Conference Sessions - Jesse H. Jones Graduate School of ...

More documents

Recommendations

Info

TA13 MARKETING SCIENCE CONFERENCE – 2011 3 - Factors Enhancing a Brand’s Competitive Clout: A Two-step Empirical Analysis Juan Carlos Gázquez-Abad, Asistant Professor of Marketing, University of Almería, Department of Management & Business Adm., Ctra. Sacramento s/n. Cañada San Urbano, Almería, 04120, Spain, jcgazque@ual.es, Rubén Huertas-Garcìa, Francisco J. Martínez-Lopez, Agustí Casas-Romeo The market power (or ‘competitive clout’) of a brand is an increasingly important component of modern marketing strategies. However, the factors that enhance a brand’s competitive clout (BCC) are poorly understood. This study therefore suggests an integrated model of BCC and three factors that are proposed to play a role in its formation: (i) consumer price sensitivity; (ii) brand market share; and (iii) consumer brand preferences. These variables are examined both individually and simultaneously to demonstrate the direct effect of each on BCC and how the interrelationships among them contribute to BCC. In doing so, a two-step empirical analysis is conducted. First, a multi-nomial logit model provides an own- and crossprice response matrix for a chosen set of competitive brands. Secondly, BCC is regressed against the variables of market share, intrinsic preferences, and price sensitivity using an interaction effects regression model. The results of the analysis show that market share is not the only way to increase BCC; in particular, consumer preferences are shown to play a key role in developing a strong brand. 4 - The Impact of Marketing Capability on Customer Responses: A Customer-based Brand Equity Perspective Xiaoying Zheng, PhD Student, Guanghua School of Management, Peking University, Zhong Guan Xin Yuan No.4 Building, Beijing, 100871, China, zhengxiaoyingpku@gmail.com, Yi Xie, Siqing Peng A large number of studies have shown the significant role of marketing capability in attaining corporate competitive advantage. However, we know few about how marketing capability influences customer behaviors. Drawing upon customer-based brand equity theory, this study proposes a model regarding brand equity, which is conceptualized as a multidimensional construct of brand familiarity, brand reputation and brand trust, as the key factor connecting marketing capability and customer behavioral intentions. Two distinct types of marketing capability, product development capability and marketing communication capability, are investigated due to their importance for brand performance and accessibility to consumers. Data was collected through a face-to-face survey at three major railway stations in Beijing city in the context of electronic product industry. Structural equation modeling (SEM) was employed to conduct data analysis. Results indicate that two categories of marketing capability have varying impact on brand equity and influence customer responses through different brand equity components. Specifically, product development capability has positive influence on all the three brand equity components with its greatest impact on brand trust, whereas marketing communication capability has positive relationship with brand familiarity and brand reputation but not with brand trust. Brand reputation is directly related with brand trust, while brand familiarity does not necessarily lead to brand trust. Finally, all the three brand equity components can improve customer behavioral intentions. In sum, results suggest that a firm’s efforts on marketing capability can enhance brand equity through distinct routes, and subsequently facilitate favorable customer responses. ■ TA13 Champions Center III Quantifying the Profit Impact of Marketing I Cluster: Special Sessions Invited Session Chair: Xueming Luo, Eunice & James L. West Distinguished Professor of Marketing, The University of Texas at Arlington, Arlington, TX, United States of America, luoxm@uta.edu 1 - The Impact of Strategic Alliance on the Innovator’s Financial Value in Markets with Network Effects and Standard Competition Qi Wang, Binghamton University, Binghamton, Binghamton, NY, United States of America, qiwang@binghamton.edu, Jinhong Xie, Ashwin Malshe Innovating firms in markets with network effects and standards competition face significantly higher risk due to the challenge of attracting buyers at start up and the possibility of a “winner take all” market outcome going to a competitor. In contrast to previous research that has addressed these challenges from the perspective of marketing performance (e.g., increasing a product’s user base), this study examines how an innovator in such markets can increase its financial value by forming strategic alliances, both within the industry (i.e., with other manufactures) and across industries (e.g., with its suppliers, complementary product producers, and distributors). Based on data collected in the high-definition DVD player market, our empirical analyses find general support for a positive impact of strategic alliance announcements on the innovator’s financial value. More interestingly, our results reveal that not all strategic alliances are equally valuable to the innovator. Rather, (i) an alliance with producers of complementary products creates a higher value than an alliance with manufactures producing the same product and (ii) an alliance with downstream channel members such as distributors and retailers creates more value than an alliance with upstream channel members such as R&D and engineering. Furthermore, we illustrate the different dynamic pattern of the impact by a horizontal strategic alliance (with partners in the same or complementary industry) and by a vertical strategic alliance (with upstream or downstream channel partners). 