An Empirical Examination Of the Rule Of Three : Strategy Implications For Top Management, Marketers, and Investors

This study represents the first empirical examination of the Rule of Three, a theory at odds with several popular notions regarding industry structure and business performance, including the positive linear market share-performance relationship. In general, the findings from more than 160 industries support the Rule of Three and provide five main insights: First, there appears to be a prevalent competitive structure for mature industries in which three generalist firms control the market. Second, industries that conform to this structure tend to perform better than industries with a fewer or greater number of generalists. Third, both specialists and generalists outperform firms that are stuck in the middle. Fourth, the performance benefits of market leadership appear to diminish with excessive market share. Fifth, the Rule of Three industry structure and its influence over firm profitability do not appear to be priced appropriately by financial markets. The authors discuss the implications for multiple stakeholders

Do Marketing Media Have Life Cycles? The Case Of Product Placement In Movies

This article examines the economic worth of product placement in movies over a time span of 40 years (1968-2007). The authors find an inverted U-shaped relationship between the year of the movie release and the returns associated with product placements. In addition, a similar inverted U-shaped relationship characterizes the economic worth of tie-in campaigns associated with product placements. These findings are consistent with the habituation tedium theory used to explain the inverted U-shaped pattern in response to novel advertisements and suggest that the same mechanism could be influencing the response to an entire marketing medium. Overall, the results reinforce the notion that marketers find it increasingly difficult to get their message across using traditional media and underscore the need for the marketing industry to reinvent itself when new tactics lose their luster. The authors conclude with a discussion of additional empirical regularities

An Empirical Examination of the “Rule of Three”: Strategy Implications for Top Management, Marketers, and Investors

This study represents the first empirical examination of the “Rule of Three,” a theory at odds with several popular notions regarding industry structure and business performance, including the positive linear market share–performance relationship. In general, the findings from more than 160 industries support the Rule of Three and provide five main insights: First, there appears to be a prevalent competitive structure for mature industries in which three “generalist” firms control the market. Second, industries that conform to this structure tend to perform better than industries with a fewer or greater number of generalists. Third, both “specialists” and generalists outperform firms that are “stuck in the middle.” Fourth, the performance benefits of market leadership appear to diminish with excessive market share. Fifth, the Rule of Three industry structure and its influence over firm profitability do not appear to be priced appropriately by financial markets. The authors discuss the implications for multiple stakeholders

The Role of Pricing Strategy in Market Defense

The price variable is among the most powerful instruments in the arsenal of the executives to achieve entry deterrence objectives. There are two main pricing strategies that firms may use to defend against a competitive market entry. The first of these options, limit pricing (or entry deterring price), may be utilized prior to competitive entry. The second option, aggressive (predatory) pricing, may be executed post-entry. The effectiveness of both of these options is still controversial. For example, the Chicago School proponents argue that these strategies are anecdotal in nature. On the other hand, the rationality of such conduct has been reliably simulated by Post-Chicagoans in game theoretic settings. The potential contributions of the marketing discipline have been recognized and called upon to help resolve the conflict. With this dissertation, I attempt to shed light on the role that price plays in preemptive and post-entry market defense of firms. As such, the questions tackled include but are not limited to: how effective is price as an entry-deterrence tool; in conjunction with firm and market specific barriers to entry; and as a post-entry retaliation mechanism? What are the facilitating conditions for limit, aggressive (predatory), competitive and supra-competitive pricing? What are the (long-term) consequences of these strategies? Following a multi-disciplinary literature review, I present a dynamic process model and test my hypotheses in a key network industry the airline industry. Building upon the advantages of multiple methods a la triangulation, I find that both limit pricing and predatory pricing can serve as effective strategies for the incumbents market defense. Predatory use of pricing in network industries may diminish consumer welfare. Results also suggest that firm specific barriers have a more significant role in market defense than market specific barriers. Insights and frameworks based on the marketing philosophy are also presented with the hope of advancing the ongoing debate between the Chicago and Post-Chicago Schools of thought.Ph.D.Committee Chair: Naresh K. Malhotra; Committee Member: Fred C. Allvine; Committee Member: Jagdish N. Sheth; Committee Member: Pat H. Dickson; Committee Member: Richard D. Teac

Peter Drucker on marketing: an exploration of five tenets

The authors review Peter Drucker’s contributions to marketing theory and practice. A bibliometric analysis of Drucker’s academic influence in marketing is presented. The five main tenets that are derived from the bibliometric study are expanded upon as follows: (1) The Marketing Concept: Creating Value for Customers; (2) Broadened Role of Marketing in Society: Corporate Social Responsibility, Consumerism, Social Marketing, and Lessons from Non-Profit Organizations; (3) Contributions to Marketing Strategy: The Obvious and Not So Obvious; (4) Marketing-Innovation Interface: New Product Development; (5) Future of Globalization: Rise of Non-National Enterprises

Mind the gap : the mediating role of mindful marketing between market and quality orientations, their interaction, and consequences

Purpose – The purpose of this paper is to integrate the distinctive streams of research on market orientation, quality orientation, and organizational mindfulness, and examine the mediating role of mindful marketing between market orientation and quality orientation, and their linkages to two emerging key outcomes: mindful consumption and value co-creation. Design/methodology/approach – Based on extant orientation and organizational mindfulness research, a conceptual framework is presented to characterize the nomological network among market and quality orientations, mindful marketing, mindful consumption and value co-creation. In total, 14 propositions are extracted. Findings – The paper proposes that the synergistic interaction of market and quality orientation has a direct influence on mindful marketing, which in turn influences two outcomes: mindful consumption and value co-creation. The dual moderating role of market structure is also incorporated among the findings. Practical implications – The proposed framework demonstrates how managers can emphasize market and/or quality orientation in order to develop an optimal mindful marketing strategy that would take the stakeholders' intrinsic benefits into account. It is suggested that this approach will lead to mindful consumption and increase the opportunities for value co-creation among the stakeholders, which will ultimately lead to better organizational performance. Originality/value – The paper represents a first attempt to integrate two strategic orientations, and the concept of mindfulness. It examines the intimate relationship between market and quality orientations and how they jointly lead to the development of mindful marketing. It also explores the role of two emerging constructs in marketing: mindful consumption and value co-creation

Deregulation and Competition : Lessons from the Airline Industry

This thought-provoking book chronicles the evolution of the airline industry and explains what lies ahead for airlines across the globe. Taking the US airline industry as an in-depth case study, the authors present compelling evidence on how the paradigm shift that is taking place in the airline industry is linked to the big-bang approach to deregulation.https://engagedscholarship.csuohio.edu/busmarkt_bks/1000/thumbnail.jp