Showing papers in "Journal of Marketing in 1976"

Product Performance and Consumer Satisfaction: A New Concept

Abstract: EVEN though knowledge of the processes that may determine consumer satisfaction should be of interest to both marketing theorists and practitioners, the topic has received little attention in the literature. A growing number of studies have analyzed perceived product performance and expectations, but they have not considered the relationships between expectations, performance, and satisfaction.' In addition, it is seldom clear which general dimensions of product performance are important to the consumer and how these dimensions are related to satisfac-

The Nature and Scope of Marketing

Abstract: Can a new model of the scope of marketing help resolve the “nature of marketing” and “marketing science” controversies?

Bank Selection Decisions and Market Segmentation

Abstract: N an analysis of marketing activities in service industries, George and Barksdale concluded that although service industries have experienced unprecedented expansion in recent years, "the marketing function appears to be less structured in servicecompanies than in manufacturing firms. ... Fragmentation of marketing activities in service firms holds true for all components of the marketing mix."' Moreover, service firms appear to allocate a relatively smaller proportion of their operating budgets to marketing activity than manufacturing firms. Marketing has traditionally been the neglected stepsister in most service industries. Nowhere has this been more evident than in the market for commercial

Image Inputs to a Probabilistic Model: Predicting Retail Potential

Abstract: Can retail chain image measures be added to the Huff probabilistic model to improve predictions of retail trade?

Product Performance and Consumer Satisfaction: A New Concept: An Empirical Study Examines the Influence of Physical and Psychological Dimensions of Product Performance on Consumer Satisfaction

Abstract: E VEN though knowledge of the processes that may determine consumer satisfaction should be of interest to both marketing theorists and practitioners, the topic has received little attention in the literature. A growing number of studies have analyzed perceived product performance and expectations, but they have not considered the relationships between expectations, performance, and satisfaction.' In addition, it is seldom clear which general dimensions of product performance are important to the consumer and how these dimensions are related to satisfaction. The study reported in this article was designed to examine one aspect of the relationship between expectations, performance, and satisfaction. In particular, the authors look at the expressive (nonmaterial, psychological) and instrumental (physical) dimensions of a product, in this case clothing, to determine the extent of their influence on consumer satisfaction and dissatisfaction. Implications are given for the study of

Physical Distribution Service in Industrial Purchase Decisions

Abstract: MANAGERS of physical distribution must make decisions involving trade-offs between the service they provide customers (physical distribution) and the costs of providing that service. The focus of distribution management and research activity has typically been on minimizing the cost of the distribution system;' generally, service levels have been predetermined and considered as constraints in the cost-

Risk- and Personality-Related Dimensions of Store Choice

Abstract: A REVIEW of the retail and general marketing literature suggests that most studies dealing with store choice have focused on store image, and that the majority of these studies compared competing department stores in terms of store attributes, such as price of merchandise, convenience of store location, and expertise of store personnel.' While store image research is of considerable merit, it does not generally answer such questions as: "What psychological factors account for store choice?" "Do different types of stores fulfill unique risk-related needs for consumers of a particular class of merchandise?" and "Why do some shoppers purchase from one type of retailer, while others purchase similar merchandise from another type of retail establishment?" To examine these questions, the present research was designed to investigate how selfconfidence, perceived product risk, and product importance-three risk-perception variables-affected store choice for two groups of shoppers: those who purchased audio equipment from a specialty store and those who purchased similar products from a department store. It was anticipated that the findings would add a new dimension to the work that has already been reported and synthesized on' product choice decisions, thereby giving retailers and other marketers a richer understanding of shopping behavior.2