8 These and other findings offer important managerial implications for innovators on how to efficiently form strategic alliances and increase new product success in markets with network effects and standards competition. 2 - The Dynamic Effects of Service Recovery Strategies on Customer Satisfaction Xueming Luo, Eunice & James L. West Distinguished Professor of Marketing, The University of Texas at Arlington, Arlington, TX, United States of America, luoxm@uta.edu, Fang Zheng Even though the existing literature has ample studies on the types service recovery efforts and their impact on customer evaluations, little research attention has been paid to how dynamic the effects are when recouping customer satisfaction. We evaluate dynamic effects in terms of the long tail or short tail, high or low buildup, as well as quick or slow peak point timing. Different from previous studies using perceptual soft data with survey or experiments, this paper utilizes company archival hard data in a field study. The setting of our dataset is interesting because it is related to a major Chinese telecom company and how this company tries to pull back its customer satisfaction after a major service failure caused by the deadly earthquake in 2008. The developed time-series model account for the endogenous problems due to reverse causality, full interactions among endogenous variables, autoregression effects, market competition, and many alternative explanations. This research is crucial for managers to pulse when and what rescue initiatives can be considered a success in combating customer satisfaction loss. 3 - The Information Content of Marketing Investments: The Case of Sales Force Resizing Announcements Anne T. Coughlan, John L. & Helen Kellogg Professor of Marketing, Northwestern University, 2001 Sheridan Road, Evanston, IL, United States of America, a-coughlan@kellogg.northwestern.edu, Joseph Kissan, M. Babajide Wintoki This paper is concerned with the ability of marketing investments to convey information from the “black box” of the firm to participants in the financial markets. We focus on the context of sales force resizing announcements in the pharmaceutical industry because the sales force comprises the main marketing instrument for firms in this industry. We hypothesize that sales force resizing announcements will generate a concomitant market reaction because they provide information about future demand. Moreover, we predict stronger absolute effects for “increase” announcements than for “decrease” announcements. This is because the mean-shifting and uncertainty reducing aspects of new information work in concert for increase announcements, but in opposing ways for decrease announcements. Our theory also predicts a more pronounced market reaction when investors are more uncertain about the firm’s future performance and the announcement contradicts the direction of investors’ prior beliefs. Employing an event-study analysis, we find an unusually strong twoday market reaction of 3.2% for increase announcements and no significant market reaction for decrease announcements. The hypothesized effects with respect to uncertainty and direction of investors’ prior beliefs are also supported. We conclude by discussing implications for managing the investor relations function. 4 - Panel Discussion: Criticisms and Future Research Opportunities for Marketing’s Profit Impact Moderator: Dominique Hanssens, University of California-Los Angeles, 110 Westwood Plaza, Los Angeles, CA, 90095, United States of America, dominique.hanssens@anderson.ucla.edu, Panelists: Gerard J. Tellis, David Reibstein Both scholars and practitioners have long been concerned about the accountability of marketing expenditures. To rebuild confidence in marketing, researchers should analyze marketing’s impact on stock prices in a new paradigm of assessing the value of marketing activities. However, the burgeoning field is not without criticism. First, there is concern that prior studies are not rigorous enough in terms of econometric modeling. Thus, this session will organize some modelers to share their sights on how to deal with endogeneity, reserve causality, heterogeneity, and other issues. Second, some criticize that there is little substance on the underlying processes and boundary conditions for the marketing-finance interface. As such, the panel members will present some insights into future research topics and build a more comprehensive research agenda on the importance of marketing in the financially oriented reality world. ■ TA14 Champions Center VI Customers’ Willingness-to-pay Research Contributed Session Chair: Neil Biehn, Senior Director, PROS Pricing, 3100 Main Street, Houston, TX, 77002, United States of America, nbiehn@prospricing.com 1 - Exploring Consumer Heterogeneity with Respect to Seasonal Shifts of Demand Ali Umut Guler, PhD Student, London Business School, Regent’s Park, London, NW14SA, United Kingdom, uguler.phd2008@london.edu In this research, I provide an alternative explanation for why the prices of seasonal products might be falling during their high demand periods. This phenomenon of countercyclical pricing is well documented in the economics literature. It goes against intuition, as basic economic theory predicts a price increase when there is an outward
