Search results

Risk is indigenous to decision making. Marketing decisions in particular are associated with high risk. This article defines risk, offers insights on how marketing managers may improve their handling of risk, discusses marketers' two key ways of handling risk: various product models and the expected value, considers why finance models are often irrelevant to marketing problems, and offers some insights for marketing managers in dealing with risk.

This paper aims to investigate the impact of brand equity (BE) on stock performance (i.e. stock return, volatility and beta), and compare the performance of a high brand equity stocks (HBES) portfolio with that of the overall market during market downturn, market upturn and total disturbance periods of the COVID-19 pandemic in 2020.

Stock performance data and brand valuation estimates are obtained from various sources to assemble a portfolio of HBES and conduct the analyses. Econometric models are estimated to examine the impact of BE on stock performance and compare the HBES portfolio performance versus the overall market.

BE was positively associated with stock return and negatively associated with both types of risk (volatility and beta) during the COVID-19 pandemic. Specifically, during the market downturn period, BE was positively related to stock return and negatively related to stock volatility; during the market upturn period, BE was negatively associated with both types of risk; and during the total disturbance period, BE was positively associated with stock return and negatively associated with both types of risk. Finally, the HBES portfolio outperformed the market (S&P 500 index).

The findings advance the extant research by providing evidence pertaining to brands' role in mitigating the impact of unpredictable market shocks and crises, such as the COVID-19 pandemic, on stock performance. While brands are mostly viewed as drivers of sustained competitive advantage and profitability, their protective role in crisis times is noteworthy.

The research findings potentially help marketing and brand managers to justify marketing spending and craft their strategies to enhance firm performance during crises similar to COVID-19.

The marketing–finance interface can benefit from insights offered by the COVID-19 pandemic, as such crises are becoming prevalent and are capable of damaging various stakeholders' outcomes (firms, investors and customers). The empirical examination is separately conducted on the market downturn, market upturn and total disturbance period attributable to the COVID-19 pandemic.

In a modern world increasingly perceived as uncertain, the mere purchase of a household cleaning product, or a seemingly harmless bottle of milk, conveys interrogations about potential hazards, from environmental to health impacts. The main purpose of this paper is to suggest that risk could be considered as one of the major dimensions of choice for a wide range of concerns and markets, alongside aspiration/satisfaction, and tackled efficiently by mobilizing the recent findings of cognitive sciences, neurosciences and evolutionary psychology. It is felt that consumer research could benefit more widely from psychological and evolutionary-grounded risk theories.

In this study, some 50 years of marketing management literature, as well as risk-specialized literature, was examined in an attempt to get a grasp of how risk is handled by consumer sciences and of whether they make some use of the most recent academic works on mental biases, non-mainstream decision-making processes or evolutionary roots of behavior. We then tested and formulated several hypotheses regarding risk profiles and preferences in the sector of insurance, by participating in an Axa Research Fund–Paris School of Economics research project.

It is suggested that consumer profiles could be enriched by risk-taking attitudes, that risk could be part of the “reason why” of brand positioning, and that brand, as well as public policy communication, could benefit from a targeted use of risk perception biases.

This paper proposes to apply evolutionary-based psychological concepts to build perceptual maps describing people and consumers on both aspiration and risk attitude axis, and to design communication tools according to psychological research on message framing and biases. Such an approach mobilizes not only the recent findings of cognitive sciences and neurosciences but also the understanding of the roots of risk attitudes and perception. Those maps and framing could probably be applied to many sectors, markets and public issues, from commodities to personal products and services (food, luxury goods, electronics, financial products, tourism, design or insurance).

The purpose of this paper is to examine how the incorporation of marketing elements into consumer risk coping strategies affects consumer purchase decision during periods of food safety concern.

This research used a structured questionnaire administered to a convenience sample of 216 respondents. By using logistic regression, a consumer risk coping framework incorporating marketing strategies was successfully developed to test the impact of brand and quality assurance, price reduction, availability in all stores and endorsement from an independent organization, which may not act alone but combine with each other during food purchase.

