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1 – 7 of 7René Hubert Kerschbaumer, Thomas Foscht and Andreas B. Eisingerich
The trend toward subscription economy accelerated the rise of access-based consumption models for durable consumer goods, replacing individual ownership with subscription…
Abstract
Purpose
The trend toward subscription economy accelerated the rise of access-based consumption models for durable consumer goods, replacing individual ownership with subscription contracts. At the same time, disruptive platform businesses have arisen in several consumer markets, bypassing traditional value chains while growing through network effects. In a conceptual approach, the authors address the future market for durable consumer goods in light of developments toward access-based consumption, subscription models and platform business models.
Design/methodology/approach
In a conceptual approach, the authors apply a scenario analysis following the Framework Foresight method and address trends, constants, plans and projections shaping the future market of subscriptions for durable goods. The authors create a baseline scenario and two alternative scenarios for the future of consumer durables and thereby discuss platform growth stages and implications for manufacturer brands.
Findings
The rising market power of platform companies leads to a baseline scenario where these platforms enter the market of subscriptions for durable goods. Alternative scenario 1 addresses the successful market entry of new platform businesses. In contrast, alternative scenario 2 describes the rise of manufacturer brand platforms.
Originality/value
This conceptual research enriches the discussion of access-based business models by creating scenarios depicting possible future developments. Moreover, it adds to the increasing focus on platform business models and thereby addresses the role of traditional manufacturer brands in markets for durable consumer goods subscriptions.
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Yeyi Liu, Tobias Johannes Hubert Mayerhofer, André Marchand, Thomas Foscht, Martin Paul Fritze and Andreas Benedikt Eisingerich
This study aims to explore the extent to which customer orientation and creative benefits offered by a firm may weaken rather than strengthen customer engagement. In doing so, it…
Abstract
Purpose
This study aims to explore the extent to which customer orientation and creative benefits offered by a firm may weaken rather than strengthen customer engagement. In doing so, it sheds new light on how customer orientation and creative benefits may facilitate rather than hinder engagement by customers.
Design/methodology/approach
A field study provides a test of the proposed effects in a hedonic consumption setting with 1,703 customers of an online dating service. Furthermore, an experimental study with 277 executives in a functional consumption setting (new mobile app) helps affirm the robustness of the field study findings.
Findings
This research theorizes and examines how communal relationship norms between customers and a firm, along with customers’ psychological empowerment, mediate the effect of customer orientation and creative benefits on customer engagement. A provocative finding of the study is that communal relationship norms help boost, whereas psychological empowerment reduces, the effects of both customer orientation and creative benefits on customer engagement.
Research limitations/implications
The research examines different relationship norms and how they can become integral to customer–company relationships; this perspective helps reveal the underlying dynamics. It contributes to the literature on customer engagement by theorizing and demonstrating the link between customer orientation and customer engagement, two central constructs in the marketing literature. It theorizes and demonstrates that providing creative benefits brings about a direct competitive advantage for the product itself, and acts as a significant variable that explains the company−customer relationship.
Practical implications
The findings highlight the advantages and challenges associated with encouraging customer engagement. First, they suggest that companies emphasize their customer orientation and creative benefits. Second, managers should try to minimize the possible process of raising customers’ psychological empowerment while maximizing the impact of communal relationship norms.
Originality/value
This study identifies psychological empowerment as a key reason customer-oriented companies that provide creative benefits still struggle to engage their customers. It also suggests viable tactics to overcome barriers to enhanced customer engagement, such as by minimizing the effects of customers’ psychological empowerment while maximizing the impact of their perceived communal relationship norms.
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Augusto Bargoni, Alberto Ferraris, Šárka Vilamová and Wan Mohd Hirwani Wan Hussain
The purpose of this paper is to provide an integrative picture of the state of the art of the literature on digitalisation of small and medium-sized enterprises (SMEs) as an…
Abstract
Purpose
The purpose of this paper is to provide an integrative picture of the state of the art of the literature on digitalisation of small and medium-sized enterprises (SMEs) as an enabler for their internationalisation process and as a comprehensive view of the specific domains impacted by digital technologies as well as their repercussions on the international outreach.
