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Pdfs/Ent Malaysia.Pdf Bagozzi, R., Baumgartner, H., and Yi, Y Editorial Board Balakrishnan Parasuraman Universiti Malaysia Sabah, Malaysia Benjamin James. Inyang University of Calabar, Nigeria Cyril Foropon University of Manitoba, Canada David H. Kent Golden Gate University, USA Donald Henry Ah Pak Xi’an Jiaotong-Liverpool University, China Fulford Richard Edith Cowan University, Australia Goi Chai Lee Curtin University of Technology, Malaysia Hafizi Muhamad Ali Universiti Utara Malaysia, Malaysia Kevin James Daly University of Western Sydney, Australia K. G. Viswanadhan NSS College of Engineering, India Lisa Wang Canadian Center of Science and Education, Canada Mahdi Salehi Zanjan University, Iran Matthew M.Chew Hong Kong Baptist University, Hong Kong Muhammad Aslam Khan HITEC University Taxila, Pakistan Muhammad Madi Bin Abdullah Universiti Teknologi Malaysia, Malaysia Roberto Bergami Vitoria University, Australia Sam C. Okoroafo University of Toledo, USA Sathya Swaroop Debasish Fakir Mohan University, India Tobias Basse University of Applied Sciences, Germany Wen-Hsien Tsai National Central University, TAIWAN International Journal of Business and Management October, 2009 Contents The Impact of the Marketing Activities of Family Owned Businesses on Consumer Purchase Intentions 3 Sam C. Okoroafo & Anthony Koh The Review of Empirical Researches on IT Investment Announcements on the Market Value of Firms 14 Lu Zhang & Jinghua Huang The Value Relevance of Book Values, Earnings and Cash Flows: Evidence from Korea 28 Gee-Jung, Kwon The Distinguishing Background, the Path and the Pattern--Analysis on China's Economic Growth Path in 43 the Recent 60 Years Min Liu & Jinming Wu Entrepreneurial Intention among Malaysian Undergraduates 54 Mohammad Ismail, Shaiful Annuar Khalid, Mahmod Othman, Hj.Kamaruzaman Jusoff, Norshimah Abdul Rahman, Kamsol Mohamed Kassim & Rozihana Shekh Zain Evaluation of Beijing Urban Residents’ Resource Worrying Consciousness Based on the Logistic 61 Regression Model Jiliu Sun Toward A Trustful B To B Relationship 64 Aida Matri Ben Jemaa & Nadine Tournois Research on the Long-Term Mechanism for Chinese Commercial Banks’ Risk Prevention 78 Dazhu Yan & Ying Wang Perception of Financial Distress and Customers’ Attitude toward Banking 81 Sunday Samson Babalola A Comprehensive Evaluation Analysis of Financial Core Competitiveness of Listed Companies 89 Xiaolin Chen The Background and Challenges Faced by the Small Medium Enterprises. A Human Resource 95 Development Perspective Siti Sarah bt. Omar, Lawrence Arokiasamy & Maimunah Ismail Research on Economic Procurement Models on the Basis of Controllable Lead Time 103 Xiaoping Fang, Xianyun Li & Li He Relationship between Efficiency Level of Working Capital Management and Return on Total Assets in Ise 109 Mehmet ùEN & Eda ORUÇ Study on Energy Saving and Emissions Reduction of Thermal Plants in China 115 Bing’en Kou Testing the Dimensionality of Integrated HRM Strategy among Malaysian Manufacturing Organizations 120 Hasliza Abdul-Halim & Norbani Che-Ha 1 Vol. 4, No. 10 International Journal of Business and Management Contents Analysis of the Current Financial Crisis from an Accounting Point of View 135 Fan Wu & Yu Pan Advanced Booking Discount Program: A Coordinating Strategy for SMEs Food Processors on Managing 139 Demand Uncertainty Juma Makweba Ruteri & Qi Xu Study on the Value Base of the Capability Construction of Urban Traffic System 148 Feng Han & Yachen Liu The Linkage of Employee Satisfaction and Loyalty in Hotel Industry in Klang Valley, Malaysia 152 Rahman Bin Abdullah, Noraida Bte Abdul Karim, Mohd Onn Rashidi Bin Abdul Patah, Harnizam Zahari, Gopala Krishnan Sekharan Nair & Kamaruzaman Jusoff Chinese Listed Companies Preference to Equity Fund: Non-Systematic Factors 161 Hao Zeng & Junxia Xu Sukuk (Islamic Bond): A Crucial Financial Instrument for Securitisation of Debt for the Debt-holders in 166 Shari’ah-compliant Capital Market Mohd Nasir bin Mohd Yatim A Study on Financing Preference of China Electric Power Industry 173 Xiaoyan Liu & Tao Li Unraveling the Relationship between Employees’ Perception to Organization and Turnover Intentions: 177 Exploring the Mediating Effects of Trust to Organization Belal Al-Sakarnah & Faleh Abdelgader Alhawary Development of Cultural Industries to Promote Urban Economic Development 184 Fang Hu Community Leaders’ Characteristics and Their Effort in Building Community Capacity for Tourism 187 Development in Local Communities Fariborz Aref & Ma’rof Redzuan Salary Management Model of Professional Managers-Based on “Agent and Salary Theory” and 194 “Psychological Contract Theory” Xiaoqiang Sun 2 International Journal of Business and Management October, 2009 The Impact of the Marketing Activities of Family Owned Businesses on Consumer