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Discriminating between behaviour using market data from panels
Hsiu-Yuan Tsao, Leyland Pitt and Colin Campbell, International Journal of Market Research, Digital First, August 2013
Considerable research exists on stochastic models of switching behaviour that uses sequences of individual-level purchase data.
Considerable research exists on stochastic models of switching behaviour that uses sequences of individual-level purchase data. While at the individual level, sample size and sequence length are limiting factors, at the aggregate level, heterogeneity with respect to purchase sequences may assist in interpreting results. The authors propose an approach to discriminate between the switching behaviour of variety seeking, indifference and reinforcement. Only the proportion of 100% loyal customers, market share data and an estimation of the promotional effect - information all available from consumer panel data - are necessary to fit the model.
How Strong is the Pull of the Past? Measuring Personal Nostalgia Evoked by Advertising
Altaf Merchant, Kathryn LaTour, John B. Ford, and Michael S. LaTour, Journal of Advertising Research, Vol. 53, No. 2, 2013, pp. 150-165
Marketers frequently evoke personal nostalgia in their advertising. To date, scales have been developed to measure the propensity to get nostalgic but not the actual dimensions of personal nostalgia.
Marketers frequently evoke personal nostalgia in their advertising. To date, scales have been developed to measure the propensity to get nostalgic but not the actual dimensions of personal nostalgia. Results from four studies show that advertising-evoked personal nostalgia comprises four correlated but distinct dimensions: past imagery, positive emotions, negative emotions, and physiological reactions. This multidimensional scale showed a high level of validity and reliability. Moreover, due to careful choice of sampling frames, the study demonstrates a high level of external generalizability. Evaluating nostalgia-based advertising using the study’s multidimensional scale may provide marketers with strategic insights for developing and fine-tuning advertising aimed at inducing nostalgia among consumers.
Big Data, Better Decisions: How does business intelligence drive change in the Chinese automotive market?
Tiger Lee Weihan, ESOMAR, Automotive Research Forum, Wolfsburg, May 2013
This paper shows the process of generating an automotive customer repurchase model of customer relationship management in China, based on data warehousing after data integration.
This paper shows the process of generating an automotive customer repurchase model of customer relationship management in China, based on data warehousing after data integration. China has become the world's largest automotive market, but only in the new sales market. For most Original Equipment Manufacturers (OEMs) and dealers, new vehicle sales lead to a better market share and greater revenue, while after-sales deliver the main source of profit: after-sales profit margins are five to ten times higher than sales profit margins. Customer loyalty is key to avoiding customer churn and the model proposed in the paper offers a new solution for marketers to attract more customer loyalty in China's rapidly growing after-sales market.
The myth of the brand in Asia
James Parsons, ESOMAR, Asia Pacific, Ho Chi Minh City, April 2013
This paper argues for a careful consideration of how the notion of brand works in Asia and what is distinctive about these Asian contexts.
This paper argues for a careful consideration of how the notion of brand works in Asia and what is distinctive about these Asian contexts. It discusses what brands are and what their purpose is and questions several received wisdoms that have been inherited from a Western perspective, where even the word "brand" conveys a different meaning to those used in Asia. A brand's "personality" and abstract values are of less relevance and interest than its functional benefits and concrete impressions in Asia, while the context in which it is seen and experienced has greater importance than in the West. In China and Japan, TV advertising spots are much shorter than in the West, so reach and awareness is more highly valued and without the time to tell complex brand stories, innovation has come to be the focus of investment. Western marketers are warned that to focus on brand love in Asia is to risk being overtaken by organisations who concentrate on penetration. Also, energy put into fixing the personality and philosophy of the brand may be better spent elsewhere when Asian consumers are innately less susceptible to abstract values and Asian media vehicles are ill-equipped to develop them.
The Word of Mouth Dynamic: How Positive (and Negative) WOM Drives Purchase Probability: An Analysis of Interpersonal and Non-Interpersonal Factors
Rodolfo Vázquez-Casielles, Leticia Suárez-Álvarez and Ana-Belén del Río-Lanza, Journal of Advertising Research, Vol. 53, No. 1, 2013, pp. 43-60
This study has two main objectives: (a) to examine the relative impacts of positive and negative word of mouth (PWOM and NWOM) on the shift in the receiver’s brand purchase probability; and (b) to analyze the effect, direct or indirect, of a number of interpersonal and non-interpersonal factors on the relation between PWOM or NWOM and the shift in the receiver’s purchase probability.
This study has two main objectives: (a) to examine the relative impacts of positive and negative word of mouth (PWOM and NWOM) on the shift in the receiver’s brand purchase probability; and (b) to analyze the effect, direct or indirect, of a number of interpersonal and non-interpersonal factors on the relation between PWOM or NWOM and the shift in the receiver’s purchase probability. The data were collected from a sample of 1,035 consumers in four product/service categories. The results suggest that firms should develop a proactive management of WOM communications that takes into account aspects of both the sender and receiver.
It's a Dirichlet World: Modeling Individuals' Loyalties Reveals How Brands Compete, Grow, and Decline
Byron Sharp, Malcolm Wright, John Dawes, Carl Driesener, Lars Meyer-Waarden, Lara Stocci and Philip Stern, Journal of Advertising Research, Vol. 52, No. 2, 2012, pp. 203-213
The Dirichlet is one of the most important theoretical achievements of marketing science. It provides insights into the distribution of consumer loyalties and is used widely in industry for benchmarking and interpreting brand performance.
