Case Study

ABSTRACT

This is a case study of one of the highest growth restaurant chains in overall system wide sales and unit growth in restaurant industry history as reported by The Nation's Restaurant News(2001). The inception of a small fledgling restaurant chain in Atlanta, Georgia to a multi-billion dollar company has changed the shape of restaurant industry growth and development. The practices of franchise growth and market penetration have allowed Applebee's International to record double digit profits over the last ten years. Future growth patterns, market saturation, and changing consumer preferences will be challenges that Applebee's will face in the future. This case study will outline Applebee's history and competitive strategies that have made the company successful. Further along in the case study an analysis of franchising in the restaurant industry and the franchising strategies Applebee's has produced over the years. This study will conclude by uncovering future issues that Applebee's may face and pose future questions to ponder about the company.     

Placing snacks in children's movies: cognitive,evaluative, and conative effects of product placements with character product interaction

ABSTRACT

Type of placement integration has been shown to influence placement effects in adults. However, no studies have explored the role of character product interaction (CPI) for product placement effects on children. We also lack knowledge about the moderating role of age in this context. We therefore exposed N = 363 children aged 6–15 years to a movie containing no placement, a static placement, or a CPI placement. The presence of placements affected cognitive and conative brand outcomes. However, children's product memory and consumption were higher for CPI placements compared to static placements. As a relevant implication for product placement research, we found that brand outcomes were independent of the children's ages and prior movie familiarity. This suggests that children's developmental stage concerning age does not mitigate product placement effects. Implications for educators and consumer advocates are discussed.     

Tracing the history of Japanese commerce and consumption from the Genki to the Heisei era

Commerce enables the flourishing of cities. This article reviews three books on the evolution of commercial activities in Japan; including, a samurai’s account, a foreign concession’s window, and the role of shopping in Modern Japan. Lust, Commerce, and Corruption discusses how various social groups’ commercial activities influenced societal developments from the Genki (1570–1573) to the Bunka era (1804–1818). Opening a Window to the West is unique in the author’s detailed characterizations of Kōbe’s mercantile activities and how merchants influenced the city’s urban development. Finally, Marketing and Consumption in Modern Japan provides systematic investigations of the evolution of commerce and consumption in Japan, mostly from the Meiji (1868–1912) to the present Heisei era (1989 onwards). Read together, these books provide vital perspectives on how commerce has changed in urban Japan over the last three centuries.     

Roads to Be Taken: The Intellectual Odyssey of Charles H. Sandage—by Charles H. Sandage,Center for the Study of Free Enterprise and Entrepreneurship,Graceland College Lamoni,Iowa, 1993. ISBN 0–9636457-0-6. $16 paperback $24 hardcover

Abstract

The “green gap” is traditionally thought of as the gap between how consumers intend to behave regarding green living and how they actually behave. We extend the idea of the green gap by demonstrating a different kind of disconcerting green gap. There are three levels of green advertising—with tensions embedded in their differing agendas. An ethnographic content analysis and phenomenological interviews reveal that there is a macro agenda of saving the planet associated with nonprofit green advertisers. There is a meso agenda associated with for- profit enterprises. These commercial approaches do not appear to be aligned with consumers' micro agendas of saving one's own part of the planet (or at the very least, of not wasting one's part of it, as perpetuated by consumers). We then provide solutions for green advertisers in bridging this unsettling green gap among for-profit advertisers, nonprofit advertisers, and consumers who want to make being green and less wasteful easier in their everyday lives.     

From an aggregate to a brand network: a study of the brand portfolio at L'Oréal

Abstract

Our purpose is to contribute to the understanding of brand-portfolio management by examining the brand-portfolio strategies of a world-leading company. We started to work on a case study with L'Oréal. Our research focused on two questions: (1) what reasons lead L'Oréal to develop a brand-portfolio strategy?; (2) how can brand-portfolio management create a higher and stronger level of competitive advantage for this company? The results show that an aggregation of brands is not in itself a brand portfolio. The juxtaposition of brands is one of, but not the sole, element necessary for the development of a brand portfolio, which is a combination of a brand ensemble and key competences born out of organisational savoir-faire. By analysing the evolution of the L'Oréal brand portfolio, this work shows how the brand combination within a portfolio is a key factor for company development, growth, and risk management. It is a crucial phase to understand L'Oréal's competitive advantage.     

Advertainment

Abstract

This essay explores the issues implicated by entertainment vehicles created solely to spotlight specific advertisers. From the contemporary exemplar of this paradigm in the highly successful 1990-1998 “Sophisticated Taste” campaign for Taster's Choice(r) instant coffee, in which viewers watched the sparks fly between the characters of Tony and Sharon in a continuing series of ads that functioned as television programming across multiple media platforms, to the most recent incarnation in advergames, online computer games that promote brands, this study considers the nature and implications of perhaps the ultimate evolution of product placement and blurring of the lines between entertainment and commercial persuasion.     

