The Bulgari Connection

Abstract

Product placement is the business process that seamlessly inserts an advertiser's commercial message into various entertainment and informational media vehicles (movies, videos, television programs, radio shows, newsletters, books, etc.) as an indigenous part of the story line. This paper presents an analysis of the controversy surrounding British novelist Fay Weldon's decision to accept financing from the famed Italian jewelry company Bulgari to prominently mention the firm and its products in her 2001 book, a fast-paced social comedy. The contract specified at least 12 mentions. However, in an interesting twist, Weldon decided to feature Bulgari prominently in the plot and incorporate the company name in the title. The Bulgari Connection(U.S. distributor, Grove/Atlantic) is believed by many to be “the first major novel containing paid product placement,” although other books with commercial tie-ins predate it.     

The power of consumption-imagery in communicating retail-store deals

We show that subtle differences in textual marketing communications can impact the evocation of consumption-imagery, implicitly subsuming all the senses, which consequently affects consumer attitudes toward the communication and the product. Specifically, we demonstrate, through four experiments, that retail-store deals which communicate stronger association between products (“get matching shirt free”) are more imagery-evocative compared to those with weaker association (“get second item free”), thereby impacting consumer evaluations. We use literature on imagery, sensory perception, and information processing, specifically relational and item-specific processing, to build our hypotheses. We also provide evidence for how working memory capacity limitations disrupt imagery processing. Our results on effective communication of retail-store deals are even more crucial in today's digital marketplace where imagery is especially important.     

Responses to Destination Advertising: Differentiating Inquirers to a Short,Getaway Vacation Campaign

Abstract

To be effective in a competitive environment, many of the strategic decisions that shape an advertisement need to be based on an implicit understanding of how the consumer thinks. An advertising tracking model based on a hierarchy of effects was used to study inquiries to a direct response campaign that advertised short, vacation packages. A significant discriminant function demonstrated the model's usefulness in differentiating inquiry-fulfillment from inquiry-purchase. The functional benefits of the package (e.g., price, convenience) were elements of the model that played the strongest role in distinguishing and prompting inquiry-purchase. Both inquiry responses were motivated by the same experiential desires, and were based on similar levels of interest in and impressions of the destination. In the context of such direct response campaigns, these findings support modifications to the motivational component of the model. A managerial implication of this noted that follow-up promotion could reposition the offer, with changes to the package's functional attributes specifically targeting the inquiry-fulfillment database. This tactic may prove effective in persuading past inquirers to reconsider and purchase a trip.     

Using Trade Shows Throughout the Product Life Cycle

Abstract

Trade shows have long been recognized as an important marketing tool when introducing new products. This study examines the effectiveness of trade shows across the product life cycle (PLC). The results indicate that trade shows are an effective promotion tool for products in any stage of the product life cycle, but the nature and objectives of show use change over the life cycle.     

Retailers’ incentives for green investment in differentiated competition channels

With increasing public environmental awareness, green activities in retail and distribution processes have become crucial tools for retailers to boost demand and enhance competitiveness. This study develops an analytical model to study the green investment choices of two differentiated retailers dealing with a common green manufacturer. It also explores the impacts of these investment choices on the manufacturer's operational decisions, channel efficiency, consumer welfare, and the environment. We derive three main results. First, the powerful retailer always favors green investments, whereas the less powerful (inferior) retailer may either prefer or avoid green investments. The fiercer the inter-retailer competition, the lower the willingness of the inferior retailer to introduce green investments. Second, although all supply chain parties may disagree on their preferences for retailers' green investments, a bilateral green investment (i.e., both retailers make green investments) can reach an incentive alignment for all firms if the differentiation between retailers is low enough and the competition between them is not substantially fierce. Moreover, a bilateral green investment improves consumer welfare and channel efficiency because of the great demand expansion and double marginalization reduction. Third, the retailers' green investments can motivate the manufacturer to produce greener products, but they do not necessarily benefit the environment. We show that the supply chain's economic sustainability aligns with its environmental sustainability only if the environmental improvement efficiency of green investments is substantially high. We further examine the impact of retailers with differentiated green investment abilities and the manufacturer's green investment efficiency to verify the robustness of the main results.     

