Showing papers on "Marketing strategy published in 1996"

Decision-Making Under Uncertainty: Capturing Dynamic Brand Choice Processes in Turbulent Consumer Goods Markets

Abstract: We construct two models of the behavior of consumers in an environment where there is uncertainty about brand attributes. In our models, both usage experience and advertising exposure give consumers noisy signals about brand attributes. Consumers use these signals to update their expectations of brand attributes in a Bayesian manner. The two models are 1 a dynamic model with immediate utility maximization, and 2 a dynamic “forward-looking” model in which consumers maximize the expected present value of utility over a planning horizon. Given this theoretical framework, we derive from the Bayesian learning framework how brand choice probabilities depend on past usage experience and advertising exposures. We then form likelihood functions for the models and estimate them on Nielsen scanner data for detergent. We find that the functional forms for experience and advertising effects that we derive from the Bayesian learning framework fit the data very well relative to flexible ad hoc functional forms such as exponential smoothing, and also perform better at out-of-sample prediction. Another finding is that in the context of consumer learning of product attributes, although the forward-looking model fits the data statistically better at conventional significance levels, both models produce similar parameter estimates and policy implications. Our estimates indicate that consumers are risk-averse with respect to variation in brand attributes, which discourages them from buying unfamiliar brands. Using the estimated behavioral models, we perform various scenario evaluations to find how changes in marketing strategy affect brand choice both in the short and long run. A key finding obtained from the policy experiments is that advertising intensity has only weak short run effects, but a strong cumulative effect in the long run. The substantive content of the paper is potentially of interest to academics in marketing, economics and decision sciences, as well as product managers, marketing research managers and analysts interested in studying the effectiveness of marketing mix strategies. Our paper will be of particular interest to those interested in the long run effects of advertising. Note that our estimation strategy requires us to specify explicit behavioral models of consumer choice behavior, derive the implied relationships among choice probabilities, past purchases and marketing mix variables, and then estimate the behavioral parameters of each model. Such an estimation strategy is referred to as “structural” estimation, and econometric models that are based explicitly on the consumer's maximization problem and whose parameters are parameters of the consumers' utility functions or of their constraints are referred to as “structural” models. A key benefit of the structural approach is its potential usefulness for policy evaluation. The parameters of structural models are invariant to policy, that is, they do not change due to a change in the policy. In contrast, the parameters of reduced form brand choice models are, in general, functions of marketing strategy variables e.g., consumer response to price may depend on pricing policy. As a result, the predictions of reduced form models for the outcomes of policy experiments may be unreliable, because in making the prediction one must assume that the model parameters are unaffected by the policy change. Since the agents in our models choose among many alternative brands, their choice probabilities take the form of higher-order integrals. We employ Monte-Carlo methods to approximate these integrals and estimate our models using simulated maximum likelihood. Estimation of the dynamic forward-looking model also requires that a dynamic programming problem be solved in order to form the likelihood function. For this we use a new approximation method based on simulation and interpolation techniques. These estimation techniques may be of interest to researchers and policy makers in many fields where dynamic choice among discrete alternatives is important, such as marketing, decision sciences, labor and health economics, and industrial organization.

SERVQUAL revisited: a critical review of service quality

Abstract: As competition becomes more intense and environmental factors become more hostile, the concern for service quality grows. If service quality is to become the cornerstone of marketing strategy, the marketer must have the means to measure it. The most popular measure of service quality is SERVQUAL, an instrument developed by Parasuraman et al. (1985; 1988). Not only has research on this instrument been widely cited in the marketing literature, but also its use in industry has been quite widespread (Brown et al., 1993).

