Deterrence or Conflict Spiral Effect? Exercise of Coercive Power in Marketing Channels: Evidence from China

Purpose: The article aims to test the appropriateness of deterrence and conflict spiral models in marketing channels. Both models have been alternatively used as bases to explain firms’ power-related behaviors in marketing channels. However, the issue of the appropriateness of such an application in various contexts has not yet been addressed.

Methodology/approach: The authors develop the hypotheses based on deterrence theory and their alternatives based on conflict spiral theory. They gather data from 204 sales representatives of suppliers in China and use linear regression analysis to test their hypotheses versus alternatives.

Empirical findings: The data analysis offers supportive evidence for the deterrence logic but with unexpected results. By elaborating on the empirical results, the original assumption of deterrence theory, and the nature of interfirm relationship in marketing channels, the authors modify the deterrence model for research on power related-behaviors in the given context. The analysis implies a possible explanation for inconsistent findings in the literature regarding exercises of coercive power.

Originality/value/contribution: This article proposes a revised deterrence model that can interpret the empirical results with a consistent logic and better predict power-related behaviors in marketing channels.

Research limitations/implications: The research results may lack generalizability with respect to channel type and culture. It does not directly test the cognitive mechanisms that mediate the impact of power on its exercise. Researchers are encouraged to directly test the mediating constructs in other channels or countries.

Practical implications: The article includes some insights and implications for managers in understanding power structure and implementing influence strategies in business-to-business marketing.     

A Measure for Companies' Customer Portfolio Management

Purpose/Contribution: Customer portfolio management (CPM) is one of the key areas of customer-relationship and network management in business markets. However, there is scant research about the implementation of this concept in business. This article contributes to this conceptually rich but empirically nascent field of CPM research by (1) conceptualizing customer portfolio management, (2) forming a measure for it, (3) validating the suggested measure, and (4) suggesting implications for future research and management.

Methodology: A CPM construct is proposed based on the synthesizing of the theory and the findings from a qualitative field study of companies' management practices. The suggested construct is formative and consists of the following four dimensions: analysis efforts, analysis design, responsiveness efforts, and responsiveness design. Hence, this conceptualization takes into account both the strength and style of companies' CPM practices. The measure is validated following Diamantopoulos and Winklhofer's (2001) Diamantopoulos, A. and Winklhofer, H. 2001. Index construction with formative indicators: An alternative to scale development. Journal of Marketing Research, 38(2): 269–277. [Crossref], [Web of Science ®] , [Google Scholar] guidelines for developing formative measures. Together with the content validity established in the conceptual phase of the research, the results from a cross-industry survey of 212 companies give support to the construct validity of the suggested CPM measure. Partial least squares modeling is applied in validating the measure.

Implications: This study gives an extensive, up-to-date review of customer portfolio management and provides measures for future research on companies' CPM practices and performance. Further, the theory and the field study highlighted several central topics that should be addressed in future CPM studies. The resulting managerial implications derive from the discussion on the key aspects of developing CPM practices in business.     

Local Retail Segmentation Using the CETSCALE

Abstract

The CETSCALE was used to segment a local retail luxury sedan market into pro-import and anti-import groups. Four versions of a newspaper advertisement for both Cadillac and Lexus luxury sedans were tested across these two segments. Non-comparative, weaker indirect comparative, stronger indirect comparative, and direct comparative advertising headlines were used in a between-subjects design. An existing automobile dealership selling both Cadillac and Lexus brands was used as the test sponsor. Results unexpectedly indicate that the pro-import segment favors the hard-hitting direct comparison format significantly less than the anti-import segment, finding it less believable, likable, convincing, and professional, plus more boring.     

Relationship and Market Conditions: Outcomes in Marketing Channels

Purpose: In today's highly competitive business environment, many organizations are tending to reduce the number of suppliers to focus on establishing stable and close relationships with a small number of them. The study here analyzes the influence of both market and relationship conditions on trust, commitment, and customer loyalty.

Methodology/Approach: Empirical research was conducted by collecting information from a sample of 304 retailers. A structural equations model is estimated.

Findings: Results support a positive influence of relationship value on trust and, in turn, on long-term orientation and commitment, with the latter as a strong antecedent of customer loyalty. In contrast, dependence on the main supplier does not seem to exert a significant effect on long-term orientation and commitment.

Originality/Value/Contribution: The evidence suggests that relationship conditions are important for creating value in B2B settings. Results shed additional light on the process of calculating, creating and claiming value.     