Assessing the Effects of Information Disclosure Requirements

Abstract: S NE continuing manifestation of consumerism is the increase in legislative and regulatory requirements for disclosure of product information. The pressure for additional information shows no signs of abating,' although the focus of the pressure is certainly changing. For the past five years the greatest emphasis has been on information about ingredients, relative prices, safety, and the useful life of products. The future will see greater attention paid to disclosures of efficiency and comparative performance information2 on a much broader array of products. Table 1 illustrates the scope of present and probable future requirements. A curious feature of the growing demand for more information is the paucity of concrete evidence that past disclosures have made significant differences in consumer or market behavior. And if the future is like the past, there will be little or no programmatic research available to help decision makers forecast the impact of new disclosure requirements.3 The lack of evidence on the behavioral effects of information disclosures is due to the relative newness of most requirements and the inherent difficulties of designing and implementing the appropriate evaluation research.4 These factors are compounded by a lack of conceptual bases for understanding how buyers use informations and confusion as to the objectives to be served by providing additional information. Without specific agreed-upon objectives there is no basis for a subsequent determination of success or failure. Yet there is seldom agreement among proponents as to whether new requirements should simply enhance the consumer's "right to know," improve the quality of products and competition, facilitate value comparisons, enable buyers to better match products and needs and thus increase purchase satisfaction, or pursue broad educational aims such as creating general public interest in nutrition or sensitivity to energy conservation. 1. See generally, Hans B. Thorelli, "Consumer Information Systems of the Future" (Distinguished Lecture in Marketing, York University, 1972); William L. Wilkie and David M. Gardner, "Marketing Research Inputs to Public Policy: The Case of the FTC," JOURNAL OF MARKETING, Vol. 38 (January 1974), pp. 38-47; William A. French and Hiram C. Barksdale, "Food Labeling Regulations: Efforts Toward Full Disclosure," JOURNAL OF MARKETING, Vol. 38 (July 1974), pp. 14-19; William C. Whitford, "Functions of Disclosure Regulation in Consumer Transactions," Wisconsin Law Review (No. 2, 1973), p. 403; and Gwen Bymers, "Seller-Buyer Communication: Point of View of a Family Economist," Journal of Home Economics, Vol. 64 (February 1972), p. 59. 2. George S. Day, "Full Disclosure of Comparative Performance Information to Consumers: Problems and Prospects," Journal of Contemporary Business, Vol. 4 (January 1975), pp. 53-68. 3. The major exceptions to this pattern have been the research on nutrient labeling and open dating. See Monroe Peter Friedman, "Consumer Responses to Unit Pricing, Open Dating and Nutrient Labeling," in Proceedings of the Association for Consumer Research, M. Venkatesan, ed. (Chicago, 1972), pp. 361-369. 4. George S. Day and William K. Brandt, "Consumer Research and the Evaluation of Public Policy: The Case of Truth in Lending," Journal of Consumer Research, Vol. 1 (June 1974), pp. 21-32. 5. William L. Wilkie, "Assessment of Consumer Information Processing Research in Relation to Public Policy Needs" (Report to the National Science Foundation, 1974). Journal of Marketing, Vol. 40 (April 1976), pp. 42-52.

Approaches to Market Segmentation Analysis

Abstract: MARKET segmentation has been accepted as a strategic marketing tool to define markets and thereby allocate resources. The concept as originally defined by Wendell Smith requires an "adjustment of product and marketing effort to (differences in) consumer or user requirements."'1 Marketers frequently cite segmentation studies for this purpose, and the term has become something of a buzzword in the literature. A debate has developed between research practitioners as to whether markets can be segmented in a valid and reliable manner. However, a growing number of researchers feel that such studies characteristi-

Competitive Advantage Variation Over The Life Cycle of a Franchise

Abstract: M UCH recent literature on franchising has dealt with the topic of a trend toward increased franchisor operation of franchisee outlets. By way of explanation of this phenomena Oxenfeldt and Kelley have suggested that the competitive advantages of franchising change, or perhaps deteriorate, over time or across the life cycle of the usual franchise contractual agreement.' Hunt provides empirical evidence in support of the Oxenfeldt-Kelley position that this changing situation manifests itself in the form of increased