Marketing Across Cultures

Abstract: Table of contents PART I: THE CULTURAL VARIABLE IN INTERNATIONAL MARKETING 1. The cultural process 2. Cultural dynamics 1: time and space 3. Cultural dynamics 2: interactions, mindsets and behaviours PART II: THE INTEGRATION OF LOCAL CONSUMPTION IN A GLOBAL MARKETING ENVIRONMENT 4. Cross-cultural consumer Behaviour 5. Local consumers and the globalisation of consumption 6. Cross-cultural market research PART III: MARKETING DECISIONS FOR THE INTERCULTURAL ENVIRONMENT 7. Intercultural marketing strategy 8. Product policy 1: physical, service and symbolic attributes 9. Product policy 2: managing meaning 10. The critical role of price in relational exchange 11 .International distribution and sales promotion PART IV: INTERCULUTURAL MARKETING COMMUNICATIONS 12. Language, culture and communication 13. Intercultural marketing communications 1: advertising 14. Intercultural marketing communications 2: personal selling, networking and public relations

Relationship marketing: strategic and tactical implications

Abstract: Discusses the logic of the re‐emerging relationship approach to marketing and presents key strategic as well as tactical implications for a firm attempting to apply a relationship marketing strategy. Notes that major changes in the business philosophy may be required if relationship marketing is truly to be adopted. Otherwise the firm may just be paying lip‐service to the new philosophy. Using direct marketing techniques and developing partnerships alone are not sufficient. Relationship marketing requires much more than that.

The Quality and Effectiveness of Marketing Strategy: Effects of Functional and Dysfunctional Conflict in lntraorganizational Relationships

Abstract: By examining only dysfunctional conflict and ignoring functional conflict, empirical research in marketing has presented only part of the story. This research offers the first systematic look at the antecedents and consequences of both functionaland dysfunctional conflict in intraorganiational relationships. The authors develop and empirically test a causal model for key organizational antecedents of new product strategy quality and market performance. They find that dysfunctional conflict in the decision-making process has deleterious consequences for quality of strategy and market performance, whereas functional conflict improves both quality of strategy and performance. Specifically, organizational design characteristics such as formalization, interdepartmental interconnectedness, low communication barriers, and team spirit improve new product performance by enhancing functional conflict, whereas centralization and high communication barriers lower new product performance by increasing dysfunctional conflict. A post hoc test for common method bias or variance suggests that bias or variance alone cannot explain these findings.

Relationship marketing in consumer markets

Abstract: The ideas of relationship marketing have so far mainly been applied to industrial and services marketing, but may also have some relevance for consumer marketing. This paper suggests that marketing relationships will be easier to form in some types of consumer market than others, and that this inherent “relationship‐friendliness” will depend upon certain characteristics of both the market segment and the product field in question. A simple typology of consumer markets is proposed as a basis for further research in this field: it is suggested that suppliers can take action, including offering incentives, to increase the natural relationship potential of a particular product market, but that care should be taken to distinguish between actions that aim to develop marketing relationships and actions that are more appropriately interpreted and evaluated as sales promotions.

Country of origin marketing over the product life cycle: A Danish case study

Abstract: Discusses the appropriateness of using national image for international marketing purposes, based on an empirical survey carried out among 100 Danish export firms, from which the marketing strategies underlying the use of nationality in the promotion of Danish products abroad have been identified. Presents some general guidelines for the building of international brands and product images based on national image, and submits suggestions for further research. Finally, suggests that while a symbolic linkage between product and country of origin can be a useful positioning strategy in the beginning of a product’s life cycle, brand building through more abstract and emotional imagery becomes increasingly important in the later stages of the product life cycle.

Marketing Planning and Strategy

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Relationship marketing and imaginary organizations: a synthesis

Abstract: Explores the dependency between relationship marketing (RM) and new developments in organization theory. In RM, relationships, networks and interaction are in focus. The primary role of marketing is to connect suppliers and customers but RM also includes relationships with other stakeholders, both inside and outside the organization. Presents a theoretical discourse based on two recent developments in Nordic research. One is RM and its emergence from traditional marketing, services marketing, the network approach of industrial marketing, and quality management. The other is research concerning imaginary organizations, in which the organization consists of a network of relationships between suppliers, customers, subcontractors, competitors, authorities and others, rather than being a structure with clear boundaries. The synthesis of RM and imaginary organizations leads to the concept of complete marketing equilibrium, where not only the market but also the organization and society are included in a network of interactive relationships.

