nep-mkt New Economics Papers
on Marketing
Issue of 2008‒06‒27
three papers chosen by
Joao Carlos Correia Leitao
University of the Beira Interior

  1. Consumer Loyalty in the Swedish Pharmaceuticals Market By Granlund, David; Rudholm, Niklas
  2. The Importance of Character Education for Tweens as Consumers By Noha El-Bassiouny; Ahmed Taher; Ehab M. Abou Aish
  3. Linking perceptual and behavioral customer metrics to multi-period customer profitability: A comprehensive service–profit chain application By B. LARIVIÈRE

  1. By: Granlund, David (Department of Economics, Umeå University); Rudholm, Niklas (Department of Economics, Dalarna University)
    Abstract: The purpose of this paper is to test if consumer loyalty is stronger toward brand name pharmaceutical products and branded generics as compared to "true" generics in the Swedish pharmaceuticals market. The results show that consumers are equally loyal toward brand name pharmaceuticals and branded generics, while substantially less loyal toward generics. The results thus seem to give support to the idea that brand name recognition is important in creating consumer loyalty toward pharmaceutical products.
    Keywords: Brand loyalty; Branded generics; Parallel import; Generic competition
    JEL: D12 I11
    Date: 2008–06–17
  2. By: Noha El-Bassiouny (Faculty of Management Technology, The German University in Cairo); Ahmed Taher (American University in Cairo); Ehab M. Abou Aish (Faculty of Management Technology, The German University in Cairo)
    Abstract: Tweens is a term that denotes a market segment mentality that falls between children at the lower end and teens at the upper end. Tweens marketing strategies are considered critical for most global brands. Advocates against excessive consumerism and materialism polluting innocent childhood, specifically tweens, call for values implantation through character education in the school to breed more educated consumers. The effect of implanting character building programs in schools on the consumer behavior of the exposed children in the marketplace, however, has never been tested before. This research endeavor is, in essence, an overlap between consumer behavior and educational psychology, investigating the link between personality and behavior in the market. It falls under both positivist and interpretive consumer research, specifically the consumer socialization of children. The aim of this work is to develop a conceptual model linking character education to purchasing lifestyles and consumption patterns of the exposed children as consumers. Following, prospects for future research are highlighted.
    Keywords: Educational psychology, character education, attitudes and lifestyles, opinion-leadership, humanitarianism, ethnocentrism, adolescents and middle schools
    JEL: M30 M31
    Date: 2008–06
    Abstract: This study proposes and empirically tests a comprehensive service-profit chain (SPC) framework that links survey-based customer satisfaction (CS), service quality (SQ), and share of wallet (SOW) measures to longitudinal data on two outcome variables – customer retention, and customer profitability – gathered from a financial services company’s internal records. The framework also incorporates other potential determinants of customers’ actual behavior (e.g., demographics, loyalty intentions, switching costs). The study offers several important insights. First, it demonstrates that an “interactive customer segment” (one that replaces current offerings with newer ones) is more profitable than are other segments. Second, it augments current knowledge about the SOW-profitability link by revealing that: (i) different levels of SOW generate not only different levels of customer profitability (cross-sectional effect), but also different profitability trajectories through time (longitudinal effect), with the high-SOW segment outperforming full- and low-SOW segments, and (ii) the longitudinal relationship between SOW and profitability is nonlinear, with heterogeneity in profitability across customers being significantly higher than the variability of the observed profitability values over time.
    Keywords: Service-Profit Chain, Share of Wallet, Retention Behavior, Multi-Period Customer Profitability, Financial Services
    Date: 2008–05

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