nep-mkt New Economics Papers
on Marketing
Issue of 2008‒04‒04
six papers chosen by
Joao Carlos Correia Leitao
University of the Beira Interior

  1. Relationship Marketing: From Its Origins to the Current Streams of Research By Carlos Brito
  2. Integrating the Voice of Customers through Call Center Emails into a Decision Support System for Churn Prediction By K. COUSSEMENT; D. VAN DEN POEL
  3. SMEs and Competitive Advantage: a Mix of Innovation, Marketing and ICT. The Case of "Made in Italy" By Eleonora Di Maria; Stefano Micelli
  5. Tobacco and Alcohol: Complements or Substitutes? A Structural Model Approach By Tauchmann, Harald; Göhlmann, Silja; Requate, Till; Schmidt, Christoph M.
  6. Using the Right Emotion to Promote the Right Product to the Right Person By T. FASEUR; M. GEUENS

  1. By: Carlos Brito (Faculdade de Economia da Universidade do Porto, Portugal)
    Abstract: As companies increasingly recognize the importance of interaction with customers, relationship marketing is assuming a central place in both marketing theory and practice. The purpose of this working paper is to offer a general overview of the roots of relationship marketing as well as of its conceptual background. In this regard, two important streams of research are examined and discussed – the Nordic School and the IMP Group – along with the contribution of the Anglo-Australian School and the relationship approach to branding.
    Keywords: relationship marketing, transaction marketing, services, business-to-business marketing, distribution channels, branding
    JEL: M31
    Date: 2008–03
    Abstract: We studied the problem of optimizing the performance of a DSS for churn prediction. In particular, we investigated the beneficial effect of adding the voice of customers through call center emails – i.e. textual information - to a churn prediction system that only uses traditional marketing information. We found that adding unstructured, textual information into a conventional churn prediction model resulted in a significant increase in predictive performance. From a managerial point of view, this integrated framework helps marketing-decision makers to identify customers most prone to switch. Consequently, their customer retention campaigns can be targeted effectively because the prediction method is better at detecting those customers who are likely to leave.
    Keywords: customer relationship management (CRM), data mining, churn prediction, text mining, call center email, voice of customers (VOC), binary classification modeling
    Date: 2008–02
  3. By: Eleonora Di Maria (University of Padua); Stefano Micelli (University of Bari)
    Abstract: Global economy is transforming the sources of the competitive advantages of firms, especially for firms embedded in local manufacturing systems. Based on the theoretical contributions to knowledge management and industrial districts, this paper describes alternative firm's strategies and upgrading options by exploring the relationships among innovation, marketing and network technologies. Starting from the analysis of the Global Competitiveness Report and the European Innovation Scoreboard, this paper focuses on the case of firms specializing in the "Made in Italy" industries (fashion, furniture, home products) to outline a framework explaining the new competitive opportunities for SMEs. Through a qualitative analysis,this paper presents four case studies of Italian firms that promote successful strategies based on a coherent mix of R&D-based innovation, experienced marketing and design, by leveraging on ICT.
    Date: 2008
  4. By: Y. FASSIN
    Abstract: The popularity of the stakeholder model has been achieved thanks to its powerful visual scheme and its very simplicity. Stakeholder management has become an important tool to transfer ethics to management practice and strategy. Nevertheless, legitimate criticism continues to insist on clarification and emphasises on the perfectible nature of the model. <br>Here, rather than building on the discussion from a philosophical or theoretical point of view, a different and innovative approach has been chosen: the analysis will return to the origin of stakeholder theory and will keep the graphical framework firmly in perspective. <br>It will confront the stakeholder model’s graphical representation to the discussion on stakeholder definition, stakeholder identification and categorisation, to re-centre the debate to the strategic origin of the stakeholder model. <br>The ambiguity and the vagueness of the stakeholder concept are discussed from managerial and legal approaches. The impacts of two major shortcomings of the popular stakeholder framework are examined: the boundaries and the level of the firm’s environment, and the ambivalent position of pressure groups and regulators. Working pragmatically, with a focus on the managerial and organisational perspective, an attempt is made to clarify the categorisations and classifications by introducing new terminology with a distinction between stakeholders, stakewatchers and stakekeepers. The analysis will finally lead to a proposed upgraded and refined version of the stakeholder model, with incremental ameliorations close to Freeman’s original model and a return of focus to its essence, the managerial implications in a strategic approach.
    Keywords: stakeholder, stakewatcher, stakekeeper, stakeholder model, stakeholder theory, strategy, graphical framework, Freeman’s model, pressure groups, business ethics
    Date: 2008–02
  5. By: Tauchmann, Harald (RWI Essen); Göhlmann, Silja (RWI Essen); Requate, Till (University of Kiel); Schmidt, Christoph M. (RWI Essen)
    Abstract: The question of whether two drugs – namely alcohol and tobacco – are used as complements or substitutes is of crucial interest if side-effects of anti-smoking policies are considered. Numerous papers have empirically addressed this issue by estimating demand systems for alcohol and tobacco and subsequently calculating cross-price effects. However, this traditional approach often is seriously hampered by insufficient price-variation observed in survey data. We therefore suggest an alternative instrumental variables approach that statistically mimics an experimental study and does not rely on prices as explanatory variables. This approach is applied to German survey data. Our estimation results suggest that a reduction in tobacco consumption results in a moderate reduction in alcohol consumption. It is shown theoretically that this implies that alcohol and tobacco are complements. Hence, we conclude that successful anti-smoking policies will not result in the unintended side-effect of an increased (ab)use of alcohol.
    Keywords: complements or substitutes, interdependence in consumption, tobacco and alcohol, insufficient price-variation, instrumental variables approach
    JEL: C31 D12 I12
    Date: 2008–03
    Abstract: This article deals with the ego-other-focus dimension of emotions–referring to the degree to which people see themselves as independent from or interdependent with others– and addresses the question which emotions should be used to promote specific products or to persuade a specific group of people. The findings of the experiment suggest that for a privately consumed product, ads evoking an ego-focused emotion scored better than ads evoking an other-focused emotion, whereas the reverse was true for a publicly consumed product. However, this interaction effect was only present for extravert and not for introvert respondents. Theoretical and practical implications, together with some future research ideas are suggested.
    Date: 2008–02

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