bluuebunny/crossref_metadata_2025 huggingface dataset:
Alliances in Industrial Purchasing: The Determinants of Joint Action in Buyer-Supplier Relationships
Authors: Heide Jan B. , John George
Published: December 2018

Recent trends in industrial markets indicate that buyers and sellers are increasingly supplanting conventional “arm's length” arrangements with “alliances” involving closer ties. The authors develop a theoretical model of industrial buyer-supplier ties that presents joint action as a key aspect of closeness. Whereas conventional ties emphasize a clearly defined division of labor, these newer relationships are distinguished by more tightly integrated roles based on undertaking activities jointly. Drawing primarily on a normative theory of transaction costs, the authors identify the conditions under which these relationships are useful. The utility of the relationships derives from an ability to safeguard relationship-specific investments and to facilitate adaptation to uncertainty. Using data from a sample of industrial firms and their suppliers, the authors test these predictions. The results show good support for the model. Consequences for research and practice in marketing are drawn.
The Evaluative Consequences of Experiencing Unexpected Favorable Events
Authors: Howard Daniel J. , Barry Thomas E.
Published: December 2018

The authors examine the effects of a sweepstakes on evaluation of a prize. Participants were entered in a sweepstakes with a high or low probability of winning a prize (a product), which they subsequently won or lost, and then reviewed an ad for the same product that did or did not credibly support claims of product quality. When participants believed they were the winners of a prize they did not expect to win, their evaluations of that prize were based more on their favorable reactions to the sweepstakes per se than on a careful appraisal of the available information on the product. These findings seem useful in explaining why sweepstakes operators often are able to convince consumers of the value of a “prize” when its claims of quality lack credibility. Theoretical implications of alternative model predictions and results are discussed.
On the Use of Confirmatory Measurement Models in the Analysis of Multiple-Informant Reports
Authors: Kumar Ajith , Dillon William R.
Published: December 2018

In applied research it is important to understand the implications of the factor analytic model used to represent the covariance structure underlying a set of observed measures. Here the focus is on the use of confirmatory measurement models in the analysis of multiple-informant reports. By effecting a variance decomposition that partitions the variation in measurements into constituent components, the authors investigate the implications of first-order and second-order confirmatory measurement models as they apply to key informant data. Among other things, the authors demonstrate that depending on the particular factor analytic specification used, trait validity and measure specificity take on different meanings and consequently affect the evaluation of the model being considered.
Effects of Retraction of Price Promotions on Brand Choice Behavior for Variety-Seeking and Last-Purchase-Loyal Consumers
Authors: Kahn Barbara E. , Louie Therese A.
Published: December 2018

In the context of three laboratory experiments ranging from a computer simulation of purchases to actual product use by subjects, the authors investigate how in-store price promotions affect market share after the promotions have been retracted. They find that the effects of promotion are contingent on both the choice patterns of subjects—whether or not subjects switch among brands—and the ubiquity of promotions in a product category. If only one brand is being promoted and subjects are generally loyal to the last brand purchased, brand choice probability declines from prepromotion levels once the promotion is withdrawn. However, if subjects tend to switch among brands in the absence of promotions, or if several brands are being promoted, this decline is mitigated and/or does not occur.
Hypothesis Testing with Scanner Data: The Advantage of Bayesian Methods
Authors: Allenby Greg M.
Published: December 2018

The author presents a Bayesian method of testing possibly non-nested restrictions in a multivariate linear model and, using store-level scanner data, compares it with classical methods. The Bayesian tests are shown to be either equal or superior to classical tests in terms of objectivity, ease of use, and ease of interpretation. Classical tests lack a natural metric for comparing non-nested models and often employ super models in which the entertained hypotheses are special cases (i.e., nested). Nested classical tests are almost always significant when used with scanner data, making their interpretation problematic. In contrast, large samples cause Bayesian methods to become less dependent on subjective aspects of the prior distribution and therefore more objective.
The Use of Pledges to Build and Sustain Commitment in Distribution Channels
Authors: Anderson Erin , Weitz Barton
Published: December 2018

Commitment in channel relationships is modeled as a function of (1) each party's perception of the other party's commitment, (2) self-reported and perceived pledges (idiosyncratic investments and contractual terms) made by each party, and (3) other factors such as communication level, reputation, and relationship history. A dyadic model represented by a simultaneous equation system is estimated with data from 378 pairs of manufacturers and industrial distributors. The results indicate that one type of pledge, idiosyncratic investments, has a strong effect on the commitment of both parties to the relationship. In addition, each party's commitment is affected by the perceived commitment of the other party. Finally, idiosyncratic investments signal commitment, affecting each party's perceptions of the other party's commitment.
An Integrative Look at the Use of Additive and Multiplicative Covariance Structure Models in the Analysis of MTMM Data
Authors: Kumar Ajith , Dillon William R.
Published: December 2018

