This article aims to extend the price‐quality trade‐off framework to derive new results for differential pricing strategies for brands in different brand tiers. The results are…
Abstract
Purpose
This article aims to extend the price‐quality trade‐off framework to derive new results for differential pricing strategies for brands in different brand tiers. The results are demonstrated for different market configurations.
Design/methodology/approach
A conceptual framework based on the quality‐price trade‐off from existing literature is used to analytically derive research hypotheses regarding pricing strategies. The results are demonstrated empirically by extending previously published results.
Findings
The study reveals that optimal pricing strategies are dependent on the tier to which the brands belong. Promotional pricing is better for high‐tier brands, while everyday low price is better for low‐tier brands. Similarly, deep and infrequent price promotions are better for high‐tier brands, while shallow and frequent promotions are better for low‐tier brands.
Practical implications
The findings offer some important implications of the brand‐tier competition framework for determining optimal pricing strategies and can inform pricing strategies for brands in different tiers.
Originality/value
Asymmetric inter‐tier competition is demonstrated for different market configurations, and the framework is used to derive optimal pricing strategy implications for brands in different tiers.
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Narasimhulu K, Meena Abarna KT and Sivakumar B
The purpose of the paper is to study multiple viewpoints which are required to access the more informative similarity features among the tweets documents, which is useful for…
Abstract
Purpose
The purpose of the paper is to study multiple viewpoints which are required to access the more informative similarity features among the tweets documents, which is useful for achieving the robust tweets data clustering results.
Design/methodology/approach
Let “N” be the number of tweets documents for the topics extraction. Unwanted texts, punctuations and other symbols are removed, tokenization and stemming operations are performed in the initial tweets pre-processing step. Bag-of-features are determined for the tweets; later tweets are modelled with the obtained bag-of-features during the process of topics extraction. Approximation of topics features are extracted for every tweet document. These set of topics features of N documents are treated as multi-viewpoints. The key idea of the proposed work is to use multi-viewpoints in the similarity features computation. The following figure illustrates multi-viewpoints based cosine similarity computation of the five tweets documents (here N = 5) and corresponding documents are defined in projected space with five viewpoints, say, v1,v2, v3, v4, and v5. For example, similarity features between two documents (viewpoints v1, and v2) are computed concerning the other three multi-viewpoints (v3, v4, and v5), unlike a single viewpoint in traditional cosine metric.
Findings
Healthcare problems with tweets data. Topic models play a crucial role in the classification of health-related tweets with finding topics (or health clusters) instead of finding term frequency and inverse document frequency (TF–IDF) for unlabelled tweets.
Originality/value
Topic models play a crucial role in the classification of health-related tweets with finding topics (or health clusters) instead of finding TF-IDF for unlabelled tweets.
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The purpose of this research is to review empirical research on customer involvement in innovation and identify future research directions that can better connect this research…
Abstract
Purpose
The purpose of this research is to review empirical research on customer involvement in innovation and identify future research directions that can better connect this research with marketing strategy literatures and offer opportunities for further theoretical development.
Methodology/approach
We conduct a review of empirical articles published in eight leading marketing and innovation journals between 2001 and 2017.
Findings
The review shows that the literature on customer involvement in innovation is highly diverse and fragmented, lacking a common understanding of what constitutes customer involvement in innovation and its theoretical underpinnings. There exists a multitude of conceptualizations of customer involvement in innovation, which limits effective accumulation of domain knowledge. A large number of studies have taken the customer’s perspective to examine their motivation to participate and ability to contribute, whereas less research has been done from the firm’s perspective to understand how firms may effectively manage the well-recognized challenges of customer involvement as well as the implications of customer involvement for long-term innovation strategy and overall performance. Based on the review, we offer recommendations for future research.
Practical implications
We identify important questions for future research that are highly relevant for the practice of customer involvement in innovation.
Originality/value
We provide a systematic review of the rapidly growing empirical research on customer involvement in innovation. We evaluate key points of differences in the literature and offer a synthesis that helps identify opportunities for future research.
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During the last decade, we have witnessed a steady stream of research focusing on the nature of competition between different brand tiers (e.g. high‐priced brands vs low‐priced…
Abstract
During the last decade, we have witnessed a steady stream of research focusing on the nature of competition between different brand tiers (e.g. high‐priced brands vs low‐priced brands, national brands vs store label brands). Several interesting research findings have been reported in the literature. This article highlights the methodological issues associated with the research on price‐tier competition and delineates the connection between methodological issues and managerial implications of the substantive research findings.
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Yves Van Vaerenbergh, Annelies Costers and Anja Van den Broeck
The optimal level of customer participation is an important factor in service design. However, researchers know little about the impact of customer participation for their…
Abstract
Purpose
The optimal level of customer participation is an important factor in service design. However, researchers know little about the impact of customer participation for their willingness to pay and hence organizations’ financial outcomes. This paper examines the impact of customer participation in a pay-what-you-want (PWYW) pricing system, allowing customers to pay any price they want for a product or service.
Design/methodology/approach
This paper reports the results of three experiments, in which the authors manipulated the level of customer participation (Study 1: Low versus high, Study 2: Medium versus high, Study 3: Low versus medium versus high) and measured customers' PWYW payments (Studies 1–3), customer satisfaction (Studies 1–3), perceived equity (Study 3) and perceived enjoyment (Study 3). Studies 1 and 3 were scenario-based experiments, while study 2 was a field experiment. Study 3 was preregistered.