Benefit Structure Analysis: A New Tool for Product Planning:

Abstract: technologies/models/processes for providing structure for consumer markets. Most of these involved the application of multivariate statistical techniques to problems of product positioning, market segmentation, the new product development process, and determining the order and structure underlying sets of marketing variables. A recent article by Green reviews and critiques many of these efforts.' This article presents another approach to structuring consumer markets: Benefit Structure Analysis. It differs from other methods in several important respects:

Bank Selection Decisions and Market Segmentation: Determinant attribute analysis reveals convenience- and sevice-oriented bank customers

Abstract: I N an analysis of marketing activities in service industries, George and Barksdale concluded that although service industries have experienced unprecedented expansion in recent years, \"the marketing function appears to be less structured in service_companies than in manufacturing firms.... Fragmentation of marketing activities in service firms holds true for all components of the marketing mix.\"! Moreover, service firms appear to allocate a relatively smaller proportion of their operating budgets to marketing activity than manufacturing firms. Marketing has traditionally been the neglected stepsister in most service industries. Nowhere has this been more evident than in the market for commercial banking services.? Banking has historically had an apparent immunity from marketing. Yet,

Applications of Focus Group Interviews in Marketing

Abstract: Basically, there are two types of group interview studies. One is nothing more than a question and answer session: the group moderator asks questions and the respondents give verbal or written answers. A second type is the focus group interview, where a group of people (generally eight to twelve) are led through an open, in-depth discussion by a group moderator. The moderator's objective is to focus the discussion on the relevant subject areas in a nondirective manner. Such interviews can be used to develop hypotheses in the planning or qualitative stage of the marketing research process. The interviews provide a basis in depth for the development of additional research, and they may be useful as a source of new and fresh ideas for new products and services, advertising themes, packaging evaluations, and the like. Marketing Applications

Planning Product Line Strategy: A Matrix Approach

Abstract: anticipated performance of its products. This information should encompass both (1) consumer evaluation of the company's products, particularly their strengths and weaknesses vis a vis competition (i.e., product positioning by market segment information); and (2) "objective" information on actual and anticipated product performance on relevant criteria such as sales, profits, and market share. Whereas much has been written in recent years about the use of product positioning in strategic marketing planning,' little new information has been published about formal methods of using the product's actual and anticipated performance characteristics in terms of sales, profits, and market share as inputs to the design of a strategic marketing plan for the firm's existing product line. Several attempts have been made to use product sales (or, more explicitly, stage in the product life cycle) as a guideline for marketing strategy, including specific recommendations on items such as the type and level of advertising, pricing, and distribution.2 Yet these recommendations have usually been vague, nonoperational, not empirically supported, and conceptually questionable, since they imply that strategies can be developed with little concern for the product's profitability and market share position.3 In the 1970s, some attention has been given to va ious aspects of sales, market share, and profitability as guidelines for marketing planning. Most notable of these efforts are the Marketing Science Institute's PIMS (Profit Impact of Market Strategy) project, which examines the determinants of profitability in the modern corporation,4 and the Boston Consulting Group's product portfolio analysis.s These approaches do not, however, provide a comprehensive approach for product line planning based on all three measures-sales, market share, and profitability-which are integrally tied to positioning the product by market segment. The objective of this

Setting Objectives and Evaluating the Effectiveness of Trade Show Exhibits

Abstract: cash customers. It appears that the effect is strongest on the"dormant" customer or one who trades less regularly. Thus, this may be a good method to arouse or regain old customers. It is possible that the reason for the decline in the second month (and part of the increase in the first month) was the advancement of purchases. People who were considering buying a month later may have been stimulated to buy sooner. These advanced purchases would probably not go beyond the second month as that would be considered too far ahead of the actual time needed. Therefore, the increase in the first month may represent the combination of added sales caused by the calls plus advanced sales from the second month. The decline the second month may be due to the fact that those purchases stimulated by the calls had already been made. The return to less dramatically increased sales in the following months may indicate the lasting effects of the calls. During the test month, newspaper advertising remained constant and radio spots were diminished. There were no special events wi thin the surrounding business community. There was no change from routine business operations. An additional, and unexpected, benefit was the sizeable increase in customers paying their delinquent accounts. Although no financial matters were discussed on the phone, the call apparently was enough to cause action. Our findings indicate that positive reinforcement of retail customers will have a favorable effect on sales. From our experience we also have Journal of Marketing, October 1976

