirical average is
128.657 (SD=25.405) than the predicted value for the theoretical average is 105, then the values make a right answer to
the main question of this study, it was important to get a demonstration that could meet the Citizen Service Points users
satisfaction and that associated with other evidence could complete its effectiveness.
Table 2. Descriptive Results for Global Satisfaction and for Components.
Minimum
Maximum
Possible
Empirical
Mean
Standard
Deviation
Theoretical
Mean
Z score
Global Image Organization
7
35
29,418
4,847
21
1,737
Involvement
Participation
1
25
18,037
4,732
15
0,642
Accessibility
12
75
54,327
12,707
45
0,734
1
40
32,722
6,662
24
0,859
41
175
128,657
25,405
105
0,931
Global Satisfaction
and
This research was guided by the purpose of reaching values of Global Satisfaction clearly identifiers from what the
citizens think about the PAC, from these derive: positive perception of services, assertive behaviours, the notion of service
quality and above all customer satisfaction and effectiveness.
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5.2. Analysis of Existing Relationship between Components and Global Satisfaction.
In order to answer the second research hypothesis examined the correlation between the four major components that
enabled investigation of citizens' satisfaction and ascertain the weight that each one contributes to the Global Satisfaction
of citizens (Table 3). After the analysis of normality, where there was a violation of this assumption, it was necessary to
resort to the Spearman correlation coefficient to measure the strength and direction of the relationship between the
components, the closer to 1 are more correlated. All correlation coefficients are shown in Table 3 significant ( p-value
<0.001). Thus, the values shown in Table 3, it can be said that there is a strong correlation between all components,
particularly between variables Accessibility and Involvement and Participation (r=0.7076), Products and Services with
Global Image Organization (r=0.6595) and the Accessibility (r=0.6413).
Although one can observe that any of the components have strong and statistically significant correlations with the Global
Satisfaction, and the accessibility component (r=0.8908) is the largest contributor and which has a strong and direct
correlation followed by component Products and Services (r=0.805). It should be noted that as the accessibility component
that has the highest weight is the global component and that citizens are less satisfied, the PAC must begin to pay more
attention to this component so that to not go against the citizens expectations .
On the other hand the component with the lowest weight is the Global Satisfaction is the Global Image Organization
because as we have found citizens showed a very high level of satisfaction, but should not overlook this situation because
the image of an organization leads to reputation and brand and that is what is in the mind and ears of citizens. Still, this set
of information should be used to plot a strategy for quality improvement and to implement actions that actually improve
citizen satisfaction generating a greater return on Global Image Organization. Contributes to effect a good measurement
and monitoring system of citizen satisfaction, which can pass through, identification of expectation, satisfaction
measurement, preparation of quality improvement strategies and their implementation of improvements. This study
revealed that only the existence of a system of management of the effectiveness of services and satisfaction of its users
allows the sustainability of implemented measures and implement administrative modernization.
Moreover, the study also reveals that what is intended is nothing more than working with a new management culture
focused for the citizen and for the improvement of organizational performance.
Table 3. Spearman Correlation Coefficient.
Involvement and Participation
Accessibility
Global Image Organization
Global Satisfaction
Involvement and
Participation
Accessibility
Global Image
Organization
Products and
Services
Global
Satisfaction
1
0,7076
0,5011
0,5492
0,7826
1
0,5338
0,6413
0,8908
1
0,6595
0,6849
1
0,8050
1
MAIN CONCLUSIONS
The empirical study accomplished infers that at this time is not possible, just, make the legislative initi ative the only engine
of change in the public service, is the way of good management and proximity to the citizen who gives this, trust us
services and in public institutions. In addition to building a modern legal structure, implement, monitor and promote good
practices and invest in the training of human resources, it is necessary to reassess their own administrative processes and
procedures, build networks to support modernization initiatives, share knowledge and join it to new technologies, the
simplification of regulatory environments and streamlining administrative practices.
Thus, all the analysis described above and displayed briefly proves the first research hypothesis and allows also to state
that the optimum result for the satisfaction of users of PAC this study shows that this is indeed the result of a model
focused to an important place in the distribution of public service, as well as the concentrated distribution model utility
that reveals itself a catalyst for administrative modernization at various levels: promoting transparency and efficiency of
public action, citizen orientation, promotion of innovation technology and working methods and adopting new models of
leadership.
168
The results declared also that the variables related to Accessibility, Products and Services and Involvement and
Participation have the greatest weight when you want to measure PAC user Citizen Global Satisfaction.
From the research now ended, and by the results obtained, it can be said that the effectiveness of the Citizen Service
Points, spread across Portuguese mainland, determine the satisfaction of their clients and that the path for the public
administration modernization must continue to be considered as an essential part of the growth strategy for the country, a
tool that should help to improve the relationship with citizens and reduce the costs of context for all interveners. The
results are very satisfactory with citizens who use the PAC.
The present study reinforces the idea that is not new, a Brand Image for Public Administration, an image translated above
all, in a new attitude. The main objective should be a culture of service determined by the effectiveness and quality of what
is offered as a final product. The brand 'Public Administration' that would enhance its recognition should to be identical to
that of other renowned brands from the private sector, as is the case of wine, oil, shoes, textiles, among others. The concept
of branding 'Public Administration' assume a strategic dimension, not only as a way to honour the mission of public
administration, but also as a way to attract the best human resources to carry out the strategies and objectives defined in
different sectors.
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Avaliação da Qualidade dos Serviços em uma
Organização Pública Brasileira
Qualidade do Serviço. Percepção. Expectativa. Satisfação. SERVQUAL. Choque de Gestão.
Caissa Sousa, Faculdade Novos Horizontes, caissaveloso@yahoo.com.br
Cristiane A. Santos, Faculdade FEAD, alvescris09@yahoo.com.br
Danilo De O. Sampaio, Universidade Federal de Juiz de Fora / UFJF, danilo.sampaio@ufjf.edu.br
Andre F. A. Fagundes, Universidade Federal de Uberlândia / UFU, fagundesandre@yahoo.com.br
Erich V. Sousa, Pontifícia Universidade Católica de Minas Gerais / PUC-MG, erichvale@gmail.com
Abstract
A reflexão sobre a qualidade dos serviços prestados pelas organizações públicas tem se apresentado como um tema de
interesse acadêmico e de gestão, a medida que alguns setores transpõem para o campo público parâmetros de
atendimento e mensuração de seus resultados, utilizados pela gestão das organizações privadas. Nesse âmbito, o presente
trabalho tem como tema a percepção da qualidade dos serviços prestados por uma organização pública brasileira,
responsável pelo licenciamento e fiscalização de veículos e trânsito. Para atender ao objetivo formulado, a presente
pesquisa, de cunho quantitativo, utilizou o instrumento validado por Parasuraman, Zeithaml e Berry (1988), cunhado de
escala SERVQUAL, que avalia cinco dimensões: tangibilidade, confiabilidade, atendimento, segurança e empatia. Dadas as
características da organização em análise, elegeu-se as dimensões tangibilidade, atendimento e empatia para composição
da pesquisa. Os resultados permitem inferir que as dimensões “atendimento” e “empatia” apresentam resultados
satisfatórios quando comparados expectativas e percepções. Contudo, ressalta-se que a análise dos dados deve envolver
outros critérios de igual importância, tais como a análise da expectativa e da percepção em separado, uma vez que a baixa
expectativa quanto a qualidade do serviço pode incorrer em valores similares entre expectativa e percepção. Como
sugestão para estudos futuros, acredita-se ser relevante aplicar a escala em outras organizações do setor público, inclusive
em órgãos públicos que prestam o mesmo serviço em estados ou municípios distintos no território brasileiro, ou ainda em
comparação com a prestação de serviços similares em distintos países.
1 Introdução
O presente trabalho tem como tema a qualidade do atendimento aos clientes nas organizações públicas
brasileiras. De acordo com Lovelock, Wright e Hemzo (2011), as organizações, sejam estas públicas ou privadas, vêm
passando ao longo dos últimos anos por constantes mudanças na prestação de serviços. Algumas dessas mudanças se
originam do maior nível de exigência dos clientes, principalmente devido ao aumento da concorrência, globalização e
desenvolvimento tecnológico (Castells, 2007; Keen, 2009).
No que diz respeito às organizações públicas, a reflexão sobre a qualidade dos serviços prestados tem se
apresentado como um tema de interesse acadêmico e dos gestores envolvidos, a medida que alguns setores transpõem
para o campo público parâmetros de atendimento e mensuração de seus resultados, utilizados pela gestão das
organizações privadas, o que para Borges, Freitas Júnior e Oliveira (2008) pode ser feito por meio de abordagens distintas.
No caso específico do Brasil, os autores associam o processo de redemocratização, ocorrido a partir da década de
1980, como promotor de intensos movimentos de reforma do Estado, “que levou à construção de um modelo de gestão
pública capaz de atender, de modo mais adequado, às necessidades da sociedade, voltado ao interesse público e à
eficiência na coordenação da economia e dos serviços públicos” (Borges, Freitas Júnior & Oliveira, 2008, p. 81). Para os
170
autores, o movimento de reestruturação da gestão pública, visa, especial mente, a redução dos gastos públicos e o aumento
da amplitude da prestação dos serviços à população.
Como exemplo tem-se no estado de Minas Gerais, que é o segundo mais populoso do Brasil, a reforma gerencial
promovida desde 2003, conhecida como “Choque de Gestão” (Rodrigues et al., 2008). O Choque de Gestão, que apesar de
não promover um consenso sobre sua eficácia, pode, em determinados aspectos, ser considerado uma ação inovadora do
governo (Queiroz & Ckagnazaroff, 2009), ao trazer para a gestão pública modernas técnicas de gestão originárias das
organizações privadas, o que contribuiu para intensificar as cobranças sobre o quadro gerencial dessas organizações,
especialmente na eminência de uma realidade operacional mais competitiva (Paiva & Couto, 2008).
Ainda nesse preâmbulo é possível observar, sobre o prisma do consumidor ou usuário dos serviços públicos, uma
exigência maior pela prestação de serviços de melhor qualidade, o diretamente influencia a satisfação. Segundo Lovelock e
Wright (2011), a organização, seja essa pública ou privada, com ou sem fins lucrativos, deve trabalhar tendo o cliente como
o foco das suas ações, adequando-se às mudanças de perfil dos seus consumidores. Ademais, torna-se primordial que a
organização invista em criatividade, inovação e, principalmente, treinamento, para aperfeiçoar os seus processos e
oferecer serviços de melhor qualidade e que atendam de forma efetiva às necessidades do seu público alvo.
Muitas empresas públicas não possuem concorrentes em suas áreas de atuação, sendo que essa nula ou pequena
competição implica, muitas vezes, em um baixo comprometimento com a satisfação dos seus usuários, ou melhor, clientes.
Assim, não é raro se encontrar funcionários – servidores públicos – pouco preparados e motivados, o que acaba por
influenciar na insatisfação dos usuários desses serviços.
Para Gil (2009), a qualidade no atendimento começa, principalmente, dentro da própria instituição, pois os
funcionários são peças fundamentais para um bom desempenho da organização, a satisfação desses normalmente
influencia no resultado dos seus trabalhos. Nesse sentido, destaca-se, de acordo com Tachizawa (2004), que o treinamento
é um recurso comumente utilizado para aperfeiçoar o desempenho do funcionário, mas que também apresenta res ultados
motivacionais, com isto pode impactar no aumentando da produtividade do funcionário, e, por conseguinte, da
organização. Assim, de acordo com a autora, a excelência no atendimento se traduz pela busca da economia de tempo,
dinheiro e esforço do cliente, com a oferta de informações corretas, atualizadas e com o objetivo de gerar satisfação ao
usuário. Compreender as necessidades do consumidor para atendê-lo com qualidade implica, além de um tratamento
adequado, acrescentar benefícios aos serviços, atendendo ou superando as suas expectativas (Albrecht, 2002; Sebrae,
2010).
Considerando-se a relevância das organizações públicas prestarem serviços de qualidade, desenvolveu-se no
presente trabalho um estudo de caso de uma organização pública do estado de Minas Gerais/Brasil, responsável pelo
licenciamento e fiscalização de veículos e trânsito, aqui denominada de empresa Alfa. A escolha da organização e do locus
do trabalho se justificam dada a intensificação das políticas desse estado da federal brasileira, correlatas à implantação do
“Choque de Gestão”, que tem, entre outros propósitos, ofertar serviços de melhor qualidade aos usuários. Para tanto,
elaborou-se, como questão norteadora o seguinte questionamento: “como é percebida pelos usuários qualidade da
prestação dos serviços na Empresa Pública Alfa?”.
Para atender ao problema de pesquisa, elaborou-se um questionário, a partir das dimensões propostas na escala
SERVQUAL (Parasuraman, Zeithalm & Berry, 1985 & 1988), que foi aplicada a usuários Organização Pública Alfa, que teve
como objetivo principal identificar variáveis em que os usuários apresentem percepções distintas de suas expectativas em
relação aos serviços prestados pela organização, além de identificar fatores críticos, passíveis de revisão pela instituição,
no que tange à prestação do serviço.
2 Desenvolvimento teórico
2.1 Serviços, qualidade dos serviços e satisfação do consumidor
Conforme Lovelock e Wright (2003), serviços são atividades econômicas que criam valor e fornecem benefícios
aos clientes, contudo o foco não é a transferência de um bem ou produto tangível, uma vez que o serviço é intangível.
O setor de Serviços é a parte da economia de uma nação representada por serviços de todos os
tipos, incluindo os oferecidos por organização publicas e sem fins lucrativos (LOVELOCK;
WRIGHT, 2003, p. 5).
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Kotler, Hayes e Bloom (2002, p. 283), definem serviço como “uma ação, desempenho ou ato que é essencialmente
intangível e não acarreta necessariamente a propriedade do que quer que seja. Sua criação pode ou não estar vinculada a
um produto material”.
Nesse sentido, cabe-se destacar o significado de bens, que são objetos tangíveis – físicos – que garantem benefício
por meio de sua propriedade. Conforme Lovelock e Wright (2003, 2011), bens são objetos ou dispositivos físicos que
propiciam benefícios aos clientes por meio de sua propriedade ou uso. O bem pode ser demonstrado antes da compra,
podendo inclusive ser estocado. Ao contrário, os serviços são intangíveis e podem ou não acompanhar um bem, co ntudo
não são passíveis de serem estocados ou armazenados. Para os autores, serviços são atividades nas quais, geralmente, há
um envolvimento entre clientes, funcionários e prestador de serviços para o atendimento das necessidades dos clientes.
De acordo com Corrêa e Caon (2002) e Hoffman e Bateson (2003), o setor de serviços tem ocupado posição de
destaque na economia mundial, pois, além de ser responsável pela maior parcela do Produto Interno Bruto (PIB) mundial,
sua participação no PIB e o número de empregos no setor crescem a taxas mais elevadas do que nos demais setores da
economia.
No Brasil, essa tendência não é diferente, a maioria da população dedica-se a atividades relacionadas ao setor de
serviços – 54,2% da mão de obra empregada – e substancial parcela da riqueza gerada no País advém deste setor,
responsável por 58,7% do PIB do Brasil em 2012 (Boletim de Conjuntura, 2012).
Os principais fatores responsáveis por esse crescimento são de ordem político-social e tecnológica, quais sejam:
(a) urbanização – que torna indispensável alguns serviços; (b) mudanças demográficas – que apontam para o aumento do
número de crianças e/ou idosos, que, por sua vez, demandam maior variedade de serviços; (c) mudanças socioeconômicas
–aumento da participação da mulher no mercado de trabalho e pressões sobre o tempo pessoal, que criam a necessidade
de serviços domésticos prestados por terceiros; (d) avanço da sofisticação dos consumidores – que leva a necessidades
mais amplas de serviços; e (e) mudanças tecnológicas – que induzem ao aumento da qualidade dos serviços, e, ainda, à
criação de serviços completamente novos (Corrêa & Caon, 2002; Hoffman & Bateson, 2003).
Parasuraman, Zeithaml e Berry (1988), Hoffman e Bateson (2003), Lovelock e Wright (2003) e Zeithaml & Bitner
(2003) definem quatro características principais dos serviços que afetam a elaboração de programas de marketing das
organizações: (i) intangibilidade – o serviço não pode ser tocado ou sentido; (ii) inseparabilidade – a produção é
simultânea à entrega do serviço; (iii) variabilidade – a qualidade dos serviços é heterogênea; e (iv) perecibilidade – o
serviço não pode ser estocado, ou seja, ele é consumido assim que produzido.
Diferentemente de quando se comercializa um bem, para o qual se consideram basicamente os 4Ps – elementos
que compõem o mix de marketing: preço, praça, promoção e produto – a estratégia de serviços envolve o cliente com o
meio de produção, com isto pode-se incluir outros elementos nesse composto, chegando-se a formulação de 8Ps. De uma
forma mais detalhada, os 8 Ps dos serviços envolvem: (i) elementos do produto – todos os componentes do desempenho
do serviço que criam valor para os clientes; (ii) lugar e tempo – decisões gerenciais sobre quando, onde e como entregar os
serviços ao cliente; (iii) processo – estratégia de como entregar elementos dos produtos aos clientes; (iv) produtividade e
qualidade – grau de eficiência em que os insumos são transformados em produtos que agregam valor aos clientes; (v)
pessoas – são os colaboradores da empresa e os clientes, que interagem na produção do serviço; (vi) promoção e educação
– sendo a promoção um meio de comunicação para um público alvo que tende a aumentar e atrair a preferência dos
clientes para um determinado produto; (vii) evidência física – como a aparência de toda infraestrutura do fornecedor do
serviço, como estrutura física, equipamentos, quadro de funcionários, material de marketing e outras indicações visíveis
ao cliente sobre qualidade do serviço na organização; e (viii) preço e outros custos do serviço – componentes do serviço
que remetem administração aos custos incorridos pelos clientes para obterem um determinado beneficio ou serviço
(Kotler, Hayes & Bloom, 2002).
Normalmente, as empresas buscam constantes melhorias na prestação de serviços, sendo os clientes peças chave
para a implementação de mudanças nas organizações, tanto nas organizações públicas como as privadas. Quando se trata
de organizações prestadoras de serviços, o cliente (ou usuário) passa a apresentar um papel ai nda mais importante do que
o exercido em organizações de outros setores, pois ele também participa do serviço, sendo, assim, peça fundamental para
o a eficácia de seus resultados (Zeithaml & Bitner, 2003).
Conforme os mesmos autores, a expectativa do cliente sobre o serviço pode variar em três etapas: (a) serviço
desejado – representa o nível de serviço que o cliente almeja receber ou nível de serviço que o cliente acredita que poderia
estar recebendo da empresa; (b) serviço adequado – nível do serviço que o cliente aceitará em receber, pois suas
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expectativas em relação ao serviço eram altas, mas ao recebê-lo notou que atingir a sua expectativa naquele momento não
seria possível; e (c) zona de tolerância – região formada entre a variação do nível de serviço desejado e o nível de serviço
adequado, representa a margem na qual os clientes não percebem a forma como o serviço é prestado.
Pelo fato de os serviços apresentarem predominância de atributos de experiência – que podem ser avaliados pelo
consumidor somente na utilização – e credenciamento – que são difíceis de avaliar mesmo depois da utilização – sua
aquisição representa um risco maior. Desse modo, torna-se essencial a criação de diferenciais que sejam claramente
percebidos pelos consumidores (Bronze Jr. et al., 2012; Churchill Jr. & Peter, 2005; Neves & Mota, 2008).
Apesar da dificuldade de se perceber uma qualidade homogênea dos serviços, os administradores de marketing
podem manusear uma forma de buscar tal diferenciação com base na ênfase na qualidade da oferta. Existem cinco fatores
que são determinantes para o melhor desempenho dessa dimensão: confiabilidade – desempenhar o serviço exatamente
como prometido; presteza – atender com agilidade; garantia – transmitir confiança e segurança aos clientes por meio do
conhecimento e cortesia dos funcionários; empatia – dar atenção individualizada aos clientes; e aspectos tangíveis –
prover instalações físicas, equipamentos, funcionários e material de comunicação com boa aparência e funcionalidade
(Parasuraman, Zeithaml & Berry, 1988).
Empresas prestadoras de serviços podem ganhar vantagem competitiva ao executarem um serviço com qualidade
superior à dos concorrentes, superando as expectativas dos clientes, o que pode influenciá-los a procurar novamente a
mesma empresa (Hoffman & Bateson, 2003; Vieira, Troccoli & Silva, 2012).
Por se tratar de uma oferta no qual o produto principal é incontrolável, as organizações que promovem serviços
devem ter um cuidado especial com as pessoas que contratam, pois são elas que estarão em contato direto com o cliente,
influenciando, assim, a percepção deles com relação à qualidade do serviço recebido (Theodorakis et al., 2001; Troccoli &
Guerra, 2012).
Os clientes estabelecem expectativas referentes ao serviço que estão adquirindo considerando as experiências
passadas ou recomendações de terceiros. Se o serviço for além do esperado, ficará acima das expectativas, sendo o
contrário também verdade. Ao superar a expectativa do consumidor, segundo Lovelock e Wright (2003, 2011), o serv iço é
considerado de qualidade superior. Caso a qualidade do serviço seja inferior ao esperado, o cliente criará expectativas
negativas sobre a empresa que o prestou. Nesse aspecto, discutir a qualidade da prestação de um serviço envolve mais do
que simples mensurações, uma vez que essa é, em grande parte, percebida subjetivamente (Grönroos, 2009).
Ainda a respeito da qualidade, cabe ressaltar os três tipos de qualidade sugeridos por Spiller et al. (2004):
qualidade técnica, qualidade de relacionamento e qualidade intelectual. A primeira é de caráter mensurável, a qualidade
de relacionamento é impactada pela competência emocional, tanto dos funcionários da organização como do cliente, e a
terceira – qualidade intelectual – envolve questões e crenças referentes a ética e valores.
Nesse sentido, cabe ressaltar que a percepção da qualidade afetará a satisfação do consumidor, que é definida por
Oliver (1997, p. 13) como “a resposta ao contentamento do consumidor. É o julgamento de que uma característica do
produto ou serviço, ou o produto ou serviço em si, proporcionou (ou está proporcionando) um nível prazeroso de
contentamento relacionado ao consumo, incluindo níveis menores ou maiores de contentamento”.
McCarthy e Perreault (1997) corroboram com esse pensamento, ao afirmarem que a eficácia de marketing deve
ser mensurada pelo grau de satisfação do consumidor, pois esse deve ser o principal objetivo da organização. Contudo, os
autores destacam a dificuldade de se mensurar a satisfação dos consumidores.
Dessa forma, pode-se considerar que uma instituição pública, ao desempenhar um bom atendimento e com
agilidade nos serviços prestados, contribuirá para garantir a satisfação dos cidadãos que utilizam os seus serviços. Nesse
sentido, ainda destaca-se o fato que, conforme Lovelock e Wright (2011), clientes altamente satisfeitos disseminam
informações positivas da empresa e se tornam um exemplo positivo de propaganda boca-a-boca.
Assim, Spiller et al. (2004) ressaltam que para a empresa se manter competitiva é importante apresentarem altos
níveis de motivação dos seus funcionários. Para tanto, ela deve proporcionar um ambiente harmônico, com qualidade de
vida para o funcionário, pois este – chamado de cliente interno – reflete a imagem da empresa para o cliente externo.
Lovelock e Wright (2003) destacam que o papel do pessoal de linha de frente nas organizações é muito importante, ainda
mais nas organizações do setor de serviço, pois estes passam a ser parte da oferta. Portanto, a avaliação final do
consumidor/usuário do serviço, geralmente considerará aspectos que transcendem os resultados obtidos com o serviço,
como por exemplo, o atendimento prestado pelos funcionários.
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Considerando esse preâmbulo, apesar de alguns autores defenderem o atendimento (P de pessoa) como o fator
essencial para o entendimento da percepção dos consumidores relacionada à qualidade dos serviços e, por consequinte,
sua satisfação em relação a essa oferta, acredita-se ser importante também considerar outros aspectos relacionados à
avaliação do consumidor. Dessa forma, esta pesquisa optou por utilizar a escala SERVQUAL (Parasuramen, Zeithaml e
Berry, 1985 & 1988) para se compreender esses aspectos relacionados aos usuários do serviço público, aqui pesquisados.
2.2 Mensurando a qualidade dos serviços: a escala SERVQUAL
A percepção da qualidade do serviço não é um tema recente, e dado a sua importância, tem sido extensamente
estudado nas duas últimas décadas. Segundo Grönroos (2009), a maioria desses estudos se concentra na ideia de
desconfirmação, ou seja, uma comparação entre as expectativas e as experiências relativas a uma série de atributos de
qualidade. Entre as medições da percepção da qualidade dos serviços mais conhecidas, tem-se a escala SERVQUAL, que
segundo Parasuramen, Zeithaml e Berry (1988), responsáveis por sua concepção, proporciona a identificação de pontos
fortes e fracos da organização observada.
Cabe ressaltar nesse ponto que a qualidade do serviço envolve a comparação de expectativas com a performance,
ainda, ela é uma medida de quão bem um nível de serviço atende, de forma consistente, as expectativas do consumidor
com (Lewis & Booms, 1983; Silva, 2009; Troccoli & Guerra, 2012; Vieira, Troccoli & Silva, 2009).
Assim, o consumidor tende a comparar as suas expectativas relacionadas a um serviço com a percepção da
qualidade desse serviço. Ou seja, o cliente compara o que ele sente que a organização poder oferecer, que se refere às suas
expectativas, com o que ele percebe relacionado à performance dessa organização. Dessa forma, a percepção da qualidade
de serviço é vista como um nível de discrepância entre a percepção do consumidor e suas espectativas (Parasuramen,
Zeithaml & Berry, 1985; Grönroos, 1982).
De acordo com os autores, a expectativa, quando se considera a satisfação de s erviços, deve ser entendida como
previsões feitas pelos consumidores sobre o que deveria ocorrer durante a transação de aquisição do serviço e seu efetivo
uso. Assim, é possível o estabelecimento de expectativas negativas e positivas, as primeiras quando o cliente preve
situações desagradáveis relacionadas a esse consumo e a segunda relacinada a aspectos agradáveis.
A SERVQUAL foi elaborada a partir de duas seções, cada uma com 22 itens, totalizando 44 itens. Esses itens
mensuram as expectativas dos clientes em relação a empresas que prestam serviços excelentes em determinado setor de
interesse e as percepções sobre a empresa desse setor que está sendo avaliada. Utiliza-se para tanto uma escala Likert de
sete pontos, com as extremidades marcadas em “de maneira alguma essencial” e “absolutamente essencial”, para as
expectativas e “concordo plenamente” e “discordo plenamente” para as percepções (Parasuramen, Zeithaml & Berry,
1988).
A SERVQUAL proporciona a avaliação de cinco dimensões, a saber (Parasuramen, Zeithaml & Berry, 1988).