An empirical study of consumer behavior related to private labels and national brand promotions

One day while in the store, Bernard grabs his usual Dominick's cream cheese off the shelf. I notice and point out that the national brand of Philadelphia cream cheese is on sale and less expensive. Bernard looks at the two products and actually hesitates for a while to switch to the national brand. His hesitation makes it clear that his preference is not based solely on price. (Chang Coupland 2005, 115).     

Effects of sales promotion type and promotion depth on consumer perceptions: the moderating role of retailer reputation

This study uses a between-subjects experimental design to test the effect of two sales promotion formats (coupon versus markdown) with either high and low face values on consumer attitudes toward the deal, perceived product quality, and purchase intentions. The reputation of the retailer offering the deal is predicted to moderate the relationship between the promotional offer and consumer responses. Consumers perceive product quality to be higher when offered a high value coupon vs. markdown but there is no significant difference in perceived quality across promotion types when the promotion face value is low. When a deep price discount is offered by a retailer with a negative reputation, however, consumers have more favorable attitudes toward the deal and higher purchase intentions when provided with a markdown vs. coupon. Conversely, a high value coupon elicits more favorable evaluations than a markdown when the retailer has a positive reputation. When the value of the promotion is low and the retailer has a positive reputation, consumers have more positive deal attitudes and purchase intentions when offered a markdown vs. coupon. There is no significant difference in the effects of promotion type when the retailer has a negative reputation. The findings therefore establish retailer reputation as an important moderator of sales promotions effectiveness. This research is limited by the use of a single product category and a student sample. Process measures are also needed to validate the proposed theoretical conceptualization. The results provide managers insight into the type and value of the sales promotion to offer based on consumer perceptions of the retailer's reputation in the market.     

An Investigation of the Success of Targeting Newspapers and Efficiency of Advertising in Ireland

ABSTRACT

Segmentation and targeting have been considered a central component of marketing strategy for any organization for decades. This study considers the ability to utilize Irish print media to successfully target a high value segment. The aim of this study is twofold: first, to examine reader profiles of Irish daily papers and, second, to consider the accuracy of claimed target readers. Data from the Joint National Readership Survey was utilized to profile readers of the major newspapers available in Ireland. Results suggest once actual circulation size is taken into account there is unlikely to be any advantage in buying advertising space in a publication that claims to target a specific target reader with a smaller circulation, rather than buying advertising in a large circulation mainstream tabloid.     

Word of mouth as a promotional tool for turbulent markets

Word‐of‐mouth advertising involves activities to encourage consumers to talk about a product or company to friends and neighbours, setting in motion a chain of communication that could spread through a whole market. Each activity, itself small and relatively unimportant, could escalate through word of mouth to create strong, positive brand images and beliefs. A major characteristic of chaos theory, sensitive dependence on initial conditions (the butterfly effect) is at work in word of mouth. This paper reviews word of mouth literature from a chaos/complexity theory perspective. Using a multiple case study approach, the significance of word of mouth in turbulent markets is assessed. It was found that more successful companies tended to use word of mouth proactively, and that it is an effective marketing tool for turbulent environments. Furthermore, chaos theory is shown as a good lens through which to view word of mouth. This paper is important because word of mouth has had little attention from the academic community, with the exception of electronic or Internet based word of mouth. Furthermore, it suggests an academic theory to underpin word of mouth that has not been considered before. In addition, it is important because, in South Africa and possibly in other under‐developed and developing countries, word of mouth is critical to marketing to less sophisticated or literate markets.     

大型零售企业与供应商合作关系演进——基于渠道关系生命周期视角

本研究以关系生命周期理论为分析工具,构建了大型零售企业与供应商合作关系演进构念模型,探究了大型零售企业与供应商合作关系演进轨迹,并结合案例对零供合作关系不同生命周期阶段所呈现的特征进行了深入分析。本研究对改善目前国内零售企业与供应商的关系,引导零售企业和供应商更健康的发展,有典型的参考价值与普适的借鉴意义。