Improving Food Marketing Systems in Developing Countries: The Experience from Latin America

Abstract: This book wraps up a decade of team experience of local professionals with MSU staff and students in the adaptation of marketing technology to "foodsheds" in Puerto Rico, Northeast Brazil, Bolivia, Colombia, and Costa Rica. The book is an important element in the tool kit of development specialists faced with practical challenges of identifying opportunities for improving agricultural production and distribution systems in developing countries, designing strategies and devising systematic coordinating mechanisms for implementation of projects consistent with national goals and priorities, and "marketing" the reforms to the concerned publics. Based on the belief that a question well asked is half the answer, the authors summarize seven common marketing system development problems that keep rural marketing costs high and make coordination difficult:

The First Forty Years

Abstract: OR 40 years, the JOURNAL OF MARKETING has played an integral role in the development of marketing as a discipline, a practice, a science. This article examines these four decades in terms of both the development of the JOURNAL itself and the developments in marketing as they have been reflected in its pages. In conclusion, some personal observations on the business-academic controversy and the importance of governmentmarketing relations are offered as clues to-and recommendations for-the future.

Cannibalism in the Marketplace

Abstract: tain quantitative and qualitative data must be collected and analyzed. The show audit should verify the projected target audience. Sales personnel should have maintained accurate records of sales leads, if that was an objective, by name, title, etc. to verify what percent of the projected target audience and actual target audience were contacted at the exhibit. A simple analysis can be conducted of the dollar cost per contact by dividing the actual total cost of participation at the show by the total number of the target audience contacted. Management can also evaluate their sales personnel's effectiveness at the show by determining the percent of the projected target audience actually contacted. If sales were an objective of the show, then an evaluation of the effectiveness will be an on-going project. Dollar cost per contact can be translated into a dollar cost per sales result if an intensive follow-up of every show contact is conducted. Costs can be readjusted every three months, or longer if the sales cycle is long, to reflect the return-on-investment to date. Follow-up of contacts should be emphasized to sales personnel even if sales were not an objective. Otherwise, show attendees may feel that their expressed interest was of no concern to the company. For a complete evaluation of the show, the company needs qualitative information such as show attendees' reaction to meetings and exhibits, average time spent in the company's booth by a target audience member, and competition's activity at the show. This is subjective information and can best be obtained by surveying a sample of the target audience, the show attendees and the company's sales personnel. Other types of subjective information can also assist management in the final evaluation: an analysis of sales personnel effort and teamwork, an analysis of the quality of the message as determined by requests for information and inquiries after the show, the functional and aesthetic attributes of the exhibit structure, and the publicity effort of other collateral materials. The trade show exhibit can be a highly efficient and effective media for communicating a message to a target audience of current or potential customers at a relatively low cost. The success of any trade show depends on the careful planning and setting of objectives in order to best match the message and the audience. It is imperative to evaluate the effectiveness of the trade show as well, since management is demanding and deserves precise measurements to determine the return on the trade show investment.

Marketing Intermediaries in Channels of Distribution for Services

Abstract: ALTHOUGH marketing is defined in terms of services as well as products, marketers generally have concentrated their attention on products, with the assumption that services are marketed using the same guidelines. In most areas, this assumption has proved essentially true; in the area of marketing channels, however, it is not only incorrect but its application has limited our understanding of the marketing of services. This article seeks to broaden this understanding by evaluating marketing channels for services as a separate decision area from those for products.

