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Book part
Publication date: 13 November 2017

Robert Kozielski, Michał Dziekoński, Michał Medowski, Jacek Pogorzelski and Marcin Ostachowski

Companies spend millions on training their sales representatives. Thousands of textbooks have been published; thousands of training videos have been recorded. Hundreds of good…

Abstract

Companies spend millions on training their sales representatives. Thousands of textbooks have been published; thousands of training videos have been recorded. Hundreds of good pieces of advice and tips for sales representatives have been presented along with hundreds of sales methods and techniques. Probably the largest number of indicators and measures are applied in sales and distribution. On the one hand, this is a result of the fact that sales provide revenue and profit to a company; on the other hand, the concept of management by objectives turns out to be most effective in regional sales teams with reference to sales representatives and methods of performance evaluation. As a result, a whole array of indices has been created which enable the evaluation of sales representatives’ work and make it possible to manage goods distribution in a better way.

The indices presented in this chapter are rooted in the consumer market and are applied most often to this type of market (particularly in relation to fast-moving consumer goods at the level of retail trade). Nevertheless, many of them can be used on other markets (services, means of production) and at other trade levels (wholesale).

Although the values of many indices presented herein are usually calculated by market research agencies and delivered to companies in the form of synthetic results, we have placed the emphasis on the ability to determine them independently, both in descriptive and exemplifying terms. We consider it important to understand the genesis of indices and build the ability to interpret them on that basis. What is significant is that the indices can be interpreted differently; the same index may provide a different assessment of a product’s, brand or company’s position in the market depending on the parameters taken into account. Therefore, we strive to show a certain way of thinking rather than give ready-made recipes and cite ‘proven’ principles. Sales and distribution are dynamic phenomena, and limiting them within the framework of ‘one proper’ interpretation would be an intellectual abuse.

Article
Publication date: 4 September 2023

Luping Sun, Xiaona Zheng, Luluo Peng and Yujie Cai

In marketing, most research on intention–behavior consistency (IBC) is dedicated to improving the predictive ability of stated intentions for future behaviors, with relatively…

Abstract

Purpose

In marketing, most research on intention–behavior consistency (IBC) is dedicated to improving the predictive ability of stated intentions for future behaviors, with relatively less exploration into the precursors of IBC, especially those linked to regular durable goods void of ethical consumption characteristics. This study aims to focus on the antecedents of IBC for such products, specifically examining category-level and product-level IBC in light of consumer knowledge.

Design/methodology/approach

The authors conducted a two-round survey to collect 3,560 Chinese consumers' vehicle purchase intentions and behaviors. The authors have also leveraged a large vehicle database (containing detailed vehicle attribute information) to measure consumer product knowledge (i.e. product judgment accuracy). A trivariate probit model was proposed to account for the potential selection bias arising from sample attrition while examining the effects of consumer knowledge on category- and product-level intention-behavior consistency.

Findings

Findings reveal that 47% of the participants displayed category-level IBC, and within this group, a further 39% exhibited product-level IBC. Notably, product knowledge, manifested as accurate product judgment, correlates negatively with category-level IBC but positively with product-level IBC. Intriguingly, the negative association between inaccurate judgment and product-level IBC is less pronounced for consumers overestimating the target product than for those underestimating it. Furthermore, consumers with direct experience are less prone to show category-level IBC, but are more inclined to display product-level IBC.

Practical implications

Vehicle marketers should prioritize consumers who show interest in their products but possess inaccurate knowledge, to retain whom companies can nurture their product knowledge. As for consumers with accurate knowledge, companies should try to expedite their purchase. Vehicle marketers also need to devise suitable advertising strategies to prevent consumers from undervaluing their products. For those overestimating competitors' products, companies can provide information to correct their overestimation and draw attention to possible confirmation biases. Vehicle marketers should encourage potential buyers who have shown interest in their product to participate in test-drive events, exhibitions, and other direct experience opportunities. Yet, for consumers still in the “whether-to-buy” decision-making phase, companies should not rush them into a test drive.

Social implications

In the policy-making realm, governmental administrators can implement extensive consumer education programs, with a focus on the importance of product knowledge. This may involve providing consumers with accurate information and buying guides through various channels, which can help consumers make informed purchase decisions. Moreover, to foster healthy competition among vehicle companies, governmental administrators can establish regulations that require vehicle companies and other relevant industries to provide accurate and transparent product information, including performance, safety, and environmental aspects. Finally, in order to protect consumer rights, governmental administrators can also strengthen regulations to ensure fair treatment and safeguards for consumers throughout the purchasing process. This includes cracking down on false advertising and fraudulent practices, maintaining market order, and enhancing consumer confidence and purchase consistency.

