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In July 2007, Mark-Hans Richer became Harley-Davidson's first chief marketing officer. Its riders were aging, which the company saw as an existential threat. Although Harley-Davidson had a record sales year in 2006 and had maintained a commanding share of the heavyweight motorcycle market for the previous decade, it needed to take new action to sustain its growth.

Richer needed to deliver a new generation of riders and a more diverse customer base, all without losing current Harley-Davidson customers. He also knew that he could not relax: the average tenure of a CMO in 2007 was only 27 months and a complete new product development cycle would take a minimum of four years.

After analyzing the case, students should be able to:

• Recommend marketing decisions for a brand with extremely high loyalty in light of various consumer behavior indicators gleaned from market research

• Understand the power of leveraging existing assets as opposed to innovating new products

• Understand the psychological basis of customer loyalty, including drivers and metrics of loyalty

Recommend marketing decisions for a brand with extremely high loyalty in light of various consumer behavior indicators gleaned from market research

Understand the power of leveraging existing assets as opposed to innovating new products

Understand the psychological basis of customer loyalty, including drivers and metrics of loyalty

On April 4, 2013, a video game website reported that the next-generation Xbox console—due to be released by Microsoft the following month—would require an always-on Internet connection in order to operate. The new version of the SimCity game that had been released earlier that year with an always-on requirement had been a disaster. Hardcore gamers reacted negatively to the news.

When the Xbox One console was officially revealed on May 21, Microsoft effectively confirmed that it would require an always-on connection for validating digital rights. Predictably, gamers reacted negatively, a response that was exacerbated when Microsoft's president of the interactive entertainment business, Don Mattrick, made dismissive statements about their concerns

After reading and analyzing the case, students will be able to:

• Address the challenge of marketing a product to multiple adjacent but very different customer segments

• Understand the need for a unified vision before going to market

• Develop a strategy that addresses the complexity of a world in which the company may no longer own the “loudest voice in the room”

Address the challenge of marketing a product to multiple adjacent but very different customer segments

Understand the need for a unified vision before going to market

Develop a strategy that addresses the complexity of a world in which the company may no longer own the “loudest voice in the room”

Harley-Davidson's first-ever chief marketing officer has his work cut out for him as the classic American motorcycle manufacturer seeks to curb slowing sales from aging customers. The dilemma: what to do with its less known and unprofitable Buell brand, which has a younger customer base? Which of five options continue its dual-brand strategy, double down on Buell, operate Buell as an endorsement brand, sell it, or discontinue the brand entirely will best attract younger buyers without alienating current diehard customers?

This study aims to investigate the effect of winning-losing perception, including the winning or losing result and the closeness of this result, on consumers’ subsequent variety-seeking behavior.

Four experimental designs, one with a modified version of the Tetris game, were used to show how and when winning or losing perceptions will influence individuals’ variety-seeking behavior.

Consumers who have failed in a competition or not achieved a goal tend to seek less variety in their later consumption than do consumers who have succeeded because losing feedback weakens consumers’ perception of their control of personal mastery. This effect only exists when the closeness of winning or losing is narrow (e.g. the success is just missed) and diminishes when the result is clear and obvious.

The current study has systematically explored the interaction between winning-losing outcomes and the closeness of these outcomes.

This study offers marketing managers practical guidance on how to use competition results to conduct marketing activities, such as transmitting advertisements for classic flavors to those who have lost in a video game or properly increasing the proportion of new flavors or products in stores or vending machines near sports venues.

This research adds to the literature on competition, which has largely overlooked the possible moderating role of the closeness of the competition result and its influence on individuals’ follow-up irrelevant behaviors and it also adds to the work on variety-seeking behavior, which has not explored the impact of winning-losing perception.