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Article
Publication date: 1 February 2021

Ling Liang, Lin Tian, Jiaping Xie, Jianhong Xu and Weisi Zhang

The car-sharing market has entered the mature stage, and consumers' demand shows a diversified increasing trend. This paper considers two modes of operation and two…

Abstract

Purpose

The car-sharing market has entered the mature stage, and consumers' demand shows a diversified increasing trend. This paper considers two modes of operation and two pricing strategies, which are business-to-consumer and consumer-to-consumer modes, market pricing and platform pricing. Under these conditions, the platform's revenue-sharing ratio will be different. The purpose of this paper is to explore this research question, and seeks an optimal pricing mechanism that can achieve a win–win situation between platform and automobile manufacturer in the two market modes.

Design/methodology/approach

The authors design different profit functions for platform under the two contexts. Of course, the platform's function is constrained to the manufacturer's function. By introducing a revenue-sharing contract a Stackelberg game model dominated by the platform is established and the equilibrium solutions under the two pricing models are derived.

Findings

The study found that even if only market pricing is executed, the scale of the car-sharing market will continue to expand. As the car-sharing market becomes more saturated, platform pricing is better for the automobile manufacturer; in most cases, the platform prefers platform pricing, but when the number of private cars is relatively small, if the cost of car operation and maintenance for the automobile manufacturer is lower or the revenue-sharing ratio of private cars is high, then market pricing will be more favorable to the platform.

Practical implications

With the cross-border integration of car service platforms and the automobile manufacturing industry, the key to achieving win–win cooperation and sustainable development in the car-sharing market will converge on the question of how to design a suitable pricing mechanism and revenue-sharing method.

Originality/value

Authors have determined how a car-sharing platform achieves a win–win order pricing strategy with the manufacturer and private car owners, respectively. And authors combined the supply chain revenue-sharing contract with the car-sharing market to explore the application of the revenue-sharing contract in the sharing economy.

Details

Industrial Management & Data Systems, vol. 121 no. 3
Type: Research Article
ISSN: 0263-5577

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Article
Publication date: 1 June 1994

Roger D. Blackwell

Marketing institutions emerge and evolve in response to changes in themarketing environment. Describes such changes in one of North America′smost vital areas of marketing…

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7877

Abstract

Marketing institutions emerge and evolve in response to changes in the marketing environment. Describes such changes in one of North America′s most vital areas of marketing – automobiles. One of the institutions that have evolved in response to these changes is auto auctions. Understanding the changing role of auto auctions is not only important in the analysis of how auto manufacturers and retailers may survive the turbulent changes that characterize contemporary auto markets, but it also helps clarify the rapidly emerging practice of remarketing – and defines this process.

Details

Journal of Consumer Marketing, vol. 11 no. 2
Type: Research Article
ISSN: 0736-3761

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Article
Publication date: 1 June 2000

John S. Kiff

The European retail motor industry is currently facing an unprecedented number of major forces for change. For independent dealer businesses to survive, they must clearly…

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2292

Abstract

The European retail motor industry is currently facing an unprecedented number of major forces for change. For independent dealer businesses to survive, they must clearly demonstrate to consumers that they represent the best possible channel for the acquisition and maintenance of their motorisation needs. They must also demonstrate to manufacturers that they represent the best route to market for them. Proposes a way that dealers can not only survive but, in co‐operation with their manufacturers, prosper in the market of the future. Such an approach would comprise the removal of wasteful activity, the reduction of costs and prices, delivering greater customer value and improving customer retention. In short, true lean distribution. The concept centres on a “customer account manager”, who pro‐actively manages the consumer’s needs for after‐sales of all types, thereby managing demand and removing waste from the system. As a consequence of this demand management, he or she is able to monitor the consumer’s needs (and even his family’s needs) for a new or used replacement car, again removing waste. The approach enables the dealer to exchange ineffective, costly, direct marketing and advertising for value‐adding contacts from which the consumer and manufacturer directly benefit, thereby creating a virtuous circle.

