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Article
Publication date: 4 November 2014

Harlan E. Spotts, Marc G. Weinberger and Michelle F. Weinberger

– The purpose of this research is to understand the relationship between publicity, advertising activity and corporate sales in the context of a company’s existing reputation.

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Abstract

Purpose

The purpose of this research is to understand the relationship between publicity, advertising activity and corporate sales in the context of a company’s existing reputation.

Design/methodology/approach

The study brings together four unique industry datasets and uses discriminant analysis and multiple regression methods to examine the relationship between existing corporate reputation, publicity, advertising activity and sales levels for major multi-national companies in the technology products sector.

Findings

Positive publicity is most important in distinguishing between firms with higher and lower sales. The effects of negative publicity and advertising are dependent on a firm’s existing reputation. For companies with weaker reputations, positive publicity in tandem with business-to-consumer (B2C) advertising is most highly associated with higher company sales. Conversely, for firms with stronger existing reputations, advertising has a significantly diminished role; positive and even negative publicity are most crucial in distinguishing between companies with high and low sales. Negative publicity can be harmful to these firms though if it is not balanced by more positive publicity. Finally, the topic of news coverage is related to sales. Generally, stories that are positive reporting on business outcomes, leadership and business future and marketing practices are most important in discriminating between firms with stronger vs weaker sales.

Practical implications

For this set of technology product firms, publicity and advertising are relevant for sales. Firms with higher levels of sales have both more positive and negative publicity, but the volume of positive stories is much higher. Attracting negative publicity is common for firms that achieve higher sales, but it is offset by a greater number of positive stories, an aspect that public relations efforts can influence. B2C advertising spending meanwhile matters more for firms with weaker rather than stronger existing corporate reputations. It is most effective for firms with weaker existing reputations to maximize the positive signals in the marketplace as exemplified by positive publicity and B2C advertising efforts.

Originality/value

Little research has examined the relationship between different forms of corporate communications and sales; this study is a rare examination using publicity, advertising spending, existing reputation and sales in a durable goods and services context where there has been a particular dearth of even basic advertising studies. Beyond understanding the relative importance of publicity v. advertising, it also uniquely focuses on the individual topics of news publicity.

Details

European Journal of Marketing, vol. 48 no. 11/12
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 1 June 2000

George K. Chako

Briefly reviews previous literature by the author before presenting an original 12 step system integration protocol designed to ensure the success of companies or countries in…

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Abstract

Briefly reviews previous literature by the author before presenting an original 12 step system integration protocol designed to ensure the success of companies or countries in their efforts to develop and market new products. Looks at the issues from different strategic levels such as corporate, international, military and economic. Presents 31 case studies, including the success of Japan in microchips to the failure of Xerox to sell its invention of the Alto personal computer 3 years before Apple: from the success in DNA and Superconductor research to the success of Sunbeam in inventing and marketing food processors: and from the daring invention and production of atomic energy for survival to the successes of sewing machine inventor Howe in co‐operating on patents to compete in markets. Includes 306 questions and answers in order to qualify concepts introduced.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 12 no. 2/3
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 20 November 2023

Madhuri Prabhala and Indranil Bose

While there has been extensive research on understanding the effects of online reviews on product sales, there is not enough investigation of the inter-relationships between…

Abstract

Purpose

While there has been extensive research on understanding the effects of online reviews on product sales, there is not enough investigation of the inter-relationships between online reviews, online search and product sales. The study attempts to address this gap in the context of the Indian car market.

Design/methodology/approach

The research uses text mining and considers six important review features volume, valence, length, deviation of valence, sentiment and readability within the heuristic and systematic model of information processing. Panel data regression is used along with mediation analysis to study the inter-relationships between features of reviews, online search and sales.

Findings

The study finds that numerical heuristic features significantly affect sales and online search, numerical systematic feature affects sales and the textual heuristic and systematic features do not affect sales or online search in the Indian car market. Further, online search mediates the association between features of reviews and sales of cars.

Research limitations/implications

Although only car sales data from India is considered in this research, similar relationships between review features, online search and sales could exist for the car market of other countries as well.

Originality/value

This research uncovers the unique role of online search as a mediator between review features and sales, whereas prior literature has considered review features and online search as independent variables that affect sales.

Details

Industrial Management & Data Systems, vol. 124 no. 2
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 22 June 2012

W. Paul Spurlin, Bonnie F. Van Ness and Robert Van Ness

The purpose of this paper is to study short sales trading as part of the New York Stock Exchange (NYSE) batch open and National Association of Securities Dealers Automated…

Abstract

Purpose

The purpose of this paper is to study short sales trading as part of the New York Stock Exchange (NYSE) batch open and National Association of Securities Dealers Automated Quotations (NASDAQ) opening cross. The paper examines whether short transactions at the open can predict future returns.

Design/methodology/approach

The study tests to see if short transactions in the NYSE opening batch trade and NASDAQ opening cross are informative of future returns.

