The effects of customer equity drivers on loyalty across services industries and firms

Customer equity drivers (CEDs)—value equity, brand equity, and relationship equity—positively affect loyalty intentions, but this effect varies across industries and firms. We empirically examine potential industry and firm characteristics that explain why the CEDs–loyalty link varies across services industries and firms in the Netherlands. The results show that (1) some previously assumed industry and firm characteristics have moderating effects while others do not and (2) firm-level advertising expenditures constitute the most crucial moderator because they influence all three loyalty strategies (significant for value equity and brand equity; marginally significant for relationship equity), while three industry contexts (i.e., innovative markets, visibility to others, and complexity of purchase decisions) each influence two of the three loyalty strategies. Our results clearly show that specific industry and firm characteristics affect the effectiveness of specific loyalty strategies

Advertising persuasion in dual markets

Many firms operate in ‘dual’ markets by selling the same products and services to both individual and institutional customers. Can they also persuade both with the same advertising content? The authors investigate this issue by examining a unique database including information on institutional and individual mutual fund flows, advertising frequency, and (persuasive and informative) advertising content. They find that the effects of persuasive advertising content on institutional and individual fund flows are similar and sizeable in terms of elasticity. In addition, they find that only the individual market responds to informative advertising content. Hence, dual-market firms can use persuasive content to achieve advertising economies

The multiple roles of interpersonal communication in new product growth

10.1016/j.ijresmar.2012.04.003International Journal of Research in Marketing293292-305IJRM

The Relationship between Market Share and Information in a High-tech Industry

The role of information in high-technology markets is critical (Dutta, Narasimhan and Rajiv 1999; Farrell and Saloner 1986; Weiss and Heide 1993). In these markets, the volatility and volume of information present managers and researchers with the considerable challenge of monitoring such information and examining how potential customers may respond to it. This article examines the effects of the type and volume of information on the market share of different technological standards in the Local Area Networks (LAN) industry. We identify three different types of information: technological, availability and adoption. Our empirical application suggests that all three types of information have significant effects on the market share of a technological standard, but their direction and magnitude differ. More specifically, technology-related information is negatively related to market share as it demonstrates that the underlying technology is immature and still evolving. Both availability and adoption-related information have a positive effect on market share, but the former is larger than the latter. We conclude that high-tech firms should emphasize the dissemination of information, especially availability-related, as part of their promotional strategy for a new technology. Otherwise, they may risk missing an opportunity to achieve a higher share and establish their market presence

Modeling heterogeneous effective advertising stock using single-source data

Advertising threshold effects, Advertising stock, Duration time, Effective reach, Nonlinear utility function, MCMC, Heterogeneity, Single-source data, M37, M31,