shift in the demand curve. Most of the explanations proposed for this phenomenon are based on competitive interactions among firms. I focus on consumer-level insights that could provide a rationale for a countercyclical pricing scheme. I show theoretically that the optimal pricing scheme for a seasonal product could be countercyclical due to consumer heterogeneity with respect to seasonal shifts in demand. The monopolist then makes use of this heterogeneity to sell only to the higher valuation segment during low season. I also provide empirical support for this theory using two different datasets of canned soup sales. Using a store-level aggregate sales dataset, I provide evidence against alternative explanations and I document that the demand appears to become more price inelastic during high season. I show that this finding can be explained by the existence of a break in the demand curve due to presence of different consumer segments. On a different dataset of consumer-level purchases, I show that the fit of a purchase incidence model improves when it allows for consumer segments that differ in their valuations across seasons. The estimates obtained for segment specific product valuations are in line with the predictions of the proposed model. 2 - A Structural Model for a “Name Your Own Price” Mechanism with a Fixed Price Option Kerem Yener Toklu, Rice University, 6100 Main St, Houston, TX, United States of America, kt3@rice.edu This paper provides an empirical analysis for a version of the “Name Your Own Price” mechanism used in an online marketplace where buyers also have the option to purchase the item at a fixed price determined by the seller. This particular sale type with the additional fixed price feature has not been paid much attention in the literature. Structural econometric techniques are employed to estimate the distribution of buyers’ valuations which is then used to find the optimal fixed price for the seller and quantify the value of information. First, a decision theoretic model is used and the optimal buying strategy is characterized. A nonparametric method is then proposed to estimate the distribution of values. To generalize the model for different buying strategies a behavioral model is also considered under weaker assumptions and parametric estimation is used to capture a number of sale and item covariates. Calibrated models are then used to run counterfactual simulations to find revenue maximizing fixed prices for sellers. Aside from characterizing buyer behavior and optimal selling strategies, the paper also studies the information asymmetry between sellers and buyers, and provides a way to quantify the value of information. It is prevalent in online market places that the quality of the item being sold may not be reflected perfectly on the sale webpage which raises an information asymmetry between sellers and buyers. The uncertainty in the quality of the item directly influences the value of buyers, and knowing this, sellers reveal information using different channels on the webpage. Amount of this information is used as a variable and simulations are run to measure the effect of information asymmetry on sale prices and quantify the value of information for buyers. 3 - Framing Effects and Consumers’ Reactions to Corporate Social Responsibility Carmelo J. Leon, Department of Applied Economic Analysis, University of Las Palmas de Gran Canaria, C/Juan de Quesada, n∫ 30, Las Palmas de Gran Canaria, Spain, cleon@daea.ulpgc.es, Jorge Araña, Christine Eckert Corporate social responsibility (CSR) might raise different reactions across consumers depending on the way they are framed in their marketing and selling process. In this paper we focus on the effects of alternative frames for CSR measures. Whereas previous research only focused on single evaluations of each CSR policy separately and thus ignored potential trade-offs consumers face when deciding between different CSR-policies companies offer, we utilize discrete choice experiments (DCE) that more realistically picture consumers’ every-day choices. Subjects were presented with alternative profiles of CSR measures and were divided into two treatments that varied according to the definition of the status quo alternative and the valuation question. The design of the experiments allowed us to compare the willingness to pay (WTP) a higher price for a product undertaking CSR measures and the willingness to accept (WTA) a lower price for a product with a lower CSR profile. By disentangling the effects of differences in choice uncertainty (i.e. choice scale) and preferences between the two scenarios, we are able to show that the WTA/WTP gap exists only for some CSR policies but doesn’t show up for others. Our results further demonstrate that measures for WTA and WTP are significantly more dispersed in choice experiments with joint evaluations of different CSR policies than in single evaluation – which is likely to be caused by the availability of reference alternatives consumers use to form preferences in the former situation. 