• Title/Summary/Keyword: Promotion Focus

Search Result 763, Processing Time 0.035 seconds

The Effects of Knowledge Assets on the Performances of Startup Firms: Moderating Effects of Promotion Focus

  • Seo, Sang Yun;Kim, Sang Duck;Lee, Myoung-Soung
    • The Journal of Asian Finance, Economics and Business
    • /
    • v.5 no.4
    • /
    • pp.187-199
    • /
    • 2018
  • This study examined the effects of startup firm's knowledge assets on the effectiveness of their sales strategies, efficiency of sales activities, and management performance, after categorizing these assets into customer knowledge assets and technology knowledge assets. Furthermore, the moderating effects of promotion focus by CEOs and sales managers of startup firms were analyzed. For the analysis, dyadic questionnaire surveys were conducted targeting the CEOs and sales managers of startup firms established at the Gyeongnam Technopark and the KAIST Technology Business Incubation Center in Korea. Hypotheses were verified through structural equation modeling, and moderating effects were identified through ANOVA. CEO's customer knowledge asset strengthened their effectiveness of sales strategies, and sales manager's technology knowledge asset strengthened the efficiency of their sales activities. Also, CEO's effectiveness of sales strategies and sales manager's efficiency of sales activities have been found to enhance startup firm's management performance. Meanwhile, the moderating effect of promotion focus strengthened CEO's effectiveness of sales strategies through CEO's customer knowledge asset and interaction as CEO's promotion focus level increased, but promotion focus of sales managers did not have any significant interaction effect. This study provides implications by offering empirical evidence on startup firms with regard to knowledge assets.

The Effects of Regulatory Focus and Psychological Distance on Entrepreneurial Intention (자기규제초점과 심리적 거리가 창업태도 및 창업의도에 미치는 영향)

  • Ha, Hwan Ho;Byun, Chung Gyu
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
    • /
    • v.11 no.2
    • /
    • pp.1-8
    • /
    • 2016
  • Self Regulatory Focus Theory explained two different self-regulatory systems(promotion focus and prevention focus) to achieve a goal. According to this theory, people have different type of goal(approach pleasure and avoid pain) and use different type of strategy to achieve the goal. Promotion focus targets their attention to positive outcomes and the achievement of gains. On the other hand, prevention focus targets attention more to negative outcomes and the avoidance of losses. Also, promotion focus tends to use approach and eager strategy to achieve the goal and prevention focus tends to use avoidance and vigilant strategy. This study examined the effects of self regulation focus on attitude and intention toward business start-up. We proposed that promotion focused people will respond more positively to the attitude and intention toward business start-up than prevention focused people. This likely because promotion focused people tend to focus more ideals and gains, where prevention focused people tend to focus more safety and risk. And also we proposed that these effect will be influenced by psychological distance. This study investigated these relationships using 186 under graduate students. The result of analysis indicated that promotion focused people responded more positively on the intention toward business start-up than prevention focused people. But it had not any effect on the attitude toward business start-up than prevention focused people. Self regulation focus and psychological distance turns out to be a significant factors that influence attitude and intention toward business start-up. Finally, we concluded with a discussion of the implications of the research findings and directions for future research.

  • PDF

The Effects of Goal Incongruity between Franchisor and Franchisee on Regulatory Focus, Performance, and Opportunism of Franchisee (프랜차이즈 본부와 가맹점 간 목표불일치가 가맹점의 조절초점, 성과, 그리고 기회주의에 미치는 영향)