Details

Marketing Intelligence & Planning, vol. 18 no. 3
Type: Research Article
ISSN: 0263-4503

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Article
Publication date: 1 March 1991

Nick Oliver and Richard Delbridge

The findings of a pilot study into contemporary developments in theUK car retailing sector are reported. Two trends were particularlyapparent: a mounting concern with the…

Abstract

The findings of a pilot study into contemporary developments in the UK car retailing sector are reported. Two trends were particularly apparent: a mounting concern with the quality of customer service and a rise in the number of multi‐franchise retail groups. Such groups appear to be more advanced than the volume manufacturers in their thinking about quality of service. Overall there was evidence of a limited shift in the nature of the relationship between the vehicle manufacturers and their retailers.

Details

International Journal of Retail & Distribution Management, vol. 19 no. 3
Type: Research Article
ISSN: 0959-0552

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Article
Publication date: 27 April 2010

Marc Fetscherin and Mark Toncar

The purpose of this paper is to offer a new perspective of country of origin effects on consumers' brand personality perceptions of domestic and imported automobiles. It…

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10123

Abstract

Purpose

The purpose of this paper is to offer a new perspective of country of origin effects on consumers' brand personality perceptions of domestic and imported automobiles. It aims to assess the perceived similarities and differences between automobiles from two countries with respect to the country of origin of the brand (COB) and the country of manufacturing (COM) of that same brand.

Design/methodology/approach

An experimental design was used to investigate developed country consumers' brand personality perceptions of three cars: a domestic car; a car manufactured in a developing country by a developing country manufacturer; and a car from a developing country manufacturer that is manufactured in the developed country. Data were collected in the USA and therefore a US car was used as the developed country car. China was selected as the developing country of origin. A structured questionnaire was used to collect primary data.

Findings

Multivariate analysis of variance indicates that consumers' brand personality perceptions varied according to the country of origin (COB) of the brand and the country of manufacture (COM) of the brand. The COM of a car influenced the perceived brand personality of the car more than the COB. In some respects the Chinese car made in the USA was perceived to have a stronger brand personality than the US car made in China. This suggests that for cars the COM exerts a greater influence on the perceived personality of a brand than the COB.

Research limitations/implications

Future research should take a larger respondent pool, respondents from other countries, other automotive manufacturers as well as assess the impact of COM and COB on purchase intention and behavior.

Practical implications

Manufacturers of cars must understand the effect of COM and COB in order to build, position and protect their brands in international markets.

Originality/value

This paper provides an important contribution to the existing literature and business practice by providing a new perspective on country of origin research by using the multi‐dimensional construct of brand personality and analyzing the relationship between country of origin of a brand and country of manufacturing of that same brand.

Details

International Marketing Review, vol. 27 no. 2
Type: Research Article
ISSN: 0265-1335

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Article
Publication date: 13 February 2007

Sameer Kumar and Teruyuki Yamaoka

A major challenge the car industry currently faces worldwide is how to implement an effective reverse (also called closed loop) supply chain design while manufacturing…

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6794

Abstract

Purpose

A major challenge the car industry currently faces worldwide is how to implement an effective reverse (also called closed loop) supply chain design while manufacturing environmental friendly cars from limited available resources. The purpose of this paper is to examine relationships between reduce, reuse and disposal in the Japanese car market with base scenario analysis using the car consumption data and forecast.

Design/methodology/approach

The system dynamics (SD) modeling analyzes the closed loop supply chain design for the Japanese car industry. Relationships between reduce, reuse, recycle and disposal are explored with base scenario analysis using the car consumption data and forecast. The SD model is subjected to extreme conditions test for structural validity. Dynamic analysis of different market scenarios for the Japanese car industry's reverse supply chain is conducted.

Findings

Japanese ELV regulation will trigger the growth of used car export rate to emerging countries. Without additional tax on used car export, manufacturers in Japan tend to export used cars. Imposing tax on used car export will place some control on such export and improve economic opportunities for remanufacturers, recyclers, government, manufacturers and consumers in Japan.

