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Chapter 12<br />

1. John Frank, “Beep! Beep! Co<strong>min</strong>g Through,” <strong>Marketing</strong><br />

News, September 30, 2009, pp. 12-14; David Kiley,<br />

“Ford’s Savior?” BusinessWeek, March 16, 2009,<br />

pp. 31–34; Alex Taylor III, “Fixing Up Ford,” Fortune,<br />

May 25, 2009, pp. 45–50; David Kiley, “One Ford for<br />

the Whole Wide World,” BusinessWeek, June 15, 2009,<br />

pp. 58–59; “Ford’s European Arm Lends a Hand,”<br />

Economist, March 8, 2008, pp. 72–73.<br />

2. This discussion is adapted from a classic article:<br />

Theodore Levitt, “<strong>Marketing</strong> Success through<br />

Differentiation: Of Anything,” Harvard Business Review,<br />

January–February 1980, pp. 83–91. The first level, core<br />

benefit, has been added to Levitt’s discussion.<br />

3. Harper W. Boyd Jr. and Sidney Levy, “New Dimensions<br />

in Consumer Analysis,” Harvard Business Review,<br />

November–December 1963, pp. 129–40.<br />

4. Jim Curley, “Niagara Sheet Feeder in Full Production,”<br />

The White Sheet: Board Converting News, August 25,<br />

2008; Jackie Schultz, “A Sheet Plant’s Lean Journey,”<br />

Corrugated Today, January–February 2005, pp. 42–47;<br />

Joe Iannarelli, “Jamestown Container Thinks Outside<br />

the Box,” Business First, October 3, 2003, p. 4.<br />

5. For some definitions, see Peter D. Bennett, ed.,<br />

Dictionary of <strong>Marketing</strong> Terms (Chicago: American<br />

<strong>Marketing</strong> Association, 1995). Also see, Patrick E.<br />

Murphy and Ben M. Enis, “Classifying Products<br />

Strategically,” Journal of <strong>Marketing</strong> 50 (July 1986),<br />

pp. 24–42.<br />

6. Some of these bases are discussed in David A. Garvin,<br />

“Competing on the Eight Dimensions of Quality,”<br />

Harvard Business Review, November–December 1987,<br />

pp. 101–9.<br />

7. Marco Bertini, Elie Ofek, and Dan Ariely, “The<br />

Impact of Add-On Features on Product Evaluations,”<br />

Journal of Consumer Research 36 (June 2009),<br />

pp. 17–28; Tripat Gill, “Convergent Products: What<br />

Functionalities Add More Value to the Base,” Journal<br />

of <strong>Marketing</strong> 72 (March 2008), pp. 46–62; Robert J.<br />

Meyer, Sheghui Zhao, and Jin K. Han, “Biases in<br />

Valuation vs. Usage of Innovative Product Features,”<br />

<strong>Marketing</strong> Science 27 (November–December 2008),<br />

pp. 1083–96.<br />

8. Paul Kedrosky, “Simple Minds,” Business 2.0, April<br />

2006, p. 38; Debora Viana Thompson, Rebecca W.<br />

Hamilton, and Roland Rust, “Feature Fatigue: When<br />

Product Capabilities Become Too Much of a Good<br />

Thing,” Journal of <strong>Marketing</strong> Research 42 (November<br />

2005), pp. 431–42.<br />

9. James H. Gilmore and B. Joseph Pine, Markets of One:<br />

Creating Customer-Unique Value through Mass<br />

Customization, (Boston: Harvard Business School<br />

Press, 2000).<br />

10. Nikolaus Franke, Peter Keinz, Christoph J. Steger,<br />

“Testing the Value of Customization: When Do<br />

Customers Really Prefer Products Tailored to Their<br />

Preferences,” Journal of <strong>Marketing</strong> 73 (September<br />

2009), pp. 103–21.<br />

11. Gail Edmondson, “Mercedes Gets Back up to Speed,”<br />