Tangíveis - em virtude da ausência de um produto físico, é possível que os clientes ou usuários de
determinado serviço observem aspectos do ambiente no qual o serviço é prestado, como: mobiliário,
equipamentos, limpeza, aparência do prestador do serviço, etc.
Confiabilidade – refere-se a confiança que o desempenho do serviço de determinada organização inspira.
Atendimento – disposição ou prontidão dos funcionários de determinado ramo de atividade ou organização
para prestar o serviço.
Segurança – se refere a competência percebida da organização que presta o serviço.
Empatia – capacidade da organização de entender as necessidades do cliente ou usuário, proporcionando a
prestação de serviços de maior qualidade percebida.
3 Aspectos Metodológicos
O presente estudo foi realizado em uma repartição pública do estado de Minas Gerais/Brasil – aqui denominada
Empresa Pública Alfa. O objetivo do estudo foi mesurar a qualidade dos serviços prestados, avaliando a diferença entre
expectativa do cliente – o que ele esperava receber – e percepção – o que os clientes sentem que receberam.
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Quanto aos fins, a pesquisa em questão é de natureza descritiva, pois pretende observar e identificar os fatos sem
propor interferências (Churchill, 1987). Nesse sentido, foi desenvolvida uma pesquisa de campo, que atendeu ao propósito
da obtenção de dados primários para o estudo descritivo, por meio da aplicação de um questionário.
A coleta de dados foi realizada por meio de questionários aplicados aos usuários dos serviços prestados pela
organzição. A amostra foi selecionada por conveniência, tendo em vista que nem todos os usuários se prontificaram a
responder o questionário, ficando, portanto, limitada à concordância dos respondentes. Para a elaboração do instrumento
de coleta de dados utilizou-se a escala SERVQUAL, que, de acordo com Hoffman et al. (2009), é uma ferramenta de
diagnóstico, que revela os pontos fortes e fracos de uma empresa com relação a qualidade do serviço prestado.
Nesta pesquisa optou-se por analisar três dimensões da qualidade testadas na escala SERVQUAL: tangibilidade,
atendimento e empatia. A limitação da escolha às três dimensões se deu por dois fatores específicos. Primeiro considerouse o tempo de resposta do questionário, uma vez que diante de um questionário extenso alguns entrevistados poderiam se
recusar a participar da pesquisa – destaca-se que a coleta de dados foi realizada na própria organização. O segundo fator,
se explica uma vez que dada a característica da organização estudada, que é a única no estado a prestar o serviço para os
cidadãos, não se justificava a aplicação e análise das dimensões confiabilidade e segurança.
As entrevistas foram realizadas no espaço físico da organização, área interna, logo após prestado o serviç o, o que
permitiu uma mensuração mais fidedigna em relação a lembrança do respectivo serviço.
4 Análise dos Dados
Foram aplicados 100 questionários para os usuários da Empresa Pública Alfa. Destes, seis foram invalidados, dado
ao fornecimento incompleto das informações. Portanto, do total de questionários aplicados, 94 foram considerados
validados para participarem da amostra.
O questionário foi composto por 31 perguntas, sendo que as sete primeiras relacionavam -se ao perfil sócio
demográfico dos usuários que utilizam os serviços. As demais questões buscavam analisar as expectativas e percepções do
cliente no atendimento. Foi realizado um pré teste, com 8 voluntários, a fim de adequar melhor as questões ao
entendimento dos entrevistados. Nessa fase constatou-se que a escala likert de 5 pontos proporcionava maior
entendimento quanto comparada a mesma escala de 7 pontos, que no caso em questão induziu a marcações
predominantes nas extremidades.
Do total de entrevistados, 61% já haviam utilizado os serviços da Organização Pública Alfa. Quanto à faixa etária,
73% dos entrevistados possuem até 34 anos de idade, 23% entre 35 e 54 anos e 3% acima de 55 anos. Com relação a
renda média familiar, 43 indivíduos, perfazendo um total de 46% da amostra, possuem renda média familiar até U$765,0;
24 pessoas (26%) possuem renda entre U$766,0 e U$1.530,0; 11 pessoas (12%) possuem renda entre U$1.531,0 e
U$2.550,0; 11 pessoas (12%) possuem renda acima de U$2.551,0 e 5 pessoas (5%) se recusaram a responder a pergunta,
ou disseram não saber a renda familiar.
Do total de entrevistados 57% foram do sexo masculino, a maior parte (54%) solteiros ou casados (36%). Quanto
à escolaridade 63% possuem até o ensino médio, 28% possuem ensino superior (completo ou em curso e 9% são pós
graduados (strictu ou latu sensu).
A segunda parte do questionário, composta pelas questões de 8 a 31, avaliou a expectativa e a percepção dos
usuários em relação ao serviço e a organização em questão, considerando-se as dimensões: tangibilidade, atendimento e
empatia, da escala SERVQUAL. Foram consideradas quatro questões para cada dimensão para expectativas e quatro para
percepções.
As médias das expectativas dos entrevistados para as expectativas variaram entre 3,46 a 3,96, sendo as questões
Q8 (empresas públicas que prestam serviços excelentes têm equipamentos modernos), Q9 (as instalações das empresas
públicas que prestam serviços excelentes são visualmente atrativas) e Q11 (materiais relacionados com o serviço, como
formulários, folders ou panfletos são atrativos) as que apresentaram as menores médias.
Na dimensão tangível, quando perguntados sobre a infraestrutura e meios de comunicação de organizações
públicas que prestam serviços de qualidade, considerando as cinco possíveis opções de resposta, a maio ria dos
entrevistados optou pela posição de neutralidade – nem discorda e nem concorda – que tal atributo corresponda a
empresas públicas que prestam excelentes serviços. Contudo, 53% dos respondentes apontam que esse item influencia
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positivamente em organizações que prestam serviços de qualidade excelente – 32% concordam totalmente e 21%
concordam parcialmente.
Na perspectiva da expectativa para o atendimento nas organizações públicas que prestam serviços excelentes
notou-se que a maioria dos entrevistados (50%) consideram fortemente – escolheram a opção concorda totalmente – que
o atendimento interfere na prestação de serviços de qualidade. Ademais, nota-se que outros 17% concordam parcialmente
com esse pensamento, mesmo percentual dos entrevistados que apresentaram opinião de neutralidade.
Ainda analisando-se a expectativa dos clientes, agora considerando a última dimensão pesquisada, “Empatia”,
notou-se que a maioria dos clientes, mais uma vez, aponta concordância em relação à importância desta na expectativa do
serviço prestado ser de qualidade – 31% afirmaram concordar totalmente e 23% parcialmente. Contudo, essa dimensão,
dentro da análise de expectativa, foi o que apresentou maior percentual de discordância 22% – em parcelas iguais para os
que discordam parcialmente e os que discordam totalmente.
Finalizada a análise da expectativa, passa-se a considerar o nível da percepção dos clientes sobre os serviços
prestados pela Empresa Pública Alfa. As médias variaram de 3,36, na Q21 (As instalações “da empresa Alfa” são
visualmente atrativas) a 4,19 na Q25 (Funcionários “da empresa Alfa” prestam prontamente o serviço aos clientes).
A dimensão tangível, relativa a percepção dos entrevistados com relação aos serviços prestados pela organização,
foi superior à expectativa, sendo que 44% dos entrevistados concordam totalmente com a afirmativa e 17% concordam
parcialmente. Também foi possível identificar um nível de neutralidade menor que o da expectativa, para o mesmo critério
de avaliação. Enquanto na percepção teve-se 24% dos entrevistados apontando que nem concordam e nem discordam, na
expectativa esse percentual chegou a 34%.
A percepção do atendimento na Empresa Pública Alfa também foi superior à expectativa que os entrevistados
tinham, sendo que essa dimensão obteve 52% das marcações em concordo totalmente, seguido de 21% que afirmaram
concordar parcialmente. Contudo, notou-se um leve aumento da opinião neutra, pois 18% dos entrevistados escolheram
essa opção ao analisar a percepção enquanto 17% haviam a escolhido na expectativa referente ao serviço.
Conforme demonstrado na Figura 6, a maioria dos respondentes considera que a empatia influencia na qualidade
do serviço da empresa pesquisada – 45% concordam totalmente e 23% parcialmente. Esse índice também é superior à
expectativa que esses entrevistados tinham referente ao serviço, portanto, novamente tiveram sua expectativa excedida.
Considerando que a escala SERVQUAL é uma ferramenta utilizada para mensurar o grau de satisfação do cliente
na empresa, comparando o resultado da sua percepção com o resultado da sua expectativa, faz-se possível inferir que se
essa subtração (expectativa menos percepção) for negativa, a organização precisa melhorar os seus serviços, pois a
expectativa do cliente referente ao serviço é maior que sua real percepção da qualidade do serviço prestado. Por outro
lado, caso esse resultado seja positivo, pode-se concluir que a qualidade do serviço prestado superou a expectativa do
cliente, possibilitando assim a sua satisfação.
Nesse sentido, são apresentados na tabela 1 os resultados da diferença entre percepção e expectativas. Esses
sugerem que os serviços prestados pela Organização Pública Alfa superaram as expectativas dos clientes, pois para a
maioria das comparações o resultado foi positivo. Nota-se que apenas em dois quesitos a percepção foi inferior à
percepção, mesmo assim apresentando resultados muito próximos. Esses itens foram referentes à dimensão tangível, e
correspondem às instalações e aos meios de comunicação serem atrativos na empresa pesquisada.
Tabela 1 – Diferença entre expectativa e percepção dos entrevistados
Q= P-E
Q20-Q8
Q21-Q9
Q22-Q10
Q23-Q11
Q24-Q12
Q25-Q13
Q26-Q14
Q27-Q15
Média
0,21
-0,10
0,27
-0,02
0,18
0,26
0,37
0,26
Desvio padrão
1,36
1,54
1,41
1,37
1,36
1,50
1,44
1,48
176
Q28-Q16
Q29-Q17
Q30-Q18
Q31-Q19
0,44
0,14
0,20
0,27
1,45
1,51
1,33
1,28
5 Considerações Finais
As mudanças econômicas e sociais dos últimos anos, em conjunto com o aumento do acesso às informações e, por
consequência, a maior conhecimento dos direitos e possibilidades de questionamentos por parte dos consumidores e
usuários de serviços públicos impactaram no aumento do nível de exigência por parte desses indivíduos. Ademais, o
desenvolvimento econômico do Brasil possibilitou a criação de novas empresas no país, inclusive atraindo organizações
oriundas de outras nações, o que, acredita-se também apresente impactos no nível de exigência dos clientes ou usuários de
serviços. Tal fato se daria mesmo que a organização não possua concorrentes diretos, pois de alguma forma, existe a
possibilidade de comparação com outras organizações, de segmentos distintos. Por conseguinte, o nível de
competitividade entre as organizações também aumentou. Dessa forma, tem-se de um lado o consumidor mais exigente e
informado, de outro lado um número maior de opções e maior competitividade das organizações para atender esse
consumidor. Assim, para conquistar, ou até mesmo manter seus mercados, as organizações precisam se preparar para
atender o consumidor agregando valor aos seus produtos e serviços, buscando assim superar a expectativas de seus
clientes. Apesar de possuírem particularidades que as diferem das demais organizações, as empresas do setor público
também se incluem nessa realidade, pois mesmo que algumas delas não tenham concorrentes diretos, os seus usuários
tornaram-se mais informados e exigentes sobre os seus direitos. (Lovelock & Wright, 2011; 2011; Urdan & Urdan, 2006).
Contudo, ainda deve-se considerar outro aspecto da economia que impacta nessa realidade: a tendência do
crescimento do setor de serviços em países cuja economia apresenta um desenvolvimento satisfatório. Com isso, as
organizações necessitam estarem ainda mais atentas à forma na qual seus consumidores são atendidos, quais suas
expectativas com relação aos serviços contratados e, principalmente, qual a percepção deles após a execução do serviço.
Nesse preâmbulo delimitou-se o objetivo desse estudo, que é analisar como os clientes de uma empresa pública
avaliam os serviços dessa organização. Destaca-se que a opção por uma organização pública deve-se, principalmente, pelo
fato desse tipo de estudo, que corresponde a avaliação de um serviço por parte do seu usuário, ser pouco pesquisado em
organizações desse tipo, especialmente no Brasil. Ademais, a organização estudada desenvolveu nos últimos anos uma
série de ações objetivando melhorar os seus serviços, algumas dessas motivadas pelo chamado “Choque de Gestão”,
implementado no estado de Minas Gerais/Brasil, a partir do ano de 2003. Nesse sentido acredita-se ser importante
analisar como os usuários desses serviços o percebem em relação a sua qualidade, sendo que esse pode representar para a
organização um parâmetro de êxito acerca das ações implementadas.
No estudo utilizou-se a escala SERVQUAL (Parasuraman, Zeithalm & Berry, 1988) para se mensurar tanto a
expectativa dos usuários do serviço como a percepção acerca da qualidade dos serviços prestados. Os resultados podem
ser considerados positivos para a organização pesquisada, uma vez que na maioria dos quesitos pesquisados – que
envolveram as dimensões tangibilidade, atendimento e empatia da escala supracitada – os clientes perceberam o serviço
realizado como superior às suas expectativas.
Os únicos itens que apresentaram percepção de qualidade do serviço inferior à expectativa foram dois dos quatro
avaliados na dimensão tangibilidade, correspondentes às instalações físicas e aos meios de comunicação da organização.
Contudo, esse resultado, de certa forma, era esperado, pois ele corrobora com o fato da organização possuir equipamentos
envelhecidos e estar localizada em um prédio antigo, que não oferece conforto aos usuários. Todavia, nota-se que a
diferença entre a expectativa e a percepção foi relativamente pequena nesses dois casos. Mas, mesmo assim, esse resultado
sugere a necessidade da organização investir nos seus aspectos tangíveis, mesmo sendo predominantemente uma
empresa prestadora de serviços. Esse investimento pode ser tanto na forma de atualização dos seus equipamentos, como
também na reforma predial e aperfeiçoamento dos seus canais de comunicação com os clientes, incluindo nesse aspecto as
campanhas promocionais que a organização desenvolve.
Ao se analisar as dimensões em separado, nota-se que tanto o atendimento como a empatia apresentaram
resultados próximos. Nos dois casos, os quatro itens que avaliavam cada dimensão apresentaram como resultado a
177
percepção que o serviço foi de melhor qualidade do que o esperado. O mesmo ocorreu com a terceira dimensão, q ue
analisa os aspectos tangíveis, contudo com resultados menos contundentes e inferiores aos das outras duas dimensões.
Esse resultado sugere que a “qualidade do atendimento”, que envolve fatores como: se os clientes são informados
corretamente sobre quando os seus pedidos serão executados, se os funcionários prestam prontamente os serviços, a
disposição em ajudar dos funcionários e se os funcionários respondem às solicitações dos clientes, apresentam resultados
satisfatórios. Em análise similar, a “empatia”, cujos principais fatores avaliados são: se a organização oferece atenção
individualizada aos seus clientes, a adequação dos horários de atendimento, o comprometimento com o atendimento ao
cliente, e, o atendimento as necessidades específicas, também apresentaram resultados satisfatórios.
Contudo, apesar de se observar mensuradores positivos para as variáveis, a organização continua passível de
melhoras no atendimento. Cabe aqui ressaltar que o fato de os usuários apresentarem níveis similares entre expectativa e
percepção pode-se dar devido à baixa expectativa para o setor de atividade analisado – organizações públicas. Tal fato
ensejaria estudos para avaliarem se as expectativas para o setor de atividade são similares ou inferiores às formuladas
para setores correlatos, sejam esses públicos ou privados.
Acredita-se que esta pesquisa possa colaborar no sentido de ressaltar a importância de se analisar a expectativa e
a efetiva percepção acerca da qualidade de um serviço. Ademais, tem-se a contribuição de se desenvolver um estudo
referente à opinião de consumidores de serviços públicos, área relativamente pouco pesquisada academicamente no
Brasil, pois a maioria dos estudos referentes ao comportamento do consumidor e sua satisfação versam sobre
organizações privadas. Ainda, acredita-se que o entendimento dos anseios de uma população sobre os serviços prestados
pelos órgãos governamentais possa contribuir com a elaboração de políticas públicas mais consistentes e assertivas,
capazes de melhor atender as expectativas da população que utiliza esses serviços.
Ao se considerar as contribuições gerenciais, uma vez que neste estudo se pesquisou uma organização de serviço
real, pode-se apontar algumas implicações práticas. Entre elas, a necessidade da organização aprimorar as questões
referentes à dimensão tangibilidade, especificamente a instalação física e os meios de comunicação. Esses dois aspectos
são, normalmente, negligenciados pelas organizações públicas brasileiras. Nesse caso específico, a instutição tem co mo
principal veículo de comunicação o seu endereço eletrônico na internet, que apresenta um design antiquado e
desatualizado, ademais, é difícil encontrar informações específicas, mesmo as mais procuradas pelos usuários do serviço.
O outro aspecto, relacionado ao espaço físico, é materializado por um edífício que não foi construído com o objetivo de
atender ao público, tendo apenas passado por adaptações para essa tarefa. Tal fato, aliado ao aspecto antiquado e mal
cuidado do local, acabam por impactar negatividamente na percepção do usuário, levando-o a não ter suas expectativas
atendidas de forma assertiva.
Por fim, o estudo sugere a importância de se buscar entender qual a percepção da qualidade de serviços não
apenas em empresas privadas, com fins lucrativos, mas também em órgãos públicos, que tem como objetivo primordial
atender às demandas dos cidadãos. Nesse sentido, passa a ser importante para os gestores dessas instituições utilizarem
de ferramentas capazes de mensurar a opinião dos seus clientes, como a SERVQUAL, empregada nesse estudo. Acredita-se
que tal ação pode possibilitar um melhor entendimento das necessidades e anseios dos usuários desses serviços,
permitindo assim que os gestores responsáveis por esse atendimento aprimorem os serviços pres tados para que a
qualidade deles seja percebida como superior.
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Territorial Marketing: a key concept for the
planning and management of cities
Marketing Territorial, Marketing das Cidades, Sustentabilidade, Stakeholders, Marca
Teresa Aragonez, IPAM – The Marketing School, teresaaragonez@ gmail.com
Gonçalo Caetano Alves, IPAM – The Marketing School, caetano.alves@ipam.pt
Resumo
As estratégias de desenvolvimento das cidades e dos territórios têm seguido ciclos eleitorais, que em Portugal são de
quatro anos. Na elaboração dos planos estratégicos, o Marketing Territorial tem ganho destaque, sem que no entanto
houvesse fundamentação académica para isso, e sem que as estratégias fossem implementadas ou sequer concretizadas
em planos estratégicos com vista à sustentabilidade das cidades.
A motivação para este artigo prende-se com a necessidade de compreender quais as tendências da investigação académica
sobre o tema, com vista ao desenvolvimento de um modelo conceptual e à identificação de áreas promissoras de
investigação futura, construção e implementação eficaz de estratégias de Marketing Territorial.
No presente artigo faz-se uma revisão da literatura sobre Marketing Territorial recorrendo a artigos científicos, bem como
a apresentação de uma proposta de modelo conceptual com vista à elaboração de uma estratégia que indica o caminho do
sucesso das cidades que se querem sustentáveis.
Abstract
The development strategies of cities and territories have followed election cycles, which are of four years in Portugal. In
the elaboration of strategic plans, Territorial Marketing has gained prominence, however, without academic substantiation
for that and without strategies being implemented or even materialized in strategic plans aiming the sustainability of
cities.
The motivation of this paper relates with the need to understand the tendencies of academic research on Territorial
Marketing, to develop a conceptual model on it and the future of sustainable cities, identifying promising areas for future
research, construction and effective implementation of Territorial Marketing strategies.
In the present paper, we review the literature on Territorial Marketing, using scientific articles, as well as the presentati on
of a conceptual model proposal, pursuing the formulation of a strategy which indicates the path to success of cities
wanting to be sustainable.
1.
Introdução
Actualmente a globalização e crescente competição entre os territórios, sejam cidades ou países, bem como a tendência de
stakeholders cada vez mais informados e exigentes fazem com que as cidades enfrentem novos desafios. É imperioso gerir
e planear a cidade de uma forma racional, promovendo e valorizando o território.
O Marketing Territorial assume, neste campo, especial relevo não só na elaboração das estratégias, mas também na
identificação das necessidades, desejos e interesses dos diferentes stakeholders, de forma a conseguir manter a cidade
competitiva, sem nunca perder de vista a qualidade de vida dos indivíduos e dos lugares.
181
Almeida (2004) diz-nos que é atribuído às Câmaras Municipais e demais instituições públicas um papel fundamental na
medida em que deles depende a criação de infra-estruturas físicas e sociais, políticas fiscais e monetárias, bem como as
políticas de investimento, industrialização, entre outras, que podem ou não agradar aos diferentes públicos-alvo.
Esta relevância é justificada pelo facto das autarquias servirem de intermediário entre os potenciais investidores e os
vários serviços autárquicos. Ou seja, os dirigentes políticos devem entender o Marketing Territorial como uma ferramenta
de enorme valor e vantagem competitiva para o planeamento e desenvolvimento de estratégias das cidades, assim como
para uma gestão urbana que se pretende mais sustentável.
No modelo que apresentamos, entende-se o Marketing Territorial como fundamental no planeamento, desenvolvimento e
gestão das cidades, em interacção com o marketing estratégico tendo como finalidade promover o desenvolvimento de
uma cidade sustentável, sempre com uma visão a longo prazo, pensando a cidade como um produto ou serviço para a qual
se ambiciona sucesso e competitividade.
Os principais beneficiários dos resultados são: a) investigadores que pretendam testar empiricamente aspectos
relacionados com o Marketing Territorial, b) políticos que pretendam desenvolver e aplicar estratégias de Marketing
Territorial, c) gestores de entidades públicas e d) agentes turísticos.
O presente artigo está estruturado por secções, sendo que na primeira é feita a apresentação dos principais objectivos do
estudo, destacando-se a importância do marketing territorial no planeamento e gestão das cidades e elaboração de planos
estratégicos. Na segunda secção é feita uma revisão da literatura com a perspectiva histórica e crítica do conceito de
marketing territorial, apresentando-se diferentes teorias. Na terceira procura-se destacar a importância da estratégia de
marketing territorial aplicada às cidades e na quarta secção procede-se à apresentação de uma proposta de modelo
conceptual à luz do Marketing Territorial. Por último, na quinta secção, apresentam-se as principais conclusões, bem como
as limitações do estudo e as considerações futuras.
2. Revisão da Literatura
2.1. Marketing Territorial – Origem e autores de referência
O conceito de Marketing Territorial foi introduzido por Kotler, Haider e Rein (1993), que apresentam uma nova
abordagem designada de Marketing Estratégico de Lugares, comparando, pela primeira vez na literatura, as cidades a um
produto. Seguiram-se os estudos e artigos de Kanter (1995), que afirma que as cidades de sucesso estão a revelar-se
centros de excelência em três C’s (conceitos, competências e conexões) e de Porter (1990 e 1995) que fala na importância
dos clusters como forma de diferenciação competitiva e da necessidade de funcionamento em rede, com o objectivo de
reforçar ligações e criar condições para a competitividade dos países.
Kotler et al (1993) defendem que o seu objectivo é o de desenhar uma comunidade que satisfaça as necessidades dos
diversos grupos de utilizadores que os autores identificam e definem como sendo são quatro grupos compostos pelos
residentes e trabalhadores, visitantes e turistas, negócios e indústria e mercados de exportação desse mesmo local. Nesta
investigação teremos como ponto de partida esta definição de público-alvo e stakeholders (residentes e trabalhadores;
visitantes e turistas; negócios e industria e mercados exportadores).
Para Kotler et al (1993) a cidade deve conquistar o apoio dos munícipes, dos líderes e das instituições, de forma a torná-los
acolhedores e receptivos aos novos desafios, bem com às novas empresas e ou investimentos que possam ser atraídos,
devendo apostar numa diferenciação e englobar a elaboração de uma estratégia de marketing adequada às características
específicas do local.
As capacidades e potencialidades das cidades não ocorrem pela sua localização. Quem o defende é Kanter (1995) na sua
publicação “World Class – Thriving Locally in the Global Economy”, que apresenta como fundamental a capacidade de
operar os três activos intangíveis – conceitos, competências e conexões. Para a autora, as cidades competitivas são aquelas
que dominam os três C’s sendo estas as formas de poder da economia global.
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Tabela 1 – Modelo dos três C’S de Kanter
Componente do
modelo
Definição
Implicações/contributos para o
marketing territorial
Conceitos
Inovadores
Ambiente inovador para as empresas,
cria valor para os consumidores
Competências
Aplicabilidade
das
ideias
inovadoras, trabalho qualificado
Valor acrescentado e excelência na
mão-de-obra qualificada
Conexões
Criar conexões para as redes
globais
Elo de ligação/relação com o mundo
externo e economia global, pode
funcionar como parceiro
Fonte: adaptado de Kanter, (1995)
Numa primeira referência de competição entre países e as suas vantagens competitivas, Porter (1990), na sua publicação
“The competitive advantage of nations” investiga quais os atributos de um país que contribuem para uma vantagem
competitiva relativamente às empresas que se estabelecem nesse território. Porter (1990) afirma que nenhum país é
competitivo em todas as áreas de negócio, ou seja, cada nação é competitiva apenas em determinadas áreas, as quais são as
características específicas que determinam essa vantagem. O autor defende que existem quatro atributos que um país
deverá ter de forma a moldar o ambiente no qual as suas empresas competem e que são vitais para promover ou impedir a
criação de vantagem competitiva. Os atributos são as condições de factores (são criados e não herdados), as condições da
procura (a exigência dos consumidores), a relação entre as indústrias (o trabalho em rede), e a rivalidade, estrutura e
estratégia das empresas (competição aumenta a produção e grau de inovação).
2.2. Desenvolvimento de Políticas de Marketing
A evolução ao nível económico e social resultou no desenvolvimento de um novo conceito de marketing que orienta
estratégias no sentido da satisfação das necessidades e desejos dos consumidores, mas que exige uma maior preocupação
das sociedades modernas em diversos aspectos, nomeadamente na actuação ambiental e responsabilidade social das
organizações (Salgado e Leitão, 2011).
Ramos (2003) afirma que um planeamento estratégico de marketing proporciona às cidades instrumentos e
oportunidades para estarem à altura do desafio, quer ao nível da atracção como da fixação. Para o autor, no actual
ambiente competitivo o Marketing Territorial funciona como uma mais -valia ao nível da divulgação de uma imagem de
forma a atingir o público-alvo identificado, defendendo a necessidade de uma nova abordagem em termos de planeamento
das cidades, sendo exigido um reposicionamento dos espaços urbanos de forma a conseguirem sistemas territoriais
competitivos por efeitos de proximidade geográfica, bem como através de parcerias ao nível social, político, institucional
ou económico.
De acordo com Rodríguez (2006) o marketing das cidades surgiu como resposta a uma problemática, comum a várias
cidades, que se prende com o facto de depois de diversos anos de esplendor, com registos de enorme crescimento,
registar-se uma situação de estagnação. Esse forte crescimento, registado em décadas anteriores, pode ser caracterizado
pela falta de planeamento, dando origem a cidades desorganizadas, com reduzidos ou inexistentes espaços verdes e
diversos congestionamentos de trânsito, tendo em conta os traçados das vias públicas.
Garcia (2010) apresenta a distinção entre as cidades tradicionais - que se preocupam com a expansão periférica, a qual se
manifesta no crescimento de diversos tipos de edifícios na procura de bons acessos e infra-estruturas para atrair mais
população – e as cidades modernas – geridas para satisfazer as necessidades dos clientes e utentes, empresas e
investidores públicos e privados, ou visitantes, proporcionando uma maior interacção entre sector público e privado.
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Tabela 2 – Cidades Tradicionais vs Cidades Modernas
Cidades Tradicionais
Centrado na expansão da cidade
Administração controla os serviços
Utentes
Base económica no sector Industrial
Intervenções da responsabilidade exclusiva do
sector público
Fonte: adaptado de Garcia (2010)
Cidades Inovadoras
Centrado na qualidade de vida
Administração promove os serviços
Cidadãos Clientes
Base económica diversificada nos serviços
Intervenções em colaboração com o sector
público e privado
Precedo, Orosa e Míguez (2010) entendem que na gestão e planificação das cidades modernas, estamos perante a
existência de um novo paradigma no qual identificam os cidadãos como elementos estratégicos. Segundo estes autores,
depois da etapa industrial, na qual o sector público assumia todas as responsabilidades e intervenções, seguiu-se a etapa
pós-industrial, com a existência de parcerias entre o sector público e privado, e actualmente, o novo paradigma que aponta
a importância de devolver aos cidadãos a participação mais activa na planificação das cidades.
2.3. O poder local nas estratégias de marketing territorial
Cada vez mais as cidades são conhecidas pelo que conseguem desenvolver e proporcionar ou, mais correctamente, pelas
capacidades virtuais que são garantidas através das campanhas de marketing ou de representações que se vão divulgando
(Peixoto, 2000). O desenvolvimento de uma política de marketing de um determinado lugar tem quatro importantes
mercados alvo: visitantes e turistas, residentes e trabalhadores, negócios e indústrias e mercados de exportação (Almeida,
2004 e Kotler et al, 1993). Aliás, os residentes e trabalhadores, são a razão de ser da existência, em termos de organizações
governamentais, das Juntas de Freguesia e das Câmaras Municipais (Almeida, 2004). Almeida (2004) defende ainda que as
Câmaras Municipais desempenham, em todo este processo, um papel de destaque na qualidade de intermediários entre os
potenciais investidores e os vários serviços autárquicos.
Para Carvalho (2011) os cinco grupos de receitas que mais contribuem para o orçamento Municipal são: a) Impostos
municipais; b) Transferências; c) Taxas e Licenças; d) Receitas de gestão patrimonial e e) Recurso ao endividamento.
Segundo o mesmo autor, no ano de 2009, no seu conjunto, os cinco grupos foram responsáveis por mais de 90% do total
das receitas dos municípios.
Gaio e Gouveia (2007) salientam que a crescente integração de questões relacionadas com o marketing territorial na
agenda regional acontece pelo reconhecimento do valor das técnicas de marketing e promoção que podem ser uma maisvalia para as regiões. Albuquerque, Martins e Costa (2010) entendem que os governos desempenham um papel fulcral no
processo de elaboração e implementação de políticas, sendo por isso necessári o da parte dos decisores políticos um
esforço de forma a assegurar a participação dos diferentes actores.
Realçando a importância das Autarquias no processo de elaboração e implementação das estratégias de Marketing
Territorial, Albuquerque et al (2010) afirmam que os municípios são as entidades locais mais próximas da realidade de
cada região, estando mais ciente das necessidades e problemas das populações e querendo por isso o melhor
desenvolvimento com o objectivo de melhorar a qualidade de vida dos seus munícipes.
Alves (2008) defende que tendo em conta a importância do planeamento de marketing territorial, para criar factores de
diferenciação das cidades (regiões, países, cidades), é importante destacar o papel do governo, seja ao nível central ou
local, pois, no seu entender ambos têm um papel de destaque ao nível de três paradigmas: a) a valorização do que são os
atributos específicos do território; b) a garantia da coerência dinâmica organizacional do tecido empresarial e c) o
fortalecimento das capacidades de inovação do tecido empresarial. O mesmo autor entende assim que estão identificados
os novos desafios da política regional, sendo por isso necessário avançar para a acção, tomando medidas para que as
instituições e organizações públicas e privadas, nacionais e regionais, possam potenciar e contribuir para a
competitividade e produtividade das empresas. Esta situação irá proporcionar o mesmo efeito às regiões e até mesmo do
país.
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Todavia, Alves (2008) alerta para um facto relevante, afirmando que este objectivo só será alcançável com o
desenvolvimento e implementação de políticas inovadoras, apoiadas em redes de conhecimento. Lourenço (2011) defende
que a gestão e a promoção do território foram, desde sempre, um dos principais focos da organização s ocial e política,
principalmente pela forte influência no modo de vida e pelo impacto no crescimento e desenvolvimento dos locais.
Contudo, e apesar do pensamento consensual da importância das marcas no mundo empresarial, Correia e Brito (2011)
afirmam que é recente a preocupação dos municípios portugueses desenvolverem o seu trabalho com uma orientação para
o mercado.
Para a construção de uma marca é necessária consistência bem como o desenvolvimento de um trabalho de gestão feito de
forma continuada. Um trabalho que Correia e Brito (2011) entendem não ser de fácil execução para as Autarquias uma vez
que a maioria delineia as estratégias de acordo com os ciclos políticos, ou mudanças de executivo, situação que dificulta
um dos principais objectivos do Marketing Territorial que é a diferenciação dos locais. Com efeito, afirmam que para que
este objectivo seja alcançado é imperioso que o factor diferenciação assente em valores que consigam gerar o
envolvimento de todos os agentes territoriais.
Para os autores, as marcas que não tenham definido os seus valores de uma forma clara e exacta, não vão alcançar um
relacionamento eficaz com os turistas. Com efeito, defendem ser indispensável que as cidades ou regiões saibam
identificar quais os valores que vão integrar a sua identidade que será depois divulgada de forma a criar uma determinada
imagem desse mesmo local junto dos stakeholders.
Carvalho (2011) identifica a flexibilidade das organizações municipais, como um factor determinante para a governação
local. A complexidade de uma organização é caracterizada pela diversidade e necessidade de estabelecer, de forma
constante, múltiplas relações com diversas entidades quer com os cidadãos, na qual a sedimentação cultural e peso da
história local agudizam os vectores já de si habitualmente complexos.
2.4. Stakeholders activos na elaboração da estratégia
Elizagarate (2007) partilha da opinião de Kotler et al (1993), defendendo a necessidade de ir mais além da promoção do
espaço, procurando entender as necessidades dos clientes, dos cidadãos, das empresas, dos investidores públicos e
privados, dos visitantes, porque isso permite fomentar uma maior interacção entre o poder local e o sector privado, de
forma a conseguir unir sinergias na defesa do interesse público e da comunidade.
Para Precedo et al (2010), os actuais instrumentos da planificação estratégica mostram-se insuficientes para poder
enfrentar os novos desafios das cidades. Os autores defendem ser necessário procurar ferramentas inovadoras, nas quais
atribuem ao marketing das cidades especial destaque, pois afirmam que o posicionamento externo constitui um ponto
importante na internacionalização das economias urbanas neste novo cenário global.
Defendendo a mesma ideia da necessidade da participação activa dos diferentes stakeholders, Cidrais (2006) afirma que
uma estratégia valiosa deverá assentar no desenvolvimento de modelos participativos e auto-consciencializadores, que
visem a promoção do bem-estar e desenvolvimento sustentável. Para Cidrais (2006) o envolvimento de todos os
stakeholders permite a construção de uma base de envolvimento que possibilita aos territórios mais vantagens e poder
pois quando as organizações e as pessoas, com especial destaque para os seus líderes, criam mecanismos de construção e
aproveitamento da capacidade criativa, envolvendo todos os parceiros, reforçam os laços de relacionamento, as redes e as
trocas.
Metaxas (2010) argumenta que a atracção de investimentos estrangeiros directos constitui, actualmente, um dos
principais objectivos dos países ou cidades. Na nova economia global, Metaxas (2010) afirma que o papel do planeamento
estratégico, bem como do marketing e branding local assumem cada vez mais relevância, defendendo, todavia, que se trata
de processos diferentes que abrangem diferentes metodologias e técnicas.
2.5. A competitividade das cidades e dos territórios
Na actual economia, para que as cidades e países consigam ser competitivas e desta forma conseguirem atrair as empresas
e o capital, têm que orientar a sua estratégia na união dos factores tradicionais, como os recursos naturais e a mão-deobra, com os factores decorrentes da globalização, o conhecimento e a inovação (Alves, 2008). O autor defende que da
união dos factores nasce o chamado paradigma de competitividade dos territórios e que estes devem apostar no que têm
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em específico, que não possa ser facilmente transferível, abdicando da tradicional diferenciação territorial do mercado
assente no factor crítico de distância.
Alves (2008) refere que a competitividade assume, cada vez mais, um papel determinante para o futuro dos territórios,
sendo que essa competitividade se alterou em quatro vertentes: a) competitividade acontece à escala global; b)
competitividade entre empresas proporciona o aumento da inovação; c) inovação é fruto da dinâmica da informação
cruzada entre o conhecimento codificado e conhecimento técnico e d) globalização dos mercados bem como o aumento da
concorrência contribuem para o aumento da capacidade organizacional do território e potencia a dinâm ica da região.
Elizaragate (2006) afirma que a origem do conceito de competitividade das cidades não é urbano, na medida em que o seu
início reside no paradigma da competitividade empresarial e das nações defendido por Porter, sendo por isso cada vez
mais importante que as cidades identifiquem os seus concorrentes, que efectuem análise da sua vantagem competitiva, de
forma a conseguirem aumentar o crescimento, a rentabilidade económica e social.
Na opinião de Cidrais (2006) o desenvolvimento da estratégia de competitividade assenta em quatro linhas de orientação
como a focalização em áreas específicas de oferta; a construção de uma rede de contactos e de aprendizagem; a
governação ágil e distribuída segundo os princípios da subsidiariedade, parceria, cidadania e autonomia empreendedora e
a construção e desenvolvimento de capital social. De acordo com o mesmo autor, esta abordagem pressupõe uma sincronia
estratégica de carácter territorial que é alcançada, habitualmente, pelo chamado projecto territorial ou projecto cidade, um
sistema de diagnóstico, negociação e planeamento que assenta na instituição de combinações entre os diversos actores.
2.6. A marca das cidades
Kotler e Armstrong (2007) e Brito (2008) defendem que as marcas são mais do que nomes e símbol os. Para os autores as
marcas são um elemento fundamental nas relações com os consumidores, que representam as percepções e os
sentimentos destes para com o produto e o seu desempenho, ou seja, é tudo o que o produto significa para os
consumidores.
Os autores afirmam que o valor real da marca forte é exactamente o poder que esta tem em conquistar a preferência e a
fidelidade dos consumidores. Kotler e Armstrong (2007) e Nilson (1998) estão de acordo ao afirmarem que uma marca
competitiva é uma marca de sucesso, sendo também a base para o desenvolvimento de sólidos e lucrativos
relacionamentos com o cliente.
Para Martins (2007) o trunfo das marcas de sucessos está na base da associação da essência do produto com a emoção
existente no imaginário colectivo. Para o autor, todos os produtos ou serviços são relacionados a um espirito natural,
resultado da associação entre imagens e sentimentos presentes no inconsciente do consumidor. Existe uma predisposição
natural dos consumidores em atribuir mais valor ao que os agrada. Ou seja, se as marcas forem compostas por elementos
emotivos adequados ao seu posicionamento, os restantes factores que envolvem a marca vão agregar uma maior
percepção do seu valor. O autor conclui que falar em marcas é falar em emoção, na medida em que os produtos são
racionais mas as marcas evocam sentimentos e ligações que, em determinadas situações, levam o consumidor a optar por
determinado produto ou serviço sem ter grande explicação para a sua escolha.
Na mesma linha de pensamento, Atkin (2008) afirma que existem poucas emoções mais fortes do que a necessidade de
pertencer e de criar um sentido, sendo que cabe às marcas explorar essa necessidade. Barbosa (2006) afirma que a
estratégia de marca para uma cidade implica um plano, de longo prazo, obedecendo a uma visão estratégica para o futuro
dessa mesma cidade. Para o autor a visão deve ser traduzida em objectivos e acções que devem ser comunicadas aos
diferentes stakeholders e segmentos de mercado identificados pela cidade.
Para Lencastre e Côrte-Real (2007) a marca assenta em três pilares entendidos como fundamentais que são: o pilar da
identidade (engloba os sinais de identidade da marca, tal como são entendidos na definição Jurídica, e das marcas que a ele
estão associadas), o pilar do objecto (engloba as diferentes ofertas da marca, a organização e acções de marketing que as
suportam) e o pilar do mercado (engloba os públicos-alvo e as suas diferentes respostas à marca).
Margarida (2000) defende que a marca permite que o consumidor possa comunicar quem é ou quem pretende ser, bem
como a possibilidade de se definir a si próprio, ocupando assim a função de personalização. Para o autor a marca permite
ao consumidor retirar prazer das suas escolhas, adquirindo uma função lúdica. O autor conclui que se o valor da marca for
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elevado consegue exercer, de forma mais eficiente, as suas funções tornando-se numa situação mais vantajosa para o
consumidor.
2.7. A identidade da marca das cidades
A identidade de uma marca concede-lhe sentido, finalidade e significado, quem o afirma é Aaker (2007, p.74), que defende
ainda que “a identidade de uma marca é um conjunto exclusivo de associações com a marca que o estratega de marcas
ambiciona criar ou manter. Essas associações representam aquilo que a marca pretende realizar e implicam uma promessa
aos clientes feita pelos membros da organização”.
Para o autor a identidade da marca deve ajudar a estabelecer um relacionamento entre a marca e o cliente, através de uma
proposta de valor que deverá envolver benefícios funcionais, emocionais e de auto-expressão. De acordo com Aaker
(2007) a identidade de uma marca consiste em 12 dimensões organizadas sob as quatro perspectiva de marca como
produto, como organização, como pessoa e como símbolo.
Aaker (2007) afirma que a estrutura da identidade da marca inclui uma identidade central e outra expandida, sendo a
identidade central a essência atemporal da marca, ou seja, é mais viável de se manter constante à medida que a marca se
desloca para novos mercados e produtos. Por sua vez a identidade expansiva inclui os elementos da identidade da marca,
que se encontram organizados em agrupamentos que se querem coesos e significativos, para desta forma proporcionarem
a textura e integridade da marca. O autor salienta ainda que a posição da marca é a fracção da identidade e da proposta de
valor, sendo que esta deve ser comunicada activamente aos consumidores apresentando uma vantagem em relação às suas
concorrentes.
Tabela 3 – Imagem, identidade e posição da marca
Imagem da marca
Como é actualmente percebida pelo público
Identidade da marca
Como se pretende que a marca seja percebida
A parcela da identidade de valor da marca que
deve ser comunicada aos consumidores
Posição da marca
Fonte: adaptado de Aaker (2007)
2.8. O valor da marca das cidades
O valor da marca começa, segundo Rodríguez (2006) a ser desenvolvido na década de 80, dando assim início a duas
correntes distintas entre si, sendo que uma defende a vertente mais financeira, dando especial destaque ao valor para a
empresa ou organização possuidora da marca, e outra de natureza mais focalizada nos clientes, que analisa o impacto nas
suas atitudes e comportamentos.
Nesta investigação partimos do pressuposto que irá para além do valor financeiro e seguimos a definição de Keller (1998)
que sustenta que o valor da marca é o efeito diferencial que o conhecimento desta tem sobre a resposta do consumidor à
marca em causa. Ou seja, a marca é possuidora de valor quando o consumidor reage de modo diferente pelo facto de estar
na presença desta.
Para Aaker (2007) a proposta de valor de uma marca é uma afirmação dos benefícios funcionais, emocionais e de auto expressão que são oferecidos pela marca e que proporcionam valor ao cliente. Essa proposta de valor deve encaminhar
para um relacionamento marca – cliente e impulsionar as decisões de escolha.
Fetscherin (2010) defende que um país ou região com uma marca forte pode ter como vantagem o aumento das
exportações, bem como conseguir atrair o turismo e o investimento, afirmando que se relevou um ponto fundamental para
o desenvolvimento sustentável de um país desenvolvido. Trata-se de um processo complexo que envolve vários níveis,
componentes e áreas de actuação, sendo por isso indispensável a existência de um envolvimento colectivo nesta mes ma
gestão.
Ashworth e Kavaratzis (2009) afirmam que a marca das cidades é cada vez mais um trunfo importante para o
desenvolvimento e uma ferramenta eficaz para as cidades se destacarem das demais concorrentes e reforçarem o seu
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posicionamento. Contudo, estes autores referem que na prática existe uma confusão entre uma estratégia de marca e o
design de um novo logotipo ou slogan, que é apenas um dos seus componentes.
Brito (2008) defende que existem três fontes de valor da marca que merecem destaque:
Tabela 4 – Fontes de valor da marca
Notoriedade
Depende do nível de presença o espírito do cliente, resultando em larga medida do sentimento de
familiaridade que proporciona
Imagem
Ou conjunto de “percepções que o consumidor faz dela (Keller, 1993, p.3, como c itado por Brito,
2008, p. 6). A força da marca depende quer da quantidade quer da qualidade de informação sobre
a marca que é dada ao cliente
Fidelidade ou
Acontece com a atitude de ligação. Mais do que repetir a compra, o cliente revela uma atitude
Envolvimento
positiva em relação a ela.
Fonte: Adaptado de Brito (2008)
Gaio e Gouveia (2007) referem que através da marca territorial pode-se fomentar a atractividade, a conquista de confiança
e a credibilidade da cidade, posicionando-a e contribuindo para uma dinâmica de desenvolvimento. Face aos novos
paradigmas de competitividade, as cidades sem capacidades para se posicionarem no mercado e enfrentar os novos
desafios entram em declínio, saindo vitorioso o território que aplicar correctamente as ferramentas de marketing.
Garcia (2009) adianta que as cidades promovem a imagem a partir do marketing territorial com o objectivo de despertar
interesse do cliente para que os visitem. Segundo a autora, as cidades podem criar necessidades sociais a partir da
indústria cultural e da capacidade para definir imagens virtuais na mente dos consumidores, levando os diferentes púbicos
alvos a interessar-se pelo seu espaço e atraídos por essa imagem criada decidir-se a visitar o território, defendendo que os
produtos territoriais são imagens percebidas pelos actores e agentes sociais, que são posteriormente difundidos, sem
esquecer o contributo das novas tecnologias de comunicação e informação e que o marketing territorial é uma ferramenta
extremamente valiosa.
2.9. O posicionamento da marca das cidades
Reis e Trout (2009, p. 16) afirmam que o posicionamento não é o que é feito com o produto mas sim o que se consegue
fazer com a mente do potencial cliente, ou seja, a forma como conseguimos posicionar o produto na mente do c onsumidor.
Os autores defendem que este “é o primeiro sistema de pensamento que dá conta da dificuldade de se fazer ouvir na
sociedade super comunicativa”. Kotler e Armstrong (2007) vão mais longe e defendem que as marcas fortes vão além do
posicionamento por atributos ou benefícios uma vez que se posicionam sobre fortes crenças e valores. Para os autores, as
marcas incorporam uma forte carga emocional e envolvem os seus clientes a um nível mais profundo e emocional e no
processo de posicionamento da marca deve ser definida uma missão e uma visão do que deve ser e fazer, ou seja, do que
pretende representar. Os autores entendem que a marca é a promessa do fornecimento consistente de um conjunto
específico de características, benefícios, serviços e experiências. Esta promessa da marca deve ser simples e honesta, ou
seja, não deve prometer o impossível.
Caetano e Rasquilha (2010) entendem que o posicionamento corresponde à definição da forma como a marca pretende ser
percepcionada na mente do consumidor, sendo para isso necessário: a) Temos o objectivo de satisfazer as suas
necessidades; b) Pretendemos superar as suas expectativas e c) Faremos melhor que as alternativas existentes.
Para Rodríguez (2006) o posicionamento da cidade segue um processo idêntico à da imagem, sendo por isso necessário ter
em linha de conta as posições de outras cidades concorrentes. Ou seja, deve partir-se da análise do actual posicionamento,
e uma vez conhecido esse posicionamento importa identificar igualmente o posicionamento ideal dos diferentes
stakeholders, decidindo assim como se deve situar a cidade.
Simões e Carneiro (2010) defendem que o processo de posicionamento das cidades tem como objectivo distinguir, na
mente dos potenciais consumidores, um local em relação aos seus concorrentes, fazendo assim com que o “nosso” local
seja reconhecido como superior aos seus concorrentes.
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3. Proposta de modelo conceptual
Este modelo pretende ser uma ferramenta de trabalho para todos os dirigentes locais, no sentido da criação de um
documento explicativo e de orientação estratégica, de forma a evitar que as cidades se desenvolvam apenas de acordo com
os ciclos eleitorais (que em Portugal são de quatro anos). Pretende-se que seja um documento de trabalho, com
aplicabilidade pratica mas suportado pelos contributos académicos, devendo contudo ir sofrendo as alterações necessárias
de acordo com a envolvência e possíveis aspectos externos. Entende-se que este modelo é um contributo para o trabalho
de planeamento e desenvolvimento das cidades, numa junção de várias teorias e conceitos, de forma a guiar e orientar o
crescimento e desenvolvimento das cidades sustentáveis e competitivas.
Com um competente planeamento e a elaboração prévia de uma estratégia, as cidades que adoptarem este modelo
conceptual (que poderá ter adaptado à realidade local) tenderá a ser mais sustentável e competitiva com as demais rivais,
proporcionando maior qualidade de vida aos seus cidadãos, bem como criar melhores condições às empresas e negócios
atraindo novos públicos-alvo de acordo com os objectivos delineados na estratégia. Entendemos que este modelo pode
contribuir para uma gestão e utilização mais eficiente e racional dos recursos e potencialidades dos lugares, trazendo uma
mais-valia no âmbito do Marketing Territorial e às cidades que elaborarem uma estratégia ou documento de trabalho
tendo como base este modelo.
Figura 1 - Proposta de Modelo Conceptual
Fonte: elaboração própria
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Tabela 5 - Explicação do modelo
Componente do modelo
Definição
Autores que referem esta
componente
Marketing Territorial e
Estratégico aplicado aos
países, Cidades e Lugares
Planear e desenvolver estratégias de marketing
tornando as cidades competitivas e apelativas de
forma a satisfazer as necessidades dos públicos-alvo,
numa linha de orientação das cidades sustentáveis e
de sucesso
Koltler et al (1993), Kanter (1995),
Garcia, 2010), Porter (1990 e
1995), Almeida (2004), Elizagarate
(2007), Metaxas (2010) e Garcia
(2009)
Definição de:
Entender a cidade, conceitos bem definidos e
posicionamento e imagem concretos que se pretende
transmitir
(Kotler et al, 1993), Kanter (1995),
Garcia (2010), Precedo et al
(2010), Garcia (2009), Elizagarate
(2007),
Visão;
Missão;
Posicionamento;
Identidade; Valores
Plano
cidade
estratégico
da
Documento de trabalho das autarquias com as linhas
orientadoras
de
acção
na
vertente
do
desenvolvimento e planeamento da cidade
o
Estratégias delineadas e orientadas para o mercado
das cidades
Kotler et al (1993), Garcia (2010),
Kanter (1995),
Cidade como produto ou
serviço
Sem esquecer a qualidade de vida, ser trabalhada
como um produto a vender ou serviço a
disponibilizar
Garcia (2010), Precedo
(2010), Kotler et al (1993)
Satisfação
das
necessidades do mercado
e públicos-alvo
Criar condições para que as necessidades do
mercado e públicos-alvo (residentes e trabalhadores,
visitantes e turistas, negócios e indústria e mercados
de exportação) sejam satisfeitas de forma garantir e
atrair públicos.
Elizagarate (2007), Kotler et al
(1993), Garcia (2010),
Definição dos mercados
alvo estratégicos para a
cidade
Identificar, com base nas vantagens competitiva das
cidades quais os mercados e públicos-alvo (são
residentes e trabalhadores, visitantes e turistas,
negócios e indústria e mercados de exportação) para
os quais devemos trabalhar
Porter (1990 e 1995), Kanter
(1995),
Almeida
(2004),
Fetscherin
(2010),
Elizagarate
(2007)
Marketing
externo
Acções de marketing para atrair novos públicos mas
também manter para os que já estão na cidade
(residentes e trabalhadores, visitantes e turistas,
negócios e indústria e mercados de exportação)
Orientação
mercado
para
interno
e
Cidade
competitiva,
economicamente
sustentável e conceituada
Cidade moderna, sustentável e competitiva
et
al
(Elizagarate, 2007), Kanter (1995),
Porter (1990 e 1995), Precedo et
al (2010)
4. Conclusões
É necessário que os governos (Regionais e Nacionais) entendam a importância da correcta elaboração de um plano
estratégico com base na ferramenta de marketing territorial bem como do desenvolvimento de um projecto para uma
cidade, que se quer vencedora e competitiva, não poder incluir unicamente a promoção do espaço em concreto.
É essencial criar condições para que as empresas, trabalhadores e demais stakeholders se apaixonem pela cidade e
queiram viver, trabalhar ou investir nela, gerando assim uma vantagem competitiva em relação às demais concorrentes.
Porém, não se pode cair no erro de apenas idealizar uma estratégia. Ao desenvolver as estratégias para uma cidade é
necessário perceber essa mesma cidade, recorrendo a uma análise e avaliação de todas as suas características, não só a
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nível económico mas também demográficas e culturais. É necessário fazer uma análise SWOT, definindo bem as suas
ameaças e oportunidades e os pontos fracos e fortes. É preciso tratar a cidade como um produto que precisa de ser
desejado pelos consumidores.
O marketing das cidades deve apostar numa diferenciação e englobar a elaboração de uma estratégia de marketing
adequada às características específicas do lugar, o estabelecimento de incentivos que possam manter os actuais e captar
novos compradores e utilizadores, trocando os produtos e serviços da cidade de um modo eficiente e acessível e
promovendo os valores e a imagem da cidade, salientando as suas vantagens distintivas aos potenciais Stakeholders.
Na vertente financeira, é preciso ter uma abordagem das cidades de uma forma mais racional, destacando-se a necessidade
de adoptar estratégias economicamente racionais eliminando os custos incomportáveis de abordagens anteriores. O actual
endividamento das autarquias portuguesas aponta exactamente nessa necessidade, pelo que a elaboração ou actualização
dos existentes planos estratégicos das cidades podem funcionar como uma mais -valia para os territórios no sentido de ser
tornarem mais competitivos e sustentáveis.
Pensar a cidade como um produto para o qual é ambicionado o sucesso e competitividade é, no nosso entender, a forma
mais correcta de, num mundo cada vez mais competitivo e global, criar e gerir cidades vencedoras e sustentáveis. O
Marketing territorial é uma poderosa ferramenta de trabalho que deverá estar presente nas estratégias de
desenvolvimento e planeamento das cidades, sejam elas grandes aglomerados populacionais ou “pequenas maravilhas” da
natureza. Identificar as vantagens competitivas e apostar naquelas que mais se destacam e maior valor podem trazer à
cidade, será a estratégia correcta para gerir e desenvolver cidades modernas que se querem competitivas e sustentáveis.
As principais limitações deste artigo prendem-se com as suas características apenas teóricas bem como a limitada revisão
que deverá ser mais consistente nas áreas específicas que estão a ser estudadas, especialmente no que diz respeito ao
Marketing Territorial. Como recomendações para futuros estudos deixamos a necessidade de incluir mais autores, bem
como a possibilidade de testar o modelo numa cidade, e a realização de um estudo quantitativo.
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Session 6
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Evaluating the use of Avatars as Sociability
Factor in e-commerce
Avatars, Online Consumer Behavior, E-Commerce, Trust, Credibility, Sociability and Human Warmth
António Alves, University of Minho, amalves@alumni.uminho.pt
Ana Maria Soares, University of Minho, amsoares@eeg.uminho.pt
Abstract
The lack of sociability and warmth of human interaction coupled with the lack of consumer trust has been identified as one
of the main obstacles to the widespread adoption of e-commerce. Such lack of trust can be largely attributed to the absence
of personal face-to-face interactions between the consumer and the seller. Personal interactions provide human contact
and create opportunities for the development of personal services in contrast with the impersonal e-commerce interaction
between the consumer and a Web server. Several studies have shown that the inclusion of social stimuli in electronic
stores increases perceived trust and credibility. These factors have a decisive impact on the adoption of purchase
behaviors and consumer loyalty.
This paper addresses the introduction of avatars (virtual characters with human characteristics created by technology) as
sociability and human warmth stimuli in e-commerce and its implications for purchase and repurchase intention. We
report an experiment with online stores with three levels of sociability. Overall, findings show that the introduction of
avatars at EC sites, particularly photo-realistic avatars, has visible practical effects in sociability and human warmth
perceptions, in trust towards the seller and in the credibility of the online store.
1. Introduction
The lack of consumer trust, particularly in the B2C segment, has been recognized as one of the greatest barriers for the
development of electronic commerce (Aldiri, Hobbs, & Qahwaji, 2010). This lack of trust can be largely attributed to the
absence of personal face-to-face interactions between the consumer and the seller. In traditional commerce, trust between
parties builds in these interactions (Aldiri et al, 2010) which constitute one of its main comparative advantages. Such
interactions provide human contact and create opportunities for the development of personal services in contrast with the
impersonal e-commerce interaction between the consumer and a Web server (Otto & Chung, 2001). E-commerce
operators have already realized that human contact is important in order to establish meaningful relationships with their
customers (Qiu & Benbasat, 2005).
The literature suggests that the use of avatars (virtual characters with human characteristics created by technology) can
increase the persuasiveness of online sales channels (Wang, Baker, Wagner, & Wakefield, 2007) by increasing their
credibility, perceived trust, and allowing for social stimuli and human warmth in online stores interactions. Consequently
avatars lead to greater consumer satisfaction with the seller, a better attitude toward the product and increased purchase
intent (Holzwarth, Janiszewski, & Neuman, 2006).
The technology now available allows equipping a website with animated 3D avatars with high level of interactivity and
multiple graphic options. Avatars can be built from real human beings images, endowed with synthesized voice through
text to speech technology (TTS), with real human voice and even with Artificial Intelligence (AI) based on a knowledge
library with tens of thousands of topics that can be tailored to the specific online store specifications. Such technology
allows consumers to engage in a two-way conversation with the virtual character and find answers in a more intuitive and
enjoyable manner.
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In this paper, we report an experiment designed to test the impact of avatars. We compared an online store with a photo
realistic avatar endowed with real human voice, and an online store with a naturalistic avatar endowed with TTS voice,
with an online store without an avatar.
This paper is organized as follows: In the following section, we conduct a literature review about the introduction of social
factors and the use of avatars in e-commerce (E.C.). Section three presents the empirical study describing methodological
considerations and study design. Subsequently, we present the findings of the experiment. The results are discussed on
section five. Finally, we present the study’s conclusions including the implications for management, limitations and further
research directions.
2. Literature Review and hypothesis development
2.1. The introduction of social factors and the use of avatars in e-commerce
According to the literature, despite its consistent and continued growth, e-commerce is limited by the fact that many
online stores tend to produce little social or emotional appeal and can be perceived as impersonal and empty of human
warmth (Hassanein & Head, 2005/6; Holzwarth et al, 2006). Inducing the feeling of warmth and sociability on a website
can be achieved by providing means for a real interaction with other human beings (through virtual communities, forums,
chats, etc.) or stimulating imagined interactions through socially rich texts, images, custom greetings, audio and video
featuring human beings acting intelligently (Hassanein & Head, 2005/6; 2007).
Using avatars to provide consumer information about products on sale has been suggested in recent years in order to
overcome the impersonal nature, lack of sociability and lack of human warmth of internet-based retail-sale (Holzwarth et
al, 2006). The word 'avatar' has its origins in the hindu Sanskrit and in this context refers to a graphical representation
which can be animated by means of computer technology (Op. cit).
Nowak and Rauth (2005) conducted a study to evaluate avatars in a static context in terms of their androgyny,
anthropomorphism, credibility, homophilia, attraction and the possibility of being chosen during an interaction. Their
results sustain that the responses to the images were consistent with the Uncertainty Reduction Theory. According to this
theory, in an interaction, the first objective of an individual is to reduce uncertainty about the person with whom he is
interacting. The findings of this study demonstrated that the anthropomorphism as well as the masculinity or femininity of
avatars (the absence of androgyny) reduces uncertainty about the characteristics of the character represented by the
avatar and influences people's perceptions about it. Anthropomorphic avatars were perceived as more attractive, credible
and susceptible of being chosen by people to represent them. Female avatars were considered by the participants in the
study as more attractive than male ones. The majority preferred avatars of their own gender (Nowak & Rauth, 2005). The
results of this study contrast, in part, with previous studies that supported the idea that anthropomorphism would be the
biggest predictor of credibility of an avatar (Koda, 1996 and Wexelblat, 1997 apud Nowak and Rauth, 2005). However, the
study of Nowak and Rauth (2005) concluded that the most influential factor is the degree of masculinity or femininity of
the avatar (the absence of androgyny). Furthermore, results showed that images with strong features of masculinity or
femininity were perceived as more anthropomorphic than images without strong indication of gender.
In any case, since avatars are used to represent the seller in a online shop, consumers will use the information about
virtual agent similarly to their experiences in natural non-mediated environments; However, contrary to face to face
interactions, in a computer mediated environment, the characteristics of an avatar can be tailored to promote any kind of
impressions and reactions (Nowak & Rauth, 2005).
The potential roles avatars can play in e-commerce sites were studied in depth by McGoldrick, Keeling and Beatty (2008).
Three main roles were acknowledged by consumers: (1) the role of helper that solves problems; (2) the friendly, sociable,
the receptionist who welcomes; and (3) the personal shop assistant, the recommendation agent. The results also indicate
that women are more likely to appreciate the interaction of avatars in any of their roles; that the preference for avatars is
inversely proportional to the age of consumers and the more experienced the consumer, the more he is likely to dismiss
virtual seller help (McGoldrick et al, 2008). These relationships between age, gender and experience with online shop, as
