||The Effect of Price, Brand Image, Perceived Risk and Hope on Perceived Value and Purchase Intention toward New Year Lucky Bags
||Institute of International Business
Lucky bag is made with various but unknown random kinds of products in a grab-bag style, and sold for at a steep discount through department stores on the first day of the New Year. Every Chinese New Year, the launch of New Year lucky bags has become a very popular trend. Many department stores will launch lucky bags on the first day of Chinese New Year with different contents and prices. In this research, the main objective of the study is to investigate the potential factors (price, brand image, perceived risk and hope) that will influence consumer on purchasing lucky bags, including their perceived value and purchase intention. Also, the interaction effects between all the potential factors will be examined in the research.
The results indicates that price, brand image, perceived risk and hope all have significant direct effect on perceived value and purchase intention. Also, there are interaction effects between the potential factors based on the results in the research. It implies that all the factors would affect each other on perceived value and purchase intention. For example, if the brand image preference is high, the effect on perceived value and purchase intention will be enhanced if the high discount offered. Thus, the research findings can be concluded as followed. First, the potential factors would effectively and directly affect respondents’ perceived value. For price, brand image and hope, theses three factors affect perceived value and purchase intention positively. For perceived risk, this factor affects dependent variables in a negative way. Second, there are interactions effects between these potential factors toward purchasing lucky bags.
CHAPTER I INTRODUCTION 1
Research Background 1
Research Objective 2
CHAPTER II LITERATURE REVIEW 6
Price Bundling 6
Perceived Value and Purchase Intention 8
Brand Image 14
Perceived Risk 17
Interactions between Independent Variables 25
Interaction between price and brand image 25
Interaction between brand image and perceived risk 26
Interaction between price and perceived risk 27
Interaction between hope and price 28
Interaction between hope and brand image 29
Interaction between hope and perceived risk 30
Conceptual Model 31
CHAPTER III METHODOLOGY 33
Operational definition of research variables 33
Independent variables 33
Dependent variables 37
Research Design 38
Product Selection 38
Experimental Materials 39
Questionnaire Design 42
Formal Data Collection 57
CHAPTER IV RESULTS AND DISCUSSIONS 59
Data Handling 59
Data Coding 60
Manipulation Check 62
Validity and Reliability 62
Variables Indexes Measurement 74
Hypothesis Testing 75
CHAPTER V CONCLUSIONS AND SUGGESTIONS 99
Empirically Tested Model 103
Academic Contributions 104
Managerial Implications 106
Limitations and Suggestions for Future Research 108
APPENDIX A: The Pretest Questionnaires (Version A, B & C) 118
APPENDIX B: The Formal Questionnaires (Version A & B) 131
Agarwal, S. & Teas, R. K. (2001). Perceived value: Mediating role of perceived risk. Journal of Marketing Theory & Practice. 9(4), 1-14.
Agarwal, S. & Teas, R. K. (2002). Cross-national applicability of a perceived quality model. Journal of Product & Brand Management, 11(4), 213-236.
Anckar, B. & D’Incau, D. (2002). Value creation in mobile commerce: Findings from a consumer survey. Journal of Information Technology Theory and Application (JITTA), 4(1), 43-64.
Barros, L. & Botelho, D. (2012). Hope, perceived financial risk and propensity for indebtedness. Brazilian Administration Review, 9(4), 454-474.
Batra, R., Ramaswamy, V., Alden, D. L., Steemkamp, J. E. M. & Ramachader, S. (2000). Effects of brand local and nonlocal origin on consumer attitudes in developing countries. Journal of Consumer Psychology, 9(2), 83-95.
Beneke, J., Flynn, R., Greig, T., & Mukaiwa, M. (2013). The influence of perceived product quality, relative price and risk on customer value and willingness to buy: a study of private label merchandise, Journal of product and brand management, 22(3), 218-228.
Biel, A. L. (1992). How brand image drives brand equity. Journal of Advertising Research, 32(6), 6-12.
Bivainiene, L. (2007). Brand image conceptualization: The role of marketing communication. Economics and Management, 304-310.
