Klaus Backhaus and Katrin Muehlfeld
Industrial marketing covers a broad range of heterogeneous products and services. In response to this heterogeneity, researchers have developed a variety of systematisations of…
Abstract
Purpose
Industrial marketing covers a broad range of heterogeneous products and services. In response to this heterogeneity, researchers have developed a variety of systematisations of transactions on industrial markets. These systematisations have provided insights for the identification of different types of transaction processes (business types), and for deriving type‐specific marketing recommendations. Based on this literature, the paper considers the consequences of interpreting the typological criteria as variables that can be influenced by the transaction parties, instead of treating them as data.
Design/methodology/approach
Transaction cost economics provides the main theoretical foundations. Focusing on seller‐initiated strategy, the paper develops a conceptual framework for shifts between business types that are derived based on differing degrees and horizons of asset specificity.
Findings
The paper proposes a conceptual framework and discusses technological and contractual ways of implementing shifts between business types. A central implication of the dynamic perspective is the idea of asset specificity as a choice variable.
Research limitations/implications
First, this research is conceptual. Future empirical research is needed regarding the proposed framework as a whole as well as individual hypotheses. Second, based on our qualitative considerations, more formal models could possibly be applied as useful complements in further analysis of some of the raised issues.
Practical implications
Fundamental changes in market offerings in the form of shifts between business types are common elements of marketing practice, with recent examples in the automotive industry and the IT sector. The paper offers a framework for systematically considering such shifts.
Originality/value
The paper extends existing (static) business types frameworks by incorporating a dynamic perspective.
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Paul A Ammann, Lukas Bischof and Felix Schalcher
This study attempts to segment the Swiss travel market based on holiday activities. It is based on data of the 2001 travel market in Switzerland. Cluster and discriminant analysis…
Abstract
This study attempts to segment the Swiss travel market based on holiday activities. It is based on data of the 2001 travel market in Switzerland. Cluster and discriminant analysis have been employed in order to segment the data and to explain the differences between the clusters. Hereby, five activity‐clusters could be defined, each representing a set of holiday activities most likely to be exercised. The analysis of the five clusters revealed that two demographic profile variables “occupation” and “size of household” did explain the affiliation to a certain cluster. The same could be found for the following travel profile variables: “destination and duration of the trip”, “total number of participants from a household and “type of trip”. Further research will be necessary to find out if the clusters identified really do fulfil the needed criteria for market segments in order to be used by companies in the travel industry.
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After completion of the case study, students will be able to understand the putty industry, consumer behaviour for putty, comparative advantage of putty to different industries…
Abstract
Learning outcomes
After completion of the case study, students will be able to understand the putty industry, consumer behaviour for putty, comparative advantage of putty to different industries and within industry and market entry strategy for newly introduced product.
Case overview/synopsis
Putty market in India grew at a compound annual growth rate of 15% over the period FY07–FY20. Many organized and unorganized players entered the putty market since its introduction. Putty was invented by cement companies to increase offtake of cement which otherwise declined owing to reduced use of marble. Painters are purchasing putty to be used before the paint to improve the texture of the walls and to fill cracks. Therefore, to take advantage of distribution channels and dealers’ network, paint companies introduced putty. Consumers, who use putty to improve aesthetics of their home, have very less knowledge about putty. They depend on painter or contractor for it. XYZ colourant company wanted to enter the white putty market to use the market opportunity along with coloured putty for economic project where cost is the constraint. This case study culminates with the probing question about the peculiarity of industry where two different industries are involved for the same product. This case study is designed to understand the target consumers’ behaviour and the entry decisions of the company to the growing market.
Complexity academic level
This case study is designed for use in second-year management programmes, especially for the students of strategic management and marketing strategy courses.
Supplementary material
Teaching notes are available for educators only.
Subject code
CSS 11: Strategy.
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Wilhelm Launhardt (1832‐1918) is a founder of mathematical economics. His main work, Mathematical Foundations of Economics, published in 1885, was translated into English in 1993…
Abstract
Wilhelm Launhardt (1832‐1918) is a founder of mathematical economics. His main work, Mathematical Foundations of Economics, published in 1885, was translated into English in 1993. As an engineer, he contributed to the field of not only engineering, but also of economics and, in particular, to those parts in economics which can be treated fruitfully with mathematics. Launhardt developed his work independently from the French engineers, but based it squarely on the work of the agricultural engineer von Thünen. He made references to the economists Sax, Walras and Jevons. His main economic contribution lies in founding location theory but, beyond that, he contributed to the mathematical treatment of economics, labor economics, monetary economics and technology economics with a special emphasis on railway issues from a locational point of view. Hence, it is the purpose of this paper to show how Launhardt used mathematics in his engineering‐based approach to the economics of location and technology.
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The development in the German-speaking countries of International Management (IM) as an academic discipline is analyzed both from a research-oriented and an institutional…
Abstract
The development in the German-speaking countries of International Management (IM) as an academic discipline is analyzed both from a research-oriented and an institutional standpoint. This development is characterized by a relatively long run-up after early beginnings in the 1920s and a steep jump during the past 15–20 years. Business Administration and Strategic Management rather than Economics have influenced the IM field which is now an established subject in its own right. The resulting discipline is well on its way to overcoming an alleged “black hole-image” of international isolation on the part of German-speaking countries’ scholars.
The purpose of this paper is to develop a survey tool for consumer segmentation with respect to their food consumption style and to identify interesting consumer clusters for…
Abstract
Purpose
The purpose of this paper is to develop a survey tool for consumer segmentation with respect to their food consumption style and to identify interesting consumer clusters for innovative food products development.
Design/methodology/approach
The data for this research were collected in a non‐stratified oral survey amongst 327 customers of food retail shops in southern Germany.