well as the consumer involvement with the product (Holzwarth et al, 2006) and the type of the product (Hassanein &
Head, 2005/2006), suggest that avatars can play a relevant role in online consumer segmentation (McGoldrick et al,
2008). The very nature of the avatar and its level of anthropomorphism can be adapted to individual preferences. A
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potentially huge database (A.I.) can inform the avatar about the actions to be taken up rivaling with the best offline
relationship marketing systems (McGoldrick et al, 2008).
Given the persuasion ability of avatars in online sales channels (Holzwarth et al 2006), Wang, Baker, Wagner and
Wakefield, (2007) focused on the influence of avatars’ social stimuli on the affection of consumers and on the value
attributed to purchases. These authors showed that some of the characteristics of consumer-seller interaction in a
traditional bricks and mortar store can be induced in a website using social stimuli that are inherent to the avatars. Their
studies show that the induced social stimuli can improve the perception of the sociability of the website. This effect has an
indirect, but critical, influence on perceptions of the hedonic value and utility assigned by the consumer to the online store.
Consequently it influences the continued adoption of the web store by the consumer (Wang et al, 2007). This confirms
what was also previously suggested by Monsuwé, Dellaert and Ruyter (2004).
A recent study by Wang and Fodness (2010) revealed that consumers’ perceptions of sociability, the emotional answers,
and the trust toward the online seller, are more positive when an avatar with the capacity to be likeable and to create
empathy with the consumer is present on the online store. If avatars are absent, or the avatar is not able to generate
affection and empathy with the consumer, those perceptions are less positive.
This result, associated with the findings of Nowak and Rauth (2005) and Nowak, Hamilton, and Hammond (2008) suggests
that drawing photo-realistic likeable avatars which are able to generate empathy with the consumers can, in fact, generate
positive emotions and induce consumer trust toward the online trader. Trust in commerce/e-commerce is normally
defined as the conviction for acting in accordance with the recommendations of the seller and/or website (Cugelman,
Thelwall, & Dawes, 2009). It is the willingness to depend on the goodwill of the trader; and to become vulnerable to the
seller (McKnight, Choudhury & Kacmar, 2002). Trust has been vastly reported as the first mediating factor between
consumer perceptions and intention to buy online (Cugelman et al, 2009). Thus the following hypotheses are proposed:
H1 - Avatars based on real images of human beings and with real human voice induce trust towards the online seller.
H1a –Trust towards the seller increases the purchase and repurchase intention.
Website credibility has also been identified as an important dimension of online shopping. Credibility has been defined as
the psychological judgment that the content, the message and its aims are credible (Cugelman et al, 2009). Although
credibility and trust are sometimes used interchangeably, these constructs should not be considered synonymous. Trust
refers to a set of beliefs, dispositions and behaviors associated with the acceptance of risk and vulnerability (Rieh &
Danielson, 2007, p. 6). Credibility, which precedes Trust (Cugelman et al, 2009), refers to a perceived quality of a source,
media or message, may or may not result in associated trusting behaviors (Rieh & Danielson, 2007, p. 6).
Credibility is also intimately tied to persuasion. But these are also distinct constructs. Persuasion is an outcome of
credibility and can be operationalized, for instance, by message acceptance (Rieh & Danielson, 2007). Source credibility is
a critical determinant of message acceptance (Petty & Cacioppo, 1981 apud Rieh & Danielson, 2007).
Two studies carried out simultaneously by Holzwarth et al. (2006) suggest that the use of avatars to provide informati on
about products increases sale channel effectiveness based on the Internet. The first study showed that adding an avatar to
an online sale channel increases customer satisfaction with the dealer, and has a positive impact in attitude towards the
product and purchase intention. The second study showed that the manipulation of the avatar’s attractiveness and
expertise makes it more persuasive to certain consumer segments depending on their involvement with the product. More
attractive avatars are more effective for all levels of product involvement; more expert avatars are more effective only for
high levels of product involved customers. The second study also showed that the avatar attractiveness influences the
perception of comparability of the avatar with the person with which it interacts. This comparability mediates the
influence of the avatar attractiveness on consumer’s persuasion; Similarly, avatar expertise influences the perception of
credibility and this mediates the influence of avatar’s expertise in consumer’s persuasion (Holzwarth et al, 2006; Culgman
et al 2009). Therefore, the following hypotheses are proposed:
H2 - Avatars based on images of real human beings and with real voice induce credibility in the online store.
H2a - Credibility in online store increases the purchase and repurchase intention.
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2.2 Social Presence and Social Response Theories
In the seventies of the last century John Short, Ederyn Williams and Bruce Christie suggested in their work "The Social
Psychology of Telecommunications" that different media allow for different levels of social presence and sensitive human
contact (Short, Williams and Christie, 1976 apud Wang & Fodness, 2010). The social response theory, for its part, argues
that the use of human characteristics such as language, voice, interactivity and social role in computers can enhance users'
social responses despite the fact that users are aware that machines are not human beings (Steuer and Nass, 1993; Reeves
& Nass, 1996 apud Wang and Fodness, 2010).
Although there are no humans on the Internet, these two theories, sustain that avatars can induce feelings of sociability on
consumers during their interactions with the computer (Wang and Fodness, 2010). This implies that avatars exert a social
influence similar to the one sellers have on brick-and-mortar stores. In a laboratory experiment carried out by Qiu and
Benbasat (2009), results showed that the use of recommendation agents in humanoid form communicating via voice in
online stores strongly influenced perceptions of social presence among consumers. In return, consumers’ feelings of trust,
perception of fun and, finally, the intention to adopt the virtual agent as a decision aid increased.
Another experiment developed by Wang and Fodness (2010) with a primitive form of avatar, displaying limited
interaction and low emotional expression (without body movements and facial expression) proved that it was able to
boost consumer trust and affection when the avatar was perceived as friendly and could mimic the pers onal interactions
in a human-computer environment thus inducing a greater perception of sociability in online consumers. In short:
consumers reflexively apply the rules associated with social interactions with real salespeople to avatars when they have
the ability to be kind (Wang & Fodness, 2010).
The use of avatars can increase the persuasiveness of online sales channels (Wang et al, 2007) increasing their credibility,
perceived trust and introducing social stimuli and human warmth in interactions. Furthermore, it improves consumer
satisfaction with the dealer and the attitude toward the product and increases purchase intention (Holzwarth et al, 2006).
Hence, the following hypotheses are proposed:
H3 - Avatars based on images of real human beings with real voice induce the development of relationships with greater
sociability and human warmth (social presence) similar to those normally achieved in traditional commerce.
H3a – Sociability and human warmth (social presence) increase the intention to purchase and repurchase in the online
store.
2.3. Conceptual model
Image 1: Conceptual Model
Adapted from Wang and Fodness (2010)
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2.3.1. Variable description
Sociability Level - It is the differentiating factor in our model. It consists of three increasing levels of sociability. The first
level corresponds to a reduced level of sociability and human warmth stimuli. It consists of an online store displaying only
photographs of the products and descriptive texts. The second level corresponds to an online store equipped with a
naturalist avatar endowed with TTS voice that presents the company and describes the products. The third level of
sociability corresponds to an online store similar to the previous one, but equipped with a photo -realistic avatar endowed
with previously recorded real human voice.
Trust - Mediator variable. It refers to the conviction to act in accordance with the recommendations of the seller and/or
website (Cugelman et al, 2009). The willingness to depend on the goodwill of the trader and become vulnerable in relation
to the seller (McKnight et al, 2002).
Credibility - Mediator variable. What makes someone or something worthy to be believed. The concept of credibility is
complex and multidimensional and carries with it many subliminal dimensions such as reliability, expertise, dynamism,
competence and goodwill (Rieh & Danielson, 2007). On a website, the credibility is above all the psychological judgment
that the content, the message and its purposes are credible (Cugelman et al, 2009).
Sociability and Human Warmth - Mediator variable. Perception of social presence and sensitive human contact through
the medium (Wang & Fodness, 2010). Perception of social stimuli as a courtesy, kindness, empathy and sympathy.
Purchase and Repurchase intention - Dependent variable. This variable is the core of our study which captures the
change of behavior by the presence of avatars in online stores.
3. Research Design
This study followed an experimental design. This approach was adopted since only an experiment can ensure the
maximum possible control of external variables such as the influence of design and degree of sophistication of the website,
the influence of the type of product, price and the always important factor of influence that is the brand.
3.1. Experimental plan
The experimental plan was organized on the form of three groups (X1; X2; X3) with control group and post-test. This
experimental design, although simple, is robust both in terms of internal validity and in terms of external validity.
X1 – In this experience the participants visited a simulated online store (Shop 1) without any kind of avatar. This online
shop presented reduced sociability factors such as photographs and texts. This group worked as the control group
(Sociability Level 1).
X 2- In this experience the participants visited a simulated online store (Shop 2) containing a purely virtual (naturalistic)
avatar with TTS voice (Sociability Level 2).
X 3- In this experience the participants visited a simulated online store (Shop 3) displaying an avatar based on the image of
a real human being (photo-realistic with real voice) representing the trader or one employee (Sociability Level 3).
After the treatment (experiments with the three different simulated online shops), the post-test was administrated
(questionnaire) to all groups.
3.2. Online Stores
The three online stores had a technically simple design as similar as possible to a real online store. The chosen products
for sale were sports shoes since these are shopping goods which do not require a very complex decision making process.
There was an entry page where all products were visible (six in total). For each product there was also a specific page
where the product was described in detail. The Web Design of the three stores was exactly the same with the only
exception of the introduction of the avatar in stores 2 and 3.
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The first store (Shop 1) was a simple interface showing only photographs and text descriptions of the products. The
second store (Shop 2) included a naturalist female avatar with synthesized TTS voice. On the entry page the avatar
presented the store and the company. On the specific product pages the avatar verbalized the products’ features and
characteristics; the third store (Shop 3) was in all similar to Shop 2. The only difference was that it was equipped with a
photo realistic avatar (based on a real human being) and endowed with pre recorded real human voice.
The Web Design of these interfaces was deliberately kept simple to minimize its influence on the attitudes of the subjects
of the experiment. The information transmitted orally by avatars in Shops 2 and 3 were exactly the same as the text of
Store 1 and product prices were the same.
In accordance with the findings of Nowak and Rauth (2005), female avatars were chosen to appear in Online Shops
because they are perceived by consumers to be more attractive.
Before entering into the main page of the stores, subjects were presented with a set of pages with instructions about the
experiment and about technical features of the websites to ensure perfect navigation. The technology used for the
construction of the avatars was provided by Oddcast Inc 4. and is available at SitePal 5 Website.
3.3 Questionnaire
A questionnaire was developed and presented to each of the subjects after the experiment. This questionnaire included
seven-points scales to measure "Trust" (5 items rating scale, adapted from the study of Bart, Shankar, Sultan and Urban,
2005, "Credibility" (4 items rating scale, adapted from the study of Cugelman et al, 2009), " Sociability and human warmth"
(9 items rating scale, adapted from Wang and Fodness, 2010) and "Purchase and Repurchase Intention" (3 items rating
scale, also adapted from the study of Wang and Fodness,2010).
3.4 Sample
The subjects of the experiment were recruited online through social media (Facebook and Linkedin) and Electronic Mail.
Participants were randomly assigned to the three groups and subsequently they were contacted by email and social media
websites with instructions to carry out the experiment and to answer the questionnaire.
The restriction of the recruitment process to the Internet aimed to control external variables like 'technology acceptance
level' in order to ensure all subjects recruited were skilled in Internet Technologies.
98 subjects have participated in the experiment. Each of the three groups comprised a sample above thirty elements in
order to preserve the external validity of the experiment: In the X1 experiment (Control group) have parti cipated 34
subjects, 31 in X2 and 33 in X3.
4. Findings
4.1 Sample Profile
The majority of the subjects were college graduates (57%), 23% had completed secondary education and 13% had
incomplete secondary education. Finally 7% of the subjects had only pri mary education. About gender, 54% of the subjects
were male and 46% were female. The most represented age group was the 25 - 34 years old with 32% of the sample,
followed by the group of 35 - 44 with 31%. The group 15 - 24 years old had 20% of the subjects. Finally, elements between
45 – 54 years old accomplished 13% of the total and between 55 - 64 about 5%. There were no subjects over the age of 64.
In what concerns occupation, 23% of the participants were students, 16% belonged to the professional -managerial group
and 15% were Industrial/Skilled workers.
Regarding usage of internet, 86% of the subjects reported having already purchased at least once on the Internet, 56%
reported purchasing on the Internet several times a year and 13% reported doing it ev ery month. Online banking
operations are performed by 60% of the subjects. If we consider the simultaneous use of the Internet to perform banking
4
5
http://www.oddcast.com
http://www.sitepal.com
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operations and to buy goods or services to be an "advanced usage", we should then consider that 58% of the subjects fall
into this category.
The analysis of the data for the three samples shows that there are no significant differences regarding the main
demographic characteristics.
Table 1 – sample profile for each group
Gender
Group 1
Group 2
Group 3
Total - n
Male
16
18
19
53
Female
18
13
14
45
15-24
10
3
6
19
25-34
12
9
10
31
35 – 44
9
12
9
30
45-54
3
5
5
13
55-64
0
2
3
5
Yes
15
18
24
57
No
19
13
9
41
Age
Advanced use
4.2 Data Analysis
4.2.1. Reliability tests of the measurement scales
The reliability of scales used measure the latent constructs "Trust”, “Credibility", "Sociability and human warmth" and
"Purchase and repurchase intention" was tested using Cronbach's Alpha. The results confirm their internal consistency:
0,94, 0,92, 0,96 and 0,96 respectively.
Given these results, four new composite variables were created using the arithmetic mean of each group of items
corresponding to the latent constructs "Trust", "Credibility", "Sociability and Human Warmth", " Purchase and Repurchase
Intention".
4.2.2. Test of Hypothesis
To test hypotheses H1, H2, H3 we performed an analysis of variance (one factor ANOVA). We tested the variance of the
variables’ mean ("Trust", "Credibility", "Sociability and human Warmth") as a function of the factor “ Sociability Level". This
factor, a qualitative independent variable that we manipulated, contains three levels corresponding to each type of
treatment that each group was submitted to. The "Sociability Level 1" corresponds to the simple store without avatar
(Store 1), the “Sociability Level 2” (Store 2) corresponds to the store with the presence of a naturalistic avatar with TTS
voice and the "Sociability Level 3” (Store 3) corresponds to the store with the presence of photo-realistic avatar with real
human voice.
Structural equation modeling (SEM) has become a quasi-standard in marketing and management research when it comes
to analyzing the cause-effect relations between latent constructs. Partial Least Squares – SEM (PLS-SEM) is a causal
modeling approach aimed at maximizing the explained variance of the endogenous latent constructs (Hair, Ringle, &
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Sarstedt, 2011). Its ability to model latent constructs under conditions of non normality, no strong assumptions about the
multicollinearity and in small to medium samples is well known among researchers (Chin, Marcolin, & Newsted, 2003;
Maroco, 2010). For the specified reasons we choose PLS-SEM to weigh the individual importance of our latent constructs
“Trust”, “Credibility”, “Sociability and Human Warmth” as predictors of “Purchase and Repurchase Intention”, i.e., our
hypothesis H1a, H2a and H3a.
4.2.2.1 One Factor ANOVA
One factor ANOVA was used to test for differences for trust, credibility and sociability and human warmth. Results show
that trust differs significantly among groups, F (2, 95) =6,48, p=0,002. Similarly differences regarding credibility are
statistically significant, F (2, 95)= 8,37, p=0,00. Finally, differences for Sociability and Human Warmth are also significant,
F (2,95)= 11,50, p=0,00.
Scheffé post-hoc comparisons of the three groups indicate that the means for the three variables are arranged in ascending
order, the lowest one being Group 1, followed by Group 2 and Group 3 which displays the highest mean.
In what concerns trust, results for Group I are significantly lower (M=3,66, 95% CI [3,11-4,21]), than for group III
(M=4,81, 95% CI [4,46-5,16]). Comparisons between group II (M=4,43, 95% CI [3,93-4,92]) and the other two groups were
not statistically significant at p<0,05.
In what concerns credibility, results for Group I are significantly lower (M=3,70, 95% CI [4,07-5,10]), than for group II
(M=4,58, 95% CI [4,76-5,31]) and group III (M=5,03, 95% CI [4,76-5,31]). Comparisons between group II and group III
were not statistically significant at p<0,05.
Finally, regarding Sociability and human warmth, Group I present results significantly lower (M=3,74, 95% CI [3,124,36]), than group II (M=5,02, 95% CI [4,55-5,48] and group III (M=5,28, 95% CI [4,91-5,65]). Comparisons between group
II and group III were not statistically significant at p<0,05.
In sum, the difference of means was always statistically significant between Group I and Group III. That is, the presence of
photo-realistic Avatar with real voice always influences consumer perceptions when compared to the website without
avatar in all variables under study. The presence of the naturalistic avatar with TTS voice (Group II) had a significant
impact in "Credibility" and "Sociability and Human Warmth" but is not significant in what concerns trust. The differences
between avatars with TTS voice and the photo-realistic avatars with real voice were not statistically significant.
4.2.2.2 Partial Least Squares Analysis PLS-SEM
Data was analysed using Partial Least Squares (PLS) with SmartPLS 2.0.M.3 (Ringle, Wende, & Will, 2005).
Although the measurement and structural parameters are estimated together, a PLS path modelling approach is a two step
process that involves (1) the assessment of the reliability and validity of the measurement model and (2) the assessment
of the structural model.
All latent constructs are reflective. Reflective measurement models must be assessed with regard to their reliability and
validity. In what concerns reliability and validity of measurement scales, all absolute standardized values of each indicator
and all constructs’ composite reliability values exceed 0.70, evidencing an excellent good level of internal consistency in
the responses (Hair, Ringle, & Sarstedt, 2011). Similarly, the AVE for all constructs is adequate (above 0.50), which
indicates an acceptable convergent validity of each construct meaning that each latent variable explains more than half of
its’ the indicators variance (op. cit.).
With regard to discriminant validity, we tested if all indicator loadings were higher than all its cross loadings (Chin W. W.,
1998) and if the square roots of AVE of all latent constructs were greater than the correlations between latent constructs
in the model (Fornell-Lacker Criterion) (Fornell & Larcker, 1981; Hair, Ringle, & Sarstedt, 2011; Götz, Liehr-Gobbers, &
Krafft, 2010). One indicators’ loading (‘Polished’, from the construct ‘Sociability and Human Warmth’) did not satisfy the
first condition and was removed. Regarding to the square root of AVE all latent constructs satisfied the second condition.
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Table 2: Summary of statistics
Indicator
loadings
Items for each construct
Credibility
1 - The product information provided on this electronic shop is credible.
2 - The product information provided on this electronic shop is correct.
3 - Is the seller a specialist in their business?
4 – This electronic shop seems professional to you?
Sociability and human Warmth
- Friendly
- Warm
- Helpful
- Polished
- Informational
- Intelligent
- Pleased
- Satisfied
- relaxed
Trust
1 - This electronic shop seems to me more trust inspiring than others I've
visited.
2 - This electronic shop belongs to a company that will fulfill what is
committed.
3 - The information exposed in this electronic store deserves my confidence.
4 - I trust on the recommendations that are made on this electronic shop.
5 - I think this company is honest.
Purchase/repurchase intention
1 - The atmosphere created by this store convinced me to buy a product.
2 - The atmosphere created at this store makes me feel comfortable to
recommend a friend to buy a product on it.
3 - I will become a customer of this store and come back whenever you need
to buy new products.
ρca
ρ veb
0.96
0.86
0.98
0.84*
0.97
0.86
0.98
0.95
0.94
0.93
0.92
0.92
0.91
0.91
0.94
0.85
0.87
0.93
0.95
0.95
0.85
0.90
0.94
0.95
0.92
0.94
0.97
0.98
0.98
Table 2 (Continued)
√AVE
Credibility
Purchase/Repurchase
Intention
Sociability/Human
Warmth
Trust
Credibility
0.93
0.85
0.88
0.88
Purchase/Repurchase
Intention
0.85
0.97
0.91
0.88
Sociability/Human
Warmth
0.88
0.91
0.92
0.85
Trust
0.88
0.88
0.85
0.93
Notes: aρc(Composite reliability: 0.70 ≤ ρc ≤ 1); b ρve (AVE): 0.50 ≤ ρve ≤ 1); the diagonal (in bold) shows the square roots of the
AVE; * after removing ‘Polished’
This analysis shows that our constructs have adequate measurement properties. Subsequently, we assess whether the
structural model supported the proposed theoretical model.
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The goal of the prediction oriented PLS-SEM approach is to explain the endogenous latent variables’ variance. To
accomplish that objective, the key targets constructs’ level of R 2 should be high. In marketing studies, R 2 values of 0.75,
0.50 and 0.25 can be described respectively as substantial, moderate or weak (Hair, Ringle, & Sarstedt, 2011). The
endogenous variable in our model shows a R 2 = 0.866, which means that more than 86% of the endogenous construct’s
variance is explained by the model. This is a substantial result. The larger R 2 is , the larger the percentage of the
endogenous construct variance is explained for is exogenous variables (Götz et al, 2010).
For assessing the predictive relevance of the model we must apply a blindfolding procedure to the endogenous variable.
The Stone-Geisser Q 2 is the predominant measure of predictive relevance and comes in two forms: the cross validated
redundancy and communality (Stone, 1974; Geisser, 1974). As recommended by Hair, Ringle, & Sarstedt (2011) we chose
the cross-validated redundancy because it uses the PLS-SEM estimates of both the structural model and the measurement
models for data prediction. As so it fits perfectly the PLS-SEM approach. A Q² > 0 is indicative of predictive relevance (Chin
W. W., 1998). The Q 2 for the endogenous variable ‘Purchase/repurchase Intention’ is equal to 0.815. Therefore we can
postulate that its explanatory latent constructs have predictive relevance.
Hypotheses H1a, H2a and H3a were tested by assessing the path coefficients significance. For that purpose we used
bootstrapping: 5000 samples, 98 cases as recommended by Hair, Ringle, & Sarstedt (2011).
The individual path can be interpreted as standardized beta coefficients (β) of ordinary least squares regressions. Paths
that are nonsignificant or show signs contrary to the hypothesized direction do not support a prior hypothesis; significant
paths showing the hypothesized sustain the anticipated causal relationship. (Hair, Ringle, & Sarstedt, 2011, p. 147). Critical
t-values for a two-tailed test are 1.62 for a significance level of 0.1, 1.96 for a significance level of 0.05 and 2.58 for a
significance level of 0.01 (op. cit, p. 145).
Performed the bootstrapping, the results showed for the path Trust  Purchase/Repurchase Intention (β=0.372),
hypothesis H1a, a t-value equal to 4.36; for the path Credibility  Purchase/Repurchase Intention (β=0.034), hypothesis
H2a, a t-value equal to 0.62; and for the path Sociability/Human Warmth  Purchase/Repurchase Intention (β=0.562),
hypothesis H3a, a t-value equal to 6.89. Therefore we must reject de hypothesis H2a. Credibility has no predictive capacity
over Purchase and Repurchase Intention. The other two paths (Hypothesis H1a, H3a) are significant and accepted.
Image 2: PLS path estimates
203
To assess the influence strength (Effect size
) of each latent exogenous variable on a particular latent endogenous
variable one must estimate twice the structural model: once with and once without the independent latent variable. The
“effect size” is calculated by means of the Cohen’s coefficient (Cohen, 1988).
.
Values for
of 0.02, 0.15, or 0.35 indicate respectively a weak, moderate or substantial influence of the exogenous
variable on the endogenous latent variable (Cohen, 1988; Götz, Liehr-Gobbers, & Krafft, 2010). The results were
for Trust, a moderate but significant effect,
for Credibility, an absolute null effect, and
for Sociability and Human Warmth, which is a very substantial effect over Purchase and Repurchase Intention.
5. Discussion
Overall, the results confirm the proposed hypotheses (H1, H2 and H3): photo-realistic avatars endowed with pre recorded
real human voice in a online store have a direct positive effect in trust, credibility and sociability and human warmth.
Naturalistic avatars endowed with TTS voice did not confirm the generality of the existing literature about the capacity of
avatars to induce feelings of trust. However they confirmed previous studies in what concerns credibility and sociability
and human warmth. This result may be due to the fact that our TTS avatar did not present the necessary ability to be
likeable and to evoke empathy with the subjects giving them increased feelings of trust towards the seller (Wang &
Fodness, 2010).
Although the means obtained were higher, photo-realistic avatars did not seem to induce notable differences in
perceptions of consumers when compared with the naturalistic TTS voice avatars with the exception of "Trust" in relation
to Group I. The differences in the evaluations made by the subjects of the experiment, which were in all cases favorable to
the photo-realistic avatar, are not statistically significant. Again, a possible explanation for this result may be the fact that
our photo-realistic avatar was not perceived as significantly different from the TTS avatar in order to be perceived as more
likeable and capable to generate increased empathy. Another explanation may be the fact that advances in TTS technology
nowadays have rendered it is so similar to human voice that it can create generally the same feelings of empathy and
perception of sociability as photo-realist avatars with real human voice. However, Qiu and Benbasat (2009) concluded that
TTS voice does not carry significant social stimulations when compared with real human voice. It should also be taken into
account that the subjects may have not perceived the photo-realistic avatar as a representation of a real human being.
Concerning the predictive capacity of "Trust", "Credibility" and "Sociability and Human Warmth" of consumers’ "Purchase
and Repurchase Intention" (hypotheses H1a, H2a, H3a) the results confirm the importance of the induced active feelings of
trust and sociability and human warmth with special significance for the later. This result is, in general, consistent with
previous studies (Wang & Fodness, 2010; Hassanein & Head, 2005/06; 2007).
Unlike the other two variables, “Credibility” has no influence on the consumers’ purchase and repurchase intention. This
result contradicts, in part, the studies developed by Cugelman et al (2009 ) who conclude that the credibility of a web site,
although mediates "Trust", has a significant direct impact on consumer behavior. Our result may be due to the fact of
concepts of credibility and trust are related and in general credibility precedes trust. In fact, humans trust on what they
first consider to be credible. The data seems to confirm it. If we remove the direct path from Credibility to Purchase and
Repurchase Intention, and move it toward Trust, it has a strong path coefficient (β = 0.883) and Credibility explains 78% of
Trust variance. An alternative explanation may be the type of product: simple sports shoes do not involve such technical
complexity or price level that their purchase requires superior levels of credibility for the average consumer.
In sum, the variable with the most positively effect in "Purchase and Repurchase Intention" is "Sociability and Human
Warmth", which demonstrates the importance of sociability factors in E.C. sites. As sustained by the literature, “Trust”, has
also a significant positive effect on "Purchase and Repurchase Intention".
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6. Conclusions
This article focuses on the introduction of avatars as sociability and human warmth stimuli in sites of electronic commerce
and its implications in consumer behavior. Overall, the study validates the all proposed hypothesis except one (H2a). We
can conclude that the introduction of avatars at EC sites, particularly photo-realistic avatars, has visible practical effects in
sociability and human warmth perceptions, in trust towards the seller, in the credibility of the online store and can
enhance costumers’ purchase and repurchase intention.
Underpinned on this study, as also on the findings of Wang and Fodness (2010) and Qiu and Benbasat (2009), we can say
that animated avatars exert an influence on online consumers similar to real salespeople in brick and mortar shops.
Avatar technology, that can be combined with A.I., is also promising in the field of Customer Relationship Management
(now transformed into e-CRM), in the market segmentation and in lead generation. A.I., based on libraries of knowledge
about customers can equip avatars with the ability to recognize the customer with whom they are dealing with and create
a personalized relationship making suggestions about products based on their purchase history. Companies can take
advantage from this capability providing as much information as possible to their client, improving their shopping
experience and reducing operating costs (Dionísio, Rodrigues, Faria, Canhoto, & Nunes, 2009, p. 41)
6.1. Implications for management
The results emphasize the importance of building relationships in e-commerce similar to those existing in physical stores
between salespeople and customers. Managers should look at this technology as a powerful way to achieve it.
Despite the fact that purchases can occur in other channels, nowadays, Internet has a major influence in purchase
decisions. Consumers search for information about products and prices before buying online. An attractive internet
presence inducing trust, credibility, sociability and human warmth, and capable of creating imagined rich social relations
with the costumer, can also increase demand in physical stores (Paulo, 2012).
6.2. Limitations and directions for further research
This research is not without limitations. A single experiment conducted online has limited generability to assess all the
implications of the introduction of photo-realistic avatars endowed with real human voice as a sociability factor in ecommerce sites. New experiments with larger samples should be conducted. Conducting a similar experiment in a strict
laboratory environment in order to ensure the homogeneity of technical conditions among subjects (monitors, processing
speed, Internet access, loading speed of applications, quality and volume of audio and the use headphones to ensure
subjects concentration on the experiment) could also be considered.
The difficulty to operationalize, and even distinguish constructs such as "credibility", "Trust" and "Sociability and Human
Warmth” also presents some limitations. These constructs have idiosyncratic implications and are interpreted differently
by consumers depending on their ages and cultures (Wang & Fodness, 2010).
Despite the fact that the recruitment of our sample has been performed in a universe much larger than a college campus,
and thereby tried to escape is the so- called “science of university students" we still must acknowledge that it is wounded
with the sample convenience due to the fact that subjects were recruited only through the Internet. This methodology was
suitable for controlling the variable "Technology acceptance level", but prevents us from generalizing the results to those
not accustomed to dealing with the Internet and the Electronic Commerce. Broader samples, in order to obtain a better
representation of the population, should be tried.
One aspect that has not been assessed by us is the interaction between avatars (which must vary their expertise and even
their appearance: age, gender, etc.), type of product and online stores design. Trust and credibility towards the seller or a
store that sells basic clothes or footwear and high end stores are distinct. The manipulation of avatars’ attractiveness and
expertise makes them more effective for different types of consumers. Expertise, for example, has positive effects on more
involved consumers with the product. This is prevalent when it comes to expensive and technically advanced products.
Thus we can also assess the possible contributions of the avatars for customer segmentation. This functionality can be
achieved by equipping them with A.I. That was not considered in our study. A.I. also allows introducing a higher level of
205
interactivity and achieving a two-way interaction between the avatar and the consumer. That was not possible in our
study either.
Another path of research is the use of photo-realistic avatars based on the image of opinion leaders. This may lead to a
greater identification between the consumer and the virtual entity and consequently have implications on consumers
purchase and repurchase intentions.
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Influences of social media marketing on preadult consumers
Relationship marketing, social media marketing, web 2.0, pre-adults consumers.
Sandra Filipe, University of Aveiro, sandrafilipe@ua.pt
Dora Simões, University of Aveiro, dora.simoes@ua.pt
Abstract
This paper reports on the use of social media marketing by pre-adults, setting off from a case study of students of different
courses at one Portuguese higher education school. Data were collected through a questionnaire available online and
analysed with descriptive statistical techniques. Based on the pointed outlines, this research explores and analyses four
key issues: (1) what are the types of social media that students are using?; (2) in which contexts are they using each social
media type?; (3) what are their opinions about the persuasive intentions of social media marketing?; and (4) how does
social media marketing influence their brand knowledge, attitude and behaviour?. Within the research questions
proposed, the study points towards some understanding of how the young at this age and education level see social media
marketing. Furthermore, in this paper, tendencies around the concepts, the tools and levels of attraction by the audiences,
with focus on relationship marketing in the 2.0 era, are revisited. This study, by focusing on this age group, contributes
with critical information that might help cast light over recent theories and practices of social media marketing. The main
results show that the pre-adults are fans of several brands, although they do not follow them continuously, or follow only a
few of those in which they are more interested; also show that they consider the use of social media for dissemination and
promotion of brands and products useful, however some have indicated that sometimes they feel that their privacy is
invaded.
1. Introduction
Nowadays, companies are driven by a new environment characterized by highly intense competition, high concern for
quality, excess production capacity and strong technological development. Therefore, the marketing professionals have
felt the need to satisfy, retain and engage their customers through an orientation towards long-term relationships. The
relationship marketing paradigm and the requirement for its implementation on business organizations, to improve
customer retention levels, is clearly recognized in the academic literature.
On the other hand, the higher speed of internet access and the emergence of the web 2.0 era (and now of web 3.0), giving
users the possibility to read and write, in par with the use of mobile equipment, are providing a cheaper and faster form
for the organizations to establish contact with customers and, also, potential ones. Social media is part of the phenomenon
known as web 2.0, building on its ideological and technological foundations, which allow the creation and exchange of
user-generated content (Kaplan & Haenlein, 2010; Peixoto, 2010; Zarrella, 2009). It has become a platform that is easily
accessible to anyone with internet access; in addition, it has increased communication for organizations, fostered brand
awareness and often improved customer service, and it also serves as a relatively inexpensive platform for organizations
to implement marketing plans (p.e., Evans & McKee, 2010; Greenberg, 2010; Wikström & Wigmo, 2010). However, will it
be as straightforward as it appears to be? Indeed, it is an interesting area that we consider should be further explored and
better understood in order to provide concrete guidance in the future.
In the context of customer relationship management, social media marketing provides an opportunity for brands to
optimize interactions with actual and potential consumers; however, a deep knowledge of the consumer side is required
(Egan, 2011; Greenberg, 2010; Peppers & Rogers, 2011). Due to the fact that the consumer side is too wide, we decided to
opt for the consumer segment constituted only by pre-adults, based on the following two reasons: data analysis already
conducted by consumer segments demonstrates that pre-adults are active users of social networks; additionally, pre208
adults are the future target segments of different brands. Thus, by focusing on this age group, this study contributes with
critical information that might help cast light over recent theories and practices of social media marketing.
Thereby, the paper reports on the use of social media marketing by pre-adults, setting off from a case study of students of
different courses at one Portuguese higher education school. Based on the pointed outlines, the study points towards some
understanding of how the young at this age and education level see social media marketing. We intend to understand and
analyse in detail (1) the types of social media used by students; (2) the contexts in which they use each social media type;
(3) the students’ opinions about the persuasive intentions of social media marketing; and (4) the influences of social media
marketing on their brand knowledge, attitude and behaviour.
After this introduction, the paper follows with a state-of-the-art on the changing paradigm of relationship marketing on
the web, stressing the youngsters with an active user profile of web. The next section focuses on the methodological
aspects of the study, including the context of the case study us ed in the research and techniques for collecting and
processing data. The fourth section is devoted to presenting the main results obtained. The paper ends with a discussion of
the results and the main conclusions and limitations of the study.
2. The changing paradigm of relationship marketing on the web
The term relationship marketing was first introduced by Berry in 1983, who stated that relationship marketing is a
marketing orientation to attract, maintain and enhance relationships with customers (Berry, 2002). It begins to be
recognized as a new reality oriented towards value creation, which results in the development of personalised marketing
to meet the needs of consumers (p.e., Peterson, 1995; Sheth & Parvatiyar, 1995). The emergence of relationship marketing
is therefore interpreted as a paradigm shift required for all marketing situations, not just restricted to services marketing
to services marketing and industrial marketing, where previously this long-term perspective had been clearly recognized.
2.1. Relationship marketing
In fact, since the 1990s, academic literature has been putting a notorious emphasis over the concept of relationship
marketing (p.e., Cristopher et al., 1994; Grönroos, 1997; Morgan & Hunt, 1994). Relationship marketing is presented as a
new paradigm, focusing on the construction of stable relationships with its customers, in contrast to the traditional
approach to promote oriented transactions (Grönroos, 1997; Gummesson, 1998). According to Nevin (1995, p. 327) the
concept of relationship marketing has been used to reflect four different perspectives: (1) assumes a promotional
approach and emphasises that relationship marketing will direct the flow of promotional monies towards targeted
customers; (2) focuses on individual customers and on building a close relationship with individual customers or treating
each customer as a segment of one; (3) concerned about keeping or retaining customers by using a variety of customers
bonding techniques and staying in touch with the customer after the sale is made; (4) takes a more strategic perspective
by putting the customer first and shifting the role of marketing from manipulating the customer (telling and selling) to
genuine customer involvement (communicating and sharing the knowledge). The definitions of relationship marketing go
in the same direction, i.e., enhancing marketing on the relationship with the customer in order to extend this period, and
supporting it on mutual benefits. However, if first definitions focus on the relations hips with customers, the most recent
definitions focus on the relationships with all business partnerships (Payne, 2005; Sheth & Parvatiyar, 2002).
Relationship marketing is more recently cited as the philosophical foundation of Customer Relationship Management
(CRM). Berry (2002, p. 73) defined it as “a philosophy, not just a strategy, a way of thinking about customers, marketing
and value creation, not just a set of techniques, tools, and tactics”. Buttle (2009) and Payne (2005) uphold that CRM is a
strategy supported on technology. Although the concept of CRM has arisen associated with the implementation and put
into practice the philosophy of relationship marketing, in some literature these two concepts continue to be used
interchangeably. However, considering the dates, we find that the references to the concept of CRM are all recent. Despite
the definition of relationship marketing, the definitions given for CRM are far from a consensus. Essentially, it is difficul t to
tell whether it is a strategy, a process, a technology, and some people still refer to it as a philosophy. Nevertheless,
Greenberg (2010) clarifies all these ambiguities pointing that CRM is (or should be) all that, a philosophy and a strategy
that encompasses a set of processes and that is supported by technology. From his definition of traditional CRM,
Greenberg develops a social CRM concept, as: “a philosophy and a business strategy, supported by a technology platform,
business rules, processes, and social characteristics, designed to engage the customer in a collaborative conversation in
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order to provide mutually beneficial value in a trusted and transparent business environment” (p. 34). Along with the
management of customer information should always be present the formation of relationships, whose ultimate goal of
quality is the generation and sustain of confidence.This state is the ultimate result that is expected from the formation of a
successful relationship, going through other constructs, such as symmetry, equity, dependence, satisfaction, and
commitment (Britton & Rose in Peppers & Rogers (2011)).
2.2. Social media marketing supporting relationship marketing on the web
The Internet used to be a static place, but recently it has become more flexible and increasingly its content is user
generated. In a conference brainstorming, Tim O'Reilly and Dale Dougherty noted that the web, far from having crashed
after the dot-com collapse in the fall of 2001, was more important than ever, with exciting new applications and sites
popping up with surprising regularity (O'Reilly, 2007). The concept of web 2.0 quickly spread worldwide.
Currently, there are numerous definitions of web 2.0; some are broader, others are more generic , but all agree on the fact
that the whole structure of the platform is targeted to the user's browsing experience, to sharing and creating knowledge,
leaving the user to be a mere receiver of information (Hayes, 2006; O'Reilly, 2007). Moreover, according to O'Reilly
(2007): "Web 2.0 is the network as the platform, spanning all connected devices”. Hayes (2006) denies that the future is in
the web 3.0, real-time collaborative web. However, it is not yet a general consensus definition.
Social media is part of the web 2.0 phenomenon, building on its ideological and technologic al foundations, which allow the
creation and exchange of user-generated content (Kaplan & Haenlein, 2010; Peixoto, 2010; Zarrella, 2009). It has become a
platform that is easily accessible to anyone with internet access; additionally, it has increased comm unication for
organizations, fostered brand awareness and often improved customer service, and served as a relatively inexpensive
platform for organizations to implement marketing plans (p.e. Evans & McKee, 2010; Greenberg, 2010; Wikström &
Wigmo, 2010). Social media includes various types of internet communications. Mangold & Faulds (2009) identified the
following several types: social networking sites (MySpace, Facebook, etc.); creativity works sharing sites (YouTube, Flickr,
etc.); user-sponsored blogs (Cnet.com, etc.); collaborative sites (Wikipedia); virtual worlds (Second Life); commercial
communities (eBay, Amazon.com, etc.); and business networks (LinkedIn).
These new web sites have become increasingly popular with hundreds of millions of users worl dwide, and are a new
powerful marketing tool. Moreover, with social media, marketing is a two-way communication (Eley & Tilley, 2009). Social
media provides new ways to connect, interact and learn; it allows people with no special knowledge to post and share
content with the world instantly; it is a place where customers set the rules and the word-of-mouth makes or breaks the
product; it represents a diverse source of online information created, driven and used by consumers intending to inform
each other about products, brands, services as well as problems they have encountered. According to Kim & Ko (2012)
social media can have a dramatic impact on a brand's reputation. An increasingly important role of social media for
business is evident today. It is possible to perform integrated marketing activities faster and in a cheaper way. However,
before accepting the social media practice, companies need to know what they want and/or what they do not want to
achieve. Therefore, a strategy is needed on how to produce the social media content (Chiang & Hsieh, 2011).
McAlister-Holand (2012) refers that social media marketing (SMM) is very different from marketing on social networks
(MSN): SMM requires a specific strategy to social channels and content tailored to thos e platforms; MSN is simply
distributing traditional marketing messages through social media and a way to push out company offerings to anyone who
can hear them. This is in line with social CRM strategies. Lawrence (2011) and Woodcock et al. (2011) warn that, to
develop a good social media strategy, the managers should realise that technologies are now allowing people to quickly
connect, converse, create, and collaborate with each other. Moreover, it is a consensus that successful organizations in an
emerging economy of virtual/online networks and information will be those able to identify, enhance, create, and evolve
their knowledge assets. The online social networks could be a good tool to do it. This idea was already sustained by
Gerbert et al. (2003) who claimed that to build good relationships with customers, it is necessary to serve each customer
according to their preferences, which requires management of customer information. Additionally, the emerging
capabilities of customer relationship management systems enabling both reading as well as writing in online collaborative
environments are putting tremendous challenges on organisations and their human resources (Greenberg, 2010; Peppers
& Rogers, 2011). It is therefore important that agents involved be able to recognise it, a priori, as a philosophy and a
strategy that must be understood and accepted, to be implemented (Buttle, 2009). In a broad s ense, social media
marketing can contribute significantly to this, as it refers to the process of gaining website traffic or attention through
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social media sites. Social media marketing programs usually centre on efforts to create content that attracts attention and
encourages readers to share it with their social networks (Evans & McKee, 2010).
2.3. The youngsters and pre-adults with an active user profile of web
At the beginning of the third millennium, millions of youngsters and pre-adults are daily connected in social media as
sharing sites, wikis, blogs, and social networks, among others. Research findings suggest that more than 70% of internet
users worldwide, aged over 15 years, are members of at least one social network website, and also that mobile is the
perfect accelerator for social media usage (Belleghem et al., 2012; Lenhart et al., 2010). Therefore, it is important to note
that consumers have different levels of participation in the online platforms of web 2.0 services and require different
levels of attention from marketers. Li & Bernoff (2008) identify six user profiles: (1) creators - create publications on a
blog/website, upload personal videos and music, and write articles and stories; (2) critics - comment on blogs and forums,
publish and contribute to wikis and articles; (3) collectors - use RSS feeds, adding photos and links to websites; (4) joiners
- conserve his profile/account; (5) spectators - feature a passive posture, taking behaviours such as reading blogs and
comments, viewing videos and photos, and listening to podcasts; and (6) inactive - do not perform any of the activities
described above. Of the six profiles identified, the creators stand out as the most appealing to marketers, because they
easily tend to turn into opinion leaders. Therefore, it is necessary to optimize the efforts of social media marketing in this
consumer profile.
The results of a study developed in Europe context by Gray & Jennings (2008) highlighted that young people are online
every day, and are more likely to visit sharing and social network sites or use instant messaging. One in four youngsters
are bloggers and daily users of social networking, and engagement with social media is high amongst young people (nearly
half are creators and nearly half are critics), while the other users have adopted a more passive profile (spectators).
Particularly, in Portugal, a study by Bareme Marktest reported that in 2012: 73.4% of households had at least one
computer in use; 62.3% of residents aged 15 and over used the Internet (with higher penetration among men and people
between 18 and 24 years); and 83.8% of residents accessing the internet from their homes had accessed sites related to
social
networks
(people
between
15
to
24
years
showed
higher
affinity)
(http://www.marktes t.com/wap/a/n/id~1a6a.as px accessed 14.01.2013).
3. Methodology
The main goal of this study is to contribute to a better understanding of the use of social media marketing by a target
population consisting of pre-adults. With this objective in mind, we set off from a case study of students of different
courses at one Portuguese higher education school. Data were collected through a questionnaire available online by
institutional mailing list, and analysed with descriptive statistical techniques (SPSS software).
Based on the pointed outlines, we intended to understand and analyse the types of social media used by students, the
contexts in which they use each social media type, the students’ opinions about the persuasive intentions of social media
marketing, and the influences of social media marketing on their brand knowledge, attitude and behaviour. Within the
proposed research, the study points towards some understanding of how the young at this age and education level see
social media marketing.
The case study circumscribes the research on the students between the ages of 18 and 24 (completed till the end of the
year 2012) attending the courses taught at Higher Institute of Accounting and Administration of University of Aveiro
(ISCA-UA). The universe of 598 students was encouraged to answer to an anonymous, online questionnaire to register
their opinions about the use of internet and social media and other related concepts.
The questionnaire was titled “social media marketing and young university students” and was organised in four parts, in
the following order: (1) characterization of internet usage; (2) characterization of social media usage; (3) characterization
of attitudes towards social media marketing programs; and (4) characterization of the y oung university students. It is also
important to note that we consider that in diverse situations the student did not have a negative or positive position about
his own perceptions but a neutral position, thus the answers are pre-oriented on a Likert scale with 5 points.
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4. Results
Following the methodology previously defined, we obtained a total of 195 answers. Out of these, 21 were outside of the
age range taken into account in this study, and 35 were incomplete; therefore, we considered only 139 answers valid for
analysis. Thus, the 139 valid answers represent 23.2% of the universe.
4.1 The young university students’ characterization
The young university students frequenting ISCA-UA who responded to the questionnaire are currently attending the
courses as shown in Table 1.
Course versus Gender
Course
Gender
Total
Female
Male
Degree in Finance
17
9
26
Degree in Marketing
18
13
31
Degree in Accounting
33
9
42
Specialization in Finance
4
2
6
Master in Marketing
9
7
16
13
5
18
94
45
139
Master in Accounting & Accounting and Public Administration
Total
Table 1 –Absolute frequency of the valid students by course and gender.
In the light of the answers given, the households of the students are composed mainly by 3, 4 or 5 members representing
87.8% of them, with a mode of 4. Moreover, 73.2% indicated that there are no children (aged 6 to 16) in the households.
The mode of zero confirms the cumulative frequency.
Concerning the family residence, the results indicate that 60.1% of the respondents live in the district of the university
(Aveiro). This result is not surprising, since in recent years the tendency is for the young to lookup a course in a universi ty
near their area of residence. Regarding the enrollment status, the results evidence that 77.7% of the students are students
in full time and 22.3% are employed students.
The results also show that, in the majority of cases, the educational level of the parents is undergraduate (87.1% either for
father as for mother). However, considering the parents with post-graduation, the results show that 11.5% of mothers
have a bachelor's degree while only 7.2% of fathers hold the same degree. In spite of this, we have to highlight the fact that
4.3% of fathers have master’s or doctorate degrees, contrasting to only 0.7% of mothers with the equivalent level.
Finally, the data demonstrate that almost half (42.4%) of the households have a net monthly income between 1000€ and
1999€. Highlight yet that 29.5% have incomes of only 499€ to 999€ and 7.9% below 499€. Sign up that the monthly
minimum wage in Portugal is 485€ (www.pordata.pt in 14.01.2013) and the average monthly wage is currently of 1014€
(http://expresso.sapo.pt accessed 10.11.12). Nevertheless, 6.9% of the students declared that their household earns
between 3000€ to 4999€.
4.2. Characterization of internet usage
Although the study is mainly focused on the use of social media, we start by asking the students some questions abou t the
kind of devices and their frequency of Internet access. This information will help us to better understand the results on the
use of social media and its receptivity with respect to social media marketing.
With regard to the number of times and time spent on the internet, the results confirm that most young (80.6%) access the
internet daily, several times a day, and 89.2% of respondents spend between 1 to over 6 hours a day surfing (see Table 2).
212
How often do you access the
Internet? versus What time do
you spend, on average, using the
internet?
Occasionally
Weekly
(1-6 days a
week)
Daily
(1 time a day)
Daily
(several times
a day)
Total
[6, …] hours a day
0
0
0
25
25 (18.0%)
[3, …, 6[ hours a day
0
0
2
39
41 (29.5%)
[1, …, 3[ hours a day
0
0
14
44
58 (41.7%)
[…, 1[ hour a day
1
0
2
2
5 (3.6%)
[2, …, 6[ hours a week
0
2
2
1
5 (3.6%)
[…, 2[ hours a week
1
1
2
1
5 (3.6%)
2 (1.4%)
3 (2.2%)
22 (15.8%)
112 (80.6%)
139
Total
Table 2 – Absolute and relative frequencies of students relatively to internet access.
When asked what devices they have and which of those they typically use to access the Internet, the answers show that
almost all students have a notebook (99.3%) and preferably use this device to surf on the internet (96.4%). In second
order appears the mobile with 77.0% confirming to have, despite only 40.3% saying they use it to access the internet.
Nevertheless, this value is significant representing that a considerable number of users use mobile devices to access the
internet. Highlight the fact that a considerable number of respondents signed to having game consoles and portable music
players, very few claim to use those to access the internet (see Table 3).
Device
What devices do you
have?
What devices do you typically
use to access the Internet?
48 (34.5%)
30 (21.6%)
138 (99.3%)
134 (96.4%)
Tablet
16 (11.5%)
12 (8.6%)
Mobile
107 (77.0%)
56 (40.3%)
Game console (p. e. PlayStation or Wii)
35 (25.2%)
8 (5.8%)
Handheld game console (p. e. PSP)
15 (10.8%)
5 (3.6%)
Portable music player
44 (31.7%)
2 (1.4%)
Personal computer
Notebook
Table 3 – Absolute and relative frequencies of students about devices they have and use to access the internet.
Furthermore, we asked about the services that the pre-adults use when they access the internet. Using the scale from 1 (“I
do not use”) to 5 (“I use very often”), the issues most signed, representing an average between 4.28 and 4.70 and a mode of
5, were: display and use the email; study or do research for the study; use social media (e.g. social networks, sharing sites ,
blogs, wikis, virtual worlds, etc.); and obtain information of a different nature. Following, appear: download music files,
videos, games, etc.; chat online by text or voice; and listen to music or some radio station, representing an average
between 3.62 and 3.78 and also a mode of 5 which indicates that those services were signed as used very often. The other
sentences were classified in lower levels, showing that the services such as to read a newspaper, to search in brand
websites (with average and mode around 3), to watch TV, to play games, to purchase new or used products (with average
around 2 and mode of 1) are the least used. In the context of this study, highlight the fact that the purchase of products
must be less practiced between the younger students.
Finally, in this section we wanted to know the opinion of our respondents regarding the use of small mobile devices
(mobile phones, tablets, etc.) to access internet services. Based on a scale of 1 (“I strongly disagree”) to 5 (“I strongly
agree”), the answers showed that most strongly agree that the use of these devices has substantial benefits (average 4 and
mode 5). The early opinion is reinforced by the fact that respondents agreed that the advantage of the portability feature
overcomes any limitations related to the small size (average and mode 3). Nevertheless, the pre-adults consider that most
of the services that interest them do not yet provide appropriate applications for small mobile devices. In general, the
213
respondents disagree with the opinion of “I don’t feel the need to use them and have difficulty in using them for the
purpose of internet access”. Thus, small devices are viewed as an asset for their lives.
4.3. Characterization of social media usage
Centered now on research questions exposed early, the inquiry showed that relatively to social media activities performed,
the view of social network websites (e.g. Facebook, Twitter, LinkedIn, etc.) is definitely the activity most frequently
performed (average of 4.29 and mode of 5). To view photos or shared videos (e.g. YouTube, SlideShare, etc.) is another
activity often performed (average of 3.71 and mode of 5). To post on social network websites or blogs is an activity
moderately executed by the respondents (average of 2.90 and mode of 5). The other activities such as to create and
manage blogs or social network pages; to participate in discussion forums or communities; to share something created
(e.g. YouTube, Flickr, etc.); to visit virtual second worlds (e.g. Second Life, etc.); or to collaborate on wikis are less practiced
(averages between 2.40 and 1.39, respectively, and mode of 1 for all). It was used a Likert scale of 5 points, from 1 (“I do
not”) to 5 (“I do very often”).
When inquired if they currently have a profile in some social network websites, not including Facebook, it is verified as we
can see in Figure 1 that less than 25% have a profile in some of these, with Google+ (24.5%) being the most signed,
followed by LinkedIn, Twitter, Hi5 and Myspace. The Pinterest and Orkut are the least marked, with a frequency of 5.8%
(8) and 1.4% (2), respectively. Furthermore, despite some respondents having claimed to have a profile in some of these
websites, few seem to perform activities with some regularity. It was used a scale of 1 (“I do not”) to 5 ( “I do very often”).
The average scores are between a minimum of 1.0 and a maximum of 2.06, and mode is 1 for all cases.
Figure 1 Absolute and relative frequencies of students that have a profile in social network websites.
Nevertheless, concerning the social network website Facebook, the picture is very different, with the answers showing
that 92.9% (129) of pre-adults have a profile. Only 10 (7.2%) claimed not to have one. Furthermore, when inquired about
the frequency of performing activities on this website, 89.2% claimed to performing them from regularly to very often, still
having 60.5% affirmed to performing them very often. Only 10.1% refer to perform them rarely or very rarely. It was used
a Likert scale of 5 points, from 1 (“Very rarely”) to 5 (“Very often”).
With regards to the activities practiced on the social network website Facebook by our pre-adults, the results evidence
that sending private messages to friends is the activity most performed (average 3.78 and mode 4), soon followed by
following, without posting the pages of friends; following, without posting, the news in pages of brands that they like; and
posting and sharing of news in the pages of friends (average, respectively, between 3.32 e 3.02, and mode 3). In last,
appear posting in pages of brands that they like and sending private messages in pages of brands with products that they
214
like (average, respectively, of 2.38 e 1.54, and mode 1). Again, a Likert scale of 5 points, from 1 (“Very rarely”) to 5 ( “Very
often”), was used.
Yet about Facebook, 43.4% of the respondents acclaimed to having between 100 and 400 friends. Above of 700 friends,
almost the same number (35.7%) referred to having more than 700 friends, being of these (16.3%) above of 1000.
Nevertheless, 7% signed to having less than 100 friends.
Finally, regarding characterization of social media usage, the 139 respondents to the questionnaire cited the following
activities they practice on Facebook, described in descending order:

