In the automobile industry, managers must demonstrate to CEOs and CFOs the impact of new product introductions on their firm's financial performance and stock market value. Yet these efforts are often hampered by the subjectivity of performance assessments and by the use of different time frames for evaluating performance impacts. In this study, the authors apply econometric methods to overcome…
Higher sales and margins are key goals for retailers promoting emerging products, such as organics, but little is known about their marketing effectiveness and their cross-effects on conventional product sales. Extant research reports conflicting results about price and promotional sensitivity for organic products and does not address the impact of organic assortment. This article calculates lo…
The authors study the effect of word-of-mouth (WOM) marketing on member growth at an Internet social networking site and compare it with traditional marketing vehicles. Because social network sites record the electronic invitations from existing members, outbound WOM can be precisely tracked. Along with traditional marketing, WOM can then be linked to the number of new members subsequently join…
The authors develop an econometric model of the relationship between a household's private-label (PL) share and its behavioral store loyalty. The model includes major drivers of these two behaviors and controls for simultaneity and nonlinearity in the relationship between them. The model is estimated with a unique data set that combines complete purchase records of a panel of Dutch households w…
Although retail price wars have received much business press and some research attention, it is unclear how they affect consumer purchase behavior. This article studies an unprecedented price war in Dutch grocery retailing that started in fall 2003, initiated by the market leader to halt its sliding market share. The authors investigate the short- and long-term effects of the price war on store…
The authors develop a conceptual framework of the factors that motivate a retailer's decision to rely on demand conditions and past prices in setting current and future prices. Specifically, they examine the circumstances under which retailers choose demand-based pricing versus past-price dependence for different brands and categories. Given scarce resources and costs of price adjustments, dema…
Although managers often hope to obtain long-term benefits with temporary marketing actions, academic studies imply that their chances are slim. Extant research has implicitly assumed that the brand itself carries no influence over whether marketing promotions have the power to lift sales permanently. Using panel data for seven years from 100 brands across seven product categories, the authors e…
Moving from free to "free and fee" for any product or service represents a challenge to managers, especially when consumers have plenty of free alternatives. For one online content provider, this article examines (1) the sources of long-term revenue loss (through attracting fewer free subscribers) and (2) how the firm's marketing actions affect its revenue gains (through attracting paid subscri…
In the automobile industry, managers must demonstrate to CEOs and CFOs the impact of new product introductions on their firm's financial performance and stock market value. Yet these efforts are often hampered by the subjectivity of performance assessments and by the use of different time frames for evaluating performance impacts. In this study, the authors apply econometric methods to overcome…