Luxury fashion brand customers’ perceptions of mobile marketing: Evidence of multiple communications and marketing channels

Previous studies have addressed some of the issues of customers' perceptions of mobile marketing, particularly the affordances of multiple communications and channels. Despite a proliferation of studies in this field, the theoretical exploration of luxury fashion customers' perceptions of multiple mobile communications and marketing channels remains at an exploratory stage. Drawing on the elaboration likelihood model and a social constructivist perspective, the current study conducted 37 in-depth interviews with Generation Z mobile luxury customers. We specifically examined how customers' emotionally and cognitively based perceptions emerge as they navigate multiple mobile marketing channels and message communications. Our model conceptualizes four elements of customers' perceptions of their mobile marketing journey that can drive mobile customer engagement and acquisition behavior. The integrative model opens up interesting avenues for further research on mobile marketing and luxury fashion consumers’ perceptions of the effects of multiple communications and marketing channels.     

Cause-Related Marketing: An Exploratory Study of Campaign Donation Structures Issues

ABSTRACT

Over the past decade, cause-related marketing (CRM) has become a popular and unique promotional tool for brands. Academic research indicates outcomes of such campaigns are generally positive for all stakeholders. Consumers feel they are making a difference, firms benefit from improved public image and increased sales, and the cause or nonprofit organization receives increased publicity and funding. However, there are ethical issues involved when linking a firm with a nonprofit organization as well as potential negatives (Smith and Stodghill 1994; Andreasan 1996; Meyer 1999; Polonsky and Wood 2001). An exploratory research study was undertaken to understand the impact of the structural elements of cause-related marketing campaigns, including how the donation is quantified, the size of the donation relative to the price of the product, the presence of donation deadlines and caps, and the level of promotion used to publicize the campaign. Findings suggest that the structural elements of cause-related marketing campaigns do influence consumers' perceptions of the campaigns. Based on these results, implications for CRM campaign managers and future research ideas are provided. This information will help practitioners, including marketing managers, advertising managers and advertising creative professionals to design the most effective communication tactics for a cause-related marketing campaign.     

Weight Watchers: Social Event Centered Marketing

ABSTRACT

This article looks at an international weight loss service company known as Weight Watchers and evaluates the promotional effectiveness of their social event focused business. Secondary research highlights their approach to the marketing mix and the significance of perception within this particular market and the marketing mix per se. Research of their traditional social event based business is reported in terms of the effect of the promotional tools used by Weight Watchers, influences on consumer decision making, consumer behavior, and internal and external factors which influence marketing decisions. The conclusions drawn are that there are significant issues for Weight Watchers to consider in terms of their future approach to the weight loss market. Firstly, the need for Weight Watchers to differentiate themselves further from their competitors and, secondly, to ensure they have distinct differentiation strategies for their social event and online businesses.     

Enriching Customer Value Research with a Relational Perspective

Abstract

Much of the research on customer perceived value in marketing has been guided by a transactional view, in which determinants of value perceptions are studied with a focus on discrete transactions rather than recurring exchange relationships. Using data collected from a survey of organizational buyers, we found that perceptions of both relational benefits and relational costs significantly influence organizational buyers' perceived value. These effects remained significant when compared with those of perceived episodic benefits and costs. Our research underscores the need for a relational perspective of customer perceived value, whereby both episodic and relational antecedents of value should be accounted for and influenced by elements of the marketing mix.     

A Stakeholder Perspective on Relationship Marketing

Abstract

This paper proposes a broad framework of relationship marketing using the stakeholder approach. Drawing from Peck et al. (1999) framework and proposing several modifications, the authors identify the following relational groups-supplier markets, customer markets (channels), customer markets (end users), competitor markets, external influence markets, and internal markets. The growing importance of strategic alliances is reflected in all constituent groups as well as in a proposed modification of the Berry and Parasuraman (1991) levels of relationships. This paper also re-examines the strategic role of the traditional marketing mix strategies (namely, product, price, place, and promotion) in the new relationship paradigm. Finally, implementation strategies for the stakeholder markets, in general, and customer markets, in particular, are proposed. Several propositions are derived throughout the paper, many of which can be fertile areas for future research investigations.     

Rethinking the bottom of the pyramid: Towards a new marketing mix

The purpose of this study is to re-conceptualize the conventional marketing mix for Bottom of the Pyramid (BoP) markets and propose a revised framework by reorganizing the elements based on the customer perspective while retaining the principles of services marketing. Primary data was collected through a questionnaire with a sample size of 400 people from both urban and rural markets in the BoP. Findings indicate that the needs and perspective of the BoP members is distinct from the Middle of the Pyramid (MoP). Managers should consider this point while formulating marketing mix strategies for BoP markets. The present study is the first of its kind to present a revised marketing mix framework for customers in the BoP markets. The framework comprises five Ps, including personalization, product, place, the process of service delivery and price. Thus, a theoretical contribution is made in the context of service marketing and the BoP.     