Product Placement Versus Conventional Advertising: The Impact on Brand Choice of Integrating Promotional Stimuli into Movies

ABSTRACT

Despite the increasingly favorable environment enjoyed by product placement, the question of whether this technique produces stronger behavioral effects than conventional advertising remains largely unexplored. Based on the transportation-imagery model, we hypothesized that, among users of well-established products, promotional stimuli produce stronger effects on brand choice when integrated into movies than when presented as independent ads, while among nonusers, no differences are expected. Our hypotheses were confirmed in a field experiment that compared the effects of a Coca-Cola placement within the movie Ways to Live Forever with the same Coca-Cola stimulus shown as a usual commercial.     

Viagra(ization) or Technoromanticism

Viagra can rather obviously be termed "techno-romantic"--literally it is a technology to make sex possible. But technoromanticism is also a philosophical term referring to the belief that advances in technology serve "truth" "unity" and "wholeness" according to Coyne (1999). Surprisingly many pharmaceutical companies seem to have developed "Viagra" or at least substances that were very similar, but to have ignored and/or rejected commercializing them. This article assumes that the primary activity of research and development in pharmaceutical companies is to produce texts that interpret chemicals as "meaningful." Assumptions of what constitutes (medical) meaning within prevailing technoromanticism have seen R and D as a form of "production" that demands rejection of "consumption." This technoromanticism succeeded in rebuffing the sexual "techno-romanticism" of Viagra in the company studied, but Viagra's enormous commercial success has reversed priorities. R and D's meaning system has proven to be no match for Viagra-ization--the article examines the resulting crisis in meaning systems.     

Commercialization and Chinese Cinema's Post-wave

The development of Chinese cinema's commercial entertainment trend from the mid to late 1990s was both the result and the manifestation of the Chinese film industry's shifting economic and cultural orientations. The marketization and decentralization of the film industry directly contributed to the surge of entertainment pictures. The ongoing economic reform was accompanied by the rise of popular culture led by Hollywood imports, which further opened the floodgates to Chinese cinema's commercial entertainment wave. Major cinematic trends during the period are addressed. Such trends directly responded to the industry's marketization agenda.     

Disclosing brand placement to young children

In spite of the EU's prohibition on brand placement in children's programmes, it is argued that children may still be exposed to this advertising format in many occasions. Consequently, and as children may have even more difficulties than adults to distinguish the commercial content from the editorial media content in which it is embedded, an advertising disclosure may be necessary to enable them to cope with brand placement. Entailing two one-factorial between-subjects experiments, the current article examined how different types of brand placement warning cues influenced cognitive advertising literacy and the attitude toward the placed brand, among children between 8 and 10 years old.

In a first study, it was investigated how these outcomes were influenced by warning cues with different perceptual modalities (no vs. auditory vs. visual cue, N = 98). The results showed that a visual warning cue was more effective than an auditory warning cue (vs. no warning cue) in addressing cognitive advertising literacy. However, this higher cognitive advertising literacy could not account for the effect of the visual warning cue on brand attitude.

In a second study, it was examined whether the effectiveness of this visual warning cue was influenced by the timing of disclosure (cue prior to vs. during media containing brand placement, N = 142). Additionally, it was tested whether the effect of the cue on brand attitude could be explained by cognitive advertising literacy if children's sceptical attitude toward the brand placement format was taken into account. The results showed that cognitive advertising literacy was higher when the cue was shown prior to than during the media content. This cue-influenced cognitive advertising literacy resulted in a more positive brand attitude, but only among children who were less sceptical toward brand placement. This positive relation disappeared among moderately and highly sceptical children.

These findings have significant theoretical, practical and social implications.     

Should companies hope instead? The role of verbal cues in consumers' evaluation of cause-related marketing (CRM)

Companies engaged in cause-related marketing (CRM) must demonstrate sincere commitment to gain consumer support. In this paper, we observe that consumers infer companies' commitment to the cause by the language used in the CRM promotional material. In a series of experiments, we compare the popular expression “we can make a difference” to “we hope to make a difference” in influencing consumers' response to the CRM. When consumers question company's motives—which can happen, for instance, when they do not perceive a congruency between the company and the supported cause (low firm/cause fit)—consumers seem to perceive the company to be less committed to the cause when the company says they “can” make a difference rather than “hope” to make a difference. Our conclusions offer implications for CRM by highlighting the importance of the words used and their semantic nuances to correctly reflect the company's motivations and thus communicate effectively.     

Search-Purchase (S-P) Strategies of Multi-Channel Consumers

Abstract

Our study sought to determine whether a consumer's search-purchase (S-P) strategy could provide a viable market segmentation tool for understanding consumer's channel choice behavior in today's increasingly complex, multichannel market environment. We collected data (N = 519) nationwide, using a self-administered mail survey and focusing on two product categories (books and apparel). Based on the respondent's search-purchase channel behavior, we identified nine segments and deemed three as viable: the Physical/Physical S-P strategist, the Cross/Cross S-P strategist, and the Cross/Physical S-P strategist. Our findings indicate that a consumer's S-P channel choice strategy is indeed a viable segmentation tool; furthermore, a consumer's S-P channel choice strategy is influenced by the consumer's level of sophistication in regard to the technology and by the benefits sought. We conclude by speculating on the uses that retailers could make of our study, and we propose several possible subjects for future studies.     

