Impact of positioning strategies on service firm performance

This research examines the application of positioning strategies of retail service firms in Texas. Four in-depth qualitative case studies and covert observation methods provide candid subterranean insight into retail positioning in a dynamic marketplace. “Branding”, “service”, “value for money” and, to a lesser extent, “reliability” and “attractiveness” positioning strategies emerge as the most dominant positioning strategies, although emphasis placed on each varies from firm to firm. Furthermore, all of the firms achieve acceptable sales and favorable consumer perceptions when employing these positioning strategies. Desired profits, return on investment (ROI), and market share are associated with these positioning strategies although not as “sales” and favorable “consumers' perceptions”. The results further show that the pursuit of multiple positioning strategies relates to multiple performance indicators. The paper concludes by providing normative suggestions and discussing theoretical and managerial implications.     

Examining the role of CSR skepticism using fuzzy-set qualitative comparative analysis

This study shows the value of a set-theoretic comparative technique—namely, fuzzy-set qualitative comparative analysis—as a means to supplement other traditional techniques, such as regression analysis and structural equation modeling. The study illustrates the technique by using the empirical dataset in Skarmeas and Leonidou's (2013) study on consumer skepticism about corporate social responsibility (CSR). The investigation provides more nuanced coverage of the role of CSR skepticism than the conventional “net effect” symmetrical explanation and illustrates that CSR skepticism and its impact are contingent on combinations of complex antecedent conditions and several alternative paths. Specifically, the study expands on Skarmeas and Leonidou's findings by showing that the degree of CSR skepticism depends on the combination of “ingredients” in the CSR-induced consumer attribution causal “recipes.” The study also shows that the deleterious influence of CSR skepticism on consumer-related outcomes, such as retailer equity, resilience to negative information about the retailer, and word of mouth, is conditional and depends on the combination of antecedent conditions that occur in the causal statements.     

A commentary on “Understanding Dog-Human Companionship”

“Understanding Dog-Human Companionship” is important insofar as the article is a quantitative study that validates many qualitative studies of the human-dog relationship and the meanings that dogs have to their owners. The article suggests questions about consumer behavior that go beyond dog ownership. Aspects of dog ownership could be applied to ownership or “consumption” of many things — including cars, spouses, and children.     

Reprisal, retribution and requital: Investigating customer retaliation

Customers, regardless of context or culture, will go to any extreme to retaliate against an offending service provider. Retaliation is an action taken in return for an injury or offense [Huefner, J.C. and H.K. Hunt, “Consumer retaliation as a response to dissatisfaction,” J Consum Satisf Dissatisfaction Complaining Behav, (2000); 13, 61-82.]. To date, research has had only a limited discussion of customer's use of anti-consumption behaviors as an expression of retaliation. This study uses qualitative methods to demonstrate that the motivations for retaliation extend beyond simply “getting even,” customers retaliate to teach the service provider a lesson or to save others from the same fate. The research identifies specific roles taken by customers as they retaliate, the emotions of customers and store issues that are at the root of these behaviors. In addition, the authors categorize a range of retaliatory behaviors as follows: cost/loss; consumption prevention; voice, exit and betrayal; and boycotting.     

The current and future sales impact of a retail frequency reward program

This research presents an empirical study of the impact of a retail frequency reward program on store sales. We examine both the “points pressure,” or short-term impact, and the “rewarded behavior,” or long-term impact. The points-pressure impact is due to forward-looking customers increasing their purchase levels in order to earn the reward. The rewarded-behavior impact is evidenced as purchases above baseline levels after an individual has received a reward and could result from either behavioral learning reinforcement or positive affect resulting from the reward. We investigate a turkey reward program that awarded free turkeys to shoppers who accumulated the required sales levels during an 8-week period. We find both a points-pressure and rewarded-behavior impact. These effects are statistically significant and managerially relevant in that the program is apparently profitable. The points-pressure impact is especially strong among customers who do not place value on frequent shopper programs that in general deliver immediate price discounts. The key implications are that frequency reward programs of the form, “buy x, then receive xx” can be profitable, are segmentation strategies, and can complement a store's overall frequent shopper program.     

