Turn-and-Earn in a Product Line: The Impact of Product Substitutability

2011 ◽  
Author(s):  
Dinah A. Vernik ◽  
Debu Purohit
2021 ◽  
Vol 5 (3) ◽  
pp. 43-58
Author(s):  
Zia ur Rehman ◽  
Asad Khan ◽  
Rafique Ahmed Khuhro ◽  
Abdul Ghafoor Khan

The objective of the study is to measure product diversification’s impact on insurance firm’s financial performance in Pakistan. Analysis are carried out to examine how ownership structure, capitalization, group membership, firm size, diversification across business lines, industry concentration affects firm’s financial performance. Data from 2009-2019 is collected to measure the impact of diversification (entropy) on the risk- adjusted returns. Findings of the study reveal that business line diversification has strong positive effect on firm performance (for both ROA and ROE) which means that diversified firms perform better than non-diversified firms. For managers these findings are useful as they propose the need for diversification, capitalization, increase in size and group affiliation to enhance firm profitability.


2019 ◽  
Vol 53 (11) ◽  
pp. 2293-2321 ◽  
Author(s):  
Guowei Zhu ◽  
George Chryssochoidis ◽  
Li Zhou

Purpose This paper aims to address how adding food ingredients to a packaged base food affects consumers’ calorie estimation of the new augmented product. Design/methodology/approach The four performed experiments and analyses of variance demonstrate an underlying psychological mechanism, explained below. Findings Results show that the healthiness of the added food ingredient (AFI) does not matter if the base food is healthy, and consumers’ calorie estimates of the augmented packaged food product are accurate. When, however, the food base is unhealthy, and the AFI is healthy, consumers underestimate the new product calories. This underestimation effect increases further when the healthy ingredients multiply. This underestimation effect endures when these ingredients are presented in a visual form, but it becomes smaller when these ingredients are presented in a verbal form. A justification mechanism is relevant. Research limitations/implications Further research should test across the broader range of the food product matrix. There is a great diversity of AFI presentations, and further research may deal with the impact of AFIs of these different forms on consumers’ calorie estimation and healthiness perceptions. Research may also test sensory-arousing mechanisms that can help understand how consumers perceive the calories of the augmented food. Practical implications The findings suggest that consumers should be cautious of the judgment bias caused by the presence of an AFI on food packages and raise their awareness regarding nutrition implications and dietary effects. From the perspective of food manufacturers, although adding healthy AFIs to unhealthy base foods may increase consumers’ purchase intention and bring higher profits, it may not be sustainable as a marketing strategy in the long term and has immediate ethical implications. Social implications Policymakers should introduce voluntary schemes to monitor and restrict the improper presentation of AFIs, aiming to rule out the abuse of healthy AFIs on unhealthy packaged food. Originality/value This work offers three major original and valuable contributions. It explains the effects of AFIs on calorie estimation and consumer healthiness perceptions in a context not studied before, namely, packaged food products. Next, it advances the literature on consumer judgment error and heuristics concerning product package attributes. As adding ingredients is integral to product line extension decisions, the results also clarify how marketing can safeguard firm social responsibility in combating obesity.


Processes ◽  
2021 ◽  
Vol 9 (6) ◽  
pp. 990
Author(s):  
Dan Cao ◽  
Jin Li ◽  
Gege Liu ◽  
Ran Mei

With the increase of public environmental awareness and the growth of e-commerce, sustainable development promotes the manufacturer to increasingly participate in green innovation and make full use of the online sales channel to enhance competitiveness. Despite decentralized encroachment being widely adopted in business reality, the current literature has commonly paid more attention to centralized encroachment. To complement related research, a dual-channel green supply chain composed of a manufacturer (its retail subsidiary) and a retailer is investigated. We focus on what encroachment strategy (centralization vs. decentralization) drives the green innovation and analyze the impact of consumer green awareness and product substitutability on the manufacturer’s encroachment strategy, green innovation efforts and supply chain performance. Under each encroachment strategy, we build a Stackelberg game model and derive the equilibrium outcome. Then, we theoretically analyze the effects of consumer green awareness and product substitutability on green innovation and each party’s profitability. Our comparative analysis shows what encroachment strategy drives green innovation and what encroachment strategy benefits both parties and social welfare. Numerical studies are also conducted to support the analytical results. Our key findings reveal that decentralization improves the green innovation and achieves a both-win situation for the manufacturer and the retailer. Besides that, decentralization can reduce the environmental damage and increase social welfare as well.


Author(s):  
Lavinia Brancusi

This chapter discusses possible negative effects on market competition resulting from registration and exercise of NTTMs. A first insight into EU judicial precedents dealing with trademarks reveals the risk of different practices violating competition rules. A following inquiry from a “law and economics” approach emphasizes certain competition concerns characteristic of NTTMs. The focal point concerns the issue of product substitutability, with a consideration as to whether competition law perspective may be of some use for trademark law, especially for functionality cases featuring NTTMs. After articulating the need of applying a functionality test based on product delineation and an assessment of substitutable alternatives, separate remarks discuss market definition in competition law underlining cases of narrowly defined markets because of branding strategies. The study advocates the use of methods and proofs modeled on those applied in competition law for examining the registrability and resolution of conflicts related to NTTMs.


1970 ◽  
Vol 22 (2) ◽  
pp. 119-134
Author(s):  
Gregory Black ◽  
Donna Peeples

This research investigates the effects of an organization's propensity forrelationalism and its product line market growth on the distribution channeloutcomes of actual relationalism and relationship endurance. Using a sampleof 160 industrial equipment distributors, propensity for relationalism is shownto have an influence on both actual relationalism and relationship endurance.Further, evidence is found that market growth enhances the impact propensitytoward relationalism has on relationship endurance.


2019 ◽  
Vol 7 (2) ◽  
pp. 34-40
Author(s):  
Pervez Akhtar ◽  
◽  
Fahad Muqaddas

This paper examines the impact of operational flexibility on firm performance. This research aims to determine the impact of two specific flexibility types on firm performance in the textile industry of Pakistan. Flexibility categories are defined as volume flexibility and material handling flexibility. Both categories of flexibility are significant for a textile sector as the material handling is one of the main issues on the production floor in textile mills, while volume flexibility is the core of competition regarding variety in the product line. The empirical data were collected through a questionnaire addressed to 360 production and operations managers in Pakistani textile companies. Out of which 250 questionnaires that answered all the questions were evaluated and analyzed. The linear regression method was used to identify the impact of volume and material handling flexibility on firm performance. Overall results showed that volume flexibility and material handling flexibility both have a positive impact on firm performance in Pakistan textile sector.


Sign in / Sign up

Export Citation Format

Share Document