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How hospitality brands grow: What hospitality marketers should know about Andrew Ehrenberg’s work (invited paper for ‘luminaries’ special issue of International Journal of Hospitality Management)
Institution:1. 552 Statler Hall, School of Hotel Administration, Cornell University, Ithaca, NY 14850, United States;2. 548 Statler Hall, School of Hotel Administration, Cornell University, Ithaca, NY 14850, United States;1. School of Business, State University of New York at New Paltz, United States;2. College of Business and Economics, Towson University, United States;3. College of Business, Lewis University, United States;4. School of Business and Management, Donghua University, China;1. School of Marketing, Ehrenberg-Bass Institute for Marketing Science, University of South Australia, Adelaide, Australia;2. Department of Agricultural Economics, Stellenbosch University, Stellenbosch, South Africa
Abstract:Andrew Ehrenberg’s work challenges the emphasis that hospitality marketing practitioners, educators and academic researchers place on segmentation, targeting (especially of heavy users), positioning, and meaningful brand differentiation. However, few marketing practitioners and scholars in hospitality appear familiar with this work. This invited paper attempts to increase awareness and appreciation of Ehrenberg’s work as well as its relevance to and implications for hospitality marketing. Topics covered include the NBD Law, Law of Double Jeopardy, Duplication of Purchase Law, and Law of Natural Monopoly as well as the evidence of weak brand segmentation, low perceived brand uniqueness, and the generalizability of the brand belief-usage relationship.
Keywords:Market segmentation  Targeting  Loyalty programs
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