This research reviews numerous studies of the relationship between consumer knowledge and external search in conventional marketing channels to investigate differences…
This research reviews numerous studies of the relationship between consumer knowledge and external search in conventional marketing channels to investigate differences among these studies that have produced conflicting results. The findings provide a benchmark for future researchers and practitioners seeking to gain insight into consumer information search processes unfolding in the new environment of online, mobile, and social networking channels.
A meta-analysis of an extensive array of empirical studies of the relationship between consumer knowledge and external information search was conducted. Regression analysis was used to test whether certain characteristics in the studies can explain variability in the effect sizes in which effect sizes are entered as dependent variables and moderators as independent variables.
Objective and subjective knowledge tend to increase search, while direct experience tends to reduce search. Consumers with higher objective knowledge search more when pursuing credence products. However, they search relatively less when pursuing search products. Consumers with higher subjective knowledge are much more likely to search in the context of experience products, but as is the case for objective knowledge having little effect on search for experience products, subjective knowledge has no significant effect on information seeking for search products. In addition, objective knowledge facilitates more information search in a complex decision-making context while higher subjective knowledge fosters more external information search in a simple decision-marketing context. Finally, the findings indicate that the knowledge search relationship reflects strong linkage in the pre-Internet era.
Relatively little is known about how the relationship between knowledge and information search varies across different types of products in simple or complex decision-making contexts. This study begins to fill this gap by providing insight into the relative importance of objective knowledge, subjective knowledge, and direct experience in influencing consumer information search activities for search, experience, and credence products in simple or complex decision-making contexts.
Using a large sample of diversified firms from 38 countries we investigate the influence of several national-level institutional factors or “institutional voids” on the…
Using a large sample of diversified firms from 38 countries we investigate the influence of several national-level institutional factors or “institutional voids” on the value of corporate diversification. Specifically, we explore whether the presence of frictions in a country’s capital markets, labor markets, and product markets, affects the excess value of diversified firms. We find that the value of diversified firms relative to their single-segment peers is higher in countries with less-efficient capital and labor markets, but find no evidence that product market efficiency affects the relative value of diversification. These results provide support for the theory of internal capital markets that argues that internal capital allocation would be relatively more beneficial in the presence of frictions in the external capital markets. In addition, the results show that diversification can be beneficial in the presence of frictions in the labor market.
This chapter integrates research that highlights and demonstrates the importance of the marketing mix and customer attitudinal metrics in influencing the customer’s path…
This chapter integrates research that highlights and demonstrates the importance of the marketing mix and customer attitudinal metrics in influencing the customer’s path to purchase. A key objective of this chapter is the provision of an integrative conceptual framework that links marketing actions to customer mindset metrics along the consumer’s path to purchase and the identification of the mechanisms by which customer mindset metrics contribute to consumer purchase journey. Specifically, it delineates two routes for the effects to manifest on sales: the “mindset route” where marketing actions influence customer mindset metrics, which in turn influence brand performance, or the “transactions route” where marketing actions influence market performance directly without influencing the intermediate mindset metrics. A second objective is to identify empirical patterns on incorporating marketing mix and mindset metrics along the path to purchase by reviewing key papers in this domain. Finally, the chapter concludes with the formulation of a rich, forward-looking research agenda on the customer mindset metrics – path to purchase link.
Empirically examines how certain variables influence the extent of external information search for banking services. The effects of perceived benefit, perceived cost, perceived risk, and perceived knowledge are tested within a proposed structural equation, cost‐benefit based Banking Services Model (BSM). Surveys a sample of 661 students at a major US university to gather data on their information search for banking services. The results reveal that the BSM provides a good fit to the data. Perceived benefit, cost and knowledge influence the extent of prepurchase bank information search. In addition, the consumers felt that it was more beneficial to obtain more information when there was a perceived benefit of lowering risk and when they already had some form of prior product knowledge. Implications of the BSM for services marketing management and consumer theory, limitations of the study, and future research are discussed.
The purpose of this paper is to focus on how investments in research and development (R&D) and advertising affect the performance of small- and medium-sized enterprises…
The purpose of this paper is to focus on how investments in research and development (R&D) and advertising affect the performance of small- and medium-sized enterprises (SMEs) during recessions.
Contingency theory is applied to a data set of 376 Italian clothing SMEs during the period 2000-2010 to test whether investment in R&D and advertising impacts financial performance differently when contingent factors (such as market share, financial leverage and business model change) are taken into account.
Empirical results confirm that market share and leverage moderate the effects of investments in R&D and advertising (i.e. intangibles) on performance, and also that changes in business models are an important contingent factor that explains performance. Specifically, the paper ascertains that a novelty-centered business model, together with investments in intangibles, positively affects performance during recessions.
This study offers an input to the debate on how SMEs develop and sustain their competitive advantage during the recession. It contributes to existent theory by showing whether and how contingencies, such as a firm's market share and leverage, moderate the relationship between performance and investments in R&D and advertising in SMEs. Second, it addresses the call for additional data “about the strategic effects of business models and how they influence the positioning of firms in their competitive environment” (Amit and Zott, 2008, p. 20) by introducing business model change/innovation as a new contingency factor and by empirically testing its effects on “objective measures of firm performance” (Bock et al., 2012, p. 301).