Practical implications

The used car export option in Japanese reverse supply chain may cause the emerging countries (importing used cars) not able to sustain this activity. The Japanese government and manufacturers should take initiative to create or support the reverse logistics facilities in export countries. Issues pertaining to how product components can be recycled, reused, or remanufactured should be factored in the product design phase to reduce the cost of products and raw materials.

Originality/value

The dynamic model of the Japanese car market provides an experimental simulation tool, which can be used to forecast the relationship between reduce, reuse, recycle, disposal and how various logistics elements will be impacted by government regulations on a long‐term basis.

Details

Journal of Manufacturing Technology Management, vol. 18 no. 2
Type: Research Article
ISSN: 1741-038X

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Article
Publication date: 1 February 1990

Gordon Wills, Sherril H. Kennedy, John Cheese and Angela Rushton

To achieve a full understanding of the role ofmarketing from plan to profit requires a knowledgeof the basic building blocks. This textbookintroduces the key concepts in…

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11005

Abstract

To achieve a full understanding of the role of marketing from plan to profit requires a knowledge of the basic building blocks. This textbook introduces the key concepts in the art or science of marketing to practising managers. Understanding your customers and consumers, the 4 Ps (Product, Place, Price and Promotion) provides the basic tools for effective marketing. Deploying your resources and informing your managerial decision making is dealt with in Unit VII introducing marketing intelligence, competition, budgeting and organisational issues. The logical conclusion of this effort is achieving sales and the particular techniques involved are explored in the final section.

Details

Management Decision, vol. 28 no. 2
Type: Research Article
ISSN: 0025-1747

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Article
Publication date: 1 February 1997

David J. Urban and George E. Hoffer

While “category killers” have been a major retailing force in many product categories for nearly a generation, only recently has the concept extended to the retail used‐car

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2363

Abstract

While “category killers” have been a major retailing force in many product categories for nearly a generation, only recently has the concept extended to the retail used‐car market. Discusses several aspects of these “super automotive category killers (SACKs),” including why they developed in the mid‐1990s and their potential vulnerabilities. Provides managerial recommendations for existing and potential market participants.

Details

Journal of Consumer Marketing, vol. 14 no. 1
Type: Research Article
ISSN: 0736-3761

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Abstract

Details

Servitization Strategy and Managerial Control
Type: Book
ISBN: 978-1-78714-845-1

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Case study
Publication date: 6 May 2016

Jyoti Kainth and Tanmay Mathur

Marketing Management, Product Management, Marketing Strategy.

Abstract

Subject area:

Marketing Management, Product Management, Marketing Strategy.

Study level/applicability

Bachelor of Business Studies, MBA, Executive MBA.

Case overview

The case throws light on the intensely competitive Indian passenger car market and its unique challenges faced by Hyundai Motors India Limited (HMIL). It tries to capture the evolution of this dynamic industry, which is characterized by regular product launches and re-positioning efforts. The students are expected to assess the performance of HMIL and the success of its positioning efforts through multiple quantitative and qualitative data points given in the case. The students need to come up with recommendations whether, amidst intense competition, Government regulations and changing consumer expectations, HMIL should launch new products in its portfolio? If, yes, in which segments? And what should be the guiding philosophy behind such product launches?

Expected learning outcomes

The case is expected to guide students: 1. in comprehending the various macro-environmental factors that has made India an attractive passenger car market to invest and operate in, to virtually all multinational players across all segments; 2. in analyzing how the passenger car market is segmented in India; 3. in assessing the product-driven segment-wise performance by HMIL specifically and organizations in general and what are its implications on decision-making; this is indicative of the brand portfolio management based on BCG Brand/Product Portfolio Growth Share Matrix; 4. in assessing the impact of re-positioning on the firms performance judged before and after the re-positioning efforts by the firm; 5. in analyzing the market potential of SUVs and MUVs in India and whether HMIL should launch new products/brands for these segments; and 6. in deliberating on the guiding philosophy in new product launches around the concept of “Consumer Perceived Value”.

Supplementary materials

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

Subject code

CSS 8: Marketing.

Details

Emerald Emerging Markets Case Studies, vol. 6 no. 1
Type: Case Study
ISSN: 2045-0621

Keywords

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