In-Store Experimental Approach to Pricing and Consumer Behavior

This study assessed how, and to what extent, it is possible to use behavioral experimentation and relative sales analysis to study the effects of price on consumers' brand choices in the store environment. An in-store experiment was performed in four stores to investigate the effects of different prices of a target brand on consumers' relative buying behavior using an alternating treatment design with baseline. The intervention consisted of periodically reducing the target brand's price by 17–26%. Price reductions generally had none or minor effects. However, data for one store showed lower relative sales for the price reduction condition. These are surprising results and they underline the need to examine all of the marketing mix factors, not only price.     

The Impact of Contingent Reinforcement on Retail Salespersons' Performance Behaviors:

This study systematically replicates an earlier field experiment (Luthans, Paul & Baker, 1981) that found a contingent reinforcement intervention having a positive impact on functional and dysfunctional performance behaviors of salespersons in a large department store, but no reversal when there was a return to baseline conditions. By using tighter controls in the field setting, the present study found generally similar results during the intervention but, importantly, also found a reversal to occur during the post intervention phase. Implications the results have for behavioral management of salespersons' performance are discussed.     

Reducing Absenteeism and Rescheduling Among Grocery Store Employees With Point-Contingent Rewards

The purpose of this research was to evaluate a reward program designed to reduce absenteeism among staff (N = 38) at a grocery store. The intervention included public feedback and a credit reward system whereby participants got store dollars for attendance and authorized rescheduling of work assignments. Results showed that absenteeism decreased from a group mean of 8 shifts missed per week during baseline to 4.25 shifts missed per week during the intervention before increasing to 6.75 shifts missed per week during the reversal phase. The mean total rescheduling occurrences were reduced from a baseline average of 19.83 per week to 9.25 per week during the intervention and returned to 22.25 per week during the reversal. Employees were also less likely to leave early during the intervention period.     

Modifying Earplug Wearing Behavior by Behavior Modification Techniques:

A token economy system for, workers and a managerial intervention were developed in an industrial setting to modify the use of ear protectors. The token economy increased workers' use of ear protectors during work shifts, while new managerial standards maintained the level of earplug usage reached during the token economy intervention. As a result of the intervention program, earplug usage reached an operant level of about 95%. This remained stable throughout the follow-up period during which the new managerial stand was in effect. Theoretical and applied implications of organizational maintenance strategies are dismissed in view of the demonstrated effectiveness of the present intervention.     

Swimming Pool Hygiene: Self-Monitoring,Task Clarification,and Performance Feedback Increase Lifeguard Cleaning Behaviors

The effects of task clarification, self-monitoring, and performance feedback on cleaning behaviors of 9 lifeguards in 3 performance areas (vacuuming, lobby tidying, and pool deck maintenance) were investigated using an ABA reversal design at a county swim complex. A specific task in each performance area was used as a behavioral control. Following a task clarification meeting, the percentage of closing tasks completed each night was self-monitored through ratings by lifeguards and managers. Researchers conducted independent ratings of these completed tasks after the staff had left the building. Feedback data were posted daily using line graphs that displayed the percentage of tasks completed correctly from both self-report and researchers' data. Overall performance increased from an average of 45.1% correct behaviors during baseline to an average of 76.9% during intervention then reversed to baseline during follow-up to an average performance of 45.05%.     

The Effects of Graphic Feedback,Goal Setting,and Manager Praise on Customer Service Behaviors

Abstract

The current study used a multiple baseline design to investigate the effects of graphic feedback, goal setting, and manager praise on customer service behaviors in a large retail setting. Direct observation of customer greeting, eye contact, and smiling was used to collect data. After baseline data were collected feedback graphs were posted twice each week in the employee break room. A second intervention phase included goal setting and manager praise. Goals were developed based on employees' prior performance and were posted on the graphs. Managers then delivered immediate, verbal praise to employees. Graphic feedback produced slight increases in the customer interaction variables in the front of stores 1 and 2. Another small increase in performance was seen in the back of store 1 and the front and back of store 2 with the implementation of the interventions.     

