Marketing strategy and the internet: An organizing framework

Competitive strategy is primarily concerned with how a business should deploy resources at its disposal to achieve and maintain defensible competitive positional advantages in the marketplace. Competitive marketing strategy focuses on how a business should deploy marketing resources at its disposal to facilitate the achievement and maintenance of competitive positional advantages in the marketplace. In a growing number of product-markets, the competitive landscape has evolved from a predominantly physical marketplace to one encompassing both the physical and the electronic marketplace. This article presents a conceptual framework delineating the drivers and outcomes of marketing strategy in the context of competing in this broader, evolving marketplace. The proposed framework provides insights into changes in the nature and scope of marketing strategy; specific industry, product, buyer, and buying environment characteristics; and the unique skills and resources of the firm that assume added relevance in the context of competing in the evolving marketplace. P. Rajan Varadarajan is a distinguished professor of marketing and the Ford chair in marketing and e-commerce in the Mays Business School at Texas A&M University. His research and teaching interests are in the areas of strategy and e-commerce. His research on corporate, business, and marketing strategyrelated issues has been published in theJournal of Marketing, Journal of the Academy of Marketing Science, Academy of Management Journal, Strategic Management Journal, and other leading journals. He is coauthor of a textbook titledContemporary Perspectives on Strategic Market Planning. Dr. Varadarajan served as editor of theJournal of Marketing from 1993 to 1996. He currently serves on the Board of Governors of the Academy of Marketing Science and as editor of theJournal of the Academy of Marketing Science. Manjit S. Yadav is an associate professor of marketing and Mays Faculty Fellow, Department of Marketing, Mays Business School, Texas A&M University. He obtained his Ph.D. in marketing from Virginia Tech. His research focuses on electronic commerce, firms’ pricing strategies, and consumers’ price perceptions. He has published in a number of journals, includingJournal of Marketing Research, Journal of Consumer Research, Journal of the Academy of Marketing Science, andSloan Management Review. He is a member of the Editorial Review Board of theJournal of the Academy of Marketing Science. At Texas A&M, Dr. Yadav developed and currently teaches a graduate course (Strategic Foundations of E-Commerce) dealing with the strategic challenges and opportunities in the emerging electronic marketplace. He served as cochair of the American Marketing Association’s 2001 Faculty Consortium on Electronic Commerce held at Texas A&M University.     

First-mover advantage in an Internet-enabled market environment: conceptual framework and propositions

The competitive market environment has evolved from a physical market environment (PME) to an Internet-enabled market environment (IME) encompassing the physical and electronic marketplaces. At the same time, an increasing number of information products are available in both analog and digital forms. For information products in digital form, the IME also serves as a distribution channel. Such developments raise questions concerning the extent to which extant perspectives on first-mover advantage developed in the context of the PME hold in the IME, generally, and for information products specifically. We address this issue by developing a conceptual framework that focuses on selected sources of first-mover advantage delineated in the extant literature and advance propositions concerning sources that will have a greater or lower effect in the IME relative to the PME. A central message for first-movers in the IME that emerges from our conceptual analysis is to focus on achieving superior positions in resources that would enable them to get close to the customers fast, create switching costs, and retain them though ongoing investments in multi-faceted innovations. A second message that emerges for first-movers in the IME is they must take note of and make strategic adjustments for the potentially diminished significance of some traditional sources of first-mover advantage. These sources include spatial preemption, preemptive investment in capacity, and consumers’ choice behavior under conditions of uncertainty about product quality. We discuss the implications for further conceptual and empirical work in this area of increasing significance.

