Tag Archives: Marketing

  • Relating Price Sensitivity to Retailer Promotional Variables and Pricing Policy: An Empirical Analysis

    Shankar_Krishnamurthi_JR_1996

    by Venkatesh Shankar and Lakshman Krishnamurthi

    This article was published in the Journal of Retailing, 72 (3, 1996), 249-272.

    There is substantial evidence for variation in price sensitivity of products across stores and chains.  Understanding the relationships between price sensitivity and promotional variables (such as price cut, feature advertising, and display), and between price sensitivity and pricing policy (Everyday Low Pricing [EDLP] and High Low Pricing [HLP]) is particularly important to retailers.  We develop hypotheses on the relationships between regular price elasticity and retailer promotional variables, and between regular price elasticity and retailer pricing policy.  We test these hypotheses by analyzing the variation of regular price elasticity of a frequently purchased consumer packaged brand across stores, both within and across chains, through a multistage regression analysis.  In the first stage of our analysis, we use a mixed double-log model to estimate the sales response function for the brand in each store using time series data.  In the second stage, we explain the differences in the estimated regular price elasticities across stores within a chain by a process function model.  In the final stage, the differences across all stores and chains are explained through an aggregate process function model.  We extend the literature by separating regular (long-run) price elasticity from promotional (short-run) elasticity, and by studying the influence of both strategic and tactical retailer variables on regular price elasticity in a single framework within and across chains.  Our results for the brand analyzed show that a higher level of display and feature advertising together is associated with a lower level of regular price elasticity in EDLP stores and that an EDLP policy is associated with a higher level of regular price elasticity, whereas an HLP policy is related to a lower level of regular price elasticity.

  • New Product Introduction and Incumbent Response Strategies: Their Interrelationship and the Role of Multimarket Contact

    Shankar_JMR_1999

    by Venkatesh Shankar

    This article was published in Journal of Marketing Research, 36 (August 1999), 327-344.

    In this paper, we study the determinants of both new product introduction and incumbent response strategies in a single integrated framework.  Building on previous research in strategic management, industrial organization, and marketing, we first conceptually identify the factors that potentially influence these strategies.  We develop hypotheses on the impact of the key factors on these strategies. We focus on the interrelationship between new product introduction and incumbent response strategies and on the role of multimarket contact in these strategies.  To test these hypotheses, we formulate models of introduction and response strategies, which include an anticipated incumbent reaction formation model.  We estimate the models using cross-sectional and time-series data comprising 23 new product entries and responses of 59 incumbents to these entries in six leading pharmaceutical markets. Our results significantly extend previous research.  They show that new product introduction strategy is significantly influenced by incumbent reaction strategy and vice-versa. The relationship of a new product’s marketing spending with the anticipated incumbent reaction is different for incumbents of different sizes.  A new product’s spending is negatively related to the anticipated reactions of large incumbents, but is unrelated to those of small incumbents.  Our analysis shows that higher spending by a new brand results in incumbent response that is significantly lower in magnitude. Our results also show that multimarket contact results in both lower introduction spending and incumbent response.  We discuss the managerial implications of these results.

     

  • First Mover Advantage in an Internet-enabled Environment: Conceptual Framework and Propositions

    Varadarajan Yadav Shankar JAMS 2008

    by Rajan Varadarajan, Manjit Yadav, and Venkatesh Shankar

    This article was published in the Journal of Academy of Marketing Science, 36 (2008), 293-308.