We have developed a computer oxidation modeling program, named NOVEL, which has been integrated into our process simulator FINDPRO. It combines the modified Deal‐Grove…
We have developed a computer oxidation modeling program, named NOVEL, which has been integrated into our process simulator FINDPRO. It combines the modified Deal‐Grove growth rate model with a nonlinear viscoclastic deformation model to predict both the oxide shape and stress. Modeling the thermal oxidation of silicon presents several numerical challenges. First, the oxide region expands and deforms extensively during the process which has to be modeled as a moving boundary, large deformation problem. Second, the SiO2 mechanical property changes from clastic to viscoclastic to viscous as the processing temperature is changed from a value below the the glass transition temperature (960°C) to one above it. The viscoclastic deformation model which is adequate over the entire temperature range of interest has an intrinsic numerical singularity when the oxide viscosity (divided by time) becomes relatively lower than the elastic modulus at high temperatures. These must be handled appropriately to ensure that the modeled results are correct. In this paper, we present details of how NOVEL solves the above mentioned problems. We show examples of low temperature/high pressure oxidation of a LOCOS structure, trench isolation structure, and the technique by which the finite element program NOVEL interfaces with the finite difference process simulator FINDPRO.
Traditionally, firms have been dependent on internal sources such as their own employees – and up to a certain extent, on some external sources, their customers – for…
Traditionally, firms have been dependent on internal sources such as their own employees – and up to a certain extent, on some external sources, their customers – for innovation. However, in the current scenario of technological dynamism, firms are exploring multiple sources to generate ideas for innovation. Therefore, there is a need to understand the relative effect of various sources of innovations on a firm’s performance.
We offer a conceptual framework where we identify six distinct sources of innovations – firm, customers, external network, competition, macro-environment, and technology and how they create value for focal firms especially their brand equity. We introduce a taxonomy of various costs and benefits related to innovations. We then argue using our proposed taxonomy to understand the relative strengths of various sources of innovation affecting a firm’s brand equity.
We discuss and compare the relative effects of these sources of innovations on a firm’s brand equity by rank-ordering the sources. The customers and the technology as a source of innovation have the maximum impact on the firm’s brand equity followed by the marginal impact of macro-environment and external network of a firm. The firm itself has a moderate impact on its brand equity, while competition has the minimal impact. Further, we also discuss how the relationship is moderated by different innovation characteristics (nature and type of innovations).
The main practical implication is to create awareness among managers about various costs and benefits of the proposed six sources of innovations and their effects on brand equity. Managers would be able to prioritize their sources of innovation based on firms’ current needs, and whether to focus on lower costs or building higher brand equity in the scarce resource environment.
We offer a comprehensive list of six sources of innovation, build a conceptual framework wherein we discuss the relative strengths of these sources affecting brand equity.
Purpose – Marketers are under increasing pressure to demonstrate the financial return associated with marketing expenditures. Concurrently, more attempts at measuring…
Purpose – Marketers are under increasing pressure to demonstrate the financial return associated with marketing expenditures. Concurrently, more attempts at measuring return on investment from marketing as well as achieving other long-term goals such as building brand equity and increasing shareholder value have been made. As a result of this emphasis, the degree to which advertising budgets are spent efficiently and the impact of these expenditures on the bottom line are an important topic to study.
Methodology/approach – This study applies data envelopment analysis (DEA) to a group of large firms to assess the degree to which companies spend advertising dollars efficiently and to examine the impact of advertising efficiency on investor behavior and, ultimately, stock prices.
Findings – The analysis reveals that firms that advertise more efficiently are rewarded by investors by positive stock returns.
Research limitations/implications (if applicable) – The study is limited to large enterprises with strong brands within a time frame of only four years.
Practical implications (if applicable) – The results imply that it is advisable for marketing managers not to limit their focus to increasing market-based assets at any cost. The efficiency of their efforts can send a positive signal to investors and contribute to shareholder value enhancement.
Originality/value of the chapter – The chapter finds investors to pay attention not only to the effectiveness of advertising activities but also to their efficiency. The study also demonstrates how DEA and stock return response modeling can be combined to investigate the link between advertising efficiency and investor behavior.
The products of some firms emerge neither from new technology developments nor from attempting to address articulated consumers’ needs, but from a company-internal design-driven approach. To explore this design-driven approach, we propose a construct, design orientation, as a firm’s ability to integrate functionality, aesthetics, and meaning in its new products. We hypothesize relationships between a firm’s design orientation, customer orientation, technological orientation, and willingness to cannibalize on its new product performance.
We use data from surveys of senior marketing executives entrusted with design in 252 US firms, we validate the construct of design orientation and establish its distinctiveness from related constructs of creativity, technological orientation, and customer orientation. Using a structural equation modeling approach, we test the hypotheses and find support for them.
Individually, design orientation, technological orientation, and customer orientation improve new product performance. In addition, customer orientation decreases the positive effect of design orientation while willingness to cannibalize increases the positive effect of design orientation on new product performance.
Implications for theory and/or practice
More than two-thirds of respondents (69%) perceive that their firm can improve its new product performance by increasing its design orientation, an overlooked organizational capability.
Although practitioners have acknowledged the importance of design as a strategic marketing issue, there is little in the literature on how firms can benefit from building capabilities in the design domain, the issue we focus on in this research.