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Marketing plan; virtual shopping; consumer behavior.
Abstract
Subject area
Marketing plan; virtual shopping; consumer behavior.
Study level/applicability
Undergraduate.
Case overview
This case discusses the e-commerce plan of new online grocery company in Mexico, MexGro, which is planning to emerge as low-cost outlet as compared to the brick-and-mortar establishments in the market. MexGro is an online grocer with a round-the-clock call center to process phone-based orders and to provide customer support. The grocery online company is aimed at setting up a virtual grocery shop by the name of MexGro S.A de C.V to serve cross-cultural products to the Hispanic and Asian communities in Mexico. The MexGro, being a virtual shop, need not pay for checkout clerks; display cases, or parking lots, online grocers can drop prices below those of retail stores and remain profitable. This case explores online consumer-shopping behavior, the economics of online and offline grocery distribution, and the challenges of uniting a pure information business with a mundane package delivery service.
Expected learning outcomes
This case may be discussed towards learning developing effective online marketing planning strategy for the niche markets. The specific learning objectives of the case are: to analyze the virtual marketing planning constituents for developing customer-centric marketing within a niche and explore the possibilities of sustainable business growth to encourage strategic thinking towards developing online marketing plan and develop effective communications among the consumers and to address the critical online planning issues, such as what are the prospects for grocery shopping on the internet. The case allows students to grapple with the strategic and tactical decisions on planning for the online marketing companies. Students will also become familiar with key questions/issues raised by the various executives of the company in formulating the online marketing plan for ethnic grocery in a niche business environment: the case challenges students to think about how online grocer creates the most value for customers and how grocer will likely be able to overcome the competition from the brick-and-mortar grocers. Should Wal-Mart be aggressive in launching its grocery brand? The case raises issues to debate on how the organizational and system decisions are faced by managers in developing a virtual shopping culture in Mexico as the company has the goal to move among more efficient competitors in the supermarket industry, and How the online marketing plan can be implemented within a niche. This case study would take students through the rise of a private brand to the strategies of its sustainability in the competitive marketplace. This case illustrates the importance of using new variables in developing an effective marketing plan when companies reinforce their products in the niche markets. The discussion in the case allows students an opportunity to evaluate online marketing planning and their brands in a niche as well as in a competitive marketplace.
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.
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Thompson S.H. Teo and Jek Swan Tan
This paper represents one of the first few studies on Internet marketing strategies of business‐to‐consumer (B2C) firms in Singapore. A survey was sent to CEOs/marketing managers…
Abstract
This paper represents one of the first few studies on Internet marketing strategies of business‐to‐consumer (B2C) firms in Singapore. A survey was sent to CEOs/marketing managers of 400 firms, of which 92 usable responses were obtained. The results of hierarchical regression analyses indicate that strategies to attract customers and to relate to customers have significant positive relationships to online brand equity (defined as “a set of brand assets and liabilities linked to a brand, its name and symbol that add or subtract from the value provided by a product or service to a firm and/or to its customers”). In addition, online brand equity is positively related to financial growth. Implications of the results are discussed.
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The objective of this study is to investigate the current status quo of online reporting in 2010. Further, this study seeks to explain corporate online reporting in Jordan by…
Abstract
Purpose
The objective of this study is to investigate the current status quo of online reporting in 2010. Further, this study seeks to explain corporate online reporting in Jordan by using companies' characteristics as explanatory factors for any variations in disclosure. Finally, the current findings are set in the context of prior studies in order to determine the existence of disclosure transformation.
Design/methodology/approach
Listed Jordanian companies were investigated to explore the current status of corporate online reporting. An un‐weighted index comprising 70 un‐weighted financial and non‐financial items was employed.
Findings
A total of 175 of 272 companies were found with accessible and active websites. The overall average level of corporate online reporting was 70 percent, as measured by the mean of the overall items of the current index. Variations in corporate online reporting were associated with size, performance, foreign ownership and online company familiarity.