(122) – “I belong to groups created by friends.”

(92) – “I am a fan of personal pages related to music, film, television, theater, sports, etc.”

(82) – “I adhere to themed events by invitation of my friends.”

(76) – “I am a fan of brand pages.”

(40) – “I am administrator of a group and invite my friends.”

(25) – “I create themed events and invite my friends.”

(25) – “I adhere to themed events by invitation of brands.”
Thus, we can conclude that essentially the pre-adults manage their profiles by belonging to groups created by friends; by
being fans of personal pages related to music, films, television, sports, etc.; by adhering to themed events; and by being
fans of brand pages. A minority practices activities of administration of some groups or creation of themed events.
4.4 Attitudes towards social media marketing programs
The last section of the questionnaire focused on obtaining responses to what the students’ opinions are regarding the
persuasive intentions of social media marketing, and how social media marketing influences their brand knowledge,
attitude and behaviour. To do so, the students were initially inquired about their situation towards brand pages on social
networking websites. The analysis shows that most students are fans of some or several brands, although they do not
follow them continuously, or follow only a few brands that have bigger interest (89.1%). Highlight the fact that 5%
mentioned that they follow continuously several brands. Nevertheless, 15.8% claimed not to follow any brand. The main
motivations for becoming a fan of a brand are the following, described in descending order:

(101) – “Own initiative, because I am an admirer of the brand or I am a client.”

(39) – “Attracted by the possibility of obtaining a prize or promotional discount.”

(31) – “Tip of an online friend.”

(28) – “A link that I meet spontaneously while I surf the internet.”

(27) – “The fact that the brand is common to and followed by my friends.”

(23) – “Tip of a friend personally.”

