European Journal of Marketing

Differentiation and silver medal winner effects : Table of Contents

Albert Caruana, Leyland F. Pitt, Pierre Berthon, Michael Page — Sat Nov 07 08:00:18 GMT 2009

Abstract:
Purpose – The aim of this paper is to consider business schools and to elicit whether, in seeking differentiation, rankings are more desirable than brand personality and whether silver medal winner effects exist in the perceptions of brand personalities. Design/methodology/approach – Literature on reputation, identity, differentiation, brand personality and its measurement is reviewed. In seeking to determine the role of rankings and the presence of silver medal effects two survey data collections among business schools are conducted using the identified brand personality instrument. Findings – Results highlight the importance of a distinctive differentiation positioning and show that reputation reflected in published rankings are able to provide counterfactuals that can influence consumer emotions and help establish preferences. Silver medal effects are found to play an important role. Originality/value – These results emphasise the point that it is simply not enough to be ranked highly. What seems to be more critical is to be perceived as different. It appears that brand personality rather than reputation in terms of ranking is more strongly related to customers' expressed preferences. The results also illustrate the need to understand and deal with the challenge faced by marketing managers when silver medal effects are present.

Brand extension strategies: perceived fit, brand type, and culture influences : Table of Contents

Isabel Buil, Leslie de Chernatony, Leif E. Hem — Sat Nov 07 08:00:18 GMT 2009

Abstract:
Purpose – The aim of this paper is to examine the impact of perceived fit, brand type and country's culture on the consumers' attitude towards brand extensions and on the parent brand equity. Design/methodology/approach – Data were collected in three European countries: Spain, UK, and Norway. A series of analyses of variance (ANOVA) were conducted to test the hypotheses. Findings – Brand extensions with high fit receive more favourable consumer evaluations and decrease the negative feedback effects of extensions on parent brand equity. Results also reveal that parent brand equity dilution is higher when the brand used to launch the extension has high equity. Finally, findings indicate different consumers' responses to extensions and effects on parent brand equity across countries. Research limitations/implications – Important directions for future research would be to include other countries and carry out a more in-depth analysis to understand the effect of culture. Practical implications – Managers should launch extensions with high perceived fit. In addition, greater effort is needed to extend high equity brands, due to their greater dilution. Finally, managers need to understand that consumer evaluations and feedback effects of the same brand extensions can vary due to cultural differences between consumers. Therefore, standardised brand extension strategies should be carefully considered. Originality/value – The study focuses, not only on consumer evaluations of extensions, but also on the effects of extensions on the parent brand equity. Furthermore, this paper is one of the first to empirically examine and show that consumer evaluations of extensions and feedback effects on parent brand equity differ across countries.

Cross-national segmentation: An application to the NAFTA airline passenger market : Table of Contents

Edward R. Bruning, Michael Y. Hu, Wei (Andrew) Hao — Sat Nov 07 08:00:18 GMT 2009

Abstract:
Purpose – The aim of this paper is to propose an approach to international market segmentation that identifies meaningful cross-national consumer segments, which focuses on airline passengers in the NAFTA market. Design/methodology/approach – A conjoint analysis is used to evaluate consumers' preferences for six flight attributes: price, in-flight service, number of stops before destination, on-time performance, frequent flyer programme, and country of airline. A cluster analysis based on the relative importance scores of each of the six flights attributes then identifies five segments that prioritize similar product attributes within each country. Findings – A representative sample of 4,787 airline passengers from the three countries reveal that price is the most important attribute for consumers from the USA and Canada, while on-time performance is the most important attribute for Mexican consumers. A cluster analysis identifies five segments that prioritize similar product attributes within each country. It is also found that there are five cross-national consumer segments in the NAFTA market that are homogeneous in terms of consumer preferences but heterogeneous in terms of relative group size and demographic variables. Research limitations/implications – The study is based on a purposive sample, which limits the ability to generalize to the whole population with any known degree of precision. Practical implications – The research produces practical operational information on each segment that is translatable into strategy, specifically in terms of positioning, promotion, and targeting of the airline service. Originality/value – The paper sheds light on the nature of cross-national segmentation in the NAFTA air passengers market and the resulting cross-national segmentation will be highly relevant for international marketing management.

