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The literature on product design/development (PD) has attempted to understand the consumer but has not provided a comprehensive framework for product marketers and designers. Thus, this paper aims to compile and link the main topics in the literature on PD to create a foundation for strategic development in this field.

This research adopted a “fit-for-purpose” methodology, a cross-referencing method and a meta-narrative approach that are appropriate for reviewing studies in a field involving complex topics and areas in which the literature is still developing.

To enhance the quality of product development, there is a need for PD strategy based on a clear understanding of many factors: the consumer; the complex interrelations among a product’s values, dimensions and personalities; PD theories; and other related variables.

This study found that PD studies should concentrate more on codifying strategies to enhance product development success. This is particularly important in view of consumers’ varied and changeable tastes in the global market and the differing insights of product marketers and designers.

This comprehensive systematic review is a unique study that contributes to future business-to-consumer and business-to-business research by compiling scattered and hidden strategies, theories and variables in the PD/development literature.

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 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 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 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.

Advances in artificial intelligence have ushered in new opportunities for marketers in the domain of content generation. We discuss approaches that have emerged to generate text and image content. Drawing on the customer equity framework, we then discuss the potential applications of automated content generation for customer acquisition, relationship development, and customer retention. We conclude by discussing important considerations that businesses must make prior to adopting automated content generation.

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.

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.

The study examines consumer expertise for services and its measurement. Specifically, measures of subjective expertise or confidence, experience or frequency of usage, and two measures of objective expertise are used for two services varying in degree of tangibility. As hypothesised, positive relationships between the different types of expertise do not always exist, particularly as intangibility of the service increases.

Management has considerable discretion over how to present and announce earnings components that are either unusual or infrequent, but not both (hereafter referred to as special items). In this study, we study the independent and joint effects of the accounting presentation format of, and the level of announcement prominence given to income-decreasing special items on investors’ judgments about the persistence of declining earnings.

Our study uses a 3 (format) × 2 (prominence) between-subjects design. In the experiment, participants act as proxies for nonprofessional investors to assess the persistence of a hypothetical firm’s declining earnings and make investment decisions.

Our results suggest that investors’ judgments are influenced by accounting presentation format and the level of announcement prominence. With respect to format, both classification and disaggregation affect investors’ assessment of earnings persistence. In addition, the degree of prominence given to an income-decreasing special item, albeit self-serving and not audited, introduces additional influence beyond that of accounting presentation format. In particular, we find that announcement prominence has a greater effect when the special item is aggregated with other operating expenses than when the special item is presented under the two other alternatives.

Our study contributes to the literature by demonstrating that presentation format and announcement prominence both have significant impact on investors’ judgments and decisions, and that their effects are interactive. Our results also indicate that future research can possibly gain better insight if it considers the accounting attributes of the special items in addition to their economic attributes.