Showing papers in "Journal of Strategic Marketing in 2014"

CRM to social CRM: the integration of new technologies into customer relationship management

Abstract: Customer relationship management (CRM) is a continually evolving domain and now social media technologies have revolutionized the way businesses and consumers interact. Hence, the new dimension of social CRM focuses on customer engagement domain, and now social media technologies have revolutionised the way businesses and consumers interact. This paper focuses on social CRM and builds on a previous CRM model proposed by Jayachandran et al. (2005), adopting the resource-based view theory and the equity theory. This paper presents a new model for social CRM, including a new construct of customer engagement initiatives and adaptations of other constructs, to take cognisance of the impact of social media technologies on CRM. Data were collected from a population of marketing practitioners using an online survey technique and the model was tested using PLS-SEM. From a theoretical perspective, the study contributes to an understanding of the change in communications between the customer and the marketer, and fo...

Exploring brand attachment, its determinants and outcomes

Abstract: Brand attachment has been regarded as a powerful and salient construct in marketing, argued to predict favourable consumer behaviours. Nevertheless, research trying to understand what are the determinants and outcomes of it is still limited. Using semi-structured interviews and projective techniques, this work identifies that self-congruity, experience, responsiveness, quality, reputation and trust are found to be the determinants of strong brand attachment. The outcomes of brand attachment are intention to recommend, purchase, revisit, resilience to negative information and act of defending the brand. This research sheds light for marketers in understanding the conceptualisation of attachment from the consumers' perspectives, so adopting an important perspective largely under-researched. In addition, this study guides marketers in the important factors regarding how to build stronger attachment and benefit from its outcomes.

Marketing mix strategies for closing the gap between green consumers' pro-environmental beliefs and behaviors

Abstract: A substantial gap – or disconnect – exists between the stated pro-environmental beliefs and actual consumption behaviors of purportedly green consumers. Given this complicating factor, the construction and execution of successful green marketing strategies generally require more than broad-brush development and applications of short-term marketing plans. This study was initiated to evaluate the influence of managed green marketing mix elements on the dimensions of consumer-based brand equity in a green marketing context, in an effort to develop insights that will allow green marketers to close this gap. The potential moderating influence of consumers' environmental concerns and their consideration of the future consequences of current behaviors are also investigated. A model is developed and tested using a snowballing sample of consumer and five global brands selected from Interbrand. Seven discrete green marketing implications – each related either to the strategic management of green products, promotion...

Managing customer citizenship behavior: a relationship perspective

Abstract: This paper aims to examine customer citizenship behavior (CCB) and explore the interrelationships between relationship value, relationship quality, relationship strength, and CCB. The study conceptualizes an integrated citizenship behavior model and applies it to India's banking services industry in the business-to-customer context. Structural equation modeling was employed to empirically test the hypotheses using a sample of 347 responses collected by a survey questionnaire. The findings indicate that relationship value significantly influences relationship quality, and relationship quality has a significant effect on relationship strength and CCBs. Relationship value had an indirect effect on relationship strength and citizenship behavior through relationship quality. This study also reveals significant differences between relationship quality and citizenship behavior across the customer's gender. Implications and future research directions of the study are proposed.

Brand orientation in small firms: an empirical test of the impact on brand performance

Abstract: Increasing attention has been paid to the concept of brand orientation over the last decade However, research on brand orientation in small firms is only in its infancy, the present study being among the first contributions to this emerging stream of research An empirical dataset of 255 responses from small service firms operating in Finland is used to test a model of the performance effects of brand orientation in the small business context In addition, the moderating effects of internal branding are investigated Confirmatory factor analysis is used in validating the constructs The research hypotheses are tested using structural equation modeling The results show a positive relationship between brand orientation and brand performance However, brand orientation does not have a direct effect on performance, but instead the effect is fully mediated by brand identity Interestingly, internal branding does not moderate any of the paths in the conceptual model

The dynamic capability of ambidexterity in hypercompetition: qualitative insights

Abstract: While dynamic capabilities are relevant for firms operating in hypercompetition, the sustainability of dynamic capabilities in hypercompetitive markets is a critically important issue that requires further exploration. We examine ambidexterity (a type of dynamic capability) in both hypercompetitive and non-hypercompetitive markets to provide an insight into its role in hypercompetition. Our qualitative findings from multiple case studies suggest that as markets become increasingly hypercompetitive, the dynamic capability of ambidexterity may need to be adopted as a temporary rather than sustainable source of advantage. However, the findings also reveal that depending on the hypercompetitive industry, ambidexterity can vary in terms of its status as a key success factor. We contribute to theory by enhancing an understanding of ambidexterity as a dynamic capability in hypercompetition and provide practical insights for managers regarding the consequences of hypercompetition for their marketing strategy.

