Two hearts in three-quarter time: How to waltz the social media/viral marketing dance

The concept of viral marketing has been discussed in the literature for over 15 years, since Jeffrey Rayport first introduced the term in 1996. However, the more widespread use of social media has recently pushed this idea to a whole new level. We provide insight into the relationship between social media and viral marketing, and illustrate the six steps executives should take in order to dance the social media/viral marketing waltz. We define viral marketing as electronic word-of-mouth whereby some form of marketing message related to a company, brand, or product is transmitted in an exponentially growing way—often through the use of social media applications. We consider the three conditions that need to be fulfilled to create a viral marketing epidemic (i.e., giving the right message to the right messengers in the right environment) and present four different groups of social media viral marketing campaigns (nightmares, strokes-of-luck, homemade issues, and triumphs). We conclude with five points of caution that managers should heed when trying to launch their own viral marketing campaign.     

Controlled infection! Spreading the brand message through viral marketing

Viral marketing uses electronic communications to trigger brand messages throughout a widespread network of buyers. The process is often portrayed as a random ground-up phenomenon over which marketers have little control. But an examination of successful viral marketing cases identifies a number of strategies underpinning this chaotic phenomenon, providing insight into how marketers can use it to position their brands, change their image, and increase adoption rates. Successful viral marketing campaigns are comprised of an engaging message that involves imagination, fun and intrigue, encourages ease of use and visibility, targets credible sources, and leverages combinations of technology.     

The dynamics of online word-of-mouth and product sales—An empirical investigation of the movie industry

There are growing interests in understanding how word-of-mouth (WOM) on the Internet is generated and how it influences consumers’ purchase decisions at retail outlets. A unique aspect of the WOM effect is the presence of a positive feedback mechanism between WOM and retail sales. We characterize the process through a dynamic simultaneous equation system, in which we separate the effect of online WOM as both a precursor to and an outcome of retail sales. We apply our approach to the movie industry, showing that both a movie's box office revenue and WOM valence significantly influence WOM volume. WOM volume in turn leads to higher box office performance. This positive feedback mechanism highlights the importance of WOM in generating and sustaining retail revenue.     

玉器行业网络团购营销策略的探讨

玉器行业具备高消费、高附加值、无污染、劳动密集型等特点,是国家鼓励、扶持的新兴产业,具有极大的市场开发空间。我国玉器行业以小作坊式生产为主,经营多处于分散无序的状态。玉器从业者营销方式千篇一律、产品同质化严重的特点又制约了玉器行业的发展。本文基于玉器行业的特点,详细阐述了基于Web2.0网络团购营销模式下玉器行业的营销策略。     

A cross-cultural comparison of electronic word-of-mouth and country-of-origin effects

Word-of-mouth has been shown to differ across cultures but the extent to which these differences extend to the online environment has not been investigated. This study examines the content of 5993 discussion postings to U.S.- and China-based discussion boards during two 90-day periods in 2004 and 2005. The results show significant differences in the behavior of participants on the different discussion boards; those on the China-based discussion boards engaged in higher levels of information-seeking than their U.S. counterparts, and lower levels of information-giving. Participants on the Chinese discussion boards also engaged in significantly higher (and increasing) levels of discussion regarding the Country-of-Origin (CoO) of products. This first study of cross-cultural differences in CoO effects online revealed an important extension to previous offline studies of CoO effects, finding strong negative CoO effects which appeared to be largely independent of product quality, relating instead to nationally based animosity towards the CoO.     

The influence of extrinsic product attributes on consumers’ food decisions: review and network analysis of the marketing literature

ABSTRACT

The paper synthesises the existing research on the influence of key product characteristics on the consumers’ food decision-making. By applying network analysis on a sample of 233 empirical studies from the last three decades, the paper demonstrates how marketing-specific variables are embedded in a network of other predictors. The paper also analyses network structure and density using well established measures. The results show that there is still a lack of research concerning the interplay between marketing-relevant extrinsic product attributes (e.g. price, brand, labelling, country of origin) and intrinsic food attributes, policy-related factors, as well as aspects of the proximal and distal environment. The paper identifies gaps in the marketing literature and derives research propositions. Additionally, implications for marketing practice are developed.     

A comparison of different pay-per-bid auction formats

Pay-per-bid auctions are a popular new type of Internet auction that is unique because a fee is charged for each bid that is placed. This paper uses a theoretical model and three large empirical data sets with 44,614 ascending and 1,460 descending pay-per-bid auctions to compare the economic effects of different pay-per-bid auction formats, such as different price increments and ascending versus descending auctions. The theoretical model suggests revenue equivalence between different price increments and descending and ascending auctions. The empirical results, however, refute the theoretical predictions: ascending auctions with smaller price increments yield, on average, higher revenues per auction than ascending auctions with higher price increments, but their revenues vary much more strongly. On average, ascending auctions yield higher revenues per auction than descending auctions, but results differ strongly across product categories. Additionally, revenues per ascending auction also vary much more strongly.     