    The competitive market environment has evolved from a physical market environment (PME) to an Internet-enabled market environment (IME) encompassing the physical and electronic marketplaces. At the same time, an increasing number of information products are available in both analog and digital forms. For information products in digital form, the IME also serves as a distribution channel. Such developments raise questions concerning the extent to which extant perspectives on first-mover advantage developed in the context of the PME hold in the IME, generally, and for information products specifically. We address this issue by developing a conceptual framework that focuses on selected sources of first-mover advantage delineated in the extant literature and advance propositions concerning sources that will have a greater or lower effect in the IME relative to the PME. A central message for first-movers in the IME that emerges from our conceptual analysis is to focus on achieving superior positions in resources that would enable them to get close to the customers fast, create switching costs, and retain them though ongoing investments in multi-faceted innovations. A second message that emerges for first-movers in the IME is they must take note of and make strategic adjustments for the potentially diminished significance of some traditional sources of first-mover advantage. These sources include spatial preemption, preemptive investment in capacity, and consumers’ choice behavior under conditions of uncertainty about product quality. We discuss the implications for further conceptual and empirical work in this area of increasing significance.

  • Mobile Marketing in the Retailing Environment: Current Insights and Future Research Avenues

    Shankar Venkatesh Hofacker Naik JIM 2010

    by Venkatesh Shankar, Alladi Venkatesh, Charles Hofacker, and Prasad Naik

    This article was published in the Journal of Interactive Marketing, 24 (2010), 111-120.

    Mobile marketing, which involves two- or multi-way communication and promotion of an offer between a firm and its customers using the mobile, a term that refers to the mobile medium, device, channel, or technology, is growing in importance in the retailing environment. It has the potential to change the paradigm of retailing from one based on consumers entering the retailing environment to retailers entering the consumer’s environment through anytime, anywhere mobile devices. We propose a conceptual framework that comprises three key entities, the consumer, the mobile, and the retailer. The framework addresses key related issues such as mobile consumer activities, mobile consumer segments, mobile adoption enablers and inhibitors, key mobile properties, key retailer mobile marketing activities and competition. We also address successful retailer mobile marketing strategies, identify the customer-related and organizational challenges on this topic, and outline future research scenarios and avenues related to these issues.

  • Innovations in Shopper Marketing: Current Insights and Future Research

    Shankar Inman Mantrala…JR 2011

    by Venkatesh Shankar, J. Jeffrey Inman, Murali Mantrala, Eileen Kelley, and Rozz Rizley

    This article was published in the Journal of Retailing, 87S (1, 2011), S29-S42.

    Shopper marketing refers to the planning and execution of all marketing activities that influence a shopper along, and beyond, the entire path-to-purchase, from the point at which the motivation to shop first emerges through to purchase, consumption, repurchase, and recommendation. The goal of shopper marketing is to enable a win-win-win solution for the shopper-retailer-manufacturer. Shopper marketing has emerged as a key managerial practice among manufacturers and retailers, who are eagerly embracing innovations in the different aspects of shopper marketing. We review current and potential innovations in shopper marketing. We identify the managerial challenges to achieving new win-win-win solutions among shoppers, manufacturers, and retailers in shopper marketing and outline future scenarios and research issues related to these challenges.

  • Mobile Marketing: A Synthesis and Prognosis

    Shankar Balasubramanian JIM 2009

    by Venkatesh Shankar and Sridhar Balasubramanian

    This article was published in the Journal of Interactive Marketing, 23 (2009), 118-129.

    Mobile marketing refers to the two- or multi-way communication and promotion of an offer between a firm and its customers using a mobile medium, device, or technology.  We present the conceptual underpinnings of mobile marketing and a synthesis of the relevant literature. We identify and discuss four key issues: drivers of mobile device/service adoption, the influence of mobile marketing on customer decision-making, formulation of a mobile marketing strategy, and mobile marketing in the global context.  We outline research directions related to these issues and conclude by delineating the managerial implications of mobile marketing insights.

  • Multiple-Category Decision-Making: Review and Synthesis

    Russell_Ratneshwar_- Shankar_MLetters_1999

    by Gary J. Russsell, S. Ratneshwar, Allan D. Shocker, David Bell, Anand Bodapati, Alex Degeratu, Lutz Hildenbrandt, Namwoon Kim, S. Ramaswami, and Venkatesh Shankar

    This aricle was published in Marketing Letters, 10 (3, 1999), 319-332.