What to Expect After the Honeymoon: Testing a Lifecycle Theory of Franchise Relationships

This research examines the evolution of interorganizational relationships in a franchising context. Using U-curve theory, we develop three hypotheses and contrast them with traditional lifecycle theory. Three groups of constructs are affected by lifecycle: cooperation variables, dependence variables, and relationship variables. Four distinct stages emerge, with highest levels of variables in the honeymoon stage, lower levels in routine and crossroad stages, and increasing levels in the stabilization stage. Franchisors should strive for “stability on high levels” before operational realities influence the franchisees. Franchisees’ intermediate lifecycle phases are most critical for the system, since opportunistic behavior and switching are most likely.     

Willingness-to-engage in technology transfer in industry-university collaborations

Formal collaboration between universities and industries is a recent phenomenon. Currently the role of an industry-university collaboration (IUC) is to close the gap between industry and academia. This study aims to analyze the willingness to engage in technology transfer (TT) in IUCs from the three vantage points of the technology transferor (university), the technology transferee (industry), and the TT intermediary institute. This study mainly observes the pairwise relationships between influencing variables and sub-variables and willingness to participate in TT in an IUC. From the vantage point of universities, this study shows that the “transferor's incentive” and “capability of transferor” variables positively influence willingness to participate in TT in an IUC. From the vantage point of industry, the results indicate that “capability of transferee” and “incentive for establishing technological resources” have major influences on willingness to participate in TT in an IUC. From the vantage point of TT intermediary institutes, the results show that “intermediary's fundamental resources” and “intermediary's transferring process” have a positive impact on willingness to participate in TT in an IUC.     

Embracing the whole individual: Advantages of a dual-centric perspective of work and life

In today's often complicated and fast-paced world, individuals are pulled in many different directions. Balancing work and personal roles—including those of parent, spouse, caregiver, volunteer, and so forth—can be a daunting task. In the literature, identity theory speaks to the multi-faceted existence employees face, beyond that of just “worker.” The differing roles individuals occupy have traditionally been viewed as competing, implicitly suggesting that attention to one area of a person's life necessarily detracts from the others, and that juggling and managing multiple roles causes stress and emotional strain. To explore the verity of this notion we conducted a study, which is described herein. Of significance, 55% of our sample indicated that they were dual-centric; that is, individuals who value both their work and non-work roles equally. In this article, we build on extant research and find support for the belief that dual-centrics experience more overall satisfaction, greater work-life balance, and less emotional exhaustion. Given the seeming increase in employees’ dual-centric focus, it is rational to suggest that one way in which organizations can improve and enhance employee well-being is by embracing them as whole individuals. This article explores that notion, and provides innovative examples from Fortune magazine's “100 Best Companies to Work For” list regarding how this objective can be accomplished.     

Transaction cost entrepreneurship

When offering a novel product, the entrepreneur desires the customer to choose to “buy” (from the entrepreneur) rather than to “make.” Transaction cost economics provides guidance to firms considering a make-versus-buy decision. In this paper we extend transaction cost economics to examine the novel transactions proposed by the entrepreneur. Application of the theory identifies three crucial considerations for the transaction: the cost of quality measurement, the risk of overconfidence by the entrepreneur (here termed identity risk), and the required cost of necessary transaction specific assets. By extending transaction cost analysis to cover novel transactions across customers, entrepreneurship can be analyzed using established theories and measures to generate novel propositions.     

Online entrepreneurial communication: Mitigating uncertainty and increasing differentiation via Twitter

Research shows that some narratives and symbolic actions produced by entrepreneurial firms can help to reduce audience uncertainty about their quality and differentiate them from rivals. But can communications via online social media channels – which we characterize as “communicative streams” – be used to reduce uncertainty and enhance differentiation? This seems debatable, given that such streams comprise multiple, brief messages (a) that encode signals lacking narrative cohesion; (b) are only fleetingly accessible; and (c) are minimally customized. We address this puzzle using qualitative methods to compare the communications enacted by eight firms that are using Twitter in order to pursue growth. Our theoretical contribution rests in positing links between specific types of communicative streams and audience responses that reflect reduced uncertainty or enhanced differentiation. Our analysis suggests that firms enacting a “Multi-dimensional” communicative stream (which entails a high volume of posts, a high proportion of which signal quality, relational orientation, distinctiveness, and positive affect) are most likely to elicit audience affirmation of firms' quality and/or distinctiveness. Implications for theory, research methods and practice are discussed.     