Consumer Brand Marketing through Full- and Self-Service Channels in an Emerging Economy

A unique characteristic of emerging economies is the wide variety of dominant channel formats. We evaluate the influence of a brand's marketing mix on channel partners and consumer sales in both full and self-service channels in one emerging economy (Brazil). We use monthly stock-keeping-unit (SKU) level sales, and marketing mix data from the beverage category in southeastern Brazil spanning more than four years. In this study, we specify a panel vector autoregression framework with error decomposition to account for endogeneity between sales and marketing mix, cross-sectional heterogeneity among SKUs, seasonality, and the different aggregation of marketing mix elements across the channels. The results show that structural differences in these channels cause differences in the responses to some of the manufacturers' marketing mix elements. Package size variety, price and merchandising have a greater long-term effect on sales in self-service than in full-service channels. Brands' channel relationship programs support price increases in self-service channels without a corresponding decrease in sales. Distribution gains are important in both channels. In the full-service channel, package size variety has the highest long-term effect among all of the modeled marketing mix elements. Our study highlights that marketing mix strategies popular in the self-service dominant channels of the developed economies are not as effective in the full-service formats that remain important in emerging economies.     

User engagement for mobile payment service providers – introducing the social media engagement model

Twitter is being used by mobile wallet firms for customer acquisition, relationship management, marketing and promotional purposes. This study examines service advertisement and promotional tweets by mobile wallet firm's on Twitter. For this study, timeline data of top four mobile wallet firms of India, Paytm, MobiKwik, Freecharge and Oxigen Wallet were extracted from their Twitter screen (firm generated tweets). The user generated tweets were also extracted, using the search terms as firm's name. This study proposes a Social Media Engagement model for understanding user dynamics. The study provides three interesting inputs for promotional marketing tweets, firstly, firm should post mix of the tweets with respect to content type (i.e. informational, entertainment, remuneration and social). Secondly, a periodic campaigning is needed by the firms; and lastly, firms should focus on increasing their network size. The implications of these findings can help firm's managers and marketers in planning effective social media marketing campaigns.     

Determinants of Benefits in the Retail Payments Market: Evidence from Russian Consumers

Abstract

This study identifies the determinants of consumer benefits values in the retail payments market. Using a mix of quantitative (nation-wide representative survey of 1500 individuals) and qualitative inputs (8 focus groups and 32 in-depth interviews), this study finds robust evidence which supports the importance of internal and external user characteristics for the benefits value explanation. Other factors exhibit partial or no correlation with benefits values. Total welfare is efficiently distributed across the market. Findings imply new factors affecting consumer behavior in the retail payments market and suggest a basis for the reassessment of marketing and regulatory strategies.     

Trade Shows and Fairs

Abstract

This article describes importance and value of trade shows/fairs to firms as they engage in the process of internationalization. Primary discussion examines the unique impact of trade fairs as a promotional medium for organizations to consider as they determine their marketing strategy. Careful planning along with an understanding of the role of trade fairs within the promotion mix can mean the difference between success or failure in the global marketplace.     

Customer satisfaction and corporate culture: A profile deviation analysis of a relationship marketing outcome

Customer satisfaction has been identified as an important relationship marketing outcome. As such, firms should continually track and assess customer satisfaction. The following study examines how four elements of corporate culture combine to form an optimal mix that encourages attention to and measurement of customer satisfaction. Culture is operationalized as a pattern of values and beliefs that aid individuals in understanding organizational functioning. A profile deviation analysis reveals that an optimal mix of the marketing corporate culture elements of adhocracy, clan, market, and hierarchy does exist and is positively related to customer satisfaction assessment activities. © 1997 John Wiley & Sons, Inc.     

Putting one-to-one marketing to work: Personalization, customization, and choice

The tailoring of a firm’s marketing mix to the individual customer is the essence of one-to-one marketing. In this paper, we distinguish between two forms of one-to-one marketing: personalization and customization. Personalization occurs when the firm decides what marketing mix is suitable for the individual. It is usually based on previously collected customer data. Customization occurs when the customer proactively specifies one or more elements of his or her marketing mix. We summarize key challenges and knowledge gaps in understanding both firm and customer choices in one-to-one markets. We conclude with a summary of research opportunities.     