4 - Pricing and Willingness-to-pay Estimation in B2B Markets Neil Biehn, Senior Director, PROS Pricing, 3100 Main Street, Houston, TX, 77002, United States of America, nbiehn@prospricing.com There has been considerable research, as well as the application of various marketing techniques, to capture consumers’ Willingness-to-Pay. In this talk, we discuss why many of the common techniques are difficult to implement in a B2B environment. We will also explore a more data driven approach to capturing the Willingness-to-Pay of a B2B customer and present results from its implementation. MARKETING SCIENCE CONFERENCE – 2011 TA15 9 ■ TA15 Champions Center V B2B: Relationships Contributed Session Chair: Alfred Zerres, Institute of Business-to-Business Marketing, University of Muenster, Am Stadtgraben 13-15, Münster, 48143, Germany, alfred.zerres@uni-muenster.de 1 - A Theory of Bargaining Costs and Price Terms in the Absence of Relationship-specific Investments Desmond (Ho-Fu) Lo, Assistant Professor, Santa Clara University, 500 El Camino Real, Santa Clara, CA, 95050, United States of America, hlo@scu.edu, Giorgio Zanarone Firms often bring pre-existing assets such as brand and market strength into joint business ventures. We model a bargaining process and price terms in these ventures as a tension between saving ex ante contract design costs and facing ex post opportunism, in the shadow of judicial behavior. On the one hand, to save on design costs, parties can leave price open for future negotiations and face ex post dilution in their pre-existing assets through wasteful bargaining actions. On the other hand, parties can go through the effort of fixing the contract price ex ante and thus prevent opportunistic renegotiations through a credible threat of having the contract reinstated by courts. We show that firms prefer to specify the contract terms ex ante when the value of their pre-existing assets is high and the environment is not complex. Our theory adds to Transaction Cost Economics (TCE) by (1) formalizing a bargaining process that is observed in the real world and its effect, together with the judicial principle of contract reinstatement, on price terms and (2) extending the TCE rationale to settings where the assets brought into production are not relationshipspecific. 2 - Assessment of Purchasing Maturity in Small Business Jeffery Adams, Assistant Professor, University of Houston-Downtown, College of Business, 320 N Main St, Houston, TX, 77002, United States of America, adamsjeff@uhd.edu, Ralph Kauffman Relatively little research has been done on B-to-B buyer-supplier relationships in small and medium size business, and perhaps even less has been done on how to assess the level of purchasing development in such businesses. Successful marketing relationships with these smaller firms can hinge on the ability of marketers to assess the degree of purchasing maturity in such customers. “Purchasing maturity” can be defined as the readiness and ability of customer firms to engage in more highly developed complex and longer-term buyer-seller relationships. The primary objective of this study is to develop a means that marketers can use to measure purchasing maturity in particular small and medium size business customers or potential customers. Using data collected from a cross-sectional sample of small and medium size businesses in four NAICS sub-sectors, a measurement model is developed. Factor analysis, Pearson correlation, and stepwise regression are used in development of the model to identify factors that, to the degree that they are present, give indication of the level or degree of purchasing maturity in a business. A scorecard is developed for application of the model to individual firms. The scorecard can be used by both marketers and customer management to assess the level of purchasing maturity that exists in the buying firm. The primary contribution of this research is the development of an additional tool for B-to-B marketers to assess the readiness of existing or potential small and medium size customers to engage in higher-level buyer-seller relationships and thereby increase the seller’s market potential. 3 - Integrative Negotiation Training: Enduring Effects of Asymmetrical and Symmetrical Training Alfred Zerres, Institute of Business-to-Business Marketing, University of Muenster, Am Stadtgraben 13-15, Münster, 48143, Germany, alfred.zerres@uni-muenster.de, Joachim Hüffmeier, Alexander Freund, Klaus Backhaus Almost every business deal in practice is shaped by negotiations as a dominant transaction mechanism (Anderson/Narus/Narayandas, 2009; Thompson, 2009). Thus, negotiation skills are crucial to ensure successful transactions for every business marketing manager and companies consequentially try to improve their marketing managers’ negotiation skills through respective training programs. As a consequence, negotiation training has become a multi-billion dollar industry alone in the US. But are these trainings worth their money? To address this question, we focus on two gaps in the negotiation training literature. While research has shown that negotiation training can successfully increase negotiation outcomes immediately after the training, little is known about its effectiveness across time. Furthermore, in all previous studies both conflicting parties were trained. From an applied perspective, this may well be a problematic feature of the literature, as firms can hardly train both parties in business negotiations. To address the related open questions, we conducted an integrative negotiation training experiment with a total of 360 participants (180 dyads). We used a one-factorial design with training (no training, only seller trained, only buyer trained, and both parties trained) as between- and three measurement times as within-subjects factor (assessments before, immediately after, and 30 days after the training). Results reveal that integrative negotiation training is not only effective, but even increases in periods of non-practice. However, one-party negotiation training was only successful if the trained party was the seller and failed if the buyer received the training. This results pattern is discussed with respect to the broader negotiation literature.