Paths to success: an ambidexterity perspective on how responsive and proactive market orientations affect SMEs' business performance

Abstract: Despite advancements in understanding the distinction between responsive and proactive market orientations, their effects on business performance are still not explicit. Drawing on the market orientation and ambidexterity literature, this study examines how responsive and proactive market orientations affect business performance in SMEs from an ambidexterity perspective. In this study, we develop a theoretical model toward market orientation for business performance from an ambidexterity perspective. Ambidextrous market orientation (AMO) is defined as a match in the relative magnitude of responsive and proactive market orientations. Using a sample of 186 high-tech firms in China, the authors find that responsive and proactive market orientations are positively associated with exploitative and exploratory innovation strategies, respectively, and exploitative and exploratory innovation strategies are both positively related to business performance. More importantly, we find evidence consistent with the ambi...

The role of servicescape as a driver of customer value in experience-centric service organizations: the Dragon Football Stadium case

Abstract: Service experience is the core of service offering. However, research on the role of the service environment when creating experiences is still underdeveloped, and even less empirical evidence is available that relates servicescape with customers' perceptions of value. Our purpose is to focus on the role of servicescape as a driver of customer experience by analyzing its impact on customer value creation and behavior. We have chosen an experience-centric service organization, a football club, to develop our analysis. A regression analysis was performed to determine the main drivers of value among ‘sportscape’ components and how it influenced customers' attitude and behavior. A total of 349 questionnaires were collected during a match of the Portuguese Football League at Dragon Stadium. Our analysis showed that servicescape influences consumer perceived value, attitudes, and behavior when creating service experiences: value-in-context generates customers' satisfaction, which in turn has a positive effect o...

The impact of frontline employees' perceptions of internal marketing on employee outcomes

Abstract: Frontline employees (FLEs) are the face of a service organisation, dealing directly with the firms' customers, who, if effectively managed through internal marketing (IM), deliver improved customer experiences. This research develops and empirically tests whether FLEs' experience of IM programmes influences FLEs' perceptions of internal market orientation (IMO) which, in turn, will have an impact on their organisational identification (OI) and job satisfaction (JS) and, ultimately, on their customer-oriented behaviour (COB). It also tests whether perception of IMO mediates the relationship between employees' experiences of IM programmes and FLEs' OI and JS, and, in turn, whether this predicts FLEs' COB. The hypotheses were tested using a sample of 295 frontline salespeople working for a large, general Bangladeshi insurance company. The study found that FLEs' experience of IM programmes positively influenced their views of IMO. Further, FLEs' OI and JS mediated the relationship between their perceived IMO ...

Sense of virtual community and perceived critical mass in online group buying

Abstract: This study examines the effect of social influences (sense of virtual community and perceived critical mass) on online consumer behavior in online group buying (perceived risk and behavioral intention). The study tests 458 usable responses collected with mall-intercept systematic sampling from consumers with past experience in participating and purchasing on online group buying websites. Proposed hypotheses based on a review of relevant literature were tested using structural equation modeling. The findings indicate that sense of virtual community and perceived critical mass represent social influences that have a significant effect on consumers' behavioral intentions to engage in online group buying. Sense of virtual community also exerts a significant influence on perceived risk, which in turn is significantly related to online group buying intention. The implications of the findings and future research directions are discussed.

Differentiated brand experience in brand parity through branded branding strategy

Abstract: Given the existence of brand parity/brand similarity in certain product categories, it has become difficult for brand owners to provide unique brand experience to the customers. Companies therefore are increasingly depending on brands from other companies in an effort to enhance their customers' brand experience with a view to bolstering up their own brand's equity. This practice of branded branding strategy (BBS) is different from other related brand strategies such as co-branding and ingredient branding. This paper sets out to provide a theoretical explanation as to why brand parity/brand similarity occurs. This paper then introduces and defines ‘BBS’ concept and explains how it differs from other related brand strategies. Finally, the paper explains how BBS may be used by the companies to build and strengthen brand equity through provision of better brand experience.

