Exploring passenger and flight characteristics' impacts on airport retail income: Evidence from Incheon International Airport

This study examines passenger and flight characteristics' impacts on airport retail income using transaction data from Incheon Airport (ICN) duty-free. Two indicators, per-flight expenditure and buyer proportion, were introduced to measure the impacts on retail revenue. This study employed the female passenger ratio per flight and the domestic passenger ratio as passenger characteristics. Flight type (LCC or not), transit passenger proportion, and flight delay were introduced as flight characteristics. Unfavorable departure gates and disadvantageous terminal locations were presented as location characteristics. Based on the multiple regression model, this study analyzed the effect of each factor on airport retail revenue. The research findings provide managerial implications to airport operators. It is financially advantageous to avoid allocating flights with many female passengers to favorable departure gates for accessing retail shops. A high frequency of purchases of Korean passengers does not lead to a significant sales amount because of the regulations. Transit passengers are low-yield customers for airlines and airport operators. Flight delay increases the per-flight expenditure and the buyer percentage to a certain level, while excessive delays can reduce the purchase amount. Also, this study identified that the impact of assigning flights to disadvantageous locations varies depending on the type of flight based on the expansion model using an interaction term. The location has a significant influence on passenger shopping behavior. Since FSC passengers have a solid impulsive buying tendency, airport operators should avoid giving FSCs to unfavorable gates. Although ICN kept operation policies to assign LCC flights to a terminal disadvantageous for shopping, this study presents that the commercial revenue contribution of LCCs is not weaker than FSCs when controlled a terminal location. Therefore, it is necessary to reconsider assigning LCCs to a terminal unfavorable for shopping without evaluating purchasing power.     

刍议移动互联网传统零售企业营销能力的提升

面对运用现代信息技术而形成的新型商业模式的竞争,传统零售业在经营观念、人才储备、基础设施、创新精神上,都处于不利的位置。传统零售企业可以借助无线互联网技术,借鉴电子商务企业的成功经验,开展营销业务与手段的创新;开展基于LBS服务创新;通过APP占领消费者手机桌面;利用顾客碎片化时间;开设智能商店;提供移动在线客服;加大客户数据挖掘,使无线营销活动更具有针对性。     

Planning and implementing effective mobile marketing programs

Mobile marketing is an ever increasingly important component of a firm's overall promotional strategy. The importance of this medium can be seen through time spent on mobile media, number of searches, and direct and indirect mobile-generated sales. Despite its increased importance, the effectiveness of mobile marketing needs to be improved based on such metrics as bounce rates, add-to-cart rates, shopping cart abandonment, and average order size. Strategies to increase the effectiveness of mobile marketing are discussed. Firms need to capitalize on the three major strategic advantages of mobile marketing: (1) the fact that mobile marketing devices are always on, always connected, and always with the consumer; (2) the ability to generate location-sensitive offers; and (3) the ability to send relevant personalized messages and offers. Firms also need to develop and implement an effective mobile marketing strategy through a series of activities. These include understanding and reacting to the complexity of mobile marketing, designing sites based on ease of use versus ‘bells and whistles,’ increasing opt-in rates, using effective customer engagement strategies, and developing effective mobile coupons. Criteria to evaluate the effectiveness of mobile marketing are discussed.     

Do airport staff helpfulness and communication generate behavioral loyalty in transfer passengers? A conditional mediation analysis

The footloose nature of transfer passengers in the turbulent air transport market landscape has necessitated the need to assess service marketing constructs relevant for airport competitiveness. The current cross-sectional study examined (1) the influence of transfer passengers’ perceived airport staff helpfulness and communication (H&C) on their behavioral loyalty, (2) the mediating roles of passenger affective image and satisfaction, and (3) the interaction effects of passenger types (trip purpose & travel frequency) and airport in the direct and indirect airport staff H&C – behavioral loyalty relation. Post-hoc analysis of transfer passengers’ perceived airport staff H&C across airports and passenger types was performed. Data was collected from three international airports in China (N = 829). Findings revealed that perceived airport staff H&C has significant positive associations with the three behavioral loyalty variables, and indicated further that these associations are partly explainable via passengers’ affective image and satisfaction. Also, the perceived airport staff H&C’s direct and indirect relations with behavioral loyalty variables are sensitive to passenger types but not airports. Expectedly, the post-hoc analysis showed that transfer passengers’ perceived airport staff H&C is significantly different across passenger types but not airports. Theoretical and practical implications, limitations and directions for future studies have been discussed.     

