Customer satisfaction measurement and management: A processual analysis

Customer satisfaction (CS) measurement has been widely advocated as central to the pursuit of market orientation, total quality management, and competitive advantage by allowing management to monitor and improve performance in the terms most significant to customers. However, relatively little analytical attention has been devoted to the processual issues implicit in the adoption of CS measurement systems by organizations. This paper presents executive workshop data and new survey evidence to support the contention that both research and managerial agenda should be extended to recognize the multi‐dimensionality of organizational process, and the implications of that characteristic for the adoption and use of CS measurement systems.     

An internet marketing framework for the World Wide Web (WWW)

It is likely that the World Wide Web (WWW) will come to play a significant role in the marketing strategies of many organisations, even when it fails to become the dominant marketing communications channel. A framework is required whereby an organisation can assess the potential of, develop a role for, create and manage a WWW site within its marketing strategy. The WWW is an interactive channel offering a potential for many‐to‐many communications to all players in a market. Existing frameworks either fail to recognise the implications of this or else they ignore it. This paper attempts to develop a framework which invites organisations to fundamentally rethink their marketing strategies through consideration of the opportunities presented by the WWW.     

Editorial

The relationship marketing paradigm is gaining increasing credence in consumer markets. Marketers need to get close to their customers to establish exchange relationships, and this “intimacy” is achieved using database technology and direct marketing communications. However, in implementing relationship marketing in this way, the potential exists for the use of technology to result in invasions of individual consumer privacy. The literature on relationship marketing and privacy are reviewed, and the findings of six exploratory focus group discussions, conducted in the UK, are presented. The study suggests that what some consumers define as “intrusion” is similar to what has been called “intimacy” by marketers. Nine propositions are presented which reflect the implications of current approaches to relationship marketing in consumer markets. In particular, the integral elements of meaningful relationships are absent or inhibited as a result of consumer concerns over intrusions of their privacy. Thus, marketers need to adapt their attitudes, behaviours, and processes in order to accommodate the participation of the consumer in the relationship. The implications for marketers are identified, and directions are offered for future research.     

Fashion creation and diffusion: The institution of marketing

Abstract

In scholarly discussions, marketing tends to be imagined and (re)presented as a practice of organisations, involving a set of activities, whereby consumer desires are discovered and provided for through two-way communication. By studying the creation and diffusion of fashion, we observe that marketing is not simply a mechanism or set of activities but an institution of modern society that involves all social elements together with consumers and marketing organisations. Through a qualitative inquiry with both consumers and producers, we illustrate how these different elements exercise their roles and responsibilities for marketing to work as an institution. By this illustration, we also provide a perspective on how trickle-up, trickle-across, and trickle-down diffusions are simultaneously operative in fashion. Finally, we articulate the implications of recognising marketing as an institution that will help marketing scholars and practitioners in reorganising and re-strategising their purpose and role in society as modernity evolves.     

How are young music artists configuring their media and sales platforms in the digital age?

Abstract

Research on how music artists generate sales from their content through different platforms is scant. In this study, configuration theory is used to show that different market access configurations are viable simultaneously and that young musicians differ significantly in how they generate revenues. Using data on the media and sales performance of 338 young musicians in the Netherlands, we show that there is an ‘Emerging Star’ group (7–13% of artists depending on regional scope) and that record labels play an important role in this configuration providing broad media access on all platforms, both old and new. Digital age ‘Independents’ (14% of young artists), mostly without a record label, seem to benefit from the use of social media while exploiting synergies around live music. All artists in the remaining groups ‘Question Marks’ and ‘Hobbyists’ experience low to very low performance on all platforms. This study shows that configuration theory can provide detailed insight into viable and unviable marketing strategies. In particular, it shows that the globally declining music CD platform can still be very important for specific artists that exploit synergies between live performances, on-site CD sales and social media fan relationship management. The implications for marketing theory and young music artists are discussed.     

Multinational companies and the growth of the U.S. trade deficit

This article examines the role of multinational companies (MNCs) in the growth of the U.S. trade deficit. Estimates of MNC-related trade are developed for 1977, 1982, and 1987. The data show that MNCs are associated with a significant share of U.S. trade and that the trading activities of multinational companies can be linked to significant trends in the U.S. trade balance.     

Environmental determinants of U.S. foreign direct investment in developed and developing countries: A structural analysis

This study attempts to explain theoretically and empirically the influence of developed and developing countries’ environments on foreign direct investment from the United States. It is postulated that foreign direct investment into these economies can be explained by examining interactions among three environmental constructs: technological development, quality of life, and political instability. A structural equation model is developed to test the concurrent and longitudinal influence of the three environmental constructs on foreign direct investment into these economies from the United States.     

A trade theoretic analysis of outward capital flows: with special reference to Hong Kong

This paper sets up a trade theoretic model to explain the output, price and welfare consequences of the outward investment from Hong Kong to the Pearl River Delta. A four-good trade theoretic model is set up to incorporate some special features of the Hong Kong Economy. We assume that the economy produces four goods: an exportable good, an importable good and two non-traded goods. A special feature of the model is that one of the non-traded goods (locally produced) is also consumed by foreigners and produced under the assumption of non-competitive market framework. As tourist or business-centre trade is of great significance to Hong Kong, this model allows us to capture this phenomenon. First, precise conditions are derived regarding the decline in manufacturing output in Hong Kong. Second, it is shown that, in spite of the supply side determination of the relative price of non-traded goods, income effects in this market are of great significance in both income (welfare) and output movements. These income effects cannot be captured in industrial organization type applied work. Third, it is shown how outflow of capital affects labour productivity. A surprising result obtained for this part of the analysis is that a fall in productivity (outflow of capital and de-industrialization) creates a favourable terms-of-trade effect in the monopolized sector. The welfare effect consists of four terms: (1) a terms-of trade effect via the price of non-traded goods consumed by tourists/foreigners; (2) the loss (gain) in productivity due to an outflow of capital; (3) repatriation payments; and (4) the gains from exporting from the Special Economic Zones as well as other Pearl River Delta cities. Our decomposition has two very important features in contrast to traditional models: a terms-of-trade effect from the consumption of services and productivity gains or losses. The last point is exceedingly important for policy makers specifically if outward flow of capital affects productivity negatively.     

Market Model-Based Channel Selection in B2B E-Commerce: Exploring a Buyer's Adoption Decisions

Companies that seek to exploit the cost advantages of business-to-business (B2B) e-Commerce face a variety of strategic options. By analyzing the demand and cost functions for sellers, intermediaries, and buyers, this research develops an economic framework that clarifies the relative advantages of four common B2B e-Commerce channels: private exchange, web-based procurement, public aggregation, and public exchange. This research focuses on addressing two important questions: (1) How does a buyer select a suitable B2B e-Commerce channel (or an e-Marketplace structure) given a variety of market conditions, different levels of product substitution, and a range of purchasing patterns? (2) How does a buyer successfully manage a B2B e-Commerce channel for gaining the highest transaction-level buyer surplus? The analytic and numeric results of our study show that a company's product offerings, the market conditions it faces, and the purchase patterns it implements are all important determinants in the selection of B2B e-Commerce setting. For custom products, private networks (such as the private exchange or web-based procurement models) are more attractive than the public aggregation or exchange models. However, taking market conditions and purchasing behavior into consideration, the web-based procurement model is more suitable for spot purchasing, while the public exchange model is more suitable for systematic purchasing and fragmented markets. On the other hand, the aggregation model is preferable in concentrated markets while the exchange model is more suitable in fragmented markets. These results provide important implications for industrial development of B2B e-Commerce.