Findings

It is found that a stock's opening‐trade short volume is predictive of its short volume for the rest of trading day, positively related to its previous‐day price change, and positively related to its overnight price change at the opening trade on option‐expiration Fridays when the stock is part of the Standard and Poor (S and P) 500 index.

Originality/value

While previous research shows that intraday short sale trades are informative, this is the first paper to examine the opening trade of the day, and whether these short sales are informative.

Details

International Journal of Managerial Finance, vol. 8 no. 3
Type: Research Article
ISSN: 1743-9132

Keywords

Article
Publication date: 28 March 2008

Michael Etgar and Dalia Rachman‐Moore

The purpose of this paper is to examine the effects of international expansion on the sales volumes of large‐scale retailers.

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Abstract

Purpose

The purpose of this paper is to examine the effects of international expansion on the sales volumes of large‐scale retailers.

Design/methodology/approach

Sales data of 200 largest retailers from around the world reported in the 2004 Deloitte “Global Retail Power” survey were analyzed with regression analyses.

Findings

It was found that: even though internationalization makes a positive contribution to retailers' sales volumes its impact is small; this effect is not impacted by the moderating factor of the degree of retailer specialization along product lines; while another moderating factor, namely the identity of the retailer's country of origin, does make a difference.

Research limitations/implications

The research methodology and the nature of the data precluded the use of more “soft” measures such as measures of managerial cognitions, perceptions and attitudes to analyze their impact on the effectiveness of internationalization for retailers. The research used cross‐sectional data and further research should compare results in additional time points to capture the possible dynamic changes in this industry.

Practical implications

Retailers seeking to expand their sales volumes should not rely too much on internationalization but consider also other strategic options. They should therefore analyze carefully whether large investments in overseas operations are justified. This is particularly relevant for US retailers.

Originality/value

This paper focuses on the issue of internationalization as a viable retail strategy to achieve larger sales volumes. The study reaches its conclusions on the basis of an analysis of data from a large population of diverse, domestic‐only and international retailers from around the world from different sectors and countries of origin, who – the international retailers – operate in different countries.

Details

International Journal of Retail & Distribution Management, vol. 36 no. 4
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 1 December 2004

Nora Lado, Ester Martínez‐Ros and Ana Valenzuela

This study develops a model that explains export sales volume by destination based on a company's export marketing strategy. A seemingly unrelated regression model (SURE…

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Abstract

This study develops a model that explains export sales volume by destination based on a company's export marketing strategy. A seemingly unrelated regression model (SURE) simultaneously estimates the explanatory value of the different elements of the marketing strategy, as well as company characteristics, such as experience, size and motivation to export, on entry decisions to six different regional markets made by exporting companies in a southern European country. The data were collected from a sample size of 2,264 exporting companies. Findings confirm the importance of exporting experience and proactiveness in determining high export sales volumes in every regional market except for those psychologically close. Nevertheless, different marketing strategies depending on the region lead to high export sales volumes. For example, low price strategies in the case of Latin America or differentiation strategies based on the augmented product in the case of the USA generate high export sales. Promotional expenditures are of higher importance for distant markets, but for closer markets channel development is the key.

Details

International Marketing Review, vol. 21 no. 6
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 23 November 2020

Ho Kim

This paper aims to examine whether a film’s search volume causes its ticket sales in different stages of its lifecycle.

Abstract

Purpose

This paper aims to examine whether a film’s search volume causes its ticket sales in different stages of its lifecycle.

Design/methodology/approach

This study tests the causality between searches and sales by using an instrumental variable approach. This study exploits the ideas that consumers’ perception of a product’s consumption risk is correlated with their search efforts and consumers use multiple information sources to infer a product’s consumption risk. As an instrument for a focal film’s search volume, this paper uses review disagreement for past movies related to the focal film. This paper incorporates the ideas in a model of weekly online search volume and revenues and apply it to a movie data set.

Findings

Films’ search volume influences their revenues only until the opening week. A 10% increase in opening-week search volume generates a 7.4% increase in opening-week revenue, while the same increase in pre-launch search volume generates a 4.1% increase. Although searches are not an influencer of sales from the second week on, the random forest models and cross-validation studies find that weekly search volume is a strong predictor of weekly revenues in this period.

Research limitations/implications

Testing the findings in other product categories is important for generalizing the findings.

Practical implications

This study suggests different usage values for online searches, depending on a film’s lifecycle stages. Furthermore, given that review disagreement has a positive influence on opening-week revenue through searches, managers should encourage diverse opinions about their films until the opening week to increase sales through searches.

Originality/value

Regarding the role of online search, previous studies have maintained the perspective that online search is a predictor of sales. This is the first study that finds causality between searches and sales for films.