Using Public Feedback and Competitive Rewards to Increase the Safe Driving of Pizza Deliverers

Abstract

This study investigated the effects of a safe driving competition facilitated by publicly-posted individual feedback. The turn-signal use, safety-belt use, and complete intersection stopping of 82 pizza deliverers were observed at two experimental and three control stores, as well as among the civilian population. After baseline observations, pizza deliverers received posted weekly individual feedback on their turn-signal use (at Store A) or complete intersection stops (at Store B). The deliverers' safe driving scores were posted individually on a vertical scale along with their names. Each week the deliverer with the highest average performance was rewarded with a free vehicle-maintenance coupon. Turn-signal use among drivers at Store A (n= 24) increased 22 percentage points from baseline to the intervention phase which was maintained into the withdrawal phase. Complete intersection stopping among drivers at Store B (n= 21) increased 17 percentage points from baseline to the intervention phase and was maintained into the withdrawal phase. Although the winners of the weekly competitions had the greatest increase in performance, non-winners also increased their instances of safe driving during the competition.     

Preventing Credit-Card Fraud: A Goal-Setting and Prompting Intervention to Increase Cashiers’ ID-Checking Behavior

A goal-setting and prompting intervention was promoted by a restaurant manager to increase the frequency of cashiers’ ID-checking behavior. An A-B-A (Baseline-Intervention-Withdrawal) reversal design at one of two restaurants showed that the socially-valid intervention increased the percentage of ID-checked purchases significantly from 2.4% at Baseline to 35.8% during the Intervention phase. ID checking decreased slightly to 30.6% during the Withdrawal phase, showing maintenance of the target behavior. The percentage of ID-checked purchases at the control restaurant was almost nonexistent throughout the 18-week study.     

On‐Shelf Availability,Retail Performance,and External Audits: A Field Experiment

A potential answer to retailer's shelf out‐of‐stocks (OOS), where the item is in the store but customers cannot find it, is to employ third‐party service providers to execute audits and corrections. However, given the nontrivial cost of executing external audits, it is still necessary to assess whether external audits are capable of reducing shelf‐OOS, whether they can be performed in an economical way, and whether the benefits from the audits translate into higher sales. In an effort to address these questions, we partnered with a product manufacturer and a retail service provider and conducted a field experiment in a national retailer's store set. We used transactional data to detect abnormal operations and respond to possible shelf‐OOS by sending auditors to correct empty shelves and incorrect inventory records. At the conclusion of the experiment, we found that Stock Keeping Units in the treatment group were less likely to have shelf‐OOS and inventory record inaccuracies, and that our intervention had a positive effect on sales. Furthermore, we found that the external audit initiative is economically viable since these improvements required low auditing efforts after a transitional period, and in steady state the cost of running the program is a small fraction of the benefits it generates. We discuss the limitations of our study and the implications of our findings for researchers and practitioners.     

Increasing the Accuracy of Computerized Summaries of Court Case Activity

This study examined data reporting problems in a local trial court environment. Inaccuracies in computerized summaries of criminal court filing documents were chronic and created problems for other individuals in the judicial system. An error reduction management intervention employing monitoring, objectives, feedback, and praise was implemented in the Clerk's Office and two other county offices to increase the accuracy of the data reported. Data accuracy increased from 45% during baseline to 95% at follow-up. The contingencies within the court and the effect of these contingencies on the attempts of the researchers to implement the performance management program are discussed.     

Child Safety in Grocery Stores: The Impact of Verbal Prompts and Reinforcement on Safety Strap Use in Shopping Carts

Head and face injuries requiring a hospital visit are a consistent problem for young children shopping with their caregivers. Falls from shopping carts are the most common cause of such injuries. Using a reversal design with a 2-month follow-up, research assistants verbally prompted caregivers with small children seated in a shopping cart to put a safety strap on their child when entering a grocery store. Compliance resulted in the child receiving a gold star sticker. The sticker was used to identify participants for subsequent data collection when exiting the store. Verbal prompts and stickers increased safety belt use, and most children (95%) remained strapped in during their entire visit. A 2-month follow-up showed the effects to be short lived.     