Page 1 and 2: How to Navigate the Contributed Ses
Page 3 and 4: address a target group. i.e., shoul
Page 5 and 6: ole that prior distributions play i
Page 7: 4 - Understanding Customers` Substi
Page 11 and 12: marketers may predict future custom
Page 13 and 14: ■ TB06 Legends Ballroom VII Compe
Page 15 and 16: 3 - The Impact of Free-trial Promot
Page 17 and 18: 3 - Cross-cultural Differences in B
Page 19 and 20: of the sequence of evaluation, a pa
Page 21 and 22: ■ TC06 Legends Ballroom VII Compe
Page 23 and 24: and on the transaction utility they
Page 25 and 26: een developed would help marketers
Page 27 and 28: Thursday, 3:30pm - 5:00pm ■ TD01
Page 29 and 30: interest. To evaluate the performan
Page 31 and 32: 2 - What You Don’t Know Can’t H
Page 33 and 34: ■ TD12 Champions Center II Biddin
Page 35 and 36: while maintaining market growth rat
Page 37 and 38: knowledge. However, buyers with a h
Page 39 and 40: ■ FA07 Founders I Panel Session:
Page 41 and 42: ecoming more acceptable, the dilemm
Page 43 and 44: 2 - Choosing the Right Plan? Asymme
Page 45 and 46: 4 - A Framework for Unifying Differ
Page 47 and 48: ■ FB06 Legends Ballroom VII Chann
Page 49 and 50: 3 - Money-back Guarantees: The Grea
Page 51 and 52: 2 - The Impact of Consulting on Buy
Page 53 and 54: 2 - Data or Structure? Using a Fiel
Page 55 and 56: 4 - Green Lifestyle Adoption: Shopp
Page 57 and 58: 2 - Determining Consumers’ Discou
Page 59 and 60:
3 - Investigating Salespeople Turno
Page 61 and 62:
2 - One-stop Shopping: A Double Edg
Page 63 and 64:
3 - Which Link to Click - Sponsored
Page 65 and 66:
valuation of the high-end consumers
Page 67 and 68:
2 - A Machine Learning Approach to
Page 69 and 70:
4 - Social Ties and User Generated
Page 71 and 72:
■ SA02 Legends Ballroom II Twitte
Page 73 and 74:
■ SA05 Legends Ballroom VI Game T
Page 75 and 76:
differ depending on their respectiv
Page 77 and 78:
2 - The Impact of Online Referrals
Page 79 and 80:
Saturday, 10:30am - 12:00pm ■ SB0
Page 81 and 82:
2 - R&D Spillover and Product Diffe
Page 83 and 84:
2 - The Advertising Role of Profess
Page 85 and 86:
4- Optimal Allocation of Marketing
Page 87 and 88:
3 - Information Communities: The Ne
Page 89 and 90:
■ SC06 Legends Ballroom VII Consu
Page 91 and 92:
and context is unclear. The current
Page 93 and 94:
A Agarwal, Nipun SB14 Alexandrov, A
Page 95 and 96:
F Fan, Tingting FC10 Fang, Eric TA0
Page 97 and 98:
Schweidel, David TC07, FA02, FB02,
Page 99:
Friday, 1:30pm - 3:00pm FC01 Choice
show all

Conference Sessions - Jesse H. Jones Graduate School of ...

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?