Prior international segmentation studies have been static in that they have identified segments that remain stable over time. This paper shows that country segments in new product growth are intrinsically dynamic. We propose a semiparametric hidden Markov model to dynamically segment countries based on the observed penetration pattern of new product categories. This methodology allows countries to switch between segments over the life cycle of the new product, with time-varying transition probabilities. Our approach is based on penalized splines and can thus be flexibly applied to any nonstationary phenomenon, beyond the new product growth context. For the penetration of six new product categories in 79 countries, we recover the dynamic membership of each country to segments over the life cycle. Our findings reveal substantial dynamics in international market segmentation, especially at the beginning of the product life. Finally, we exploit the dynamic segments to predict the national penetration patterns of a new product before its launch and show that our forecasts outperform forecasts derived from alternate parametric and/or static methods. Our results should encourage multinational corporations to adopt dynamic segmentation methods rather than static methods.
{"title":"Dynamics in International Market Segmentation of New Product Growth","authors":"A. Lemmens, C. Croux, Stefan Stremersch","doi":"10.2139/ssrn.1911145","DOIUrl":"https://doi.org/10.2139/ssrn.1911145","url":null,"abstract":"Prior international segmentation studies have been static in that they have identified segments that remain stable over time. This paper shows that country segments in new product growth are intrinsically dynamic. We propose a semiparametric hidden Markov model to dynamically segment countries based on the observed penetration pattern of new product categories. This methodology allows countries to switch between segments over the life cycle of the new product, with time-varying transition probabilities. Our approach is based on penalized splines and can thus be flexibly applied to any nonstationary phenomenon, beyond the new product growth context. For the penetration of six new product categories in 79 countries, we recover the dynamic membership of each country to segments over the life cycle. Our findings reveal substantial dynamics in international market segmentation, especially at the beginning of the product life. Finally, we exploit the dynamic segments to predict the national penetration patterns of a new product before its launch and show that our forecasts outperform forecasts derived from alternate parametric and/or static methods. Our results should encourage multinational corporations to adopt dynamic segmentation methods rather than static methods.","PeriodicalId":344620,"journal":{"name":"Entrepreneurship & Marketing eJournal","volume":"92 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121614991","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2011-06-09DOI: 10.1108/10610421111108030
Patrali Chatterjee
Purpose: This research examines differences in perceived shipping charge inflation associated with online promotions presented as reducing base product price, reducing shipping surcharge, or reducing all-inclusive price and its impact on deal values for shipping charge skeptics and non-skeptics.Design/methodology/approach: Drawing from research on multi-component pricing and mental accounting, a laboratory experiment investigates if (a) shipping charge skeptics differ in their perceptions of shipping charge inflation for different presentations of online promotions from non-skeptics, and if (b) they differ in perceived deal value of economically equivalent promotions presented as reduced product price, reduced shipping charge promotion, or reduced all-inclusive price for high and low priced items with small or large shipping fees at retail websites.Findings: Analyzes show that shipping charge skeptics differ from non-skeptics in their perceptions of shipping charge inflation and deal values for different online promotions only when surcharge is large relative to base price. Reduced price promotions are most attractive for high-priced items with low surcharge but least attractive for large surcharge sizes. For large surcharge sizes, shipping charge skeptics prefer reduced all-inclusive price promotions to reduced shipping promotions, while non-skeptics prefer reduced shipping promotions to reduced all-inclusive price promotions.Research limitations/implications: Results suggest that effectiveness of various promotion frames at online stores differs based on base price, surcharge size, and consumer skepticism of shipping charge. Robustness of the results obtained at different levels of discount sizes need investigation.Practical implications: Online retailers that have to charge high shipping fees can use promotions to shift the referent price component used by consumers to calculate savings and mitigate perceptions of shipping or base price inflation. For equivalent dollar savings, retailers can use reduced shipping charge promotions to communicate higher deal values to shipping charge non-skeptic consumers than reduced base price or reduced all-inclusive promotions.Originality/value: This research examines how consumer perceptions of deal value differ, even though objective savings and financial outlay is the same, when promotions are presented as reducing product price versus surcharge.