First-order confirmatory factor analytic models have had widespread use in the analysis of multitrait-multimethod (MTMM) data. In contrast to the usual first-order confirmatory factor analytic model for the analysis of MTMM data, other covariance structure models have recently been proposed and advocated. Two such models are Wothke's covariance component analysis model and Browne's direct product model. The authors provide a conceptual and analytic discussion of those alternative procedures and compare them with the conventional first-order confirmatory factor analytic model. They consider the relationship between method factors and trait factors assumed under each model specification. General remarks about the nature of method factors and the likely reasons for lack of fit and ill-defined solutions frequently encountered with use of first-order factor models are presented. The authors also attempt to integrate the various approaches to modeling MTMM data and in so doing provide some perspective on selection of a particular covariance structure model for use in applied research.
Impact of Resource Allocation Rules on Marketing Investment-Level Decisions and Profitability
Authors: Mantrala Murali K. , Sinha Prabhakant , Zoltners Andris A.
Published: December 2018

In many organizations, marketing investment-level decisions precede the associated resource allocation decisions and are based on market-level sales response data, often with no attention to the impact of rules used to allocate resources to submarkets. Such top-down budgeting is commonly based on a perception that aggregate sales and profitability are affected much more by the level than by the allocation of the investment. The authors analyze the effects of different resource allocation rules assuming alternative specifications of submarket sales response functions and show that allocation decisions significantly influence aggregate sales response functions, investment-level decisions based on these functions, and realized profit. The authors also show aggregate sales and profit are usually more sensitive to improvements in allocation rules than to increases in investment levels and conclude that resource allocation decisions warrant more attention in marketing budgeting.
A Communications Response Model for a Mature Industrial Product: Application and Implications
Authors: Gopalakrishna Srinath , Chatterjee Rabikar
Published: December 2018

The rising cost of an industrial sales call underscores the need for integration of personal selling with other modes of industrial communication, notably advertising, within the overall context of efficient resource deployment. The authors propose an approach to assess the joint impact of advertising and personal selling effort on sales of a mature industrial product and thereby to plan the overall communications budget and its split between advertising and personal selling. Through an empirical application, they demonstrate the estimation of a communications response model and its use as an input to the planning process. In the illustration, the model's recommendation calls for an increase in the total communications budget over the current level, as well as some reallocation among its elements, based on a multiperiod profit-maximizing objective. Finally, to obtain a more general understanding of communications budgeting under different market situations, the authors employ the model to investigate analytically the impact of key market factors on the optimal level and allocation of communications effort.
Brand Choice, Purchase Incidence, and Segmentation: An Integrated Modeling Approach
Authors: Bucklin Randolph E. , Gupta Sunil
Published: December 2018

The authors develop an approach to market segmentation based on consumer response to marketing variables in both brand choice and category purchase incidence. The approach reveals segmentation as well as the nature of choice and incidence response for each segment. Brand choice and purchase incidence decisions are modeled at the segment level with the disaggregate multinomial logit and nested logit models; segment sizes are estimated simultaneously with the choice and incidence probabilities. Households are assigned to segments by using their posterior probabilities of segment membership based on their purchase histories. The procedure thereby permits an analysis of the demographic, purchase behavior, and brand preference characteristics of each response segment. The authors illustrate their approach with scanner panel data on the liquid laundry detergent category and find segmentation in price and promotion sensitivity for both brand choice and category purchase incidence. The results suggest that many households that switch brands on the basis of price and promotion do not also accelerate their category purchases and that households that accelerate purchases do not necessarily switch brands.
Choice in Context: Tradeoff Contrast and Extremeness Aversion
Authors: Simonson Itamar , Tversky Amos
Published: December 2018

Consumer choice is often influenced by the context, defined by the set of alternatives under consideration. Two hypotheses about the effect of context on choice are proposed. The first hypothesis, tradeoff contrast, states that the tendency to prefer an alternative is enhanced or hindered depending on whether the tradeoffs within the set under consideration are favorable or unfavorable to that option. The second hypothesis, extremeness aversion, states that the attractiveness of an option is enhanced if it is an intermediate option in the choice set and is diminished if it is an extreme option. These hypotheses can explain previous findings (e.g., attraction and compromise effects) and predict some new effects, demonstrated in a series of studies with consumer products as choice alternatives. Theoretical and practical implications of the findings are discussed.
Order-of-Entry Effects on Consumer Memory and Judgment: An Information Integration Perspective
Authors: Kardes Frank R. , Kalyanaram Gurumurthy
Published: December 2018