Findings
The results support a direct effect of customer participation in service production on customer PWYW payments, yet only when comparing low to high levels of customer participation. High levels of customer participation lead to a decrease in perceived equity and an increase in perceived enjoyment, which in turn spilled over to customer PWYW payments through customer satisfaction.
Originality/value
This research provides causal evidence at the individual level of analysis for the relationship between customer participation in service production and financial results. The paper also provides insights into its underlying mechanisms.
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The nature of competition between different tiers (e.g. high‐tier vs low‐tier brands) has become an important research domain for academic researchers and marketing managers…
Abstract
The nature of competition between different tiers (e.g. high‐tier vs low‐tier brands) has become an important research domain for academic researchers and marketing managers. Although research on inter‐tier competition is growing at an increasing rate, there has not been a comprehensive attempt to summarize the research in this stream. The objective of this article is to synthesize the research on inter‐tier competition, extract the key findings, discuss managerial implications, and offer future research directions.
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Khadija Ali Vakeel, K. Sivakumar, K.R. Jayasimha and Shubhamoy Dey
The purpose of this paper is to focus on failures in online flash sales (OFS) and to explore why consumers participate in an OFS even after experiencing service failure. It also…
Abstract
Purpose
The purpose of this paper is to focus on failures in online flash sales (OFS) and to explore why consumers participate in an OFS even after experiencing service failure. It also examines the role of deal proneness, attribution, and emotions.
Design/methodology/approach
Using a mixed method approach to gain insights into this relatively unexplored phenomenon of OFS, this research uses netnography followed by a survey study.
Findings
The findings show that deal-prone customers tend to ignore service failures during OFS and re-participate in the future. In the context of OFS, failures attributed to internal locus of attribution (LOA) also have a negative effect on re-participation compared with failures attributed to external LOA. Furthermore, there is a three-way interaction among deal proneness, LOA, and past emotions. The results show that negative past emotions further exacerbate the impact of attribution on the link between deal proneness and re-participation.
Originality/value
In contrast with prior research, the paper shows that consumers participate even after service failure. The proposed difference is between customers who experience different LOA and past emotions offers insights into their behavior after service failure in a new context of an online/electronic commerce event – flash sales. This paper specifically explores the role of internal LOA and finds that it has a more negative impact than external LOA on re-participation.
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Genessa M. Fratto, Michelle R. Jones and Nancy L. Cassill
The aim of this paper is to investigate competitive pricing strategies of apparel brands and retailers.
Abstract
Purpose
The aim of this paper is to investigate competitive pricing strategies of apparel brands and retailers.
Design/methodology/approach
The paper begins with a broad discussion of competition by examining Porter's five forces model, and narrows by examining price competition within price tiers in the retail apparel industry according to store format and brands. Included are case studies of apparel retailers and brands incorporating concepts of pricing strategies, brand positioning, and price competition, with a focus on retail channel relationships. The paper analyzes the impact of price competition on apparel retailers and brands, and further examines price tiers as a competitive strategy.
Findings
The study reveals that the concept of price tiers is applicable to apparel retailers and brands. Price tiering is a vehicle for market positioning for the retail apparel industry. Retailers are enacting a price tier strategy by branding their retail store formats or engaging store brands as a vehicle of differentiation for a tier. Retailers and brands can be successful with a price tier strategy, unless they fail to differentiate between tiers on factors other than on price alone.
Research limitations/implications
The lack of relevant price competition literature, relating to the retailer apparel industry, forced the exploration of price competition literature from grocery and automotive sectors.
Originality/value
The paper provides useful information on the impact of price competition on apparel retailers and brands, and also price tiers as a competitive strategy.
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Anna-Sophie Oertzen, Gaby Odekerken-Schröder, Saara A. Brax and Birgit Mager
The purpose of this paper is to assess, clarify and consolidate the terminology around the co-creation of services, establish its forms and identify its outcomes, to resolve the…
Abstract
Purpose
The purpose of this paper is to assess, clarify and consolidate the terminology around the co-creation of services, establish its forms and identify its outcomes, to resolve the conceptual pluralism in service co-creation literature.
Design/methodology/approach
A focused literature review screened the articles published in five major service research journals to determine relevant contributions on the concept of co-creation of services. Then, a thematic analysis identifies the forms, themes and outcomes of co-creating services in the set of 80 qualifying articles.
Findings
The study reduces conceptual pluralism by establishing different forms of co-creating services and developing an explicit definition of co-creation in services. The authors develop an integrative framework that recognizes involvement, engagement and participation as prerequisites for co-creation. Relating to the different phases of the service process, the specific co-creation forms of co-ideation, co-valuation, co-design, co-testing and co-launching are classified as regenerative co-creation, while the specific co-creation forms of co-production and co-consumption are recognized as operative co-creation. Both beneficial and counterproductive outcomes of co-creation are identified and arranged into a typology.
Research limitations/implications
The integrative framework illustrates that service providers and customers are involved, engaged and participate in co-creating services, which manifests in specific forms of co-creation; they attain beneficial and counterproductive outcomes (personal, social, hedonic, cognitive, economic and pragmatic); and are influenced by a contextual multi-actor network.
Practical implications
Co-creation in services is actionable; the typology of outcomes suggests service managers ways to motivate customers and employees to participate in co-creating services.
Originality/value
This paper defines and establishes the conceptual forms of co-creating services and the identified outcomes, and develops an integrative framework of co-creation in services.