Private Labels,National Brands and Food Prices

We study the relationships between national brand prices and the development of private labels, using home-scanned data from a consumer survey reporting purchases for 218 food products. When the impact of private label development is significant (116 cases out of 218), we observe a positive correlation (89%) between brand price and purchases of private labels. When controlling for changes in product quality, we still find a positive relation between private label development and national brand prices. Thus, the change in the national brand product characteristics only partly explains the increase in the national brand prices. Furthermore, the price reactions of national brands differ according to the type of private labels they face. Finally, we demonstrate that the development of private labels has less effect on the prices of second-tier brands than on the prices of the leading brand.      

Differential effects of firm generated content on consumer digital engagement and firm performance: An outside-in perspective

Social media contains a massive amount of information, which provides researchers and practitioners with an invaluable source of data to conduct research from end-users' perspectives, in order to influence firm strategic choices. Although an extensive amount of research has been developed in B2C and B2B marketing context, few social media studies take a dive into potential linkages between external and internal marketing contexts in an industry specific paradigm. This study aims to bridge B2C and B2B social media marketing, by adopting the outside-in perspective as theoretical lens. Using a large-scale dataset, collected from a micro-blogging site, and consumer-oriented information assembled from multiple sources, we empirically examine the inter-relationship between firm-generated messages, consumer digital engagement, and firm sales performance in the movie industry. Theoretically, this study builds upon the outside-in perspective and extends the current knowledge of the outside-in perspective to the social media context. It also bridges the B2C and B2B marketing literature by demonstrating that the insight garnered from B2C social media interactions should be integrated into the B2B firm interactions, communications, and decision makings. Managerially, this study provides movie practitioners with important implications.     

Manufacturer's retailer dependence: A private branding perspective

With the recent increase in the power of major retailers through consolidations, the world of brands has divided in two categories: national brands belonging to manufacturers and private brands belonging to retailers. While national brands are well studied in the literature, there is a dearth of studies on private brand phenomenon particularly from a manufacturer's point of view as opposed to that of retailers and consumers. To address this gap, we explore the antecedents and consequences of a manufacturer's private brand retailer dependence with a focus on the manufacturer's relationship with retailers. Drawing on the Resource Dependence Theory and Transaction Cost Economics, we examine various products and market characteristics as potential antecedents of a manufacturer's private brand retailer dependence while adopting private brand sales growth and returns from private brand production as outcomes using a sample of 153 South Korean manufacturers currently involved in private brand production. The results show that the private brand retailer dependence of a manufacturer leads to private brand sales growth directly and returns from private brand production indirectly through private brand sales growth, and has a negative effect on return from private brand production directly. Furthermore, product characteristics, such as product innovativeness through collaboration with retailers and search goods, and market characteristics, such as high retailer power and knowledge specificity of a retailer, increase a manufacturer's private brand retailer dependence and, therefore, private brand sales growth. The theoretical and managerial implications of the findings are discussed at the end.     

The Nature and Benefits of National Brand/Private Label Competition

The article highlights the history of national brand/private label competition. Itargues that the private labels of large retail chains possess unique competitiveweapons to constrain the market power of powerful national brands that are notavailable to rival manufacturers' brands. Consumer welfare is maximized whenprivate labels and national brands compete vigorously rather than when eitherone is too dominant. There is some ominous recent evidence that the vigor ofnational brand/private label competition is sometimes being diminished bycollusion between the two kinds of brands.     

An Empirical Study of the Effect of Brand Proliferation on Private Label – National Brand Pricing Behavior

This paper investigates the competitive pricing interaction between national brand and private label food products, focusing on the effect of brand proliferation. IRI scanner data from 1991 and 1992 for 135 food product categories and 59 geographic markets are used. Empirical findings are grouped into three categories: i) price, promotion and competitive effects, ii) brand proliferation and entry deterrence, and iii) local market effects. Results indicate that both private label and national brand reaction functions are positively sloped and asymmetric. Successful private label penetration, as measured by total private label share, lowers the average price of national brands. The paper's central finding is that the impact of brand proliferation on market pricing behavior is multi-dimensional. First, an increase in the number of brands increases the ability of national brand manufacturers to raise price. Second, the effectiveness of a brand proliferation strategy depends upon the distribution of market share. The more concentrated the brand structure, the lower the market price of national brands. Thus, the net effect of brand proliferation strategies is dependent upon not only the number of brands, but upon the actual distribution of brand shares. Finally, local market conditions play only a small role in the competitive interaction between private labels and national brands.     