(20) – “Inspired by a competition launched by the brand with no prize winning.”
Looking at the most voted sentences (in this question it was possible to sign several sentences), we can determine that in
most cases one student becomes a fan of a brand by his/her own initiative, because he/she is an admirer or customer of
the brand (72.7% signed this sentence). The second most voted motivation was “Attracted by the possibility of obtaining a
prize or promotional discount”, representing 28.1% of respondents. Nevertheless, despite much less signed, the other
sentences were equally chosen, with frequencies between 22.3% and 14.4%.
Additionally, the students were inquired about their opinion on the influence of social media marketing on brand
awareness and customer retention. Having three alternatives, 53.3% signed “I think that it has advantages, but must be
applied following a marketing plan carefully delineated” and 46.0% signed “I think that it has many advantages, because
people love to share what they do, and thus can more easily leverage the desire for a product or brand on other people”.
Only one person considered “I don’t see any advantage because if anything goes wrong, the news spreads very quickly and
can be disastrous for the brand”. Therefore, almost all students see advantages on the use, by the business organizations,
215
of social media marketing to brand awareness and customer retention, despite some of them enhancing the importance of
adequately planning the strategy to implement.
The results exposed above are corroborated by the answers about the opinion on the use of social networking websites
and other social media for dissemination and promotion of brands and products. Once more, almost all pre-adults consider
these useful (92.8%), although some of them indicate that they sometimes feel that their privacy is invaded as
well(46.0%). Yet, 7.2% feel very concerned, because they cannot even imagine that what they think and do on the Internet
can be used to "hold" them to a brand.
Finally, the students were inquired about their level of interest in brands on the Internet (see Figure 2). Once again, a
Likert scale of 5 points, from 1 (“None”) to 5 (“Very high”) was used. The analysis shows that the interests are higher in
music (mode 5), followed by fashion and sports (mode 4), and by traveling, telecommunications, reading and food (mode
3). The remaining are all classified with no or very low interest (mode 1).
Figure 2 - Level of interest of students in brands on the Internet.
5. Discussion and conclusions
Revisiting the research questions presented at the beginning of the paper, we determine, grouping the sentences in two,
the conclusions presented below.
“Which types of social media are students using?”
&
“In which contexts are they using each social media type?”
The social media activities performed more frequently are, in descending order:
1.
To view social network websites (e.g. Facebook, Twitter, LinkedIn, etc.);
2.
To view photos or shared videos (e.g. YouTube, SlideShare, etc.);
3.
To post on social network websites or blogs;
4.
To create and manage blogs or social network pages;
5.
To participate in discussion forums or communities;
216
6.
To share something created (e.g. YouTube, Flickr, etc.);
7.
To visit virtual second worlds (e.g. Second Life, etc.);
8.
To collaborate on wikis.
Moreover, Facebook is considerably the most used social network website, followed by Google+, LinkedIn and Twitter, but
with significantly lower scores.
Concerning the activities practiced on the social network website Facebook by our pre-adults, the results evidence that
sending private messages to friends is the activity most performed; soon followed by following, without posting the pages
of friends; following, without posting, the news in pages of brands that they like; and posting and sharing of news in the
pages of friends. In last, appear posting in pages of brands that they like and sending private messages in the pages of
brands with products that they like.
Essentially, the pre-adults manage their profiles by belonging to groups created by friends; by being fans of personal pages
related to music, films, television, sports, etc.; by adhering to themed events; and by being fans of brand pages. A minority
practices activities of administration of some groups or creation of themed events.
“What are their opinions about the persuasive intentions of social media marketing?”
&
“How does social media marketing influence their brand knowledge, attitude and behaviour?”
The results show that the majority of pre-adults are fans of some or several brands, although they do not follow them
continuously, or follow only a few of those in which they are more interested. Furthermore, we can determine that in most
cases one pre-adult becomes a fan of a brand by his/her own initiative, because he/she is an admirer or customer of the
brand. The second most pointed motivation was, although with much lower values, the attraction to the possibility of
obtaining a prize or promotional discount.
Regarding their opinion on the influence of social media marketing on brand awareness and customer retentio n, almost all
see advantages on the use, by the business organizations, of social media marketing to brand awareness and customer
retention, despite some of them enhancing the importance of adequately planning the strategy before implementing it.
Furthermore, the majority of young students consider the use of social networking websites and other social media for
dissemination and promotion of brands and products useful, although some have indicated that sometimes they feel that
their privacy is invaded as well.
Finally, the students demonstrate higher level of interest in brands related to music, followed by fashion and sports, and
by traveling, telecommunications, reading and food. The thematic of lower interest seems to be computers, games, banking
and business, cosmetics, animals, theater, decor and DIY, dance and toys.
The main limitation of this study was our inability to cover all students of the high school. Future researchers may try to
replicate the study to a representative sample of Portuguese students of this age and, also, trace their profile according to
the six profiles identified in the review bibliographic. In addition, cross studies with pre-adults who are not students might
be conducted to extend the scope of this study. Furthermore, future researchers may try to explore more impacts from
social media marketing and try to perceive why pre-adults do not do on-line purchases.
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Consumers’ motivations and attitude toward
the use of social media marketing in Hong Kong
Relationship maintenance, information seeking, enjoyment, perceived risks, self-disclosure, participation of commercial
activities
Mark Ng, Hong Kong Shue Yan University, chng@hksyu.edu
Abstract
Objectives: The use of the Facebook and other social media in marketing has become very prevalent. Major objectives of
this article included: To analyze the motivation of users’ self-disclosure on Facebook. To analyze the motivation of users’
participation of commercial activities on Facebook. To develop some practical implications for marketers on the use of
Facebook as a marketing tool.
Methodology: A sample of 586 (264 males and 322 females) young Facebook users in Hong Kong recruited online was
chosen. Self-administered questionnaire was used to measure different determinants of satisfaction, behavioral intention
and usage of Facebook. A partial least squares (PLS) procedure was conducted to test the hypotheses.
Conclusion: Our results show that Facebook users’ perceived convenience to maintain relationship, enjoyment of using
Facebook, and benefits of getting up-to-date information enhanced their satisfaction of using Facebook. The positive
experience of using Facebook and perceived risks of privacy invasion would determine their self-disclosure, use of
Facebook and participation of commercial activities online.
Limitation: Major limitations of this study include sampling procedure and self-administrative nature of the survey used.
Implications: To enhance consumers’ engagement with company’s fan page, marketer should provide some useful and
interesting information for customers regularly. The commercial activities should avoid collecting too much personal
information. Male customers put stronger emphasis on the enjoyment of your activities while female users are more
concerned about the risks of privacy invasion on Facebook.
1. Introduction
Facebook is the largest social network in the world with more than 850 million users of whom 50% log in on a daily basis.
The strong growth of smart-phone and other mobile devices has also enhanced the use of Facebook and different online
social networks (OSNs). The number of OSN users in China has increased dramatically since 2009. The number of active
Chinese OSN users reached 265 million in 20116 and more than 95% Internet users in China have OSN accounts.7 As of Jan
2013, there are 3.9 million Facebook users in Hong Kong, which constitute more than 53% of its population and 78% of its
online population. 8 The prevalence of Facebook and other OSNs has significantly expanded the landscape of interactive
marketing. Many major brands have established their ‘Facebook pages’ to connect with target markets , build brand image,
and implement sales promotions in Hong Kong.
In Feb 2013, the fan pages of Starbucks Hong Kong, Estee Lauder, H&M, Samsung mobile successfully connected with more
than 100,000 fans. The fan page becomes one of the major platforms for these brands to release new information, organize
events, and connect with their consumers. In recent years, many researchers have started examining viral marketing as a
6
http://www.emarketer.com/Article.aspx?R=1008235
Lau J. M. “nei di wang min shang wang xu qiu yu xiao fei mu shi” (Internet demand and online buying pattern of internet users in China), Hong
Kong Economic Journal, 2012 Jan 31, B15.
7
8
http://www.socialbakers.com/facebook-statistics/hong-kong
220
tool for marketing communications (For example, De Bruyn & Lilien, 2008; Godes & Mayzlin, 2009). However, in the social
media marketing literature, there are few studies about attracting Internet users’ participation in commercial activities,
such as joining a fan page and sharing company activities. Thus, this paper contributes to the literature on social media
marketing by examining the key motivating factors that determine consumers’ participation in commercial activities on
social media, which can provide some insights on how marketers can make use of the Facebook to engage with customers
effectively. Considering the growing importance of the Chinese market and the significant influence of online WOM on
Chinese customers (Xue & Zhou, 2010), it is also worthwhile to examine the key motivating factors that determine how
Chinese customers use social media.
2. Theoretical Framework
The social exchange theory is based on the premise that social interaction is an exchange of activities, particularly of costs
and benefits (Homans, 1958). With strong emphasis on reciprocity on Internet behaviors, the social exchange theory has
been applied to account for different Internet consumer behaviors. For example, Chen, Chen and Farn (2010) suggested
that information quality, service quality and social climate are the key determinants of members’ prosocial behavior
online. Some research study also used social exchange theory to examine the major motivators of using internet (Stafford,
Stafford & Schkade, 2004).
Many studies identified the major determinants of using social media. In sum, the key motivations for using social media
and disclosing personal information online identified by previous studies included information exchange, social
interaction, pleasure seeking and entertainment, self-image enhancement and needs of self-expression and selfactualization (Boyd, 2007; Ellison, Steinfield & Lampe, 2009; Hui, Tan, & Goh, 2006; Rosen & Sherman, 2006; Shao, 2009).
In contrast, the major barrier to disclosing personal information online is the perceived privacy risk (Malhotra, Kim &
Agarwal, 2004).
2.1 Convenience of maintaining relationships
OSN has allowed users to effectively maintain their relationship ties with their relatives, friends, and even strangers. They
can have the most updated news of their friends and in exchange, tell their friends about their statuses easily. The
convenience in connecting with family and friends and communicating with them has motivated users to use OSNs
(Dwyer, Hiltz & Passerini, 2007; Hann, Hui, Lee & Pang, 2007; Young, 2009). Thus, the convenience of relationship
maintenance may motivate people for using Facebook to communicate with their friends, share personal information and
interact with them.
2.2 Enjoyment
Many Facebook users use it as a hedonic platform which allows them to know the latest entertaining posts, news, music
videos, films and games. Enjoyment is the intrinsic reward derived from the use of Internet (Igbaria, Parasuraman &
Baroudi, 1996; Igbaria, Schiffma, & Wicckowshi, 1994). After receiving pleasure and fun, the audience gets actively
involved in the mass communication process (Wearden & Harper, 2000). Thus, enjoyment is a powerful predictor of users’
participation on Facebook (Rosen & Sherman, 2006).
2.3 Knowledge function (Information Seeking)
Besides entertainment, Facebook is a platform for users to gain knowledge and information from their friends and
different virtual communities. Chang et al. (1999) suggested that there were three factors related to the development of a
virtual community: Continuously updated information, protection of privacy risks, and good membership system. Virtual
community provides useful and interesting information content could stimulate people’s participation of that comm unity
(Armstrong & Hagel, 1997). Thus, the information and knowledge gained from Facebook can enhance users’ satisfaction of
using Facebook and participation of Facebook activities.
221
2.4 Perceived risks of privacy
After disclosing personal information online, there are high risks associated with users’ personal information and
information shared with other parties (Acquisti & Gross, 2006; Hogben, 2007). Examples of privacy problems include
identity fraud (Haddadi & Hui, 2010; Young & Quan-Haase, 2009), demographics and face re-identification (Gross,
Acquisti, & Heinz, 2005), online harassment and cyber bullying such as posting problematic messages on users’ Facebook
walls (Valkenburg & Jochen, 2009). Users who are concerned about privacy issues tend to avoid using OSN, disclose less
information and refuse to allow businesses to access their personal information (Gao, Sultan, & Rohm 2010; Hugl 2011;
Krasnova et al. 2010).
2.5 Social presence
The primary motivation of using social media is to connect with friends. Users of Facebook would become more active if
they find their friends are presence and interact with each other (Sachdev, 2011). Friends’ recommendations are
appealing as they share similar interests and background and are perceived as genuine and relevant (Diffley et al. 2011).
Thus, user’s perceived social presence on Facebook is directly related to their self-disclosure and participation of various
activities on Facebook.
In sum, these factors shape users’ experience of using Facebook, which affect their satisfaction of Facebook, their usage of
Facebook, their intention to disclose information about themselves and their participation of commercial activities online.
Thus, I propose the following hypotheses in this paper:
H1a:
Perceived convenience of maintaining relationship is positively related to users’ satisfaction of using Facebook.
H1b:
Perceived convenience of maintaining relationship is positively related to users’ self-disclosure on Facebook.
H2:
Perceived benefit of knowledge and information obtained is positively related to users’ satisfaction of using
Facebook.
H3a:
Enjoyment of using Facebook is positively related to users’ satisfaction of using Facebook.
H3b:
Enjoyment of using Facebook is positively related to users’ self-disclosure on Facebook.
H4a:
Perceived risk of using Facebook is negatively related to users’ satisfaction on Facebook.
H4b:
Perceived risk of using Facebook is negatively related to users’ self-disclosure on Facebook.
H4c:
Perceived risk of using Facebook is negatively related to users’ participation of commercial activities on
Facebook.
H5a:
Satisfaction of using Facebook is positively related to users’ self-disclosure on Facebook.
H5b:
Satisfaction of using Facebook is positively related to users’ participation of commercial activities on Facebook.
H6a:
Perceived social presence is positively related to users’ self-disclosure on Facebook.
H6b:
Perceived social presence is positively related to users’ participation of commercial activities on Facebook.
H7a:
User’s self-disclosure is positively related to their participation of commercial activities on Facebook.
H7b:
User’s self-disclosure is positively related to their frequency of updating their information on Facebook.
2.6 Gender differences
Factors determining the use and self-disclosure on Facebook are quite different between men and women. Specifically,
women tend to be more relationship-oriented than men (Minton & Schneider, 1980). They tend to use OSNs as tools to
connect with each other and communicate with their friends. Females are more likely to use OSNs than males (Hargittai,
2007) and they use it to strengthen and nurture existing relationship (Mazman & Usluel, 2011). Thus, convenience of using
Facebook to maintain relationship is a stronger concern for women than men, while enjoyment of using Facebook is more
important motives for male as male users tend to use it for playing games and entertaining themselves (Lin & Yu, 20008).
222
H8:
Relationship maintenance is a stronger motive for female users to disclose their information on Facebook.
H9:
Enjoyment of using Facebook is a stronger motive for male users to use Facebook and disclose their information
on Facebook.
Female users perceive more risks online and report more privacy concerns than male users do (Fogel & Nehmad, 2009).
Sheehan (1999) suggested that to protect their privacy, women tend to disclose less information when registering for a
website. Female users are more likely to read privacy notices and trust website notices than male us ers do (Milne &
Culnan, 2004). Besides, female users find their ability to control privacy settings of their OSN account was very important
(Hoy & Milne, 2010).
H10:
Perceived risk of privacy is a stronger motive for female to avoid disclosing information on Facebook.
3. Research design
3.1 Participants
The participants of this study are students from two universities in Hong Kong. There were 252 men (44.5%) and 314
women (55.5%). The majority of the participants were below 35 years old (94.9%) and most of them were students. More
than 75% of the participants had online shopping experiences. They are active users of Facebook. More than 80% of them
would log in to their Facebook account every day.
3.2 Instrument and measures
The questionnaire consisted of three sections. The first part was intended to collect participants’ attitudes and motivation
toward the use of Facebook. The second section consisted of scales measuring their behavioral pattern of using Facebook.
The last one was about the participants’ personal backgrounds. The questionnaire was prepared in both Chinese and
English. Back translation procedure was adopted to ensure equivalence of Chinese and English versions.
Previously validated scales were used to measure all constructs of the research model. Some of the scale items were
slightly reworded to reflect the current research context. Unless stated, all measures adopted a seven-point Likert scale,
described by “Strongly agree” (= 7) and “Strongly disagree” (= 1). Major measures used in the study were described in the
following table.
Table 1
Source of measurement for different constructs
Construct
Number of item and source
Example of item
Cronbach’s
alpha
0.753
Perceived
convenience
Three-item
Krasnova et al. (2010)
Facebook is convenient to inform all my
friends about my ongoing activities
Enjoyment
Three-item
Nambisan & Baron (2007) and
I spend enjoyable and relaxing time on
Facebook
0.790
Knowledge function
(Information seeking)
Four-item scale
Armstrong & Hagel (1997) and
Ducoffe (1996)
Facebook allows me to receive a lot of new
information.
0.778
Perceived privacy risk
Four-item scale
Malhotra, et al. (2004)
I feel safe publishing my personal
information on Facebook (reversed)
Overall, I find it risky to publish my personal
information on Facebook
0.753
223
Social presence
Four-item scale
Self-developed
My friends are active users of Facebook.
My friends always updated their status on
Facebook.
0.869
Satisfaction of using
Facebook
Self-disclosure
Two-item scale
Bhattacherjee (2001)
Four-item scale
Overall, I like to use Facebook.
0.787
I find time to keep my profile up-to-date.
I keep my friends updated about what is
going on in my life through Facebook.
0.875
Participation
of
commercial activities
Four-item scale
Self-developed
I always share some shopping privileges on
Facebook.
I have participated in groups established by
some brands.
0.800
3.3 Data collection and analysis
To test the hypotheses a self-administered survey was developed and administered online. The questionnaire was
administered through Google Docs. The questionnaire was sent to 620 youngsters online in Hong Kong. After excluding
extreme outliners or those with missing data, 586 questionnaires in total went through the data coding and cleaning
process for use in the final analysis.
The objective of this study is to further develop theory in predicting users’ participation of commercial activities and usage
of Facebook. In order to examine the impact of the motivational factors to users’ participation of commercial activities and
usage of Facebook, partial least squares path modeling (PLS) with reflective indicators was applied in this study , utilizing
the software package SmartPLS. While other methods of structural equation modeling are more widespread indeed, PLS
was used due to its enhanced ability to process complicated models and does not require distributional assumptions of the
sample (Chin, 1998).
PLS is a general technique for estimating path models, involving latent constructs indirectly observed by multiple
indicators. A PLS model is specified by two set of liner relations: The outer model and Inner model. Outer model refers to
the relationships between the latent and observed variables; while the inner model concerns the hypothesized
relationship between latent variables (Chin, 1998). Just like other structural equation modeling methods, PLS is also
capable of calculating key outputs such as factor loadings, average variance explained and composite reliabilities to
establish the validity and reliability of models (Fornell and Cha, 1994).
To overcome the problem of no formal significance tests for the estimated parameters in non-parametric method, the tstatistic and standard deviation of each parameter is calculated by bootstrap technique (Chin, 1998). Bootstrapping was
used to draw 2000 random bootstrap set to obtain stable standard errors and low differences between entire sample
estimates and means of subsamples (Leger, Politis & Romano, 1992). After establ ishing the validity and reliability of
measurement and structural model, a parametric multi-group analysis was used to examine the differences between male
and female Facebook users.
4. Finding
4.1 Measurement model (Outer model)
There are several analyses to assess the adequacy of the measurement model: Evaluation of component loadings of the
items for each measure, the reliability of the measures, convergent validity, and the discriminant validity of the constructs .
Table 2 summarizes the results concerning quality of each construct and Table 3 provides the square root of AVE and
inter-construct correlations.
4.1.1 Reliability of the measures
Reliability of the measures is evaluated by both Cronbach’s alpha and composite reliabilities (CR). Cronbach’s al pha is
estimated using reliability analysis procedure in SPSS and composite analysis are obtained from principal component
analysis procedure in PLS (Chin, 1998). Table 1 shows that the Cronbach’s alpha and composite reliabilities of each
construct met the desired criteria of 0.70 as recommended by Nunnally (1978).
224
4.1.2 Convergent validity and discriminant validity
Convergent validity of the model is assessed by the average variance explained (AVE) by their respective constructs is
greater than the variance unexplained (Fornell & Larcker, 1981). Table 2 indicates that all constructs have achieved an
AVE greater than 0.50, thus meeting the recommended criteria for convergent validity.
Discriminant validity was assessed by the procedures outlined by O’Cass (2002) and Fornell and Larcker (1981). O’Cass
(2002) suggested that the correlation between two constructs should not be higher than their respective reliabilities.
Fornell and Larcker (1981) suggested that the correlation between two constructs should not be higher than the square
root of their respective AVE.
The validity and reliability of the outer model parameters were estimated using PLS. An examination of the outer model
was undertaken via AVE and bootscrap t-values. Table 2 shows that the items in the model had loadings ranging from
0.671 to 0.931, which were above Shi and Wright’s (2001) criteria of 0.35. With composite reliability ranging from 0.851
to 0.923 and Cronbach alphas ranging from 0.753 to 0.875, which were all above the 0.70 criteria, i ndicating good
reliability of all scales. All constructs had an AVE greater than 0.50. Table 3 shows the inter-correlations of constructs and
respective AVE, which also indicates that the correlations were not higher than their respective square root of AV E (0.775
to 0.906). Thus, the measurement model shows a high level of convergent validity.
Table 2
Quality criteria of the constructs
Latent Variable
Item
Mean
5.843
5.529
5.662
Standard
Deviation
0.939
1.070
0.986
Standardized
Outer loading
0.854
0.748
0.853
0.672
Composite
reliability
0.860
Cronbach’s
alpha
0.757
CON1
CON2
CON3
Enjoyment
EN1
EN2
EN3
5.722
4.903
5.256
1.218
1.118
1.191
0.795
0.855
0.864
0.703
0.876
0.790
Perceived privacy risk
RISK1
RISK3
RISK4
4.655
4.814
4.812
1.457
1.300
1.248
0.878
0.870
0.671
0.659
0.851
0.753
Knowledge function
KF1
KF2
KF3
KF4
4.620
5.162
5.620
5.294
1.162
1.083
0.913
1.012
0.764
0.854
0.756
0.722
0.601
0.857
0.778
Social presence
FS1
FS2
FS3
FS4
5.594
5.691
5.657
5.567
1.078
0.903
0.871
0.894
0.802
0.874
0.894
0.815
0.717
0.910
0.869
Satisfaction
SAT1
SAT2
5.022
4.927
1.137
1.087
0.931
0.881
0.821
0.902
0.787
Self-disclosure
SD1
SD2
SD3
4.362
4.807
4.707
1.485
1.357
1.393
0.889
0.930
0.864
0.801
0.923
0.875
Update
Update
4.695
0.776
1.0
--
--
--
Participation
of
commercial activities
on Facebook
PC1
PC2
PC3
3.664
3.720
3.328
1.508
1.676
1.576
0.844
0.784
0.842
0.679
0.864
0.766
Convenience
relationship
maintenance
in
AVE
Recommended criteria of acceptance of composite reliability and Cronbach’s Alpha is 0.7 (Hair, 1997), and criteria of AVE
is 0.5 (Fornell and Larcker, 1981).
Table 3
225
Square root of AVE (diagonal elements) and inter-construct correlations
Variables
Con
Know
Enjoy
Risk
Social
Sat
SD
PC
Convenience
0.820
Knowledge
0.540
0.775
Enjoyment
0.460
0.493
0.838
Risk
-0.145
-0.161
-0.254
0.812
Social
0.342
0.422
0.327
-0.003
0.847
Satisfaction
0.515
0.532
0.580
-0.324
0.336
0.906
Self-disclosure
PC
0.462
0.228
0.491
0.245
0.500
0.351
-0.311
-0.331
0.282
0.222
0.547
0.404
0.895
0.427
Update
0.250
0.161
0.300
-0.199
0.034
0.824
0.367
0.568
0.329
Usage
1.0
After examining the inter-construct correlations, the factor loadings between each item are examined. According to Chin
(2010), to provide evidence for convergent and discriminant validity, the item loadings of each construct should be higher
than those cross loadings. In this study, the range of factor loading is from 0.671 to 0.931 while the range of cross loadings
is from 0.027 to 0.589. The measure of each item strongly related to the construct it attempts to reflect and did not have a
strong connection with another construct. Thus, this measurement model provides acceptable convergent and
discriminant validity.
4.2 Structural Model (Inner model)
After establishing the appropriateness of the measures, the next step is to provide evidence supporting the theoretical
model proposed. The proposed model of the study, presented in Figure 1, suggests relationships among a group of latent
constructs. PLS modeling is adopted to test the model specified the relationships between several latent predictors and
predicted variables (Bollen and Long, 1993). The assessment of the structural model and hypotheses is done by using
multiple indices as suggested by Lohmoller (1989) and O’Cass (2002), which included r-square (R2) for exogenousendogenous relationships, average variance accounted for, regression weights and critical ratios.
The predictive power of PLS is assessed by R 2 values of the endogenous constructs (Chin, 2006). Table 4 shows the
explained variance R2 of different endogenous variables for the model proposed. The structural model proposed
demonstrates moderate predictive power. The variance explained in key endogenous constructs was 0.477 for
satisfaction, 0.410 for self-disclosure, 0.285 for participation of commercial activities on Facebook, and 0.323 for
frequency of updating Facebook. The structural model demonstrates acceptable predictive power as the average explained
variance R2 is 0.359.
To reflect the predictive power of estimated inner and outer model relationships, goodness -of-fit (GoF) is being used as an
index for validating the PLS model. GoF is the geometric mean of the average communality and the average explained
variance R2 (Tenenhaus et al., 2005). The GoF index of the propose model is 0.526, which is at satisfactory level.
Table 4
PLS results for the theoretical model
Predicted
variable
Satisfaction
Self-disclosure
Predictor
variable
Convenience
Hypotheses
Path
t-statistics
R2
H1a
0.215
3.715**
0.477
Knowledge
H2
0.225
3.643**
Enjoyment
H3a
0.320
5.519**
Risk
H4a
-0.167
3.787**
Convenience
H1b
0.176
3.016**
Enjoyment
H3b
0.180
2.948**
Risk
H4b
-0.114
2.095*
226
Participation
Update
Satisfaction
H5a
0.259
3.956**
Social presence
H6a
0.052
1.118 (n.s.)
Satisfaction
H5b
0.163
2.490**
Risk
H4c
-0.157
2.790**
Social presence
H6b
0.077
1.448 (n.s.)
Self-disclosure
H7a
0.204
3.138**
Self-disclosure
H7b
0.562
13.499**
0.410
0.285
0.323
Average
0.374
GoF Index
0.526
**Parameter is significant at p<0.01, *parameter is significant at p<0.01
As proposed by Wold (1982), the cross-validated (CV) communality and redundancy are calculated by the blindfolding
procedure. The CV-communality measures the quality of measurement model for each block of variables while the CV redundancy measured the quality of each structural equation (Tenenhaus et al., 2005). The mean of the CV-redundancy
indices (Q 2) related to the endogenous blocks can be used to measure the global quality of the structural model. The CV communality and CV-redundancy figures of the model are positive, which show that the quality in both measurement
model and structural model is satisfactory. Figure 1 depicts my final model as well as the path coefficients, t-tests, and R2.
It incorporates the conclusions of the above analysis and includes he significant direct and indirect paths.
4.3 Power of model
To ensure there is a sufficient level of power to reject the hypothesis that the factor correlation in the population is zero ,
sufficient sample size is required. Consider the lowest factor loadings (0.671) and factor interco rrelations (0.199), a
sample size of 457 needed to achieve power equal to 0.80 (Marcoulides and Saunders, 2006). With 566 sample collected in
this study, the power of model is at a satisfactory level.
Figure 1
Structural model with path coefficient
227
4.4 Gender differences
After establishing the validity of the structural model, multi-group analysis was adopted to examine the gender differences
in their use of Facebook. Following the parametric approach introduced by Keil et al. (2000), I first run the s tandard PLS
path modeling algorithm for each group, followed by obtaining standard errors of each group by bootstrapping procedure
(Henseler, Ringle & Sinkovics, 2009). An empirical t-value was obtained to see whether it is larger than the critical value
from a t-distribution.
The results show that there are three significant path differences between the male and female Facebook users. Firstly, the
convenience of maintaining relationship have stronger impact to satisfaction for female users (p<.05), that is , female users
of Facebook have higher level of satisfaction of using Facebook if they found Facebook is useful for them to connect and
strengthen their relationship with friends. Secondly, enjoyment of using Facebook has direct effect on the self -disclosure of
male users on Facebook but not that of female users (p<.05). Thus, male users enjoying using Facebook are more willing to
share and post message related to themselves and others on their wall. Finally, the perceived risk of privacy invasion has
direct effect on the self-disclosure of female users but not that of male users (p<.05), which reflected that female users are
more on concern about the risk of privacy invasion on internet than male users do.
5. Discussion and Implications
One challenge for companies using Facebook is to get their customers not only to ‘like’ their Fan Page but also make them
to share the posts on their walls. Taken together, the results indicate that the perceived convenience of maintaining
relationship, knowledge and information received from Facebook, enjoyment from the entertaining activities of Facebook,
and perceived risk of privacy invasion are significantly related to their usage of Facebook, self -disclosure online and
participation of commercial activities on Facebook. Among youngsters in Hong Kong, their satisfaction mediates these
effects. My data also shows self-disclosure leads to more frequent updates of their status and participation of commercial
activities on Facebook. However, the findings suggest that social presence has only very limited effect on their attitudes
toward Facebook and their behavioral intentions.
This study shows that the entertainment motive was the most powerful predictor of satisfaction of using Facebook and
disclosure of personal information on Facebook. Besides, convenience of maintaining relationship and information seeking
are strong driving forces for using Facebook. In other words, many users are using Facebook as a major platform for
entertainment and in a similar fashion as blog (Hunt, Atkin & Krishnan, 2012). The proposed research model contributes
to the body of knowledge of OSNs users’ motivation theoretically and has some practical insights. Theoretically, the results
of this study extend the use of social exchange theory, play theory and use and gratification theory to Facebook behavior.
From a practical standpoint, a company using Facebook to market its brand and products should understand the nature of
social media. The primary motive of users is to connect with their friends effectively. A company should use its Page to
connect with consumers as ‘friends’ and gain their trust in the brand, instead of just providing some brand information
online (Diffley et al. 2011). The company should not use Facebook or other OSNs to push mess ages onto their customers.
Instead, they should engage consumers in conversations directly. With a true dialogue between consumers and the
company, they can create a trustful and committed relationship (Heinonen 2011). Some companies may also arrange for
employees to directly interact with their fans to impart a human touch and ensure involvement. Through these activities,
consumers may develop strong commitment to the brand community.
Enjoyment is the most important factors affecting the self-disclosure and participation of commercial activities on
Facebook. Thus, branded entertainment can be an effective way to enhance brand awareness, stimulate traffic, build brand
loyalty and engage with brand profile pages (Zhang 2010). Marketers may make use of the social media to launch some
innovative and attractive experiential activities to strengthen the affective link between the customers and the brand.
Finally, as perceived risks of privacy invasion is a barrier to self-disclosure and participation in commercial activities,
companies should reduce the collection of information and enhance the users’ perceived control over their personal
information (Hugl 2011; Krasnova et al. 2010). The requests of personal information should be fair and justified to avoid
the feeling of privacy invasion (Poddar, Mosteller, and Ellen 2009).
228
6. Conclusion and limitations
To conclude, this study examined the key motivational determinants of OSN users and identified some implications for
how a company can use its fan page to stimulate their customers to participate in their activities and build closer
relationships with the company. Despite the above contributions, this study has several limitations. The present research
is based on a snowball sample in Hong Kong. Future research should expand to a more representative sample of a
population, besides testing in other countries or markets. Besides, some other factors may also influence the dependent
variables in this study, which include perceived anonymity (Joinson and Paine 2007), users’ perceived control of their
information (Krasnova et al. 2010) and trust in OSN providers (McKnight, Choudhury, and Kacmar 2002). Thus, future
studies should extend the model to gain a more comprehensive picture of participation in commercial activities on
Facebook. Moreover, in addition, this study only focused on the use of Facebook but failed to examine the use of other OSN
vehicles such as Weibo in China. Future studies should extend to compare and contrast the use of different OSN vehicles.
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231
Session 7
232
Modeling electronic and total commerce by
innovation diffusion growth models
Electronic commerce, consumer behavior, web-based marketing, increasing returns, innovation diffusion, aggregate
diffusion models.
Rui Pascoal, Faculty of Economics, University of Coimbra, ruiapsp@fe.uc.pt
Jorge Marques, Faculty of Economics, University of Coimbra, jmarques@fe.uc.pt
Abstract
This paper focuses on the consumer's behavior modeling in the environment of electronic and total commerce. For
economic agents who are used to the traditional commerce, e-commerce is an innovative service mode, which is similar to
the adoption of an innovation. The diffusion of electronic commerce is influenced by the effects of marketing strategy,
market-centric marketing or consumer-centric marketing, in order to agents gain advantages in the market competition.
Since the mid-1990s the electronic commerce is a business phenomenon that has been growing rapidly. We analyze the
evolution of commerce, considering two time series of U. S. retail adjusted sales, that is, total and electronic commerce
sales, from the 4th quarter 1999 to the 3th quarter 2012. The pattern of evolution is estimated by fitting several aggregate
diffusion models to the series, such as exponential, Gompertz, Logistic, Bass and Michaelis -Menten, which are powerful
tools to explain and forecast the process of innovation diffusion over time.
We fit the models to the data by nonlinear least squares, except in the exponential and Bass models where the linearized
version is fitted by ordinary least squares, using the internet freely available program R. Our results seem to agree with the
fact that the first wave of electronic commerce ended in 2000. There is a high growth rhythm, still far from the saturation
level. Moreover, word to mouth effect seems to vanish in favor of mass media effect. As a final result we show that the
economic principle of diminishing returns doesn’t hold for advertising costs.
1. Introduction
The electronic commerce, e-commerce for short, has been changing the traditional market of products and services since
consumers and suppliers are using information and communication technologies. While the Internet is considered the
principal mean of communication offering the possibility of interaction, the web has turned into a primary information
resource. For economic agents who are used to the traditional shopping, e-commerce is an innovative service mode, which
is similar to the adoption of an innovation. Hence the diffusion of e-commerce is influenced by the effects of marketing
strategy, market-centric marketing or consumer-centric marketing, in order to agents gain advantages in the market
competition. In this context it is a relevant question to know whether the diminishing returns of marketing costs is
overcome by web-based marketing as mentioned by Sharma and Sheth (2004).
The diverse nature of web-based marketing with respect to traditional marketing should be reflected into a different
rhythm of evolution of total commerce and e-commerce, starting from the faster evolution of this last one. In this paper we
analyze two time series of U. S. retail adjusted sales, that is, total and e-commerce sales, from the 4th quarter 1999 to the
3th quarter 2012
(52 quarterly observations, Source: http://www.census.gov /retail/ecommerce/historic_releas es.html).
We are also interested in studying the interaction between these series, in particular concerning the following question:
does web-based marketing avoid the diminishing returns of marketing costs? The analysis employed is in according to
Romer (1986).
We consider the following decomposition:
233
where ES denote electronic sales, TS denote total sales, EC denote electronic advertising c osts and TC denotes total
advertising costs. That way we explain the evolution of the proportion of electronic sales in total sales. In face of the
greater evolution of EC with respect to TC (from 3% to 37 % between 1997 and 2007) and of greater evolution of TC with
respect to TS, it´s only natural to raise the question whether the ratio ES/EC would increase at a diminishing rate.
The pattern of evolution is estimated by fitting several aggregate diffusion models to the series, such as exponential,
Gompertz, Logistic, Bass and Michaelis-Menten. We fit the models to the data by nonlinear least squares except in the
exponential and Bass models. In the estimations we use the internet freely available program R. This comparative study is
in line with many others on the diffusion of new products innovations (Peres, Muller and Mahajan, 2010).
We analyze the question of diminishing returns using regressions based on linear (or log-linear) model of electronic sales
on accumulated Intranet advertising costs (Source: http://purplemotes.net/2009/02/16/us-advertising-expenditure1998-2007). Our results confirm the faster emergent growth of e-commerce as compared with total commerce and
increasing returns of electronic advertising costs.
The paper is organized as follows. In section 2 we present the mathematical formulation of growth models enumerated
above. In section 3 we give the estimation results in table form for e-commerce, total commerce and the ratio between
both these commerce. Section 4 includes two graphics that shows curves fitting to the data series and section 5 is
dedicated to a final remarks.
2. Growth Models
Some diffusion models compatible with rational, exponential and S-shaped form are used to fit the data. The pattern of
evolution for each of the models is described through a differential equation in which the growth rate of the dependent
variable is a function of the saturation level, the other parameters and the variable itself.
In the following table we have the functional form the corresponding differential equation for the following growth
models: exponential, logistic, Gompertz, Bass and Michaelis-Menten.
Originally, Bass (1969) and Michaelis-Menten models were introduced respectively in the study of the diffusion of durable
goods and in the study of the kinetics of enzymes in Chemistry. The last one is also used in growth models in Biology (see
for instance Lopez, France, Gerrits, Dhanoa, Humphries and Dijkstra, (2000)). As far as the authors are aware this model
hasn't be used before to study the diffusion of goods or services.
234
Table 1 provides the theoretical characterization of growth models.
Models
Functional Form
Differential Equation
Exponential
Logistic
Gompertz
Bass
Michaelis-Menten
The exponential model is characterized by a constant growth rate. There will be a saturation level only if that rate is
negative. In the logistic model the growth rate depends on the proportion of potential consumers which did not yet join
the service. The Gompertz model can be written as a limit case
of the generalized logistic given by the
differential equation:
The Bass model assumes that the population of consumers is divided in two groups constituted by innovators and
imitators. The group of innovators is influence only by the mass media communication (external influence given by the
parameter p) and the group of imitators is influence only by the word to mouth communication (internal influence given
by the parameter q). There is a distinction between new adoptions of the product as a result of the influence of advertising
and information (mass media effects) and new adoptions resulting from the influence of others consumers (word to mouth
effects). Note that the logistic model can be seen as a particular case of Bass model: if we make p = 0 and
we
obtain the differential equation of the logistic model, so this is a model without innovation part. In this model it’s not easy
to visually identity the take-off moment and, as y increases, the growth rate decreases faster than the logistic model. These
features are adequate for the characterization of a network service where the knowledge, potentiated by marketing, offer
made available is acquired in block by consumers, suppressing the usual word to mouth diffusion effect.
3. Fitting and Forecasting
We fit the growth models to the data by nonlinear least squares except in the exponential and Bass models. In these
models we use the linear and log-linear versions which are fitted by ordinary least squares. Namely, in the Bass model we
consider the discrete version of Satoh (2001). Estimations are made using the Internet freely available program R.
For each model we present the estimated coefficients and the corresponding value of the t-statistics, the residual standard
deviation, R2, saturation level and inflection point.
In Table 2 we try to capture the pattern of evolution in e-commerce sales. In the exponential model the rate of growth is
increasing over time. In the Bass model, only in the first regression of Satoh's version the coefficients have the right signs
235
except for the diffusion q that we assumed to be zero by approximation. This would be well explained by the small
influence of imitation in a mean of information such as the web, where most customers became almost immediately aware
of the existence of new services without need of intermediation of other customers. Nonetheless, the coefficients are not
statistically significant and the resulting exponential pattern has decreasing rates of growth which does not happen when
we fit the exponential model directly. For the other models, logistic and Gompertz, there is an inflexion in the growth
rhythm which leads to a saturation level given by parameter A.
Table 2 reports estimations concerning e-commerce sales.
Models
Parameters
(n=52)
T-statistic
Res. Standard Deviation
Exponential
a = 4.234
95.01
0.158
b = 0.044
30.07
(log-linear version)
0.903
A = 676.203
14.49
22.05
ν = 33.883
14.49
σ = 14.618
14.43
A = 986.2
7.524
a = 2.997
35.749
b = 0.9701
286.501
A = 744.0909
The parameters are
indirectly obtained
after those of the
linear regression.
Logistic
Gompertz
Bass
p = 0.022
q = - 0.022 ≃ 0
R2
Saturation Level
Inflection Point
No limit
No inflection point
0.959
676.203
338.102
20.02
0.979
986.2
362.803
12.95
0.946
744.091
No inflection point
(linearized version)
In Table 3 we try to capture the pattern of evolution in total commerce sales. We see that in the exponential model there is
also an increasing rate of growth over time. Note that the coefficient b is smaller than in table 2 reflecting a slower rhythm
of evolution. Here we consider a generalized version of Michaelis-Menten model where we introduce a new parameter for
a meaningful starting point of evolution, which allows to determine a saturation level much greater than the current level.
This point represents the initial moment of evolution which better fits the observations.
In the logistic and Gompertz models the saturation level is closer to the last series data than in table 2 which suggests that
in total commerce there is a more advanced stage of evolution.
Table 3 reports estimations concerning total commerce sales.
Models
Parameters
(n=52)
a = 6.606
b = 0.007
T-statistic
Logistic
A = 1120.126
ν = -12.604
σ = 25.483
Gompertz
MichaelisMenten
Exponential
Res.
Standard
Deviation
0.048
R2
Saturation Level
Inflection Point
0.825
No limit
No inflection point
18.466
-5.815
4.141
41.14
0.859
1120.126
560.063
A = 1152
a = 0.5057
b = 0.9697
14.264
9.051
108.883
41.18
0.860
1152
423.797
A=1519.52
k=38.26
t0=32.05
5.910
1.524
2.525
41.28
0.858
1519.52
No inflection point
487.34
16.40
236
The following point will be to fit the evolution of the proportion of the e-commerce in total commerce, instead of the level
as we did before. We start with the linear model taking time as the explanatory variable for which we find a positive
coefficient, b, as expected. Next we fit models with the saturation level that we report in table 4. As we see this is estimated
between 60 and 78 per cent of total commerce. The exception is the Michaelis -Menten model where we find a 1.96 level.
This may be explained by considering a 100 per cent level will be attained at some finite time horizon estimated to be such
that
We have approximately t equal to 158, that is, the first quarter of 2039.
Table 4 reports estimations concerning the ratio between electronic and total commerce sales.
Models
Linear
Exponential
Logistic
Gompertz
Michaelis-Menten
Parameters
a=0.048
b=0.009
a = -2.372
b = 0.037
A = 0.6
ν = 28.466
σ = 14.711
A = 0.788
a = 2.475
b = 0.967
A= 1.966
k= 152.511
T-statistic
19.89
113.67
-65.74
30.98
46.73
37.33
36.14
27.43
99.22
757.12
7.110
5.714
Res. Standard Deviation
0.008
0.128
0.008
0.007
0.019
We fit the linear and log-linear regressions of e-commerce sales, y, on accumulated value of a series of simple indexes of
advertising costs in Internet, s. The results are as follows:
(13.45)
(49.00)
(70.18)
(27.89)
F-statistic are respectively 4926 and 778.1. The values in parenthesis below the parameters are the corresponding tstatistics indicating the overall significance of all parameters. There is a good linear adjustment. As for the exponential
model, the adjustment is also good, but the explanatory variable coefficient is small although significant. So we conclude
that there are not indeed diminishing returns of marketing costs even when considering its accumulated level.
4. Graphic Representation of curves fitting to data
We present the joint plot of the estimated curves and the observations.
237
Figure 1 – Electronic Sales
Figure 2 – Total Sales
The crucial highlight arising from the figures is the different nature of curves. On one side, the Gompertz and logistic ones
are better fitting the data, on the other side, the Bass and Michaelis-Menten curves match mostly a general long term
movement of data. Both of them forecast the saturation level. The main feature of exponential model is the fact that it
captures the faster rhythm of e-commerce growth, however it doesn´t present a saturation level.
5. Final Remarks
In this paper we analyze and forecast the cumulative value of online shopping using several aggregate diffusion models.
The results obtained with logistic and Gompertz models show that the process of innovation diffusion for e-commerce
sales is represented by a sigmoid shape curve so that it allows determining the saturation level.
Despite some limitations in the parameter estimations using Bass and Michaelis-Menten models, we remark that some
aspects should be improved. Particularly, here we concluded that imitation coefficient q is approximately equal to zero,
this means the Bass model is represented by an exponential curve, but also with a saturation level. In future work we can
use others generalized versions of Bass model with more variables.
The Michaelis-Menten model is introduced for the first time in this approach. We may assume that advertising costs play
the same role as enzymes in Chemistry because it triggers an increase in sales (the product in Chemistry) all owing to
sustain the enterprise value (the substrate in Chemistry).
In our approach only pure growth models are considered referring to internal influences which are related to the inner
process of evolution, and potentially convergence towards a saturation level. So we aim at capturing the long term pattern
and forecasting. In the paper of Mukhopadhya, Samaddar and Nargundkar (2008) external influences were considered and
analyzed through neural networks, allowing capture also short term movements. In turn, Shan and Liu (2009) considered
several factors of business to business and business to consumers e-commerce, but without endogenous growth.
238
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239
Innovation,
dynamic
capabilities
performance in export markets
and
Resource-based view; Innovativeness; Innovation strategy; Technological capabilities; Dynamic capabilities; Performance
Margarida Vicente, Polytechnic Institute of Viseu, margarida@estv.ipv.pt
José Luís Abrantes, Polytechnic Institute of Viseu, jlabrantes@estv.ipv.pt
Cláudia Seabra, Polytechnic Institute of Viseu, cseabra@estv.ipv.pt
Mário Sérgio Teixeira, University of Trás-os-Montes e Alto Douro, mariosergio@utad.pt
Abstract
This paper discusses the connections between innovation, dynamic capabilities and performance in export markets, and
derives hypothesis from the resource-based view of the firm. We intent to demonstrate that dynamic capabilities are
significant in transforming innovation resources into performance, als o that they are an intermediate variable between
innovation and firms’ export performance. First, we examine three sets of innovation resources as antecedents of dynamic
capabilities: innovativeness, innovation strategy and technological capabilities. Secondly, we examine the relation between
dynamic capabilities and market effectiveness in export markets. Although the export literature proposes a direct impact
of resources on performance, we suggest dynamic capabilities as an intermediate variable for the relationship between
innovation (as a resource) and performance. The conceptual framework was estimated in a structural equation model,
using a sample of 471 Portuguese exporting manufacturers. The findings establish that dynamic capabilities contribute
significantly to leverage innovation resources to benefit performance in export markets. The results also demonstrate that
innovativeness, innovation strategy and technological capabilities affect market effectiveness, but its influence is
intermediated by dynamic capabilities. Implications for scholars and practitioners are discussed along with suggestions
for future research.
1. Introduction
The globalization of the world economy, the systems of economic integration, and the transmission of technologies a cross
borders awoken the interest of firms in internationalization (Levitt, 1983). Internationalization is construed as referring to
the expansion of activities to other geographical locations (Hitt, Hoskisson, and Kim, 1997) hoping to explore new possibilities
of profit (Kyläheiko et al., 2011). In this context, exporting is an important means of internationalization (Dhanaraj and
Beamish, 2003), and a cost-effective way of penetrating new foreign markets quickly (Leonidou, 1995). It is considered to
involve minimum business risks, and low commitment of resources (Leonidou et al., 2007). This activity allows firms to (i)
utilize inactive operational capabilities and improve their productive efficiency (ii) improve technological quality and the
standard of their services, and (iii) increase their profits and obtain higher rates of return (Guan and Ma, 2003). The growing
export activity emerges as the response to a new dynamic and changing environment, and its importance increases as markets
become more globalized (Pla-Barber and Alegre, 2007).
The factors that affect export performance continue to show a growing importance for investigation, which has been
dominated by the resource-based view (RBV) (e.g., Murray, Kotabe, and Zhou, 2005; Stoian, Rialp, and Rialp, 2011). According
to RBV, firms in the same industry perform differently because they control different resources and capabilities (Barney, 1991;
Newbert, 2007). Those resources and capabilities can generate sustainable competitive advantage and thus a greater
performance (Barney, 1991; Peteraf, 1993).
The increasing pressure of global competitiveness, shorter product life cycles and the easiness of imitation impel exporting
firms to use one important resource to adapt to this new business environment - innovation (Wang, Lu, and Chen, 2008).
240
Innovation has become firm’s productivity improvement, growth and competitiveness base (e.g., Salomon and Shaver, 2005a;
Wang, Lu, and Chen, 2008).
Nevertheless, valuable resources accumulation does not guarantee on its own the firm’s success (Eisenhardt and Martin, 2000;
Teece, Pisano, and Shuen, 1997). The ability to deploy resources through organizational capabilities may be more critical,
than the resources themselves, in helping a firm to obtain desirable success (DeSarbo, Di Benedetto, and Song, 2007).
Additionally, existing capabilities may serve as leverage points for the development of new ones that contribute to superior
firm’s performance (Danneels, 2002).
Dynamic capabilities emphasize the process of transforming the firm’s resources and capabilities into products that provide
superior value to its customers (Wang and Ahmed, 2007). Innovation is recognized as organization’s special asset (Guan and
Ma, 2003) that allows firms to successfully adopt new processes and methods and deve lop new and improved products to
compete more effectively in a rapidly changing environment (Lawson and Samson, 2001).
It is necessary to research more deeply the relationship between innovation, dynamic capabilities, and organizational
performance (Weerawardena and Mavondo, 2011). Dynamic capabilities is an evolving concept (Newbert, 2007), which has to
be studied as an integrated model that establishes the connection between its antecedents and effects (Hung et al., 2010;
Wang and Ahmed, 2007). Investigation in this field is particularly focused on conceptual analyses (e.g., Prange and Verdier,
2011; Teece, 2007; Winter, 2003), while empirical studies are still fairly sparse (e.g., Wu, 2010; Wu, 2007).
Using the RBV theory, this study intends to understand how firms using their dynamic capabilities identify and acquire their
needed resources, namely innovation, and transform them to achieve a better performance (Grant, 1991; Teece, Pisano, and
Shuen, 1997).
This investigation proposes to contribute to the understanding of dynamic capabilities and innovation on firms’ performance.
As a result, is also our aim to increase the comprehension of the resource-based view in exporting markets. This study main
goal is to demonstrate that dynamic capabilities are significant in transforming innovation resources and capabilities into
performance, also that they are an intermediate variable between innovation and firms’ export performance. First, we
examine three sets of innovation assets as antecedents of dynamic capabilities: innovativeness, technological capabilities and
innovation strategy. Secondly, we examine the relation between dynamic capabilities and market effectiveness in export
markets. Although the export literature proposes a direct impact of resourc es and capabilities on performance (Kaleka, 2012),
we suggest dynamic capabilities as an intermediate variable fo r the relationship between innovation assets and performance.
The paper is organized as follows: the next section offer the theoretical foundation for five hypotheses regarding the
connection between innovation, dynamic capabilities and export performance. The methodology section includes the
procedures used to test the hypotheses. In the results section, the empirical results are discussed in detail, and in the fol lowing
section, limitations and suggestions for the future research are presented. Finally, i n the last two sections, conclusions and
theoretical and practical implications are considered.
2. Theoretical background and hypotheses
The RBV of the firm (Barney, 1991; Newbert, 2007) consider that companies with valuable, rare, inimitable and nonsubstitutable resources and capabilities can generate sustainable competitive advantage by implementing strategies that
create value and which are difficult to imitate by competitors (Barney, 1991). Resources are stocks of tangibles and
intangibles assets semi-permanently tied to the firms (Wernerfelt, 1984). Capabilities are the complex coordinated
patterns of skills and knowledge that become embedded as organizational routines and practices and enable firms to make
the best use of its resources (Teece, Pisano, and Shuen, 1997).
In this context, firms are subject to a process of identification and selection of relevant resources and capabilities to
implement effective programs in order to meet the market future needs, and thus outperform competitors (Aaker, 1989).
Innovation is one key resource in creating firms’ competitive advantage (Barney, 1991; Grant, 1991).
In dynamic markets, where assets are constantly subject to change (Prange and Verdier, 2011), the mere ownership of
specific resources is insufficient (Eisenhardt and Martin, 2000; Teece, Pisano, and Shuen, 1997). Competitive advantages
may be ephemeral (Wu, 2007), and the accelerated technological progress can quickly become products obsolete. Dynamic
capabilities enables the firm “to integrate, build, and reconfigure internal and external competences to address rapidly
changing environments” (Teece, Pisano, and Shuen, 1997, p. 516).
241
This approach challenges the previous static view of the firm, and extends RBV to dynamic markets (Acedo, Barroso, and
Galan, 2006; Helfat and Peteraf, 2003). Dynamic capabilities are based on the combination and coordination of assets to
create skills and knowledge, which become new organizational processes and routines that contributes to the firm’s
competitive advantage and superior performance (Eisenhardt and Martin, 2000; Grant, 1996; Newbert, 2005; Zollo and
Winter, 2002).
In sum, the leverage of resources favors the firm’s strength enabling it to coordinate activities and respond rapidly, in a
flexible manner, to global competitors’ strategies (Eisenhardt and Martin, 2000; Griffith and Harvey, 2001; Teece, Pisano,
and Shuen, 1997). Without dynamic capabilities, innovation resource-rich firms may be rapidly drained and withdrawn
from the market (Wu, 2007).
Previous literature typically hypothesized the existence of linear relationships between innovation resources and
capabilities, and performance outcomes (e.g., Terziovski, 2010). We propose the existence of an intermediate variable dynamic capabilities - between the innovation assets and performance (Figure 1).
Our model includes market effectiveness as the endogenous variable, three exogenous variables (innovativeness,
technological capabilities, and innovation strategy), as well as an intervening variable (dynamic capabilities). The model
considers that the resources and capabilities associated with firms’ innovation precede their dynamic capabilities and
their market effectiveness. Dynamic capabilities intermediate the influence of innovation assets on firms’ performance in
export markets.
Fig. 1. Hypothesized relationships.
Innovativeness
H1
Innovation
strategy
Technological
capabilities
H2
Dynamic
capabilities
H4
Market
effectiveness
H3
2.1. Innovativeness and dynamic capabilities
Innovativeness relates to “the firm’s capacity to engage in innovation” (Hult, Hurley, and Knight, 2004, p. 429). Therefore,
workers’ participation in improvement activities, along with the creation of new ideas, are important factors when
evaluating the firm’s innovative capacity (Martínez-Román, Gamero, and Tamayo, 2011). Innovativeness is conceptualized
as an aspect of firm’s culture that motivates innovative behaviors and outcomes (Hurley and Hult, 1998).
Innovativeness can mean a simple willingness to try a new product line or a strong commitment to master the
technological advances (Lumpkin and Dess, 1996). It reflects the capacity to effectively introduce some new process,
product, or idea within the firm (Damanpour, 1991; Hurley and Hult, 1998). Thus, innovativeness is a key element for
innovation achievement (e.g., Akman and Yilmaz, 2008; Martínez-Román, Gamero, and Tamayo, 2011) and industrial
firms’ success (Hult, Hurley, and Knight, 2004).
Facing the challenge of a competitive and turbulent environment requires the transformation of products, processes,
forms of organization and methods of market the products supplied by exporting firms (Roper and Love, 2002; Roper et
al., 2010). Innovation is a response to changes that occur in firm’s internal or external environment (Hult, Hurley, and
Knight, 2004). Since environments change continuously, firms must continually adopt innovations over time (Damanpour,
1992).
242
The dynamic capabilities perspective can provide a useful theoretical lens for examini ng innovation practices and
behaviors at the firm level. Dynamic capabilities emphasize the importance of adaptation, integration and reconfiguration
of firm’s innovation assets to respond to market opportunities (Teece, Pisano, and Shuen, 1997).
In order to respond to the competitive and changing environment, it is important to stimulate innovativeness (Hult,
Hurley, and Knight, 2004). Innovativeness describes “a firm’s propensity to engage in and support new ideas, novelty,
experimentation, and creative processes that may result in new products, services, or technological processes” (Lumpkin and
Dess, 1996, p. 142). Firms with an organizational culture characterized by a high degree of innovativeness demonstrate a
greater receptivity to new ideas and innovation. This leads to a superior capacity to innovate and to a successful
adaptation to environmental changes (Hurley and Hult, 1998).
Dynamic capabilities are conceptualize as antecedents of organizational and strategic routines by which managers
transform their resources and capabilities into value-creating strategies (Eisenhardt and Martin, 2000; Zollo and Winter,
2002). Innovativeness promotes experimentation and represents a greater receptivity to new ideas and procedures, which
contributes to the renewal of organizational and strategic routines. These innovative routines allow the firm to make
strategic changes that give it the flexibility to operate in dynamic markets (Eisenhardt and Martin, 2000). In line with the
above, it is proposed the following hypothesis:
Hypothesis 1. Innovativeness is positively related to dynamic capabilities.
2.2. Innovation strategy and dynamic capabilities
Innovation is presented as an important strategic tool to ensure competitiveness (Tomiura, 2007), and capture market share
in international markets (Chadha, 2009). The relationship between innovation and strategy is essential for an efficient
management of innovation (Akman and Yilmaz, 2008; Saleh and Wang, 1993). The innovation strategy indicates to what
extent and in what ways the firm uses innovation to execute i ts business strategy (Gilbert, 1994).
Dynamic capabilities enable firms to address the demands of highly changing business environments, and include the ability to
(i) sense opportunities, (ii) seize opportunities, and (iii) sustain competitiveness through the acquisition, combination,
protection and reconfiguration of their resources and capabilities (Teece, 2007). Innovation promotes the continuous renewal
of firms (Danneels, 2002; Szeto, 2000). It allows the creation and implementation of new or improved processes, services,
products and production methods, which aim to increase the firms’ competitiveness (Forsman, 2011). Thus, innovation
strategies have a great impact on the building and evolution of dynamic capabilities (Gebauer, 2011; Lawson and Samson,
2001). In line with the above, it is proposed the following hypothesis:
Hypothesis 2. Innovation strategy is positively related to dynamic capabilities.
2.3. Technological capabilities and dynamic capabilities
In global markets, the firms’ competitive advantages result from the ability to develop new technologies more rapidly than
their competitors, and to create and disseminate technological innovations (Guan and Ma, 2003). Technological capabilities is
the technological knowledge accumulation that firms can use to develop new products or to improve existent ones (Kyläheiko,
et al., 2011).
The literature usually evaluates firms’ technological capabilities through their Research and Development (R&D) activities
(e.g., Krasnikov and Jayachandran, 2008). Technological investments carried out by firms include internal expenses in R&D
and the costs of obtaining technology from external sources (Zahra, 1996). R&D activity is a resource-based investment
(Roper and Love, 2002) and represents the most important intangible innovation expenditure (Evangelista et al., 1997). A
firm’s involvement in R&D enables it to develop and introduce new products in the market, reduce production costs and ensure
more competitive prices (Kafouros et al., 2008).
R&D reveals an internal effort to develop technological knowledge (Quintana-García and Benavides-Velasco, 2008), and
contributes to the firms’ absorptive capacity (Cohen and Levinthal, 1990). This means that R&D is not simply an internal
learning measure, but also a prerequisite for effective external learning. Firms must develop a certain level of internal