Several studies have shown that pioneering brands are preferred to later entrants. The “pioneering advantage” is remarkably robust and has been observed across a wide variety of products and contexts. Two longitudinal experiments were conducted to investigate judgmental mechanisms that contribute to this advantage. In experiment 1, the amount of information presented was held constant across brands. Nevertheless, subjects learned more about the pioneer than about later entrants and consequently judgments of the pioneer were more extreme and were held with greater confidence. Furthermore, the pioneering advantage increased over time, especially when subjects were exposed repeatedly to the features of the pioneer. Experiment 2 demonstrated that order-of-entry effects on consumer memory and judgment are eliminated when information about a set of brands is presented simultaneously as opposed to sequentially. Furthermore, the results revealed that sequential information processing benefits the pioneer even when product information is processed incidentally. Implications of the results for understanding and managing order-of-entry effects are discussed.
Price Elasticity Dynamics over the Adoption Life Cycle
Authors: Parker Philip M.
Published: December 2018

Little empirical research has been conducted to test the dynamic behavior of elasticities over the product life cycle. Competing specifications of price elasticity dynamics are examined to test the prevailing hypothesis that elasticities increase over the adoption life cycle or diffusion process. Though not supporting the hypothesis, the empirical results suggest that certain factors, including the degree to which a product is a necessity and faces competitive substitutes, affect elasticity dynamics.
Using Segmentation to Improve Sales Forecasts Based on Purchase Intent: Which “Intenders” Actually Buy?
Authors: Morwitz Vicki G. , Schmittlein David
Published: December 2018

The authors investigate whether the use of segmentation can improve the accuracy of sales forecasts based on stated purchase intent. The common current practice is to prepare a sales forecast by using purchase intent and observed historical patterns in purchase rates given level of intent. The authors show that the accuracy of sales forecasts based on purchase intent can be improved by first using certain kinds of segmentation methods to segment the panel members. The main empirical finding is that more accurate sales forecasts appear to be obtained by applying statistical segmentation methods that distinguish between dependent and independent variables (e.g., CART, discriminant analysis) than by applying simpler direct clustering approaches (e.g., a priori segmentation or K-means clustering). The results further reveal that meaningful segments are present and identifiable that vary in their subsequent purchase rates for a given level of intent. This identification has important implications for areas such as target marketing, as it indicates which customer segments will actually fulfill their intentions. One key substantive finding is that households in a (demographic/product-usage-based) segment having an a priori high propensity to purchase are also more likely to fulfill a positive intention to purchase.
Capturing Individual Differences in Paired Comparisons: An Extended BTL Model Incorporating Descriptor Variables
Authors: Dillon William R. , Kumar Ajith , de Borrero Melinda Smith
Published: December 2018

The method of paired comparisons addresses the problem of determining the scale values of a set of stimuli on a preference continuum that is not directly observable. The conventional approach in analyzing paired comparisons is to view all individuals as homogeneous and estimate a single vector of scale values for the stimuli. The authors describe an extended BTL model, a simultaneous segmentation and estimation procedure for paired comparisons that can also accommodate descriptor variables, if available. The procedure extends methods for analyzing paired comparisons in two important ways. First, recognizing that individuals may be heterogeneous in their preference structure, the model attempts to group individuals into segments, where individuals belonging to the same segment can be characterized adequately by a segment-specific set of scale values. Second, the model allows descriptor variables to be incorporated into the analysis. Though incorporating descriptor variables in the analysis of paired comparisons entails some additional estimation issues, the ability to calibrate stimulus scale values for different market segments and to understand the potential reasons why the relative locations of the stimuli as perceived by persons making the judgments vary according to the latent segment to which an individual belongs appears to be an extremely useful feature of the proposed method.
Organizational Consequences, Marketing Ethics, and Salesforce Supervision
Authors: Hunt Shelby D. , Vasquez-Parraga Arturo Z.
Published: December 2018

Using an experimental design, the authors explore organizational consequences and ethical issues in salesforce supervision. The findings suggest that managers’ decisions to either discipline or reward the behavior of salespeople are guided primarily by the inherent rightness or wrongness of the salespeople's behaviors (deontological considerations) and only secondarily by the consequences of the behaviors on the organization (teleological factors). The results have implications for salesforce supervision, the P-utility maximization thesis, Etzioni's moderate deontology, and the Hunt-Vitell theory of ethics.
The Effectiveness of Alternative Preference Elicitation Procedures in Predicting Choice
Authors: Huber Joel , Wittink Dick R. , Fiedler John A. , Miller Richard
Published: December 2018