Research limitations/implications
This study provides a comprehensive online disclosure index that can be used to inform Jordanian companies about the format and the content of corporate online reporting. It also offers a solid ground for future research on corporate online reporting. Furthermore, the results of this study indicate that corporate online reporting had been moved forward but there is plenty of room to further explore the field.
Originality/value
This paper provides evidence on the current status quo of online reporting in Jordan as one of the emerging economies in 2010 as a year with great expectations and predictions. This paper is the first to examine several companies' characteristics by using multivariate analyses. This paper also examines the online companies' familiarity for the first time as a potential factor affecting corporate online reporting in the literature. Moreover, the trend analysis shows corporate online reporting has steadily risen over the past few years, which is evidence of disclosure transformation theory in Jordan as it is in other emerging economies.
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Purchasing behaviour across traditional retail and internet routes to market is becoming increasingly integrated. The positive and negative consequences of such behaviour for…
Abstract
Purpose
Purchasing behaviour across traditional retail and internet routes to market is becoming increasingly integrated. The positive and negative consequences of such behaviour for multi‐channel businesses have not been thoroughly examined – while an offline retail presence may reassure customers purchasing from an online channel, poor service online may negatively influence customer usage of an offline channel. This paper aims to address this issue.
Design/methodology/approach
A questionnaire survey of the online customers of four companies is employed and structural equation modelling used to investigate influences of demographic and behavioural variables (purchase involvement, loyalty, experience with the internet, company and product‐type) on positive and negative cross‐channel behaviour (CCB).
Findings
Strong evidence for both positive and negative customer CCB is found. Females, higher purchase involvement, higher loyalty and those with more experience of the company were more likely to display positive CCB; higher education, experience with the product type and online channel negatively influenced positive CCB. Increased age, education, occupation/class and purchase involvement lead to more negative CCB; product and company experience lead to reduced levels of negative CCB.
Research limitations/implications
As a first step towards understanding of customer CCB the research generates many insights; however, more research is required to explore in more depth each of the constructs discussed and measured.
Practical implications
Understanding how different customer groups display different tendencies for CCB can help companies shape fulfilment and delivery strategies across different channels to market.
Originality/value
The study makes contributions to customer cross‐channel customer behaviour, developing implications for future research as well as management practice.
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Qiuli Su, Aidin Namin and Seth Ketron
This paper aims to investigate textual characteristics of customer reviews that motivate companies to respond (sentiment negativity and sentiment deviation) and how aspects of…
Abstract
Purpose
This paper aims to investigate textual characteristics of customer reviews that motivate companies to respond (sentiment negativity and sentiment deviation) and how aspects of these company responses (response intensity, length and tailoring) affect subsequent customer review quality (comprehensiveness and readability) over time.
Design/methodology/approach
Leveraging a large data set from a leading app website (Shopify), the authors combine text mining, natural language processing (NLP) and big data analysis to examine the antecedents and outcomes of online company responses to reviews.
Findings
This study finds that companies are more likely to respond to reviews with more negative sentiment and higher sentiment deviation scores. Furthermore, while longer company responses improve review comprehensiveness over time, they do not have a significant influence on review readability; meanwhile, more tailored company responses improve readability but not comprehensiveness over time. In addition, the intensity (volume) of company responses does not affect subsequent review quality in either comprehensiveness or readability.
Originality/value
This paper expands on the understanding of online company responses within the digital marketplace – specifically, apps – and provides a new and broader perspective on the motivations and effects of online company responses to customer reviews. The study also extends beyond the short-term focus of prior works and adds to literature on long-term effects of online company responses to subsequent reviews. The findings provide valuable insights for companies (especially those with apps) to enhance their online communication strategies and customer engagement.
