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on Marketing |
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Issue of 2008‒05‒24
three papers chosen by Joao Carlos Correia Leitao University of the Beira Interior |
| By: | Oksana Loginova (Department of Economics, University of Missouri-Columbia) |
| Abstract: | This paper applies the theories of exposure order effects, developed in the psychology literature, to an industrial organization model to explore their role in advertising competition. There are two firms and infinitely many identical consumers. The firms produce a homogeneous product and distribute their brands through a common retailer. Consumers randomly arrive at the retailer and buy their most preferred brands. The order in which a consumer sees the advertising messages affects his brand preferences. Under the primacy effect the consumer prefers the brand he first saw advertised, under the recency -- the last encountered brand. The equilibrium of the advertising game is characterized separately under the primacy and the recency effects. In the first setting all consumers are initially unaware of the product existence. The equilibrium advertising intensities, remarkably, do not depend on the type of exposure order effect. In the other two settings some consumers have already formed their brand preferences. The primacy and the recency effects give rise to different equilibrium outcomes. |
| Keywords: | Advertising Order Effects, Primacy, Recency |
| JEL: | C73 D11 D43 L13 M37 |
| Date: | 2008–05–10 |
| URL: | http://d.repec.org/n?u=RePEc:umc:wpaper:0806&r=mkt |
| By: | Teresa M. Fernandes (Faculdade de Economia, Universidade do Porto, Portugal); João F. Proença (Faculdade de Economia, Universidade do Porto, Portugal); P.K. Kannan (University of Maryland, Robert H. Smith School of Business, USA) |
| Abstract: | This paper presents an historical analysis of relationship marketing. We discuss the roots and the directions of relationship marketing that are considered relevant: their origins, the Industrial Marketing and Purchasing group (IMP) approach to business relationships, the Nordic approach to services relationships and, the managerial and Customer Relationship Management (CRM) approach of relationship marketing. The paper highlights that the boundaries of relationship marketing as defined in contemporary literature have been permeable and elastic. Relationship marketing consists of a fragmented collection of different approaches, partly independent partly overlapping, inspired by different theories, with a multitude of aggregation levels and several units of analysis. We clarify the scope of this domain and we present a number of critical issues that remain unresolved. Is the concept of relationship marketing ubiquitous and can it be applied to every context? Are relationships alike whatever the market considered? Do they describe the same phenomena or are they different phenomena resulting from different contexts? We present a historical analysis of relationships marketing that could contribute to a better understanding of what relationships are in marketing. |
| Keywords: | relationships, business-to-business relationships, relationship marketing, CRM |
| Date: | 2008–05 |
| URL: | http://d.repec.org/n?u=RePEc:por:fepwps:274&r=mkt |
| By: | Teresa da Silva Lopes |
| Abstract: | This study analyses the strategic role of brands, in explaining the management of business in the global alcoholic beverages industry and also the techniques used by firms to exploit economies of scale and scope in the international marketplace. It explains the different ways in which brands have been traded, what were the strategies of enterprises behind the creation of global brands, and how their operations have been affected by this increased importance of brands in firms’ everyday lives. It argues that the increase in the trade of brands has been led by the need for brands to be managed by entrepreneurs and firms with different levels and kinds of knowledge, and that this knowledge is greatly determined by the stages in the lives of brands, and the types of markets in which the brand is sold. |
| Date: | 2008–05 |
| URL: | http://d.repec.org/n?u=RePEc:cgs:wpaper:10&r=mkt |