knowledge, i.e., absorptive capacity, to recognize, assimilate, and apply external information (Cohen and Levinthal, 1990;
Zahra and George, 2002).
Exporting firms investing in R&D tend to be more productive than those that only export (Aw, Roberts, and Winston, 2007; Aw,
Roberts, and Xu, 2011). This is because global operating units devote more resources to assimilate external knowledge,
namely regarding customers and suppliers, and consequently achieving more innovation outputs (Criscuolo, Haskel, and
243
Slaughter, 2010). R&D investment increases the ability to acquire and use technologies and ideas obtained from their contacts
abroad, which benefits the firm’s exposure to the export market (Aw, Roberts, and Winston, 2007).
In dynamic environments, firms must invest heavily in R&D, in order to influence the direction and speed of technological
change, and to monitor the competences of their competitors (Zahra, 1996). The organization’s R&D activities increase its
absorptive capacity, that is to say, external knowledge acquisition and intra -firm knowledge dissemination (Liao, Welsch, and
Stoica, 2003). This means that firms have greater flexibility to address specific customer needs and effectively communicate
across their departments, responding quickly to changing in export markets. More specifically, the firm’s technological
capabilities increase its dynamic capabilities. In line with the above, we propose the following hypothe sis:
Hypothesis 3. Technological intensity is positively related to dynamic capabilities.
2.4. Dynamic capabilities and export performance
Dynamic capabilities are organizational and strategic routines through which managers change their resources to gener ate
value-creating strategies (Eisenhardt and Martin, 2000). By promoting new strategic paths, dynamic capabilities contribute
to competitive advantage (Taylor and Helfat, 2009; Zahra, Sapienza, and Davidsson, 2006), and improve overall firm
performance (Teece, Pisano, and Shuen, 1997; Wu, 2007; Zollo and Winter, 2002; Zott, 2003).
The dynamic view of capabilities is particularly important in international markets (e.g., Griffith and Harvey, 2001; Prange
and Verdier, 2011; Teece, 2007), where firms are completely exposed to opportunities and threats associated to rapid changes
in customers, technology and competitors (Teece, 2007). Success depends on the firm’s ability to constantly renew and
reconfigure its resources, and adjust them to international constraints (Li, 1995). It is therefore essential that firms ensure the
convergence of their internal resources to match the demand (Camuffo and Volpato, 1996).
Dynamic capabilities are reflected through a firm’s adaptive capability in terms of strategic flexibility of resources and the
alignment between the firm’s assets, its organizational form and the constantly shifting strategic needs (Rindova and Kotha,
2001). Therefore, superior dynamic capabilities enable firms to respond more easily to opportunities in the marketplace
(Eisenhardt and Martin, 2000; Teece, Pisano, and Shuen, 1997), contributing to the improvement of performance in export
markets (e.g., Kaleka, 2002; Lisboa, Skarmeas, and Lages, 2011). In line with the above, we propose the following hypothesis:
Hypothesis 4. Dynamic capabilities are positively related to market effectiveness.
3. Methodology
3.1. Sample and data collection procedure
The study was conducted in 2012, using a sample of Portuguese exporting manufacturers. Portugal was selected because
of the existence of a small domestic market putting pressure on firms to export (Sousa and Bradley, 2008a). Since Portugal
joined the European Union (EU) in 1986, Portuguese exports have been growing exponenti ally. Portugal’s economic
growth depends critically on the success of its firms’ exporting activities (Lages, Jap, and Griffith, 2008; Lisboa, Skarmeas,
and Lages, 2011).
This study focuses exclusively on export manufacturing firms (e.g., Morgan, Kaleka, and Katsikeas, 2004). Service exporters
were excluded because of their idiosyncratic features regarding international expansion, legal regulations and performance
(Erramilli and Rao, 1993; Morgan, Kaleka, and Katsikeas, 2004; Zou and Cavusgil, 2002). Exporting manufacturers of
different industries were selected in order to increase observed variance and reinforce the extrapolation of the results
obtained (Morgan, Kaleka, and Katsikeas, 2004).
Firms normally export more than one product and apply different strategies to distinct products and/or markets (Douglas
and Wind, 1987). Therefore, an analysis was carried out at the export venture level, which is defined as the export of a
single product (or product line) to a single market (Cavusgil and Zou, 1994). Export venture is the main unit of analysis in
the most recent studies on export (e.g., Kaleka, 2012; Lages, Jap, and Griffith, 2008; Lages, Silva, and Styles, 2009; Sousa
and Bradley, 2008a). To avoid confusion and ensure relevant replies, all questions in the questionnaire asked an
assessment of the different items, by reference to the previously selected export.
A random sample of 3000 firms from the Trade & Investment Agency (AICEP Portugal Global) government database was
selected. To ensure the reliability of the data source, the person more engaged in the firm’s export operations was
indicated as key respondent. The use of a single informant is appropriate when he has exclusive access to the necessary
244
information or he is more likely to provide accurate information (Sousa, Martínez-López, and Coelho, 2008b). Additionally,
by using a single key informant, potential sources of systematic and random errors are reduced (Huber and Power, 1985).
The data used to test the model were obtained through an online questionnaire, developed from the open source software
“LimeSurvey”. The firms were invited to participate in the project by e-mail. The e-mail included the study details and a
link to the questionnaire. This method was chosen because of the difficulty in directly contacting the firms , especially when
they are geographically dispersed (e.g., Sousa, Martínez-López, and Coelho, 2008b). The person more engaged in export
operations was asked to complete the questionnaire.
Of the 3000 e-mails sent, 159 bounced back to the recipient’s mail server, 3 firms informed they were no longer in business
and 98 firms informed that they were not interested in participating. Therefore, the sample size was cut down to 2740.
After the initial invitation, three reminders were sent to all non-respondents, spaced one week apart. We obtained 471
valid questionnaires, which corresponds to a response rate of 17%. This is a very satisfactory response rate, given that
average top management survey response rates are in the range of 15% to 20 % (Menon, Bharadwaj, and Howell, 1996).
3.2. Measures
The items used to operationalize each construct were adapted on the basis of existing literature. Constructs were first
order, and we measured them with multi-item scales (see Appendix A). Some of the original items-scale were eliminated,
based on item-to total correlations and coefficient alphas used as a preliminary evaluation of and for refining our
measures.
Firm’s innovativeness. To measure innovativeness we used a six-item scale, derived from Calantone, Cavusgil and Zhao
(2002) and based on the earlier work of Hurt, Joseph and Cook (1977), Hurt and Teigen (1977) and Hollenstein (1996).
Respondents rated their level of agreement (1-strongly disagree; 5-strongly agree) with statements regarding the
introduction of new ideas, methods and behaviors related to innovation.
Innovation strategy. This construct was operationalized using a six-item scale derived from Terziovski (2010).
Respondents rated their level of agreement (1-strongly disagree; 5-strongly agree) with statements related to the
improvement of administrative routines, internal cooperation, customer satisfaction, quality improvement and
commitment to strategy.
Technological capabilities. To measure this construct we used a four-item scale, derived from Kyläheiko et al. (2011).
Respondents rated their level of agreement (1-strongly disagree; 5-strongly agree) regarding their overall view on the
level of technological knowledge and investment in long-span R&D activity.
Dynamic capabilities. To measure dynamic capabilities we used a eleven-item scale of Hung et al. (2010). Respondents
rated their level of agreement (1-strongly disagree; 5-strongly agree) with statements regarding the organizational
strategic, R&D innovative and organizational management dynamic capabilities.
Market effectiveness. This topic was operationalized using a four-item scale tapping managers’ perceptions (1-much worse
than competitors; 5-much better than competitors) of how well their export venture performed relative to major export
market competitors in terms of market share growth, sales revenue growth, acquisition of new export customers and
increased sales to current export customers (e.g., Morgan, Vorhies, and Schlegelmilch, 2006; Vorhies and Morgan, 2005).
Perceptual performance measures have been demonstrated to be valid indicators of objective performance (Venkatraman
and Ramanujam, 1986).
3.3. Survey Instrument Development
The research instrument was created based on a vast literature review on the major subjects pertaining to this study. The
translation was performed using the method of back translation. To improve content validity and questionnaire clarity, a
pre-test was conducted on a sample of 10 managers responsible for the export operations of their companies. The results
contributed to the refinement of the questionnaire.
3.4. Data profile
Exporting firms from all regions participated in the study. The size of the firm was measured by the number of full-time
employees. 26% of the firms employed less than 10 people, 18% had between 10 and 19 employees, 25% had between 20
and 49 employees, 15% between 50 and 99, 12% between 100 and 500, and 4% had more than 500 employees. The
average age of the firms included in the sample is approximately 28 years (SD=25.48, range=1-350). The vast majority of
245
the firms had considerable exporting experience. The average number of years that firms were involved with the export
activity is 16 (SD=13.84, range=1-112). Regarding the number of export markets in which firms operated, 9% exported to
a single country, 34% between 2 and 4 countries, 27% between 5 and 9, 18% between 10 and 25 and 12% to more than 25
countries. European markets were presented as the main destination of the product selected by the respondent firms
(61%).
The main distribution patterns of industries in the sample are as follows: 19% of the firms the sample were active in the
textile, clothing and leather products industries; 17% in the food and drink products industries; 15% in the machinery and
equipment industries; 10% in the glass and ceramics products industry; 10% in the metallic products industry; 9% in the
wood and cork products industry, and 9% in the chemicals and rubber products industries.
Most of the respondents held positions such as managing director (30%), exporting director (21%), president (11%), and
marketing director (6%). The average number of years they had been responsible for exporting operations in their firm is
10 (SD=8.53, range=0-44). This shows that respondents have considerable expertise about the selected export venture.
4. Results
To assess the validity of the measures, the items were subjected to a confirmatory factor analysis, using full -information
maximum likelihood (FIML) estimation procedures in LISREL 8.8 (Jöreskog and Sörbom, 1993).
4.1. Measurement model
In this model, each item is restricted to load on its priori specified factor, with the factors themselves allowed to correlate
with one another. The overall chi-square for this model is significant ( 2=215.13, df=94, p<.00). Since the chi-square
statistic is sensitive to sample size, additional fit indices were examined: the comparative fit Index (CFI=0.98), the
Incremental fit index (IFI=0.98), the Tucker-Lewis fit index (TLI=0.97) and the root mean square error of approximation
(RMSEA=0.052). The results suggest that the scale measures were internally consistent, able to discriminate and provide a
good fit of the factor model to the data.
Item reliabilities were assessed examining the loadings of the individual items in the respective constructs. The majority of
the loadings are greater than 0.7 (which is the minimum value for many researchers). There are two exceptions: for the
first item of innovation strategy construct (loading 0.64) and in the third item of dynamic capabilities construct (loading
0.56). However, a factor loading less than 0.7 but greater than 0.5 can be accepted if the other items in the same construct
present high scores, which is the case (Chin, 1998). The average loading size for all constructs was 0.77.
Convergent validity was assessed by calculating the average variance extracted (AVE) (Fornell and Larcker, 1981). It is
recommended that the AVE should be greater than 0.5, meaning that 50% or more variance of the indicators should be
taken into account (Hair et al., 2010). All values are greater than 0.51, indicating convergent validity (see Appendix A).
Composite reliabilities (Bagozzi, 1980) were also calculated for all constructs with multiple indicators. All constructs met
the suggested minimum acceptable value for composite reliability of 0.7 (Nunnally, 1978). In this research, all constructs
are reliable, with measures of internal consistency that exceed 0.75 (see Appendix A).
Discriminant validity was assessed by observing the construct intercorrelations. The root of AVE for each construct was
compared with the shared variance between constructs. The square root of the AVE should be greater than the correlation
between a construct and any other construct (Chin, 1998). Table 1 provides an overview of the construct means, standard
deviations, and correlation matrix among the five constructs. Adequate discriminant validity is evident since the square
root of AVE between any two constructs (diagonal) is greater than the correlation between those constructs (diagonal).
246
Table 1
Means, standard deviations, and correlations among constructs
Construct
Mean
Standard deviation
1
1. Innovativeness
4.02
0.65
0.78
2. Innovation strategy
3.98
0.60
0.51
0.74
3. Technological capabilities
3.46
0.78
0.62
0.47
0.76
4. Dynamic capabilities
3.98
0.55
0.47
0.54
0.48
0.72
5. Market effectiveness
3.32
0.66
0.22
0.26
0.26
0.34
a All
2
3
a,b
4
5
0.83
correlations are significant at the 0.05 level.
diagonal (in bold) shows the square roots of the average variance extracted.
b The
4.2. Structural equation model
The conceptual framework of Fig. 1 was estimated in a structural equation model using FIML estimation procedures in
LISREL 8.8. Specifically, this model contains five constructs, sixteen observable indicators, measurement and latent
variable errors, and intercorrelations between the latent constructs. The results of the structural equation model testing
suggest a good fit of the model to the data ( 2=221.47, df=97, p<.00, 2/df=2.28, CFI=0.98, IFI=0.98, TLI=0.97,
RMSEA=0.052). Table 2 presents standardized parameter estimates, t-values, and significance levels for the hypothesized
paths.
Table 2
Testing results
Hypothesis
Standardized
loading
(t-value)
Innovativeness → Dynamic capabilities
H1
0.15 (2.06*)
Innovation strategy → Dynamic capabilities
H2
0.37 (5.67**)
Technological capabilites → Dynamic capabilities
H3
0.23 (3.13**)
Dynamic capabilities → Market effectiveness
H4
0.36 (6.50**)
Causal path
**p<0.01, *p<0.05
All four hypotheses gained support. Specifically, consistent with H1, innovativeness significantly influences dynamic
capabilities (β=0.15, t-value=2.06). In line with H2, innovation strategy has a significant positive impact on dy namic
capabilities (β=0.37, t-value=5.67). In support of H3, technological capabilities have a significant positive impact on
dynamic capabilities (β=0.23, t-value=3.13). Finally, consistent with H4, dynamic capabilities significantly influences
market effectiveness (β=0.36, t-value=6.50).
One of the key advantages of using a path model is the possibility of estimating not only the direct effects, but also the
indirect and total effects among latent variables (Lages and Montgomery, 2005). The indirect effect is determined by
understanding the product of a particular variable on a second variable through its effect on a third intervening or
mediating variable (Hair, et al., 2010). Table 3 shows that all possible indirect effects are statistically significant, which
reinforces in a more sustained way the final model.
247
Table 3
Effects of exogenous and prior endogenous constructs
Dynamic capabilities
Market effectiveness
Effect of/on
Direct
Indirect
Total
Direct
Indirect
Total
Innovativeness
0.15*
(2.07)
0.15*
(2.07)
0.05*
(1.99)
0.05*
(1.99)
Innovation strategy
0.37**
(5.68)
0.37**
(5.68)
0.13**
(4.51)
0.13**
(4.51)
Technological capabilities
0.23**
(3.13)
0.23**
(3.13)
0.08**
(2.89)
0.08**
(2.89)
Dynamic capabilities
0.35**
(6.51)
0.35**
(6.51)
**p<0.01, *p<0.05
(two-tailed tests)
Notes: values in upper rows are completely standardized estimates; values in lower rows are t-values.
The indirect effects of innovativeness, innovation strategy and technological capabilities on market effectiveness highlight
the intervening role of dynamic capabilities. The results indicate that, although the direct impacts of innovativeness,
innovation strategy and technological capabilities on export performance are not significant, the indirect effects are found
to be significant (0.05, p<0.05; 0.13, p<0.01 and 0.08, p<0.01, respectively).
5. Limitations and directions for future research
This study has theoretical and methodological limitations. A limited number of predictor variables were used.
Researchers should try to include not only resources and capabilities internal to firms but also those external to firms that
represent opportunities and threats that may influence their performance (Sousa, Martínez-López, and Coelho, 2008b)
(e.g., competitive intensity, technological turbulence, market turbulence).
Dynamic capabilities were conceptualized using three measurement items. Research can continue by consulting other
scholars’ interpretations of dynamic capabilities. Moreover, it is probable that different industries have different dynamic
capabilities. This is also a subject that is worthy of further investigation.
The measures in this study were collected using a self-report online questionnaire. Therefore, relationships among
variables might be inflated by common method bias. Although we take several measures to reduce the threat of common
method variance, it remains one of the limitations of this study.
The cross-sectional data used in the present study may not be adequate for identifying fundamental relationships among
variables. Longitudinal data may improve this type of research, in that the linkage between dynamic capabilities, its
antecedents, and firms’ performance is established over time.
Finally, the generalizability of results is another limitation in this research. In order to increase generalizability, it may
prove helpful to carry out a comparative study between of two or more countries.
6. Conclusions
In this study, we demonstrate that innovativeness, technological capabilities and innovation strategy have a positive and
direct impact on dynamic capabilities. We confirm the results of the previous study of Gebauer (2011) that management
innovation contributes to the evolution of dynamic capabilities. We also demonstrate that dynamic capabilities influence
positively export firms’ market effectiveness. This enforces the RBV results, that firms with valuable, rare, inimitable and
non-substitutable resources and capabilities can achieve higher performance (Barney, 1991; Newbert, 2007).
However, without dynamic capabilities to convert resources into an advantage, the innovation assets do not translate into
performance (e.g., Wu, 2007; Zollo and Winter, 2002). Dynamic capabilities have a significant positive and direct impact
on market effectiveness. Although innovativeness, technological capabilities and innovation strategy do not directly
248
influence market effectiveness, there is a significant indirect positive impact on market effectiveness. This indirect impact
results from the fact that more dynamic capabilities are developed from innovation, which in turn leads firms to a better
market effectiveness.
Export firms with dynamic capabilities can manage innovation resources and capabilities to outperform rivals.
Consequently, this study improves the understanding firms’ performance and innovation particularly on export markets.
Firms need to develop creative ways to execute and modify their management innovation routines to improve their
dynamic capabilities and, thus, improve their market effectiveness. The most important indicator of dynamic capabilities is
innovation strategy, which is twice as important as innovativeness and technological capabi lities. Organizations with more
formal innovation strategies implement and adopt tools and techniques linked to innovation activities that are more
efficient (Nijssen and Frambach, 2000) and improve their dynamic capabilities.
Therefore, it can be reasoned that innovativeness, technological capabilities and innovation strategy alone would not
generate superior performance. Instead, firms have to be flexible in understanding customers’ needs and in
communicating among departments to make innovation effective.
7. Implications
Using the RBV theory, this study intended to understand how a set of three innovation assets (innovativeness,
technological capabilities and innovation strategy) influences dynamic capabilities and performance in export markets.
The findings offer insights into these issues and provide significant implications for international marketing theory and
practice.
Improving innovation assets is extremely important since dynamic capabilities must act on those assets in place to ensure
a successful performance. When firm’s managers develop innovativeness, technological capabilities and innovation
strategy, should also consider developing dynamic capabilities in order to influence the firm’s market performance
effectively.
Innovation strategy appears as the most important factor for the development of firm’s dynamic capabilities. Managers
must implement a formal innovation strategy, and guarantee employees cooperation and commitment to its successful
implementation. This, in turn, will lead to a higher capability do respond and anticipate changes in the export markets.
Managers must also emphasize the importance of innovativeness and technological capabilities for firm’s success .
Stimulating creativity and promoting R&D activities, firm is more apt to respond to the competitive and turbulent
environment in foreign markets.
This study also provides valuable recommendations on how to evaluate the quality of export firms by assessing their
dynamic capabilities. Specifically, one should focus the firm’s flexibility to understand specific needs of customers, to
communicate and coordinate effectively among departments and to helps employees to balance the life of work and family.
Acknowledgments
The authors kindly acknowledge the support from the Portuguese Foundation for Science and Technology (FCT) through
the project PEst-OE/CED/UI4016/2011, and Center for Studies in Education, Technologies and Health (CI&DETS).
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Appendix A
Constructs, scale items, and reliabilities.
Construct/items
Innovativeness (α=0.81, ρvc(n)=0.61, ρ=0.82)
Scale: 1-strongly disagree; 5-strongly agree
1.Our company frequently tries out new ideas
2.Our company seeks out new ways to do things
3.Our company is creative in its methods of operation
Innovation strategy (α=0.77, ρvc(n)=0.55, ρ=0.79)
1. Internal cooperation is an important part of innovation strategy implementation
2. Formulating innovation strategy increases employee skills
3. Improving employee commitment, morale, or both is part of our innovation
strategy monitoring
Technological capabilities (α=0.80, ρvc(n)=0.57, ρ=0.80)
1. Our technological capabilities are top class
2. The success of our R&D activities is based on long-term know-how
3. We have invested heavily in certain R&D projects
Dynamic capabilities (α=0.72, ρvc(n)=0.51, ρ=0.75)
1. My organization has the flexibility to understand the specific needs of
customers
2. My organization has the flexibility to communicate and coordinate effectively
among departments
3. My organization helps employees to balance the life of work and family
Market effectiveness (α=0.89, ρvc(n)=0.69, ρ=0.90)
Scale: 1-much worse than competitors; 5-much better than competitors
1. Export venture’s market share growth
2. Growth in export venture sales revenue
3. Acquiring new export venture customers
4. Increasing sales to current export customers
Standardized
loadings
t-value
0.70
0.86
0.78
16.17
21.16
18.53
0.64
0.79
14.13
18.20
0.79
18.09
0.72
0.73
0.82
16.56
16.78
19.37
0.73
16.21
0.83
0.56
18.77
12.01
0.86
0.92
0.76
0.76
22.57
25.13
18.84
18.89
α=internal reliability; ρvc(n)= variance extracted; ρ=composite reliability.
254
An Analysis of the Decision Structure for Food
Innovation on the Basis of Consumer Age
Consumer behavior, novel foods, age, means-end chain, laddering, coffee.
Ramo Barrena, Universidad Pública de Navarra, ramo.barrena@unavarra.es
Teresa García, Universidad Pública de Navarra, tegar@unavarra.es
Dena Camarena, Universidad de Sonora, dena.camarena@eca.uson.mx
Abstract
In recent years, market globalization and greater competition plus ever increasing consumer sophistication have driven
the food industry to innovate in search of improved market positions. Food innovations, however, have a high failure rate.
Among other reasons, this is due to failure to understand the benefits consumers look for in the products they buy or
which traits of their own personality they project through these products.
This study analyzes the decision structures of consumers in different age ranges (one of the variables traditionally seen as
significant when it comes to adopting innovations) in relation to a novel food product in order to determine potential
differences among these structures. Our research was carried out applying means -end chain theory that allows us to
establish relationships between attributes of a product with the benefits they symbolize and the personal values
consumers try to achieve through them.
Two products were selected to determine the role played by consumers’ ages in the acceptance of food innovations and
the potential differences in decision structure when consumers of different ages are presented with a novel food product.
We chose a traditional product as the control product (coffee) and a novel coffee-derived product (Nespresso type coffee
capsules). Results show that consumption decisions were similar regardless of consumers’ age when they are presented
with a traditional consumer product. However, the structure becomes more complex in the case of a novel food item,
especially among young consumers.
1. Introduction and objectives
The food market has high levels of competition and saturation, which means companies have to keep developing strategies
in order to improve or even sustain their position or even to survive (Baregheh et al., 2009; Naidoo, 2010). One of those
strategies is product innovation aimed at satisfying consumers’ needs, and targeting market niches with specific needs.
While product innovation is important in terms of business strategy and growth, the fact is that the success rate for newly
launched products is relatively low, with failure rates in the 40%-90% range (Gourville 2006, Gresham and et al., 2006).
This is often caused by failure to understand consumers and by a lack of market orientation on the part of businesses.
Consumers are getting more and more variable and less predictable due, among other reasons, to significant changes in
lifestyles, demographic changes, cultural exchange and high communication levels. (Imram, 1999; Capitanio et al., 2009;
Fortuin and Omta, 2009; Kühne et al., 2010). In view of this, better knowledge of what consumers want, of their changing
needs, and how these changes can be immediately addressed, in other words, market orientation, becomes not only a key
to success but a key to survival too for agro-food industries (Costa et al., 2004). Innovation success is based on
understanding consumers, what features and benefits they look for in the products they buy and consume and the aspects
of their own personalities they project through these products.
Means-end chain (MEC) theory allows us to establish relationships between the features or specifications considered in a
given product with the benefits they symbolize and the personal values consumers try to achieve through them. Thus, this
approach gives us an idea of the aspects consumers take into account when it comes to buying a given product. This means
that understanding consumers’ adoption process and cognitive structure can help improve positioning and launch
255
strategies related to food innovations. Consumer behavior oriented research on innovations has focused on the analysis of
the mental, behavior and demographic traits associated with willingness to adopt novel products. Some studies relate
adoption of novel products to consumers’ personal traits (Dickerson and Gentry, 1983; Michon et al., 2010). The variables
normally included are income, age, family group size, education level, etc. Although some studies show that the effect of
demographic variables tends to be mild, there is general agreement on the fact that consumers who innovate generally
have high income and education levels, are young, have higher social mobility, are more prone to making risky decisions,
and have higher opinion leadership (Dickerson and Gentry, 1983; Gatignon and Robertson, 1991; Rogers, 1995; Im, Bayus,
Mason, 2003).
The age variable generally appears in marketing literature dealing with market segmentation and consumer behavior. The
specific phase in the cycle of life that people are going through accounts for the general structure of certain consumer
choices (Grande, 1993), which means that companies cannot work in the same way for all age segments if they want to
succeed at getting consumers to adopt new goods and services. There is a broad-based consensus in the literature on the
fact that age has an adverse effect over consumers’ innovation drive. Younger consumers tend to be more innovative
(Rogers, 2003) and older consumers are more reluctant to innovate (Leek et al., 2001, Tellis, Yin and Bell, 2009).
Age generally affects innovation; young people are less risk-averse (Assael, 1987; Burgess and Steenkamp, 2006). This
trend is seen in the ecological food market (Rimal and Moon, 2005; Tsakiridou et al., 2008; Bartels and Reinders, 2010,
among others), the functional food market (Leek et al., 2001; Krystallis et al., 2010, and others) and the ethnic food market
(Pelchat and Pliner, 1995; Xu et al., 2004).
Lunsford and Burnett (1992) considered a series of potential barriers to the adoption of novel products among older
consumers and suggested that there are a number of incompatibility limitations with these products from the
psychological point of view as older consumers fail to see clear benefits in them and the brand image or that of the product
may be inconsistent with older consumers’ self-image. Our study attempts to analyze consumers’ decision strategies
according to their age and in relation to a novel food product in order to determine differentiating elements. This
knowledge will help us identify the key elements for each age group and establish guidelines leading to improved rates of
novel food product adoption. Although the age factor in relation to the adoption of novel food products has been widely
analyzed, there are currently no studies establishing differences in decision structure according to age using means -end
chain theory. That is to say, there are no studies analyzing the extent to which the desired specifications in a product, the
benefits pursued and the personal values in play vary according to consumers’ age when a novel food product is bought;
this is the differentiating element in our study.
Means-end chain theory, the theoretical basis of our research is presented in the next section. Section 3 explains the
methodology used and Section 4 gives shows the main results. Finally, the main conclusions and implications are
presented, as well as the limitations of the study.
2. Theoretical framework. Means-end chain (MEC)
Gutman (1982) introduced means-end chain (MEC) theory into the field of marketing and consumer research, as a way of
explaining the relationship between consumer knowledge and consumer behavior. MEC is a cognitive structure that links
consumers’ knowledge of products to their knowledge of certain consequences and values connected with those products
(Ter Hofstede et al., 1998).
The main premise of MEC is that consumers learn to select those products that feature the attributes that allow them to
achieve their desired ends (Reynolds and Gutman, 1984, Ter Hofstede et al., 1998; Walker y Olson, 1991; Grunert y Valli,
2001; Olson y Reynolds, 2001). MEC theory assumes that people base their purchase choices not on the products
themselves but on the benefits to be gained from their consumption. A means -end chain begins with a product, service or
performance attribute and establishes a sequence of links with personal values through the consumer’s perceptions of the
consequences or benefits to be derived from it.
Means-end chain theory suggests that product knowledge in consumers is hierarchically organized by level of abstraction
(Young and Feigin, 1975; Howard, 1977, Gutman, 1982; Reynolds et al., 1995). The higher the level of abstraction, the
stronger and more direct the relationship with the person (Olson and Reynolds, 1983). In the analysis of mental images,
each basic level of abstraction can be subdivided into distinct categories of abstraction. In this respect, Walker and Olson
(1991) propose a six-level MEC. The three lower levels (concrete attributes, abstract attributes and functional
256
consequences) form the consumer’s product knowledge, while the three upper levels (psychosocial consequences,
instrumental values and terminal values) comprise the consumer’s self-knowledge. Concrete attributes are those
properties or characteristics of the product, service or performance that may be desired or pursued by consumers.
Abstract attributes are those that cannot be checked prior to consumption of the product and must therefore be inferred
from internal or external cues. Functional consequences are the tangible benefits that consumers derive from product or
service attributes as a direct result of consumption. Psychosocial consequences are benefits of a more personal, social and
less tangible nature. Instrumental values represent desirable modes of behavior for the attainment of desirable end-states,
and finally, terminal values represent desirable end-states. Having presented our theoretical framework, we will focus our
attention in the next section on the methodology used in this research.
3. Methodology
3.1. Product choice
Two products were selected to determine the role played by consumers’ ages in the acceptance of food innovations and
the potential differences in decision structure when consumers of different ages are presented with a novel food product.
We chose a traditional product as the control product (coffee) and a novel coffee-derived product (Nespresso type coffee
capsules). These two products were chosen bearing in mind that coffee - both in its traditional and innovative formats - is
a popular and widely consumed product among the Spanish population. According to data from the Spanish Ministerio de
Agricultura, Alimentación y Medio Ambiente (MARM) [Ministry of Agriculture, Food and the Environment] 82% of the
population drink coffee in its traditional format. The proposed innovation (coffee capsules) was launched in 2004-20059,
and its penetration in the Spanish market has tripled over the last two years to reach over 1.5 million regular consumers
(8% of the total coffee consumption volume). This product is expected to amount to 20% of total coffee sales in the next
five years (MARM, 2011).
3.2. Laddering interviews
The usual method used to obtain means-end chains is a qualitative interviewing technique known as laddering. Laddering
interviews are personal, individual, in-depth, semi-structured interviews aimed at revealing the attribute-consequencevalue associations made by consumers with respect to a particular product. Laddering interviews comprise a three-stage
process. In the first stage, the researcher identifies the relevant attributes of the test product. In the second stage, subjects
are invited through a series of questions of the type ‘Why is that important to you?’ to explain why the attributes chosen in
the first stage are relevant in terms of their associated consequences and values. In the third stage, the associations or
linkages are used to form an implication matrix from which to generate a hierarchical value map (HVM) (Nielsen et al.,
1998; Ter Hofstede et al., 1998; Miele and Parisi, 2000 et al.).
One of the key issues to be considered when constructing a HVM is the choice of cut-off level, as only associations above
this level will be mapped (Leppard et al., 2004). The method adopted to determine the cut-off point in our case is known as
‘top-down ranking’, originally proposed by Leppard et al. (2004). This method is based on the premise that all participants
in a survey will not necessarily make the same number of links between two levels of abstraction. Usually, larger numbers
of links are more common at lower levels of abstraction than at higher levels. Therefore, it may not be appropriate to use
the same cut-off point when the number of links varies between different levels of abstraction. The strategy underlining
this method fixes the cut-off point according to a concept known as the ‘importance link’. The most important link is the
one most often repeated. Using this approach, one obtains different HVMs for different orderings . HVM1 represents the
‘most important’ or ‘best’ linkages, in the sense that any other choice of cut-off value or values must produce a HVM based
on smaller and thus less strongly associated linkages between levels of abstraction. HVM1 is also the least co mplicated and
most easily interpreted of all possible HVMs as it has the least number of elements displayed. Similarly, a HVM2 is
constructed by repeating the above process but defining the relevant cut-off levels at the second largest cell entry at each
level of abstraction. Thus, additional linkages are created by using a less stringent requirement (second highest vs. first
highest) which results in a more complex HVM. Continuing in this way, choosing successively smaller cell entries in the
manner described above, a sequence of HVMs can be created. The advantage of this method is that it allows one to observe
9
Coffee capsules were launched in 1986, In Spain, however, it is a novel food product as it entered Spanish market much later (Nesspreso, 2012).
257
how the most important links between different levels of abstraction gradually emerge, while also allowing for the
comparison of groups with the same cut-off point. Furthermore, this cut-off level captures a reasonable amount of the
initial data shown in the final variance of the model.
3.3. Data collection
The data to achieve our objectives was collected by means of a personal survey carried out in Navarra in March-April,
2011. The three-section survey target was household food buyers. The first section comprised questions related to
consumption frequency for novel food products and their valued qualities when it comes to purchasing them. The second
part of the questionnaire focused on applying the methodology in order to find out the respondents’ means -end chains
(laddering interview). Finally, the third part was related to the respondents’ socio-demographic characteristics and
lifestyles.
This study uses hard laddering10 because, as noted by Russell et al. (2004), the technique is easier to apply, as the
interview is shorter and the respondent feels less pressure (Botschen and Hemetsberger, 1998). The specific technique
chosen for this part of the questionnaire was the ‘Association Pattern Technique’ (APT), which was introduced by Ter
Hofstede et al. (1998) and is generally approved for use with samples of more than 50 individuals (Russell et al., 2004).
This method comprises two independent matrices: an Attribute–Consequence (AC) matrix and a Consequence–Value (CV)
matrix; respondents have to establish relationships between these elements.
Table 1. Identification and classification of the attributes, consequences and values selected for the analyzed product
Attributes
Consequences
-Price
Functional
-Appetizing and enjoyable
-Taste
consequences to drink
-Aroma
-It is a healthy food
-Brand
-Good value for money
-Label information
-I’m well informed
-Package
-Easy to purchase
-Geographic origin
-Appeals to all the family
-Type of coffee
-it is familiar
-It saves me time
-My concentration is
better and I feel more
awake
-It make me nervous
-It helps me relax and rest
Abstract
-Quality
Psychological
-I’m consuming a quality
attributes -Ease
of consequences product
preparation
-Good eating habits
-Beneficial health
-Provides
me
with
effect
happiness
and
-Caffeine content
satisfaction
-Brings back memories
-Gives me a sense of
cultural identification
-No health risk
-Status symbol
-I feel I’m doing the right
-Makes me feel more
cosmopolitan
Concrete
attributes
Instrumental
value
Terminal
values
Values
-Provides fun, pleasure
and enjoyment
-Enhances my quality of
life and security
-Gives me an emotional
boost
-Makes me feel more
successful
social belonging
-Improves my
relationships with others
self-fulfillment and
accomplishment
-Makes me feel more
respected by others
-Gives me peace of
mind, dignity and self
respect
The attributes selected for the attribute-consequence and value-consequence matrices were drawn from the reviewed
literature and consultation with experts (academic staff at the Universidad Pública de Navarra) and through a pilot survey
carried on people there. This produced a set of 12 attributes for coffee (Table 1). In the same way, we extracted what we
considered to be the 20 most relevant functional and psychological consequences associated with the consumption of
There are two types of laddering: hard and soft (Grunert and Grunert, 1995; Botschen and Thelen, 1998). Hard laddering includes all those techniques
in which subjects are required in a structured interview to generate or verify associations between elements on individual ladders in sequences showing
increasing levels of abstraction. Soft laddering respects the respondent’s natural flow of discourse throughout the interview and the attribute–
consequence–value linkages have to be reconstructed afterwards.
10
258
coffee. Finally, we used the list of values (LOV) proposed by Kahle (1985), which incorporated nine new consumptionrelated instrumental and terminal personal values (Table 1).
The study used a convenience sample of coffee purchasers and consumers. Vannopen et al. (1999), approve the use of
convenience samples in laddering procedures, given the complexity of the process and the fact that respondents are
familiar with the product and therefore capable of expressing more ideas on the subject. In this case the final sample
consisted of 98 people in charge of buying household food who responded to a personal invitation sent by e-mail to
Universidad Pública de Navarra staff (academics, non-academic staff and students).This size of sample is in line with the
majority of the past surveys using this technique found in the review of the literature. The characteristics of the sample
and of the population of Navarre are shown below in Table 2.
Table 2. Characteristics of the sample and the Navarre (Spanish region) population as a whole
Coffee sample
Spanish region
Navarre
28.03%
71.97%
49.77%
50.23%
Average age
40.03
40.50
Size of household
3.06
2.90
Gender
Male
Female
Level of education
Elementary
18.67%
Intermediate
17.99%
52.24%
Higher
82.10%
29.09%
Source: National Statistics Institute (INE; Spain) (2007) and authors’ own calculations
It shows that the biggest difference is the higher percentage of participants with higher education in the two samples
analyzed, because the surveys were conducted in the university. The table also shows a higher number of wom en in the
sample; this is probably due to the fact that the survey was responded to by people in charge of household purchases and
there are still a higher number of women in charge of this chore. However, even though the sample could be considered
biased in terms of its educational level, other elements, such as household composition, age and gender, are similar to
those in the population of Navarre as a whole. Interviewing was conducted in groups of approximately 10 subjects who
were given an explanation of the questionnaire content, its component parts and instructions for completion. Special
emphasis was placed on explaining the laddering technique and an example was given of the MEC relationship to ensure a
fuller understanding of the process. The duration of the interview ranged between 40 and 60 min. Mecanalyst Plus 1.0.8.
software was used to construct ladders for all the sample respondents. The main findings from the data analysis are
presented below.
4. Results
4.1. Segment characterization
In order to find out whether consumers’ decision structures with regard to food innovation vary
according to age, the sample was segmented based on this variable. Two age groups were established:
18-35 year old interviewees (the “young” group) and 36-65 year old interviewees (the “adult” group).
Table 3 shows the socio-demographic characteristics and lifestyles and the consumption frequency of the two groups
determined a priori as well as the corresponding statistics in order to determine significant differences between these two
segments. The young group constitutes almost 39% of the sample, the adult group being the biggest segment (61%). In
terms of socio-demographic characteristics, differences can be seen in family size; the adult group has bigger family sizes
(a logical result given the family life cycle stage each of the groups is going through). Differences are also observed in
terms of lifestyles; the adult group tends to be more participative in NGOs and more concerned about health related
matters (medical check-ups, eating additive-free food and reducing stress), which is consistent with results found by other
authors (Rimal, 2001; Verbeke, 2004 inter alia).
259
Table 3. Socio-demographic characteristics, lifestyles and consumption frequency by respondents’ ages
Household size *
Lifestyles
I reduce salt intake
I am a vegetarian
I exercise regularly
I try to avoid industrial products
I regularly eat fruit and vegetables
I eat red meat in moderation
I am member of a wildlife conservation association
I try to eat additive-free food
I have regular health check-ups
I try to reduce stress
I participate in NGOs
I see a dentist regularly
I try to lead an organized, methodical life
I try to balance work and prívate life
I read food products’ labels
Gender
Male
Female
Level of education
Secondary
Higher
Coffee
Do not consume
Occasional consumption
Regular consumption
Coffee capsules
Do not consume
Occasional consumption
Regular consumption
Young
38.8%
2.72
Adults
61.2%
3.19
Snedecor’s F
Sig.
2.831
0.096
3.18
1.41
3.54
2.87
4.09
3.39
1.06
2.40
2.46
2.62
1.68
3.28
3.43
3.75
3.54
3.11
1.65
3.21
3.28
4.33
3.46
1.20
2.89
3.27
3.19
2.50
3.71
3.49
3.99
3.95
0.066
1.157
1.179
1.954
1.290
0.063
0.968
2.839
5.963
5.122
6.076
2.135
0.054
1.120
2.653
0.798
0.285
0.280
0.165
0.259
0.802
0.328
0.095*
0.016**
0.026**
0.016**
0.147
0.817
0.293
0.107
Young
Adults
Chi-square test
0.123
Sig.
0.726
25.8%
74.2%
29.3%
70.7%
0.020
0.808
23.2%
76.8%
25.9%
74.1%
2.322
0.313
18.2%
81.8%
6.3%
14.3%
79.4%
5.730
0.038**
37.6%
37.3%
25.2%
58.7%
19.0%
22.3%
***, **, * show the existence of significant differences between groups for 1%, 5%, 10% maximum error level respectively.
Consumption levels for traditional coffee are very high; 80% of the population consumes this product regularly. In the case
of coffee capsules, the consumption frequency is much lower, which is consistent with the literature related to the
dissemination and adoption of innovations. In this case consumption frequency differences are significant and
consumption levels are clearly higher in the young segment. This is consistent with the literature related to adoption of
innovations, which holds that innovations have higher acceptance lev els among young consumers (Leek et al., 2001, Tellis,
Yin and Bell, 2009).
4.2. Cut-off point of hierarchical value maps (HVM)
Having obtained the socio-demographic profile of each group and following the construction of the hierarchical value
maps, it was necessary to determine the cut-off point of the HVMs. All the maps constructed were level 6 maps; that is,
they show all the attribute-consequence and consequence-value linkages at and above the frequency of the one ranked
sixth in importance. The cut-off point obtained following the methodology proposed by Leppard et al. (2004) is different
for each level of abstraction and group of respondents, while allowing for comparison between maps. Almost all of these
linkages are made by over 50.0% of the group in each case, thus satisfying the minimum requirement suggested by the
majority of authors.
260
4.3 Effect of exposure to innovation by consumers’ ages
This section presents the HVM results for traditional coffee and coffee capsules both for the young and the adult groups.
This will allow us to determine whether or not consumers’ cognitive structures vary when exposed to a novel food product
(coffee capsules). Figure 1 shows the hierarchical value maps for both segments in relation to traditional coffee and Figure
2 shows the results for coffee capsules. Each element (attribute, consequence or value) in the chain appears on the maps
alongside the percentage of respondents who mentioned that linkage.
Figure 1 shows that the HVMs for the young and adult segments in the case of traditional coffee are quite similar in terms
of attributes, consequences and values considered. The most significant differences are related to the “caffeine content”
attribute in the case of the young group and the “aroma” attribute for adults. With regard to consequences, only one
difference was observed, “being more concentrated and awake”, which was valued by the young group; the same
happened with the terminal value “improves my relationship with others”.
Figure 2, which shows coffee capsules HVMs for the young and the adult segments respectively, indicate at a glance more
complexity in the novel food product maps than in the traditional coffee ones for each of the two segments considered. A
more detailed analysis of the HVMs for the young segment shows differences in the additional consideration of the
concrete attributes “aroma” and “packaging” and the abstract attributes “familiarity” and “ product preparation” in the
case of coffee capsules. In terms of consequences, those related to the convenience and user-friendliness of coffee capsules
(“make my life easier”, “they save me time) are noteworthy as well as those which give consumers a sense of being “more
cosmopolitan” and “having higher status”. It is worth mentioning that “no risk perception” does not appear on the coffee
capsules map, which implies that consumers somehow perceive that they are riskier than traditional coffee. In terms of
values, a higher number of values for the novel food product are observed in the young segment, values related to “being
more successful”, “a sense of social belonging” and “having peace of mind, dignity and self-respect”.
In the case of adult consumers, the maps differ in one specific attribute, “price” which only appears in the traditional coffee
HVM, and in “ease of preparation” as an abstract attribute in the case of coffee capsules. With regard to benefits or
consequences, perceptions of regular coffee as a “good value for money” product and as a product that “brings back
memories” are noteworthy. In the case of capsules, consumers identify a higher number of consequences, some of them
related to the fact that this innovation “makes consumers’ lives’ easier” and to the fact that they perceive themselves as
more cosmopolitan people when they consume it.
These results seem to indicate that in the case of a regularly consumed product consumers’ cognitive structures are similar
regardless of their age. When presented with a novel food product, consumers’ cognitive structure becomes more complex.
These differences are more patent in the young group.
261
Figure 1.
Attributes
Consequences
Values
improves my
relationships with others
Provides fun,
pleasure and
enjoyment
gives me an
emotional boost
73.6%
84.2%
84.2%
brings back
memories
appetising and
enjoyable to
drink
my
concentration is
better and I feel
more awake
81.6%
78.9%
68.4%
Provides me
with happiness
and satisfaction
73.7%
Abstract
attributes
enhances my quality of
life and security
78.9%
81.6%
Functional
consequences
Psychological
consequences
Instrumental Terminal
values
values
Level 6 Hierarchical Value Map for the Young Group and Traditional Coffee
good eating
habits
89.5%
I’m consuming
a quality
producto
no
health risk
it is a healthy
food
good value for
money
76.3%
97.3%
71.0%
it is familiar
68.4%
I’m well
informed
81.5%
quality
86.8%
81.5%
Concrete
attributes
caffeine
content
label
information
price
taste
brand
Concrete
attributes
Abstract
attributes
Functional
consequences
Psychological
consequences
values
values
Level 6 Hierarchical Value Map for the Adult Group and Traditional Coffee
Attributes
Consequences
Values
provides fun, pleasure
and enjoyment
Enhances my quality of
life and security
58.3%
63.3%
61.6%
no health risk
68,3%
56.6%
61.6%
I’m consuming
a quality
product
good eating
habits
it is a healthy
food
gives me an
emotional boost
provides me
with happiness
and satisfaction
brings back
memories
appetising and
enjoyable to
drink
70.0%
it is familiar
93.3%
I’m well
informed
good value for
money
100%
quality
73.3%
85.0%
78.3%
81.7%
brand
label
information
aroma
taste
price
262
Figure 2.
Functional
consequences
Psychological
consequences
values
values
Level 6 Hierarchical Value Map for the Young Group and Coffee Capsules
gives me a sense of social
belonging
enhances my quality
of life and security
makes me feel more
successful
50.0%
68.4%
60,5%
makes me
feel more
cosmopolitan
I’m consuming a
quality product
65.8%
50.0%
good eating
habits
57.9%
status symbol
my
it is a healthy
concentration is
food
better and I feel
good value for
more awake
money
65.8%
it makes
me nervous
it is familiar
provides fun,
pleasure and
enjoyment
50.0%
55.2%
I feel I’m
doing the
right
appetising and
enjoyable to
drink
it saves me time
63.2%
I’m well
informed
makes life
easier
7
55.2%
78.9%
provides me
with happiness
and satisfaction
71.1%
63.2%
71.1%
gives me an
emotional
boost
55.2%
50.0%
Attributes
Consequences
Values
gives me peace of mind,
dignity and self respect
71.1%
63.2%
Abstract
attributes
57.9%
55.2%
65.8%
caffeine
content
81.6%
ease
of preparation
57.9%
quality
71.1%
71.1%
65.8%
Concrete
attributes
55.2%
label
information
price
brand
taste
aroma
package
Functional
consequences
Psychological
consequences
values
values
Level 6 Hierarchical Value Map for the Adult Group and Coffee Capsules
Attributes
Consequences
Values
gives me a sense
of social belonging
60.0%
65.0%
enhances my quality of
life and security
provides fun, pleasure
and enjoyment
65.0%
60.0%
70.0%
status
symbol
me siento
identificado
culturalmente
makes me feel
more
cosmopolitan
it helps me relax
and rest
I’m well
informed
81.7%
no health risk
86.7%
60.0%
I’m consuming a
quality product
provides me
with happiness
and satisfaction
es apetecible,
disfruto
bebiéndolo
76.6%
70.0%
good eating
habits
it is a healthy
food
it is familiar
75.0%
it saves me time
makes life
easier
66.7%
80.0%
66.7%
66.7%
Abstract
attributes
86.6%
71.6%
quality
83.3%
Concrete
attributres
ease of
preparation
label
information
taste
aroma
brand
263
4.4. Effect of age on decision structure in food innovation
Once the fact that there actually exist differences in the cognitive structure when consumers are exposed to food
innovation has been determined, we need to find out whether or not the decision structure related to the novel product
differs according to consumers’ages. To this end the HVM for young and adult consumers in coffee capsules are compared
(Figures 3 and 4).
The initial analysis of the results obtained in relation to attributes reveals some interesting similarities between the two
groups studied. Both segments are interested in concrete attributes such as “taste”, “brand”, “aroma” and “label
information” i.e. mostly product organoleptic aspects, brand and information. As authors such as Grunert et al. (2003)
have pointed out, sensory attributes, especially appearance and taste, have always been among the key factors influenci ng
consumers when rating food products. In the case of abstract attributes, both groups perceive coffee capsules as a
“quality”and “easy to prepare” product. In terms of differences in attributes, two concrete attributes are mentioned only by
the young group: “price” and “packaging”. The same happens with two abstract attributes: “caffeine content” and “product
familiarity”. These results show higher interest in packaging and caffeine content on the part of young consumers.
When the consequences or benefits mentioned by both groups are analyzed in more depth, functional consequences
related to pleasure (“it’s appetizing and enjoyable to drink”) as well as those related to convenience (“it makes my life
easier”, “it saves me time”) and being informed (“I’m well informed”) are the ones which stand out. Similarities also
emerge in terms of psychological consequences, specifically in those referring to consuming a quality product and having
good eating habits as well as perception of higher status and cosmopolitanism when consuming coffee capsules. It should
be noted that adults consume this product when they consider “it does not pose a risk to human health” while young
consumers “feel they do the right thing”, which shows that consumption of a novel food produc t is associated with the
perception of being presented with a risk-free product. Differences were found in the usefulness interviewees attribute to
this novel product; the young segment use coffee to improve their concentration and feel more awake while the adult
segment consumes it to relax and rest. Besides, the young segment mentions “good value for money”. The young group
also mentions a higher number of values. Both segments agree on instrumental values such as “I have good quality of life
and safety, “it provides fun, pleasure and enjoyment” and the terminal value “gives me a sense of social belonging”. The
young segment, however, is able to convey a higher number of values in the map and they indicate that coffee capsules
consumption gives them an emotional boost, makes them more successful and feel they have “peace of mind, dignity and
self respect”.
These initial findings could be analysed in more detail in a second stage of the analysis in order to gain a deeper
understanding of how purchasers’ means-end chains are formed. The ladders observed show three relationships common
to both segments. The first two refer to the “taste” and “aroma” of coffee capsules which are related to the consequence
“it’s appetizing and enjoyable to drink” and the value “it provides fun, pleasure and enjoyment”.
This suggests that one of the values that all groups pursue through the consumption of foods is the enjoyment of eating
them, an association that it is hardly surprising to observe in food consumption research. Another common pattern in the
groups is the chain linking the abstract attributes “quality” with the consequence “I am consuming a quality product” and
the instrumental value “enhances my quality of life and security”, all of these concepts being related to the quality of the
product.
Certain differences in terms of consumers’ age are observable given that the young segment is able to convey many more
complete ladders. For instance, three ladders associating “brand”, “packaging” and “price” of the product with
consumption of a quality product that provides them with good quality of life and safety are observed. Besides, the young
group associates “price” and “packaging” with a “status symbol” and this in turns makes them perceive a sense of social
belonging. Finally, the caffeine content of the novel food product is associated with better concentration and being more
awake, which leads to being more successful.
From the analysis of the various elements and ladders shown on the hierarchical value maps of these consumer segments,
it appears that the more complex cognitive structure underlying the decision making process with respect to innovations
is that of the young group, the one which shows higher consumption of the new product.
264
4.5. Degree of abstraction comparison
Results seem to suggest variations in the respondents’ cognitive structure as a function of exposure to innovations and
according to their age. Table 4 summarizes the complete ladders formed by each group in terms of the attributes,
consequences and values involved. In general, the innovative product shows a higher degree of abstraction and more
complex maps. Besides, this complexity becomes more patent with the young segment. Assuming that the degree of
abstraction increases as the cognitive structure is more heavily dominated by abstract attributes, psychological
consequences and terminal values than by concrete attributes, functional consequences and instrumental values, this
higher degree of abstraction indicates that young consumers include more personal associations in the purchase process
than adult consumers.
Table 4. Complete ladders for each group and product analyzed
Coffee
Attributes Consequences Values
Functional
Concrete
Psychological
Functional
Abstract
Psychological
Coffee capsules
Young Adult Young Adults
Instrumental
3
2
2
2
Terminal
-
-
-
-
Instrumental
-
-
3
1
Terminal
-
-
2
-
Instrumental
1
-
2
-
Terminal
-
-
-
-
Instrumental
1
-
1
1
Terminal
-
-
-
-
5. Conclusions
In recent years, market globalization and higher levels of competition have placed the food industry under ever greater
pressure. Added to this, consumers are becoming more and more demanding and are more aware of what to look for in
food products: quality, food safety, healthier products, etc. This reality has forced producers and processors to develop
new products to meet these new demands in order to achieve a competitive market position.
Despite the efforts on the part of the agro-food industry, the failure rate for novel food products is very high. This is due to
various reasons, but it is mainly connected to a lack of understanding of consumers. In societies where nutritional needs
are covered, the success of a given product in the market is related to acquiring knowledge about consumers, finding out
what they look for in a product and what personality traits they project through the food products they purchase and
consume. Consumers tend to put up barriers to novel products when they fail to find clear benefits in them or w hen they
do no match their self-image.
Traditionally, consumer behavior oriented research on innovations has focused on demographic traits associated with
willingness to adopt novel products. One of the variables generally considered is consumers’ age, giv en that studies show
that young consumers tend to be the more innovative ones. Our study attempted to analyze decision structures in
consumers within different age ranges in relation to novel food products in order to determine potential differences. This
knowledge will help identify the key elements for each age range to try and improve novel food adoption rates. These
issues were explored in an application based on means-end chain theory, enabling us to map attribute-consequence-value
linkages obtained through laddering interviews with two consumer segments (young and adult consumers) and two
products, traditional coffee (control product) and coffee capsules (food innovation).
The results show in the first place that young consumers have higher food innovation consumption levels, which is
consistent with the results in most of the literature, which show that young consumers rank higher when it comes to
adopting novel products.
265
Moreover, the hierarchical value maps allow us to conclude that consumers’ cognitive structures are similar regardless of
age when they are presented with a traditional product. However, this structure becomes more complex when they are
presented with a novel food product in both age ranges. In other words, the decision structure related to novel food
products projects a higher number of aspects connected to consumers’ personalities through the products’ attributes.
Likewise, when adult and young consumers’ decision structures for novel food products are compared, we find that
complexity is much more patent for young consumers. In brief, young consumers of the novel product analyzed perceive
more benefits in the novel food through its attributes and that said attributes reflect to a greater extent their personality .
Regardless of age, consumers adopt the novel product for hedonic reasons (taste, aroma and pleasure), due to ease of use
(a key aspect for the market success of this product) and also because it makes them feel more trendy (more
cosmopolitan) and gives them certain social status. Product search and experience attributes such as label information,
brand, taste and ease of use are key factors. However, product belief attributes such as product quality are also
noteworthy. This indicates that choice is not completely based on tangible product aspects; intangible or belief elements
also play a role, which become more relevant when consumers are faced with the novel food product.
Furthermore, the age of consumers is determinant in terms of certain benefits pursued in the novel food product analyzed;
young consumers look for success through caffeine content, which allows them to improve their concentration while adult
consumers aim at relaxation and rest. Finally, a further differentiating element is that young consumers attribute more
importance to the products’ image and packaging, brand and price, all of them perceived as quality and social status
symbols. These factors are worth taking into consideration when it comes to designing marketing strategies aimed at
boosting consumption among consumers of different ages.
Finally, we should mention a limitation of this study, which is that by focusing on one product, we were unable to
generalize the findings to other novel foods or the food market in general. It would be therefore useful to corroborate the
results by extending the scope of the research to other geographical areas, other food innovations or larger consumer
samples.
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Marketing evaluation approach in the
Hungarian middle-sized and large companies
Marketing evaluation, strategic and operative marketingcontrolling, contribution to corporate strategy, corporate
performance.
István Piskóti, University of Miskolc, piskoti@uni-miskolc.hu
Noémi Hajdú, University of Miskolc, margn@uni-miskolc.hu
Abstract
There is an increased demand of evaluating marketing activities. Because the lack of accountability marketing function
within the firm is threatened (Rust et al. 2004). Cutting short on marketing and general expenses seemed to be the
reaction in recession within the Hungarian companies (Mitev and Bauer, 2010). Traditional performance measurement
indicators cannot answer all the management’s questions (Clark 1999). Marketing expenses increased significantly over
the last 50 years (Sheth and Sisodia 2002).
Marketing Science Institute defined marketing metrics and ROI as top research priority in 2002, 2004 and 2006. There is a
new corporate trend for greater accountability of value-added. In time of crisis induced period of restrictions it is
necessary that all functional activities, including marketing being financially accountable. At the same time there is
discontent with traditional metrics. Financial-accounting device refers to the past and does not contain information that
affects long-term future results (Seggie et al. 2007). However, according to Li (2010) existence of these data is needed to
evaluate past performance to improve future strategy and implementation. Availability of IT and internet provides new
measurement opportunities, which resulted faster learning and spread of new methods.
Interest of this topic increases in Hungary as well. In light of these facts the aim of this article is to present marketing
evaluation approach and practice of the Hungarian corporations – according to an empirical, representative research –
controlling practice and relationship between marketing effectiveness and business success.
In our research model we tried to prove the next initial coherence: if a company has marketing evaluation sys tem, its
operation contributes to success of marketing activity and corporate performance (Homburg et al 1999, Moorman and
Rust 1999, Verhoef and Leeflang 2009, Merlo and Auh 2010). In our model, which evaluates the development of
marketingcontrolling, we studied the relationship between the discovered factors with the application of main component
analysis. We analyzed marketing evaluation system according to in controlling common used three subsystems –
information, planning and controlling system. In case of information system the areas of information analysis and its
sources were examined. In case of system of objectives which exists within planning system it was worth dealing with the
importance of psychographic aims besides the economic ones. Our initi al hypotheses have been proved. Our research
revealed the obstructive factors of marketingcontrolling efficiency and the intervention points to improve marketing
performance and business success of the Hungarian corporations – especially in crisis situations.
1. Research problems, aims and methods
Before starting the research the undermentioned questions arised:



what kind of marketing evaluation aspects are applied in the Hungarian middle-sized companies and large
enterprises, and did they get over merely the use of financial methods?
outside the traditional methods whether the psychographics elements play an important part, including the
criteria of marketing controlling?
besides operative devices appear the ones with strategic aspect?
269

evaluations of marketing science has really begun to integrate, in which financial, operative and strategic
approaches are integrated?
Fundamental aims of researcher work:



examining the causal correlation between marketing activities and controlling applications,
creating a model, which evaluate the development of marketingcontrolling,
empirical testing of this theoretical model among the Hungarian middle-sized companies and large enterprises.
After studying international and national literature, which provides an excellent base to the further work and qualitative
and quantitativ marketing research has been done. Qualitative research methods were chosen for depth interviews in the
context of nine expert interviews were made. Regarding the companies, taken into the sample, it was important to be large
companies since we had previously assumed that they consciously apply marketingcontrolling system. Regarding the
industry, we tried to select from each type that has strategic importance. Concerning the title of the interviews our target
was to be able to study the operation of the marketingcontrolling system from different points of view, along the
hierarchic levels. Accordingly, we studied the opinion of the department store’s executive through the head of
department’s to the product and brand manager’s. The aim of carrying out the depth interviews was learning the working
system and sub-systems of the marketing controlling, understanding and revealing the relations between the sub-systems,
becoming familiar with the experts’ opinions and finalizing the questionnaire in the light of the results.
One of the methods of the quantitative marketing research we chose the questionnaire, which characteristics and
methodology can be read later. Our research examines in detail which indices , strategic and operative
marketingcontrolling tools used in the Hungarian middle-sized and large corporations.
2. Basic theoretical and research model
During the research we started from the assumption that the company’s marketing activity contributes to the corporate
performance, besides many factors one of the key to corporate competitiveness, can be the marketing success. However, in
order to consider the performance we need an objective evaluation procedure. Studying previous researches we tried to
find evidence that marketing significantly influences corporate performance.
According to Merlo and Auh (2010) due to the dual role of marketing within organizations – (marketing as an approach
and as concrete activities) – its influence manifests itself in two perspectives (Piercy (1986), Varadarajan (1992), Webster
(1992), Workman (1993)). The first is an „activity-based perspective, where marketing is treated as a set of activities
undertaken by different people throughout the whole organization” (Narver and Slater (1990), Deshpandé et al. (1993),
Jaworski and Kohli (1993)). Then permeates the entire organization of the market-oriented management culture. „Being
market-oriented is mostly associated with strong performance”(Jaworski and Kohli (1993), Kirca et al. (2005), Langerak
(2003), Slater and Narver (2000).
The research initially focused on this perception as an effect of marketing activity, it was easier to consider it than a
complex organizational unit. According to Merlo and Auh (2010), the followi ng research topics can be distinguished
(Merlo and Auh 2010):