企业博客营销模型构建与实施研究

博客是一个零成本、零技术、零时差、零许可、零编辑的个人意见平台,是继 E-mail,BBS,ICO 之后出现的第四种网络交流方式,其已在政治、企业管理、新闻报道及日常生活等多个方面得以应用。本文在探讨博客及博客营销概念的基础上,提出了企业博客营销的一般模型并就模型实施中应注意的问题进行了总结。     

Elaboration of marketing communication through visual media: An empirical analysis

Visual media plays a significant role in the marketing and promotion of several international tourism services in today's connected marketplace, in particular here, international tertiary education. This study was developed to examine how visual media influence potential audiences' perception towards a specific educational tourism destination through the theoretical framework of Elaboration Likelihood Model (Petty and Cacioppo, 1986). Researchers compare central and peripheral routes of individual persuasion via visual media and this aids marketers' understanding of how visual media impact consumers' purchase decisions. This study confirms a positive relationship between argument quality, audience engagement, source credibility, audience involvement and international students as tourists' perceived destination image. The findings suggest that peripheral routes of persuasion have stronger effects on individual adoption of information than central routes of persuasion. The study provides useful insight for tertiary education agents who promote international studies, destination marketers, and other users of visual media communicators.     

Social media marketing: Comparative effect of advertisement sources

This study was conducted to conceptualise advertising value and consumer attitudes towards advertisements. The research was developed to reveal the effect of the source of advertisements on credibility perception through the theoretical framework of Ducoffe's (1995) advertising value model. The research objective is to identify source derogation in terms of credibility to create advertising value and a positive attitude towards advertisements launched through the Facebook social network. In this regard, the study used three distinct sources to generate and introduce product promotional messages: an associative reference group, an aspirational reference group and marketers themselves. This research revealed significant differences in developing advertisement value and forming a favourable attitude towards advertisements when the product-related message was developed by these three distinct groups, who have different source derogations.     

Understanding online product ratings: A customer satisfaction model

Online product ratings have become a major information source for customers, retailers, and manufacturers. Both practitioners and researchers predominantly interpret them as a reflection of product quality. We argue that they in fact represent the customer's satisfaction with the product. Accordingly, we present a customer satisfaction model of online product ratings which incorporates the customer's pre-purchase expectations and actual product performance as determinants of ratings. We validate our model by applying it to two datasets collected at the German website of Amazon.com. The results indicate that both factors have a significant influence on online product ratings, supporting the proposed interpretation of ratings.     

The influence of product and personal attributes on organic food marketing

The study adapts the theory of planned behaviour and proposes organic food-related attributes that constitute perceived behavioural control and individual attributes influence quality assessment and purchase intention. The study analyses these relationships separately for individuals who have purchased organic food and those who have not. Data were collected in two stages and conducted in both online and face-to-face formats. The findings show that surface food attributes in general have no significant influences on either quality assessment or purchase intention for both groups of consumers; whereas the attributes that are reflective of food safety and environment issues do. The latter explain additional variance in both quality assessment and purchase intention. Consumers’ purchase styles have significant moderation effects on product quality assessment and purchase intention in both groups. Implications are provided for researchers and practitioners to conclude the paper.     

Adapting a book to make a film: how strategy is adapted through professional practices of marketing middle managers

Abstract

For an organisation to be competitive its strategy must be highly responsive to both environmental challenges and customers continuously shifting demands. Yet many organisations treat strategy making as an exclusively top management concern, even though the top management team is often remote from the daily interactions and communications taking place at the organisation, market, and customer interface. We challenge the assumption that strategy making ‘belongs’ to top managers and argue that marketing middle managers, possessing expert market and customer knowledge and insights, adapt top manager’s strategy to shifting customer demands in a changing environment. We explore this argument by adopting a strategy-as-practice perspective and analysing marketing middle manager’s practices across three case companies operating in a dynamic retail environment. Our research enables two key contributions. Our primary confirmation is to demonstrate that marketers are not passive implementers, but active adapters of top management strategy through three critical practices of sensing, challenging, and transmitting. We use the novel analogy of how adapting a book to make a film involves minor changes to the story line and characters to suit the new medium and to illustrate the strategically relevant and influential role marketing plays in adapting the strategy developed by the top management team for implementation. By demonstrating the value of the strategic practices of functional middle managers we also contribute to the growing debate of the need for greater inclusion and transparency in strategy making.     

Impact of marketing activities on relationship quality in the Malaysian banking sector

The current study investigates the impact of marketing activities on relationship quality in the Malaysian banking sector. Analysis of survey results show that greater client and employees' relational orientation yields higher relationship quality and results in better relationship continuity. Results also show that committed client relationships lead to client satisfaction, loyalty, positive word of mouth and promotion However, mutual disclosure was found to have no significant relationship with relationship quality.This may indicate that bank customers in Malaysia do not feel that having close relationships with the bank will have any positive impact on relationship quality. This particular finding may serve as a warning signal to practitioners and scholars alike that thorough research must be carried out on the use of relationship marketing prior to implementation.     