Keeping an Uphill Edge

Abstract

Several behaviors in a ski shop were identified as being deficient using Austin's Performance Diagnostic Checklist (2000) and Daniels and Daniels' PIC/NIC Analysis (2004). During a 4-week baseline, 7 cleaning behaviors were monitored and 5 were subsequently targeted in an intervention package using an ABC design. The intervention included: a task clarification session, a posted behavioral checklist, graphic feedback of the group's performance for the previous week, and daily task-specific feedback. Immediately after the checklist was posted, the frequency of employee cleaning behaviors increased 52%. Cleaning behaviors increased an additional 12% after the implementation of daily task-specific feedback. Results suggest the interventions generalized to the 2 cleaning behaviors not mentioned in the task-clarification session.     

Managing Retail Budget Allocation between Store Labor and Marketing Activities

The performance of a retail store depends on its ability to attract customer traffic, match labor with incoming traffic, and convert the incoming traffic into sales. Retailers make significant investments in marketing activities (such as advertising) to bring customers into their stores and in‐store labor to convert that traffic into sales. Thus, a common trade‐off that retail store managers face concerns the allocation of a store's limited budget between advertising and labor to enhance store‐level sales. To explore that trade‐off, we develop a centralized model to allocate limited store budget between store labor and advertising with the objective of maximizing store sales. We find that a store's inherent potential to drive traffic plays an important role, among other factors, in the relative allocation between advertising and store labor. We also find that as advertising instruments become more effective in bringing traffic to stores, managers should not always capitalize this effectiveness by increasing their existing allocations to advertising. In addition, we discuss a decentralized setting where budget allocation decisions cannot be enforced by a store manager and present a simple mechanism that can achieve the centralized solution. In an extension, we address the budget allocation problem in the presence of marketing efforts to shift store traffic from peak to off peak hours and show that our initial findings are robust. Further, we illustrate how the solution from the budget allocation model can be used to facilitate store level sales force planning/scheduling decisions. Based on the results of our model, we present several insights that can help managers in budget allocation and sales force planning.     

Self‐Service Operations at Retail Stores: The Role of Inter‐Customer Interactions

Inter‐customer interactions are important to the operation of self‐services in retail settings. More specifically, when self‐service terminals are used as part of customers’ checkout processes in retail operations without the explicit involvement of retailers as the direct service providers, inter‐customer interactions become a significant managerial issue. In this article, we examine the impact of inter‐customer interactions at retail self‐service terminals on customers’ service quality perceptions and repeat purchase intentions at retail stores. We conduct a scenario‐based experimental design (N = 674) using a 2 × 2 factorial design in which inter‐customer interactions are divided into “positive” vs. “negative” and occur during the “waiting” or during the actual “transaction” stages of self‐services at a retail store. We use attribution theory to develop the hypotheses. The results demonstrate that, through their interactions, fellow customers can exert influences on a focal customer's quality perceptions and repeat purchasing intentions toward a retail store. Furthermore, these influences were impacted by how customers attribute blame or assign responsibility toward the retail store. Service operations managers should leverage these interactions by designing into self‐service settings the capacities and interfaces that are best suited for customers’ co‐production of their self‐service experiences.     

The Observer Effect and Its Impact on Staff Behavior in an Acquired Brain Injury Neurobehavioral Treatment Setting

Staff in three neurobehavioral residential settings (5 in each residence for a total of 15 staff) were trained on specific positive interaction behaviors in a multiple baseline design. Staff in each of the residences were provided with recommended behaviors for interacting with residents through an observational procedure where they observed and completed checklists on video models of the targeted staff interaction behavior. In addition to staff interaction behaviors, subsequent levels of adaptive resident behaviors were also examined, such as active engagement and indices of happiness. Targeted interactions increased from an average of 7.2% of intervals during baseline to 80% during the intervention. Productive involvement engaged in by residents increased from 17.9% in baseline to 73.9% during the intervention, and the happiness indices of residents increased from 6.1% in baseline to 67.5% during the intervention.     