消费者需求及在服装平面广告营销中的应用

随着服装品牌竞争态势的日益升级,服装业进入了品牌营销的时代,服装广告作为品牌营销的重要一环,已成为代表服装品牌文化和价值趋向的符号。在服装营销中,只有深入挖掘消费者的需求,在服装平面广告中体现这种需求,才能更好地发展服装广告营销策略。     

How employees engage with B2B brands on social media: Word choice and verbal tone

Marketing scholars and practitioners are keenly interested in brand engagement in social media because brand engagement has strong links to brand equity. However, much of the marketing literature focuses on customer brand engagement and often in a consumer market setting. This paper advances this literature in two ways by (1) focusing on employees, not customers, as important stakeholders who frequently engage with brands on social media, and by (2) observing brand engagement in a business-to-business context. We develop a conceptual framework based on a theory of word choice and verbal tone to understand the content of engagement observations (i.e., reviews) that breaks into five content dimensions—activity, optimism, certainty, realism, commonality—and four calculated dimensions—insistence, embellishment, variety, and complexity. Then, we examine over 6300 job reviews authored by employees of B2B firms to explore the differences in the way employees engage with both highly-ranked, and -rated brands versus low-ranked and -rated brands. We find that there are significant differences in nearly all the theoretical dimensions, yet the effect sizes are much larger between high versus low review ratings compared to high versus low B2B brand ranking. We close with some important managerial implications and future research directions.     

Consumers’ willingness-to-pay for food safety labels in an emerging market: The case of fresh produce in Thailand

Food safety systems in emerging markets are currently facing a transformation period, becoming more stringent because of an increasing demand for safer food. Consequently, policy makers need to find strategies to increase food safety while giving the industry time to improve their performance. In Thailand, policy makers have adopted the strategy of upgrading food safety standards gradually. Government and private food safety brands and labels were introduced onto the market but little is known whether Thai consumers have preferences for them or not. This study is aimed at evaluating Thai consumers’ preferences for food safety labels and brands on fresh produce, using a surveyed based on discrete-choice experiments. A sample of 350 Thai consumers was surveyed in Bangkok and Nonthaburi in 2013. Quota sampling according to the shopping outlets and convenience sampling methods were adopted. Two hundred respondents were recruited at fresh-food markets and 150 respondents were recruited at supermarkets. We found that consumers are willing-to-pay more for both government led food safety label and private brands, but that there is high heterogeneity in their preferences. The high degree of social desirability for food safety labels confirms that food safety labelling policy should be supported. However, the provision of information and credibility are vital in order to mitigate the risk of consumer deception by self-claimed labels.     

Industrial marketing management digital media optimization for B2B marketing

The role of digital media in B2B marketing has gained traction with academics and practitioners in recent years. However, a comprehensive framework about the use and value of these media has not been developed, leaving B2B experts uncertain about their effectiveness. In fact, whether or not digital media can impact the business development and marketing processes to achieve higher performance remains vague. Additionally, there is a paucity of research related to the impact of different media towards the enhancement of processes and outcome of marketing to generate opportunities. To provide guidance for practitioners, we consider marketing processes in the global software industry by researching practitioner experiences. We develop an assessment tool to identify and align marketing processes and digital media. This research attempts to explore and explain how digital media impacts the B2B business development process cycle at the conjunction of marketing and sales. The research tests a conceptual model by means of a cross-sectional survey of more than 530 practitioners. Our novel framework provides several contributions to knowledge and practice, defining marketing-related processes, and determining a set of digital platforms. By acknowledging the perspectives of vendors, third-parties, and buyers in a simultaneous study, we ensure optimal alignment.     

