Magazine et Edition

Volume 14 (2022): Edition 1 (May 2022)
Conscious Consumption

Volume 13 (2021): Edition 2 (November 2021)
Brand Activism

Volume 13 (2021): Edition 1 (May 2021)
The Dark Sides of Digital Marketing

Volume 12 (2020): Edition 2 (November 2020)
The Reputation Economy

Volume 12 (2020): Edition 1 (May 2020)
Crowd Innovation: Hype or Help

Volume 11 (2019): Edition 2 (November 2019)
AI and the Machine Age of Marketing

Volume 11 (2019): Edition 1 (May 2019)
The Future of Retailing

Volume 10 (2018): Edition 2 (October 2018)
IoT - Consumers and the Internet of Things

Volume 10 (2018): Edition 1 (May 2018)
Brand Risk Matters

Volume 9 (2017): Edition 2 (November 2017)
The Connected Consumer

Volume 9 (2017): Edition 1 (May 2017)
Digital Transformation

Volume 8 (2016): Edition 2 (November 2016)
Marketing and Data Science

Volume 8 (2016): Edition 1 (May 2016)
Responsible Marketing

Volume 7 (2015): Edition 2 (November 2015)
Marketing Meets Product Design

Volume 7 (2015): Edition 1 (May 2015)
Truly Accountable Marketing

Volume 6 (2014): Edition 2 (November 2014)
Social Brand Engagement

Volume 6 (2014): Edition 1 (May 2014)
Emotions in Marketing

Volume 5 (2013): Edition 2 (November 2013)

Volume 5 (2013): Edition 1 (May 2013)

Volume 4 (2012): Edition 2 (November 2012)

Volume 4 (2012): Edition 1 (May 2012)

Volume 3 (2011): Edition 2 (November 2011)

Volume 3 (2011): Edition 1 (May 2011)

Volume 2 (2010): Edition 2 (November 2010)

Volume 2 (2010): Edition 1 (May 2010)

Volume 1 (2009): Edition 2 (November 2009)

Volume 1 (2009): Edition 1 (May 2009)

Détails du magazine
Format
Magazine
eISSN
2628-166X
Première publication
30 May 2019
Période de publication
2 fois par an
Langues
Anglais

Chercher

Volume 5 (2013): Edition 1 (May 2013)

Détails du magazine
Format
Magazine
eISSN
2628-166X
Première publication
30 May 2019
Période de publication
2 fois par an
Langues
Anglais

Chercher

10 Articles
access type Accès libre

Editorial

Publié en ligne: 16 Jul 2014
Pages: 7 - 7

Résumé

access type Accès libre

Do Referral Programs Increase Profits

Publié en ligne: 16 Jul 2014
Pages: 8 - 11

Résumé

Abstract

Marketers increasingly use word of mouth to promote products or acquire new customers. But is such companystimulated WOM effective? Arecustomers who are referred by other customers really worth the effort? A recent study clearly says “yes”. In a study of almost 10,000 accounts at a German bank, the referred customers turned out to be 25 % more profi table than customers acquired by other means. Over a 33-month period, they generated higher profi t margins, were more loyal and showed a higher customer lifetime value. The difference in lifetime value between referred and non-referred customers was most pronounced among younger people and among retail (as opposed to private banking) customers. The reward of € 25 per acquired customer clearly paid off. Given the average difference in customer lifetime value of € 40, this amount implied a return on investment (ROI) of roughly 60 % over a six-year period. The encouraging results of this study, however, do not imply that “viral-for-hire” works in each and every case. Referral programs would be most beneficial for products and services that customers might not appreciate immediately. Products and services that imply some kind of risk would also benefit to a more than average degree from referrals because prospects are likely to feel more confi dent when a trusted person has positive experiences. Companies should consider carefully which prospects to target with referral programs and how large a referral fee to provide.

keywords

  • Customer Referral Programs
  • Customer Acquisition
  • WOM (Word-of-Mouth)
  • Customer Management
  • Loyalty
  • Customer Value
access type Accès libre