Weekly Feedback vs. Daily Feedback

Abstract

Two experiments were conducted in a retail setting to (a) assess the effectiveness of a multi-component performance management intervention and (b) compare the effectiveness of weekly and daily feedback. During the first experiment, a multiple baseline design was used to evaluate the effectiveness of task clarification, goal setting, access to preferred items contingent upon goal attainment, and weekly graphic feedback on the completion of routine maintenance tasks in a framing and art store. During phase 1 of the second experiment, an AB design was used to replicate the effects of this intervention on similar tasks in a new store location with the same participants. During phase 2 of the second experiment, a multiple baseline design was used to assess the effectiveness of the intervention when daily feedback replaced weekly feedback. Results indicate that the multi-component intervention was effective in both experiments, and that daily feedback may have enhanced the effectiveness of the intervention.     

The Effects of Computerized Visual Feedback Using Flashing Lights on Order Selection in Large Industrial Settings: Productivity,Accuracy, and Cost Justifications

This report from the field concerns a pilot study that used computerized visual feedback in the form of flashing lights to inform order selectors in an auto parts distribution center to fulfill store orders. Compared to paper pick lists, order selection performance and accuracy reliably increased when the delivery method was the flashing lights. The role of the organizational behavior management participant in industrial settings in designing interventions that increase accuracy and productivity was examined. More than just the intervention, the cost justification was part of the decision-making process about whether to continue with the intervention.     

The Impact of Product Returns and Retailer's Service Investment on Manufacturer's Channel Strategies*

We study the distribution channel decision of a manufacturer who considers whether to add an online channel (direct channel) to its brick‐and‐mortar retailer (indirect channel). The retailer faces the opportunity to invest in store assistance to help consumers choose products and thus reduce product returns. Special attention is given to the impact of product returns and retailer's store assistance investment on manufacturer's dual channel decision. We examine conditions under which the manufacturer uses dual channels and how various relevant factors affect its channel decision under two settings, depending on whether the retailer has its own online store or not. When the retailer does not have its online store, we find that (i) the addition of the direct channel raises the wholesale price; (ii) the direct channel addition hurts the retailer if the nonreplacement rate is low; (iii) the manufacturer has a lower incentive to add the direct channel when the retailer's service cost is lower or its returns reduction rate from service investment is higher; and (iv) the manufacturer should treat its own returns handling cost as a key factor in its channel structure decision. In addition, when the retailer operates an online store, we find that the manufacturer may have an incentive to add a direct channel such that both firms own direct channels.     

Approaching Error-Free Customer Satisfaction Through Process Change and Feedback Systems

Employee-based errors result in quality defects that can often impact customer satisfaction. This study examined the effects of a process change and feedback system intervention on error rates of 3 teams of retail furniture distribution warehouse workers. Archival records of error codes were analyzed and aggregated as the measure of quality. The intervention consisted of a process change where teams of 5 employees who had previously been assigned a specific role within the process were cross-trained to know and help with other team members' functions. Additionally, these teams were given performance feedback on an immediate, daily, and weekly basis. Team A reduced mean errors from 7.47 errors per week during baseline to 3.53 errors per week during the intervention phase. Team B experienced a reduction in mean number of weekly errors from a baseline of 11.39 errors per week to 3.82 errors per week during the intervention phase. Team C did not experience significant error rate reduction.     

Increasing Physical Therapy Equipment Preparation Using Task Clarification,Feedback and Environmental Manipulations

The purpose of this study was to increase completion of tasks related to morning preparation procedures among 2 full-time and 4 part-time employees at a physical therapy clinic. A functional assessment was conducted to aid in the development of the treatment package consisting of graphic feedback, task clarification, and equipment manipulations. Later, graphic feedback was replaced with verbal feedback from the manager to facilitate maintenance of the intervention by the manager. During baseline, the mean checklist completion percentage was 18.4% and 56.5% for the therapy area and the hygienic activity area, respectively. This improved to 82.1% and 90.3% during the first intervention phase and remained above baseline levels at 75.6% and 100% during the second intervention phase. The results of this study suggest that the package intervention derived from the assessment was effective at increasing preparation task completion. Performance maintained above baseline levels at a three-month follow-up observation for the therapy area (50%) and the hygienic activity area (83.3%). According to the treatment acceptability assessment, graphic and verbal feedback were viewed as favorable by employees.