How push messaging impacts consumer spending and reward redemption in store-loyalty programs

Retailer loyalty programs (LPs) are pervasive in grocery retailing. However, participant spending and redemption typically wear off over time and traditional communication has not revealed very effective at maintaining program engagement. We study the impact of in-app mobile push notifications on consumer participation and reward collection in store-loyalty programs. Using a unique data set covering consumer spending before and during such a program, we estimate the effect of push messaging on expenditure and reward redemption during the program. We report positive effects of push messages on spending, and even stronger effects on redemption, relative to a control group not receiving such messages. Due to the savings dynamics, the total spending impact is larger for messages sent early on rather than late in the program, while the opposite holds for the total number of stamps redeemed. Conditioning on observable consumer characteristics, we allow for heterogeneous treatment effects and find that the spending and redemption effects of push messaging increase with high levels of pre-program spending. Our findings reveal which loyalty-program stakeholders benefit the most from mobile marketing campaigns, and help to formulate rules for campaign scheduling and targeting.     

中国零售企业跨国营销的风险评估及管理研究

跨国营销的巨大经济效益和市场前景对中国零售企业有很强的吸引力,但也不可避免地存在风险。文章在跨国营销风险管理理论基础上,对跨国营销的风险进行分类并构建风险评估指标体系,采用模糊综合评价法对其进行评估,并提出针对不同类型国家应侧重的风险管理策略。     

整合数字营销策略研究

全球技术的变化导致媒体内容与传播方式的变化,传播链中的人、媒体、信息三要素中媒体要素发生了巨变,势必要引起另外两个要素的变化。整合数字营销不再是简单地将广告工具和营销工具跨界搭配,其作用于在利用大数据的精确定位,通过移动智能终端和移动互联网打通线上和线下渠道,并以跨屏互动和多屏融合的传播手段,构造一个立体、有效传播的仪式环境和信息空间。本文提出整合数字营销的大数据策略、移动化策略和仪式感策略,为数字营销的进一步发展提供借鉴。     

Effect of time stress and store visibility on the dynamics of passenger activity choices at airport terminals based on indoor trajectory data

As mobile devices become more sophisticated and ubiquitous, airports have greater access to information on the activities of passengers and their reasons for engaging in such activities. This study proposes a novel trajectory-based dynamic choice model that can capture the effects of time stress, store visibility, and trajectory histories on activity choices in airport terminals. To evaluate the proposed model, two surveys on passenger trajectories and activities at Songshan Airport in Taipei, Taiwan, were conducted. The results reveal that although passengers under less time stress are more likely to perform discretionary activities, the dynamics of store-visiting choices suggest that airport shoppers can be distinguished into two types: shoppers whose store-visiting probability is negatively associated with time stress, and shoppers whose store-visiting probability has a concave relationship with time stress. The effect of visual attractiveness is especially strong for process activities (e.g., passing through security screening and passport control), and the variance in the visual-attractiveness effect for discretionary activities (e.g., shopping) is strongly influenced by the airport environment. The results also indicate novelty-seeking behavior: passengers are less likely to do something that they have already done. Our findings suggest that passengers behave heterogeneously in response to various levels of time stress but homogeneously in response to visual cues. Despite the variation in passenger characteristics, this study demonstrates that trajectory data alone are sufficient for the construction of passenger behavior models with satisfactory temporal transferability.     

Subverting sustainability: market maintenance work and the reproduction of corporate irresponsibility

ABSTRACT

While marketing’s potential to foster environmental sustainability has been acknowledged in sustainability marketing thinking, we still know little about the forms of organisational conduct through which sustainability recurrently fails to gain traction as a serious agenda in markets. Drawing on recent discussions on corporate irresponsibility and institutional work in markets, this article employs a discourse analysis to examine marketing managers’ strategies to legitimise food waste generation in the organisation of retail. The study highlights three interlinked strategies of institutional work for the subversion of sustainability and thus the reproduction of unsustainable excess production and consumption: the framing of environmental responsibility as risk, cost and consumer choice.     

基于改革视阈的零售业营销创新模式研究

后金融危机时代,零售业竞争直面残酷,营销创新是实现其可持续发展的正确选择。零售业的营销创新表现为营销实践探索与理论应用过程,总结西方国家和我国零售业营销改革创新的实践经验及零售业的营销创新的模式,可以探索营销理念创新、发展规模创新、营销管理创新、营销技术创新和营销服务创新等多种模式。必须通过优化创新环境、建立激励机制和制定弹性计划,为零售业的营销创新创造良好的条件。     

蔬菜市场批零价差和价格传递机制分析——以北京市为例

我国蔬菜的市场零售价格不断上升的一个重要原因是蔬菜批零价差过大。因此,研究农产品不同流通环节的价格传递机制,对于提高农产品流通效率具有重要意义。对北京蔬菜市场上小白菜、西红柿和土豆的价格变化进行研究,发现零售价格是影响蔬菜批零价差的主要因素,同时也发现蔬菜市场的零售商对某些产品拥有一定的市场支配力,能够通过一定的途径提高零售价格,扩大价差。     

The quantitative strategic planning matrix: a new marketing tool

Originally introduced in a 1986 Long Range Planning article, the Quantitative Strategic Planning Matrix (QSPM) has become widely used in strategic management but is only rarely used in marketing strategy. This paper reveals how and why the QSPM should be commonly used in marketing strategy to assess the relativeness attractiveness of alternative strategies being considered. An example QSPM is developed in this paper for a firm considering two alternative marketing strategies: (1) Increase Advertising Expenditures by 50% vs. (2) Lower Menu Prices 10%. The QSPM process is exemplified and limitations are discussed herein. The primary contribution of this paper was to reveal how and why the QSPM can be useful, both theoretically and practically, in a devising an effective marketing strategy.     