    In many purhcase environments, consumers use information from a number of product categories prior to making a decision. These purchase siuaions create dependences in choice outcomes across categories. As such, these decisions cannot be modeled using a single-category, single-choice paradigm commonly used by researchers in marketing. We outline a conceptual framework for categorization, and then discuss three types of cross-category dependence: cross-category consideration, cross-category learning, and product bundling. We argue that the key modeling choice dependence across categories is knowledge of the goals driving consumer behavior.

  • On the Efficiency of Internet Markets for Consumer Goods

    Ratchford_Pan_Shankar_JPPM_2003

    Brian T. Rachford, Xing Pan, and Venkatesh Shankar

    This article was published in Journal of Public Policy and Marketing, 22 (Spring 2003), 4-16.

    Despite claims that electronic commerce lowers search costs dramatically, and therefore makes it easy for consumers to spot the best buy, empirical studies have found a substantial degree of price dispersion in electronic markets for consumer goods. This study investigates the consumer welfare implications of observed price levels and price dispersion in electronic markets. We examine the consumer welfare implications of changes in the structure of electronic commerce markets employing comprehensive data sets on e-tailer prices and services collected from BizRate.com in November 2000 and 2001. We find that price dispersion decreased substantially between these two periods, and that measured differences in e-tailer services bear little relation to e-tailer prices.

  • Marketing, R&D and the Fortune 500

    The effects of marketing spending and R&D spending on firms’ survival in the Fortune 500.

    http://www.youtube.com/watch?v=jQ7MVsmnaAM&feature=endscreen&NR=1

     

  • Handbook of Marketing Strategy

    Edited by Venkatesh Shankar and Gregory S. Carpenter

    http://www.e-elgar.com/bookentry_main.lasso?currency=US&id=13920

    http://tinyurl.com/9apok9c

    This authoritative, comprehensive, and accessible volume by leading global experts provides a broad overview of marketing strategy issues and questions, including its evolution, competitor analysis, customer management, resource allocation, dynamics, branding, advertising, multichannel management, digital marketing and financial aspects of marketing.

    Contributors: T.J. Arnold, G.S. Carpenter, D. Chandrasekaran, J.A. Czepiel, M.G. Dekimpe, C. Frennea, G.F. Gebhardt, K. Gielens, R. Grewal, D.M. Hanssens, K. Helsen, D.L. Hoffman, D.B. Holt, K.E. Jocz, K.L. Keller, R.A. Kerin, V. Kumar, M.B. Leiberman, V. Mittal, D.B. Montgomery, T.P. Novak, R.W. Palmatier, J.A. Quelch, B. Rajan, J.S. Raju, R.C. Rao, B.T. Ratchford, J.H. Roberts, D.D. Rucker, G. Sabnis, R. Sethuraman, V. Shankar, G. Tellis, R. Varadarajan, P.C. Verhoef, R.S. Winer

    This authoritative, comprehensive, and accessible volume by leading global experts provides a broad overview of marketing strategy issues and questions, including its evolution, competitor analysis, customer management, resource allocation, dynamics, branding, advertising, multichannel management, digital marketing and financial aspects of marketing.

    The Handbook comprises seven broad topics. Part I focuses on the conceptual and organizational aspects of marketing strategy while Part II deals with understanding competition. Customers and customer-based strategy, marketing strategy decisions, and branding and brand strategies are covered in the next three parts while Part VI looks at marketing strategy dynamics. The final part discusses the impact of marketing strategy on performance variables such as sales, market share, shareholder value and stakeholder value. All of the chapters in this Handbook offer in-depth analyses of research developments, provide frameworks for analyzing key issues, and highlight important unresolved problems in marketing strategy. Collectively, they provide a deep understanding of and key insights into the foundations, antecedents and consequences of marketing strategy.

    This compendium is an essential resource guide for researchers, doctoral students, practitioners, and consultants in the field of marketing strategy.