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Beatrice Amonoo Nkrumah, Wei Qian, Amanpreet Kaur and Carol Tilt
This paper aims to examine the nature and extent of disclosure on the use of big data by online platform companies and how these disclosures address and discharge stakeholder…
Abstract
Purpose
This paper aims to examine the nature and extent of disclosure on the use of big data by online platform companies and how these disclosures address and discharge stakeholder accountability.
Design/methodology/approach
Content analysis of annual reports and data policy documents of 100 online platform companies were used for this study. More specifically, the study develops a comprehensive big data disclosure framework to assess the nature and extent of disclosures provided in corporate reports. This framework also assists in evaluating the effect of the size of the company, industry and country in which they operate on disclosures.
Findings
The analysis reveals that most companies made limited disclosure on how they manage big data. Only two of the 100 online platform companies have provided moderate disclosures on big data related issues. The focus of disclosure by the online platform companies is more on data regulation compliance and privacy protection, but significantly less on the accountability and ethical issues of big data use. More specifically, critical issues, such as stakeholder engagement, breaches of customer information and data reporting and controlling mechanisms are largely overlooked in current disclosures. The analysis confirms that current attention has been predominantly given to powerful stakeholders such as regulators as a result of compliance pressure while the accountability pressure has yet to keep up the pace.
Research limitations/implications
The study findings may be limited by the use of a new accountability disclosure index and the specific focus on online platform companies.
Practical implications
Although big data permeates, the number of users and uses grow and big data use has become more ingrained into society, this study provides evidence that ethical and accountability issues persist, even among the largest online companies. The findings of this study improve the understanding of the current state of online companies’ reporting practices on big data use, particularly the issues and gaps in the reporting process, which will help policymakers and standard setters develop future data disclosure policies.
Social implications
From these findings, the study improves the understanding of the current state of online companies’ reporting practices on big data use, particularly the issues and gaps in the reporting process – which are helpful for policymakers and standard setters to develop data disclosure policies.
Originality/value
This study provides an analysis of ethical and social issues surrounding big data accountability, an emerging but increasingly important area that needs urgent attention and more research. It also adds a new disclosure dimension to the existing accountability literature and provides practical suggestions to balance the interaction between online platform companies and their stakeholders to promote the responsible use of big data.
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Qiongwei Ye and Baojun Ma
Internet + and Electronic Business in China is a comprehensive resource that provides insight and analysis into E-commerce in China and how it has revolutionized and continues to…
Abstract
Internet + and Electronic Business in China is a comprehensive resource that provides insight and analysis into E-commerce in China and how it has revolutionized and continues to revolutionize business and society. Split into four distinct sections, the book first lays out the theoretical foundations and fundamental concepts of E-Business before moving on to look at internet+ innovation models and their applications in different industries such as agriculture, finance and commerce. The book then provides a comprehensive analysis of E-business platforms and their applications in China before finishing with four comprehensive case studies of major E-business projects, providing readers with successful examples of implementing E-Business entrepreneurship projects.
Internet + and Electronic Business in China is a comprehensive resource that provides insights and analysis into how E-commerce has revolutionized and continues to revolutionize business and society in China.
Mirko Olivieri, Elanor Colleoni and Giuseppe Bonaccorso
Because of the recent COVID-19 pandemic, online platforms where travelers' comments and reviews are published have grown considerably. More specifically, in the tourism sector…
Abstract
Because of the recent COVID-19 pandemic, online platforms where travelers' comments and reviews are published have grown considerably. More specifically, in the tourism sector, these social evaluations have been shown to have a strong influence as online platforms, such as online travel agencies (OTA), represent a main touchpoint for the formation process of the online corporate reputation. Hence, the purpose of this study is to investigate how the pandemic has influenced the online reputation formation of tourism companies and which are the new reputation pillars emerging from the COVID-19. To achieve this research aim, we analyzed the customers' reviews as reported publicly on TrustPilot.com, an online platform that allows customers to review businesses after a purchase or contact with their customer service, before and after COVID-19 so as to identify significant changes in the corporate reputational drivers of LastMinute.com. With this study we have identified the four topic clusters and their sentiment in the two periods of consideration, and we have found that the corporate reputation of tourism companies is formed today starting from different consumer needs. Finally, managerial implications for communication professionals operating in tourism firms are presented.