Article
Publication date: 1 June 2004

Erkki K. Laitinen

The study develops a mathematical model of the firm to derive theoretical foundations for the balanced scorecard concept (BSC). The model is based on several parts which are…

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Abstract

The study develops a mathematical model of the firm to derive theoretical foundations for the balanced scorecard concept (BSC). The model is based on several parts which are integrated into a company model. This model includes the demand function, the production function and the objective function of the firm which are depicted by traditional microeconomic concepts. Demand is presented as a function of price and customer relationship management (CRM) costs. Production is assumed to depend on labor, capital, and development and learning (D&L) costs. Simple dynamics is included both in the demand and production function. The strategy of the firm is depicted by the objective function based on profit and net sales. The output variables of the model are classified as the four perspectives of BSC. The effects of the objectives (strategies) on the importance (shadow prices) of the constraints are analysed. It is shown that a change in the objectives may alter the order of their importance. Thus, a change in the strategy should be accompanied with a change in the focus of BSC. Furthermore, non‐financial and financial performance ratios may change in opposite directions, when the strategy is shifted towards revenue maximization. Thus, inconsistencies with the interpretation of cause and effects may emerge, when the strategy is shifted. Numerical examples are presented to demonstrate the results.

Details

Managerial Finance, vol. 30 no. 6
Type: Research Article
ISSN: 0307-4358

Keywords

Article
Publication date: 9 November 2012

Joonhyuk Yang, Wonjoon Kim, Naveen Amblee and Jaeseung Jeong

Previous literature on WOM has consistent findings on the positive and significant effect of WOM volume on product sales, but the literature on WOM valence has been mixed. In this…

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Abstract

Purpose

Previous literature on WOM has consistent findings on the positive and significant effect of WOM volume on product sales, but the literature on WOM valence has been mixed. In this study, the authors aim to explain the reason for the mixed effect of WOM valence on product sales by considering heterogeneous characteristics of products, especially in the movie market, by segmenting products into mainstream and non‐mainstream movies.

Design/methodology/approach

This study uses empirical data from the motion picture industry, such as box office revenue, WOM volume and valence, and other variables of movie characteristics. The hypothesis is tested using OLS and panel data analysis in econometric methods.

Findings

The authors find a significant effect of WOM valence on box office revenue only in the case of non‐mainstream movies, which have relatively smaller marketing budgets than mainstream movies. The findings suggest that as marketing communication channels become more diverse, with larger marketing budgets, the effect of online WOM valence on product sales can be diluted. In addition, it is found that the effect of WOM volume on box office revenue is greater for mainstream movies, suggesting that consumers build higher credibility on products with larger sales or WOM volume, especially for experience goods with uncertain quality.

Practical implications

The findings explain the weak relationship between WOM valence and product sales, which has been controversial in the WOM literature, and broaden the understanding of the effect of WOM on product sales.

Originality/value

The relationship between WOM valence and sales and, consequently, the revenue of a good has not been clearly understood, considering the heterogeneous characteristics of consumers in previous literature. In this study, it is found that WOM volume and valence have different effects on product sales, corresponding to differences in product category. The findings suggest a reason for the weak relationship between WOM valence and product sales, which has been controversial in the WOM literature.

Details

European Journal of Marketing, vol. 46 no. 11/12
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 8 October 2018

Mohamed N. Darghouth and Anis Chelbi

The purpose of this paper is to present a decision model for second-hand products to determine the optimal upgrade level, warranty period and preventive maintenance (PM) effort…

Abstract

Purpose

The purpose of this paper is to present a decision model for second-hand products to determine the optimal upgrade level, warranty period and preventive maintenance (PM) effort level which maximize the total expected profit generated by the dealer considering any given past age of the product and the effect of the sales volume.

Design/methodology/approach

A mathematical model is developed to derive the optimal triplet: upgrade level, warranty period and PM effort level, which maximize the total expected profit generated by the dealer for any second-hand product with a given past age. Numerical experimentations have been conducted to investigate the effectiveness of the proposed model and to explore the interactions among the model variables.

Findings

Numerical experimentations including a sensitivity analysis have been conducted on the model key parameters. The obtained results show that performing PM actions during the warranty period helps the dealers to provide extended warranty for older second-hand products without spending a significant effort on upgrade actions and therefore increase the volume of sales. Also, the interaction between the PM level and the profit margin threshold is demonstrated. Finally, the effect of the sales volume function parameters (the price and warranty elasticity parameters) on the optimal solution is characterized.

Research limitations/implications

Given the complexity of the profit function to be maximized involving a considerable number of decision variables with different nature, the authors limited the study to the case where the past age of the second-hand product is known.

Practical implications

The proposed model aims to provide second-hand product dealers with a modeling framework that enables them to have a realistic estimation of the generated profit by integrating the marketing and engineering key parameters of the second-hand product.

Originality/value

Most of the existing literature dealing with the reliability improvement of second-hand products does not take into account the fact that a realistic estimation of the total profit generated by the dealer requires the consideration of the sales volume. The latter is closely related to the marketing parameters characterized by the warranty period length and the second-hand product selling price. The proposed model introduces the effect of the total sales volume on the total expected profit. The authors also introduce the concept of discrete upgrade levels for a better control of the restoration degree. The authors study the impact of warranty and price elasticity parameters on the optimal solution and the resultant interaction with the customer purchase decision and consequently the sales volume.

Details

Journal of Quality in Maintenance Engineering, vol. 24 no. 4
Type: Research Article
ISSN: 1355-2511

Keywords

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