Promotional Tactics for Online Viral Marketing Campaigns: How Scarcity and Personalization Affect Seed Stage Referrals

Against the backdrop of consumers being deluged with traditional online advertising, which is increasingly manifesting in inefficient conversion outcomes, viral marketing has become a pivotal component of marketing strategy. However, despite a robust understanding about the impact of viral marketing as well as of factors that drive consumer referral engagement, we know very little about the effect of traditional promotional tactics on consumer referral decisions. Drawing on a randomized field experiment in the context of an online fashion service named StyleCrowd, we investigate the effects of scarcity and personalization, two classical promotional cues that have become ubiquitous on the web and have received only minimal attention hitherto, on actual referral behavior. Our analysis reveals that using these cues in promotional campaigns is a balancing act: While scarcity cues affect referral propensity regardless of whether a campaign is personalized or not, personalization cues are particularly effective when scarcity is absent, yet are cancelled out when scarcity is prevalent. We demonstrate that consumers' perceptions of offer value drive the impact of scarcity on referral likelihood, while consumer gratitude vis-à-vis the marketer is the underlying mechanism for personalization's influence on referral decisions.     

Cross‐national differences in proneness to scarcity effects: The moderating roles of familiarity,uncertainty avoidance,and need for cognitive closure

The scarcity effect is a powerful social‐influence principle used by marketers to increase the subjective desirability of products. This study explores cross‐national differences in proneness to the scarcity effect and attempts to explain observed differences in terms of boundary conditions. Results of a shopping simulation experiment show a positive effect of scarcity on purchase intent and a greater proneness to such among participants from a lower‐ (U.S.) versus higher‐ (France) context culture. Moreover, the scarcity effect is moderated by product familiarity, uncertainty avoidance, and need for cognitive closure. Differential familiarity levels may help explain the observed cross‐national differences. Managerial implications concern the conditions under which marketing appeals based on scarcity should be more (versus less) persuasive. © 2004 Wiley Periodicals, Inc.     

NFT marketing: How marketers can use nonfungible tokens in their campaigns

Nonfungible tokens (NFTs) are a record of ownership of primarily digital media, where the NFT is stored on a blockchain. According to the 2021 Gartner Hype Cycle for Key Technologies, NFTs may significantly transform marketing functions. Marketing managers wishing to adopt NFTs therefore need to know something about the marketing implications. This article explains NFTs in broad terms and discusses the marketing implications using a modified AIDA hierarchy. These implications can give marketing managers and executives guidelines on how to persuade consumers to purchase NFTs owing to their unique characteristics, such as scarcity, nonfungibility, proven authenticity, proof of ownership, royalties, and direct distribution infrastructure.     

Scarcity tactics in marketing: A meta-analysis of product scarcity effects on consumer purchase intentions

Scarcity tactics are an essential tool for marketers. Cues that signal the current or potential unavailability of a product generally enhance its value and desirability and in turn increase purchase intentions. While there have been earlier reviews, the fragmented nature of the research to date means there is no cohesion across findings. Given that retailers employ a variety of scarcity cues in a diversity of settings, it is important to identify the magnitude of the effect of scarcity cues and how the effect on consumers’ purchase intentions changes across conditions. This research presents a meta-analysis of 416 effect sizes from 131 studies. Results show that demand-based scarcity is most effective for utilitarian products, supply-based scarcity for experiences, and time-based scarcity for high involvement products. The results show that managers need to consider the above factors to maximize the success of scarcity tactics in their marketing campaigns.     

Information congruity in scarcity appeal: A structural equation modeling study of time-limited promotions

Although market scarcity such as time restriction is widely used in retail advertisements, its impact on product message processing and product evaluation is still subject to controversy. In this study, analyses through structural equation modeling indicated that (i) scarcity had no impact on product message processing, (ii) scarcity had a direct impact on product evaluation as a heuristic cue when the value inferred from scarcity was congruous with the worth derived from product message, and (iii) scarcity lost its impact on product evaluation when the value inferred from scarcity was incongruous with the worth derived from product message, and the incongruity prompted scrutiny of product message, resulting in a mediated impact of product message on product evaluation through product message processing. In conclusion, the results supported an information congruity theory of market scarcity.     

Anomie and the Marketing Function: The Role of Control Mechanisms

The authors use the theoretical notion of anomie to examine the impact of top management’s control mechanisms on the environment of the marketing function. Based on a literature review and in-depth field interviews with marketing managers in diverse industries, a conceptual model is proposed that incorporates the two managerial control mechanisms, viz. output and process control, and relates their distinctive influence to anomie in the marketing function. Three contingency variables, i.e., resource scarcity, power, and ethics codification, are proposed to moderate the relationship between control mechanisms and anomie. The authors also argue for the link between anomic environments and the propensity of unethical marketing practices to occur. Theoretical and managerial implications of the proposed conceptual model are discussed. An erratum to this article can be found at     

Redefining social marketing with contemporary commercial marketing definitions

Social marketing is based on the adaptation of the contemporary commercial marketing theory and practice as a means of guiding and aiding social change campaigns. This paper draws on recent developments in commercial marketing theory and prior work in social marketing definitions to create a new definition of social marketing which integrates the commercial definitions of the American Marketing Association (AMA) and Chartered Instituted of Marketing (CIM) with established social marketing definitions from the past thirty years of social marketing conceptual development. The development of the definition is supported through the use of qualitative research technique of text mining which uncovered a core series of principles consistent to the historical definitions of social marketing. Finally, the new definition also introduces clarification of several key subcomponent elements as part of an expanded definition of social marketing.     