  • Lee, Byong-Kwan Steven;Oh, Sejo;Kim, Sang-Duck
    • Journal of Distribution Science
    • /
    • v.12 no.2
    • /
    • pp.39-47
    • /
    • 2014
  • Purpose - The ultimate goal of a franchise system comes from its win-win strategy. Agency theory uses goal incongruity to examine complex contracting problems between buyers and suppliers. Goal incongruity within a contractual relationship can be defined as the agent's desire not to cooperate. It is the degree to which the contractual terms do not satisfy the agent's goals. The greater the goal incongruity between the agent and the contract, the more likely it is that the agent will meet the terms of the contract. Thus, goal incongruity between buyers and suppliers has close relationships with both behavioral and financial performance. This study tries to examine these relationships in the franchise context using a model including related variables, such as regulatory foci, financial performance, and opportunism, to explain the reasons that not all franchisees perform their best. In particular, the study examines the effects of goal incongruity on regulatory focus, and the effects of regulatory focus on performance and opportunism. In short, the objective is to determine goal incongruity's effect on regulatory foci, and the effect of regulatory focus on performance and opportunism. Research design, data, and methodology - This study used data collected from the franchisee managers of 104 franchisors in South Korea. The franchisors include more than 10 franchisees, the majority of whom have been in business for more than five years. The study also surveyed 104 franchisees, matched with their franchisors for the sake of a dyadic approach. The study used regression analysis to test the hypotheses. Results - H1 and H2 predicted that goal incongruity would decrease promotion focus and increase prevention focus. Supporting H1, the result indicates goal incongruity had a positive effect on promotion focus. However, H2 was not supported. Goal incongruity had no significant effect on prevention focus (β = -.375, t = -4.331 and β = -.145, t = -1.950, respectively). H3 and H4 predicted that promotion focus would increase financial performance and decrease opportunism. Supporting these hypotheses, the results indicate that promotion focus had a positive effect on financial performance and a negative effect on opportunism (β = .771, t = 7.899 and β = -.765, t = -6.778, respectively). H5 and H6 predicted that prevention focus would decrease financial performance and increase opportunism. However, the results do not support these hypotheses. The results indicate that prevention focus had no effects on opportunism or financial performance (β = -.130, t = -1.070 and β = .090, t = .641, respectively). Overall, the evidence generally supported the hypotheses. Conclusion - Goal incongruity between a franchisor and a franchisee increases the franchisee's financial performance and opportunism, and the relationship is mediated by promotion focus. Interestingly, however, prevention focus has no mediating effect between goal incongruity and performance. Even though no significant relation exists between goal incongruity and prevention focus, the results have two implications. First, decreasing goal incongruity can improve financial performance and suppress franchisee opportunism. Second, the relationship between goal incongruity and performance affects promotion-focused franchisees.

The Effect of Advertisement Vividness and Regulatory Focus on Consumer Choice

  • Park, Kikyoung
    • Journal of Distribution Science
    • /
    • v.15 no.7
    • /
    • pp.25-33
    • /
    • 2017
  • Purpose - This study aims to explore how a combination of the advertisement presentation vividness and consumers' regulatory focus affects choice. In addition, it seeks to the understanding for the psychological process by using consumers' response with experimental designs. Research design, data, and methodology - This research conducted two experiments based on the scenario. Specifically, Experiment 1 used a 2 (vividness of advertisement presentation: picture vs. word) × 2 (regulatory focus: prevention focus vs. promotion focus) between-subjects design. Experiment 2 used a 2 (vividness of advertisement presentation: detailed description vs. less detailed description) × 2 (regulatory focus: prevention focus vs. promotion focus) between-subjects design. Results - Two studies showed that prevention-focused individuals, when presented with a vivid presentation, were more likely to choose the advertised option compared with advertisements presented less vividly appearance. In contrast, promotion-focused individuals showed no difference in choice shares regardless of advertisement presentation vividness. In addition, these effects were mediated by the imagery toward the advertised information. Conclusions - The current research found how consumers' inherent motivation affects the extent of imagery in a purchase decision and a new perspective to previous studies with regards to regulatory focus. Further, this research suggested new advertisement strategies to corporations.