„marketing effect on the strategy development and planning”(Anderson (1982), Hutt and Speh(1984), Piercy (1987),
Walker and Ruekert (1987), Frankwick et al. (1994),
 „the interaction of marketing with other corporate functions” (Wind (1981), Hutt és Speh(1984),
Gupta et al. (1986), Walker és Ruekert (1987)),
 „the role of marketing in product development” (Hutt et al. (1988), Workman (1993)),
 „the coordination of inter-firm networks” (Achrol (1991), Webster (1992), Day (1994)).
But the biggest problem of the above mentioned research that they are mainly theoretical and not based on empirical
evidence (Homburg et al. (1999)).
The second approach is the functional group’s pespective, which is represented by Homburg et al. (1999), Moorman and
Rust (1999). They „view marketing as an independent and distinct organizational entity”. Lawrence and Lorsch (1967),
270
Perrow (1970), Hinings et al. (1974) among corporate functions marketing is thought to be the m ost powerful, primarily
its role plays in innovation and consumer involvement. According to Day (1997) marketing has a key position in the future
mainly during market sensing and customer acquisition. Homburg et al. (1999) defined marketing influence as th e
practical power of marketing unit within the corporate, comparing to other units has a more significant role in achieving
business sucess. In his research the influence of marketing strategy was high, and he proved that „marketing’s role in
strategic planning is based on the value of the power resources which contributes to the firm’s operation”. In Moorman
and Rust’s study (1999) we can find that marketing department has a benefical effect on effeciency and „contributes to
financial performance, customer relationship performance and new product performance beyond the contribution of an
organization-wide market orientation. Verhoef and Leeflang (2009) defined marketing influence impact as „an outcome of
the marketing function’s own characteristics, such as accountability, innovativeness, customer connectivity, creativity, and
interdepartmental cooperation”. Similarly Homburg et al. (1999) empirical experiences Verhoef and Leeflang’s (2009)
results are proved that marketing has a contribution to corporate sucess and performance. This result is remarkable, while
the importance of marketing activity 10 years later also confirmed. But these two results can not be compared while the
two samples are different.
Merlo and Auh (2010) analyzed the marketing’ strategic influence at Australian firms. It has been observed that marketing
plays a significant strategic role in connection with other functions. The degree of influence is high, not only in general as
strategic power, but as a special decision element, which means an important contribution in the organizational success. 2
years later, in 2012 Merlo and Auh continued the studies in this direction, which showed that powerful marketing function
coupled with improved business performance. Thus, they advise the management to focus on simultaneously to maintain
the strong market orientation and marketing function, while the corporate internal responsible of market orientation is
the marketing organization.
Homburg et al. (1999) made his surveys in the United States of America and in Germany, Moorman and Rust (1999) also
did in the USA, Verhoef and Leeflang (2009) in the Netherlands, while Merlo and Auh (2010) in Australia. Thus, companies
operating in these countries managed to find a significant correlation with the performance of the marketing department
and the corporate performance.
Interest in the topic is increasing in Hungary. More domestic professionals succeed in supporting this relationship with
empirical experiences and statistical analysis.
Berács (1997) points out that the development of marketing tools and marketing-strategic aims are closely related to
corporate performance. Marketing function - cannot only be determined by the leaders' basis declaration - as one of the
source of the company's success, but modern marketing also automatically leads to competitiveness and corporate
profitability growth in Hungary.
Research of Kolos et al. (2005, p. 60) reveals that companies they have interviewed detect a close relationship between
their marketing activities and corporal success. Accordingly, marketing functions appear in the organization. At the same
time, marketing contributes rather to the long-term success of a company (Kolos et al. 2005, p. 61.). So the effects of
marketing activities prevail long-term. 5 years later a new research was made by Kenesei and Gyulavári (2010, p. 54.)
according to which this trend is maintained and further strengthened, since not only the marketing tools, but also
possessing marketing skills are closely related to performance. In our opinion marketing capabilities refer to the strategic
importance of marketing activities and to the market oriented mentality.
In conclusion it can be claimed that the evaluation of marketing is not an advantage any more, while it is a requirement
and condition of competitiveness. Marketing, both as an organization and set of activities, has a dominant role e.g. in
decision-making, strategy developing, planning, creating product development and customer relationships. Last but not
least is necessary to mention the coordination function of marketing between the organizational units within the firm.
About marketing performance evaluation Kotler (2000) writes the following: efficient marketing organizations apply
reliable assessing and controlling tools, which makes the result of evaluation, interpretation and adaptation, and the
regular supervising of marketing activities. Traditional financial performance measurement indicators can not answer all
the questions of the management (Clark (1999)), furthermore, marketing expenses increased significantly over the past 50
years (Sheth és Sisodia 1995), in our opinion it has a relevance to study the marketing evaluation approach in Hungary.
In the research model we tried to prove the next initial coherence: if a company has marketing evaluation system, its
operation contributes to the success of its marketing activity (Niven 2005 in case of Balanced ScoreCard, Reinecke 2004 in
271
case of marketing evaluation), and increases corporate performance (Homburg et al 1999, Moorman and Rust 1999,
Verhoef and Leeflang 2009, Merlo and Auh 2010, Berács 1997, -Kolos et al 2005, Kenesei and Gyulavári 2010.).
According to the above mentioned research results we regarded proven and accepted the coherence between marketing
and corporate performance, however, only a few studies has been dealing with the coherence between marketing
evaluating system and marketing success.
We made an initial theoretical – research model (it can be seen int he resulting model on Figure 4). In the model, under the
development of marketing – in dual approach (Merlo és Auh (2010)) – the contribution of marketing department and set
of activity to the corporate performance. During the research, the model will be tested as a result of which certain
elements can fall out without the evidence of the appropriate context, and new elements can be added to the system if
there is a connection.
In the model, which evaluates the development of marketingcontrolling, we studied the relationship with the application
of main component analysis between the discovered factors. Its purpose is to define the minimum number of those factors,
which will explain most of the variation (Malhotra 1999). We are going to analyze the marketing evaluation system
according to the three subsystems, known at controlling – information, planning and controlling system. In fact
development of marketingcontrolling is clearly determined by the operation of each subsystem. In case of information
system the areas of information analysis and its sources were examined. In case of system of objectives which exists within
planning system it was worth dealing with the importance of psychographic aims besides the economic ones. While in the
control system we will study each asset as groups. Our research revealed the obstructive factors of marketingcontrolling
efficiency and the intervention points to improve marketing performance and business success of the Hungarian
corporations.
3. Representative quantitative research and its results
3.1. Sample and research characteristics
The sample population is medium-sized companies operating in Hungary (with an employee number between 50 and 249)
and large enterprises (employee number over 250). The number of the base population is 4784 for medium -sized
companies and 917 for large enterprises.
As a feature of the base population I wanted to take the annual net revenue into consideration, but in the Law on
Accounting the upper limit of the medium-sized company’s annual net revenue is at most 50 million euro – which is the
lower limit for a large enterprise – and in our opinion this is too high a sum for the Hungarian market. For this reason the
KSH (Hungarian Central Statistical Office) ‘only’ examines the number of employees for the purpose of determining the
corporate size.
We have chosen the companies from the CÉG-KÓD-TÁR, issue 2009/3. The research technique was stratified sampling
from the random sampling methods. We tried to find connection to the marketing departments of the companies and
asked the questions from a previously well-structured questionnaire on phone. Features of the stratification were activity
and region. Confidence level of the total sample is 95 percent, accuracy level is ±9,7 percentage points, sample size is 100
companies (50 medium-sized, 50 large). According to the activity and region, distribution of the total sample accurately
reflects the basic population proportions. Stratification of Hungarian medium-sized companies and large enterprises is not
the same, but if we ask 50 medium and 50 large companies, the two samples are comparable with each other easily
without distorting weighting.
The four activity sectors are: agriculture, industry, trade and service. The seven regions of Hungary are: Southern Plain,
Southern Transdanubia, Northern Plain, Northern Hungary, Central Hungary, Central Transdanubia and Western
Transdanubia.
The majority - 53% of the Hungarian medium-sized companies and large enterprises operate in the industrial sector,
27.2% in the service sector, 14.6% in trade and 5.3% in agriculture.
The majority of the sampled companies operate in Central Hungary. In other regions, medium-sized and large companies
are represented in almost the same numbers.
272
3.2. Marketingcontrolling development
Development of marketincontrolling was analysed according to three variable groups, which was defined by the three
subsystems of marketingcontrolling: information-, planning- andcontrolsystem.
First, the correlation test must be done to find out the relevance of main component analysis on this variable groups.
According to the correlation matrix in case of all the three variable groups the relationship is significant at 1%, so there is a
reason to implement the main component analysis. The legitimacy of main component analysis and rejecting the
hypothesis of Bartlett’s fericity (sig. 0,000) were confirmed by KMO (0,601). Component vector suggests that in
manufacturing the component information- and controlsystem take part with nearly the same weight value of 0,830, and
0,832, while planning system has a smaller weight: 0,625. Final communalities of the original variables were as follows.
The manufactured main component 68,8% of the information subsystem, 69,2% of the control subsystem, while 39,1% of
the planning subsystem’s content information were compressed.
The development of control system were studied according to the applied indices and methods. We were interested in
how frequently employ the Hungarian middle-sized and large companies indices concerning marketing and sales (e1), and
strategic- (e2), operative- (e3), financial (e4) marketingcontrolling devices.
During the analysis first correlation analysis was made in order to find out the relevance of main component analysis is on
this variable groups. Correlation matrix shows that the relationship is significant at 1%. The legitimacy of main component
analysis and rejecting hypothesisof Bartlett’s fericity (sig. 0,000) were confirmed by KMO (0,760). The principal
component of the original variables obtained the information content of 69.2% of the total retained, so the data loss is
estimated to be only 30.8%. Component vector suggests that in manufacturing the component marketing and sales indices
takes part with the highest weight (value of 0,850), this is followed by operative marketingcontrolling tools (0,806), then
strategic marketingcontrolling tools (0,748), and finally the financial marketingcontrolling tools (0,744) are following. The
manufactured main component 72,2% of e1, 56,0% of e2, 65,0% of e3 and 55,3% of e4 component’s content information
were compressed. It can be concluded to the final communality of the original variables that the main component
condensed the 72.2% content of the information of e1, 56, 0% content of the information of e2, 65,0% content of the
information of e3, and 55,3% content of the information of e4.
Components of marketingcontrolling development
More professionals (including Hubert, Gyulavári, Malota (2012)) emphasize the priority of financial data from which we
can conclude that economic and financial goals are preferred. Therefore in the planning system I was interested in
whether the psychographic and economic goals are equal in corporate decision-making rank, or either one takes priority
over the other. Psychograpgic objects may alibi in practice, because of measurement difficulties come to the fore with the
intention of improving performance.
In the target system the target classification of Ulrich/Fluri (1995) and Meffert (2000) was considered, where in each
group there are more statements, mixed in the question. The respondents had to rank the answers from 1 till 7. In the
hierarchy the most important element was the aims regarding the market position, with an average value of 6.2, which
contains the increase of market share and the turnover, and the reaching of new markets. Second importance was the
profitability aims with an average value of 5.74 (increase of profit, reaching turnover and capital rentability).
Psychographic aims (reaching purchase intention, attention rising, prestige forming, increase satisfaction) got an average
value of 5.32. Despite the difficulty of measuring psychographic aims, the respondent considered them important. To the
financial targets belong the aims of market position and the profitability. From two of these are before the psychographic
aims in the importance hierarchy. The environmental objectives had 4.8, while the social ones had 4.75 avarage values. It
can be bewildering using the name of having a 3.44 market value goals-term According to Ulrich/Fluri (1995) and Meffert
(2000), the attaining of political and social influence and the achieving of independence belong to this group.
Grouping the toolsystem is based on a Swiss research from 2010 named ’Marketingcontrolling in the practice’, which was
made by Reinecke and Eberharter. As the target group of the two researches (the Swiss and the Hungarian) is different, It
was not my aim to compare the results with each other. Measuring marketing efficiency middle-sized and large companies
use mainly those indices regularly, which are refering to sales and finance, e.g. Turnover (94.8%) and its increase (84.9%),
net income (82.2%) and turnover rentability (65.9%). Indices related to customers, the above mentioned companies use
273
less frequently: customer satisfaction (54.5%), customer attechment rate (18.4%), financial customer value (19.4%) and
non-financial (11.6%). Indices related to competitors are hardly used regularly, except market share (56.4%).
Figure 3 How often does the company use the following indices in marketing and sales? (not at all, not regularly, regularly)
Source:The writers’ own drawing
Indices and index systems are only the pillars of a comprehensive marketingcontrolling system. They complement each
other, but in no way substitute the methods like gross margin calculation, or investment calculations in case of
indtroducing a new product. In marketing there are many areas, which cannot properly expressed in indicators. It raises
the question that marketing managers with what kind of tools and methods determine the success. The following part
contains strategic and financial marketingcontrolling methods.
Concerning strategic marketing controlling devices, Figure 2 shows that the Hungarian medium-sized companies and large
enterprises apply regularly the traditional tools: e.g. customer satisfaction (57.7%), strategic product portfolio (49.3%),
competitors’ analysis (42.9%) and industrial branch analysis (42.6%). It seems that in making important strategic
decisions these companies prefer well-proven methods.
Suprising results emerged in case of market segmentation, as there is a substantial difference between theory and practice.
While the necessity of market segmentation is indisputable in the literature, 38.8% of the Hungarian medi um-sized
companies and large enterprises do not take advantage of it, 34.7% waive its regular use, and only 26.5% apply it
regularly. It seems companies have difficulties in carrying out segmentation.
274
An unexpected development the sporadic practical use of Balanced Scorecard, since in the literature it is a much discussed
topic. 75.8% of the respondents do not use it at all, 18.0% do not use it regular and only 6.2% use it regularly. It is
conceivable this method is too innovative or too complex for compani es to introduce it on a regular basis. Results show
that 78.8% of the companies do not use the scenario technique at all, 16.9% do not use it regularly, and only 4.3% apply it
regularly. In our opinion this method has a great advantage in that future events can be predicted.
Figure 4 How often does the company you work at use the following tools? (Strategic marketing controlling)
(NA: Not at all, NR: not regularly, R: regularly) Source: The writers’ own drawing
One of the most costly element of marketing activity is marketingcommunication, the cost of which is constantly
increasing, so it was important to assess this component. Previously it was assumed that the tracking was carried out by
less than one-third of the companies. Because of the high costs, companies try to save money on those activities, which
could be increased efficiency.
Concerning operative marketingcontrolling devices traditional methods like sales analysis (91.1%), quality analysis of
products and services (74.8%), price- (67.7%) and distribution analysis (50.0%) are regularly carried out by the
comapnies.
Despite the fact that marketing communication carries considerable costs, only few middle-sized companies and large
enterprises analyze regularly their results. Measuring the efficiency and effectiveness of marketing communication the
regularity is important, it cannot be occasionally (not regularly) performed, because it has, no sense. The process approach
is essential, because we can only heel the response of customers for each campaign.
In the XXI century, from communicational aspect, could also be called the ’Time of integrated marketing-communication’, it
is unexpected that the media-mix optimalization is used by less than one-fifth of the companies.
275
Figure 5 How often do you apply the following methods? (Operative marketingcontrolling)
(not at all, not regularly, regularly) Source: The writers’ own drawing
Finally, in case of the control system it is necessary to study financial marketingcontrolling tools, which can easier apply,
than strategic and operative devices. 63.8% of the companies use regular total cost calculation, 63.4% turnover-result
calculation, 54,8% profitability analysis, 54.7% gross margin calculation, 52.9% budget analysis, while 50.6% process cost
calculation. Positively noticed that many companies use the process (50.6%) and objectives cost calculation (44.4%).
However, nowadays among marketing theorists so often discussed topics such as regular application o f brand value
(29.9%) or client value analysis (20.9%) still less widespread in business practice.
During the analysis of the marketingcontrolling devices it is noticed that in Hungary the middle-sized and large enterprises
prefer to use the well-tried methodsl. It is possible that the ’new’ procedures are considered risky.
During the literature review it was found that by the evaluation of company’s marketing activity the biggest problem was
the lack of assessment method and the subjective elements in it. Finding the competent human resource may also cause a
problem. More universities and colleges have alrady started this training, therefore market supply and demand will be
resolved in time at the marketingcontroller training sector.
In the survey the companies were asked what kind of difficulties they had during the evaluation of the marketing process.
Next we describe the factors that hinder the operation of the marketingcontrolling system in business practice. These data
are suprising in the light of how much money, time and energy are spent on the various quality management and routine
reports from year to year in order to refine the methods. Marketing activities have significant costs comparing to other
company fields, nonetheless 43.9% of the companies have not got an evaluating method.
In our opinion, there is a connection between development of marketing and marketingcontrolling system. Indeed, if a
company deals with the evaluation of its marketing activities, it will contribute to the optimal functioning of marketing.
This is the second hypothesis, which stems from the research model.
The correlation test must be done to find out the relevance of main component analysis on this variable groups.
Correlation matrix shows that in case of six variable groups at 1%, 2 variable groups at 5% the relationship is significant,
so there is a reason to implement main component analysis.
The legitimacy of main component analysis and rejecting hypothesisof Bartlett’s fericity (szig. 0,000) were confirmed by
KMO (0,651). According to the component vector I can declare that the development of marketingcontrolling takes part in
the highest weight (0,826) in manufacturing of the component, this is followed by applied activities (0,805), then
expenditure or investment (0,659), and finally marketingbudget (0,496). Final communalities of the original variables
were as follows: the manufactured main component 68,1% of the 3. statement, 64,8% of the 1. statement, 43,5% of the 2.
statement and 24,6% of the 4. statement’s content information were compressed. Well the next statement has been
proven.
276
The legitimacy of main component analysis and rejecting hypothesisof Bartlett’s fericity (szig. 0,000) were confirmed by
KMO (0,651). According to the component vector I can declare that the development of marketingcontrolling takes part in
the highest weight (0,826) in manufacturing of the component, this is followed by applied activities (0,805), then
expenditure or investment (0,659), and finally marketingbudget (0,496). Final communalities of the original variables
were as follows: the manufactured main component 68,1% of the 3. statement, 64,8% of the 1. statement, 43,5% of the 2.
statement and 24,6% of the 4. statement’s content information were compressed. Well the next statem ent has been
proven.
Resulting model of the main component analysis can be seen on Figure 4. Beyond testing the initial theoretical model –
proven significant relationship – the model has been broadened which can experience in block I.
Figure 6 Marketingcontrolling development model Source: The writers’ own drawing
4. Summary and conclusions
In the 21st century's uncertain economic climate, profit-seeking corporations work under the constant pressure of
efficiency. As a consequence, the importance of evaluation has already covered by those corporate fields, which were
regarded impossible to measure, based on our previous knowledge. Corporate leaders have recognized that successful
corporate
governance
requires
a
system
that
analyzes
the
efficiency
of
marketing
activities
– e.g. sales, marketingcommunication, consumer behaviour, etc.
In Hungary, the company practice both controlling elements, the Anglo-Saxon and German ones, can be found. According
to my representative research nearly 80% of the middle-sized and large companies evaluates the efficiency of marketing
activities, so they recognize the significance of this method. Plan, analyze, evaluate and control marketing activities and i ts
efficiency, but not or only rarely call it marketingcontrolling. Survey stated that marketingbudget was less than 5% of the
mentioned company’s revenue.
277
The three subsystems of marketingcontrolling – information-, planning and control system – are seperated in the
Hungarian corporate practice.
Creating the information system the studied companies use both internal and external sources. As external source mostly
the different market research reports, while as an internal own corporate market research, internal corporate statistics,
database, accounting are dominant.
During the objectives planning revealed that in the daily operation, decision-making of the Hungarian middle-sized and
large companies the psychograpgic objectives at least as important as economic ones.
We noticed during the depth interviews, in relation to the control system, that the measurement of the economic goals’
fulfillment is the dominant, but there are also psychographic objectives. Control system was studied separately with
regard to the strategic, operative and financial marketingcontrolling devices, and we concluded causal relationship the
frequency of use of these.
At the end of the research we asked what kind of difficulties arises during the using of marketingcontrolling. Not suprising
that the biggest problem is the cost, the subjectivity and the lack of the evaluation method and the lack of the competent
human resource.
Finally, we illustrate in a model what kind of factors have an effect on the development of marketing and
marketingcontrolling.
Draw the conclusion that the Hungarian middle-sized and large enterprises considerable attention is paid to the marketing
activities and its evaluation. However, a number of methods and procedures can also expand the existing tools. In our
opinion, in most companies to create a well-operating marketingcontrolling system not requires a large investment, since
the basis of this system have already existed.
It is succeed to prove in our research that if a company has marketing evaluation system, its operation contributes to
success of marketing activity.
Using a marketingcontrolling system several practical benefits can be realized. The controlling system of a multinational
company that distributing products in construction industry makes the horizontal flow of information possible. Executives
of the different stores in this chain in Hungary set up an internal information line in order to the effective communication.
With the expansion of the available information controlling activity can be modify, when the results are not what we
expected. Thus the system can continuously develop and specified.
This article is carried out as part of the TAMOP-4.2.2./B-10/1-2010-0008 project in the framework of the New Hungarian
Development Plan. The realization of this project is supported by the European Union, co-financed by the European Social
Fund.
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Session 8
283
Social
Responsibility
Campaigns
and
Consumer-Centric Marketing, Are They in
Cohesion? The Practices of Top Ten
Organizations in Turkey
Corporate, Social responsibility, consumer-centric marketing, social responsibility campaigns, Turkey.
Nilay Başok, Faculty of Communication University of Ege, nilayyurdakul@hotmail.com
Müjde Ker Dincer, Faculty of Communication University of Ege, m.kerdincer@yahoo.com.tr
Gül Coşkun, Faculty of Communication University of Ege, gul_coskun@hotmail.com
Abstract
In the field of marketing, with every passing day the value of creating consumer wise approaches and policies are
appreciated and applied more and more by many organizations since they can only differentiate on goods and services to
the extent they successfully cover the needs and expectations of their consumers. The situation mentioned brings about
the importance of consumer-centric marketing concept into the scene. Within the practices of consumer-centric
marketing, organizations place the expectations, needs, and desires of their consumers place in the core of all their
functions.
Contemporarily another highly increasing work area for organization is social responsibility practices. Varying and
developing of social structures seen all over the world brought into the scene of differentiating expectations of society
from the organizations, too. The way how the organzation handles social responsibility practices stands in the first place of
consumer preferences. The vital significance of sincere social responsibility practices are also seen and valued by Turkish
consumers, too. Due to this outcome, many conglomerate, medium and small sized business administrations in Turkey
hold various social responsibility campaigns on different areas. The practices stated sometimes can come up as
sophisticated campaigns, and sometimes as short termed activities. Organizations can also plan their social responsibility
practices purposive in different ways sometimes working with their consumers hand in hand and sometimes by
themselves for the behalf social benefits.
In this “Social Responsibility Campaigns and Consumer-Centric Marketing, Are They in Cohesion? The practices of top ten
organizations in Turkey” headed paper, the importance of social responsibility campaigns are examined from a consumercentric marketing perspective. As a case study to highlight the topic, the social responsibility practices of top ten leading
organizations announced by the Istanbul Chamber of Industry with their net sales among 500 organizations of Istanbul are
examined within the limits of the paper.
INTRODUCTION
In a time of economic uncertainty where customer trust eroding and purchase behaviors grows harder to predict,
mastering in consumer-organization trust based relations has become even more critical to staying relevant, competitive
and profitable. Consumer-centrism comes on the scene as a hero that builds long-term relations between organizations
and consumers. Through consumer-centric management understanding, organizations can create and sustain
relationships deeper than the “good, old-fashioned service” with consumers and get better returns from their marketing
funds.
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The two-way communication flow among organizations and consumers influence not only the trust and loyalty in between
but also the way work is done. Social responsibility practice is defined as ‘the way organizations give back what they took
from the society’. Today social responsibility is an area regardless of the idea behind, it could be either for profit growth or
social contribution, organizations attach value to these kind of practices. Especially today consumers value the way
organizations face their responsibilities about their products, environmental issues, and charitable works. Also info rming
consumers about organizational SR practices performed is a highly expected duty of the organizations since consumers
during their purchasing process, consider them very much. For these reasons, uniting consumer-centric marketing
approach with social responsibility practices end up with trust-based, long termed, successful consumer-organization
relations.
In this paper the commissure of consumer-centrizm and social responsibility is considered on evaluating the data supplied
by the Istanbul Chamber of Industry. The web sites of top 10 organzations (from private sector) listed in the top 500 list
prescribed by Istanbul Chamber of Industry according to 2011 net profit on sales were observed according to the intensity
of information organizations share about their social responsibility performances via organizational web sites that meet
consumer expectations. Within this scope, the practices of the above mentioned 10 organizations placed on their
organizational websites were promiscuously examined within the context “what consumers look for from the
organizations to fulfill their expectations on SR practices as primary and secondary expectations” stated in the article ‘The
Expectations of Consumers about Social Responsibility: Identification of Priorities by Analytical Hierarchy Process’ is used
as a base of the research.
A NEW TENDENCY IN MARKETING: CONSUMER-CENTRICIZM
In today’s severely competitive business world where building, keeping, and expanding customer relationships and doing
it profitably, highly depends on the ability to deliver a customer experience tailored to changing customer needs and
values consistent with the brand promise, stands as the core concept of the overall approved tendency in marketing that is
called Consumer-Centric Marketing (CCM). CCM is a relatively new trend in marketing and it aims to streamline data used
by companies and also takes Customer Relationship Marketing (CRM) one step forward. Even though CCM is based on the
idea and the techniques designed for CRM, it takes the practice a step further with its advanced marketing philosophy that
perceiving the customer as the consumer and ‘placing the consumer in the middle’. To survive and even thrive in today’s
economic environment, many organizations should take a fresh look at their strategies and methods for retaining
customers, and if necessary renew their commitment to consumer centricity even to more human-centric management
understanding (Kotler, 2010, p. 4).
CCM as the subsequent step of CRM, can be basically defined as ‘the discipline of capturing and deploying consumer
insights to enhance marketing effectiveness and better serve those consumers that are a brand’s best prospects’ (Maney, et
al., 2002, p.3). CCM is based on the notion of augmenting deep insights into co nsumer habits, practices, attitudes,
motivations and expectations, and then make use of this information to build trust-based relationships with consumers
who most count on to a particular organization. Trust and dialogue based relationship is highly valued by today’s
organizations since it is the essential component of customer-loyalty, and the organization’s profitability and permanence
highly depends on it. In order to build trust based relationships, organizations must gather very detailed information by
improving a very deep understanding of consumers served and then deliver the right personalized messages suitable for
the consumers, through the right channels, at the right time, and placing the consumer demands in the center.
‘The personalized messages’ vital to CCM enable mass production of tailor-made products based on a positive cycle of
learning from consumers- allowing the consumers to take active roles in the design of the products by declaring their
preferences and customizing product features, offering consumers products with higher perceived value – increasing
customer life time value, customer loyalty, and customer-company relationship. In addition to that, CMM strategy lays the
basis for differentiation and greater value creation leading to loyalty and profitability; thus provides the organization with
long term return on their investment (Bolton, 2004; Mello, 2002; Wright, Stone and Abbott, 2002).
Above mentioned front-page CCM process can be enabled by telephone or postal requests, face-to-face communication,
etc. but today especially with high technology tenancies: networks, databases, data warehousing and data mining
applications. Especially the web is used to enable consumer interactions, data collection and analysis, enhancing the
potential of the identification and tracking of the consumers globally (Wang et al. 2000 and Daniel et al., 2003). Besides
technology not only multiplies the channels of communications but also provides tools for the organization to adapt
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proactive and reactive marketing strategy towards customizing products and satisfying consumer demands (Buhalis,
2003).
In essence, the CCM is a three-step process with three main challenges to be covered since the balance between savings
from technological effectiveness and providing consumer-centered service atmosphere is not an easy one.
1) Knowing the consumer: the collection and arrangement of information and data on individual consumers,
2) Reaching the consumer: the utilization of that information to more effectively target those existing consumer and
3) Delivering a differentiated experience allowing the customer to customize and personalize the service to match their
own needs and preferences.
Figure 1: 3 Steps in CMM ( High Performance in the Age of Customer Centricity, 2008)
CMM with its role in orientating the organizational activities around the consumer, having a deep understanding of the
consumer and effectively responding to the needs of them, engaging all stakeholders in improving consumer
understanding, aligning the resources of the organization to the desired outcome is highly valued in business world. In the
light of the all mentioned exposés, CCM in today’s marketing drifts is on its way to create head waves in marketing; by
developing a good mutually beneficial relationship that will ensure positive consumer experiences and combining CCM
philosophy and technological advancements that allow for a more sophisticated data collection and manipulation as well
as personalization of products, services and experiences.
SOCIAL RESPONSIBILITY UNDERSTANDING
Today the stakeholders (consumers, local communities, employees, financial interest groups, media, and etc.) highly
expect organizations to strive for social and environmental issues. To fulfill these expectations, organizations have to
accomplish social responsibilities in areas such as environmental issues, business ethics, sponsorship and philanthropy,
cultural responsibilities, social activities in education, health, sports, and so on. Due to the mentioned reasons, Social
Responsibility (SR) mentioning the responsibilities and the role of organizations on social, economic and environmental
issues by adapting voluntary applications affecting external environments stands out as one of the eye-catching work
areas of business. Organizations with well-set SR policies and campaigns, have advantages in various aspects such as; (1)
learning and applying sufficient and effective ways to fulfill social and environmental duties stakeholders are expecting in
a two-way communication manner, (2) attaining and sustaining positive organizational reputation, (3) developing trustbased and sincere relations with stakeholders, (4) affecting purchasing decisions and increasing customer satisfaction and
286
loyalty levels, (5) attracting qualified workforce to the organization, and (6) increasing employee motivation, moral,
efficiency, satisfaction and commitment levels. In this context, it is possible to state that organizations targeting
achievement in business must value the role and be in continuous interaction with the relevant stakeholders and external
environment. Furthermore, organizations have to integrate SR into economic, environmental, and social operations.
Therefore, organizations that adopt SR have to formulate a comprehensive set of policies, practices and programs that are
integrated into the business operations and decision-making processes throughout the organization focusing on the key
dimensions of SR that are stakeholders. SR, for that reason, is about how to manage these responsibilities (Ofori and
Hinson, 2007, p.179).
To gain deeper understanding of SR, the three gradual aspects of the relationship between the organization and the
stakeholders have to be mentioned. First of all, the way business is conducted reflects upon ethical considerations. Second,
the level business operations minimize or reduce negative impact on the environment, and finally, the outcome of
operations not interfering with established human rights (Valand and Heide, 2005, pp.495-496).Douglas et al. (2004,
p.388) SR generally refers to business decision-making linked to ethical values, compliance with legal requirements, and
respect for people, communities and the environment. A step further SR traditionally refers to the activities carried out by
organizations to enhance society in general. Therefore, for some experts SR is beyond profit activities, and is voluntary and
thus not required by law or any other form of governmental coercion.
On the other hand, according to Klein and Harford (2004, pp.1-2) beside all human, social and environment based,
virtuous approaches, organizations have economic based reasons to behave in a socially responsible way, too. First reason
of the organization adapting SR is simply that a corporate culture may value more than mere profit. Second social or
environmental action can increase the profits of the organization such as improving energy efficiency for example can
reduce the level of costs. And as the third reason SR is essentially a reputation game in which organizati ons behave better
in return for a better deal from various stakeholders. Sothe SR experts state that the investments in SR are believed to
create value not only for stakeholders of the organization, but also for the organization itself (Van de Ven, 2008, p.339).
Returning to the reputation building side of SR for organizations; organizational reputation among its economically
powerful stakeholders is a valuable asset which needs to be protected and developed. Today the key aspect of this
reputation building process is seen as stakeholders’ perceptions of the organization’s SR – or, more precisely, perceptions
of how well the organization’s SR policies, practices and outcomes meet stakeholders’ social and environmental values and
expectations (Unerman, 2008, p.362). The outcome of these expectations puts heavier responsibilities on the shoulders of
SR since consumers themselves frequently claim that the SR profile of an organization plays a large role in what brands
they choose to purchase (Castaldo et al., 2009, p.1). As an evident of this ‘profit based’ application of SR, most leading
organizations include a specific statement on their CSR policy within their annual reports. Indeed, changing societal
expectations, increasingly intrusive media reporting, and ever more sophisticated and powerful pressure groups have
caused all organizations to consider more carefully their wider social responsibilities not only out of altruistic reasons, b ut
because of the need to consider the potential impact of their policies on their wider stakeholder relationships (Bowd et al.,
2006, p.147).
Consequently, due to the importance gained by SR understanding, many organizations from almost all businesses are
endeavouring to find ways to integrate SR into their economic, environmental, and social operations. SR draws on the
notion that organizations bear the responsibility to give something back to the community. Organizations concerned with
SR seek to do well and attempt to project the image of a good corporate citizen. On the other hand, SR has proven to be
effective as a marketing and positioning tool to enhance organizational reputation or to proactively defend reputation
against public criticism. (Pollach, 2003, p.278). At the end the aimed outcome is both economic strength and social support
of the society in general.
SOCIAL RESPONSIBILTY CAMPAIGNS WITHIN THE SCOPE OF CONSUMER -CENTRIC MARKETING
Today consumer valued as the main agents affecting the entire in- and out-put of the organization. Through the history of
marketing the question of ‘what the organizations have to produce’ has changed to ‘to whom the organizations have to
produce” and a step further to ‘how to inform stakeholders about the outcomes’. In this age of marketing organizations
have to act according to the consumers’ desires and expectations even more than ever before and in the light of this act
comes the CMM understanding into the scene. In recent years the ‘value’ concept has also been added on to CMM, social
media and SR practices.
287
CMM discipline specifically focuses on retrieving information about consumers, determine individual desires, and
establish data pools for now and further tenancies. Organizations also formulate their SR practices on the outcomes of the
above mentioned issues. Especially differentiating from the competitors SR stands in the forefront.
Figure 2: 3i Model and Timberland's 3i
Reference: (Kotler, Kartajaya Seitawan, 2010, pp. 49-51)
Based on CMM but a step further approach valued by today’s organizations is the values -based marketing concept. Valuesbased marketing as a subsequent dimension of CMM focuses on accessing not only to the consumers’ mind, also the heart,
and the soul at the same time.
Managing brand identity, brand integrity, and brand image brings forth the 3i Model, an integrated perception of the triad
(Figure 2). As seen in the Timberland example, SR must be used and mentioned the role of organizations acting according
to the global human rights, and responsible citizenship understandings. These components must feature in the overall SR
movement of the organization.
Figure 3:Values-Based Matrix Model
Reference: (Kotler, Kartajaya Seitawan, 2010, p.44)
Thereto CMM, today consumers value not just the quality of the products but also the way organizations contribute to the
overall social benefits and responsibilities. Placed in organizational mission, vision and values and supported by
organizational culture, SR sets a structure that appeal to the consumers’ heart and soul (Figure 2).
SR practices performed by organizations’ not solely depend on the budget and the opportunities supplied by the
organization but also designated profit gained from selling of products can be transferred to various SR campaigns or
NGOs. Organizations by doing so may end up with prompting and informing consumers and stakeholders on SR issues.
288
Also modern-day consumers support organizations that value and apply SR practices by preferring, buying and using their
products. Thus organizations can establish an environment that is based on mutual respect and trust, eventuate in
enhancing consumer loyalty that is targeted by CMM practices.
As being a universally approved and applied field of study, SR practices draw increasingly attention in Turkey especially
by large-scale enterprises. Many organizations nowadays share SR outcomes with their stakeholders by the help of various
technologies. Previously the activities organized as a part of SR, has altered. Organizations now adapt SR practices into
corporate strategies and cultures as inseparable parts and publicize what has committed to stakeholders. Especially the
growth and massive usage web sites made organizations pay ever increasing.
Ever-increasing attention on internet has SR made organizations necessitate the usage of web sites, too. Organizations by
placing specific buttons about SR practices on web sites of the organization, and share information on performed or will be
performing events. In addition to the peak usage of web sites, organizations also use social media on behalf of informing
stakeholders and consumers on SR practices. Herein since the sphere where organizations’ will perform SR practices
depends on the expectations of the society, so in the planning stage of SR practices these expectations always have to be
taken in consideration.
SOCIAL RESPONSIBILTY CAMPAINGS WITHIN THE SCOPE OF CONSUMER -CENTRIC MARKETING: EVALUTATION OF
TOP 10 ORGANIZATIONS IN TURKEY
Purpose of the Research: In this work, the SR practices of top 10 organizations (from private sector) listed in the top 500
list prescribed by Istanbul Chamber of Industry according to 2011 net profit on sales were evaluated in order to compare
how well and how much information shared about organizations via organizational web sites met consumer expectations
on social responsibility campaings.
The Scope of the Research: Within the research SR practices of top 10 organizations and the main topics dealt by these
practices were examined. In this context the organizations inspected were as listed (Istanbul Chamber of Industry *, 2012):
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Tüpraş-Türkiye Petrol Rafinerileri A.Ş. (oil company)
Ford OtomotivSanayi A.Ş. (automotive)
Oyak-Renault OtomobilFabrikaları (automotive)
TofaşTürkOtomobilFabrikası A.Ş. (automotive)
Arçelik A.Ş. (domestic appliance)
EreğliDemirveÇelikFabrikaları A.Ş. (iron and steel plant)
İskenderun DemirveÇelik A.Ş. (iron and steel plant)
İçdaşÇelikEnerjiTersaneveUlaşımSanayi A.Ş. (steel, energy, dock and transportation)
Aygaz A.Ş. (bottled gas)
Mercedes-Benz T.A.Ş. (automotive)
Research Method:
When the method of the research is to be decided on the article named ‘The Expectations of Consumers about Social
Responsibility: Identification of Priorities by Analytical Hierarchy Process’ written by Gül Bayraktaroğlu and Özge Özgen
used as a guideline of the research. In the work of Bayraktaroğlu and Özgen, the basic 4 principles confessed by the work
of T.L Staay within Analytic Hierarchy Process that are decomposition, pairwise comparison, synthesis of priorities and
ultimate decision were selected as a baseline. Unlike the other methods comparing attitudes, reaching a comperative
importance level, and gathering more information on significance levels of variables puts the work of Staay in the highlight
of the article (Staay, 2001). Accordingly, in the work of Bayraktaroğlu and Özgen firstly by asking questions to the focus
group on social responsibility practices, the expectations of consumers on CSR were stated. The expectations were
analyzed on the basis of 4 principles step by step, set by Staay in the Analytical Hierachy Process. Following the Analytical
Hierachy Process, a proposal on the ways that can be used by organizations to satify consumer expectations (listed near
the top) was developed. The work of Bayraktaroğlu and Özgen included two sections, and they were on qualitative and
quantitative evaluation. In the qualitative section, the expectations of consumers were defined by asking the ideas of
Istanbul Chamber of Industy is a NGO that has 13.000 members of small, medium and large scaled enterprises in business around Marmara Region
of Turkey.
*
289
consumers that are in the focus group. In the quantitavie section the questionaire based on Analytical Hierarchy Process
was prepared. The set expectations were comparatively evaluated and prioritized by the subjects. The work of Griffin and
Hauser (1993) was taken as a reference and two stepped focus group studies were conducted in order to learn consumer
expectations. In this two stepped focus group studies the responsibilities of organizations on CSR were asked to the
subjects. The stated expections were grouped and defined as primary and secondary expecations by the help of clustering
and similarity analyzes. Within this framework, 5 primary and 19 secondary expectations were stated. According to the
above mentioned results, in this paper the primary and secondary expactations that were stated in ‘The Expectations of
Consumers about Social Responsibility: Identification of Priorities by Analytical Hierarchy Process’ was used as a base of
the research.
Sample of the under-researched organizations was based on the report published by Istanbul Chamber of Industry. In this
report500 organizations with the highest net profits in the year 2011 were stated and within the limits of this research the
web sites of the top 10 private sector organizations were taken into consideration. The article ‘The Expectations of
Consumers about Social Responsibility: Identification of Prioriti es by Analytical Hierarchy Process’ written by Gül
Bayraktaroğlu and Özge Özgen used as a base of the research. Web sites were promiscuously examined within the context
consumers expect from the organizations on SR as primary and secondary expectations (Bayraktaroğlu, Özgen, 2008,
pp.321-341).
Primary Expectations
Responsibilities related to
product
the
Sensibility to environmental factors
Quality of the information shared
about the product
Responsibilities
voluntariness
related
with
Educational role of organizations on
issues related to SR
Secondary Expectations
Ranking
Healthy products
1
Safety of the product and product usage
Avoiding double standardization about the product in different
countries.
Compensate level of material or emotional damage caused by the
product or the waste-product.
2
Sensitiveness to the environment
9
Keeping on the side of law
10
Responsibility toward employees
11
Conforming to the standards
12
Behaving accordingly to cultural values
17
Informing fully
3
Informing comprehensibly
4
Informing accurately
6
SR beyond law
7
Social Charitableness
14
Non-profit SR
15
Educating consumers on SR
13
Discouraging excessive consumption
16
Educating suppliers on SR
18
Educating distributors on SR
19
5
8
Table 1:Without making any business sector discrimination, primary and secondary expectations of consumers and
importance levels paid by the researched organizations adapted from the "Comparing Primary and Secondary Expectations
Performed by Organizations Excluded from Sector Discrimination’ table. (Bayraktaroğlu, Özgen, 2008, p. 332)
The top 10 organizations were examined within the context of the above mentioned table. In the table 1 point was given to
the every secondary expectation. Total score of the primary expectations were calculated over the total of secondary
expectations. Further on which expectations that lay in the top 10 expectations list shared by the organizations were
examined.
290
Primary Expectations
Responsibilities related to the product
Sensibility to environmental factors
Quality of the information shared about
the product
Responsibilities related with
voluntariness
Educational role of organizations on
issues related to SR
Healthy products
Score
table
1
Safety of the product and its usage
1
Avoiding double standardization about the product in different
countries.
Compensating the level of material or emotional damage caused by
the product or the waste-product.
Total
1
1
1
1
1
1
Total
5
Informing fully
1
1
1
Total
3
SR beyond law
1
1
Non-profit SR
1
Total
3
1
1
1
1
Total
4
SUM TOTAL
19
1
4
Table 2: The point score table on ‘Comparing Primary and Secondary Expectations Performed by Organizations Excluded
from Sector Discrimination’
Constraints of the Research: Research was done by data collecting from organizations’ web sites. The updating rate of
information placed in the sites was the main constraint of the research.
Findings: The statements of Istanbul Chamber of Industry were used in the research. During the evaluation on
prosecuting level of above mentioned primary and secondary expectations, the placing of information about each
expectation was examined
The organizations are listed in according to these numbers in Table 2:
1. Tüpraş-Türkiye Petrol Rafinerileri A.Ş. (http://www.tupras.com.tr/)
2. Ford OtomotivSanayi A.Ş. (http://www.fordotosan.com.tr/), (http://www.ford.com.tr/)
3. Oyak-Renault OtomobilFabrikaları (http://www.oyak-renault.com.tr/), (http://www.renault.com.tr/)
4. TofaşTürkOtomobilFabrikası A.Ş. (http://www.tofas.com.tr/tr/Pages/Default.as px)
5. Arçelik A.Ş. (http://www.arcelikas.com/) , (http://www.arcelik.com.tr/default.as px?lang=tr -TR)
6. EreğliDemirveÇelikFabrikaları A.Ş. (http://www.erdemi r.com.tr/)
7. İskenderun DemirveÇelik A.Ş. (http://www.isdemir.com.tr/wps /wcm/connect/IsdemirLibrary/Is demir)
8. İçdaşÇelikEnerjiTersaneveUlaşımSanayi A.Ş. (http://www.icdas.com.tr/icdas/i ndextr.asp)
9. Aygaz A.Ş. (http://www.ay gaz.com.tr/)
10. Mercedes-Benz T.A.Ş (http://www.mercedes -benz.com.tr/)
The score of the organizations listed above related to prosecuting primary and secondary expectations can be
summarized as:
291
Primary
Expectations
Healthy products
Responsibilitie
s related to the
product
Avoiding double standardization about
the product in different countries.
Compensating the level of material or
emotional damage caused by the product
or the waste-product.
Total
Sensibility to
environmental
factors
Total
Quality of the
information
shared about
the product
Responsibilitie
s related with
voluntariness
Educational
role of
organizations
on issues
related to SR
Informing fully
Total
SR beyond law
Non-profit SR
Total
Total
SUM TOTAL
Score
Table
1
1*
2
3
4
5
6
7
8
9
10
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
-
-
-
-
-
-
-
1
-
-
1
1
1
1
1
1
1
1
-
1
1
4
1
3
1
3
1
3
1
3
1
3
1
3
1
3
1
3
1
3
1
3
1
1
1
1
1
1
1
1
1
1
1
1
1
1
-
1
1
1
-
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
-
1
1
1
1
1
1
1
1
5
1
5
1
3
1
5
1
5
1
5
1
4
1
5
1
5
1
5
1
5
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
3
1
3
1
3
1
3
-
3
1
3
1
3
1
3
1
3
-
3
1
3
1
1
1
1
-
1
1
1
1
-
1
1
1
1
1
1
1
1
1
1
-
1
1
3
1
3
1
3
1
1
1
3
1
3
1
3
1
3
1
-
3
1
3
1
1
1
1
1
1
1
-
-
-
1
1
1
-
1
-
1
1
1
1
-
1
-
1
-
1
-
1
1
-
1
-
1
-
4
19
2
16
4
16
2
14
4
18
4
18
2
15
3
17
11
4
18
1
16
Table 3: Score Table on ‘Comparing Primary and Secondary Expectations Performed by Organ izations Excluded from Sector
Discrimination’ that belong to the scope of the research.
When the organizations were examined on the information offered via organizational web sites and evaluated according
to the prepared score table listed outcomes can be seen:
o
o
Organizations in general share the information consumers want to know about organizational SR practices.
When the shared information is evaluated in direction of satisfying consumer expectations, 8 out of 10
organizations got 15 over 19 points. Two organizations got scores under 15. Organizations and their total scores
can be listed as below:
Name of the organization
TofaşTürkOtomobilFabrikası A.Ş. (automotive)
Arçelik A.Ş. (domestic appliance)
Aygaz A.Ş. (bottled gas)
İskenderun DemirveÇelik A.Ş. (iron and steel)
Türkiye Petrol Rafinerileri A.Ş. (oil)
Ford OtomotivSanayi A.Ş. (automotive)
Mercedes-Benz T.A.Ş (automotive)
EreğliDemirveÇelikFabrikaları A.Ş. (iron and steel)
Oyak-Renault OtomobilFabrikaları (automotive)
İçdaşÇelikEnerjiTersaneveUlaşımSanayi A.Ş. (steel, energy, dock and
transportation)
Total Score
18
18
18
17
16
16
16
15
14
11
292
o
o
o
All the organizations in the range of the research give information on health issues, attitude toward legal
issues, environmental consciousness, safety information on usage of the products, compliance with standards
in organizational web sites.
The topic that comes in the first place is the organizations’ inability giving adequate information about
double-standard applications of products that are produced in and for global markets on their web sites.
There are some topics that are not included on the web sites about SR practices are; 5 organizations didn’t
give any information on educating distributors on SR, 4 on educating suppliers, 3 not on preventing ways of
exaggerated consumption, 2 not on charity carried out on the behalf of society, and 1 not on educating
consumers on SR, not on applied non-profit SR practices, not on acting according to the cultural values, not on
compensating the level of material or emotional damage caused by the product or the waste-product.
Importance Level
ORGANIZATIONS
Expectations from SR
1
2
3
4
5
6
7
8
9
10
1
Healthy products
+
+
+
+
+
+
+
+
+
+
2
+
+
+
+
+
+
+
+
+
+
3
Informing fully
+
+
+
+
+
+
+
+
+
+
4
Avoiding double standardization
about the product in different
countries.
+
+
+
+
+
+
+
+
+
+
-
-
-
-
-
-
-
+
-
-
6
+
+
+
+
+
+
+
+
+
+
7
SR beyond law
Compensating the level of material
or emotional damage caused by the
product or the waste-product
+
+
-
+
+
+
+
-
+
+
+
+
+
+
+
+
+
-
+
+
9
+
+
+
+
+
+
+
+
+
+
10
+
+
+
+
+
+
+
+
+
+
5
8
A second evaluation was done according to the organizations’ initiative placing which of the ten information stated in the
‘Comparing Primary and Secondary Expectations Performed by Organizations Excluded from Sector Discrimination” table
on the web sites. In this direction SR expectations according to the importance level and their placement in the web sites
were listed as below in the table:
As seen in the table, organizations include most of the top important information about SR valued by consumers on their
web sites. The main flaw on information sharing of organizations was found on informing on double-standards in global
productions of the products.
Conclusion
To survive and even thrive in today’s difficult economic environment, many organizations start taking a fresh look at
strategies and methods for retaining customers—and if necessary renew their commitment to customer centricity. CCM
discipline is adopted to create opportunities by the extensive use of technology to learn more and more about consumers
and tailor new ways to fulfill their needs and expectations. Also CMM, supporting the market position and position for
growth by building stronger customer trust, loyalty and integrity creates a two-way communication climate between
organizations and consumers.
SR like CMM becomes a topic in building strong consumer-organization relationships, after a number of surveys and
studies pointing out the fact that consumers see SR as a very important issue, and something they expect organizations to
engage in. By the help of technology consumers become conscious and informed on the various practices of organizations
and want to learn more about organizations on SR since the topic is seen as a responsibility to be covered not just on
societal, but also on economical, ethical and legal issues. It wouldn’t be wrong to say consumer satisfactions are now
shaping over the SR practices performed.
Within the limits of the paper,the SR practices of top 10 organizations (from private sector) listed in the top 500 list
prescribed by Istanbul Chamber of Industry according to 2011 net profit on sales were evaluated in order to compare how
293
well and how much information shared onorganizations via organizational web sites met consumer expectations. This
situation indicates that big-scaled organizations in Turkey pay attention to information needs on SR practices.
As an outcome of the research most of the organizations pay importance to SR practices. On the other hand, not just
planning and informing on organizations’ desires, consumers expectations have to be covered. If enough notice will be
paid to this situation a bridge among consumers and organizations can be built and will be key point of everlasting good
relations.
References
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Analytical Hierarchy Process’Atatürk Üniversitesi İktisadi ve İdari Bilimler Dergisi, 22 (1), pp. 321-341.
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Bowd, R., Les B., Phil H. (2004), “Communicating Corporate Social Responsibility: An Exploratory Case Study of a Major UK
Retail Centre”, Journal of Public Affairs, Vol. 6, No. 2, pp.147–155.
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Consumer Trust: The Case of Fair Trade Products”, Journal of Business Ethics, Vol. 84, No.1, pp. 1–15.
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Griffin, A. and John.R. Hauser (1993), “The Voice of the Customer”, Marketing Science, 12 (1), 1-27.
High Performance in the Age of Customer Centricity, customer satisfaction research, Accenture, 2008.
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Right But What About The Public Relations Students Ideas on the Subject?". 7th International Conference on
Business, Management and Economics, The Faculty of Economics and Administrative Sciences, Çeşme-İzmir.
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Public Policy for the Private Sector, Note Number 271, pp.1-4.
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transforming the way they market, Seurat Company.
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Corporate Governance: An International Review, Vol. 7, No. 2, pp.178-193
Pollach, I. (2003). “Communicating Corporate Ethics on the World Wide Web: A Discourse Analysis of Selected Company
Web Sites”, Business & Society, Vol. 42, No. 2, pp. 277-287.
Saaty, T. L. (1994), Fundamentals of Decision Making and Priority Theory with the Analytical Hierarchy Process, RWS
Publications. Pittsburg.
Staay, T.L. (2001). The Analytic Network Process: Decision Making With Dependece and Feedback, 2.nd Ed., RWS
Publications. Pittsburg.
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Unerman, J. (2008), “Strategic Reputation Risk Management and Corporate Social Responsibility Reporting”, Accounting,
Auditing &Accountability Journal, Vol. 21, No. 3, pp.362-364.
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Management Journal, Vol. 23, No. 5, pp.495-506.
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295
A multi-stage study to measure customer
perceptions of CSR
CSR; CSR image; perceptions; customers; measurement tool; scale development
Andrea Pérez, University of Cantabria, perezran@unican.es
Ignacio Rodríguez del Bosque, University of Cantabria, rbosquei@unican.es
Abstract
Objective(s) – The increasing academic interest in Corporate Social Responsibility (CSR) has also led to the proposition of
several methodologies to measure stakeholder perceptions. This methodological diversification derives in disconnected
literature which seems quite blurred nowadays. Based on these ideas, the CSR concept now requieres clarification and
new integrative approaches to the study of this variable are needed. In this paper, the purpose of the authors is to
concentrate on this flaw of academic literature to implement a multi-stage method to develop and validate a reliable scale
aimed at evaluating customer perceptions of CSR in the banking industry.
Methodology – Three studies are developed based on both qualitative and quantiative methods. Study 1 helps the authors
to generate and exploratorily test the content validity of the measurement scale. In Study 2 the authors test the reliability
and convergent and discriminant validity of the tool. Finally, the results of Study 3 allow the researchers to demonstrate
the potential of application of the scale to causal modeling.
Conclusion – Results demonstrate the reliability and validity of the new measurement scale for evaluating customer
perceptions of the CSR performance of their banking service providers. CSR image includes customer perceptions of
corporate obligations towards customers, shareholders, employees, society and a general dimension of ethical and legal
concerns. The scale is consistent among diverse customer cohorts with different gender, age and level of education.
Furthermore, results also confirm the applicability of this new scale to structural equation modeling.
1. Introduction
A comprehensive definition to understand Corporate Social Responsibility (CSR) refers to it as all “company activities
demonstrating the inclusion of social and environmental co ncerns in business operations, and in interactions with
stakeholders, also according to the ambition levels of corporate sustainability” (van Marrewijk 2003). This concept has
gained increasing attention in both business and academic spheres especially since these kinds of investments have been
demonstrated to lead to the recovery of corporate credibility in product and company crisis, the improvement of
employees’ motivation or the establishment of beneficial relationships with stakeholders.
Nevertheless, the increased of academic interest in this concept has also led to the development of divergent definitions
for CSR, the proposal of related yet different constructs such as sustainable development, cause-related marketing or
corporate social performance, and the proposition of several methodologies and scales to measure stakeholder
perceptions of this management strategy. Therefore, as it stands right now CSR literature seems disconnected and new
integrative approaches to the study of this variable are needed.
The purpose of the authors in this paper is to concentrate on the third flaw identified in academic literature. In this regard,
the authors have identified a growing interest of marketing academics in studying CSR image as perceived by customers.
These stakeholders have received special attention since their expectations and opinions are considered to directly
influence the design and effectiveness of corporate strategies (Selvi et al. 2010). According to their relevance, academics
have proposed a growing number of scales to measure customer perceptions. Nevertheless, the proposals are generally
applied to single studies and little effort has been devoted to their systematic validation. Thus, the scales cannot be appli ed
to different contexts and longitudinal studies. Studies devoted to fill this gap in literature are needed. Based on these ideas,
296
the authors propose studying CSR image from a broader perspective than the one used by most researchers in marketing.
In doing so, stakeholder theory is considered, as it has been proposed in recent studies on CSR (Clarkson 1995; Mercer
2003; Decker 2004; Turker 2009). Nevertheless, as pointed out by Mercer (2003), most studies focusing on this issue are
theoretical in nature, thus allowing academics and practitioners to only understand the normative definition of CSR.
However, research on the specific perceptions and opinions of corporate stakeholders has been scarce so far.
In order to provide further insight into this topic, in this paper a new measurement scale, solid and reliable, is developed
to evaluate the formation of CSR image from the point of view of customers. Three sequential studies are presented which
allow us to (1) assure the content validity of our scale by means of an item generation based on an extensive literature
review and three pretests involving CSR practitioners, academics and customers; (2) positively test the reliability,
convergent and discriminant validity of the scale by implementing several tests in diverse customer samples and ( 3)
confirm the adequacy of the scale to structural equation modelling by its inclusion in a traditional causal model evaluating
the effect of CSR image in identification with the company, repurchase behaviour and willingness to recommend the
company.
The paper starts by revising academic proposals for the measurement of CSR image among customers which lead to the
identification of several flaws that need to be addressed. The methodology of the study is presented next. Furthermore, an
explanation of each of the studies and their results is included. Finally, the paper concludes with an exposition of the main
conclusions, limitations and future lines of research.
2. The measurement of CSR image in academic literature
The strong development o

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