What’s Your Experience With … ? C2C Communication Helps Sell Your Products

Publié en ligne: 16 Jul 2014
Pages: 12 - 17

Résumé

Abstract

Consumers increasingly use the internet for pre-purchase information gathering, and its online brand communities have become a valuable source of information. However, not only consumers benefit from the experience of other users; high-quality online conversation can also help companies. A study of two different online forums for high quality woodworking equipment showed that online brand communities were effective tools for influencing sales, regardless of whether these communities resided on company-owned or independently owned websites. Good consumer comments – timely, relevant and detailed postings – reduced feelings of consumer uncertainty and, in turn, influenced customer purchase behavior in a positive way. The effect of communication quality on uncertainty reduction was stronger for complex products and when the respondents were perceived to be experts. These experts not only provided more valuable information to others but benefitted, in turn, more than novice users from the information provided. It seemed that people with higher expertise asked more specific questions about products and therefore received more specific and helpful replies.Results showed that the possible adverse effect of negative postings seems to be overestimated. Positive information shared by community members had a stronger influence on purchase behavior and was more influential than negative information – at least below a certain threshold. It is therefore advisable for companies to encourage online consumer communication.

keywords

  • C2C (Customer-to-Customer) Communication
  • Online Brand Communities
  • WOM (Word-of-Mouth)
  • Social Media
access type Accès libre

Emotion and Virality: What Makes Online Content Go Viral?

Publié en ligne: 16 Jul 2014
Pages: 18 - 23

Résumé

Abstract

"Companies are relying more and more on online communication to reach consumers. While some viral campaigns are tremendously successful, others remain far below expectations. But why are certain pieces of online content more viral than others? An analysis conducted on the New York Times’ most-emailed list, along with further experimental evidence, showed that positive content is more viral than negative content. However, the relationship between emotion and social transmission is more complex than valence alone. Virality is driven, in part, by activation and arousal. Content that evokes either high-arousal positive emotions (awe) or negative emotions (anger or anxiety) tends to be more viral. Content that evokes low arousal or deactivating emotions (e.g., sadness) tends to be less viral. These results were also true when examining how surprising, interesting, or practically useful content is (all of which are positively linked to virality), as well as external drivers of attention (e.g., how prominently content is featured). Taking the effect of emotions into account helps to design effective viral marketing campaigns. "

Mots clés

  • Viral Marketing
  • Word-of-Mouth
  • Social Transmission
  • Emotions
  • Online Content
access type Accès libre

Demystifying Disruption: On the Hazard of Being Replaced by New Technology

Publié en ligne: 16 Jul 2014
Pages: 24 - 30

Résumé

Abstract

In many industries, new technologies represent a serious threat to established companies. If underestimated, they can endanger their survival. Even if the chances of being disrupted are rather low, companies are well advised to watch out for emerging trends. A large-scale study analyzed the technological evolution of seven markets over several decades and found surprising results, which were not always in line with the most common theories on the topic. The researcher observed that it was not always easy to predict which technology would ultimately prevail because old and new technologies regularly coexisted for some time and evolution was often erratic. New technologies were introduced both by incumbents and newcomers to the market. Chances of success were higher when the new technology was priced lower than the established technology, but price was less important than quality. Technologies with higher introduction prices also succeeded when they were superior. New technologies always introduced new dimensions of importance, which gained importance in competition over time. In many cases it was not the pioneer who ultimately succeeded with the new technology. It seems important to believe and invest in new technology, and to not abandon it too early. Further, companies might consider a “self-cannibalization strategy” during the times of transition from the old to the new technology.

keywords

  • New Technology
  • Innovation
  • Technology Disruption
  • Substitution Competition
  • Obsolescence
  • Market Entry Strategy
access type Accès libre

Line Extension Asymmetry: Higher Quality Line Extensions Help, Lower Quality Extensions Do Only a Little Harm

Publié en ligne: 16 Jul 2014
Pages: 31 - 37

Résumé

Abstract

"Managers often extend brands to different quality levels. Adding lower priced variants is a particularly popular option for fighting the growing number of retailer brands. Such a move may increase sales, but it also risks diluting brand image. This study examines such line extensions by testing middle-quality brands that offer higher or lower quality line extensions. According to the results, the adverse effects of brands’ lower quality versions seem to be overestimated. Higher quality line extensions improved overall brand perception and evaluation far more than lower quality extensions damaged them. This asymmetry prevailed in multiple product classes and for various dimensions of brand evaluation such as brand attitude, brand expertise or brand innovation. In general, consumers seem to prefer broader product lines. Even if lower quality extensions reduced brand prestige, there was hardly any effect in the overall evaluation. The negative quality association was tempered by increased perceived brand innovation and positive variety effects. However, lower quality extensions are not harmless in every case. Managers are well advised to consider all branding options and to analyze possible effects, not only on the brand but also on the individual product. "