Originality/value

This study is among the first attempts to examine the relationship between consumer knowledge and intention-behavior consistency, especially for regular durable products void of ethical consumption characteristics. Responding to the call of previous literature (e.g. Morwitz, 1997), the authors distinguish between and examine two forms of intention-behavior consistency simultaneously (using a sample selection model) and obtain more reliable conclusions. Moreover, the study's large-scale two-round survey had obtained individual-level purchase behavioral outcomes, which allowed the authors to measure each consumer's IBC at both category and product levels. More importantly, the authors show the opposite effects of consumer knowledge on the two forms of intention-behavior consistency.

Details

Marketing Intelligence & Planning, vol. 41 no. 7
Type: Research Article
ISSN: 0263-4503

Keywords

Article
Publication date: 1 February 2003

Fredrik Lange, Sara Selander and Catherine Åberg

When consumers fulfill consumption goals they make decisions on first, from which product category to buy, and second, which brand to purchase within the product category. In this…

1772

Abstract

When consumers fulfill consumption goals they make decisions on first, from which product category to buy, and second, which brand to purchase within the product category. In this article, the relative effects of productlevel typicality and brand‐level typicality on goal‐driven consumer choice are examined. Which level of typicality is more diagnostic of choice? Empirical results show that consumers are, in goal‐derived usage contexts, more likely to choose a less typical and less favored brand from a typical product category than a typical and more favored brand from a less typical product category. Consequently, brands that consumers perceive as inferior may be chosen over superior brands because of the link between product categories and usage contexts. Our results indicate that it may be fruitful for marketers to associate brands and product categories with usage contexts, and that they need to consider brand competitors from other product categories.

Details

Journal of Product & Brand Management, vol. 12 no. 1
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 1 November 2011

Oscar Martín Martín and Julio Cerviño

The purpose of this paper is to propose a framework integrating the types and levels of the determinants of brand country of origin (CO) recognition and to provide evidence on…

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Abstract

Purpose

The purpose of this paper is to propose a framework integrating the types and levels of the determinants of brand country of origin (CO) recognition and to provide evidence on internet users’ brand CO recognition rates, using a sample of multi‐regional and global brands from a variety of product categories and countries.

Design/methodology/approach

The authors integrate “level‐1” consumer and brand characteristics and “level‐2” product category and country effects in a single framework. Data obtained through an original on‐line survey hosted by Yahoo provide the basis for the empirical analysis. Seven hypotheses are tested using a two‐level cross‐classified random‐effect model (HCM2).

Findings

It is found that: education is positively related with brand CO recognition; experience with brands is positively related with brand CO recognition; integration between the consumer and the country of a foreign brand is positively related with brand CO recognition; internet users’ classification performance is significantly better for domestic than for foreign brands; brand‐name congruence with true brand origin is positively related with brand CO recognition; brand equity explains brand CO recognition; and product categories with higher consumer involvement enhance brand CO recognition. Brand CO recognition performance by internet users is in line with classification performance rates reported in other studies dealing with well‐known and global brands.

Practical implications

Managers would benefit from considering product category and country aspects of their most valuable brands. Policy makers should encourage firms to promote a clear association between brands and countries (when these countries have a positive image) and discriminate between high and low involvement product categories.

Originality/value

The paper contributes to the brand CO awareness literature by integrating consumer and brand characteristics in a theoretical model, and identifying level‐2 product category features and CO effects previously disregarded in brand CO recognition frameworks. In addition, the study positively contrasts with previous research by providing empirical evidence on brand CO recognition from the largest set of global brands (109), countries of origin (19) and product categories (15) ever investigated.

Details

International Marketing Review, vol. 28 no. 6
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 10 January 2020

Murat Akpinar

This paper aims to clarify the fit of competitive strategies and firm-specific advantages (FSAs) with country-specific advantages (CSAs) in explaining manufacturing location…

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Abstract

Purpose

This paper aims to clarify the fit of competitive strategies and firm-specific advantages (FSAs) with country-specific advantages (CSAs) in explaining manufacturing location choices at product category level in the European automotive industry.