Value-creating mechanisms within the market orientation–performance relationship: a meta-analysis

Abstract: The authors use meta-analysis to identify organizational mechanisms within the market orientation-performance relationship and to assess the implications of correlations between market orientation and complementary organizational orientations for that relationship. The meta-analysis is based on an integration of extant research of the relationships between market orientation and value-creating marketing capabilities as well as between organizational performance and market orientation, complementary organizational orientations, and value-creating marketing capabilities. The meta-analysis identifies the unique contribution of market orientation to organizational performance. Relationships between market orientation and specific organizational orientations detract from the necessity of market orientation as a precursor to organizational performance. Consistent with expectations, market orientation was found to relate differentially but still more strongly to specific types of firm-level value-creating market...

Exploring the roles of marketing and selling capabilities in delivering critical customer centric performance and brand performance outcomes for B2B firms

Abstract: Superiority in both marketing and selling (or sales) is argued to be essential for achieving specific business outcomes. While the interface between marketing and selling has received attention, there has been little, if any, research focusing on the contribution of these two important functions (residing within the marketing and sales departments) in achieving superior customer attraction, retention, and satisfaction representing key customer centric performance indicators. Specifically, we theorize that both marketing and selling capability are critical drivers of customer centric performance, which in turn enhances the firms' brand performance. Empirical findings support these theoretical propositions. We also take the view that a firms' market orientation impacts the relationship between its marketing and selling capability and customer centric performance.

The effect of online and offline word-of-mouth on new product diffusion

Abstract: This study investigates how the online and offline communication channels jointly influence a firm's new product diffusion. Considering the online and offline word-of-mouth effect, we compare three strategies through which a firm diffuses its product, i.e. offline diffusion strategy, online diffusion strategy and both offline and online diffusion strategy. The findings indicate that product peak sales rate and cumulative sales at peak time would be highest when managers market their products only through the online channel. However, product peak adopting time is not determined by the strategy which the manager takes, but is contingent on the relationship among the online/offline innovation effect, online/offline imitation effect and the proportion of offline consumers. Further parameter analysis provides several managerial insights.

IMO and different fit types as key enablers of employee brand-supporting behaviour

Abstract: This study integrates the fit theory, the equity theory and the balance theory in order to investigate the role of internal market orientation (IMO) as a philosophy that can enhance front-line employee brand-supporting behaviour both directly and indirectly through increasing their fit with their different aspects of their environment. Furthermore, it is examined whether IMO adoption facilitates several fit types, namely employee–organization fit, employee–supervisor fit, employee–job fit and employee–group fit as well as assessed the joint impact of these different types of fit on front-line employee brand-supporting behaviour.

Strategic alignment between relationship marketing and human resource management in financial services organizations

Abstract: This paper notes the critical importance of financial services firms being able to successfully implement services and relationships orientated marketing strategies. Through summarizing recent literature and outlining strategic practice, the necessity of aligning human resource management (HRM) policies with relationship marketing (RM) to achieve and sustain corporate goals is demonstrated. The results of a set of case studies and managerial interviews with senior retail banking executives from the Greek financial services sector are used to develop a framework by which this might be done. Specifically, the role of the strategically significant Human Capital Chief Enabling Officer as a link between HRM and RM is proposed and defined.

Word-of-mouth and viral marketing activity of the on-line consumer: the role of loyalty chain stages theory

Abstract: Given the undoubted importance of word-of-mouth (WOM) and viral marketing activity (VMA) for e-retail websites, the purpose of the paper is to examine the relationships between each of the loyalty stages (e.g. cognitive, affective, conative and action loyalty), as well as WOM and VMA. Using loyalty stages theory, a theoretical model was proposed and tested amongst the retail website customers. Data were collected from 509 e-retail customers using a questionnaire survey. Structural equation modelling was used to test the proposed hypotheses. Results found support for the loyalty stages theory. WOM activity was found to be significantly influenced by a consumer's conative and action loyalty, while increased affective loyalty stage was significantly related to VMA. Online retailers need to direct their efforts towards integrating the four components of the loyalty chain for enhancing the WOM behaviour and VMA. For enhancing the WOM behaviour of their website customers, online marketers need to strengthen the...

Using corporate advertising to improve public perception of energy companies

Abstract: This article examines the public opinion of energy companies and the advertising they are using in order to counteract negative consumer opinion. Since today's consumers perceive that they are paying higher prices for gasoline, they want the sense of receiving more value for their money. Many consumers now choose their gasoline based on brand benefits rather than price. Energy companies are using corporate advertising to promote the quality of their products and the consumption experience. Energy companies are also using advertising to address the consumer's concern about environmental issues. Data in this study include national public opinion data along with financial information and advertising expenditures of the top energy companies.