Expanding the Scope of Segmentation Research

Abstract: MARKET segmentation helps the firm gear a specific product to the likes or requirements of a particular target group. For many companies, it is far better to capture bigger pieces of fewer markets than to scramble about for a smaller share of every market in sight. The segmentation concept would be more meaningful to management if research were to cover the entire scope of the problem. This means the inclusion in the initial survey of productspecific measures on both psychographics and communications behavior in addition to the standard attitudinal and usage data. After the segments have been selected, a second-phase research should be conducted to estimate the response elasticities of different submarkets to the firm's communication mix. In this way, management will be in a firm position to evaluate the profitability of the segmentation strategy. Most of the research undertaken at present does not adopt this two-fold approach. Even the initial survey is often unsatisfactory. In some cases, the criteria employed for grouping consumers are so general that they cannot discriminate among users of various brands within a product category. In other cases, these bases are so specific that they ignore the different nuances of consumer behavior and thus are not very helpful for developing marketing strategies. A brief review of the published literature on the subject brings these problems out clearly and sets the stage for a detailed discussion of the proposed two-phase approach. A case history from the food industry illustrates the usefulness of this procedure. Pitfalls in Existing Methods

Physical Distribution Service in Industrial Purchase Decisions: A Survey of Industrial Purchasing Managers Reveals that Physical Distribution Service Rates Second Only to Product Quality in Influencing Industrial Purchase Decisions

Abstract: M of physical distribution must make decisions involving trade-offs between the service they provide customers (physical distribution) and the costs of providing that service. The focus of distribution management and research activity has typically been on minimizing the cost of the distribution system;' generally, service levels have been predetermined and considered as constraints in the costminimization problem. The revenue-generating aspects of such service have rarely been explicitly considered. If physical distribution is truly to become integrated into marketing, it is time to investigate the role that this service plays in purchasing decisions. In examining this role, this article first defines physical distribution service and briefly reviews past research in the area. Then the authors describe a national survey of industrial purchasing agents that was designed to explore: (1) the importance of physical distribution service, (2) the determinants of its importance, and (3) the determinants of purchaser satisfaction with it. The results of the research suggest a number of implications for physical distribution and marketing management.

The Role of the Industrial Distributor in Marketing Strategy

Abstract: T HE industrial distributor is an important institution in the American marketing system, yet he has received little attention from researchers. Trade association surveys have generally yielded small responses and have often been designed primarily to promote the image of the industrial distributor. Changing census definitions of this position and conflicting definitions used by different trade associations have made it virtually impossible to analyze trends in industry sales volume, degrees of specialization, firm size, and the like. Yet manufacturers who sell to other manufacturers, and the industrial distributor himself, have a vital interest in the pressures and trends affecting this marketing channel. This is especially true in the current environment of materials shortages, depressed industrial production, tight money, and rising costs, since the industrial distributor may offer the manufacturer major opportunities for improved marketing effectiveness and physical distribution efficiency. In an attempt to get an in-depth look at the industrial distributor, a field study of distributors and manufacturers was conducted in the summer

Risk- and Personality-Related Dimensions of Store Choice: To what extent do self-confidence and level of perceived risk affect a customer's choice of retail outlet?

Abstract: A REVIEW of the retail and general marketing literature suggests that most studies dealing with store choice have focused on store image, and that the majority of these studies compared competing department stores in terms of store attributes, such as price of merchandise, convenience of store location, and expertise of store personnel.' While store image research is of considerable merit, it does not generally answer such questions as: \"What psychological factors account for store choice?\" \"Do different types of stores fulfill unique risk-related needs for consumers of a particular class of merchandise?\" and \"Why do some shoppers purchase from one type of retailer, while others purchase similar merchandise from another type of retail establishment?\" To examine these questions, the present research was designed to investigate how selfconfidence, perceived product risk, and product importance-three risk-perception variables-affected store choice for two groups of shoppers: those who purchased audio equipment from a specialty store and those who purchased similar products from a department store. It was anticipated that the findings would add a new dimen-

