Theo M.M. Verhallen and W. Fred van Raaij
Many psychological models of consumer behaviour use the construct of attitude, whereas in economic models behaviour is determined by costs and benefits under budget constraints…
Abstract
Many psychological models of consumer behaviour use the construct of attitude, whereas in economic models behaviour is determined by costs and benefits under budget constraints. In this article, a behavioural cost‐benefit approach to consumer behaviour is proposed. Behavioural costs include time, physical and psychic costs of initiating, maintaining and changing behaviour. A behavioural model is proposed, in which cost‐benefit trade‐offs of behaviours play a central role. Some marketing applications on the evaluation of products, on the prediction of behavioural intentions and on shopping behaviour are discussed.
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Hester van Herk, Ype H. Poortinga and Theo M.M. Verhallen
The paper presents a framework for establishing equivalence of international marketing data. The framework is meant to reduce confusion about equivalence issues, and guide the…
Abstract
Purpose
The paper presents a framework for establishing equivalence of international marketing data. The framework is meant to reduce confusion about equivalence issues, and guide the design of international studies and data analysis.
Design/methodology/approach
A short overview is given of the two main approaches to equivalence in the literature. These are integrated and used to distinguish sources of cultural bias in the various stages of the research process.
Findings
The highest levels of equivalence most often established are construct equivalence and partial measurement equivalence, implying that distributions of scores obtained in various countries cannot be interpreted at face value. To understand cross‐cultural differences better, researchers should investigate why higher levels of equivalence could not be established; this can be done best by including elements from both the conceptual and the measurement approach to equivalence.
Practical implications
This study can help marketing managers to establish the extent to which consumer perceptions can be considered equal across countries. Moreover, it helps researchers to determine causes of unequivalence and relate these to concrete stages in the research process.
Originality/value
Integration of the two main approaches to equivalence will lead to a better understanding of the validity of cross‐cultural differences and similarities. This should lead to improved decision making in international marketing.
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Theo M.M. Verhallen, Harriette Greve and Ruud Th. Frambach
Notes that the literature on personal selling and advising on services stresses the importance of analysing the actual client‐adviser interaction process. Explores this process of…
Abstract
Notes that the literature on personal selling and advising on services stresses the importance of analysing the actual client‐adviser interaction process. Explores this process of interaction in a mortgage setting by observing 42 conversations between advisers and 26 clients. The exact content and characteristics of interactions were recorded and coded using a category system based on consultative selling. The results show vast differences between advisers in their selling approach. In most cases, the sequence of problem‐solving phases that advisers employed differed from those of the ideal model. Advisers generally did not probe for the wishes of clients but instead started by presenting alternative product solutions, a typical feature of a hard selling approach. Demonstrates the effectiveness of direct observation for the study of client‐server interaction in financial services.
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W. Fred van Raaij and Theo M.M. Verhallen
Proposes domain‐specific market segmentation as a promising approach ascompared with segmentation based on general or on brand‐specificvariables. Treats product differentiation…
Abstract
Proposes domain‐specific market segmentation as a promising approach as compared with segmentation based on general or on brand‐specific variables. Treats product differentiation and positioning as the counterpart of market segmentation. The link between market segmentation, on the one hand, and product differentiation, on the other hand, is the product benefit. The product benefit is the interaction of the product and the consumer.
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In the mainstream normative pricing literature, value assessment is virtually non-existent. Although the resource-based literature recognizes that pricing is a competence…
Abstract
Purpose
In the mainstream normative pricing literature, value assessment is virtually non-existent. Although the resource-based literature recognizes that pricing is a competence, value-informed pricing practices are still weakly grounded in theory. The purpose of this paper is to strengthen the theoretical grounds of such pricing practices.
Design/methodology/approach
The paper applies the emerging service-dominant logic of marketing to pricing. More specifically, it apples the ten foundational premises of service-dominant logic to pricing and it places pricing in the frameworks of one of the major building blocks of service-dominant logic, namely the resource-advantage theory of competition.
Findings
From a service-dominant perspective, price is the reward for the application of specialized knowledge and skills. Pricing is an operant resource, or competence, that assesses customer value, applies it in multi-dimensional price propositions, and implements it in processes of co-creating prices with customers. Value-informed pricing is the central pricing practice within such competences.
Practical implications
Prices vary among others between “good” and “bad”, firms generate competitive advantage not only through value creation, but also through pricing. Learning is key to develop pricing competences.
Originality/value
This paper is the first to ground value-informed pricing at high levels of abstraction in general marketing theory.