In a large-scale national study, the authors evaluated the effectiveness of several preference elicitation techniques for predicting choices. The criteria for accuracy included both individual hit rates and a new measure, the mean absolute error predicting aggregate share using a logit choice simulator. The central finding is that hybrid models combining information from different preference elicitation tasks consistently outperform models based on one task. For example, ACA, a method that combines a self-explicated prior with relative preference measures on pairs, predicts choices better than full-profile conjoint when warmup tasks are lacking. However, there is no difference between the models if ACA's prior is combined with the full-profile information. Further, the most accurate method combines data from all three sources, suggesting that each preference elicitation technique taps a different aspect of the choice process in the validation task. Finally, full-profile conjoint is found to be significantly more accurate after rather than before, other preference elicitation tasks, implying that its performance can be improved with warmup exercises.
Negotiation Strategies and the Nature of Channel Relationships
Authors: Ganesan Shankar
Published: December 2018

In recent years, retailers have placed greater emphasis on developing long-term relationships to obtain sustainable benefits on issues such as product quality, price, and markdown allowances. The author examines the impact of situational factors such as the time orientation of a relationship and the importance of the issues to be resolved on the use of various negotiation strategies (problem solving, compromise, and aggressive) in channel relationships. He also investigates the impact of different strategies on channel member outcomes and satisfaction. The data used to test the model were obtained in a mail survey of 124 retail buyers in six regional department store chains. The study results indicate that when retailers are long-term oriented, problem-solving and passive aggressive strategies are used for resolving conflicts on major issues. The use of problem-solving strategy to resolve major conflicts resulted in higher outcomes and greater satisfaction than either compromise or aggressive strategies. The findings also provide insights on the use of various negotiation strategies by retailers to resolve conflicts on important and relatively unimportant issues.
Integrating Information from Advertising and Trial: Processes and Effects on Consumer Response to Product Information
Authors: Smith Robert E.
Published: December 2018

Information integration theory and the integrated information response model are used to explore how consumers combine information from advertising and trial. Also investigated is the ability of attitude toward the ad to mediate advertising's effects on brand cognitions and brand attitudes after trial. An experiment is conducted in which three independent variables are manipulated: the information source (ad only, trial only, and ad plus trial), information sequence (ad/trial and trial/ad), and favorability of trial (positive and negative). Results show that (1) advertising can lessen the negative effects of an unfavorable trial experience on brand evaluations, especially when the ad is processed first, (2) when negative trial precedes exposure to advertising, cognitive evaluations of the ad are more negative, (3) the ability of ad attitudes to influence brand cognitions and brand attitudes is significantly reduced after trial, and (4) the ability of brand cognitions to influence brand attitudes is significantly increased after trial. Implications for advertising research and practice are discussed.
The Nature of Organizational Search in High Technology Markets
Authors: Weiss Allen M. , Heide Jan B.
Published: December 2018

Previous research on buyer behavior in high technology markets has focused on specific outcomes (product adoption or rejection) as opposed to buyers’ underlying processes. The authors identify key dimensions of high technology markets and draw on organization theory and information economics to develop hypotheses about their effects on organizational buyers’ search behavior. They also present propositions about how certain aspects of a firm's present buying situation may influence its perceptions of the characteristics of a given market. An empirical test of the propositions in a sample of computer workstation purchases shows good support for the hypothesized relationships.
Nonstationary Conditional Trend Analysis: An Application to Scanner Panel Data
Authors: Lenk Peter J. , Rao Ambar G. , Tibrewala Vikas
Published: December 2018

Planning and evaluating consumer promotions is facilitated by knowledge of the types of consumers who contribute to incremental sales. In particular, interest may focus on identifying the contributions of buyers segmented on the basis of their prior purchase history. When the distribution of the number of purchase occasions in a base period can be described by the negative binomial distribution (NBD), conditional trend analysis (CTA) is a simple and effective approach for identifying the sources of incremental sales during a test (promotional) period. As currently implemented, CTA assumes a stationary marketing environment. The authors propose an extension of CTA that explicitly incorporates varying marketing activities. They also show that the often observed underprediction of purchases in the test period by nonbuyers in the base period is a consequence of the skewness of the NBD and is not necessarily due to model misspecification. An illustration with scanner panel data is provided.
The Role of the Scale Parameter in the Estimation and Comparison of Multinomial Logit Models
Authors: Swait Joffre , Louviere Jordan
Published: December 2018