Boshoff, C., Schlechter, C., & Ward, S.-J. (2011). Consumers’ perceived risks associated with purchasing on a branded web site: The mediating effect of brand knowledge. S. Afr. J. Bus. Manage, 42(1), 45-54.
Browne, M. W. & Cudeck, R. (1993). Alternative ways of assessing model fit. In K. A. Bollen & J. S. Long (Eds.). Testing structural equation models (pp136-162). Newbury Park, CA: Sage.
Chang, M. L. & Wu, W. Y. (2012). Revisiting perceived risk in the context of online shopping: An alternative perspective of decision-making styles. Psychology & Marketing, 29(5), 378-400.
Chan-Olmsted, S.M. & Guo, M. (2011). Strategic bundling of telecommunications services: Triple-play strategies in the cable TV and telephone industries. Journal of Media Business Studies, 8(2), 63-81.
Chen, C. W., Shen, C. C. & Chiu, W. Y. (2007). Marketing communication strategies in support of product launch: An empirical study of Taiwanese high-tech firms. Industrial Marketing Management, 36(8), 1046-1056.
Choy, J. Y., Ng, C. S. & Ch’ng H. K. (2011). Consumers’ perceived quality, perceived value and perceived risk towards purchase decision on automobile. American Journal of Economics and Business Administration, 3(1), 47-57.
Chu, W., Choi, B. & Song, M. R. (2005). The role of on-line retailer brand and infomediary reputation in increasing consumer purchase intention. International Journal of Electronic Commerce, 9(3), 115-127.
Cox, D. F. & Rich, S. U. (1964). Perceived risk and consumer decision-making: The case of telephone shopping. Journal of Marketing Research, 1(4), 32-39.
Crespo, A.H., de Bosque, I. R. & Sanchez, M. M. G. (2009). The influence of perceived risk on Internet shopping behavior: A multidimensional perspectives. Journal of Risk Research, 12(2), 259-277.
Dobni, D. & Zinkhan, G. M. (1990). In search of brand image: A foundation analysis. Advances in Consumer Research, 17(1), 110-119.
Dodds, W. B., Monroe, K. B., & Grewal, D. (1991). Effect of price, brand, and store information on buyers’ product evaluation. Journal of Marketing Research, 28(3), 307-319.
Dowling, G. R. & Staelin, R. (1994). A model of perceived risk and intended risk-handling activity. Journal of Consumer Research, 21(1), 119-134.
Dunn, M. G., Murphy, P. E. & Skelly, G. U. (1986). The influence of perceived risk on brand preference for supermarket products. Journal of Retailing, 62(2), 204-216.
Fornell, C. & Larcker, D. F. (1981). Evaluating structural equation models with
unobservable variables and measurement error. Journal of Marketing Research, 8(1), 39-50.
George, D. & Mallery. P. (2003). Using SPSS for Windows step by step: A simple guide and reference. Boston, MA: Allyn & Bacon.
Guiltinan, J. P. (1987). The price bundling of services: A normative framework. Journal of Marketing, 51(2), 74-85.
Grewal, D., Krishnan, R., Baker, J. & Borin, N. (1998). The effect of store name, brand name and price discount on consumers’ evaluations and purchase intentions. Journal of Retailing, 74(3), 331-352.
Ha, H. Y. (2006). An exploratory study and consumers’ perceptions of e-reverse bundling price in online retailing. Journal of Strategic Marketing, 14(3), 211-228.
Hair, J. F. Jr, Anderson, R. E., Tatham, R. L. & Black, W. C. (1998). Multivariate Data Analysis with readings. Upper Saddle River, NJ: Prentice-Hall (5th edition).
Hameed, F. (2013). The effect of advertising spending on brand loyalty mediated by store image, perceived quality and consumer satisfaction: A case of hypermarket. Asian Journal of Business Management, 5(1), 181-192.
Hayduk, L. A. (1987). Structural equation modeling with LISREL: Essentials and advances. Baltimore: Johns Hopkins University Press.
Jacoby, J. & Kaplan, L. B. (1972). The components of perceived risk, Advanced in Consumer Research, 1(1), 382-393.
Jalalkamali, M. & Nikbin, D. (2010). The effects of motivation on purchase decision. Interdisciplinary Journal of Contemporary Research in Business, 2(8), 234-245.