Equal Dreams: The One Child Policy and the Consumption of Education in Urban China

This study explores the effect that China's one child birth policy is having on gender equality in urban areas of China, as viewed through patterns of consumption. Specifically, differential access to education by gender is examined through an analysis of the investments of urban parents in their children's education. The results of the study show that there are few important differences in the aspirations of parents for daughters versus sons. In addition, educational expenditures, including tuition, private lessons, books, and other educational products, show no significant differences by gender. These results seem to indicate that, in an important departure from a long history of unequal access to education by females in China, urban children are receiving full and equitable investments in their futures by their families, regardless of their gender. The results have important implications for the effects that public policies can have on gender equality.     

The effects of managerial attitudes to design on company performance

Central to current thinking on what makes companies competitive is the notion that “it's not what you do, it's the way that you do it”. The way a task is carried out in a company is itself very much related to the attitudes and opinions of the company's managers. This article focuses on top managers’ attitudes to product design and shows which ones are related to superior competitive performance. An examination of the attitudes shows that there are seven basic managerial orientations to design. The most successful orientation is called the “balanced orientation” and consists of attitudes that underpin a commitment to leading the field technically and making developments market‐relevant.     

Mixing advertising and editorial content in radio programmes

Although the literature on brand placement is rapidly evolving, no studies thus far have focused on radio brand placement or on the effects of the combination of brand placement and commercials. Therefore, the present experiment (N = 153) focused on the effects of radio brand placement on liking, credibility and brand recall. In addition, the effects of the combination of brand placement and a commercial were studied. As predicted based on source credibility and intentional exposure theory, the results showed that brand placement is more liked and perceived as more credible than commercials, and that exposure to brand placement has a stronger effect on brand recall. A combination of brand placement and a commercial evokes higher brand recall than exposure to a commercial alone. However, there were no synergy effects for the combination of brand placement and a commercial. Underlying mechanisms were tested, showing the importance of format credibility in brand placement effects.     

Journal of Business to Business Marketing Part III: JBBM Book Reviews

ABSTRACT

A total of 131 books were reviewed over the period, 1993–2003 in the Book Review Section of the Journal of Business to Business Marketing. The books encompassed a broad array of topics, including the basic marketing mix elements of business-to-business marketing, purchasing, buyer-seller relationships, global marketing, Internet and e-commerce, organization studies, research methodology, strategy and general management and education. During this period, 5 review essays provided thematic and comparative evaluation of a set of books.

This cumulative index is divided into two sections. The first provides a subject listing of books reviewed and the second is a chronological listing. All book reviews are located at the end of each issue of the journal.     

Community Banks and Internet Commerce

ABSTRACT

This study examines the factors affecting a community bank's decision to develop Internet-based applications using survey data from representative community banks and secondary data regarding the financial institution's financial performance data (Call Reports). The results from a logistic regression show that there is a significant size effect in developing web and Internet commerce applications. Other factors determining Internet commerce activities include IT costs, use of PC-banking options, and the perceived competition in the local commercial loan markets.     

Gossage Revisited: Reflections of Advertising's Legendary Iconoclast

This article is an examination of the Supreme Court decisions that pertain to the status of advertising under the First Amendment's freedom of speech provision. The author asks to what extent national advertising—commercial communication from producers to consumers promoting the producers' brands—is constitutionally protected, and concludes that instead of giving the national advertiser greater freedom, the Court may have reduced his freedom by expecting more legitimate commercial information. In Virginia Pharmacy the Court made it clear that protection did not preclude regulation to insure that “the stream of commercial information flow(s) cleanly as well as freely.”     

Do I know you? How brand familiarity and perceived fit affect consumers’ attitudes towards brands placed in movies

The present study uses Associative Network Theory to construct a model that explains effects of brand placement in movies. Based on a field experiment (n?=?167), we investigate the effects of plot connection and prominence on brand attitude, as well as the mediating role of brand-movie fit and the moderating role of brand familiarity. Results show that more closely connecting a brand to the plot of a movie positively impacts brand attitude by increasing the perceived fit between the brand and the movie. Brand familiarity moderates the effect of the interaction between a placement’s plot connection and prominence on brand attitude. When brand familiarity is high, there is no significant effect of plot connection on brand attitude, nor is this effect moderated by the prominence of the placement. However, when brand familiarity is low, both prominently and subtly connecting the brand to the plot of the movie positively influences brand attitude. More importantly, the effect of plot connection is significantly stronger when an unfamiliar brand is prominently placed, than when it is subtly placed.