Dynamic Pricing for New Products Using a Utility-Based Generalization of the Bass Diffusion Model

The Bass Model (BM) has an excellent track record in the realm of new product sales forecasting. However, its use for optimal dynamic pricing or advertising is relatively limited because the Generalized Bass Model (GBM), which extends the BM to handle marketing variables, uses only percentage changes in marketing variables, rather than their actual values. This restricts the GBM’s prescriptive use, for example, to derive the optimal price path for a new product, conditional on an assumed launch price, but not the launch price itself. In this paper, we employ a utility-based extension of the BM, which can yield normative prescriptions regarding both the introductory price and the price path after launch, for the new product. We offer two versions of this utility-based diffusion model, namely, the Bass-Gumbel Diffusion Model (BGDM) and the Bass-Logit Diffusion Model (BLDM), the latter of which has been previously used. We show that both the BGDM and BLDM handily outperform the GBM in forecasting new product sales using empirical data from four product categories. We discuss how to estimate the BGDM and BLDM in the absence of past sales data. We compare the optimal pricing policy of the BLDM with the GBM and derive optimal pricing policies that are implied by the BLDM under various ranges of model parameters. We illustrate a dynamic pricing approach that allows managers to derive optimal marketing policies in a computationally convenient manner and extend this approach to a competitive, multiproduct case. This paper was accepted by Gui Liberali for the Management Science Special Issue on Data-Driven Prescriptive Analytics.

The effect of brand awareness, brand image, satisfaction, brand loyalty and WOM on purchase intention: An empirical research on social media

The purpose of this study is to propose a model to understand the impact of brand information (awareness and image) on marketing variables (satisfaction, brand loyalty, WOM and purchase intention) for individuals who like or follow brands in social media. In this study, 522 questionnaires were collected, and multi-group structural equation modelling was used. According to the findings, brand awareness had a significant direct effect on brand image and a significant indirect effect on brand loyalty and purchase intention through brand image. Also, the immediate effects of brand image on satisfaction, brand loyalty, and purchase intention were significant, and the indirect effect of brand image on WOM and purchase intent through brand loyalty is substantial. Thus, brand awareness and brand image have become prominent variables in terms of brand loyalty, WOM, and consumers' purchase intentions in social media. It has been determined that brand loyalty is crucial for brands in social media. Although brand loyalty has a low explained variance rate, its impact on WOM and purchase intention is robust. Social media has also been shown to affect WOM and purchase intention substantially. Also, using the theory of gender socialization examines whether the whole model changes according to gender. Finally, managerial and theoretical implications, limitations and recommendations are presented.

Profit bridges that disambiguate impacts of currency fluctuations from other marketing variables

We extend the normalized approach to constructing profit bridges proffered in a recent paper to examine the impact of currency exchange rate fluctuations within a multinational corporation. In doing so, we describe a profit bridge that would measure corporate performance distinct from that which would measure the performance of business units, including metrics for the impact of volume, price, variable cost, offering mix, and exchange rate changes.

Analysis of the Ecuadorian government's proposed methodology of brand valuation: application in agricultural sector brands

PurposeThe purpose of this work is to analyze a brand valuation methodology proposed by the current Ecuadorian National Service for Intellectual Rights, assessing the relevance of the proposed marketing variables: awareness, associations and evaluation of purchase determinants, and their relationship within the proposed methodology.Design/methodology/approachThe authors used data from surveys of 482 consumers of two agricultural brands in Ecuador (supplies, equipment and services). The authors applied linear multiple regressions estimated by generalized least squares with heteroskedasticity-robust standard errors. “Intention to repurchase” and “recommend” the brands were selected as dependent variables due to their relationship with brand value.FindingsBrand awareness and associations positively influence the two dependent variables. However, the interaction between brand awareness and associations is negative, suggesting that, for the upper level of awareness, associations have no effect over intentions. This result holds for both brands. Brand evaluation of purchase determinants was a significant predictor of intentions only for the brand which belongs to a product category in which the purchase decision process is more extensive and with more effort.Research limitations/implicationsThis study is focused only on agricultural brands, which limits the generalization of the findings.Originality/valueThe agricultural sector is very important in Ecuador due to its contribution to GDP and employment, and the country's position as the fifth exporter of bananas worldwide. Understanding consumer behavior is important for brands and firms' managers in order to preserve or increase brand value, for which a reliable valuation model is useful.