Pathways to entrepreneurial growth: The influence of management, marketing, and money

Business growth is considered a worthy goal for firms and a measure of entrepreneurial success, as well as important for economic development. Why some firms grow and others do not, though, remains a subject of debate. Of the small proportion of firms that do grow, it is often assumed that they follow a similar growth trajectory and/or encounter certain stage thresholds; however, the evidence base on this is wanting. The new study of business growth presented here provides an in-depth analysis of 19 New England-based firms. Our findings reveal that fast-growing companies exhibit different rates and patterns of growth: some display rapid growth trajectories (Rapid Growth Pattern); some, slower, more measured rates (Incremental Growth Pattern); others, episodic periods of quick growth followed by sharp retrenchment (Episodic Growth Pattern); and, while no firm actively chose to stop growing, some reached points of stagnation (Plateau Growth Pattern). We found that three key factors—management, marketing, and money—affected company growth across these patterns. While not every factor was critical at each moment of growth for each firm, every entrepreneur cited the relative importance of each factor at some time during the growth of their firm. Thus, fast-growing firms do not grow in the same manner, at the same rate, or with the same outcomes. This article has implications for those seeking to understand the processes of development and patterns of fast-growth businesses.     

A random coefficients mixture hidden Markov model for marketing research

The hidden Markov model (HMM) provides a framework to model the time-varying effects of marketing mix variables. When employed in a panel data context, it is important to properly account for unobserved heterogeneity across individuals. We propose a new random coefficients mixture HMM (RCMHMM) that allows for flexible patterns of unobserved heterogeneity in both the state-dependent and transition parameters. The RCMHMM nests all HMMs found in the marketing literature. Results of two simulation studies demonstrate that 1) averaging across a large number of different data generating processes, the RCMHMM outperforms all its nested versions using both in-sample and out-of-sample performance and 2) the RCMHMM is more robust than its nested versions when underlying model assumptions are violated. In addition, we apply the RCMHMM to an empirical application where we examine the effectiveness of in-game promotions in increasing the short-term demand for Major League Baseball (MLB) attendance. We find that the effectiveness of four promotional categories varies over the course of the season and across teams and that the RCMHMM performs best.     

A marketing perspective on the rise of China: monopoly,politics and value

Abstract

As researchers in the social sciences seek an understanding of the spectacular rise of China, the seemingly counterintuitive stance of an autocratic regime attaining such sustained economic performance challenges multiple analytical frames. The relatively ponderous responses of the United States and Europe to recent global conditions, and the democratic uprisings in Arabic states, further represent a glaring contrast. While the marketing literature is rich in the particulars of specific management issues in the China market, no analysis from the discipline has attempted to provide a broad, distinctly marketing contribution to the China phenomenon. Choice is a fundamental construct underpinning theories of politics, economics and marketing, though it is notably absent from Chinese politics. The changing relationship between markets, business and government reveals a question that is clearly important to marketers, and China is a challenging boundary case for marketing management.     

East meets West: Toward a theoretical model linking guanxi and relationship marketing

This conceptual study critically examines the separate concepts of guanxi and relationship marketing, explores the differences between the two approaches, and proposes innovative linkages between them. Chinese guanxi develops relationships at the inter-personal level, whereas relationship marketing develops relationships at the inter-organizational level. Both concepts are well known, but a dearth of critical comparison remains in academic literature, even though evidence suggests that managers can use the linkages between the approaches to improve customer recruitment and retention. Through a critical review and synthesis of prior research on guanxi and relationship marketing, this study proposes a novel theoretical model that links guanxi and relationship marketing and develops theoretical and managerial implications of such linkages. As such, this study offers new and valuable insights and benefits for Asian firms, which employ only guanxi-type relationships.     

Consumers un-tethered: A three-market empirical study of consumers' mobile marketing acceptance

This study examines factors influencing consumers' acceptance of mobile marketing across three influential markets, namely U.S., China, and Europe. The authors develop an integrative conceptual model on consumers' attitudes and behaviors toward mobile marketing. The authors incorporate three individual-level characteristics, namely personal attachment, innovativeness, and risk avoidance and investigate how permission-based acceptance influences the relationship between consumers' attitude and mobile marketing activity. Focusing on Generation Y consumers, the model is empirically tested with data from U.S., China, and Europe. The findings illustrate several cross-market differences and similarities regarding the relationships between individual-level characteristics, attitude, and mobile marketing activity. Research and managerial implications of these findings are discussed.     

Corporate environmental market responsiveness: A model of individual and organizational drivers

This study examines the psychological and organizational drivers of corporate environmental market responsiveness (CEMR). Drawing on the relevant literature, the study identifies several variables of potential importance in CEMR and builds on the theory of planned behavior to propose a model of hypothesized relationships among these variables. The study tests hypotheses in an empirical study using a large sample of environmental managers from eleven members of the European Environmental Agency. The research findings show that the environmental behaviors of managers are largely determined by social judgments and perceptions. The present study has implications for managers who wish to pursue an environmental market-oriented approach to business. These results also have important implications for organizational theory and the debates about whether economic or social factors determine the effects of environmental issues on competitive advantage.