A Study on the Differential Effect of Promotion and Prevention Focus Job Crafting on Turnover Intention: the Dual Mediating Effect of Work-related Sense of Coherence and Job strain and the Moderating Effect of Supervisor Support (향상초점과 예방초점 잡크래프팅(Job Crafting)의 차별적 효과: 이직의도에 대한 업무통합성과 직무긴장감의 이중매개효과와 상사지지의 조절효과를 중심으로)

  • Kim, Young Kug;Kim, Myoung So
    • Journal of the Korea Academia-Industrial cooperation Society
    • /
    • v.22 no.1
    • /
    • pp.728-742
    • /
    • 2021
  • The purpose of this study was to explore the dysfunctional effects of job crafting by examining (1) the sequential dual mediating effect of work-related sense of coherence (Work-SoC) and job strain on the relationship between two dimensions of job crafting (i.e., promotion focus & prevention focus) and turnover intentions, and (2) the moderating effect of supervisor support in the relationship between each focus and Work-SoC. A total of 293 employees working at various companies in Korea participated in an online survey. The results showed that promotion-focus job crafting had a direct negative effect on turnover intention, while prevention-focus job crafting had a direct positive effect. Both promotion- and prevention-focus job crafting also had indirect effects on turnover intention by partially mediating Work-SoC and job strain. Supervisor support had a moderating effect on the relationship between prevention-focus job crafting and Work-SoC, weakening the negative effect of prevention focus on Work-SoC. The implications and future directions are discussed on the basis of the results.

Examination of the moderating effect of age on the relationship between regulatory focus and happiness (조절초점과 행복감 간의 관계에 대한 연령의 조절효과 분석)

  • Kwak, Yun Jung
    • Journal of the Korea Academia-Industrial cooperation Society
    • /
    • v.18 no.5
    • /
    • pp.190-199
    • /
    • 2017
  • People's interest in how to lead a happy life when they get older is increasing because of the extension of life span due to thedevelopment of medical technology. Factors that can affect happiness or the strength of the influence of those factors may vary according to age. Previous studies, have found that individuals with promotion focus are more likely to experience happiness than those with prevention focus. However, whether this effect of regulatory focus on happiness is consistent regardless of age has not been sufficiently investigated. Therefore, 1,250 Korean adults from each age group and residence were randomly selected as thesample, and the moderating effect of age on the relationship between regulatory focus and subjective well-being was examined. The results indicated that promotion focus and age have a significant interaction effect on subjective well-being, while the interaction effect of prevention focus and age was not significant. More concretely, the positive effects of promotion focus on life satisfaction and affective balance grew stronger with increasing age. This finding implies that it is especially important for old adults to use promotion focus by actively setting challenging goals and motivating themselves to gain a sense of accomplishment to experience subjective well-being. In addition, social support is proposed as being especially important to activate their promotion focus.

The Effect of Common Features on Consumer Preference for a No-Choice Option: The Moderating Role of Regulatory Focus (재몰유선택적정황하공동특성대우고객희호적영향(在没有选择的情况下共同特性对于顾客喜好的影响): 조절초점적조절작용(调节焦点的调节作用))