Marketing Strategies and Market Prospects for Environmentally‐Friendly Consumer Products1

Abstract: Recent evidence suggests that the extent of consumer adoption of 'green' products is much less than would be indicated by the enthusiastic opinion poll evidence concerning public attitudes towards environmentally-friendly consumption This paper reports on an empirical analysis of firms' marketing strategies and their influence on consumer demand for green products In twenty 2-3 hour interviews with senior managers, four representative groups of markets were analysed: household detergents, paper (recycled), petrol (unleaded) and automobile technology (focusing on catalytic converters) According to managers, firms' marketing strategies influenced consumer demand by making green technologies available in the first instance However, barriers to supplying green products that show parity with, or better performance than, conventional technologies constrain pricing and communication efforts Managers stressed that, in the absence of clarity of green products' environmental benefits, product performance and other attributes, not green benefits, remain the main determinants of product preference and choice Promotions focused much more on consumers than distribution channels, yet channel acceptance and support of green innovations are paramount in facilitating sales Firms see the costs of generating and promoting desirable green technologies as barriers to diffusion in the immediate future Legislation and/or economic incentives may help, but manufacturers are not optimistic that future green consumption rates will accelerate The results also highlight several propositions concerning the discrepancy between consumer environmental concerns and purchasing actions which warrant further testing: there is mis-specification of green products in relation to consumers' needs; there are barriers to perceptions of green products' environmental impact and consumers' free ride due to individual self-interest

Customer defection: a study of the student market in Ireland

Abstract: Relationship marketing stresses that relationships, and not just transactions, should be the focus of marketing strategy. Part of the rationale for this lies in retention economics which are thought to be particularly powerful. Recent literature suggests that reduction of the defection rate can increase profits far more than growth in market share, better margins and other factors usually associated with competitive advantage. This paper reports the findings of a detailed analysis into the defection rate of university student accounts from financial service organizations throughout Ireland. University students’ accounts are a particularly illustrative case study since, a priori, their lifetime value, in terms of future revenue streams, have the potential of being greater than that of many other customer types. This paper then discusses defection issues and then presents evidence from the survey. Finally, the policy and strategic implications are examined.

Political marketing and the marketing concept

Abstract: Refers to the argument that examining political and electoral processes from a marketing perspective offers new insights into the behaviour of political parties. However, research into the marketing activities of political parties is still growing at this stage, and very few papers address the marketing orientation of political parties, while none address the marketing concept. Presents the findings of an exploratory research project carried out in Queensland. The results indicate that key political marketing decision makers within the party examined often have a limited understanding of the marketing concept. The researcher’s redefinition of the marketing concept into political terms received a high level of acceptance from certain groups of respondents within the study. Shows that the marketing concept with its customer centred orientation created a major concern from the perspective of the state executive decision‐making category interviewed in this study. This was so primarily because this key decision‐making category indicated the role and significance of the voter (customer) in developing the political product is negligible.

Relationship Marketing: the Importance of Customer-Perceived Service Quality in Retail Banking

Abstract: During the last couple of years relationship marketing has been introduced within services marketing since more efficient, profitable and long-term marketing can be achieved by focusing on present customers instead of concentrating on attracting new ones. Retail banks have in this respect had a unique position as they have a well-developed system of local offices that enable them to be close to and to establish relationships to their customers. A prerequisite for a bank that wants to establish long-term customer relationships is satisfied customers who want to remain customers. In other words, the service quality as perceived by the customers must at least meet their expectations. Otherwise there is a possibility that a dissatisfied customer starts searching for another bank offering similar services, resulting in a break in the relationship with the bank, with which he was dissatisfied.