Shaping Retail Brand Personality Perceptions by Bodily Experiences

Customer experiences play an important role in retail brand management. This research investigates how bodily experiences in retail environments influence customers’ perceptions of retail brand personalities. Based on research on human personality perception, we propose that bodily experiences transfer metaphoric meaning to customers’ brand perceptions. In a field experiment and a lab experiment we manipulated participants’ bodily experiences (feeling of hardness and temperature) and consistently found a metaphor-specific transfer of experiences to retail brand personality perceptions (on the dimensions “ruggedness” and “warmth”). A third study reveals the mechanism behind the effect and demonstrates concept activation elicited by bodily experiences in customers’ minds.     

From clear to complicated: Buying and selling accounting services post Sarbanes-Oxley

While much has been said and written about the effect of the 2002 Sarbanes-Oxley Act (SOX), one consequence of the new regulation that has been largely neglected is the law's dramatic impact on how audits are bought and sold in the United States. Prior to SOX, the process was clear and simple: accounting firm partners would meet with the publicly held client company's C-level executives to complete the exchange. When SOX was passed, Congress took the buying decision out of the hands of the client company's executives and placed it in the hands of the company's external audit committee. As this inter-disciplinary research will explain, this change—and other similar changes emanating from the “independence” provisions in SOX—has forever complicated the client-auditor exchange. Based on the literature in business-to-business selling, this research proposes two models—one centered around the concept of a “buying center” and another around “selling team” theory—in an effort to advance thinking in this area, and help both client companies and accounting firms operate in this new environment.     

Customer segmentation using unobserved heterogeneity in the perceived-value–loyalty–intentions link

Multiple facets of perceived value perceptions drive loyalty intentions. However, this value–loyalty link is not uniform for all customers. In fact, the present study identifies three different segments that are internally consistent and stable across different service industries, using two data sets: the wireless telecommunication industry (sample size 1122) and the financial services industry (sample size 982). Comparing the results of a single-class solution with finite mixture results confirms the existence of unobserved customer segments. The three established segments are “rationalists”, “functionalists” and “value maximizers”. These results point the way for value-based segmentation in loyalty initiatives and reflect the importance of a multidimensional conceptualization of perceived value, comprising cognitive and affective components. The present results substantiate the fact that assuming a homogeneous value–loyalty link provides a misleading view of the market. The paper derives implications for marketing research and practice in terms of segmentation, positioning, loyalty programs and strategic alliances.     

Contingency as an entrepreneurial resource: How private obsession fulfills public need

Borrowing from Rorty (1989:37), this article portrays the entrepreneurial process as a mechanism through which “private obsession” fulfills “public need.” It begins with an argument that a deeper understanding of contingency can enhance management scholarship in general and entrepreneurship in particular. It continues with an examination of contingency and entrepreneurial opportunity and then uses six narratives to show how both personal and historical contingencies become resources in the entrepreneurial process. A depiction of possible alternative responses (counterfactuals) for each narrative illustrates how entrepreneurs tend to take a resourceful, rather than an adaptive or a heroic stance toward contingency. A discussion of American Pragmatism provides theoretical support for contingency's role in the entrepreneurial process. The paper concludes with a literature review and a look at how this view of entrepreneurial contingency illuminates the temporal context in management scholarship, among other implications for both research and practice.     