Examining the role of international entrepreneurship, innovation and international market performance in SME internationalisation : Table of Contents

Aron O'Cass, Jay Weerawardena — Sat Nov 07 08:00:18 GMT 2009

Abstract:
Purpose – The current study aims to examine the role of international entrepreneurship and innovation in small to medium-sized enterprise (SME) internationalisation, also touching on the role of the firm size as a proxy of resources in the SME internationalisation process. The study seeks to look at these issues in the context of manufacturing firms, arguing that entrepreneurial SMEs pursuing international market entry undertake organisational innovation, which in turn enables such firms to achieve higher marketplace performance. Design/methodology/approach – The paper was based on the development and administration of a self-completed survey of 302 managers. Findings – The results suggest that international SMEs differ from non-international SMEs in terms of international entrepreneurship, organisational innovation intensity and firm size. Research limitations/implications – The cross-sectional research design and the regional nature of the sampled firms may limit the generalisability of the findings. The manufacturing sectors that were studied provided an appropriate setting, although research in other industries is required. Practical implications – The findings provide SME managers with a feasible path to internationalisation, in that firms striving towards internationalisation must undertake organisational innovation. Innovative firms are better equipped to exploit international market opportunities and perform better in such markets. Originality/value – In spite of the central role assigned to innovation in a firm's competitive strategy, the literature that examines the role of innovation in SME internationalisation has been limited. Addressing this research gap the paper examines the role of international entrepreneurship and innovation in SME internationalisation.

Internal market orientation and its influence on organisational performance : Table of Contents

Vicent Tortosa, Miguel A. Moliner, Javier Sánchez — Sat Nov 07 08:00:18 GMT 2009

Abstract:
Purpose – The purpose of this paper is to analyse the influence that internal marketing, represented by internal market orientation (IMO), might have on the internal aspects (satisfaction of contact personnel) and external aspects (customer satisfaction and perceived quality of service) of organisational performance. Design/methodology/approach – Interviews were carried out with all the cashiers of the 16 branches of a small, local credit institution, and with 160 customers who normally operate with this bank. Findings – The results show that employee orientation or internal market orientation, through the dimension informal generation of information, influences the satisfaction of contact personnel, the quality of service perceived by the customer and, through the latter, the customer's satisfaction. It also corroborates the influence exerted by the contact personnel's satisfaction on the perception of quality and on the satisfaction of the customer receiving the service. Research limitations/implications – The main limitation of the study is that it analyses a single financial entity, with the characteristics and behaviours that the latter has in its relationship with its employees. Practical implications – One of the key elements for achieving quality in the service offered by the contact personnel is to achieve their satisfaction. For this, it is necessary for firms to adopt an employee or internal marketing orientation so that the contact personnel come to perceive fair treatment and special attention by managers towards them and their work. Originality/value – The paper verifies the validity and reliability of the internal market orientation construct (IMO) as a scale of measurement of the internal marketing concept in a different business sector and with a different methodology from those dealt with in the literature. It also demonstrates empirically the influence of IMO on variables internal to the organisation (satisfaction of contact personnel) and external to it (customer's satisfaction and the quality he/she perceives).

Examining the academic/commercial divide in marketing research : Table of Contents

Paul R. Baines, Ross Brennan, Mark Gill, Roger Mortimore — Sat Nov 07 08:00:18 GMT 2009

Abstract:
Purpose – The purpose of this paper is to comment on the differences in perceptions that exist between academic and professional marketing researchers, as creators of new marketing knowledge, and explore how academics and practitioners can work together better on areas of mutual interest or separately on areas where their interests do not coincide. Design/methodology/approach – The approach is via two focus groups, one with researchers in marketing from universities and one with commercial market researchers, and via online surveys of the same target groups, with 638 respondents in all. Findings – The study indicates that the two sample groups have relatively congruent views about the advantages and disadvantages of each other's approach to research but both groups believe they could do more to make their research more comprehensible and accessible to each other. Research limitations/implications – The empirical study was conducted in the UK only, and the response rate from the university marketing research community was disappointingly low. These represent limitations on the generalisability of the findings. Practical implications – It is argued that marketing research can be undertaken separately by academics and practitioner researchers but that joint working between academic and commercial marketing researchers represents another dimension to marketing research which could be facilitated by the creation of joint initiatives, including industry-inspired academic-practitioner research projects and the development of government-funded academic-practitioner research projects, building on both groups' unique sets of skills. Originality/value – The paper reports on the outcome of an empirical study that has implications for the conduct of marketing research in universities and market research agencies.

