Purpose — The purpose of this paper is to develop a comprehensive model that combines brand knowledge and brand relationship perspectives on brands and shows how knowledge and relationships affect current and future purchases.
Design/methodology/approach — The paper uses structural equation modeling to test the significance of the overall model and the specified paths.
Theoretical work on the pricing of information reveals that competition between independent information sellers can result in prices that are negatively related to the quality or reliability of the information. The theory argues that when information products are unreliable (low quality), independent products become complements, and competition can increase prices. The goal of this study is to test empirically the theory's counterintuitive predictions with the help of an experimental market based on a business simulation.
Bias in the market for news is well-documented. Recent research in economics explains the phenomenon by assuming that consumers want to read (watch) news that is consistent with their tastes or prior beliefs rather than the truth. The present paper builds on this idea but recognizes that (i) besides "biased" consumers, there are also "conscientious" consumers whose sole interest is in discovering the truth, and (ii) consistent with reality, media bias is constrained by the truth. These two factors were expected to limit media bias in a competitive setting. Our results reveal the opposite.
The Tuscan Lifestyles case (Mason, 2003) offers a simple twist on the standard view of how to value a newly acquired customer, highlighting how standard retention-based approaches to the calculation of expected customer lifetime value (CLV) are not applicable in a noncontractual setting.
American manufacturers often employ specialized agencies to create and produce advertising campaigns. This paper focuses on a critical juncture in the creation of American advertising: the meeting between the manufacturer (client) and the advertising agency, where advertising ideas are presented, discussed, and selected. Although the participants enter these meetings with the common goal of reaching agreement on the ideas that will be advanced to the next step in the creative development process, the attendees have additional, sometimes conflicting, professional and personal objectives.
This paper uses an analytical model to examine when it makes sense to provide incentives to innovators to adopt a new product. The model allows for separate segments of innovators and imitators, each of which follows a Bass-type diffusion process. Interestingly "seeding" the market is optimal for a limited range of situations and these do not appear to include those where there is a downturn in sales (chasm) as sales move from the first to the second segment.
New product development is integral to marketing. There are questions, however, regarding the extent to which new products are good and for whom they are good. While benefits may be obvious for manufacturers, sellers, and users of any particular product, stakeholders beyond the transaction and direct usage of said product may receive no benefits and perhaps may be harmed by new products.
Event sponsors often do not receive proper credit for their efforts. This issue was examined in a field study involving over 300 baseball fans attending minor league games during the summer season. Signal detection analyses reveal that, even among such sports fans, the ability to correctly discriminate actual official sponsors of the home team from matched foils, although above chance, was rather poor. Consistent with recent laboratory findings, sponsor identification responses were further found to be heavily influenced by the mere plausibility of the brand as a potential sponsor.