  • Park, Jong-Chul;Kim, Kyung-Jin
    • Journal of Global Scholars of Marketing Science
    • /
    • v.20 no.1
    • /
    • pp.89-97
    • /
    • 2010
  • This study researches the effects of common features on a no-choice option with respect to regulatory focus theory. The primary interest is in three factors and their interrelationship: common features, no-choice option, and regulatory focus. Prior studies have compiled vast body of research in these areas. First, the "common features effect" has been observed bymany noted marketing researchers. Tversky (1972) proposed the seminal theory, the EBA model: elimination by aspect. According to this theory, consumers are prone to focus only on unique features during comparison processing, thereby dismissing any common features as redundant information. Recently, however, more provocative ideas have attacked the EBA model by asserting that common features really do affect consumer judgment. Chernev (1997) first reported that adding common features mitigates the choice gap because of the increasing perception of similarity among alternatives. Later, however, Chernev (2001) published a critically developed study against his prior perspective with the proposition that common features may be a cognitive load to consumers, and thus consumers are possible that they are prone to prefer the heuristic processing to the systematic processing. This tends to bring one question to the forefront: Do "common features" affect consumer choice? If so, what are the concrete effects? This study tries to answer the question with respect to the "no-choice" option and regulatory focus. Second, some researchers hold that the no-choice option is another best alternative of consumers, who are likely to avoid having to choose in the context of knotty trade-off settings or mental conflicts. Hope for the future also may increase the no-choice option in the context of optimism or the expectancy of a more satisfactory alternative appearing later. Other issues reported in this domain are time pressure, consumer confidence, and alternative numbers (Dhar and Nowlis 1999; Lin and Wu 2005; Zakay and Tsal 1993). This study casts the no-choice option in yet another perspective: the interactive effects between common features and regulatory focus. Third, "regulatory focus theory" is a very popular theme in recent marketing research. It suggests that consumers have two focal goals facing each other: promotion vs. prevention. A promotion focus deals with the concepts of hope, inspiration, achievement, or gain, whereas prevention focus involves duty, responsibility, safety, or loss-aversion. Thus, while consumers with a promotion focus tend to take risks for gain, the same does not hold true for a prevention focus. Regulatory focus theory predicts consumers' emotions, creativity, attitudes, memory, performance, and judgment, as documented in a vast field of marketing and psychology articles. The perspective of the current study in exploring consumer choice and common features is a somewhat creative viewpoint in the area of regulatory focus. These reviews inspire this study of the interaction possibility between regulatory focus and common features with a no-choice option. Specifically, adding common features rather than omitting them may increase the no-choice option ratio in the choice setting only to prevention-focused consumers, but vice versa to promotion-focused consumers. The reasoning is that when prevention-focused consumers come in contact with common features, they may perceive higher similarity among the alternatives. This conflict among similar options would increase the no-choice ratio. Promotion-focused consumers, however, are possible that they perceive common features as a cue of confirmation bias. And thus their confirmation processing would make their prior preference more robust, then the no-choice ratio may shrink. This logic is verified in two experiments. The first is a $2{\times}2$ between-subject design (whether common features or not X regulatory focus) using a digital cameras as the relevant stimulus-a product very familiar to young subjects. Specifically, the regulatory focus variable is median split through a measure of eleven items. Common features included zoom, weight, memory, and battery, whereas the other two attributes (pixel and price) were unique features. Results supported our hypothesis that adding common features enhanced the no-choice ratio only to prevention-focus consumers, not to those with a promotion focus. These results confirm our hypothesis - the interactive effects between a regulatory focus and the common features. Prior research had suggested that including common features had a effect on consumer choice, but this study shows that common features affect choice by consumer segmentation. The second experiment was used to replicate the results of the first experiment. This experimental study is equal to the prior except only two - priming manipulation and another stimulus. For the promotion focus condition, subjects had to write an essay using words such as profit, inspiration, pleasure, achievement, development, hedonic, change, pursuit, etc. For prevention, however, they had to use the words persistence, safety, protection, aversion, loss, responsibility, stability etc. The room for rent had common features (sunshine, facility, ventilation) and unique features (distance time and building state). These attributes implied various levels and valence for replication of the prior experiment. Our hypothesis was supported repeatedly in the results, and the interaction effects were significant between regulatory focus and common features. Thus, these studies showed the dual effects of common features on consumer choice for a no-choice option. Adding common features may enhance or mitigate no-choice, contradictory as it may sound. Under a prevention focus, adding common features is likely to enhance the no-choice ratio because of increasing mental conflict; under the promotion focus, it is prone to shrink the ratio perhaps because of a "confirmation bias." The research has practical and theoretical implications for marketers, who may need to consider common features carefully in a practical display context according to consumer segmentation (i.e., promotion vs. prevention focus.) Theoretically, the results suggest some meaningful moderator variable between common features and no-choice in that the effect on no-choice option is partly dependent on a regulatory focus. This variable corresponds not only to a chronic perspective but also a situational perspective in our hypothesis domain. Finally, in light of some shortcomings in the research, such as overlooked attribute importance, low ratio of no-choice, or the external validity issue, we hope it influences future studies to explore the little-known world of the "no-choice option."