{"title":"Framing Online Promotions: Shipping Price Inflation and Deal Value Perceptions","authors":"Patrali Chatterjee","doi":"10.1108/10610421111108030","DOIUrl":"https://doi.org/10.1108/10610421111108030","url":null,"abstract":"Purpose: This research examines differences in perceived shipping charge inflation associated with online promotions presented as reducing base product price, reducing shipping surcharge, or reducing all-inclusive price and its impact on deal values for shipping charge skeptics and non-skeptics.Design/methodology/approach: Drawing from research on multi-component pricing and mental accounting, a laboratory experiment investigates if (a) shipping charge skeptics differ in their perceptions of shipping charge inflation for different presentations of online promotions from non-skeptics, and if (b) they differ in perceived deal value of economically equivalent promotions presented as reduced product price, reduced shipping charge promotion, or reduced all-inclusive price for high and low priced items with small or large shipping fees at retail websites.Findings: Analyzes show that shipping charge skeptics differ from non-skeptics in their perceptions of shipping charge inflation and deal values for different online promotions only when surcharge is large relative to base price. Reduced price promotions are most attractive for high-priced items with low surcharge but least attractive for large surcharge sizes. For large surcharge sizes, shipping charge skeptics prefer reduced all-inclusive price promotions to reduced shipping promotions, while non-skeptics prefer reduced shipping promotions to reduced all-inclusive price promotions.Research limitations/implications: Results suggest that effectiveness of various promotion frames at online stores differs based on base price, surcharge size, and consumer skepticism of shipping charge. Robustness of the results obtained at different levels of discount sizes need investigation.Practical implications: Online retailers that have to charge high shipping fees can use promotions to shift the referent price component used by consumers to calculate savings and mitigate perceptions of shipping or base price inflation. For equivalent dollar savings, retailers can use reduced shipping charge promotions to communicate higher deal values to shipping charge non-skeptic consumers than reduced base price or reduced all-inclusive promotions.Originality/value: This research examines how consumer perceptions of deal value differ, even though objective savings and financial outlay is the same, when promotions are presented as reducing product price versus surcharge.","PeriodicalId":344620,"journal":{"name":"Entrepreneurship & Marketing eJournal","volume":"122 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-06-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126050611","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Brand image is the current view of the customers about a brand. It can be defined as a unique bundle of associations within the minds of target customers. It signifies what the brand presently stands for. It is a set of beliefs held about a specific brand. In short, it is nothing but the consumers’ perception about the product. It is the manner in which a specific brand is positioned in the market. Massy and Frank (1965) investigated the short term effects of temporary price discounts and found that both brand-loyal and non-loyal buyers responded to a discount promotion. Present research studied the effect of the discounting on the brand image by taking the garments brands of north India as sample. We did a survey of 100 samples from the different cities of the north Indian states Punjab, Haryana and Himachal Pradesh. The tools we used for the analysis purpose are Descriptive statistics, Correlation, Regression, Anova and Chi square test.
{"title":"Effect of Discounting on the Brand Image","authors":"Sanjeet Singh, Sangeet Kaur Bangar","doi":"10.2139/ssrn.1839468","DOIUrl":"https://doi.org/10.2139/ssrn.1839468","url":null,"abstract":"Brand image is the current view of the customers about a brand. It can be defined as a unique bundle of associations within the minds of target customers. It signifies what the brand presently stands for. It is a set of beliefs held about a specific brand. In short, it is nothing but the consumers’ perception about the product. It is the manner in which a specific brand is positioned in the market. Massy and Frank (1965) investigated the short term effects of temporary price discounts and found that both brand-loyal and non-loyal buyers responded to a discount promotion. Present research studied the effect of the discounting on the brand image by taking the garments brands of north India as sample. We did a survey of 100 samples from the different cities of the north Indian states Punjab, Haryana and Himachal Pradesh. The tools we used for the analysis purpose are Descriptive statistics, Correlation, Regression, Anova and Chi square test.","PeriodicalId":344620,"journal":{"name":"Entrepreneurship & Marketing eJournal","volume":"15 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-05-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114229265","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
A firm's export status may improve its capacity of introducing product innovations. We explore this idea using very rich firm-level data on Italian A firm's export status may improve its capacity of introducing product innovations. We explore this idea using very rich firm-level data on Italian Manufacturing, and sector-province specific measures of firms' distance from export markets and of their export market potential as instruments for differences in export activities. We find that exporting significantly increases the likelihood of introducing product innovations and that this effect is not fully captured by the channels commonly stressed by the theoretical literature, such as larger market (and accordingly firm) size or higher investments in R&D. We argue that heterogeneity in foreign customers' tastes and needs may explain our findings.
{"title":"Are Exporters More Likely to Introduce Product Innovations?","authors":"M. Bratti, Giulia Felice","doi":"10.2139/ssrn.2023589","DOIUrl":"https://doi.org/10.2139/ssrn.2023589","url":null,"abstract":"A firm's export status may improve its capacity of introducing product innovations. We explore this idea using very rich firm-level data on Italian A firm's export status may improve its capacity of introducing product innovations. We explore this idea using very rich firm-level data on Italian Manufacturing, and sector-province specific measures of firms' distance from export markets and of their export market potential as instruments for differences in export activities. We find that exporting significantly increases the likelihood of introducing product innovations and that this effect is not fully captured by the channels commonly stressed by the theoretical literature, such as larger market (and accordingly firm) size or higher investments in R&D. We argue that heterogeneity in foreign customers' tastes and needs may explain our findings.","PeriodicalId":344620,"journal":{"name":"Entrepreneurship & Marketing eJournal","volume":"102 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122548765","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We propose a model that associates basic research with product innovation through the absorptive capacity it generates, moderated also by the level of industry appropriability. To test these relations, we used a sample of 8,861 firms taken from a panel (PITEC). Our data suggest that basic research in firms increases their knowledge stock and flows, improving their capacity to identify, assimilate and exploit external knowledge and, therefore, their innovative product performance. By using lags we were able to find that this result can last for up to three years. In addition, we see that weak appropriability regimes can have a positive effect by increasing the influence of basic research on absorptive capacity. This evidence not only questions the disdain frequently shown by managers towards basic research, but also calls for open reflection on both the net effect of appropriability on innovative performance and the advisability of allocating public resources to stages and areas of the innovation process in which there are seldom 'market failures'.
