The essence of a brand is that it delivers on its promises. However, consumers’ trust in brands (CTB) has declined around the world in recent decades. As a result, CTB has become a major concern for managers. The authors examine whether CTB is influenced by marketing-mix activities (i.e., advertising, new product introduction, distribution, price, and price promotion) implemented by brands.
We study differences in the effects of prices, non-price promotions, and brand line length on brand shares at different retail formats. Our conceptual framework rests on the presence of trip level fixed and category level variable utility components and shows how the trade-off between these components results in (i) different formats visited on different types of shopping trips; and (ii) differential marginal sensitivities of brand shares to changes in marketing mix variables across trip types.
A consumer's decision to engage in search depends on the beliefs the consumer has about an unknown product characteristic such as price. In this paper, we elicit the distribution of price beliefs and explicitly study their role in a consumer's decision to search.
Channels have traditionally been viewed as intermediaries that facilitate the transfer of products from manufacturers to consumers. Innovations in digital technologies help firms to integrate the customer experience across channels and devices. This new phenomenon is referred to as “omnichannel marketing.”
This article’s objective is to inspire and provide guidance on the development of marketing knowledge based on the theories-in-use (TIU) approach.
Marketing academics are keenly aware of the seismic shifts in today's marketing environment caused by digital (dis)intermediation. In this article, we discuss four types of digital (dis)intermediation, and how they affect branding activities of incumbents and new firms.
Consumers’ brand associations are essential to the development of effective marketing strategies. Understanding consumers’ brand associations enables firms to determine their brand’s positioning and informs new product development and marketing mix design. A rich and abundant source for consumers’ brand associations is user-generated-content (UGC).
The pricing of prescription drugs comes under persistent public scrutiny, yet limited empirical evidence details the determinants of these price levels. This study provides a price function specification for newly launched drugs, with marginal cost and pricing power components.
I investigate the exit outcomes of start-ups backed by government VCs (GVCs) and private VCs (PVCs), using a sample of 8,106 start-ups in China funded by VCs between 1991 and 2013 and exit information updated in 2018. I find that start-ups backed by GVCs are less likely to exit through domestic Initial Public Offerings (IPOs), oversea IPOs, and M&As. GVC backed start-ups are also less likely to list on the intermediate public market before companies go to IPOs.
Some contemporary new product introductions feature attribute auto-dynamics — the property that enables a product to adapt its attributes automatically in response to changing customer, product-system, or environmental (CSE) conditions. In addition to explicating auto-dynamics, the authors propose a typology of attribute auto-dynamics, based on close examinations of 273 U.S. utility patents published between 2001 and 2017. Attribute auto-dynamics offers an efficient mapping design, applicable to changing conditions and product attribute states, that indicates a four-part (contingent, distinctive, associative, and generative) typology.
In today’s world of interconnected and "always-on" information, companies that succeed are those that compete by leveraging the advantage of strategic control points. A strategic control point is a part of a market where, if controlled by one party, it can be used to leverage power elsewhere. This can occur throughout the supply chain, in a related business, or even in an unrelated market.
We examine a brick-and-mortar retailer’s choice of which product to include in a promotional display (e.g., an “endcap” display). The display provides a visibility advantage to both the featured product and its category, but it also has consequences for customer traffic and substitution.