The Influence of Brand Reputation and Chronic Regulatory Focus on the Non-similar Brand Extension (브랜드명성과 성향조절초점이 비유사 브랜드확장에 미치는 영향)

  • Kwon, Hyeok-Yoon;Kim, Sang-Dae
    • Journal of Digital Convergence
    • /
    • v.11 no.2
    • /
    • pp.167-174
    • /
    • 2013
  • In this study, we intended to show the interaction effect between brand reputation and chronic regulatory focus, and intended to show mederatory effect as an interaction as well as the main effect of two variable. To this end, Pulmuone(a high level of brand reputation) and Green(a low level of brand reputation) as parent brand and cosmetics as extention product were selected. The results of the study are as follows: The first, on brand extension evaluation, a high level of brand reputation was more positive than a low level of brand reputation. The second, brand extension evaluation was mere positive in the promotion focus group than in the prevention focus group. The third, In case of high level of brand reputation, there was no significant differences between the prevention focus group and the promotion focus group in brand extension evaluation. On the other hand, low level of brand reputation, there was significant differences between two variables. Therefore, we found the interaction effect between promotion focus group and prevention focus group.

The Effects of Construal Level and Regulatory Focus on the Attitude toward Financial Products (조절초점과 해석수준이 금융상품 태도에 미치는 영향)

  • Chun, Sungyong;Youn, Hyo Sik
    • Journal of the Korean Operations Research and Management Science Society
    • /
    • v.39 no.1
    • /
    • pp.69-81
    • /
    • 2014
  • Financial products entail either gains or losses, and customers' psychological reaction to these gains and losses affect the selection of the financial products. This study explains the financial customers' behavior by introducing consumers' psychological variables such as regulatory focus and construal levels. According to the regulatory focus theory, there are two distinct motivational orientations called promotion focus and prevention focus. And, construal level theory proposes that people use more abstract and higher levels of construal to represent objects that are more distant on psychological distance. We have incorporated these two psychological variables into financial consumer behaviors. In the experiment 1, the results have showed that promotion focused customers prefer fund products to deposit products, whereas prevention focused customers have showed the opposite result. In the experiment 2, both regulatory focus and construal level were considered. Specifically, under the high level message, promotion focused customers have showed higher preference to fund products than the prevention focused customers, and no significant difference for the deposit products. On the contrary, given the low level message, prevention focused customers have showed higher preference to both fund and deposit products than the promotion focused customers. Therefore, it comes to the conclusion that it will be efficient for the financial companies to use high level messages for the promotion focused customers and low level messages for the prevention focused customers. Implications and limitations are discussed to establish more effective marketing strategies based on the results of this study.

Consumers' Responses to Smart Home Services: The Role of Self-Regulation Systems

  • Kim, Moon-Yong;Cho, Heayon
    • International Journal of Advanced Culture Technology
    • /
    • v.9 no.1
    • /
    • pp.28-39
    • /
    • 2021
  • In the new era of IoT, a deeper and richer understanding of consumer characteristics is required to accelerate the acceptance and popularization of different types of smart home services (e.g., hedonic or utilitarian smart home services). In the current research, self-regulation systems are considered one of the consumer characteristics. Therefore, this research examines the role of consumers' regulatory focus (promotion focus vs. prevention focus) in their responses to smart home services, particularly when they are not familiar with the services. Specifically, this research examines whether consumers' attitudes toward utilitarian/hedonic smart home services differ according to their regulatory focus, particularly when they are not familiar with the services. The results indicate that consumers who are not familiar with smart home services have more favorable attitudes toward hedonic smart home services when they are promotion-focused (vs. prevention-focused). In contrast, there is no significant difference in their attitudes toward utilitarian smart home services between promotion- and prevention-focused consumers. Our findings imply that regulatory focus may be an effective marketing and segmentation tool in promoting new smart home services and facilitating low-familiarity consumers' receptiveness to the services.