Entrepreneurial orientation and performance of microenterprises in an emerging economy

Abstract: Guided by the literature on institutional theory and entrepreneurial orientation (EO), this study examines the impact of the institutional environment on EO and performance of microenterprises at the subnational, city level in an emerging economy in contrast to most studies conducted at the national level in developed markets. The results of the study show that four types of formal institutions and two types of informal institutions are significantly associated with EO and that the latter is positively associated with higher levels of microenterprise performance. Implications of the results and future research directions are discussed.

Generic, genuine, or completely new? Branding strategies to leverage new products

Abstract: This research presents a framework for branding new products that distinguishes between combining a parent brand with a generic sub-brand that is little more than product category identifier, combining a parent brand with a genuine sub-brand that creates associations unique to the new product, and developing a completely new brand with no reference to the parent brand. Within the framework, branding strategies for new products depend on the fit of the new product category with product categories in which the parent brand already exists, and the congruity of the positioning strategy of the new product with the current positioning of the parent brand. Discussing examples from various industries in multiple countries, this research identifies a number of factors that influence product category fit and brand positioning congruency, and hence, determine how much product-specific brand equity is necessary to leverage the launch of the new product.

Corporate patriotism as a source of corporate reputation: a comparative multi-stakeholder approach

Abstract: This paper aims to define the concept of corporate patriotism and clarify its relationship with corporate reputation in the context of multi-stakeholder engagements. It develops a scale to measure corporate patriotism. It then determines the relative importance of corporate patriotism to the perceptions of corporate reputation in four key stakeholder relationships – consumer, purchasing, employment, individual share investment and community relationships. Our research evidence shows that the stakeholder relationship context moderates the role of corporate patriotism as a dimension of corporate reputation. The results further show significant differences in the role of national identity in organisation–stakeholder relationships. Specifically, corporate patriotism is more important for the reputation of a company as an employer and local citizen than as a provider of products and services. Marketing managers should consider the reputational advantage stemming from corporate patriotism in the design of multi...

How do customer characteristics impact behavior-based price discrimination? An experimental investigation

Abstract: We approach behavior-based price discrimination experimentally to identify customer characteristics that influence price discrimination in competitive markets. We provide insights on the impact of customer value heterogeneity and preference stochasticity on price discrimination in two period duopoly models with customer recognition. We find that sellers offer discounts to new customers when customers are homogenous and preferences are stable. While customer heterogeneity intensifies competition resulting in greater price discrimination and aggressive pricing, preference stochasticity reduces the incidence of price discrimination. Overall customer value heterogeneity and preference stochasticity do not provide the requisite conditions to ensure profitable loyalty rewards. We also find evidence of repeat purchase behavior amongst buyers and an aversion for add-on charges.

Internationalization of emerging economy firms to developed economies: a discussion on institutional pressures and marketing and supply chain capabilities

Abstract: Despite extensive research on internationalization, little attention has been paid on dynamic capabilities within the realm of marketing and supply chain management in relation to internationalization of firms. To address this gap, we theoretically address the internationalization of emerging economy firms to developed economies from the integrative perspective of marketing and supply chain management, adopting dynamic capabilities and institutional theories as theoretical bases. We theoretically analyze the relationships between marketing and supply chain capabilities and institutional pressures and advance a framework for the internationalization of emerging economy firms to developed economies. We argue that marketing and supply chain capabilities can positively influence both supply chain learning, which could be pivotal to succeed and survive in developed economies, and conformance to institutional pressures that emerging economy firms are likely to face while internationalizing to developed economies.

How to reduce the negative impact of customer non-compliance: an empirical study

Abstract: This article focuses on the notion of customer non-compliance with front-line employees' instructions and company's policies during the service encounter. The aim of the study is to offer an alternative solution to the issue of customer non-compliance, exploring the factors that reduce its negative impact on service quality. For that reason, we developed a conceptual framework integrating the negative influence of customer non-compliance on perceived service quality with three moderating effects. To test the validity of the framework, a hierarchical approach was followed and data were collected from 120 managers and 585 customers of 120 hotels. The results confirm the negative influence of customer non-compliance on perceived service quality and indicate three organizational factors as reducing moderators of this influence: customer orientation, service blueprinting effectiveness and employee empowerment. Based on these conclusions, important implications for academics and practitioners are drawn.