Janiszewski, C. & Cunha, M. (2004). The influence of price discount framing on the evaluation of a product bundle. Journal of Consumer Research, 30(4), 534-546.
Kailani, M. A. & Kumar, R. (2011). Investigating uncertainty avoidance and perceived risk for impacting Internet buying: A study in three national cultures. International Journal of Business and Management, 6(5), 76-92.
Keller, K. L. (1993). Conceptualizing, measuring, and managing customer-based brand equity. Journal of Marketing, 57(1), 1-22.
Kumaravel, V. & Kandasamy, C. (2012). To what extent the brand image influence consumers' purchase decision on durable products. Romanian Journal of Marketing, 2012(1), 34-38.
Kwon, W. S. & Lennon, S. J. (2009). What induces online loyalty? Online versus offline brand images. Journal of Business Research, 62(5), 557-564.
Lim, N. (2003). Consumers’ perceived risk: Sources versus consequences. Electronic Commerce Research and Applications, 2(3), 216-228.
Lin, Y. C., Lee, Y. C., Lin, S. C. H. & Zheng, Y. X. (2013). The effect of impulsiveness and promotional types on purchase intentions in Taiwan: A study. The IUP Journal of Marketing Management, 7(1), 7-24.
Maciejewski, G. (2012). Perceived risk in purchasing decisions of the Polish consumers- Model-based approach. Journal of Economics & Management, 8, 37-52.
MacInnis, D. J. & de Mello, G. E. (2001). The concept of hope and its relevance to Consumer Behavior. Unpublished manuscript, Department of Marketing, University of Southern, Los Angeles, USA.
Maclnnis, D. J. & de Mello, G. E. (2005). The concept of hope and its relevance to product evaluation and choice. Journal of Marketing, 69(1), 1-14.
Ministry of Economic Affairs, R.O.C. (2013, February 7). Lucky bags standard contract. [On-line Announcement]. Retrieved from http://www.moea.gov.tw/Mns/populace/news/News.aspx?kind=1&menu_id=40&news_id=29824
Mokhtar, A. S., Abbas, K. A., Sapuan, S. M., & Ahmad, M. M. H. (2005). Consumer’s acceptability estimation of cold preserved Malaysian freshwater patin. American Journal of Applied Sciences, 2(5), 985-988.
Myung, E. & Mattila, A. S. (2010). Influence of price on consumer meal choice in a bundling context. Journal of Foodservice Business Research, 29(2), 170-188.
National Sun Yat-Sen University Survey Center. (2012, December 24). Public participation in anniversary celebration and consumer preferences survey. [On-line Announcement]. Retrieved from http://www2.nsysu.edu.tw/nsysusc/news.html
Naylor, G. & Frank, K. E. (2001). The effect of price bundling on consumer perceptions of value. Journal of Services Marketing, 15(4), 270-281.
Olderog, T. & Skiera, B. (2000). The benefits of bundling strategies. Schmalenbach Business Review, 52(2), 137-159.
Olson, E. L. (2009). The impact of intra-brand platform sharing on brand attractiveness. Journal of Product & Brand Management, 18(3), 212-217.
Peter, J. P. & Ryan, M. J. (1976). An investigation of perceived risk at brand level. Journal of Marketing Research, 13(2), 184-188.
Pina, J. M., Iversen, N. M., Martinez, E. (2010). Feedback effects of brand extensions on the brand image of global brands: A Comparison between Spain and Norway. Journal of Marketing Management, 26(9), 943-966.
Pollster Online Market Research (2012, February 16). Cheaper lucky bag would attract the willingness to buy. Retrieved from http://www.pollster.com.tw/Aboutlook/lookview_item.aspx?ms_sn=1680
Raghavendra, D. & Bharucha, V. (2009). Evolving a consumer hope scale: A preliminary study using triangulation technique. International Journal of Business Insights & Transformation, 2(2), 52-72.
Reynolds, T. J. & Gutman, J. (1984). Advertising is image management. Journal of Advertising Research, 24(1), 27-37.
Schiffman, L. G. & Kanuk, L. L. (2004). Consumer Behavior. New Jersey: Pearson Prentice Hall.