Speak to head and heart: The effects of linguistic features on B2B brand engagement on social media

Brand engagement on social media increasingly draws B2B brands' attention as it may produce positive WOM and bring branding and financial benefits. However, B2B marketers face challenges in creating compelling brand posts on social media. Beyond ‘knowing what to post’, what is even more challenging for B2B marketers is a lack of knowledge of ‘knowing how to communicate’, i.e., knowing how to design the non-informational cues in brand posts to stimulate brand engagement and generate social media WOM. This research makes initial attempts to address this gap by investigating the impacts of post language on B2B brand engagement on social media. Building on the model of B2B effective communication and theories in linguistics, we identify six linguistic features (i.e., post length, language complexity, visual complexity, emotional cues, interpersonal cues, and multimodal cues in rich media) that influence brand engagement, captured using Twitter likes and retweets. Through analyzing 229,272 tweets collected from 156 B2B brands in 10 industries, we found that, in general, linguistic features that facilitate the central or peripheral route processing will have positive effects, while those that hinder the processing will have negative impacts on brand engagement. This research contributes to our knowledge of B2B social media communication by revealing the power of brand language in driving brand engagement and introducing linguistics as a valuable conceptual lens for maximizing the benefits of B2B marketing content on social media. This research also highlights the interpretative nature of social media communication – B2B brands must go beyond the content purpose and strategy decisions to consider the specific language use and communication style of the message.     

Social media in B2B sales: Why and when does salesperson social media usage affect salesperson performance?

The importance of social media usage by B2B salespeople has been well documented in the sales literature. In particular, a B2B salesperson's use of social media to prospect for customers and adapt their sales approach have primarily been shown to explain sales performance. However, an increasing body of literature in the sales domain has called for B2B salespeople to be ambidextrous by engaging in service activities aimed at helping their customers. We argue that by giving B2B salespeople an opportunity to communicate directly with their customers, social media is used by salespeople to proactively service their customers and hence can play a critical role in driving sales performance. Drawing from the Task-Technology Fit theory, we develop and test a conceptual model in which B2B salesperson social media usage affects salesperson performance indirectly through value-oriented prospecting and proactive servicing. Additionally peer social media usage was a key moderator in the relationship between B2B salesperson social media usage on the one hand and value-oriented prospecting and proactive servicing on the other hand. We test the model with data from 171 B2B salespeople and find that salesperson social media usage relates positively with proactive servicing and value-oriented prospecting. While we did not find support for the relationship between social media usage and adaptive selling, we did find support for the impact of all three sales activities salesperson performance. In addition, results show that peer social media usage has positive moderating effects on the B2B salesperson social media usage and value-oriented prospecting/proactive servicing relationships.     

Social media research in the industrial marketing field: Review of literature and future research directions

Since the emergence of social media, industrial marketing academics and marketers have also been intrigued by the influence of such media on the discipline. As, social media research in the field of industrial marketing has been of increasing interest, this research attempts to review and assess the advances in social media research in the industrial marketing field. From the literature review conducted, it can be identified that some of the research areas have witnessed steady theory development increases, e.g., sales and marketing communications, while others are clearly lagging behind, e.g., pricing and ethics. Also methodological pluralism is called for instead of more traditional methods (conceptual analysis, qualitative and survey) to establish and solve more nuanced research problems. This research provides a review of the current state of research in the field and suggests directions for future development.     