Multinomial logit (MNL) models are widely used in marketing research to analyze choice data, but it is not generally recognized that the unit of the utility scale in a MNL model is inversely related to the error variance. This means that, for instance, parameters of two identical utility specifications estimated from different data sources with unequal variances will necessarily differ in magnitude, even if the true model parameters that generated the utilities are identical in both sets. Despite a growing number of papers that compare MNL coefficients, no examples of appropriate tests of the joint and separate hypotheses of scale and parameter equality in MNL models exist in the marketing literature. The purpose of this paper is to address the proper procedure for MNL parameter comparisons between different data sets and to propose a simple relative scaling test that can be implemented with standard MNL estimation software. Several examples are given to illustrate the approach.
When Persuasion Goes Undetected: The Case of Comparative Advertising
Authors: Rose Randall L. , Miniard Paul W. , Barone Michael J. , Manning Kenneth C. , Till Brian D.
Published: December 2018

Why does the weight of current empirical evidence indicate little difference in the persuasiveness of comparative and noncomparative advertising? One explanation explored in this research is that the measures commonly used for assessing the persuasive impact of comparative advertising are limited in their ability to capture the unique effects that may arise from this type of advertising. Measures that capture relative impressions of the advertised and comparison brands are found to be far more sensitive in detecting persuasion effects of comparative advertising. Moreover, the appropriateness of different types of relative measures is shown to depend on the correspondence between the encoding frame adopted during ad processing and the measure's response frame.
How Buyers Perceive Savings in a Bundle Price: An Examination of a Bundle's Transaction Value
Authors: Yadav Manjit S. , Monroe Kent B.
Published: December 2018

Although bundling, the selling of two or more products and/or services at a single price, has a history of economic research, marketing-oriented investigations have appeared only recently. This paper examines buyers’ perceptions of overall savings when they evaluate a bundle offer. Such perceptions of overall bundle savings may consist of two separate perceptions of savings, each with a different relative influence: (1) perceived savings on the individual items if purchased separately and (2) perceived additional savings on the bundle. Results of an experiment indicate that additional savings offered directly on the bundle have a greater relative impact on buyers’ perceptions of transaction value than savings offered on the bundle's individual items. The effect of each saving is also influenced by the magnitude of the other saving.
Influencing Consumer Judgments Using Autobiographical Memories: A Self-Referencing Perspective
Authors: Sujan Mita , Bettman James R. , Baumgartner Hans
Published: December 2018

The authors investigate the affective nature of autobiographical memories and the conditions and mechanisms leading to transfer of this affect to ad and brand judgments. They find that when ads encourage the retrieval of autobiographical memories there is a higher level of felt affect and reduced processing of product attributes. Furthermore, this generally positive affect is readily transferred to the ad, thus enhancing ad evaluations. However, the extent of transfer of autobiographical affect to the brand depends on forging a link in the ad between the brand and the personal memory, as Study 1 demonstrates. Study 2 shows that when autobiographical memories are encouraged, brand evaluations are no different given strong versus weak product arguments, further evidence that brand evaluations are not based on an analysis of product claims when such memories are evoked. Study 2 also provides evidence for the dominance of affective inputs into brand judgments when both autobiographical affect and product arguments are relatively accessible from memory.
Equity Estimation and Assessing Market Response
Authors: Wildt Albert R.
Published: December 2018

Equity estimation has been proposed as a possibly superior technique for estimating market response functions in the presence of high predictor-variable collinearity. The relative performance of equity, ridge, and ordinary least squares (OLS) estimators is examined using simulation experiments. In part, findings are consistent with prior research and indicate that, under certain conditions, equity outperforms OLS and ridge on a number of important criteria, and equity yields coefficient estimates that assign more equal explanatory weight to correlated predictor variables than does OLS or ridge. As collinearity increases, this tendency becomes very pronounced, to the point where equity yields estimated standardized coefficients more equal in magnitude irrespective of other conditions, such as true coefficient values and model explanatory power.
Markor: A Measure of Market Orientation
Authors: Kohli Ajay K. , Jaworski Bernard J. , Kumar Ajith
Published: December 2018

In recent years, academic and practitioner interest has focused on market orientation and factors that engender this orientation in organizations. However, much less attention has been devoted to developing a valid measure of market orientation. Here we define market orientation as the organizationwide generation of market intelligence pertaining to current and future needs of customers, dissemination of intelligence horizontally and vertically within the organization, and organization-wide action or responsiveness to market intelligence. The authors describe a procedure to develop a measure of the construct. Key features of the research methodology include several rounds of pretesting, a single-informant assessment, and a multi-informant (both marketing and nonmarketing executives) replication and extension. The multi-informant results indicate that the proposed 20-item market orientation scale (MARKOR) may be best represented by a factor structure that consists of one general market orientation factor, one factor for intelligence generation, one factor for dissemination and responsiveness, one marketing informant factor, and one nonmarketing informant factor. Taking into account the informant factors, the subsequent validation tests are moderately supportive of the market orientation construct. The authors discuss methodological, substantive, and application directions for future research in light of these findings.
Reflections on “Impact of Sales Promotions on When, What, and How Much to Buy”
Authors: Gupta Sunil
Published: December 2018