Purchase Intentions Sam C. Okoroafo (Corresponding author) College of Business Administration, The University of Toledo 2801 W. Bancroft Street Toledo, Ohio 43606-3390, USA Tel: 419-530-4398 E-mail: [email protected] Anthony Koh College of Business Administration, The University of Toledo 2801 W. Bancroft Street Toledo, Ohio 43606-3390, USA Tel: 419-530-2287 E-mail: [email protected] This research was funded by the Center for Family Business at The University of Toledo, Ohio, USA. Abstract It has been suggested that family owned businesses are unique. Having been perceived as trustworthy and customer focused, consumers should view their strategies differently, perhaps positively. It then follows that consumers will respond favorably to the marketing activities of family owned businesses. This paper examines the impact of family businesses’ marketing activities on consumers’ purchase intention. Respondents to a mail survey indicated their degree of willingness to respond to sixteen marketing stimuli presentations of family businesses. The original sixteen items were then reduced to six variables (one dependent and five independent) using Factor analysis. Five activities-customer service, product creation, communication, delivery, and exchange were regressed against the dependent variable-purchase intention. The results showed that customer service, communication, and delivery significantly affected purchase intention. Managerial implications were then drawn from the findings. Keywords: Purchase intention, Marketing, Customer service, Exchange, Delivery, Communication 1. Introduction Models of consumer buying behavior (e.g., hierarchy of effects, AIDA) have shown that before consumers actually buy a product, they would have positive attitudes towards the brand and/or company (Pope and Voges 2000). These positive attitudes must translate to “purchase intentions,” before the actual exchange (sale) takes place (Whitelark, et. al. 1994). In other words, purchase intention is the last step in consumers buying process. So, many studies (e.g., Landon Jr. 1974; Woodside and Taylor 1978) have tried to determine stimulants of purchase intentions, as separate from the actual sales. Despite the surplus of research on purchase intentions, its applicability to family businesses has not been explored. Yet, family businesses are unique (Ibrahim, et. al. 2008; Prabhakar 2008). Studies have shown that their uniqueness can translate to a competitive advantage (Ward 1997; Miller, et. al. 2008; Cooper, et. al. 2005). For instance, Carrigan and Buckley 2008 tag it as “familiness.” Marketing departments in family owned businesses (hereafter referred to as ‘FOB’), as in other firms seek to create, capture, communicate, and deliver value to their customers (Dashew 1996). In return, they expect certain responses from their customers in terms of sales, purchase, and patronage (Srinivasan and Hanssens 2009). Consensus is developing that being a family business elicits some advantages in the marketplace (Sundaramurthy and Kreiner 2008). While studies are demonstrating differential customer response to the stimuli of family versus non-family businesses, few have actually linked it to patronage. For instance, Orth and Green (2009) showed that consumers evaluate family business better in terms of service, frontline employee benevolence, and 3 Vol. 4, No. 10 International Journal of Business and Management problem solving orientation. But they fall short of indicating whether such evaluation actually leads to purchase intention, an antecedent step to actual performance measures such as sales and profits. So this study brings together the two schools- purchase intention and family businesses together. The purpose of this research is to determine whether consumer perceptions of the marketing activities of FOBs translated to purchase intentions (willingness to buy). This paper first provides a brief overview of our theoretical and conceptual foundations related to this issue and uses them to present the research hypothesis. In the second section, the research methodology is provided and rationalized. Next, the data analysis methods are discussed. Then, the results are presented. Finally, the managerial implications and conclusions are provided. 2. Conceptual Origins and Hypothesis Researchers have always been interested in consumer reactions and responses to firms’ efforts (see, McDonald and Oates 2006). Understanding the effect of marketing activities on consumer purchase intention is important (Verhoef and Leeflang 2009). If the impact is positive, it buttresses other streams of research that show that certain activities influence performance. For instance, many studies have shown the product quality improves profitability (Kimes 2001; Lin and Germain 2003; Agus 2005). 2.1
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