Can marketing practice keep up with Europe's ageing population? : Table of Contents

Nicholas J. Thompson, Keith E. Thompson — Sat Nov 07 08:00:18 GMT 2009

Abstract:
Purpose – The purpose of this paper is to draw the attention of managers and academics to the extent of demographic changes now occurring in the European Union, specifically the ongoing change from a young consumer base to one in which most adult consumers are aged over 50. It seeks to explain the nature of the challenge and highlight the need for further research. Design/methodology/approach – Both academic and practitioner sources are synthesised in order to identify and describe the issues, and explore the actions that could be taken to adapt to and profit from the changing demographic environment. Findings – Current marketing practice evolved against the background of the post-war baby boom, a demographic aberration which resulted in an exceptional era during which consumer markets were dominated by youth, and marketing practice by advertising and other promotional activity. The paper also argues that the subsequent ageing of the consumer base will require businesses to place more emphasis on the customer-centric model of marketing generally espoused by management scientists. Practical implications – The paper identifies a major shift in the demographic base of consumer markets, outlines the implications for marketing practice and proposes ways in which businesses can adapt. Originality/value – The overwhelming majority of discussion on, and research into, the phenomenon of population ageing and its impact on markets originates from the USA, despite the fact that Europe faces a far greater challenge. The paper alerts both academics and practitioners to the nature and scale of the demographic change occurring in the European Union, discusses appropriate corporate responses and calls for further research into the neglected area of older consumers.

Market orientation and enterprise policy : Table of Contents

Don O'Sullivan, Patrick Butler — Sat Nov 07 08:00:18 GMT 2009

Abstract:
Purpose – The purpose of this paper is to examine the merit of enterprise policies that seek to enhance market orientation as a driver of firm performance. Design/methodology/approach – The approach takes the form of empirical research utilising the MKTOR survey instrument, administered to senior marketing managers in high-value-added sectors in Ireland; and both subjective and lagged objective measures of firm performance. Findings – Findings support international context-specific research. Market orientation is not found to be directly associated with firm performance in high-value-added firms in the Irish economy. Research limitations/implications – Research directions should include the evolving understanding of market orientation, and the exploration of what alternative orientations lead to improved performance in different contexts. Practical implications – For public policy, a re-examination of the conceptualisation of, and support for, market orientation is warranted. Originality/value – The paper presents a new contribution to understanding the merit of market orientation in enterprise policy in developed economies.

Dynamic capabilities: the missing link in CRM investments : Table of Contents

Stan Maklan, Simon Knox — Sat Nov 07 08:00:18 GMT 2009

Abstract:
Purpose – The purpose of this paper is to illustrate the practical application of dynamic capabilities theory to improve investment decisions in customer relationship management (CRM). Design/methodology/approach – Action research (AR) allows managers to raise the tacit knowledge of their dynamic capabilities to a level where they can be identified and developed. A framework and a process for managing dynamic capabilities in marketing are presented. Findings – The findings relate to the nature of dynamic capabilities in marketing and how they are managed. Practical implications – Marketing managers can improve the return on investments in CRM. Originality/value – The paper presents a method for applying dynamic capabilities drawn from the resource-based view (RBV) to practical marketing problems.

Female role stereotypes in print advertising: Identifying associations with magazine and product categories : Table of Contents

Emmanuella Plakoyiannaki, Yorgos Zotos — Sat Nov 07 08:00:18 GMT 2009

Abstract:
Purpose – The purpose of this study is three-fold: to provide recent evidence in the UK on the frequency of appearance of female role portrayals in print advertisements; to compare female role stereotypes across magazine types; and to explore the interface between female role stereotypes and product categories. Design/methodology/approach – An integrative approach to content analysis was used in order to analyze advertising communication in print media. The sample consisted of n=3,830 advertisements published in ten high circulation UK magazines. Findings – The study indicates that women in UK magazine advertisements are mainly portrayed in decorative roles; and that female role stereotypes vary significantly across magazine types. The findings also suggest that there is an association between product categories and female role stereotypes. Practical implications – The study highlights the need for the advertising industry in the UK to adjust its communication practices to the changing role of women in society. Originality/value – The study extends research in the area of female role stereotypes in print advertising by considering the frequency of female role portrayals across different magazine types; and investigating the association between product categories and female role stereotypes.

Is a “star” worth a thousand words?: The interplay between product-review texts and rating valences : Table of Contents

Alex S.L. Tsang, Gerard Prendergast — Sat Nov 07 08:00:18 GMT 2009

Abstract:
Purpose – The purpose of this study is to investigate how the interplay of valences (positive or negative) between review texts and ratings affects consumers' reactions to the reviews and the product being assessed. Design/methodology/approach – An experimental design with hypothetical movie reviews was used to investigate how inconsistent text-rating reviews affect people's intention to consume a particular product and their perceptions of the review itself. Findings – It was found that text valences (positive or negative) significantly influence how subjects perceive the interestingness and trustworthiness of reviews. The texts also have an influence on the subjects' movie-attendance intention compatible with their valence. In addition, a cross-over interaction was found between texts and ratings that affects a review's trustworthiness. Research limitations/implications – The study enriches understanding of consumer decision making when different formats of information about the same object are presented. Practical implications – Marketers can benefit by incorporating review texts and rating valences to enhance the prediction accuracy of their products' sales performances. Review publishers can get a better understanding of how to present their reviews to enhance their perceived interestingness and trustworthiness. Originality/value – Product reviews are commonly found in the mass media. These reviews use ratings as evaluative summaries of the texts. However, little research has been conducted regarding the communication effects that the ratings have in relation to the texts. The study seeks to fill this gap.