Design/methodology/approach
A systematic review which leverages a descriptive analysis of extant literature and an axial coding technique has been conducted to shed light on the current knowledge and to identify primary research areas and future research lines.
Findings
The research indicates that digitalisation impacts the internationalisation of SMEs in three specific domains: (1) internationalisation through the adoption of information and communication technologies (ICT) technologies and e-commerce platforms; (2) international expansion through the digitalisation of value chain activities and (3) international outreach through knowledge acquisition on digital platforms.
Originality/value
The value of this study is threefold. First, the authors attempt to systematically review the literature on SMEs digitalisation and internationalisation and provide a holistic perspective on the intertwining of these two research streams. Second, the authors propose a novel conceptualisation on the dimensions of SMEs digitalisation as enablers to internationalisation. Third, the authors put forward promising future lines of research.
Highlights
Digitalisation represents a pivotal strategy that allows companies to build new strategic capabilities and is a propeller for SMEs internationalisation.
Through e-commerce, SMEs could compete at the same level of multinational companies but enduring lower costs of expansion.
Digital platforms allow SMEs to enhance the learning processes about international markets through an immediate access to relevant information.
Digital entrepreneurship has enabled SMEs to develop new configurations of value chain activities, evolving their business model or reaching new markets.
SMEs are changing the “business as usual” paradigm offering digital tools to build modular architectures that are scalable and agile in their evolution ability.
Digitalisation represents a pivotal strategy that allows companies to build new strategic capabilities and is a propeller for SMEs internationalisation.
Through e-commerce, SMEs could compete at the same level of multinational companies but enduring lower costs of expansion.
Digital platforms allow SMEs to enhance the learning processes about international markets through an immediate access to relevant information.
Digital entrepreneurship has enabled SMEs to develop new configurations of value chain activities, evolving their business model or reaching new markets.
SMEs are changing the “business as usual” paradigm offering digital tools to build modular architectures that are scalable and agile in their evolution ability.
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Chanjuan Gong, Xinming He and Jorge Lengler
This paper systematically reviews and scrutinises the current development of studies concerning digital platform use in firms’ internationalisation. It also provides a research…
Abstract
Purpose
This paper systematically reviews and scrutinises the current development of studies concerning digital platform use in firms’ internationalisation. It also provides a research agenda for future work. Despite more than two decades of research, the study of how traditional firms enter foreign markets using digital platforms remains in its infancy. This paper contributes insights into the academic and managerial relevance of this field.
Design/methodology/approach
A systematic review of the literature based on content analysis was undertaken, drawing from peer-reviewed journal articles in international business, international marketing, information systems, and electronic commerce. The articles were published between 1999 and 2023, and the review employed a vote-counting method.
Findings
This analysis of 61 papers indicates that research on digital platform use in firms’ internationalisation is growing rapidly. However, the field itself is fragmented, and the research findings are inconsistent. This dynamic area reflects a growing trend, is dominated by several theories, relies primarily on survey data, and frequently uses China as a research context.
Originality/value
In acknowledging the vibrancy and managerial importance of this field, the authors offer a comprehensive overview of the existing studies to serve as a repository of knowledge on digital platform use in internationalisation for both academics and practitioners. Based on the aforementioned analysis, this study develops a reconciling framework to address current research gaps and identify future study directions.
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Shweta Singh, B.P.S. Murthi, Ram C. Rao and Erin Steffes
The current approach to valuing customers is based on the notion of discounted profit generated by the customers over the lifetime of the relationship, also known as customer…
Abstract
Purpose
The current approach to valuing customers is based on the notion of discounted profit generated by the customers over the lifetime of the relationship, also known as customer lifetime value (CLV). However, in the financial services industry, the customers who contribute the most to the profitability of a firm are also the riskiest customers. If the riskiness of a customer is not considered, firms will overestimate the true value of that customer. This paper proposes a methodology to adjust CLV for different types of risk factors and creates a comprehensive measure of risk-adjusted lifetime value (RALTV).