Mots clés

  • Brand Management
  • Line Extensions
  • Product Lines
  • Brand Evaluations
access type Accès libre

Gut Liking for the Ordinary: How Product Design Features Help Predict Car Sales

Publié en ligne: 16 Jul 2014
Pages: 38 - 43

Résumé

Abstract

In many markets, design is one of the key factors in determining a product’s success. The present research offers insights into the role of design for the success of cars, and offers procedures to measure the quality of the designs objectively. The authors show that visual design plays a major role in a product’s success in the automobile market. In the study, two visual design aspects were already sufficient to significantly improve traditional sales forecasting models for cars. Visual prototypicality and visual complexity both had a positive impact on sales, and designs that were perceived as both prototypical and complex were the ones that displayed the best results. Most design evaluation used to be based on subjective measures, but the researcher applied a new, objective procedure to measure prototypicality and complexity. While the latter was detected by the disk space needed by the compressed image file, the new approach for measuring prototypicality was even more sophisticated. It relied on the technique of image morphing. Morphing is a technique that allows the construction of a visual synthesis – or average picture – from a number of individual pictures. Once a car morph is developed, one can determine the visual similarity of different car models to the morph in order to obtain its prototypicality. In principle, this procedure can be automated completely, and including a large number of versions is possible. These measures therefore seem suitable for supporting design decision processes in practice.

Mots clés

  • Product Design
  • Processing Fluency
  • Aesthetic Liking
  • Car Sales
  • Visual Prototypicality
  • Visual Complexity
  • Image Morphing
access type Accès libre

Motivating Salespeople to Sell New Products: What Makes Them Try Harder to Spur on Sales?

Publié en ligne: 16 Jul 2014
Pages: 44 - 48

Résumé

Abstract

Product innovation has become increasingly important as a means for ensuring a competitive advantage, growth and financial success in today’s ultracompetitive business environment. To build a competitive advantage, pay off development and start-up costs and to generate cash, it is desirable to be successful from the start. In B2B markets, in particular, the sales force plays a key role in making sales grow quickly and generating cash to fuel further growth. It is therefore in companies’ interest to support their sales force as effectively as possible to enable them to fulfill this key task. According to a study on the sales of two different innovations at a global industrial company, the recipe for high sales performance is fairly straightforward: if salespeople are willing to try harder, their higher levels of effort lead to higher performance. But the simplest and most frequently used attempt to motivate is not the most effective: producing considerable management attention and promotion opportunities for salespeople who meet and exceed established expectations both show limited success. Rather, increased sales are facilitated by an approach that builds on the principle of intrinsic motivation. If management puts emphasis on increasing the inherent attractiveness of selling the new product, as well as on increasing a salesperson’s belief in his or her ability to sell the product, the positive impact on sales is stronger. Therefore, managers should apply normative incentives judiciously. For better new product performance, it seems more advisable to treat salespeople as the first “customers” and reinforce a positive attitude towards the task in early selling attempts.

Mots clés

  • Sales Force
  • B2B Marketing
  • New Products
  • Sales Management
  • Motivation
  • Managerial Influence
access type Accès libre

Buy One, Get One Free: How Framing Sales Promotions Affects the Whole Shopping Basket