High quality and low cost: the lean service centre : Table of Contents

Niall Piercy, Nick Rich — Sat Nov 07 08:00:18 GMT 2009

Abstract:
Purpose – There are two objectives of this paper: first, to examine the application of lean production improvement techniques to the pure-service context; and, second, to evaluate the contribution of lean production techniques to services marketing improvement. Design/methodology/approach – Three case companies from the UK financial services sector are tracked through the process of lean improvement. Analysis of management change of a common process within each company forms the basis of the investigation. Findings – Research findings highlight that, through the adoption of lean service tools, service call centres can serve the traditionally competing priorities both of operational cost reduction and of increased customer service quality. The lean approach is validated in the service context and proposed as a valuable addition to traditional service marketing approaches to services improvement. Practical implications – The techniques described are easily replicable by academics, practitioners and managers and can be applied to a wide range of service centres or service businesses. In the contemporary marketplace, the difficulty of delivering quality service at any costs suggests that there is a great opportunity for the business that can deliver better service at a reduced cost of operation. Originality/value – Lean transformation in the manufacturing sector is well established. However, the use of lean improvement tools to improve the quality of service delivery within the service sector is relatively new, with limited understanding of approaches and benefits in the academic or managerial arenas. In addition, coverage of lean tools is still rare in the marketing literature.

Niche firms and marketing strategy: An exploratory study of internationally oriented niche firms : Table of Contents

Kjell Toften, Trond Hammervoll — Sat Nov 07 08:00:18 GMT 2009

Abstract:
Purpose – This paper aims to explore how internationally oriented niche firms define and choose their markets and customers and how they position their products, and thereby add to the limited research knowledge regarding niche marketing. Design/methodology/approach – The paper presents exploratory research based on structured in-depth interviews of key informants in five firms. Findings – Niche firms do not seem to follow the STP-process. The selection of customers and markets is the result of tradition, chance or the firm's production philosophy, and the firms make few attempts to position their products. The firms rely on resource-based advantages, high-quality products and personal relationships when competing in the market. Research limitations/implications – The selected methodology makes these results alone unfit for generalising to a larger population. Improved theoretical models are needed for generating more knowledge about niche firms and their efforts in crafting marketing strategies, possibly by extending relationship marketing theory. Practical implications – A niche firm's marketing strategy should be based on a customer-valued competitive advantage and differentiation should be applied in terms of both intangible and actual use criteria. Niche firms should strive for long-term, personal relationships and customer commitment. Also, there seems to be some room for following one's own personal convictions and ideas when crafting a marketing strategy, even though this approach certainly is not in line with the structured marketing strategy process suggested in textbooks. Originality/value – This study offers exploratory findings on how export-oriented niche firms define and choose their markets and customers, and how they position their products. The standard STP-process as proposed in general textbooks is not appropriate for international niche firms.

Advertising and promotions budgeting and the role of risk : Table of Contents

Douglas West, Gerard P. Prendergast — Sat Nov 07 08:00:18 GMT 2009

Abstract:
Purpose – This study aims to look at the conventional wisdom with regards to budgeting methods, processes, and sophistication in light of recent macro work relating budgetary approaches to risk-taking. Design/methodology/approach – Based on a survey of UK advertisers and personal interviews, current advertising and promotions budgeting methods and processes are summarized. A series of hypotheses relating risk, process and experience to advertising and promotions budgeting sophistication were tested. Findings – UK advertisers were found to use a variety of budgeting methods (two methods on average per company). Judgmental methods dominate, especially the “what is affordable” method, but at the same time more sophisticated methods like objective and task and measurement techniques (in particular return on investment) were solidly represented. The relationship between budgeting sophistication and risk was investigated, the premise being that risk and budgeting sophistication are inversely related, as well as budgetary processes and marketing experience. Research limitations/implications – Considerable insight is provided into the methods and processes being used. It is concluded that the explanation as to why firms use sophisticated or unsophisticated methods for setting their advertising and promotion budgets is largely related to organizational culture. Originality/value – Just over 1.5 percent of the UK's gross domestic product is spent on advertising and promotions (£19 billion). The study suggested that the primary reason for the lack of consensus on budgetary sophistication is that stakeholders involved with budgeting are far less concerned with specific methods than dealing with cultural norms, personalities, access to supporting data and policies and practices.