The research confirms that consumers adopt risk coping strategies in time of food risk concern and their coping strategies include marketing elements such as brand and quality assurance, price reduction, availability in all stores and endorsement from an independent organization.

The framework helps marketers to predict the effect of their marketing plan by incorporating consumers' risk coping strategies, in turn to improve consumers' purchase intention when perceived food safety risk exists.

This research demonstrates how marketers can incorporate marketing strategies in a consumer risk coping framework, in order to provide an insight for the industry to evaluate the effectiveness of their marketing strategies in times of food safety concern.

This study investigates the influence of e-marketing risks on a Corporation’s Reputation (CR) resulting from its online marketing of products and services.

A comprehensive analysis was conducted to enhance the company’s e-marketing strategies and bolster its reputation in the market. This involved an investigation into key factors of e-marketing risks, such as customer confidence, product quality, marketing fraud, credibility and customer knowledge and proficiency in using online platforms. These factors have directly impacted the company’s reputation, including aspects such as product/service quality, attractiveness, performance and commitment to social responsibility.

Its finding indicates that customers' lack of confidence in e-marketing has a strong impact on CR, followed by product quality and credibility. The absence of consumer awareness about e-marketing websites and e-fraud frequently negatively affects the organizational reputation.

To enhance the corporation’s reputation, it is recommended that companies provide educational resources on online shopping, including guidance on using the company’s website, comparing prices and other services that facilitate online purchases. This will help to support the credibility of e-marketing and enhance customer trust.

This research is an exploration of how e-marketing has affected a Corporation’s Reputation. It provides modern knowledge about the dynamic interplay between digital strategies and brand perception. Investigating this relationship provides valuable insights into the evolving landscape of consumer trust in the digital age. By analysing the various ways in which e-marketing influences a company’s reputation, innovative approaches can be developed to enhance its online presence and build lasting customer trust.

Attempts to determine the key strategic variables that lead to superior financial as well as competitive performance. Investigates the effects of strategic variables on service provider′s risk levels. Suggests that integrating forward, having a relatively larger market share, sharing customers with other business units in the firm, having strong service image, and being in a market with a small number of competitors positively influences market share.

The principal aim of this study is to investigate the relationship between technological, marketing, organizational and commercialization risk management on new product development (NPD) performance.

Based on questionnaire, the data were collected from a sample of general automotive industry in Iran. Based on theoretical considerations, a model was proposed and descriptive statistic and hierarchical regression were used to measure the relationship between risk management factors and NPD performance.

Data analysis revealed that if organization can amplify their knowledge and information about risk and main factors that affect NPD process, not only can they do their work better but can also increase their ability to predict future happenings that affect performance.

First, due to the relatively small sample size, caution should be exercised when interpreting the results. Second, the data were collected from automotive producer in Iran, which may restrict to some extent generalizability of the findings.

The results suggest that managers should consider more attention to risk management. If managers spread the risk management in all aspects of the NPD project, total performance will be increased and it can develop the probability of NPD success. Also organizations should perform great market research due to best commercialization.

Past researches have presented complete information about NPD process. But identifying and considering the effect of the risk management parameters that are connected to the NPD process were the main thrusts to perform the study. In this paper, based on past research about risk management of NPD, the extra aspect of process that can improve total performance of NPD has been examined.

Extant literature indicates that increased product market diversification generates both positive and negative impact on firm performance. This inconclusive pattern hinders the decision-making of deploying a firm’s resources across different markets. This research aims to embed diversification into a moderation-based framework and demonstrates the conditions under which increased diversification produces either beneficial or harmful effects on firm outcomes. The authors introduce another market configuration dimension, viz., market emphasis, and reveal how changes in diversification and in emphasis yield interactive effects on an important firm performance indicator, idiosyncratic risk. An additional moderator, market turbulence, is also incorporated to further enrich the model in a three-way interaction. Results show that when market turbulence is high, and a firm highly skews its resources to some of its markets, diversifying into more market domains will increase firm idiosyncratic risk. A better choice during increased diversification is to evenly emphasize each of its markets. However, in a market displaying low turbulence, the high diversification-high emphasis pattern may be preferred because of lower firm risk.