Findings
Cluster analysis of the data resulted in ten different consumption style segments. Additionally, consumers’ evaluation of the food product features were examined with conjoint analysis and interpreted both on a traditional preference level and on a newly elaborated acceptance level. Differences in preferences and acceptance can be observed for diverse food consumption style clusters and are the basis for target group specific food product design.
Research limitations/implications
The sample was limited in size but meaningful results could be obtained within the survey. Additional improvements can be realised in the developed survey instrument with respect to, for example, the used food consumption style descriptors, character of product innovations or the structure of the sample.
Practical implications
The developed approach can be used by food small and medium‐sized enterprises (SMEs) to integrate consumers and consumer‐related aspects in their product development and innovation activities.
Originality/value
A new approach for consumer segmentation is developed within the paper and tested in a field study in Germany. A new acceptance simulator tool uses conjoint data innovatively to gather deeper consumer feedback.
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Tanja C. Boga and Klaus Weiermair
The purpose of this paper is to serve as an introduction to the usefulness of means‐end chain (MEC) theory and analysis for branding in health tourism.
Abstract
Purpose
The purpose of this paper is to serve as an introduction to the usefulness of means‐end chain (MEC) theory and analysis for branding in health tourism.
Design/methodology/approach
An online survey was conducted within the transnational EU‐project Alpshealthcomp and with two of the largest public health insurances in Germany. Research design is based on hard laddering according to Walker and Olson. MEC items were derived from Rokeach and from Hiesel and from results of a consumer survey (n=1.607) for Alpine health and wellness tourism.
Findings
Several research questions are proposed regarding consumer association structures for health tourism using principal component analysis, cluster analysis and t‐test contrast of hypothesis. Personal values have proven to be most valuable for establishing brand associations. Here an identifiable and describable common structure exists for Alpine health tourism. With increasing product experience, consumers concentrate on viewer values closely linked to their personality. If product experience is low, consumers depend on a multitude of values.
Research limitations/implications
The proportion of female participants in the sample is very high. A more balanced sample and analysis for gender differences could be valuable. Also it should be tried to replicate findings for other types of intangible services.
Practical implications
The identified value structure can be addressed in brand communication and could complement the concept of brand personality. When shifting emphasis in staging and communicating values according to product experience, tourism managers can establish a stable and strong brand. Behavioral branding can be a useful tool in this context.
Originality/value
Branding started to expand into the tourism industry only recently. Specific research work on branding in health tourism is scarce. To the best of the authors' knowledge, there exists no article in which MEC analysis was applied in order to analyze possible carrier of brand associations in health tourism. This work aims to bridge the gap.
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Bang Nguyen, Philipp “Phil” Klaus and Lyndon Simkin
The purpose of this study is to (a) develop a conceptual framework exploring the relationships between perceived negative firm customization, unfairness perceptions, and customer…
Abstract
Purpose
The purpose of this study is to (a) develop a conceptual framework exploring the relationships between perceived negative firm customization, unfairness perceptions, and customer loyalty intentions, and (b) investigate the moderating effects of trust in these relationships. The study explores how customizing offers to match customers’ individual needs and how treating customers differentially provoke unfairness perceptions among those not being considered most important. While the literature discusses unfairness perceptions of pricing, promotion, and service, less is known about unfairness in customization practices.
Design/methodology/approach
Using a survey approach, 443 completed questionnaires we collected. Following validation of our item measures, a hierarchical linear regression analysis was conducted to test the conceptual model and hypothesized linkages between our constructs.
Findings
The results demonstrate that customers’ negative perceptions of customization increase their unfairness perceptions. Unfairness perceptions drastically reduce customer loyalty intentions with trust acting as a significant moderator. Trust increases loyalty intentions even when unfairness perceptions are present. Our findings provide a foundation for understanding how firms may improve their perceived fairness. This increase in perceived fairness creates positive attributions, reduces negative customer experience perceptions and increases loyalty intentions.
Originality/value
Key contribution is the development and validation of a conceptual model explaining the linkages between firm customization and unfairness perceptions, firm customization and customer loyalty intentions and the moderating role of trust between these relationships. This study extends the understanding of how customization practices impact unfairness perceptions and, subsequently, influence consumers’ perceptions, intentions and behavior.
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Christina Sichtmann, Klaus Schoefer, Markus Blut and Charles Jurgen Kemp
This paper aims to provide an empirical investigation into extension category effects on service brand extensions, both to other services (service–service extensions) and to…
Abstract
Purpose
This paper aims to provide an empirical investigation into extension category effects on service brand extensions, both to other services (service–service extensions) and to products (service–product extensions), and the extension category’s influence on brand/consumer-level success drivers, as well as the perceived quality of the extension.
Design/methodology/approach
This study included an empirical testing of a conceptual framework using a hierarchical linear modeling approach and testing of hypotheses with a multilevel regression analysis. The data set consisted of 216 respondents reporting on both product and service extensions. Data were collected on three levels, namely, consumer level, parent brand level and extension level.
Findings
The findings indicate a general and consistent extension category-dependent effect that moderates the importance of brand extension success drivers. The influence of parent brand reliance and perceived parent brand quality were found to have stronger effects, whereas parent brand conviction was weaker in the context of service-to-service extensions.
Research limitations/implications
The study focuses on two brands with four extensions. Further research could replicate the study with a broader range of brands and extensions.
Practical implications
The study provides guidance to service managers to enhance consumers’ extension evaluations through better-positioned communication efforts when extending to different categories.
Originality/value
The study is one of the first empirical investigations into category-extension effects and its moderating role regarding brand and consumer level success drivers. Sparse research has been dedicated to a real-world occurrence of services extending between extension categories; this study thus furthers service brand research in terms of brand management decisions.