The Prejudice against Marketing

Abstract: T HE prejudice against marketing and marketers is of ancient origin. Yet like the shark, another survivor of primordial times, it is a presence very much to be reckoned with today. The definition of marketing used here incorporates the classical economic concept of utility, a utility being the ability to satisfy a human want. Of the four utilities-form, time, place, and possession-the territory of marketing encompasses the last three. Wholesale and retail establish-

In-Home Shoppers—An Overview: This article reviews findings on in-home shoppers and points out further research needs.

Abstract: U NTIL quite recently, marketing literature overlooked shopping at home as a significant contributor to retail sales. Today, after years of relative neglect by marketing authors, in-home retailing is becoming recognized for what it has been for several decades: a modem, fast-growing, urban-oriented method of selling.' This recognition of in-home retailing's promise has produced a growing literature profiling the in-home shopper. The published studies, still relatively few, reveal some useful insights on in-home shoppers and shopping, but the evidence is scattered, sometimes conflicting, and a clear picture of the inhome shopper has yet to emerge. This article reviews available findings in an attempt to clarify what is known and not yet known about this promising market. It is perhaps useful to look first at in-home expenditures on both aggregate and household levels. An overview of these data illustrates both the growing size and diversity of the in-home market.

A Test of Positive Reinforcement of Customers

Abstract: gests that the normal probability distribution may be adequate. See: Arleigh W. Walker, "How to Price Industrial Products," Harvard Business Review, Vol. 45 (SeptemberOctober 1967), pp. 125-132. Goodness-of-fit tests did not reject the assumption that the normal probability distribution is consistent with the data. The results of the test appear sufficient to justify using a normal probability formula. 6. George S. Day, Gerald Eskin, David B. Montgomery, and Charles B. Weinberg, "Nikoll Electronics, Inc. (A)," Cases in Computer and Model Assisted Marketing: Planning (Cupertino, Cal fornia: Hewlett-Packard Company, 1973), pp. 33-39. 7. Plus or minus 1.96 standard deviations is more precise, but the use of 2 is sufficient for this model's purpose. The author wishes to thank graduate students, Paul Schurr and John McNary, for heir assistance in gathering data and coding the computer p ogram for this project. He also wishes to thank Associate Professor Charles B. Weinberg, Stanford University, for his encouragement and helpful comments.

Full Disclosure Laws in Franchising: An Empirical Investigation

Abstract: RANCHISING is a system of distributing goods and services that has three distinguishing characteristics: (1) one party (the franchisor) grants to another party (the franchisee) the right to distribute or sell certain goods or services; (2) the franchisee agrees to operate his business according to a marketing plan substantially prescribed by the franchisor; and (3) the franchisee operates his business substantially under a trademark or trade name owned by the franchisor. The franchise system of distribution annually creates new business opportunities, new services, new jobs, and new export opportunities. Although the system dates back at least to the early 1900s (with automobile, tire, and petroleum products), about 90% of all present franchisors started their businesses since 1953. Growth has been primarily in such areas as fast foods, convenience groceries, business services, hotels and motels, recreation, entertainment, and travel.' The franchise system of distribution accounts for nearly one-third of total retail sales in the United States, and it provides employment for approximately three million people.2 With this rapid growth, however, franchising has increasingly come under the scrutiny of federal and state governments. An important recent development is the passage by ten states (as of 1975) of full disclosure laws aimed at controlling unfair practices in the selling of franchises. Under these laws, franchisors must give ample unbiased information to franchisees to help them make wise investment decisions. This article examines the issue of full disclosure laws in franchising by first reviewing some of the legal problems in franchising and discussing some legislative remedies. Then the results of an empirical study of the effects of the full disclosure laws on franchising are presented. Finally, the costs and benefits of the full disclosure laws are evaluated.