Joint marketing and sales appointment: Uncertainty from intertwining of marketing and sales in one position

The integration of diverging thought worlds of marketing and sales can have many synergistic benefits for industrial firms. However, intertwining marketing and sales in one position introduces coordination costs—costs that have, for the most part, been ignored by the existing B2B literature. The authors argue that appointment announcements of new executives to joint marketing and sales positions (M&S) puts these costs in stark relief, especially relative to new marketing-only (M) or sales-only (S) appointments' announcements. Leveraging event-study methodology and latent instruments, this research examines secondary data on over 800 executive appointment announcements, 436 of which are related to marketing and sales. The authors find that new appointments to joint M&S positions introduce hard to simultaneously balance change across diverging thought worlds that results in uncertainty and hurt firm value. Drawing on structural-contingency framework, this study finds that less formalization of tasks, represented by insider status of an appointee, can mitigate this disruption, by stabilizing structures during change. Furthermore, specialization in B2B marketing technology weakens the negative effect of announcements of joint M&S appointments, because such positions lean heavily towards sales and thus require less coordination between the two functions. However, specialization with respect to industry environment, represented by market concentration, exacerbates the disruptive effect of appointing new executives to joint M&S positions.     

Understanding salespeople's learning experiences through blogging: A social learning approach

Social media has changed the way many salespeople work and interact with their customers and coworkers. We examined 200 salespeople's blogs using netnography method. Drawing on social learning theory and real salespeople's blogs, we illustrate how and why salespeople can learn by reading and writing blogs. Our findings show that writing and reading blogs can be a helpful learning tool for many salespeople and the findings also suggest that companies should consider using blogging as a sales training tool. Our research contributes to marketing and sales literature two ways. First, our study provides a theoretical foundation for future work on social learning theory and online learning in areas of marketing, sales, and business education. Second, our study confirms the importance and usefulness of netnography method beyond its current usage in marketing and sales management. We conclude our paper with avenues for future research.     

Signaling Quality: An Examination of the Effects of Marketing‐ and Nonmarketing‐Controlled Signals on Perceptions of Automotive Brand Quality

When introducing new products to market, firms often leverage marketing signals in an effort to increase perceptions of product quality. While prior research mostly focuses on marketing‐controlled signals that firms can directly influence to affect consumer perceptions of product quality, the proliferation of nonmarketing‐controlled signals in the form of third‐party product reviews introduces a new layer of complexity to a consumer's inference process. Given the fact that propagation of marketing signals and third‐party reviews has made the marketplace more interactive, it is no longer diagnostic to analyze the impact of various quality signals on consumer perceptions, separately. The purpose of this study is twofold. There has been extant research on the individual effects of marketing‐controlled signals on quality perception, but research providing a simultaneous examination of multiple signals is scarce. The first purpose is to examine interaction effects between various marketing signals on consumer perceptions of quality. Firms may be able to control the communication strategy of internal signals (e.g., price, advertising), but third‐party signals are external to the firm, and hence are often perceived as being more credible and less biased than marketing signals. Despite the popularity of third‐party product reviews, there is scarce empirical research about how they impact perceptions in the presence of marketing‐controlled quality signals. Thus, the second purpose is to examine the interaction effects between marketing signals and independent third‐party reviews on perceived product quality. This study advances existing models of market signaling to account for the potential interactions between various types of quality signals. Hypotheses are tested using a longitudinal data set comprising all car brands that have existed in the U.S. automotive industry between 1990 and 2007. The automotive industry provides an ideal context for the analyses as quality is an indispensable yet not easily discernible attribute of cars. Furthermore, consumer perceptions of the quality of new vehicle introductions can have a profound effect on product performance. Data are compiled from various secondary sources, including Harris Interactive's Equitrend, Consumer Reports, and TNS Media Intelligence, among others. Econometric techniques are used to estimate the empirical model. Findings show that effects of quality signals are codependent such that third‐party quality ratings reduce the effectiveness of pricing and advertising, whereas they enhance the credibility of warranty signal. Furthermore, warranty positively interacts with price and advertising. It is also demonstrated that car sales in the previous period and the country of origin of the car brand significantly impact perceived quality. Overall, the research findings can help car manufacturers better understand how their initial product configurations and marketing strategies impact the perception of new vehicle introductions.     