Publié en ligne: 16 Jul 2014
Pages: 49 - 52

Résumé

Abstract

According to this study, sales promotions not only affect the sales of promoted items, but also of unpromoted brands and, therefore, the whole shopping basket. The authors demonstrated, in a series of experiments, that the framing of promotions matters. Specific promotions motivate consumers to add more items to their baskets if they are well aligned with the shoppers´ dominant shopping orientation as well as different types of brands. Well-known brands, which represent safe choices, worked well with a savings orientation and with coupons framed as “Save $x” and “Buy one, get one free”. Less familiar brands, which represent a need for variety, were consistent with a promotion focus and with coupons framed as “Get $x off”. Well-known brands were also more compatible with immediately expiring coupons, whereas less familiar brands were compatible with coupons that have longer time horizons. For retailers, it seems advisable to have a closer look at consumer shopping orientations. Among the design variables for promotions, the framing of the savings message and the expiration date restriction are important variables. Depending on the individual shopping orientation, the right cues positively influence whole shopping baskets and hence sales. Further, consistency is beneficial between the positioning strategies used to differentiate themselves from other retailers (e.g., everyday low-price strategies as opposed to value oriented positions) and their price promotional strategies.

Mots clés

  • Shopping Behavior
  • Retail Promotions
  • Shopper Marketing
  • Couponing
access type Accès libre

How Sales Promotions Change Over Time

Publié en ligne: 16 Jul 2014
Pages: 53 - 57

Résumé

Abstract

In our new section, “MIR Forum”, we build a bridge between our research articles and marketing practice. Managers from successful companies discuss the relevance of the research findings and report on their own activities in specific branches of marketing.

Keywords

  • Sales Promotions
  • Retailing
  • Ferrero
  • Stop and Shop
10 Articles
access type Accès libre

Editorial

Publié en ligne: 16 Jul 2014
Pages: 7 - 7

Résumé

access type Accès libre

Do Referral Programs Increase Profits

Publié en ligne: 16 Jul 2014
Pages: 8 - 11

Résumé

Abstract

Marketers increasingly use word of mouth to promote products or acquire new customers. But is such companystimulated WOM effective? Arecustomers who are referred by other customers really worth the effort? A recent study clearly says “yes”. In a study of almost 10,000 accounts at a German bank, the referred customers turned out to be 25 % more profi table than customers acquired by other means. Over a 33-month period, they generated higher profi t margins, were more loyal and showed a higher customer lifetime value. The difference in lifetime value between referred and non-referred customers was most pronounced among younger people and among retail (as opposed to private banking) customers. The reward of € 25 per acquired customer clearly paid off. Given the average difference in customer lifetime value of € 40, this amount implied a return on investment (ROI) of roughly 60 % over a six-year period. The encouraging results of this study, however, do not imply that “viral-for-hire” works in each and every case. Referral programs would be most beneficial for products and services that customers might not appreciate immediately. Products and services that imply some kind of risk would also benefit to a more than average degree from referrals because prospects are likely to feel more confi dent when a trusted person has positive experiences. Companies should consider carefully which prospects to target with referral programs and how large a referral fee to provide.

keywords

  • Customer Referral Programs
  • Customer Acquisition
  • WOM (Word-of-Mouth)
  • Customer Management
  • Loyalty
  • Customer Value
access type Accès libre

What’s Your Experience With … ? C2C Communication Helps Sell Your Products

Publié en ligne: 16 Jul 2014
Pages: 12 - 17

Résumé

Abstract

Consumers increasingly use the internet for pre-purchase information gathering, and its online brand communities have become a valuable source of information. However, not only consumers benefit from the experience of other users; high-quality online conversation can also help companies. A study of two different online forums for high quality woodworking equipment showed that online brand communities were effective tools for influencing sales, regardless of whether these communities resided on company-owned or independently owned websites. Good consumer comments – timely, relevant and detailed postings – reduced feelings of consumer uncertainty and, in turn, influenced customer purchase behavior in a positive way. The effect of communication quality on uncertainty reduction was stronger for complex products and when the respondents were perceived to be experts. These experts not only provided more valuable information to others but benefitted, in turn, more than novice users from the information provided. It seemed that people with higher expertise asked more specific questions about products and therefore received more specific and helpful replies.Results showed that the possible adverse effect of negative postings seems to be overestimated. Positive information shared by community members had a stronger influence on purchase behavior and was more influential than negative information – at least below a certain threshold. It is therefore advisable for companies to encourage online consumer communication.

keywords

  • C2C (Customer-to-Customer) Communication
  • Online Brand Communities
  • WOM (Word-of-Mouth)
  • Social Media
access type Accès libre

Emotion and Virality: What Makes Online Content Go Viral?

