Research linking marketing to financial performance has predominantly focused on how marketing assets and actions add value. The authors argue that it is equally important to understand how marketing decisions can reduce firm value. Prior research has indicated that negative events vary greatly in their indirect costs to the firm. On the basis of established theory and in-depth interviews with …
There is much evidence that the presence of a feature advertisement can increase the sales and market share of the featured product. However, little is known about how feature ad characteristics (e.g., size, color, and location of the advertisement) affect the sales outcomes and how the effects take place. Prior research has predicted that feature advertisements lead to behavioral outcomes thro…
We construct a model of a firm competing for market share in a customer market and making investments in physical capital. The firm is financially constrained and there are implementation lags in investment. Our model predicts that product prices should depend on costs and competitors' prices but respond weakly to demand shocks. Also, prices should be strongly related to investment. We estimate…
The authors propose a simulated maximum likelihood estimation method for the random coefficient logit model using aggregate data, accounting for heterogeneity and endogeneity. The method allows for two sources of randomness in observed market shares: unobserved product characteristics and sampling error. Because of the latter, the method is suitable when sample sizes underlying the shares are f…
Researchers disagree about the critical drivers of success in and efficiency of high-tech markets. On the one hand, some researchers assert that high-tech markets are efficient with best-quality brands being dominant. On the other hand, many scholars suspect that network effects lead to perverse markets in which the dominant brands do not have the best quality. The authors develop scenarios abo…
A case study of the response to chronic excess capacity in a small competitive industry (the manufacturing of clay bricks) permits a generalization of Bower's concentration hypothesis. Barriers to exit produced a free rider problem where only smaller and lower quality brick plants were shut when the efficient solution demanded major closures. The exit logjam was resolved by the strategic action…
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…
Building on the resource-based view of the firm, we advance the idea that a firm's customer network can be a strategic asset. We suggest that network effects are a function of network size (i.e., installed customer base) and network strength (i.e., the marginal impact of a unit increase in network size on demand). We empirically study these network effects in the 16-bit home video game industry…
Bronenberg, Dhar, and Dube (2007), show that there is a large geographic variation in market shares and perceived quality levels of a large sample of "national" and "regional" brands across many consumer packaged goods categories. They demonstrate that their geographical findings are new to academics. This note shows that practitioners have been ahead of academics in this basic understanding. T…
There are ample reasons for geographic variation in brand share to persist. This comment highlights intentional strategies and feedback loops. Trade promotion, advertising, coupons, and special events are likely to be differentially allocated on the basis of market position and may have different effectiveness for proportional programs. For example, the same manufacturer discount rate per case …
Using data from 50 US markets, Bronnenberg, Dhar, and Dube (2007) observe that geographic variation is the predominant source of variation in national brand market shares. Moreover, this cross-sectional variation is much larger than cross-time variation. The authors extend this surprising and previously undocumented result in several respects. First, they seek to assess whether this result gene…
The authors describe geographic patterns in the market shares of national brands using a large longitudinal scanner database that spans many consumer packaged goods (CPG) categories and US regional markets. For a typical national brand, the magnitude of the geographic variation in market shares, perceived quality levels, and degree of local dominance places in question the concept and relevance…
Scholars have questioned the effectiveness of several customer relationship management strategies. The author investigates the differential effects of customer relationship perceptions and relationship marketing instruments on customer retention and customer share development over time. Customer relationship perceptions are considered evaluations of relationship strength and a supplier's offeri…
This paper examines the choice of trading venue by dealers in U.S. Treasury securities to determine when services provided by human intermediaries are difficult to replicate in fully automated trading systems. When Treasury securities go "off the run" their trading volume drops by more than 90%. This decline in trading volume allows us to test whether intermediaries' knowledge of the market and…
In spite of the growing interest in sustainable advantages, there has been little effort by strategy researchers to investigate market dominance. In this paper, the extent of dominance by lending firms is linked to the ability to develop and exploit their reputation as a key resource. Results from a wide spectrum of consumer product markets indicate that the advantages that stem from reputation…
This study investigates how participating in strategic alliances with rivals affects the relative competitive positions of the partner firms. The paper builds on studies that show significant differences in the outcomes of scale and link alliances. The study argues that the more asymmetric outcomes of link alliances translate into greater changes in the relative market shares of the partner fir…
The authors propose a new approach to obtaining stockkeeping-unit (SKU)-level preferences and response sensitivities. The authors distinguish an attribute-level model, in which the unit of analysis is the market share for an alternative created by aggregation (e.g., Colgate toothpaste), from a truly disaggregate SKU-level model, and they establish an analytical relationship between parameters t…
Ada tabel. Proyek Peningkatan efisiensi Pasar Modal tahun Anggaran 1997/1998
Ada tabel. Proyek Peningkatan efisiensi Pasar Modal tahu Anggaran 1997/1998
China?s emergence as major economic power in recent years creates wide impact on global economy. China?s magnificent economic growth, partially reflected in export growth, has created a growing concern about the impact it will create on other country. Using panel data from 1993 to 2004 in combination with the gravity model, this paper investigates the possibility that China?s export penetration…