Maximizing Profits for a Multi-Category Catalog Retailer

It is a common trend in the retail industry for catalog retailers to mail multiple catalogs, each promoting different product categories. The existing catalog mailing models do not address the issue of optimizing multi-category catalog mailing. We address this research gap by introducing a model that integrates the when and what components of a customer's purchase decision into the how much component (number of catalogs) of a firm's cross-selling strategy. In addition to comparing the impact of category-specific versus full product catalogs in generating sales in a specific category, the study also finds relative impacts of various category-specific catalogs. We jointly estimate the probability of purchase and purchase amounts in multiple product categories by using multivariate proportional hazard model (MVPHM) and a regression based purchase amount model in a Hierarchical Bayesian framework. The model accounts for unobserved heterogeneity, and uses a control function (CF) approach to account for endogeneity in catalog mailing. The results from the Genetic Algorithm (GA) based optimization suggest that the catalog mailing policy as per the proposed model would be able to generate 38.4 percent more customer lifetime value (CLV) from a sample of 10 percent of the households as compared to the current catalog mailing policy of the retailer by reallocation of the catalogs across customers and mailing periods based on their propensity to buy.     

The Business Model and Firm Performance: The Case of Russian Food Service Ventures

Using a unique methodology for capturing the business model and drawing comparisons across larger samples of firms, we investigate the relationship between business model design and firm performance in a Russian context. The evolution of the business model concept and its components is reviewed. Empirical research was conducted on the basis of a cross‐sectional survey of firms in the food service industry. A typology of seven business models in this industry is produced, and linkages are established between model type and company performance.     

Increasing the Informational Content of Reach and Frequency Estimates

This article discusses the limitations of present methods of analyzing the coverage of advertising schedules and presents a technique for obtaining additional information from traditional measures of schedule coverage. This technique models entire patters of audience exposure to commercials by means of a compound Bernoulli distribution that can be estimated from reach and frequency data. Knowledge of the complete pattern of audience exposure to advertising schedules assists the media analyst in selecting optimally effective advertising schedules and consequently enhances the probability of conducting a successful advertising campaign.     

Synchronising retail and space: using urban squares for competitive place differentiation

This essay probes the critical dimensions of consumer‐culture theory (CCT) by investigating managerial tendencies toward integrating consumers from above or even imposing culture from on high, rather than viewing consumer culture as something that arises from the consumers themselves. Illustrations based on the use of background music or Muzak support concerns that culture is degraded by marketers as a means of social control. Attempts of an organization such as Pipedown to resist background music present an impression of futility in the face of hegemony. Hence we draw attention to the apparently predominant commercial thrust toward and mass susceptibility to manipulation, as born out by the ubiquity of background music and by the apparent lack of meaningful counter‐play by consumers. Noting the lacunae in our critical understanding of consumption, markets, and culture from the CCT perspective, we consider the ideological consequences.     

The organization of the future: Unity of marketing and strategy

Marketing and strategy, while once diverse activities and entities, are moving ever closer together—in this paper it is speculated that they may someday become one. This is in response to changing business environments, and to the emergence of new organizational forms. However, a more fundamental force may be the simple recognition that without relationships there is no need for strategy, and that relationships are fundamental to marketing.     

The impact of technology on the Arab communication style and culture: Implications for marketing

‘Culture is communication and communication is culture,’ as Hall (1976, Beyond culture, Garden City, NY: Anchor Books, Doubleday) reminds us. The main purpose of this paper was to assess the impact of technology on the Arab communication style. The Internet is a unique environment with particular characteristics that might cause shifts in people's communication styles. The setting/context of online communication is very different from face-to-face communication and thus assumptions about communication styles need to be reexamined. The data analysis indicates that significant changes to the Arab culture are taking place and these changes are likely to have an impact on marketing practices in the region.     

The legislative reform of union government 1979–94

This article outlines Conservative legislation on union government, documenting extensive regulation in place by 1994. It looks at the major objectives of government policy, including the twin themes of encouraging individualism and reducing union power. The degree of success achieved is examined and a framework in terms of competing rationalities outlined.     

Towards more effective consumer market-place interventions — A model for the improvement of O.F.T. codes of practice

In the U.K., the Office of Fair Trading (O.F.T.) is required to encourage trade associations to prepare and disseminate codes of practice for the enhancement of trading practices. In this paper the authors put forward a model of prerequisites for O.F.T. Code effectiveness. The model is then used to investigate and develop insight into the effectiveness of codes already in existence and to explain the successes and failures of these market-place interventions. Finally, the potential impact of the proposed general duty to trade fairly is considered in the context of the model.

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Effektivere Interventionen auf Konsumgütermärkten — ein Modellansatz für die Verbesserung der Verhaltensrichtlinien der englischen Wettbewerbsbehörde

Zusammenfassung Die englische Wettbewerbsbehörde, das Office of Fair Trading, ist verpflichtet, bei den einzelnen Wirtschaftsverbänden auf die Erarbeitung und Verbreitung von Verhaltensrichtlinien zu drängen, die der Verbesserung von Handelspraktiken dienen.Die Authoren stellen ein Modell der Voraussetzungen für die Effektivität solcher Verhaltensrichtlinien vor, das in Figur 1 zusammengefaßt ist. Mit Hilfe dieses Modells werden die bereits bestehenden Verhaltensrichtlinien analysiert. Vor allem werden die Erfolge und Mißerfolge solcher Markteingriffe erklärt. Schließlich wird die potentielle Wirkung der vorgeschlagenen allgemeinen Pflicht zu lauterem Wettbewerb im Lichte dieses Modells diskutiert.

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William Richardson is acting subject leader and a member of the Business Policy team at Sheffield City Polytechnic. He was formerly Consumer Affairs Officer for South Yorkshire County Council. His address: The Gables, Royston Road, Cudworth, Barnsley S72 8TU, S. Yorks, U.K. David Morris is Dean of the Faculty of Business at Coventry Lanchester Polytechnic, Priory Street, Coventry CV1 5FB, U.K.     

Developing a typology of affective responses to advertising

This article identifies—and then validates—a set of categories for use in the measurement of affective responses to advertising. Unlike previous categories developed for this purpose, these are first extracted by cluster analysis and then also subjected to formal tests for reliability and for convergent, discriminant, concurrent, and predictive validity.     

Functional marketing plan development in department store retailing

Retailers are now implementing the types of formal marketing planning programs that have long characterized consumer goods firms. The functional marketing plans that are developed tend to be a year or less in duration. The primary responsibility for developing the plans resides with the general merchandise manager. The planning efforts of the retailing executive, in spite of their short term nature, do reflect an awareness of the importance of understanding the strengths and weaknesses of competitors and of the need to spell out issues involving profit planning, sales promotion planning, merchandise addition/deletion decisions, and issues involving inventory/physical distribution. A variety of marketing plans are developed. Separate plans are developed by merchandise lines in many organizations. The authors wish to express their appreciation to The Conference Board for permission to use the questionnaire, with modifications, underlying research for The Marketing Plan, Report No. 801, The Conference Board, 1981, as the basis for formulating the questionnaire used in this research