European Journal of Marketing

Kostas Oustapassidis

doi: 10.1108/03090569810243578pmid: N/A

This paper tests for the presence of differences among the effectiveness of profitability determinants between strategic groups with advertised and unadvertised products by using both the regression analysis and the Chow‐test. Panel data for the 23 Greek dairy firms that operated over the period 1990‐94 are used to examine the determinants of firm profit margins. The results show significant differences for the effects of strategies on profitability between the two strategic groups. Only the firms with nationally branded goods, which are more profitable than the group of producers of unadvertised goods, can effectively apply both the advertising and the diversification strategies to increase profitability

Evangelos Xideas; Socrates Moschuris

doi: 10.1108/03090569810243587pmid: N/A

This article reports on the influence of product type on the purchasing structure within selected phases of the purchasing process by using regression analysis on data from Greek manufacturing and utility enterprises. Our study examined the influence of two different categories of items, namely product incorporated items and MRO (maintenance, repair and operating) items, on various aspects of the purchasing cycle. The results suggested that parameters of purchasing structure varied considerably between the two product types and that their configuration depended on attributes such as product complexity and environmental uncertainty.

P.T. Gibbs

doi: 10.1108/03090569810243622pmid: N/A

Time as a dependent (temporal patterning or allocation) or independent (temporal context) variable in the study of marketing problems has attracted a range of researchers who use a variety of paradigms. Common to the majority of approaches is the notion of an abstract, absolute, linear, irreversible, monotonic, homogeneous and divisible structure of time, into which consumer behaviour is set. In particular, current consumer models pay little attention to the phenomenological experience of both time and temporality. The perceived and experienced duration over which events can occur draws attention to notions of time beyond normal temporal horizons. This is illustrated through the example of certain financial service products where the expansion of everyday time horizons is required to understand the total consumption act. It is proposed that an understanding of the consumption act requires an insight into the consumer′s own temporality and that embedded in the product or service being consumed. Further, there needs to be harmony between these temporalities to optimise the utility to be gained from the transaction.

Willem Verbeke; Paul Farris; Roy Thurik

doi: 10.1108/03090569810243640pmid: N/A

The goal of this study was to gauge brand loyalty. To do this, a brand loyalty acid test was used, which involved an out‐of‐stock (OOS) experiment where the complete product line of a brand was removed from several stores in order to estimate the OOS responses of consumers. Three types of OOS responses were identified: switching brands; switching stores to get one’s favorite brand; and postponing purchase of a specific brand. The present study revealed that the brand loyalty of the consumers participating in the OOS experiment was substantial, as a large percentage of them switched stores or postponed purchase. The study also showed that neither competitive conditions of the retailer nor assortment change had any effect on consumers’ OOS responses. The most potent variables that affected OOS responses were the way consumers organized their shopping trips: store loyals more than others switched stores by OOS; and consumers with a small purchase amount per shopping trip were less likely to switch stores and more likely to postpone purchase. There also was a slight tendency for the consumer to spend less in the store during the OOS period. This paper suggests the implications of these findings for retailers and manufacturers.

G. Tomas M. Hult; O.C. Ferrell; Patrick L. Schul

doi: 10.1108/03090569810243686pmid: N/A

This study examines the effects of transformational and transactional leadership behaviors on cycle time, customer orientation, and relationship commitment in the purchasing process of a multinational services organization. The focus is on the activities and relationships between the international strategic business units (SBUs) and the corporate buying center leadership of the organization. Based on a sample of 346 SBUs and a series of 11 case studies, the results suggest that frequent and infrequent SBU users differ somewhat in the leadership behaviors preferred as determined by the effects on the three purchasing outcomes. The paper concludes with a discussion of the results and the implications for future research endeavors on global leadership in purchasing.