Relationships Between Involvement and Attitudinal Loyalty Constructs in Adult Fitness Programs

Abstract: The primary intent of the present study was to investigate the relationships among the participants' attitudinal loyalty profiles and involvement profiles. Data for this investigation were derived ...

Marketing-Mix Standardization : Determinants of Export Performance

Abstract: The increasing globalization of worl markets has made international marketing strategy more important than ever. Unfortunately, research about it has tended to use simple measures of performance and a limited set of explanatory strategy variables. The research reported here identifies strategies that lead to export performance. It includes a more comprehensive set of explanatory variables than previous studies and evaluates the reliability and validity of these measures. Research hypotheses are tested by data generated from a mail survey and in-depth interviews. Export performance is seen as an outcome of standardizing or adapting marketing strategies. Empirical results and s synthesis of in-depth interviews support some research hypotheses. The findings are used to generate a number of managerial implications in the context of international marketing strategy.

Order of Entry as a Moderator of the Effect of the Marketing Mix on Market Share

Abstract: Order of entry has been demonstrated to have a significant effect on market share. A number of explanations for this effect have been suggested in the marketing and strategy literatures. To date, the market share advantage gained by pioneers has typically been treated as a main effect---an automatic regularity. Treating order-of-entry as a main effect implies that there is no penalty on the effectiveness of a brand's marketing instruments for late entry and that a late entrant can compensate for being late by dedicating sufficient marketing resources to their product. In this study, we investigate the influence of order-of-entry into a market on the effectiveness of a firm's marketing mix decisions by asking the question, “Can followers compensate for not being first by their marketing mix decisions?” Also, even if they can compensate for being late, does this effort become increasingly more difficult with later entry? That is, are there asymmetries in the effectiveness of a brand's marketing mix variables that relate to its order of entry into the market, or as has been typically assumed to date, is order of entry strictly a main effect? An asymmetry exists, for example, if the market response to advertising is different for the first entrant versus the second or third entrant. An asymmetry also exists if the effects of, say, a price change by the first entrant on the second entrant are different than the effects on the third entrant. We develop a market share attraction model where the parameters vary as a function of order-of-entry. Our main contribution is in modeling the sources of order-of-entry advantage as asymmetries in the effectiveness of a brand's marketing instruments. Hence, distinct from previous research we explain why there are inherent order-of-entry effects. This paper is potentially of interest to researchers developing market share models and studying the effectiveness of marketing-mix variables. The substantive implication of our results concern directly academics interested in marketing strategy as well as the practicing marketing strategists. We model asymmetries in the market response of early entrants versus late entrants using data from two durables and three nondurables categories. With one exception, all data sets are established from the inception of the category and hence do not suffer from the possible bias of excluding pioneers who have failed. Results show that asymmetries in the effectiveness of a brand's marketing mix variables are an essential source of order-of-entry effects; we find that the main effects of order of entry are minimal. Order-of-entry effects do not necessarily lead to lower shares, but overcoming these effects is not without substantial cost to the late entrant. Our results support previous research that has demonstrated advantages to early entry. In addition, we provide guidelines for how late entrants should compete. Later entry tends to reduce a competitor's price sensitivity, suggesting that they not instigate in a price war with earlier entrants in order to gain share. Order-of-entry tends to decrease response to quality and to promotion. To achieve the same impact on market share, later entrants need a bigger change in quality and need to spend more on promotion. Our data did not support an asymmetric effect on advertising.

Do small businesses have to practise marketing to survive and grow

Abstract: Addresses the relevance of marketing principles and how marketing should be practised in very small or micro firms by studying new start businesses in the West Yorkshire area. Reports qualitative research findings from in‐depth interviews with a sample of 18 small business founders using simple content analysis and case study techniques. Addresses specific topics including customers and customer focus; competitive advantage and positioning; marketing communications; marketing planning and strategy; and key issues involved in business growth and development. Concludes with a summary of how marketing is practised in small businesses, based on the research findings; an examination of marketing in different types of businesses; and recommendations on how marketing can help small businesses improve performance and achieve growth.

