Theme 2: Consumer power

Theme 2: Consumer power

1. Consumer Power

   • Power is the asymmetric ability to control people or valued resources in relations’.
   • Definitions
     • Asymmetric ability to control
     • People & corporate perspective
     • Valued resources
     • Social relations
   • Infrastructure
     • Hard Infrastructure
       • technological mechanisms behind websites
     • Soft Infrastructure
       • social processes built into the platforms; communal norms, regulatory mechanisms.
   • Sources of Power
     • Demand Based
     • Information Based
     • Network Based
     • Crowd Based
   • Labracque & Novak, 2013

2. Privacy and Human Behaviour

   • Acquisti 2015
   • The extent to which you share information and the control that you have over sharing this information
   • WHY?
     • Need of Intimacy
     • Need of anonimaty
   • Privacy Paradox
     • Concerns VS Behaviour
     • Information Asymmetry
   • Context Dependency
     • Reciprocity
     • Normatively
     • Privacy notes enhance trust
   • Age of Transparency
     • Consumers & Companies

3. Transparent Pricing

   • Carter & Curry 2010
   • Hypothesis
     • H1: Consumer Value is higher for transparent pricing
     • H2: Consumer Value is higher when retail price is shared with an agent
     • Methodology
       • 3 x 3 Full-factorial design
       • 15 choice-tasks
       • Dependent Variable: Which option do you prefer?
     • Results
       • Consumers prefer allocations where a higher share is allocated to the sypathetic agent
       • Consumers choose to pay a higer price when high share is allocated to the sypathetic agent
       • Customers preferred opaque pricing when the share was lower to the sympathetic agent
     • Conclusions
       • Transparency adds value to consumers
       • Tranparent pricing metirs premium pricing

4. Two-Sided Advertising

   • Eisend 2016
   • Negative information disclosure
     • Attribution Theory: Perceived truthfulness & source credibility
     • Optimal Arousal Theory: triggering attention
     • Inoculation Theory: strengthening attitudes by countering mild attacking arguments
     • Methodology
       • Meta-analysis: syntesis of privious studies
       • Combines results from different studies to identify patterns
       • Results
         • Discloruse of negative information leads to higher credibility if:
         • Negative information is not too large
         • Negative information is not very important
         • Inofrmation is comunicated before customer use
         • Negative information is in the middle of the message
         • Negative information is close related to a favourable attribute
         • Disclosure is voluntaire rather than forced
   • Discussions
     • To overcome meaninglessness, consumers look for genuine brands
     • Consumers look for authentic brands