Marketing Capabilities and Firm Performance: A Hierarchical Model

The resource based theory of the firm (RBV) is briefly reviewed together with its recent application in the marketing literature. Significant contributions by Webster (1992) and Day (1994) are identified and an integration of the two presented as a hierarchical model of marketing capabilities. Three research propositions concerning the relationships between marketing capabilities and performance are developed and tested empirically in the transition economies of central and eastern Europe. In line with expectations from the theory of the RBV, higher order marketing capabilities are seen to be more important than operational capabilities in explaining superior competitive performance. The overall model is shown to be a helpful conceptualization of marketing capabilities and a number of issues for further research are identified.     

Impersonal vs. Personal Exchanges in Marketing Relationships

Considerations about the future of marketing discipline bring to the surface an important question of marketing relationships management. The aim of this paper is to analyse the phenomenon of marketing relationships as a paradigmatic shift in the marketing discipline. Through the critique of marketing management approach we are searching for the theory that will help to transcend the action oriented marketing philosophy. Our discussion is rooted in the social exchange theory and the two fundamental processes of human exchange interactions – the process of friendship building and the process of power relations. Through the application of the analysis of the processes of interpersonal relations we discuss marketing relationships and extreme types of marketing perspectives: power relations, intrusive selling, conventional marketing exchange and marketing relationships. Conventional (transactional) marketing management and marketing relationships fundamentally at odds with one another, resembling the old Chinese concepts of yin and yang. We conclude that managers are facing the problem of "schizomarketing disorientation", when entering into different marketing processes with different segments of customers.     

Avoiding academic irrelevance in the marketing discipline: the promise of the history of marketing thought

ABSTRACT

This paper offers a commentary on Hunt’s ‘Advancing marketing strategy in the marketing discipline and beyond: From promise, to neglect, to prominence, to fragment, (to promise?)’. We focus on three issues: (1) the historical origins of marketing strategy, (2) resource-advantage theory as a general theory of competition and/or a general theory of marketing and (3) the current state and future promise of doctoral training in the history of marketing thought.     

从交易营销到战略营销:营销理论范式的比较与创新

市场营销发展的历史表明,在现代的市场竞争下单纯依赖以4Ps策略为分析框架的交易营销范式已经逐渐失去了对新问题的解释力。关系营销范式因为缺乏明确的研究框架和分析工具还不能成为主流的营销范式。而伴随着现代竞争的日益发展,基于竞争和顾客导向的战略营销管理理论范式越来越具有影响力。SMM范式具备一个全新的理论范式的条件,将对未来我国企业的营销战略的制定,长远的营销发展具有重要的意义。     

The antecedents of in-store hoarding: measurement and application in the fast fashion retail environment

This study raised scholarly inquiry about the construct of in-store hoarding and investigated the antecedents of in-store hoarding in the fast fashion retail environment. As the market becomes dynamic and volatile, more retailers are moving toward fast fashion by constantly delivering new products throughout the season. As a result, a product life span is dramatically reduced, thereby accelerating perishability of fashion items. Moreover, in order to make constant room for new products and minimize markdowns, fast fashion retailers deliberately limit product availability, creating a sense of scarcity on the part of consumers. Based on the literature review and one-to-one interviews, perceived perishability, scarcity and low price were identified as primary drivers of in-store hoarding. Overall, results from a field study supported the proposed model. However, the findings indicated that perceived perishability and scarcity were central to understanding in-store hoarding, whereas low-price perception was least important with a marginally significant effect on in-store hoarding. This study made a significant contribution to the consumer and retailing literature by introducing, defining, and operationalizing new constructs and new measurements, including scales for perceived perishability, perceived scarcity, and in-store hoarding. This study also provided many implications for practitioners in developing and implementing marketing and merchandising management strategies.     

Game theory in marketing science uses and limitations

This paper reviews some major concepts in game theory and indicates how they may apply to marketing science. The theory of games provides a framework for addressing problems of competitive strategies and of buyer-seller interactions. These issues are important in studying industrial markets where there are a small number of buyers as well as for studying how to incorporate knowledgeable, active competitors into consumer marketing mix models.Few marketers have seen much benefit in the past from developments in game theory. This is partly because of the historical preoccupation of game theorists with complete information, zero sum games. The richer area of games of incomplete information may have much more to offer the marketing scientist.In this paper we review how game-theoretic approaches (interactive models) differ from most previous approaches, which are optimizing and asymmetric. We then look at how these alternative approaches apply to two problem areas - competitive entry and bargaining. Then we review potential applications of game theory in marketing and the value of applying marketing science approaches in game theory. We conclude with a perspective on future developments in this field.     