A taxonomy of mobile phone consumers: insights for marketing managers

Abstract: Amid less attention to the market segmentation of innovations through positioning innovations in the minds of consumers, the paper explores consumer innovativeness, need for emotion, and prestige price sensitivity to develop a taxonomy of mobile phone consumers. The study analyses survey data of 416 consumers using factor analysis and cluster analyses indicating interesting findings. Four distinct clusters emerge, namely cognitive adopters, prestige-seeking emotional innovators, emotional adopters, and prestige-seeking cognitive innovators. Findings reveal that prestige-seeking emotional innovators and prestige-seeking cognitive innovators have relatively higher level of innovativeness and prestige price sensitivity, but at the same time differ between them in terms of their level of need for emotion. The paper contributes to knowledge by suggesting that marketing constructs such as consumers' sensitivity to the prestige cue of prices as well as consumers' need for emotion are used to cluster mobile phone...

Tracing social influence in responses to strategy change in an online community

Abstract: Interest into the effects of social influence on members of online communities is growing but there is a lack of knowledge about the impact of influential members in online communities on responses to strategy change within the wider community. We explore social influence in responses to strategy change through content analysis of forum posts before and after a change in strategy. Acceptance or non-acceptance of strategy change and subsequent positive and negative behavioural responses online are dependent on individual factors. The details of these behavioural responses to a change in strategy are tabulated and included in a conceptual model to inform decision-makers. Strategy change precipitates a reduction in social influence effects. Non-acceptance of strategy change is associated with competitor advertisement, inflammatory behaviour, offensive behaviour and complaints. This negative behaviour has important ramifications for acceptance of strategy change within the wider community and impacts on the viability of setting up online forums.

Segmenting B2B Technology Markets via Psychographics: An Exploratory Study

Abstract: This article examines how marketing executives employ psychographics as part of their target marketing strategy in business technology markets. In spite of the increased attention in the recent business-to-business segmentation literature, psychographics is not used as a major segmentation dimension (only one in five companies used this base). Psychographic thinking without formal analysis, however, was a commonly used strategy evidenced by 59% of the companies. While there was no difference in target marketing success found between formal and informal psychographics, both approaches fared significantly better than firms not bringing a psychographic mindset to their segmentation strategy. Firmographic and demographic variables did not impact the use of organizational psychographics. Motivation, relationship and risk variables were used by marketing managers as psychographic inputs. Implications for management practice and a research agenda for segmentation scholars are presented.

Marketing strategies for services: is brand architecture a viable way forward?

Abstract: Importance of branding as a strategic thrust is well understood by services marketing practitioners. Yet, in developing brand architectures, some researchers have suggested that the company is the only meaningful brand for service products, whereas others have argued for the development of strong sub-brands at the product level. The main objective of this study is to assess whether services in general have the capacity to develop successful brand architectures. Using a sample of 14 representative service companies, brand associations were elicited through a free association technique. These associations were categorised under a taxonomy with five brand meaning components and were hypothesised to have a competing impact on the overall attitudes towards the service product. The results of this research support the idea of brand architecture strategies and that services have equity at the sub-brand level in cases where the sub-brand has been built up meaningfully.

Customer's relative loyalty: an empirical examination

Abstract: This study proposes and empirically tests an integrated model of customer's relative loyalty (CRL), defined as the online customer's relative patronage toward the e-retail website compared to other websites. The proposed hypotheses relating the website quality dimensions, e-satisfaction, e-customers' attitude toward e-retail website, and CRL are tested using structural equation modeling. The study identifies six dimensions of the website quality for the online retail websites, namely aesthetics, information content, navigational quality, information quality, site organization, and interactivity. Results show that aesthetics, information content, navigational quality, and information quality affect CRL positively. We also found the positive impact of e-satisfaction and attitude toward website on CRL. A dimension-specific model of website quality and CRL provides useful insights as it is more likely to reflect the customers' mental representations of the customers' consumption experience at the website. Thi...

Understanding product flexibility using SAP–LAP approach

Abstract: The purpose of this study is to assess the overall role of product flexibility in providing sustainable growth to the organization. The Situation-Actor-Process–Learning Action-Performance (SAP–LAP) model technique has been used on Tata's Nano to show the importance of product flexibility in providing a competitive edge to organizations. Cases from the corporate world are cited and the SAP–LAP model is used to clear the ambiguity of the concept. It has been found that at strategic level product flexibility acts as a distinctive competence as the organization is able to react swiftly to the changing needs and preferences of customers through the improved versions of the product while at operational level, product flexibility proves its worth by hedging the firm against the uncertain demand trends. A conceptual framework of product flexibility is developed using other cases, and its link with organizational performance has been demonstrated. The study proposes a conceptual model of product flexibility, which...