Drivers of Local Relative to Global Brand Purchases: A Contingency Approach.

Journal of International Marketing (2015), 23 (1), 1-22.

Yuliya Strizhakova and Robin A. Coulter

As globalization has ensued, consumers around the world are increasingly making choices between global brands (sold under the same name in multiple countries around the world), and local brands (sold under a given name in one country or local region). Historically, local brands, particularly in emerging markets, were viewed as low quality and unappealing, but with the increased prevalence of global brands, local brands have become more competitive alternatives that signal originality, local cultural connections, pride and prestige. Notably, local brands are steadily gaining market share in India, China, Russia, and Brazil.Continue Reading

On the Brink: Predicting Business Failure with Mobile Location-based Checkins.

Decision Support Systems, 2015.

Joseph Pancras (Marketing). Co-authors: Ram Gopal (OPIM), Ramesh Shankar (OPIM), Lei Wang (Penn State University)

Consumers are increasingly using mobile services for engaging with firms in the offline world both directly through purchases and loyalty points redemptions, and indirectly through mobile gamification portals related to the retail outlet. One major such portal is Foursquare, the location-based service provider, which has been gaining popularity in the last few years. Continue Reading

Managing Customer Acquisition Risk Using Co-operative Databases.

Journal of Interactive Marketing, Volume 29, February 2015, Pages 39-56.

Authors: Hongju Liu and Joseph Pancras (Marketing). Co-author: Malcolm Houtz (Alliant Inc)

Firms typically have detailed information only about their own customers. In order to gain a broader view of customers across firms, several firms may pool their data together and engage an intermediary called a co-operative database firm to manage and analyze the pooled data to provide better targeting solutions for the firms. In this paper Professors Liu and Pancras study these interesting intermediaries by developing a framework for firms to manage customer acquisition risk using co-operative databases.Continue Reading

Investigating the Impact of Customer Stochasticity on Firm Price Discrimination Strategies using a New Bayesian Mixture Scale Heterogeneity Model

Marketing Letters, 2015, 1-16.

Joseph Pancras (Marketing) and Dipak K. Dey (Statistics) Co-author: Xia Wang (University of Cincinnati)

Targeted marketing is increasingly popular among new media firms and accurate targeting requires well-calibrated statistical models which will identify customer preferences from their previous historical transactions so as to customize an offering to their needs. A typical example of such targeted marketing is customized pricing, where a price sensitive customer is given a coupon with a higher face value, while a less price sensitive or brand loyal customer may be given a lower face value or no coupon at all. Continue Reading

Shared and Connected: Interpersonal Relationships and Shared Brands

Brands and Brand Relationships (BBR) Conference, May 2015, Boston MA
Selcan Kara and Anna J. Vredeveld

Selcan Kara, doctoral candidate in Marketing, presented her work entitled “Shared and Connected: Interpersonal Relationships and Shared Brands” (Co-author: Anna J. Vredeveld) at Brands and Brand Relationships (BBR) Conference in Boston, MA. Kara and Vredeveld’s research examines how married consumers form relational brand connections. Findings show how shared brand consumption and marital satisfaction influence the nature of the consumer’s connection to the brand and the perceived importance of the brand to the marital relationship.  From a theoretical perspective, Kara and Vredeveld examine the effect of how consumers incorporate brands into their personal relationships (experiential vs. mundane), and resulting shared brand consumption, on consumers’ brand evaluations. From a managerial perspective, the findings address important implications especially in the advertising domain.

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An Empirical Model of Drug Detailing: Dynamic Competition and Policy Implications

Management Science, forthcoming

Hongju Liu. Co-authors: Qiang Liu, Sachin Gupta, and Sriram Venkataraman

Although the pharmaceutical industry is mainly driven by innovation, it spends an enormous amount of money on marketing. Among various marketing vehicles, detailing – personal selling through representatives – accounts for the single largest expenditure. The vast amount of detailing spending in the pharmaceutical industry has drawn the attention of the public and of policy makers. As a result, the practice of detailing in the marketing of prescription drugs is undergoing significant changes. Continue Reading

How Competitor Brand Names Affect Within-Brand Choices

Marketing Letters (forthcoming)

Kunter Gunasti and Berna Devezer

In a recent research forthcoming at Marketing Letters, Dr. Gunasti and his co-author show that consumer choices among different models of a brand name can be affected by exposure to a competitor brand name that forms an incidental trend with the numbers in the focal brand names. For instance, a consumer shopping for a Mercedes and trying to choose between a Mercedes C330 vs. C340 can be exposed to a competitor brand such as a BMW 320i, which increases the chances that he will leave the store with the higher number focal brand Mercedes C340. Although the competitor brand is not even available to choose and it is not considered, its mere presence seems to affect consumers’ focal choices.Continue Reading

Faculty Research: A Firm-Driven Approach to Global Governance and Sustainability

American Business Law Journal (forthcoming)

Stephen Park and Gerlinde Berger-Walliser.

The multifaceted role of multinational corporations as quasi-regulators is of growing importance to international business. Corporations increasingly participate in two kinds of international rulemaking: (i) non-binding “soft” law standard setting; and (ii) self-regulation through private rules and standards. Soft law and private regulation often fill governance gaps left by incomplete and/or ineffective governmental regulation. One of the most prominent examples is sustainability rulemaking, in which corporations have become increasingly active due to their growing awareness of the directly-borne costs of environmental degradation and the potential strategic benefits of corporate social responsibility.Continue Reading

How to Navigate the Five Pathways of Corporate Legal Strategy

MIT Sloan Management Review (forthcoming)

Robert Bird. Co-author: David Orozco

CEOs, board members and executives are forced to navigate increased regulation, lawsuits, varying international legal regimes, and the greater prospect of liability due to stiffer legal penalties.  Top executives recognize that legal capabilities are a necessary element of long-term corporate success. A Financial Times study found that 24 percent of U.S. companies had lawyer-directors in 2000, and in 2009 that amount notably increased to 43 percent. Corporations generate tangible returns, such as higher stock market valuations, when they employ attorneys who serve as board members, and when top corporate officers have legal knowledge.

Paradoxically, the processes through which corporate legal departments provide competitive advantage remain poorly understood. The law is all too often viewed as a constraint on managerial decisions and is often perceived by executives as a source of costs. This prevailing cost perspective towards the law, while valuable, does not explain how leading companies employ their legal departments to secure long-term competitive advantage for the firm.

Robert Bird and his co-authors explain how viewing the law narrowly as a cost or compliance issue inevitably leads to foregone strategic opportunities, and introduce an actionable framework, the Five Pathways of Corporate Legal Strategy: avoidance, compliance, prevention, value, and transformation. These pathways should enable managers to think about the law strategically and identify value-creating opportunities, thereby creating long-term and sustainable value. Legal rules are not just a checklists to complete, but an opportunity to advance firm goals in a competitive business environment.

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The Relationship between Consumer Characteristics and Willingness to Pay for General Online Content: Implications for Content Providers Considering Subscription-based Business Models

Marketing Letters (forthcoming)

Girish N. Punj.

“People hate, hate, hate to subscribe to things on the Internet” (Bill Gates, 2005)

Over the past decade, there has been a substantial increase in the demand for online content, but there has been little change in consumers’ willingness to pay for it.Continue Reading