Role of Electronic Word of Mouth and Social Media Marketing on Brand Image and Purchase Intention toward E-Commerce Cosmetic Products

This research aimed to examine the effect of EWOM and Social Media Marketing variables on Purchase Intention with an intervening variable of brand image. This research sampling was carried out using purposive sampling technique from 250 respondents which had the criteria of Indonesian citizens who were interested in buying and using cosmetics through e-commerce and already had income. This research used an analytical tool which is a simultaneous equation model called structural equation modeling. The results of this research indicated that EWOM had a positive and significant effect on brand image and buying intention. Social Media Marketing had also a positive significant effect on brand image,however, it was an insignificant effect on buying intention. Finally, Brand Image showed a positive significant effect on Purchase Intention.

The Analysis of Cognitive Moral in Bridging the Gap Between Internal Marketing and B2B Salespeople Performance

This study seeks to confirm and analyse the effect of cross-level cognitive morals on internal marketing and business sales force performance (i.e. behavioural performance and outcome performance). The concepts of relationship marketing and marketing theory of ethics underpin the relationship among variables. This study adopted a quantitative approach through a survey of 460 respondents from 13 company services and manufacturers. Internal marketing variables were measured at the unit level and tested using interrater agreement and the intraclass correlation. In contrast, the cognitive moral variables, behavioural performance, and sales force performance results were measured individually. Hierarchical linear modelling (HLM) was used to test the effect of the cross-level research variables. The results showed that internal marketing empirically supports cognitive morals. However, the effect of internal marketing does not support the two-dimensional performances of the sales force. Theoretically, the contributions, internal marketing and cognitive morals have shown the relationship between marketing and marketing theory of ethics. Received: 28 April 2021 / Accepted: 15 July 2021 / Published: 5 September 2021

The Experiential Marketing Forming Factors of Customers of the Traditional Concept Restaurants in Sleman Regency Special Region of Yogyakarta, Indonesia

The research objective was to identify and explain the forming factors of Experiental Marketing. This study used Experiential Marketing variables which were divided into Sense, Feel, Think, Act, and Relate. The research respondents were the customers of traditional concept restaurants in Sleman Regency, Special Region of Yogyakarta. The sampling technique used purposive random sampling method with data collection method by using a questionnaire that was distributed to 261 respondents. The research data were processed by using the Factor Analysis method. Then, exploratory factor analysis (EFA) was used because the formed factors were not determined in advance. Based on the factor analysis results, it could be concluded that there are four factors that influence and shape experiential marketing, namely the factors of Empathy, Atmosphere, Responsiveness, and Product Quality.

Investment Decisions with Endogeneity: A Dirichlet Tree Analysis

Ignoring endogeneity when assessing investors’ decisions carries the risk of biased estimates for the influence of exogeneous marketing variables. This study shows how to overcome this challenge by using Pólya trees in the quantification of impacts on investors’ decisions. A total of 2255 investors recruited for this study received and opened a digital marketing newsletter about investing daily. Given the nature of investors’ decisions characterized by heterogeneity and endogeneity, the response model is assessed with the Dirichlet process mixture and estimated with the Markov chain Monte Carlo method. Digital marketing substantially exceeds the impact of investor experience, but both have a significant positive impact on investors’ trading volume. Findings obtained with the Dirichlet process mixture as a flexible model indicate that digital marketing even with latent endogenous factors makes an underlying contribution to the investors’ actions in the stock market.

Destination images: antecedents of city marketing, tourism event, and social media marketing concept

Building tourism is long-term work. Many elements are involved, and their effectiveness cannot be calculated partially. At present, competition between cities/districts continues to increase, especially in city/district marketing that is tourist-friendly, iconic tourism events, and massive social media marketing. The strong destination image will impact on increasing the number of visits. This research aims to analyze the impact of city/district marketing power, tourist events, and social media on the image of tourist destinations in Maluku. The methodology in this research is based on quantitative analysis using Structural Equation Modelling (SEM) to discuss theory and see the relationship between city/district marketing variables, tourism events, social marketing media, and destination image. This study indicates that city/district marketing has a greater increase in strengthening the image of destinations compared to tourism events and social media marketing. This shows an effective strategy from the government in advancing tourism faster and more robust in increasing the image of a destination.