沃尔玛、家乐福在华市场营销组合比较研究

在综述营销组合及零售营销组合理论的基础上,构建了其分析维度,进而从产品、服务、价格、地点、店面设计、促销、人员、物流配送等方面对沃尔玛和家乐福在华市场的营销组合进行比较研究,同时也对国内零售企业给出相应的几点启示。     

The role of seeding in multi-market entry

Firms introducing new products into multi-markets often face the dilemma of how to dynamically allocate their marketing resources during penetration. The aim of this study is to examine which responsive allocation strategy is more effective for these firms. We explore three major resource allocation strategies: uniform strategy, in which the firm distributes the marketing efforts evenly among its regions regardless of market development; support-the-strong strategy, under which the firm invests its efforts proportional to the number of adopters in that region (at least up to a certain market coverage); and support-the-weak strategy, in which the firm invests its efforts proportional to the remaining market potential.Using both formal analysis and complex systems simulations, we find that strategies that disperse marketing efforts, such as support-the-weak and uniform strategies, are generally superior to support-the-strong strategy. Not only is this finding surprisingly robust to market conditions and variations on these strategies, but it also runs counter to conventional wisdom prevailing in international marketing. The conditions under which support-the-strong policy might become more effective include: (a) fixed entry or operation costs above a certain level; and (b) substantial variance between regions in responsiveness to marketing efforts. However, variance in intrinsic innovativeness between regions does not imply the superiority of support-the-strong strategy.     

Developing a New Theory of Frontline Manufacturer-Retailer Relationships for Consumer Packaged Goods

Purpose: Frontline employees from consumer packaged goods (CPG) manufacturers, and the retailers’ employees who they interact with, play a crucial role in the in-store execution of product promotions and in ensuring that products are available for shoppers. This article investigates the development of interpersonal relationships between these frontline actors at the store-level of analysis and how these relationships influence in-store processes. We consider the theoretical and practical implications of our findings for sales force recruiting and sales management in the CPG retail channel.

Methodology/approach: Frontline relationships and in-store execution remain relatively under researched fields in the sales management and retail literatures. Given the lack of a well-established theoretical framework, we conducted a qualitative study in the grounded theory research tradition. We interviewed frontline personnel from manufacturers and retailers, their immediate managers and headquarters personnel and other industry experts. We took a holistic approach to data collection; also gathering other types of written, photo and video data for the purpose of iterative data analysis and developing a mid-range theory of relationship development between manufacturer representatives and retailer employees, the frontline employees tasked with executing marketing and merchandising strategies in the store.

Findings: We develop a model of frontline relationship development and performance consisting of 4 distinct stages: (1) working alongside, (2) building respect, (3) cooperative relationship (helping hands), and (4) collaborative partnership. We compare our findings with existing relationship marketing and relationship management theories. We find that an alternative theoretical framework may suit the particularities of the CPG retail channel better.

Research implications: This article provides insight into a very specific but important type of business-to-business relationships in the CPG retail channel that have seen little scholarly attention. It calls for re-evaluating the relevance of existing relationship marketing and sales management paradigms in the CPG retail channel. Future research could investigate the extent to which our model is applicable in sales environments beyond the CPG retail channel.

Practical implications: The study’s findings contribute to the practice of relationship marketing and sales management in the CPG retail channel. We present a case for a different approach of managing manufacturer-retailer relationships at the store level, a more functional tactic, which seems to deliver higher relationship performance than expected under the relationship marketing paradigm prevalent in sales and retail literatures. This different approach has direct consequences for the recruitment and management of a CPG sales force.     