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The purpose of this paper is to explore the relationship between the actual usage of online methods for collaboration with customers and firms’ innovation performance. Drawing on…
Abstract
Purpose
The purpose of this paper is to explore the relationship between the actual usage of online methods for collaboration with customers and firms’ innovation performance. Drawing on theories of knowledge flows and knowledge creation, this study analyses the results of customer collaboration in the online mode in comparison to the offline mode.
Design/methodology/approach
The data for the econometric analysis comes from managers of 102 so-called “gazelles”, knowledge-intensive service firms that were characterized by exceptionally stable growth rates in Sweden during 2010 and 2011.
Findings
This study confirms the significance of information and communication technology (ICT)-supported collaboration with customers for a firm’s innovation performance. Interacting with customers using online methods has a positive effect on companies’ innovation output. Besides, knowledge-intensive service companies demonstrate more extensive though less intensive use of online channels for collaborating with customers compared to offline methods.
Research limitations/implications
The data for this study has typical limitations resulting from the collection method of web-surveying. Future research should refine the findings of this study using various measures of firms’ innovation performance.
Practical implications
Firms should be more receptive towards online methods of collaboration with customers because using such strategy can increase their probability to introduce service innovations. The insights from this study are especially valuable for companies in knowledge-intensive service industries because the sample consist of companies that can be regarded as successful cases.
Originality/value
This study is one of the first that addresses the issue of the impact of collaborative technologies on innovation performance. The sample of steady-growing gazelle companies adds value to the results.
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Heng Xu, Xuliang Wu and Yatian Liu
This paper aims to theoretically investigate an online company’s optimal decision on its offline expansion strategy. In the past five years, many large online retailers and…
Abstract
Purpose
This paper aims to theoretically investigate an online company’s optimal decision on its offline expansion strategy. In the past five years, many large online retailers and internet-based companies such as Amazon, Google, Alibaba, Tencent and JD.com have expanded their offline market but it was observed that they adopted different expansion strategies. Specifically, some of them expand the offline market by acquiring offline retailers, while some do so by purchasing a portion of offline retailer’s stake. This difference leads to a quite different structure in post-expansion market, having an impact on profit, consumer surplus and social welfare. The goal of this paper is to model such expansion strategies in a general way and complete studies on profits and welfare.
Design/methodology/approach
By constructing a Salop model with two offline retailers and one online company, this paper analyzes the case where the online company can expand its offline market by either acquiring or jointing (e.g. stakeholding) with one offline retailer. The former strategy (named Strategy A) allows the online company to fully control and capture residual claims of the offline retailer. With the adoption of the latter strategy (named Strategy C), on the other hand, the online company can obtain a fixed proportion of its offline partner’s quasi rent. In the price competition, the online company chooses its optimal offline expansion strategy by predicting its profit in the post-expansion market.
Findings
This paper found that the equilibrium crucially depends on the synergy effect due to online–offline integration, and such synergy also influences both consumer and social welfare. This study shows the various conditions on the synergy that affect an online company moves toward offline markets. Accordingly, this finding can assist online companies with or without retailing business to choose an optimal strategy when expanding offline markets. Moreover, by doing some necessary welfare analysis, this study shows that the online company’s offline expansion is not always benefiting consumers nor be socially desirable, which may shed some lights on the possible competition policy in the case where online companies practice in offline expansion.
Originality/value
Different from conventional wisdom in online-offline integration, the theory indicates that the offline expectation of online company may not always benefit consumers nor be socially desirable. Moreover, the findings also shed some lights on the possible competition policy in the case where online companies practice in offline expansion.
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