Publié en ligne: 16 Jul 2014
Pages: 18 - 23

Résumé

Abstract

"Companies are relying more and more on online communication to reach consumers. While some viral campaigns are tremendously successful, others remain far below expectations. But why are certain pieces of online content more viral than others? An analysis conducted on the New York Times’ most-emailed list, along with further experimental evidence, showed that positive content is more viral than negative content. However, the relationship between emotion and social transmission is more complex than valence alone. Virality is driven, in part, by activation and arousal. Content that evokes either high-arousal positive emotions (awe) or negative emotions (anger or anxiety) tends to be more viral. Content that evokes low arousal or deactivating emotions (e.g., sadness) tends to be less viral. These results were also true when examining how surprising, interesting, or practically useful content is (all of which are positively linked to virality), as well as external drivers of attention (e.g., how prominently content is featured). Taking the effect of emotions into account helps to design effective viral marketing campaigns. "

Mots clés

  • Viral Marketing
  • Word-of-Mouth
  • Social Transmission
  • Emotions
  • Online Content
access type Accès libre

Demystifying Disruption: On the Hazard of Being Replaced by New Technology

Publié en ligne: 16 Jul 2014
Pages: 24 - 30

Résumé

Abstract

In many industries, new technologies represent a serious threat to established companies. If underestimated, they can endanger their survival. Even if the chances of being disrupted are rather low, companies are well advised to watch out for emerging trends. A large-scale study analyzed the technological evolution of seven markets over several decades and found surprising results, which were not always in line with the most common theories on the topic. The researcher observed that it was not always easy to predict which technology would ultimately prevail because old and new technologies regularly coexisted for some time and evolution was often erratic. New technologies were introduced both by incumbents and newcomers to the market. Chances of success were higher when the new technology was priced lower than the established technology, but price was less important than quality. Technologies with higher introduction prices also succeeded when they were superior. New technologies always introduced new dimensions of importance, which gained importance in competition over time. In many cases it was not the pioneer who ultimately succeeded with the new technology. It seems important to believe and invest in new technology, and to not abandon it too early. Further, companies might consider a “self-cannibalization strategy” during the times of transition from the old to the new technology.

keywords

  • New Technology
  • Innovation
  • Technology Disruption
  • Substitution Competition
  • Obsolescence
  • Market Entry Strategy
access type Accès libre

Line Extension Asymmetry: Higher Quality Line Extensions Help, Lower Quality Extensions Do Only a Little Harm

Publié en ligne: 16 Jul 2014
Pages: 31 - 37

Résumé

Abstract

"Managers often extend brands to different quality levels. Adding lower priced variants is a particularly popular option for fighting the growing number of retailer brands. Such a move may increase sales, but it also risks diluting brand image. This study examines such line extensions by testing middle-quality brands that offer higher or lower quality line extensions. According to the results, the adverse effects of brands’ lower quality versions seem to be overestimated. Higher quality line extensions improved overall brand perception and evaluation far more than lower quality extensions damaged them. This asymmetry prevailed in multiple product classes and for various dimensions of brand evaluation such as brand attitude, brand expertise or brand innovation. In general, consumers seem to prefer broader product lines. Even if lower quality extensions reduced brand prestige, there was hardly any effect in the overall evaluation. The negative quality association was tempered by increased perceived brand innovation and positive variety effects. However, lower quality extensions are not harmless in every case. Managers are well advised to consider all branding options and to analyze possible effects, not only on the brand but also on the individual product. "

Mots clés

  • Brand Management
  • Line Extensions
  • Product Lines
  • Brand Evaluations
access type Accès libre

Gut Liking for the Ordinary: How Product Design Features Help Predict Car Sales

Publié en ligne: 16 Jul 2014
Pages: 38 - 43

Résumé

Abstract

In many markets, design is one of the key factors in determining a product’s success. The present research offers insights into the role of design for the success of cars, and offers procedures to measure the quality of the designs objectively. The authors show that visual design plays a major role in a product’s success in the automobile market. In the study, two visual design aspects were already sufficient to significantly improve traditional sales forecasting models for cars. Visual prototypicality and visual complexity both had a positive impact on sales, and designs that were perceived as both prototypical and complex were the ones that displayed the best results. Most design evaluation used to be based on subjective measures, but the researcher applied a new, objective procedure to measure prototypicality and complexity. While the latter was detected by the disk space needed by the compressed image file, the new approach for measuring prototypicality was even more sophisticated. It relied on the technique of image morphing. Morphing is a technique that allows the construction of a visual synthesis – or average picture – from a number of individual pictures. Once a car morph is developed, one can determine the visual similarity of different car models to the morph in order to obtain its prototypicality. In principle, this procedure can be automated completely, and including a large number of versions is possible. These measures therefore seem suitable for supporting design decision processes in practice.