Cross-channel effects of omnichannel retail marketing strategies: A review of extant data-driven research

The authors review 50 empirical retailing research papers that have appeared over the last 20 years to take stock of what we know, need to know better, and do not know yet about within-retailer cross-channel effects of omnichannel retail marketing strategies on (a) consumer responses over their purchase journeys, i.e., online and/or offline search, purchase intention, frequency, amount, returns, loyalty, and (b) the retail firm's aggregate outcomes (e.g., sales, costs, profits, product returns) by channel and overall. Specifically, the authors focus on five strategies: (1) the addition of online channel by an offline retailer; (2) the addition (or subtraction) of offline channels by an online retailer; (3) addition of mobile shopping channel (website and/or app) by offline and/or online retailer; (4) cross-channel integration strategies; and (5) retail marketing mix strategies. The author/s integrate findings from empirical research on these strategies into a number of ‘insights’ about ‘what we know’. Prominent among these are the following: Adding a transactional online channel to an offline channel improves the retailer's overall sales even though offline channel sales can be cannibalized to some degree. Adding an offline channel by an online retailer, however, boosts online channel sales as well as overall sales of the retailer. Similarly, adding a mobile shopping channel usually increases customer purchase frequency and amount and overall sales of the retailer in the long-term. Strategies for greater cross-channel integration generally have a positive effect on a retailer's overall performance while online advertising has positive effects on offline channel consideration and sales as well as overall sales of a multichannel retailer. Other insights or findings that need further study or open questions are also identified. The paper closes with managerial implications of the derived empirical insights, and suggestions for future research.     

Customized Targeting Strategies for Category Coupons to Maximize CLV and Minimize Cost

It is standard procedure to use short-term measures for designing customized marketing campaigns and evaluating their success. We consider the integration of customer lifetime value (CLV) thinking into the category selection problem for targeted coupons. This problem involves two primary considerations: should the coupon be a category-specific one? – and, if so, should short-term or rather long-term objectives govern the choice of category? Our paper is the first to address these questions by analyzing the effects of different customized targeting strategies for category coupons on short-term marketing costs and long-term CLV using an analytical model. We develop these targeting strategies with the help of a data-driven customer segmentation framework based on the dimensions of churn, frequency, and loyalty. Using data from a German hypermarket chain, we identify four refined targeting strategies that enable multi-category retailers to exploit the full potential of customized marketing by optimizing the trade-off between marketing cost and CLV considerations. Our analysis reveals that the targeting strategy most likely to be employed by retail practice – as compared with the one most commonly used – can yield a substantially higher CLV even as it reduces wasteful marketing costs.     

On the Go: How Mobile Shopping Affects Customer Purchase Behavior

Mobile shopping (M-shopping) has become increasingly important in marketing and retailing. Using a unique dataset from an Internet-based grocery retailer, we evaluate changes in customers’ spending behavior upon adopting M-shopping, i.e., using smartphones or tablets to compose, modify, or place orders online. We find that order rate, i.e., number of orders placed per year, increases as customers adopt M-shopping. Especially for low-spending customers, both their order rate and order size, i.e., the amount of the order in dollars, increase as they become accustomed to M-shopping. In addition to the effect on customer's spending behavior, we also find that M-shoppers tend to use mobile devices to shop for habitual products that they already have a history of purchasing. We propose that customers utilize mobile devices because the technology provides convenient access, which leads them to incorporate M-shopping into their habitual routines. Managerially, we recommend that firms should fully leverage their mobile platforms, but they should also keep in mind that mobile devices may not be the most optimal channel for launching new products or promoting products that require more consideration during the buying process.     

Mobile marketing: A literature review on its value for consumers and retailers

The article describes the existing knowledge of how mobile marketing can increase the value for consumers and retailers. Mobile device shopping, and consumers' use of mobile devices while shopping is shown to be both an extension of consumers' shopping behaviours developed on Internet-connected desktop and laptop computers (PC), and potentially new behaviours based on a mobile devices' uniquely integrated features such as camera, scanners and GPS. The article focuses on how mobile marketing creates value for consumers and retailers, enabling more precise research and development of managerial concepts and tools while providing both managers and academics with increased understanding of mobile marketing and its value outcomes for retailers.     

A new look at faith-based marketing: The global halal market

Faith-based marketing, or addressing consumers’ religious sensibilities with faith-friendly offerings, represents a new wave of growth for companies. While kosher goods and Christian movies are well-known examples of this trend, companies continue to overlook opportunities for growing faith-based segments. Representing the fastest-growing faith-based consumer group in the world, Muslims, in particular, are a largely untapped segment. Forward-looking companies such as Nestlé, Walmart, and McDonald's consider this segment as the next ‘one-billion’ market, after China and India, and are developing strategies to appeal to the Muslim consumer. We focus on the key to tapping into the sizable Muslim spending power: halal marketing. Contrary to common belief, halal marketing is not confined to dietary goods. Rather, it pertains to a diverse range of offerings from cosmetics to tourism that represents a global market worth $2.1 trillion annually. Modern interpretations of halal echo the claims of organic and fair-trade industries, broadening the appeal of halal to mainstream consumers. Despite the vast opportunities in halal marketing, winning the pocketbooks of Muslim consumers involves cultural, operational, and geopolitical challenges. We provide an overview of this emerging market and offer five lessons for successful halal marketing.