The Customer Concept: The Basis for a New Marketing Paradigm

Recent developments in both marketing theory and marketing practice make it necessary to formulate a new marketing paradigm. This paradigm consists of three elements: (1) a concept, which is the core of the paradigm, (2) a set of activities, and (3) a domain. The customer concept is the new marketing concept. It is a management orientation which maintains that firms establish relationships with selected individual target customers with whom superior customer values are designed, offered, redefined and realized in close cooperation with other partners in the marketing system such as suppliers and intermediaries, in order to realize long-term profits through customer satisfaction, partner- and employee satisfaction. The new marketing activities include decisions with regard to the firm's stated vision, objective(s), strategy, organizational structure, culture, information system, marketing instruments, business processes and human resource management. The new marketing domain encompasses the broader interpretation of marketing as the central concept in the behavior of the firm. The customer concept implies a reorientation of marketing to one that places the customer in a pivotal role.     

Resource Scarcity and Agency Theory Predictions Concerning the Continued Use of Franchising in Multi-outlet Networks

A study of 439 franchisors was conducted to identify factors influencing changes in their propensity to franchise. Consistent with agency theory, franchisors with wide multinational scope were increasing their proportion of franchised outlets whereas franchisors with large outlets were emphasizing firm ownership. As predicted by resource scarcity theory, franchisors were decreasing their proportion franchised as they grew in size, although most of the decrease occurred while firms were relatively small. In contrast to resource scarcity theory, franchisors increased their proportion franchised over time. Key implications are that both agency and resource scarcity theories are needed to explain franchising, but perhaps future research should look beyond resource scarcities toward resource-based capabilities to better explain franchising decisions.     

Marketing as Value Co-creation Through Network Interaction and Resource Integration

This is a theoretical discourse on contributions to the marketing discipline primarily from service-dominant (S-D) logic, relationship marketing, and the many-to-many network approach. The study combines a literature review with theoretical insights. Framed within a relational context it specifically addresses interaction and its role in the co-creation of value through resource integration. As a consequence, the article also deals with elevating midrange theory in the direction of more abstract and general theory, grand theory.     

Heart rate variability in marketing research: A systematic review and methodological perspectives

Heart rate variability is a promising physiological measurement that accesses psychophysiological variations in response to a marketing stimulus. While its application spans diverse fields, there is a limited understanding of the usability and interpretation of heart rate variability in marketing research. Therefore, this hybrid literature review provides an overview of the emerging use of heart rate variability in marketing research, along with essential methodological considerations. In this context, we blend marketing mix framework with stimulus-organism-response theory, segregating the use of heart rate variability in various marketing research contexts. We follow the preferred reporting items for systematic reviews and meta-analyses (PRISMA) framework to reflect on 33 records obtained from six databases. Our findings suggest that 42% of studies used heart rate variability to investigate promotion-related topics. Overall, heart rate variability is mostly used in combination with Galvanic skin response (48%). Further, 39% of studies used non-portable systems for data collection. Last, using the theory characteristics methodology (TCM) framework, we identified six research avenues: (1) affective, cognitive, and sensorial constructs; (2) personality, thinking style, and demographics; (3) product experience; (4) advertising and branding; (5) correlation with immersive technologies; and (6) triangulation with other neurophysiological tools.     

Explicating Ethical Corporate Marketing. Insights from the BP Deepwater Horizon Catastrophe: The Ethical Brand that Exploded and then Imploded

Ethical corporate marketing—as an organisational-wide philosophy—transcends the domains of corporate social responsibility, business ethics, stakeholder theory and corporate marketing. This being said, ethical corporate marketing represents a logical development vis-a-vis the nascent domain of corporate marketing has an explicit ethical/CSR dimension and extends stakeholder theory by taking account of an institution’s past, present and (prospective) future stakeholders. In our article, we discuss, scrutinise and elaborate the notion of ethical corporate marketing. We argue that an ethical corporate marketing positioning is a prerequisite for corporations which claim to have an authentic ethical corporate identity. Our article expands and integrates extant scholarship vis-a-vis ethical corporate identities, the sustainable entrepreneur and corporate marketing. In delineating the breadth, significance, and challenges of ethical corporate marketing we make reference to the BP Deepwater Horizon (Gulf of Mexico) catastrophe of 2010.     

Stakeholder management and the stakeholder matrix: Potential strategic marketing tools

This article examines how marketers may be able to apply the stakeholder management process and the stakeholder matrix to marketing strategy formation. Existing marketing theory does not utilize the stakeholder management process when undertaking strategic marketing planing, although most marketing theory implicitly identifies the need to develop strategies that address the needs of multiple groups or stakeholders. By understanding and applying stakeholder theory, marketers should be able to develop more effective marketing strategies. While there is extensive management literature examining stakeholder theory, there is little marketing literature in this area, and this article attempts to partially fill this gap.