The Dirichlet is one of the most important theoretical achievements of marketing science. It provides insights into the distribution of consumer loyalties and is used widely in industry for benchmarking and interpreting brand performance. The Dirichlet’s implications run counter to some well-entrenched marketing pedagogy and so, unsurprisingly, it has attracted criticism arguing that it cannot adequately reflect the dynamic nature of consumer choice. The authors address these criticisms by discussing how consumer loyalties are manifested and examining whether changes in consumer loyalties do, in fact, disrupt Dirichlet buying patterns. To the best of our discipline’s knowledge, based on extensive empirical and theoretical work, brands compete in a Dirichlet world.
Factors influencing consumer behaviour towards store brand: a meta-analysis
Xiaojun Fan, Yi Qian and Pei Huang, International Journal of Market Research, Vol. 54, No. 3, 2012, pp. 407-430
In order to improve the effectiveness of store brand management, this study presents a meta-analysis that aggregates empirical findings from the literature on consumer behaviour towards store brands.
In order to improve the effectiveness of store brand management, this study presents a meta-analysis that aggregates empirical findings from the literature on consumer behaviour towards store brands. First, the study provides a quantitative summary of bivariate findings regarding the way consumer-related factors influence store brand success. Second, the authors analyse the moderating effect of market context, product category and data type on store brand success. The resulting analysis suggest that price consciousness, quality consciousness, familiarity with store brands and perceived quality of store brands are the four most important factors that significantly influence consumer behaviour towards store brands. Market context and product category also exert significant moderating effects on the influence of some factors on consumer behaviour towards store brands. On the basis of these findings, this study concludes with a discussion of practical implications and possible directions for future research.
Measuring brand choice in the older customer segment in Japan
Jaywant Singh, Francesca Dall'Olmo Riley, Chris Hand and Mari Maeda, International Journal of Market Research, Vol. 54, No. 3, 2012, pp. 347-368
As populations around the world age, brand choice behaviour by older customers becomes an increasingly important issue for marketers.
As populations around the world age, brand choice behaviour by older customers becomes an increasingly important issue for marketers. This is especially the case in Japan, which has the largest older customer segment as a proportion of the population of any country. Our study measures brand choice behaviour of the older customer segment in Japan in fast-moving consumer goods categories. We employ an 11-point purchase probability scale, the Juster, to calculate brand performance measures such as penetrations, buying frequency and sole buying for three age-based customer segments. The Juster output is used as input into a mathematical model, the Dirichlet, for benchmarking the brand performance measures. The findings here reveal new insights into the brand purchase behaviour of older customers. There are more similarities than differences between the brand purchase of younger and older customers in most categories analysed here. The results have practical implications for understanding and creating appropriate marketing strategies for the older customer segment. Our study also demonstrates a novel method for analysis of brand choice data collected via a survey instrument, as compared to the traditional consumer panel data. The research framework in our study is recommended for further empirical research in other regions where demographic changes are presenting challenges to marketers, and where panel data are often not easy to obtain.
Why customers are loyal: Pitfalls and paradoxes of customer satisfaction studies
Dobromir Cias, Katarzyna Polok and Tomasz Opalski, ESOMAR, CEE Research Forum, Krakow, March 2012
This paper considers methodological assumptions concerning customer satisfaction studies. Methodological discussion is based on real-life examples of customer satisfaction projects conducted at ING Bank (leading example) and in other market sectors, including telecom, the auto industry, and TV/Sat providers.
This paper considers methodological assumptions concerning customer satisfaction studies. Methodological discussion is based on real-life examples of customer satisfaction projects conducted at ING Bank (leading example) and in other market sectors, including telecom, the auto industry, and TV/Sat providers. Conclusions drawn from the research includes that when talking about their satisfaction with a service provider, customers do not usually hold memories but they tend to hold a grudge; an increase in loyalty and satisfaction results from a decrease in loyalty; and building satisfaction is not the same as building loyalty.
The Globalization of Social Media: Consumer Relationships with Brands Evolve in the Digital Space
Graeme Hutton and Maggie Fosdick, Journal of Advertising Research, Vol. 51, No. 4, 2011, pp. 564-570
Editor’s Note: The findings that follow represent a compilation from the first five stages—or “Waves”—of a multi-stage Universal McCann (UM) global social-media study.
Editor’s Note: The findings that follow represent a compilation from the first five stages—or “Waves”—of a multi-stage Universal McCann (UM) global social-media study. As the agency explains: Established in 2006, Wave’s geographical coverage has mushroomed from just 15 countries in Wave 1 with a sample of 7,500 to 54 countries in Wave 5 polling more than 37,600 consumers in 2010. At the time of writing, Wave 6 is currently in field in 60 markets. Each of Wave’s annual studies, from Wave 1 through to Wave 5, has seen a major lift in social media adoption. As the incidence has increased, and social media literacy has improved, its usage characteristics have also evolved. Often these changes have manifested themselves in ways we had not necessarily anticipated. UM initiated Wave in 2006 because it realized there was a burgeoning array of social media that could evolve into a potent force in the consumer mediascape. While the observation might seem all too evident, when the initial study was organized in 2006, Facebook was predominantly a student Web site and Twitter was preparing to launch. UM designed Wave to focus on individuals between the ages of 16 and 54 who are active Internet users. The UM Wave team defines active Internet users as those individuals who use the Internet every day or every other day. The reason for the focus on active Internet users is to interrogate the motivations and behaviors of those consumers who are most likely to drive change in the Internet. In addition, active users are more likely to be in the vanguard of social media and Internet adoption. Wave 6 of the ongoing study will probe the rapidly expanding role of social commerce and attempt to determine how social media is having an impact on the consumer purchasing process.
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