BusinessWeek, November 13, 2006, pp. 46–47; Peter<br />

Gumble, “How Dr. Z Plans to Fix Mercedes,”<br />

CNNMoney.com. http://money.cnn.com, July 13, 2009;<br />

Chris Shunk, “Paradox: As Quality Improves,<br />

Mercedes-Benz Dealership Profits Decline,”<br />

Automotive News, January 27, 2009.<br />

12. Bernd Schmitt and Alex Simonson, <strong>Marketing</strong><br />

Aesthetics: The Strategic <strong>Management</strong> of Brand,<br />

Identity, and Image (New York: Free Press, 1997).<br />

13. Stanley Reed, “Rolls-Royce at Your Service,”<br />

BusinessWeek, November 15, 2005, pp. 92–93; Rolls-<br />

Royce, www.rolls-royce.com/civil/services/totalcare;<br />

“Rolls-Royce Secures USD 4.1 Billion Worth Orders<br />

During Paris Air Show,” India Defence, www.indiadefence.com,<br />

June 20, 2009; “Rolls-Royce Engine<br />

Support,” Aviation Today, June 1, 2006.<br />

14. For a comprehensive discussion of Cemex, see Adrian<br />

J. Slywotzky and David J. Morrison, “Digital Innovator:<br />

Cemex,” How Digital Is Your Business (New York:<br />

Crown Business, 2000), pp. 78–100; see also Mohanbir<br />

Sawhney, Robert C. Wolcott, and Inigo Arroniz, “The<br />

12 Different Ways for Companies to Innovate,” MIT<br />

Sloan <strong>Management</strong> Review (April 1, 2006).<br />

15. Cliff Edwards, “Why Tech Bows to Best Buy,”<br />

BusinessWeek, December 10, 2009; Jena McGregor,<br />

“At Best Buy, <strong>Marketing</strong> Goes Micro,” BusinessWeek,<br />

May 15, 2008; Matthew Boyle, “Best Buy’s Giant<br />

Gamble,” Fortune, April 3, 2006, pp. 69–75; Geoffrey<br />

Colvin, “Talking Shop,” Fortune, August 21, 2006, pp.<br />

73–80; “Best Buy Turns on the Geek Appeal,” DSN<br />

Retailing Today, February 24, 2003, p. 22.<br />

16. This section is based on a comprehensive treatment of<br />

product returns: James Stock, Thomas Speh, and<br />

Herbert Shear, “Managing Product Returns for<br />

Competitive Advantage,” MIT Sloan <strong>Management</strong><br />

Review (Fall 2006), pp. 57–62. See also, J. Andrew<br />

Petersen and V. Kumar, “Can Product Returns Make<br />

You Money?” MIT Sloan <strong>Management</strong> Review (Spring<br />

2010), pp. 85–89.<br />

17. Dave Blanchard, “Moving Forward in Reverse,”<br />

Logistics Today, July 12, 2005; Kelly Shermach,<br />

“Ta<strong>min</strong>g CRM in the Retail Sector,” CRM Buyer,<br />

October 12, 2006; www.epinions.com, June 28, 2010.<br />

18. Bruce Nussbaum, “The Power of Design,”<br />

BusinessWeek, May 17, 2004, pp. 88–94; “Masters of<br />

Design,” Fast Company, June 2004, pp. 61–75; Also<br />

see, Philip Kotler, “Design: A Powerful but Neglected<br />

Strategic Tool,” Journal of Business Strategy (Fall<br />

1984), pp. 16–21.<br />

19. Ravindra Chitturi, Rajagopal Raghunathan and Vijay<br />

Mahajan, “Delight by Design: The Role of Hedonic<br />

Versus Utilitarian Benefits,” Journal of <strong>Marketing</strong> 72<br />

(May 2008), pp. 48–63.<br />

20. Ulrich R. Orth and Keven Malkewitz, “Holistic Package<br />

Design and Consumer Brand Impressions,” Journal of<br />

<strong>Marketing</strong> 72 (May 2008), pp. 64–81; Mark Borden,<br />

“Less Hulk, More Bruce Lee,” Fast Company, April<br />

2007, pp. 86–91.<br />

Endnotes<br />

E31

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