nep-mkt New Economics Papers
on Marketing
Issue of 2019‒03‒18
two papers chosen by
Marco Novarese
Università del Piemonte Orientale

  1. Advertising strategy in the presence of reviews: An empirical analysis By Hollenbeck, Brett; Moorthy, Sridhar; Proserpio, Davide
  2. Impact Of Sales Management Control Strategy On Sales Perfomance In Life Insurance Sector By Syahputra, S

  1. By: Hollenbeck, Brett; Moorthy, Sridhar; Proserpio, Davide
    Abstract: We study the relationship between online reviews and advertising spending in the hotel industry. Combining a dataset of TripAdvisor reviews with other datasets describing these hotels’ advertising expenditures, we show, first, that online ratings have a causal demand-side effect on ad spending. Second, this effect is negative: hotels with higher ratings spend less on advertising than hotels with lower ratings. This suggests that hotels treat TripAdvisor ratings and advertising spending as substitutes, not complements. Third, the relationship is stronger for independent hotels than for chains, and stronger in less differentiated markets than in more differentiated markets. The former suggests that a strong brand name continues to provide some immunity to reviews and the latter that the advertising response is stronger when ratings are more likely to be pivotal. Finally, we show that the relationship between online ratings and advertising has strengthened over time, just as TripAdvisor has become more popular, implying that firms respond to online reviews if and only if consumers respond to them.
    Keywords: Online reviews, advertising, regression discontinuity
    JEL: L1 L15 L20 M31 M37
    Date: 2019–03–14
  2. By: Syahputra, S
    Abstract: The purpose of this study is to discuss the impact of sales performance in life insurance sector. Sales performance in life insurance industry has seen a major concern to practitioners due to severe competition and to design marketing strategy. Further to that, one way to enhance sales performance in life insurance is by focusing on good strategy and developing salesforce. Life insurance need to have a good understanding of their strategy and salesforce management so that appropriate great marketing strategies directed towards sales management control strategy. The objective of this study is to examine the causal impact of several antecedents of sales performance in the context of insurance in Java Island, Indonesia. Thus, it will review the marketing literature on the sales performance ie., sales volume, market share, profitability and customer satisfaction. Next, we present the research framework, methods, measures and findings and conclusion. Finally, the results were discussed in terms of its contribution to the upgrading of life insurance strategies and recommendations for future research.
    Keywords: sales volume, market share, profitability, life insurance
    JEL: L1 M3 M31
    Date: 2018

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