Design/methodology/approach
Using data from a major credit card company, we develop a measure of risk adjusted lifetime value (RALTV) that accounts for diverse types of customer risks. The model is estimated using Stochastic Frontier Analysis (SFA).
Findings
Major findings indicate that rewards cardholders and affinity cardholders tend to score higher within the RALTV framework than non-rewards cardholders and non-affinity cardholders, respectively. Among the four different modes of acquisition, the Internet generates the highest RALTV, followed by direct mail.
Originality/value
This paper not only controls for different types of consumer risks in the financial industry and creates a comprehensive risk-adjusted lifetime value (RALTV) model but also shows empirically the value of using RALTV over CLV for predicting future performance of a set of customers. Further, we investigate the impact of a firm’s acquisition and retention strategies on RALTV. The measure of risk-adjusted lifetime value is invaluable for managers in financial services.
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Thomas M. Hickman and Michael Stoica
The purpose of this study is to determine if regional proximity and fan club involvement could be used to predict success for brands that jointly sponsor a team and their key…
Abstract
Purpose
The purpose of this study is to determine if regional proximity and fan club involvement could be used to predict success for brands that jointly sponsor a team and their key rival.
Design/methodology/approach
A brand with regional proximity to the rival teams it sponsored was identified. Fan club members of a major college sports team served as respondents. Structural equation modeling was used to test a model that predicted antecedents to purchase intentions and positive word-of-mouth based on individual fan characteristics.
Findings
Results suggest that the intrinsic and social components of fanship as well as regional proximity facilitate the success of brands jointly sponsoring rivals. The intrinsic dimension of fandom foreshadowed approval of the joint sponsorship investigated but did not directly enhance the sponsor’s brand equity. Instead, it was demonstrated that fans must first approve of the joint sponsorship arrangement before conferring elevated brand equity onto the sponsor. Increased social interaction with the fan club resulted in higher levels of purchase intentions and positive word-of-mouth of the joint sponsor.
Originality/value
This study differs from prior studies investigating joint sponsors in four ways. First, the intrinsic and social dimensions of fanship were measured within the context of a fan community. Second, the context of the study included a sponsor with regional proximity to both rival teams. Third, it was determined that the proclivity for social interaction within a fan community enhances the positive outcomes for joint sponsors. Fourth, unlike previous research studying joint sponsors, this study demonstrates a path to success for these brands.
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Yulist Rima Fiandari, Baroya Mila Shanty and Maylia Dwi Nanda
This study aims at discovering the antecedent of halal cosmetics’ purchase intention by conducting development on planned behavioral theory through adding the constructs of word…
Abstract
Purpose
This study aims at discovering the antecedent of halal cosmetics’ purchase intention by conducting development on planned behavioral theory through adding the constructs of word of mouth and religiosity. Attitude plays the role as mediation variable which correlates word of mouth and religiosity toward purchase intention and mediation variable between religiosity and halal cosmetics’ purchase intention.
Design/methodology/approach
The sample of this study was 196 Muslim women living in Indonesia. This research was conducted using online survey via google form. The collected data were analyzed using partial least square.
Findings
Based on the research findings, word of mouth did not directly influence halal cosmetics’ purchase intention. Religiosity variable also did not directly influence halal cosmetics’ purchase intention. Attitude played the role as the mediation between word of mouth and halal cosmetics’ purchase intention. Attitude was also able to become the mediation between religiosity and halal cosmetics’ purchase intention. Behavioral control and attitude directly influenced halal cosmetics’ purchase intention.
Practical implications
This research findings supported business owners to make sure the cosmetics’ safety for the sake of the users. Halal label is a guarantee that the cosmetics’ process has been through the raw materials selection, the standardized product processing and also the hygienic distribution process.
Originality/value
The literature development of halal products, especially cosmetics, is pretty much needed, as cosmetics users tend to increase throughout the world. Business owners can elevate halal cosmetics’ position through users’ recommendation to increase the economic potential value of halal cosmetics.
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