Senthilnathan, S. & Tharmi, U. (2012). The relationship of brand equity to purchase intention. IUP Journal of Marketing Management, 11(2), 7-26.
Sharpe, K. M. & Staelin, R. (2010). Consumption effects of bundling: Consumer perceptions, firm actions, and public policy implications. Journal of Public Policy & Marketing, 29(2), 170-188.
Shen, Y. C., Chi, C. H. & Chen, J. S. (2007). A new perspective on the effects of price promotions in Taiwan: A longitudinal study of a Chinese society. International Journal of Consumer Studies, 31(4), 385-390.
Sheng, S. & Pan, Y. (2009). Bundling as a new product introduction strategy: The role of brand image and bundle features. Journal of Retailing and Consumer Service, 16(5), 367-376.
Sheng, S., Parker, A. M., Nakamoto, K. (2007). The effects of price discount and product complementarity on consumer evaluations of bundle components. Journal of Marketing and Practice, 15(1), 53-64.
Simonian, M. A., Forsythe, S., Kwon, W. S. & Chattaraman, V. (2012). The role of product brand image and online store image on perceived risks and online purchase intentions for apparel. Journal of Retailing and Consumer Services, 19(3), 325-331.
Snyder, C. R., Sympson, S. C., Ybasco, F. C., Borders, T. F., Babyak, M. A. & Higgins, R. L. (1996). Development and validation of the state hope scale. Journal of Personality and Social Psychology, 70(2), 321-335.
Snyder, C. R. (2000). The past and possible futures of hope. Journal of Social and Clinical Psychology, 19(1), 11-28.
Soman, D., & Gourville, J.T. (2001). Transaction decoupling: How price bundling affects the decision to consume. Journal of Marketing Research, 38(1), 30-44.
Stremersch, S. & Tellis, G. J. (2002). Strategic bundling of products and prices: A new synthesis for marketing. Journal of Marketing, 66(1), 55-72.
Sweeney, J. C., Soutar, G. N., Johnson, L. W. (1999). The role of perceived risk in the quality-value relationship: A study in a retail environment. Journal of Retailing, 75(1), 77-105.
Tanvir, A. & Shahid, M. (2012). Impact of sports sponsorship on brand image and purchase intention. Interdisciplinary Journal of Contemporary Research in Business, 4(2), 659-667.
The Japan Times. (2011, January 8). Lucky bags give away secrets before purchase. [On-line Announcement]. Retrieved from http://blog.japantimes.co.jp/japan-pulse/tag/fukubukuro/
Rajh, S. P. (2012). Comparison of perceived value structural models. Trziste / Market, 24(1), 117-133.
Raturi, S. & Parekh, V. (2012). The impact of national apparel brand attributes on customer purchase intention. SIES Journal of Management, 8(2), 43-53.
Raza, M. A., Siddiquei, A.N., Awan, H. M., & Bukhari, K. (2012). Relationship between service quality, perceived value, satisfaction and revisit intention in hotel industry. Institute of Interdisciplinary Business Research, 4(8), 788-805.
Roselius, T. (1971). Consumer rankings of risk reduction methods. Journal of Marketing, 35(1), 56-62.
Teng, L., Laorche, M. & Zhu, H. (2007). The effects of multiple-ads and multiple-brands on consumer attitude and purchase behavior. Journal of Consumer Marketing, 24(1), 27-35.
Wikipedia (2014). Lucky Bag. Retrieved from http://en.wikipedia.org/wiki/Main_Page
Wu, W. Y., Lai, M. K., Wu, S. J. & Fu, C. S. (2012). Exploring the influential factors to the perceived value and purchase intention of online lucky bags. Institute of Interdisciplinary Business Research, 4(1), 515-531.
Yavas, U. (2003). A multi-attributes approach to understanding shopper segments. International Journal of Retail & Distribution Management, 31(11), 541-548.
Zeithaml, V. A. (1988). Consumer perceptions of price, quality and value: A means-end model and synthesis of evidence. Journal of Marketing, 52(3), 2-22.
Zeithaml, V. A. & Bitner, M. J. (2003), Services Marketing: Integrating customer focus across the Firm, 3rd ed., New York: McGraw-Hill, NY