Mots clés

  • Product Design
  • Processing Fluency
  • Aesthetic Liking
  • Car Sales
  • Visual Prototypicality
  • Visual Complexity
  • Image Morphing
access type Accès libre

Motivating Salespeople to Sell New Products: What Makes Them Try Harder to Spur on Sales?

Publié en ligne: 16 Jul 2014
Pages: 44 - 48

Résumé

Abstract

Product innovation has become increasingly important as a means for ensuring a competitive advantage, growth and financial success in today’s ultracompetitive business environment. To build a competitive advantage, pay off development and start-up costs and to generate cash, it is desirable to be successful from the start. In B2B markets, in particular, the sales force plays a key role in making sales grow quickly and generating cash to fuel further growth. It is therefore in companies’ interest to support their sales force as effectively as possible to enable them to fulfill this key task. According to a study on the sales of two different innovations at a global industrial company, the recipe for high sales performance is fairly straightforward: if salespeople are willing to try harder, their higher levels of effort lead to higher performance. But the simplest and most frequently used attempt to motivate is not the most effective: producing considerable management attention and promotion opportunities for salespeople who meet and exceed established expectations both show limited success. Rather, increased sales are facilitated by an approach that builds on the principle of intrinsic motivation. If management puts emphasis on increasing the inherent attractiveness of selling the new product, as well as on increasing a salesperson’s belief in his or her ability to sell the product, the positive impact on sales is stronger. Therefore, managers should apply normative incentives judiciously. For better new product performance, it seems more advisable to treat salespeople as the first “customers” and reinforce a positive attitude towards the task in early selling attempts.

Mots clés

  • Sales Force
  • B2B Marketing
  • New Products
  • Sales Management
  • Motivation
  • Managerial Influence
access type Accès libre

Buy One, Get One Free: How Framing Sales Promotions Affects the Whole Shopping Basket

Publié en ligne: 16 Jul 2014
Pages: 49 - 52

Résumé

Abstract

According to this study, sales promotions not only affect the sales of promoted items, but also of unpromoted brands and, therefore, the whole shopping basket. The authors demonstrated, in a series of experiments, that the framing of promotions matters. Specific promotions motivate consumers to add more items to their baskets if they are well aligned with the shoppers´ dominant shopping orientation as well as different types of brands. Well-known brands, which represent safe choices, worked well with a savings orientation and with coupons framed as “Save $x” and “Buy one, get one free”. Less familiar brands, which represent a need for variety, were consistent with a promotion focus and with coupons framed as “Get $x off”. Well-known brands were also more compatible with immediately expiring coupons, whereas less familiar brands were compatible with coupons that have longer time horizons. For retailers, it seems advisable to have a closer look at consumer shopping orientations. Among the design variables for promotions, the framing of the savings message and the expiration date restriction are important variables. Depending on the individual shopping orientation, the right cues positively influence whole shopping baskets and hence sales. Further, consistency is beneficial between the positioning strategies used to differentiate themselves from other retailers (e.g., everyday low-price strategies as opposed to value oriented positions) and their price promotional strategies.

Mots clés

  • Shopping Behavior
  • Retail Promotions
  • Shopper Marketing
  • Couponing
access type Accès libre

How Sales Promotions Change Over Time

Publié en ligne: 16 Jul 2014
Pages: 53 - 57

Résumé

Abstract

In our new section, “MIR Forum”, we build a bridge between our research articles and marketing practice. Managers from successful companies discuss the relevance of the research findings and report on their own activities in specific branches of marketing.

Keywords

  • Sales Promotions
  • Retailing
  • Ferrero
  • Stop and Shop

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