The author reflects on the research process, the review process, and the past and future research related to his 1988 article, which won the 1993 O'Dell award.
A Two-Stage Sales Forecasting Procedure Using Discounted Least Squares
Authors: Smith Stephen A. , McIntyre Shelby H. , Achabal Dale D.
Published: December 2018

The authors develop a two-stage forecasting methodology for estimating the sales responses to marketing and environmental variables when it is likely that their impacts will change unpredictably over time. The methodology is based on an integrated least squares procedure that uses regression analysis in Stage 1 to estimate the coefficients of the controllable and environmental variables in combination with a Stage 2 discounted least squares smoothing procedure that updates key parameters in response to changing market conditions. The effectiveness of the methodology is demonstrated by applying it to weekly sales data from a major retail chain.
Brands, Brand Management, and the Brand Manager System: A Critical-Historical Evaluation
Authors: Low George S. , Fullerton Ronald A.
Published: December 2018

The authors examine the history of brand management by tracing its development in the context of the marketing environment from 1870 to the present. They develop six theses regarding the evolution of brand management and its implications and substantiate them utilizing a historical approach. They demonstrate that the brand manager system originated well after the leadership of branded products was established, it was adopted following a conventional adoption curve pattern, and it has proven quite adaptable to differing firm and marketing environments over the past several decades.

They then evaluate its likely fate in today's rapidly changing environment.
The Financial Information Content of Perceived Quality
Authors: Aaker David A. , Jacobson Robert
Published: December 2018

The authors investigate whether movement in a firm's stock price, that is, a measure of firm value, is associated with information contained in perceived quality measures. In a model that also allows for the effect of economywide factors and a firm's return on investment, they find a positive relationship between stock return and changes in quality perceptions. These results imply that the quality measure contains information, incremental to that reflected by current-term accounting measures, about future-term business performance. They suggest that managers should convey information to the stock market, such as the brand's quality image, useful in depicting the long-term prospects of the business. By doing so, the stock market will rely less on short-term measures of business performance, and managers will be freer to undertake strategies necessary for ensuring the long-term viability of their firms.
The Importance of the Brand in Brand Extension
Authors: Broniarczyk Susan M. , Alba Joseph W.
Published: December 2018

Recent research has identified two factors that influence consumer perceptions of a brand extension: brand affect and the similarity between the original and extension product categories. However, surprisingly little attention has been paid to other associations specific to the brand itself. The authors perform three experiments to explore the relative importance of these associations. The experiments reveal that brand-specific associations may dominate the effects of brand affect and category similarity, particularly when consumer knowledge of the brands is high. The authors conclude by discussing the implications of these findings for managerial decision making and the process by which consumers evaluate brand extensions.
The Effect of Brand Portfolio Characteristics on Consumer Evaluations of Brand Extensions
Authors: Dacin Peter A. , Smith Daniel C.
Published: December 2018

A growing number of brands are becoming associated with a portfolio of different product categories. Although concerns have been raised that adding products to a brand may weaken it, there is a paucity of research exploring the effects of brand portfolio characteristics on brand strength. Using two laboratory experiments and a survey, the authors examine the effects of several brand portfolio characteristics on consumers’ confidence in and favorability of their evaluations of subsequent brand extensions. The experiment-based findings reveal a positive relationship between the number of products affiliated with a brand and consumers’ confidence in and favorability of their evaluations of extension quality. These results were not replicated in the survey. However, in both methods, the authors found that as portfolio quality variance decreases, a positive relationship between number of products affiliated with a brand and consumers’ confidence in their extension evaluations emerges. Implications of these and other findings for both the theory and practice of brand management are discussed.
Rentals, Sales, and Buybacks: Managing Secondary Distribution Channels
Authors: Purohit Devavrat , Staelin Richard
Published: December 2018

The authors analyze a problem facing a durable product manufacturer who has to manage two “noncompeting” channel systems.ln particular, they focus on the practices of U.S. automakers who distribute new cars through both dealers and rental agencies. In their stylized model, the dealer sells cars to customers and the renter satisfies customers’ short-term needs by renting cars. As a result, in the short run, the rental market does not compete with the dealer's market. However, if the renter eventually sells some of its used cars into the consumer market, then these sales can compete with the dealer's sales of new cars. Using a two-period model, the authors analyze three channel structures that exist in today's auto market. They discuss the implications of their work on the structure of distribution channels in the automobile industry and show how dealer profits and total manufacturer sales depend on the type of channel structure used.
Designs of Discrete Choice Set Experiments for Estimating Both Attribute and Availability Cross Effects
Authors: Lazari Andreas G. , Anderson Donald A.
Published: December 2018