The New Marketing Paradigm: Integrated Marketing Communications

Abstract: This book tells why mass marketing no longer works - and shows how integrated communications programs can respond to each customer.

Measuring the joint effect of brand and country image in consumer evaluation of global products

Abstract: States that few studies have attempted to measure the joint effect of brand and country images, or the dimensions of these images, on consumer evaluation of global products. Suggests a methodology for defining product value by consumers’ perception of brand and country image dimensions when sourced internationally. Brand‐country image profiles were factor analysed to provide dimensions of each brand‐country combination. Shows that consumer perception of product value changes, evidenced by brand‐country dimensions, as production is sourced internationally, and suggests a modified marketing strategy.

From brand values to customer value

Abstract: Many commentators have recently questioned the validity of the traditional precepts on which the marketing concept is based, and have suggested that marketing has failed to deliver its long promised prize in the form of sustainable competitive advantage. Suggests that the need for marketing today is as strong as ever. However, the practice of marketing must change its focus, to go beyond a narrow concern with brand values and instead to emphasize the creation of customer value as the over‐riding objective of marketing activity.

Market-Based Management

Abstract: For courses in marketing management or marketing strategy. A focus on how marketing performance, profitability, and strategies affect profit. Measuring performance and profitability in marketing is becoming more and more important in the business world. Best focuses on marketing performance, and profitability, and the role marketing strategies play in building the profits of a business. This edition further builds on the metrics and analytics focus, while incorporating the rise of technology in marketing.

Global Marketing: Foreign Entry, Local Marketing & Global Management

Abstract: Part I: Fundamentals Chapter 1: The Global Marketing Job Chapter 2: Theoretical Foundations Chapter 3: Cultural Foundations Part II: Foreign Entry Chapter 4: Country Attractiveness Chapter 5: Export Expansion Chapter 6: Licensing, Strategic Alliances, FDI Part III: Local Marketing Chapter 7: Understanding Local Buyers Chapter 8: Local Marketing in Mature Markets Chapter 9: Local Marketing in New Growth Markets Chapter 10: Local Marketing in Emerging Markets Part IV: Global Management Chapter 11: Global Segmentation and Positioning Chapter 12 Global Products Chapter 13: Global Services Chapter 14: Global Pricing Chapter 15: Global Distribution Chapter 16: Global Advertising Chapter 17: Global Promotion, E-Commerce, and Personal Selling Chapter 18: Organizing for Global Marketing Appendix: Global Marketing Planning

Do better at doing good

Abstract: Managers in charge of developing marketing strategies for social change efforts often rely upon conventional consumer goods-oriented marketing approaches. However such methods are not always effective. Several major anti-drug initiatives targeted at school-age children were launched in Boston during the mid-1980s with top-caliber advertising concerns producing brief clear and informative advertisements. Market surveys conducted in 1987 however revealed that although many people remembered the campaigns they failed to bring about the desired change in behavior. Conventional marketing methods are generally designed for situations in which benefits to the consumer from choosing the advertised product or service clearly outweigh the costs. The benefits are not always so concrete in social marketing. The authors developed a framework to help social marketers determine which causes can be promoted through conventional marketing methods which need an alternative approach and what the options are in the latter case. Obstacles to marketing social change analyzing the costs and benefits of change and determining appropriate strategies are discussed.

Time on the Market: The Impact of Residential Brokerage.

Abstract: This paper examines the impact of brokers, brokerage firms and marketing strategy on time on the market (TOM) in the residential housing market. Using a duration model methodology, the study finds duration dependence to be positive, suggesting that the probability of sale increases with TOM. Pricing-related marketing strategies are found to strongly influence TOM, but individual agent and firm characteristics are not statistically significant. These results are consistent with an efficient market within a multiple listing service—no group of agents or firms appears to possess special advantages enabling them to sell homes more quickly than their rivals.