Robert E. Morgan; Carolyn A. Strong

doi: 10.1108/03090569810243712pmid: N/A

The specific domain of market orientation has been the subject of much scrutiny this decade. Both conceptual and empirical advances have been made to establish the marketing orientation construct as central to marketing decisions, business activities and organizational culture. However, a lacuna remains in understanding how market orientation may be related to competitive strategy. It is argued that market oriented activities and behaviours are articulated through strategic means which guides the firm in its product‐market. Conceptualized as “strategic orientation of the business enterprise”, competitive strategy is discussed as an important vehicle through which market orientation may be manifest. Six dimensions of strategic orientation are presented and statistical analyses, of data generated from a survey of medium and large industrial manufacturing businesses, specified “proactiveness”, “analysis” and “futurity” as positive and significant in their association with firms’ levels of market orientation. Discussion of these findings is made, along with various conclusions and implications of the study for executive and academic audiences.

Leslie de Chernatony; Francesca Dall’Olmo Riley

doi: 10.1108/03090569810243721pmid: N/A

Models of the components of brands are gaining more attention among practitioners and academics. We review why managers have a tendency to develop mental models and overview the key published models of the components of brands. Among 20 leading edge brand practitioners we found evidence of their using their own mental models to make sense of brand complexity. There were similarities between elements of their models and those of the “atomic brand model”. This particular model was favourably received by experts and from their evaluations we propose the more comprehensive “double vortex model” of the brand.

James F. Devlin

doi: 10.1108/03090569810243730pmid: N/A

This study explores practitioner views regarding which elements of the service offering to emphasise when formulating strategies to add value and, hence, gain competitive advantage in services markets. In particular, the case of retail financial services is emloyed to investigate hypotheses regarding variations in importance of elements of the service offer in adding value due to increased complexity and intangibility of some offerings and the resultant implications for consumer evaluation. Evidence suggests that these issues may be particularly relevant in the context of services and that consequently many of the common prescriptions regarding strategy formulation may be rather more difficult for services organisations to implement. It is found that factors such as image and reputation of the organisation, as well as functional service quality, are perceived to be particularly important in adding value to more complex financial services offerings. More surprisingly, the features and quality of the core service provided are also perceived to be more important in adding value to complex services. In addition, factors such as price, location and recovery are perceived to be significantly more important in adding value to more simple, rather than complex, offerings. Finally, conclusions are presented.

Adam P. Heath; Don Scott

doi: 10.1108/03090569810243749pmid: N/A

Evaluates the applicability of self‐concept and product image congruity theory within the new motor vehicle market. By utilising competitive product offerings, and by employing the perceptions of actual owners, the paper provides a true market assessment of the applicability of the theory. Respondents were examined using self‐concept and product value constructs and their responses were used to test a number of hypotheses. Among others, the results of analysis of variance indicated that when different brands of motor vehicles were physically similar, owners perceived no difference between their own self‐concepts and the self‐concepts they attributed to owners of competing product brands. This finding differs from previous research conducted on other products and suggests a different orientation by owners of similar motor vehicles to that suggested by self‐concept theory.

Gorm Kunøe

doi: 10.1108/03090569810243758pmid: N/A

The development of database marketing has brought a new set of possibilities to marketers. The use of one‐to‐one communication is a new way of closing the gap between the clients’ expectations and experiences. However, the realization of new one‐to‐one communication strategies has its limitations. According to Norwegian research presented here, the preconditions for carrying out one‐to‐one communication are only present to a very limited extent. The possibility of the ad agencies assisting their clients in their efforts to exploit a new individualized strategy by using marketing systems in their customer approach is very limited. The “core of dialogue” consists of six elements: the strategic formulation ability, the level of knowledge about one‐to‐one communication, the use of suitable marketing systems, what kind of data is registered, to what extent “soft” data on the client’s opinion is collected, whether changes in the agency’s organization is done according to demands from the market and whether product development is done according to demands from the market. The expression made up from the six elements constitutes the preconditions for communicating in dialogue. That is why we named the phenomenon “the core of dialogue”. A tool for clients and agency managers to test their own ability to perform dialogue‐based one‐to‐one communication is presented.