Probabilistic discrete choice experiments are frequently applied in strategic policy, management, and marketing problems to model and predict consumer choice behavior. The authors consider the construction of a class of discrete choice set experiment designs for estimating all availability and attribute cross effects where there are m brands and one attribute for each brand.
Enhancing Memory of Television Commercials through Message Spacing
Authors: Singh Surendra N. , Mishra Sanjay , Bendapudi Neeli , Linville Denise
Published: December 2018

Though advertising repetition is a frequently used marketing strategy, its effects are not well understood. The authors report findings from a laboratory experiment in which they investigated the effects of repeating a television commercial as a function of varying the message spacing or lag (i.e., the number of intervening commercials between two presentations of the target commercial) and the delay in memory measurement. In two different samples—younger and older adults—the results show a lag by measurement delay interaction. In general, results show that in the long measurement delay condition, the recall of message contents was significantly higher with the long lag than with the short lag. However, in the short measurement delay condition, recall was significantly higher with the short lag than with the long lag. The results are explained by a variation of encoding variability theory. The implications of the findings for media planning and television advertising to older adults are discussed.
Finding Choice Alternatives in Memory: Probability Models of Brand Name Recall
Authors: Hutchinson J. Wesley , Raman Kalyan , Mantrala Murali K.
Published: December 2018

Recalling brand names is an important aspect of consumer choice in many situations. The authors develop a general Markov model that relates probabilistic aspects of recall to consumer and marketing mix variables. Then they illustrate how parameters can be estimated from recall data for three special cases of the model: The first is a “baseline” version of the model that can be used to assess the extent to which categories of brands can be automatically included in or excluded from memory search; the second is a zero-order model that can be used to estimate the effects of brand variables and individual usage rates on recall latency; and the third is a first-order model that uses aggregate recall data to assess market structure. Finally, the authors demonstrate how the model can be used in numerical analyses to evaluate awareness-building strategies.
The Effect of Just-in-Time Selling on Organizational Structure: An Empirical Investigation
Authors: Germain Richard , Dröge Cornelia , Daugherty Patricia J.
Published: December 2018

The authors test a model of the relationships among environmental uncertainty, just-in-time (JIT) selling, and dimensions of organizational structure. The results show that uncertainty is antecedent to JIT selling and that JIT selling predicts performance control, specialization, and scheduling decentralization. JIT selling is unrelated to face-to face integration and operations decentralization.
Exchange Interdependence and Interfirm Interaction: Research in a Simulated Channel Setting
Authors: Gundlach Gregory T. , Cadotte Ernest R.
Published: December 2018

The authors employ a simulated market channel to investigate two properties of interdependence—magnitude and relative asymmetry. Increasing magnitudes of joint dependence are associated with more frequent use of noncoercive strategies, less frequent use of coercive strategies, lower residual conflict, and more favorable evaluations of partner performance. These results support the relational exchange paradigm. Findings for relative asymmetry were not anticipated but are informative. First, an increasing power advantage did not result in the predicted greater use of threats and punishments, although demands and normative statements were more prevalent. Second, one side of the dyad decreased its use of rewards and the other increased its use of rewards, promises, and information persuasion. As predicted, an increasing power advantage (lower relative dependence) is associated with less favorable performance evaluations of exchange partners and less residual conflict.
Reflections on “Consumer Preference Formation and Pioneering Advantage”
Authors: Carpenter Gregory S. , Nakamoto Kent
Published: December 2018

The authors reflect on the research reported in their 1989 article that won the O'Dell award, the process of publishing that research, and the subsequent research that has grown out of it.
A Brand's Eye View of Response Segmentation in Consumer Brand Choice Behavior
Authors: Bucklin Randolph E. , Gupta Sunil , Han Sangman
Published: December 2018

The authors develop an approach to reveal segmentation in response to marketing variables at a brand-level perspective. In the proposed procedure, response segmentation is analyzed separately for each brand instead of jointly across all brands. This yields a segmentation picture oriented toward the potential targeting objectives of the brand manager. Using the multinomial logit and probabilistic mixture models, the procedure first calibrates consumer response in the brand choice decision. Individual-level measures of response for a given marketing variable (e.g., price) are then computed, and brand-level segments are obtained by clustering brand-specific response. Using scanner panel data, the approach is applied to price response segmentation for brands that compete in the ground coffee category. The results illustrate a series of implications for brand strategy, particularly the potential for targeting marketing activity to different response segments.
How Well do you Know your Partner? Strategies for Formulating Proxy-Reports and Their Effects on Convergence to Self-Reports
Authors: Menon Geeta , Bickart Barbara , Sudman Seymour , Blair Johnny
Published: December 2018