An Integrative Framework of Buyer–Supplier Negative Relationship Quality and Dysfunctional Interfirm Conflict

ABSTRACT

Purpose: Problems of relationship quality and interfirm conflict in business-to-business settings are serious concerns that need to be addressed. Thus, the authors have engaged in an extensive review to promote an understanding of these complex issues. This article develops an integrated framework for analyzing wide-ranging relations between individual representatives and patterns of interfirm incompatibility for managerial control.

Methodology/approach: The review involves numerous sources that include articles and monographs. A theoretical framework is constructed to integrate fragmented empirical data. In particular, social identity and commitment-trust theories are mobilized for this framework.

Findings: The review of studies has a substantial consistency with the theoretical framework. The article outlines a causal chain from interpersonal agent dissimilarities to dysfunctional buyer–supplier relations, culminating in interfirm pathological conflict. Moderating factors in the causal chain are: agent identity differentiation (for interpersonal dissimilarity), supplier relations mismanagement (for buyer–supplier relationship quality), and interfirm opportunism (for interfirm pathological conflict). Buyer–supplier interfirm incompatibility mediates the causal link between interpersonal dissimilarity and buyer–supplier relationship quality. Identity differentiation, the validation of one’s self-image, is introduced as a process that determines buyer–supplier agent interpersonal dissimilarity judgments. This framework uses a contextual perspective. It describes interactions between observations of micro-level phenomena of interpersonal dissimilarities and macro-level models of interfirm fit. From a managerial perspective, interpersonal relations between individual buyer and supplier agents may be further strengthened by such strategies as expanding the scope of the interpersonal relationship, relaxation of role responsibilities, and volunteering business-related contact referrals.

Originality/value: A new theoretical framework has been devised to predict and explain relationship quality and interfirm pathological conflict in the business-to-business context. The framework contributes to the value of the knowledge base by serving as a means for building new diagnostic tools for assessment of interfirm behavioral issues affecting exchanges. New concepts are introduced to enhance current literature on business-to-business marketing. The framework provides concrete

indicators that operationally define ideas and enable or improve measurement for empirical modeling.     

Accelerating Adoption of New Products of Thai Consumers: The Moderating Roles of Self-Brand Concept and Reference Group

The effect of consumer innovativeness on intention to purchase new products has been considerably investigated, but moderating effects to increase adoption rate of new products have thus far been overlooked. Drawing from the concept of consumer innovativeness, using survey research among Thai consumers, and analyzing data with hierarchical regression analysis, the author reveals that self-brand concept and reference groups can accelerate the adoption rate of new products. Successful firms can redefine marketing strategies to increase the adoption rate by developing new products and using brand strategy to fit with the individual or his/her group.     

The Dissemination of Marketing Knowledge in a Newly Emerging Democracy

No abstract available for this article.     

Driving Goal-Directed and Experiential Online Shopping

Goal-directed and experiential online shopping are two general categories of consumer behavior on the Internet. Internet stores promoting online transactions may face challenges regarding how to satisfy distinct online shoppers. This study develops a dual-state of cognitive and affective reactions to online services and flow experiences to predict goal-directed and experiential online consumer behavior. This survey mailed 300 questionnaires to a random sample of volunteers with substantial online shopping experience. Of these, 150 samples were returned for data analysis. Empirical results from the survey indicate that the dual-state of online services is more appropriate for assessing goal-directed purchase intentions than for examining the willingness to purchase experientially. In contrast, the dual-state of flow experiences is better at assessing goal-directed purchase intentions and the willingness to purchase experientially. Finally, this study features implications for academics and practitioners.     

Increasing advertising effectiveness through incongruity-based tactics: The moderating role of consumer involvement

Developing effective advertising communication has been traditionally regarded as an increasing function of the fit between consumers' perceptions and the content of the transmitted messages. Given that, relevant research has given only limited attention to the consideration of incongruent and dissonant communication. Against this background, the present study explores how consumers react to brand information that is in conflict with established perceptions. The moderating role of consumer involvement in the decision process is also examined. Consistent with predictions, the results support a positive effect for moderately incongruent communication, which, however, is attenuated in high-involvement decisions. The theoretical and managerial implications of these findings are discussed.     

Sport sponsorship,team support and purchase intentions

This research assessed the influence of team support and perception of sponsors on the purchase intentions of sport consumers. In a case study of a not‐for‐profit, membership‐based Australian professional football club, 1647 respondents reported their perceptions of team support, sponsor integrity and purchase intentions for the sponsor's products. Results revealed that the key pathway to purchase intention is associated with fan passion and a perception of sponsor integrity. This implies that the best mechanism for sponsor return on investment comes in the form of activities to bolster both passion for the team and perceptions of sponsor integrity.