Marketing Strategy in an Internet-Enabled Environment: A Retrospective on the First Ten Years of JIM and a Prospective on the Next Ten Years

During the past decade, developments such as the rapid growth of the Internet, digitization of information products, and digitization of the information attributes of non-information products, has necessitated businesses to fundamentally rethink, as well as institute major changes in, their marketing strategies. Against this backdrop, we present a critical assessment of extant research on marketing strategy in an Internet-enabled environment viewed through the lens of research published in previous volumes of the Journal of Interactive Marketing (JIM), and speculate on the future of interactive marketing in the contexts of marketing practice, research in marketing and marketing education. Looking back, it is evident that marketing strategy and marketing operations have been transformed by the Internet in many ways. Looking ahead, it can be expected that marketing strategy and marketing operations will be even more extensively integrated and blended in the Internet-enabled market environment in the future.     

Co-movement and spillovers: empirical evidence from BRIC equity markets

A higher degree of co-movement and spillover effects among different asset classes undermine portfolio diversification benefits. In this regard, the present study attempts to capture dynamic co-movement and return-volatility spillover effects among the most promising emerging equity markets, i.e. Brazil, Russia, India and China in a multivariate framework by employing VAR-ABEKK and VAR-DCC-AGARCH (1,1) models. To further comprehend the behaviour of the correlation coefficients during the global financial crisis period (2007–2009), heat map and Markov regime switching model (two regimes with a switch at ‘mean’ level only) have been used. The results report that the BRIC equity markets do not share a common stochastic trend in the long run. There is strong evidence of market shocks to volatility, volatility to volatility and negative shocks to volatility spillover effects among the BRIC markets. Overall, the BRIC markets are partially integrated with each other, thereby making them stronger investment candidates.     

Value instantiation: how to overcome the value conflict in promoting luxury brands with CSR initiatives

Marketing Letters - When luxury brands (exuding self-enhancement values) incorporate CSR (eliciting self-transcendence values) in their brand platform, they are blending opposing values into their...     

How buyers forecast: Buyer–seller relationship as a boundary condition of the impact bias

People frequently overestimate the impact of an event when they imagine it, relative to when they actually experience it. This phenomenon, known as the impact bias, has been well established as an intrapersonal phenomenon. We extend it to the inherently interpersonal marketing setting involving buyer?Cseller dyads in which the two entities are bound by a relationship, and propose a moderating effect based on the strength of the buyer?Cseller relationship. An online panel study and three laboratory experiments provide converging evidence such that the impact bias emerges when the buyer?Cseller relationship is strong, but disappears when the relationship is weak.     

Understanding product migration to the electronic marketplace: A conceptual framework

We present a conceptual framework that organizes current thinking regarding increased interactivity in the electronic marketplace and its implications for product migration. Product migration refers to the extent of reliance by buyers and sellers on the electronic marketplace for activities pertaining to information search, purchase, acquisition, use, and disposal of a product. We posit that value outcomes derived by buyers and sellers from increasing interactivity mediate the relationship between interactivity and product migration. The relationship between interactivity and value outcomes for buyers and sellers is moderated by three sets of product-related characteristics: the core characteristics of the product, its purchase and use-related characteristics, and market characteristics. Inertia and resistance exhibited by buyers and sellers negatively impact product migration to the electronic marketplace and also attenuate the impact of value outcomes on product migration. In addition to guiding theoretical and empirical work in this emerging area, the proposed framework can also be employed to structure a firm's strategic discussions related to the electronic marketplace.     

Human resource diversity management practices in the Australian manufacturing sector

We examined employee perceptions of the benefits and challenges of workforce diversity and human resource (HR) diversity management practices adopted in the Australian manufacturing sector. We found that overt discrimination does not exist in the Australian manufacturing sector. However, Australian employers appear to adopt a ‘legalistic compliance approach’ and have not considered workforce diversity as a source of competitive advantage. Employers have not adopted effective HR diversity management practices. The Australian manufacturing sector has failed to value diversity or capitalize on the benefits of workforce diversity. Inadequate recognition of overseas skills, ineffective communication, increased training costs and social isolation were perceived as the main challenges, whereas a stronger work ethic among multicultural employees, greater opportunities to learn from other cultures, lower absenteeism and less labor turnover were regarded as major benefits of workforce diversity. Overall, we found migrant workers are disadvantaged in the Australian workplace.