Two-stage models for the analysis of information content of equity-selling mechanisms choices

Extant research offers mixed empirical results on if private placement firms are undervalued. [Hertzel, Michael G., and Smith, L. (1993), “Market Discounts and Shareholder Gains for Placing Equity Privately,” J Finance 48, 459-485] suggest that private placements convey favorable information. On the other hand, [Hertzel, Michael G., Lemmon, M., Linck, J., and Rees, L. (2002), “Long-Run Performance following Private Placements of Equity,” J Finance 57, 2595-2617] show that, similar to public offering firms, private placement firms experience significant negative long-run post-announcement stock price performance. This paper develops the two-stage estimation models to explore the information content of equity-selling mechanism. This paper uses estimated residuals from insider trading regressions (proxy for abnormal insider trades) to measure private information. The result shows that the probability of making private placements increases with abnormal insider purchases and decreases with abnormal insider sales. This suggests that, relative to the public offering firms, private placement firms are undervalued.     

Resources in play: Bricolage in the Toy Store(y)

This paper analyzes the “Toy Store(y)” narrative by imagining the words and perspectives of several participants other than those from whose perspective the original story is told. By applying the lens of bricolage to a series of critical events and activities described in the Toy Store(y), I illustrate the theoretical and practical application of prior research findings on both bricolage and improvisation and extend these to make suggestions for useful future research and teaching in these areas.     

Nostalgic emotion,experiential value,brand image,and consumption intentions of customers of nostalgic-themed restaurants

During the last few years, nostalgia has become a fashion in Taiwan. “Nostalgic” restaurants are becoming common in Taiwan. A nostalgic restaurant can be a hot pot restaurant decorated with furnishing relating to the origin or earlier use of the “hot pot” in Taiwan. The study here uses SEM to test the hypotheses relating to nostalgia affecting consumption. The results indicate that (1) nostalgia has both direct and indirect impacts on consumption intention; (2) consumption affected by nostalgia varies depending on the individual; and (3) younger customers' predisposition to want cheap prices is an important consideration in marketing nostalgia to younger customers.     

The Relationship of Communication, Ethical Work Climate, and Trust to Commitment and Innovation

Recently, Hosmer (1994a) proposed a model linking right, just, and fair treatment of extended stakeholders with trust and innovation in organizations. The current study tests this model by using Victor and Cullen's (1988) ethical work climate instrument to measure the perceptions of the right, just, and fair treatment of employee stakeholders.In addition, this study extends Hosmer's model to include the effect of right, just, and fair treatment on employee communication, also believed to be an underlying dynamic of trust.More specifically, the current study used a survey of 111 managers to test (1) whether right, just, and fair treatment influences trust, both directly as well as indirectly via communication, and (2) whether trust influences perceptions of commitment and innovation. Strong support for the study's hypotheses and Hosmer's (1994a) model was found. Such findings support those who argue that moral management may be good management.     

Going “purple”: Can military jointness principles provide a key to more successful integration at the marketing-manufacturing interface?

When the colors of all the U.S. armed services’ uniforms are combined, the color purple appears; therefore, military insiders refer to inter-service operations as “purple” operations. Now a core concept, the “jointness” of U.S. military strategic response to a critical operational failure encapsulates principles and processes through which two or more armed services are best able to integrate strategies, strengths, and capabilities in ways that yield genuine synergies, despite the differences in mission and culture that naturally separate the services. The now ingrained ability of military services to “go purple” quickly has materially contributed to strategic and operational successes during the last 20 years. The internal circumstances as well as global environmental challenges faced by domestic firms, particularly at the marketing-manufacturing (M-M) interface, resonate with those faced by the U.S. military. Firms may benefit from evaluating the prospect of “going purple” at this crucial point of interface. This article integrates military-like jointness principles into an organizational framework that functions as a guide to pursuing cross-functional M-M integration more successfully. The framework also provides a methodology through which managers can determine whether and how much purple ought to be pursued.     

Entrepreneurial learning from failure: An interpretative phenomenological analysis

This article develops a deeper conceptualisation of the process and content dimensions of learning from venture failure. I propose that recovery and re-emergence from failure is a function of distinctive learning processes that foster a range of higher-level learning outcomes. This qualitative research demonstrates that entrepreneurs learn much not only about themselves and the demise of their ventures but also about the nature of networks and relationships and the “pressure points” of venture management. This article also provides evidence that these powerful learning outcomes are future-oriented, increasing the entrepreneur's level of entrepreneurial preparedness for further enterprising activities.