To test the hypotheses, the authors collected a comprehensive archival data that contained a large group of public traded US-based manufacturing companies from three different resources. These were the Compustat Annual Database, the Center for Research in Security Prices database and Compustat Business Segment Database. These databases and the combinatorial approach are widely adopted in marketing and management research involving firm strategies and financial outcomes.

When market turbulence is high, simultaneously increasing market diversification and emphasis will more strongly raise firm idiosyncratic risk. However, polarizing into either diversification or emphasis reduces firm risk. When in a low turbulence market, expanding to more product markets and simultaneously emphasizing key markets will decrease idiosyncratic risk. One noticeable fact is that irrespective of whether a firm is in high or low turbulence conditions, choosing a diversification strategy always decreases firm risk when market emphasis is low. However, the impact of this effect however is higher when turbulence is greater. The authors also present the boundary conditions under which the three-way interaction holds.

First, the extension to the utilization of idiosyncratic risk stretches the understanding of effective ways of reducing firm risks from an angle of marketing management. This view of firm risk also contributes to further analysis of shareholder value. Classic corporate asset valuation focuses more on the financial performance indicators as well as the firm’s strategic domains. This research thus provides a unique and meaningful guideline for the corporate valuation approach from the angle of analyzing the firm’s business segment scope and emphasis in the context of the environment.

The idea about how many product markets a firm should enter is always one of the primary decisions that contain significant trade-offs. This makes the managers choice difficult during the decision-making processes. The authors suggest that managers should not only consider the scope of product markets but also think carefully about the resources allocated toward each segment. A matrix with dimensions of diversification and emphasis can be explicitly studied during the strategy formulation. The individual blocks within this matrix may have significant outcome differences.

Previous research focuses on either a firm’s internal assets or external competitive situations when researchers seek the drivers of risk-reduction. This research extends this horizon by adding the interplay between a set of fundamental firm decision areas, diversification and emphasis and the external conditions facing a firm (turbulence).

Returns to a model farm are simulated to assess the impact of marketing and insurance risk management tools as measured by mean net returns and returns at 5% value‐at‐risk (VaR). Results indicate that revenue insurance strategies and strategies involving a combination of price and yield protection provide substantial downside revenue protection, while mean net returns only modestly differ from the benchmark harvest sale strategy when considering all years between 1986 and 2000.

While extant research has increasingly examined minority entrepreneurs, less attention has been paid to Eastern European immigrant entrepreneurs and the role that marketing agility and risk propensity play in their resilience and survival in Nordic countries. This paper aims to highlight the importance of these factors for Eastern European immigrant entrepreneurs in the developed Nordic economy of Denmark.

This paper adopts the dynamic capabilities view as a theoretical framework and uses a qualitative research approach with interviews as the main data collection method. The empirical sample comprises 12 entrepreneurs originating from Hungary, Slovakia, Latvia, Lithuania and Romania, who operate in Denmark.

The findings show that contrary to prior studies that have highlighted a reliance among the migrant entrepreneurial community on ethnic networks as their dominant target market, Eastern European immigrant entrepreneurs located in Denmark, in contrast, focused on attracting Danish consumers as their target market audience. Leveraging multiple networks was therefore found to be critical to the survival of these immigrant ventures. Additionally, the entrepreneurs' marketing agility, underpinned by their optimistic approach, growth ambitions and passion for entrepreneurship, was found to play a pivotal role in their survival. Finally, despite the stable institutional environment in Denmark and the ease of doing business (both of which are influential factors in shaping the risk propensity and risk perception of entrepreneurs), the authors found immigrant entrepreneurs' risk propensity to be rather low, which was contrary to the expectations.

The current paper is one of the first studies that explicitly analyzes the roles of marketing agility and risk propensity in the resilience and survival of the ventures of relatively skilled immigrant entrepreneurs from Eastern Europe in a developed Nordic economy (Denmark). The paper's findings also challenge the notion associated with immigrant entrepreneurial ventures being primarily focused on ethnic customers or enclaves. The paper also specifies the peculiarities of marketing agility in immigrant entrepreneurial contexts and solidifies the importance of diverse networks in immigrant business survival and development.