Design/methodology/approach

Seven hypotheses are formulated and tested using binomial logistic regression with data from 148 passenger car models (i.e. product category level) that are sold in Europe and manufactured in countries that offer CSAs of either cost advantages or differentiation advantages. The first four hypotheses test manufacturing location choices of product categories pursuing cost leadership strategy, differentiation strategy, focus strategy and hybrid strategy. The other three hypotheses test whether FSAs of R&D capability, marketing capability and operations capability will impact on the manufacturing location choice. The tests control for the type of passenger cars as well as the manufacturer’s region of origin.

Findings

While pursuing cost leadership strategy leads to manufacturing in countries that offer cost advantages, pursuing differentiation strategy as well as strong R&D capability and marketing capability result in manufacturing in countries that offer differentiation advantages. Focus strategy, hybrid strategy and operations capability do not have an impact on the manufacturing location choice at product category level.

Research limitations/implications

Conducting empirical research at product category level is subject to limitations in the choices of FSAs due to lack of availability of data.

Practical implications

Managers should assess the competitive strategies and FSAs of their product categories and then decide about manufacturing locations based on their fit with host country CSAs. Policymakers should understand the CSAs of their countries and target to attract manufacturing FDI from product categories with matching competitive strategies and FSAs.

Originality/value

The research contributes to discussions in explaining manufacturing location choices. Its originality lies in being the first study to test the fit of competitive strategies and FSAs of product categories with CSAs.

Details

Competitiveness Review: An International Business Journal , vol. 30 no. 3
Type: Research Article
ISSN: 1059-5422

Keywords

Article
Publication date: 1 November 2011

Ting‐Hsiang Tseng and George Balabanis

The purpose of this paper is to test the applicability of product typicality in explaining the product‐specificity of country of origin (COO) effects.

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Abstract

Purpose

The purpose of this paper is to test the applicability of product typicality in explaining the product‐specificity of country of origin (COO) effects.

Design/methodology/approach

To help select stimuli used in the study, two dimensions of product typicality regarding COO images were created. A total of 416 participants from a business school in Taiwan participated in this experiment and rated their perceived COO images and attitudes towards specific products from select countries.

Findings

The results indicate that product typicality can help explain the discrepancies between COO images across products from a country, and across COOs of a product. Typical products received more favourable consumer attitudes and stronger COO images than atypical ones. This study also manipulated two other factors, product type and product category level. While product type had no significant impact on the effects of typicality, tests on product category level revealed enhanced effects for subordinate product categories.

Originality/value

The study provides a stepping stone towards the development of a general theory of COO. By testing the effects of a category‐based concept, typicality, in the context of the COO image, this study formally testifies the applicability of categorisation theories on COO effects, which may provide informative sources for the future development of COO studies. Based on the rationale of typicality, this study also tests the possible moderation effects of product types and category levels.

Details

International Marketing Review, vol. 28 no. 6
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 1 June 1998

Hooman Estelami

For over a quarter of a century, the television game showThe Price Is Right has been testing American consumers’ knowledge of prices for a wide array ofproducts. The settings of…

3047

Abstract

For over a quarter of a century, the television game show The Price Is Right has been testing American consumers’ knowledge of prices for a wide array of products. The settings of this highly popular game show allow for a broad examination of the extent of price knowledge consumers possess across product categories. Much of our current perspective on consumer price knowledge has been limited by a restricted choice of product categories studied, and a lack of significant respondent incentives for providing accurate price responses. Using data from hundreds of contestants, highly motivated to provide accurate price estimates, this paper studies the impact of product‐ and consumer‐related factors on consumer price knowledge across 29 product categories.

Details

Journal of Product & Brand Management, vol. 7 no. 3
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 6 September 2013

Ho Huy Tuu and Svein Ottar Olsen

The purpose of this paper is to explore the combined moderator role of consideration set size (CSS) and variety seeking (VS) on the satisfaction-loyalty relationship, and uses…

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Abstract

Purpose

The purpose of this paper is to explore the combined moderator role of consideration set size (CSS) and variety seeking (VS) on the satisfaction-loyalty relationship, and uses theories and findings mostly from the brand literature to test some hypotheses at a product category level.

Design/methodology/approach

The authors use survey data of 487 Vietnamese consumers in a food context. A structural equation modelling (SEM) approach for moderator analysis with latent constructs is used to test the hypotheses.