Competitiveness in the UK fork‐lift truck market

A method of measuring rivalry through a combination of marketing mix elements and importance of market share is outlined, based on marketing managers’ perceptions of competitiveness in the UK Fork‐lift Truck Market. An overall lack of correlation and synergy between market share and marketing strategy was discovered together with underutilisation of mix elements—this in turn created gaps for overseas importers to fill with competitive offerings. While the research instrument and quantitative analysis are capable of further refinement, the measures outlined should prove useful as an adjunct to market share and concentration measures.     

Applying Transactional NPS for Customer Journey Insight: Case Experiences and Lessons Learned

ABSTRACT

While the concept of “customer journeys” is widely taken up to support service design and management, practical frameworks for routine monitoring of customer experience in the context of customer journeys are lacking. This article proposes a framework for applying the widely used transactional Net Promoter Score (NPS) as a means for gathering insight into customers' experiences of a customer journey. We present lessons learnt from three case trials of the framework elements within a telecom service provider, involving the analysis of more than 1,700 quantitative and qualitative customer responses from transactional NPS surveys.     

Optimal Duration of Promotion for Durable Technology Product in a Segmented Market

ABSTRACT

Firms develop segment driven promotional mix to target its potential customers selectively. As the marginal revenues from promotion decreases with time, it is important to determine the optimal stopping time of a promotional activity. In the literature, the studies carried in this domain do not consider market segmentation and assume a uniform promotional mix. In this study, alternative decision models are developed to determine the duration of promotion for a durable technology product applicable to a segmented market. A case study is discussed to validate the proposed models and to illustrate the solution methodology based on a differential evolution algorithm.     

Brand equity and retailer acceptance of brand extensions

Two important benefits of brand equity have largely been assumed in most previous research: reduced marketing expenditures required to launch brand extensions; and channel participants as an important source of brand equity. Results of a discrete choice experiment with independent retail grocers indicate that brand names influence independent retailers’ probability of listing brand extensions, but their sensitivity to mix elements such as consumer advertising, promotional allowances, and wholesale price, as well as competitors’ listing actions are not influenced by brand names. This means that retailers treat each dollar of consumer advertising or promotional allowance the same, regardless of who is spending it. Manufacturers should not assume that retailers will be less sensitive to other elements of the marketing mix for stronger brands.     

Impact of customer experience on loyalty: a multichannel examination

This article examines the relation between the five dimensions of customer experience advocated by Schmitt [1999a. Experiential Marketing. Journal of Marketing Management, 15, 53–67] (cognitive, affective, sensory, behavioural and social) and service provider loyalty. The examination focuses on two different channels, namely branch/agency (physical) and online (Web-based). A total of 484 panellists of a large Canadian polling firm self-administered a Web-based questionnaire regarding banking experience. The exercise was subsequently replicated in the tourism sector. Findings demonstrate that the main dimension impacting loyalty is the affective dimension (negative), thereby contributing handsomely to experiential marketing literature since negative emotions are rarely investigated. Findings also reveal that choice of channel exerts a moderating effect on the different dimensions influencing loyalty and that results vary from one sector to another. The multidimensional, multichannel, multisector approach selected for this study substantiates customer experience as complex and context specific. The authors also suggest practical implications and set out avenues of future research.     

Genetically Modified Foods

ABSTRACT

This study outlines the controversy surrounding genetically modified organisms (GMOs) and how it impacts North American based food service companies' marketing policies. Recent developments have made foods derived from GMOs a strategic marketing challenge for food service franchise and chain operations. Headlines such as “Why McDonalds Pulled Frankenfries from Menus” have unwittingly put restaurants on the frontline of the battle over foods made from GMOs (Martin, 2000). A survey method was used to explore food service operations' views regarding consumer acceptance of GMOs, right to know issues (labeling) and the benefits of GMOs, as well as food service companies' strategic response to this emerging technology. Findings indicate that food service establishments were generally concerned about customer opinions and tend to prefer government mandated labeling of GMOs. They also tend to feel that GMOs offer potential benefits to their industry and that customer concerns may fade over time.     

The impact of internal,external, and competitor factors on marketing strategy performance

ABSTRACT

Strategy formulation is commonly understood as the match between a firm’s internal resources and skills and its external environment. Marketing strategy performance is the function of a dynamic, interactive process incorporating internal firm resources, external environmental factors, and competitive actions. The study aims to assess the impact of competitor actions on marketing strategy performance. We develop a model that accommodates the effects of 29 variables (comprising internal marketing strategy variables, external environmental factors and competitors’ marketing mix variables) on business performance. We empirically test the model using simultaneous equation modelling of time-series data on UK car manufacturers collected from publically available resources and annual reports. The results show that external factors, in particular competitors’ marketing mix elements, have a greater influence on a company’s business performance than internal (marketing and non-marketing) strategy variables. Implications for marketing theory and management are discussed.