Transaction cost implication of private branding and empirical evidence

Branding and transaction cost economics represent two research streams that rarely cross paths in the literature. In this study, I explore the transaction cost implication of private branding, a practice whereby products supplied by unaffiliated manufacturers are sold under private brands owned by retailers. The main thesis is that private branding can preempt a special case of asset specificity called brand specificity, where retailers also invest in the marketing of an outsourced product, but subsequent reputation effects (positive or negative) are specific to the manufacturer who brands the product. Retailers, thus, will not be fully motivated to optimize their investment in product marketing unless they take over the branding right. With potential barriers to private branding being controlled, data obtained from a national chain reveal that the retailer deploys its marketing resources according to the branding status of a product, implying that private branding can deflect the transaction cost of solving the brand specificity problem. The results offer new theoretical insights into branding and transaction cost analysis. This efficiency‐based approach to private branding also provides practitioners with useful guidelines for crafting a branding strategy that will facilitate cooperation between manufacturers and retailers. Copyright © 2009 John Wiley & Sons, Ltd.     

The impact of sellers' social influence on the co-creation of innovation with customers and brand awareness in online communities

This study integrates theoretical concepts adopted from social influence theory, co-creation practice, and brand equity into a single model by examining the role of social comparison and social identity in co-creation activities in an online community context, which is known to affect firms' brand awareness in the Business-to-Business (B2B) marketplace. The model was tested using a dataset gathered via an online survey of four online communities discussing Software-as-a-Service (SaaS) related issues in LinkedIn. Empirical findings from our survey of 190 business professionals indicate that sellers' social identity and social comparison are key facilitators for developing a series of co-innovation activities, and confirmed that co-innovation practices make potential customers more aware of company brands. The results of this study provide new insights into effective B2B social media marketing techniques by elaborating how best to orchestrate co-innovation with online communities to boost brand awareness.     

The use of social media in sales: Individual and organizational antecedents,and the role of customer engagement in social media

There is recognition that social media can benefit personal selling and sales management, especially in the B2B context. This research draws on interactional psychology theory to propose and test a model of usage of social media in sales, analyzing individual, organizational, and customer-related factors. We find that organizational competence and commitment with social media are key determinants of social media usage in sales, as well as individual commitment. Customer engagement with social media also predicts social media usage in sales, both directly and (mostly) through the individual and organizational factors analyzed, especially organizational competence and commitment. Finally, we find evidence of synergistic effects between individual competence and commitment, which is not found at the organizational level. We conduct multiple regression analysis of data obtained by surveying 220 sales executives in the United States.     

浅析我国奢侈品网络营销现状及对策

近年来,中国的奢侈品网络消费市场呈现迅猛的发展势头,奢侈品营销也随之悄悄改变,网络营销已成为新的营销方式。本论文首先阐述了我国奢侈品网络营销的现状,并对奢侈品网络营销的优势及所存在的问题进行了分析,最后提出奢侈品网络推广方式需整合和创新,来达到更好的网络推广效果。另外,针对奢侈品网络销售的提升和服务的改善,品牌商需结合消费群体的差异性,针对不同的消费群体制定不同策略。     

Studying the antecedents and outcome of social media use by salespeople using a MOA framework

The innovative impact of digital technologies on sales forces is largely unexplored. Particularly, the understanding of drivers of social media use by salespeople remains fragmented and scant. Drawing on motivation-opportunity-ability theory, this study develops an integrative framework. The individual's opportunities to use social media, including perceptions about market readiness, peer influence, and organizational support are considered as important antecedents of individuals' motivation (perceived usefulness) and ability (perceived ability to integrate social media in the sales tasks) to use social media in their job. Next to a positive effect of social media use on sales performance also a potential negative impact through distraction is accounted for. The framework and hypotheses are tested using a sample of 345 salespeople. The results largely support the model and hypotheses. Market readiness, peer influence, and organizational support positively affect salesperson motivation, and except for organizational support, the individual's ability to integrate social media in his/her sales job too. Findings further show that motivation and ability together drive social media use in sales, but that a lack of ability shuts down the positive influence of motivation on social media use. Finally, a positive effect of social media use on sales performance is detected, suggesting that social media can be an important tool to enhance sales growth. Support for a dark side effect of social media is not found.