Findings

CSS has a positive effect on CRL, while VS has a negative effect on CRL. CSS is found to have a positive moderator effect on the category satisfaction-category repurchase loyalty relationship. More interestingly, CSS still interacts with VS to positively influence this relationship.

Research limitations/implications

The object and setting of this study is limited to one product category in one market. The nature of causality is problematic due to the use of survey design.

Practical implications

Those findings imply that a product category extension with alternatives providing complementary benefits will have a higher chance of success with satisfied consumers, especially those with high VS, than with less satisfied consumers.

Social implications

The study recommends that people should vary their diet to achieve different kinds of vitamins, minerals and tastes for their health. Similarly, the tourism industry should satisfy tourists ' variety-seeking needs by exploring new categories.

Originality/value

This study contributes to the literature by discussing and highlighting positive moderator effects of CSS and VS on the satisfaction-loyalty relationship at a product category level. The findings are contrast with brand literature which confirms negative moderator effects of CSS and VS on this relationship.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 25 no. 4
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 11 December 2019

Maryam Tofighi, Bianca Grohmann and H. Onur Bodur

This paper aims to examine to what extent congruity between ethical attributes (i.e. product attributes with positive implications for the environment, human rights, social issues…

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Abstract

Purpose

This paper aims to examine to what extent congruity between ethical attributes (i.e. product attributes with positive implications for the environment, human rights, social issues and animal welfare) and brand concept (i.e. the unique meaning associated with a brand in consumers’ minds) influences consumers’ evaluations of brands offering ethical attributes.

Design/methodology/approach

Four studies involving North American consumers empirically tested the moderation effect of brand concept on consumer evaluations of ethical attributes and the mediating role of perceived congruity.

Findings

This research finds an interactive effect of ethical attribute type and brand concept on brand evaluations, such that congruent ethical attribute–brand concept pairings (i.e. a utilitarian [symbolic] ethical attribute offered by a brand with a utilitarian [symbolic] brand concept) result in more favorable brand evaluations (Studies 1, 2, 3 and 4). Consumers’ perceptions of congruity between ethical attributes and brand concepts mediate this interactive effect (Studies 2 and 3). Moreover, a positive congruity effect of ethical attributes and brand concepts emerges at higher levels of conspicuous brand consumption (Study 4).

Research limitations/implications

It is important to acknowledge that the current research did not specifically consider the case of utilitarian and symbolic ethical attribute offerings by luxury brands. This is a question that is left to future investigations.

Practical implications

For marketing managers, findings indicate that brands gain from ethical attribute introductions only when these attributes are congruent with the brand concept. In addition, brands benefit to a greater extent from offering congruent ethical attributes when brand consumption is conspicuous.

Originality/value

The findings of this research contribute to the literature on the effect of ethical attributes on consumers’ responses to brands and highlight the importance of brands’ choice of ethical attributes.

Details

European Journal of Marketing, vol. 54 no. 1
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 1 June 2005

Ronald Drozdenko and Marlene Jensen

Studies on optimal discount levels have sometimes yielded contradictory results, leaving practitioners with unclear direction. This paper proposes clarifying the optimum discount…

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Abstract

Purpose

Studies on optimal discount levels have sometimes yielded contradictory results, leaving practitioners with unclear direction. This paper proposes clarifying the optimum discount levels.

Design/methodology/approach

This study asked 453 consumers to choose their own optimal discount levels (from 0‐80 percent) for eight product categories across two distribution channels (physical store and online merchant). Then they were asked if the reason if they did not always select the deepest discount.

Findings

Only 13 percent selected the 80 percent discount level for each product and each channel, despite seeing the exact price they would pay at each level. In support of attribution theory, 88 percent of the consumers attributed at least one cause for the deepest discounts. Most frequently cited were concerns about quality problems, damaged goods, or stolen goods. Consumers also opted for lower discount levels from the online merchant than from the physical store. There was a wide divergence by product category, with consumers selecting smaller discounts on tires and cereal and the deepest discounts on shirts.

Research limitations/implications

Given the divergence across product categories, it is unknown how consumers would respond to categories not studied.

Practical implications

This paper has revealed strong consumer perceptions about discount risks and the tradeoffs consumer make between risk and financial benefit across different product categories, both online and off – which can help marketing practitioners in setting discount levels.

Originality/value

By allowing consumers to select their own preferred discount levels, it is shown that most customers attribute some risk to them.

Details

Journal of Product & Brand Management, vol. 14 no. 4
Type: Research Article
ISSN: 1061-0421

Keywords

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