Surveys in marketing often ask one member of a household what other members think of a new product idea or what their preferences are in terms of existing products and brands. The authors investigate the strategies proxy-reporters use to answer such questions and how close they come to what the target respondents themselves answer. They find that as the extent to which a couple talks to each other or participates in an activity together increases, proxy-reporters tend to use more specific information about the target respondent, and the convergence between self- and proxy-reports tends to increase. Furthermore, as the extent of participation/discussion increases, the strategies used to arrive at self- and proxy-reports become more similar. Implications for improving the quality and cost-effectiveness of survey research are discussed.
Using Survey Data to Predict Adoption and Switching for Services
Authors: Weerahandi Samaradasa , Moitra Soumyo
Published: December 2018

The authors consider the diffusion of a service when customers can switch among competing offerings of the service. Explicit formulas for brand switching and adoption probabilities are obtained in terms of customer characteristics, marketing strategies, and product attributes. The procedure of fitting the model with survey data is illustrated by a telecommunications application. The model is useful in identifying target markets and demand forecasting.
How T.V. Advertising Works: A Meta-Analysis of 389 Real World Split Cable T.V. Advertising Experiments
Authors: Lodish Leonard M. , Abraham Magid , Kalmenson Stuart , Livelsberger Jeanne , Lubetkin Beth , Richardson Bruce , Stevens Mary Ellen
Published: December 2018

The authors analyze results of 389 BehaviorScan® matched household, consumer panel, split cable, real world T.V. advertising weight, and copy tests. Additionally, study sponsors—packaged goods advertisers, T.V. networks, and advertising agencies—filled out questionnaires on 140 of the tests, which could test common beliefs about how T.V. advertising works, to evaluate strategic, media, and copy variables unavailable from the BehaviorScan® results. Although some of the variables did indeed identify T.V. advertising that positively affected sales, many of the variables did not differentiate among the sales effects of different advertising treatments. For example, increasing advertising budgets in relation to competitors does not increase sales in general. However, changing brand, copy, and media strategy in categories with many purchase occasions in which in-store merchandising is low increases the likelihood of T.V. advertising positively affecting sales. The authors’ data do not show a strong relationship between standard recall and persuasion copy test measures and sales effectiveness. The data also suggest different variable formulations for choice and market response models that include advertising.
Using Economic Incentives to Distinguish Perception Bias from Discrimination Ability in Taste Tests
Authors: Lau Kin-Nam , Post Gerald , Kagan Albert
Published: December 2018

Taste test are commonly used to determine if participants can detect a difference between products; however, any test is subject to guessing and a perception bias by the participants. The authors use economic incentives to induce subjects to reveal their perceived tasting abilities and minimize their guessing. The method provides three additional pieces of information: (1) a test of the differences between the products, (2) a measure of the subject's perceived discrimination ability, and (3) a measure of the subject's perception bias with respect to his or her true discrimination ability.
Incorporating Prior Knowledge into the Analysis of Conjoint Studies
Authors: Allenby Greg M. , Arora Neeraj , Ginter James L.
Published: December 2018

The authors use conjoint analysis to provide interval-level estimates of part-worths allowing tradeoffs among attribute levels to be examined. Researchers often possess prior information about the part-worths, such as the order and range restrictions of product attribute levels. It is known, for example, that consumers would rather pay less for a specific product given that all other product attribute levels are unchanged. The authors present a Bayesian approach to incorporate prior ordinal information about these part-worths into the analysis of conjoint studies. Their method results in parameter estimates with greater face validity and predictive performance than estimates that do not utilize prior information or those that use traditional methods such as LINMAP. Unlike existing methods, the authors’ methods apply to both rating and choice-based conjoint studies.
The Effects of Culture and Socioeconomics on the Performance of Global Brand Image Strategies
Authors: Roth Martin S.
Published: December 2018

Developing and managing brand image is an important part of a firm's marketing program. However, little research has been done (1) on linking the use of brand image strategies to product performance or (2) on managing brand images in global markets. The author examines the brand image-performance linkage for consumer goods in two categories marketed internationally. He also develops a conceptual framework that identifies various cultural and socioeconomic environmental characteristics of foreign markets that are hypothesized to affect brand image performance. Results from a 10 country/60 region study indicate that cultural power distance, cultural individualism, and regional socioeconomics affect the performance of functional (problem prevention and solving), social (group membership and symbolic), and sensory (novelty, variety, and sensory gratification) brand image strategies. The author then discusses the implications for managers marketing brands internationally and the directions for further research.