{"title":"Is Basic Research in Firms Useful? Evidence from Panel Data for Spain","authors":"A. Martínez-Senra, M. Quintás, Xosé H. Vázquez","doi":"10.2139/ssrn.1786478","DOIUrl":"https://doi.org/10.2139/ssrn.1786478","url":null,"abstract":"We propose a model that associates basic research with product innovation through the absorptive capacity it generates, moderated also by the level of industry appropriability. To test these relations, we used a sample of 8,861 firms taken from a panel (PITEC). Our data suggest that basic research in firms increases their knowledge stock and flows, improving their capacity to identify, assimilate and exploit external knowledge and, therefore, their innovative product performance. By using lags we were able to find that this result can last for up to three years. In addition, we see that weak appropriability regimes can have a positive effect by increasing the influence of basic research on absorptive capacity. This evidence not only questions the disdain frequently shown by managers towards basic research, but also calls for open reflection on both the net effect of appropriability on innovative performance and the advisability of allocating public resources to stages and areas of the innovation process in which there are seldom 'market failures'.","PeriodicalId":344620,"journal":{"name":"Entrepreneurship & Marketing eJournal","volume":"50 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-03-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126786394","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Although social promotions are wildly popular with consumers, it is unclear how businesses running such promotions fare. We develop and empirically test a conceptual framework specifying the determinants of a profitable Groupon promotion. Features of the promotional offer and employee satisfaction are hypothesized to affect customer behavior on the occasion of Groupon redemption and longer-term, respectively, which in turn impact profitability of the promotion. A survey-based study of 150 businesses that ran and completed Groupon promotions between June 2009 and August 2010 provides support to the proposed framework. Businesses suffering unprofitable promotions reported significantly lower rates of spending by Groupon users beyond its face value (25% vs. 50%) and return rates to purchase from the business again at full prices (13% vs. 31%). Many respondents reported disillusionment with the extreme price sensitive nature and transactional orientation of Groupon users. Based on these findings, suggestions to modify social promotion offers to better balance the value offered to consumers with positive outcomes for businesses are provided.
{"title":"What Makes Groupon Promotions Profitable for Businesses?","authors":"U. Dholakia","doi":"10.2139/SSRN.1790414","DOIUrl":"https://doi.org/10.2139/SSRN.1790414","url":null,"abstract":"Although social promotions are wildly popular with consumers, it is unclear how businesses running such promotions fare. We develop and empirically test a conceptual framework specifying the determinants of a profitable Groupon promotion. Features of the promotional offer and employee satisfaction are hypothesized to affect customer behavior on the occasion of Groupon redemption and longer-term, respectively, which in turn impact profitability of the promotion. A survey-based study of 150 businesses that ran and completed Groupon promotions between June 2009 and August 2010 provides support to the proposed framework. Businesses suffering unprofitable promotions reported significantly lower rates of spending by Groupon users beyond its face value (25% vs. 50%) and return rates to purchase from the business again at full prices (13% vs. 31%). Many respondents reported disillusionment with the extreme price sensitive nature and transactional orientation of Groupon users. Based on these findings, suggestions to modify social promotion offers to better balance the value offered to consumers with positive outcomes for businesses are provided.","PeriodicalId":344620,"journal":{"name":"Entrepreneurship & Marketing eJournal","volume":"60 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-03-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115166633","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2011-01-06DOI: 10.4337/9781849806046.00016
Shuba Srinivasan, Liwu Hsu, Susan Fournier
Branding is widely recognized as an important marketing activity, yet marketing executives are challenged to prove the value of branding in clear financial terms. The objective of this chapter is to integrate emerging insights from the literature on branding and shareholder value into a process framework that helps enumerate and explain the brand-finance link. This chapter begins by discussing the reasons why using shareholder value (i.e., stock returns and risks) is an appropriate metric to assess brand performance and brand equity value. The authors introduce common metrics of shareholder value (e.g., Tobin’s q, abnormal returns, and idiosyncratic risk) and three distinct metrics of brand equity: customer, product-market, and finance-based. Next, the chapter delineates the mechanisms that govern the branding-finance interface to address whether and how branding affects shareholder value; key findings from the extant literature on branding and shareholder value are summarized to support these process routes. In conclusion, the chapter considers three antecedents of brand-equity creation, again reviewing extant literature to qualify effects on firm value and cash flow: organization-level strategy (e.g., corporate name strategy, mergers & acquisition), brand strategy (e.g., brand extensions and brand portfolio strategy) and brand management tools (e.g., advertising). The chapter concludes with an agenda for future studies that address gaps and challenges in this important and growing area of research.
{"title":"Branding and Firm Value","authors":"Shuba Srinivasan, Liwu Hsu, Susan Fournier","doi":"10.4337/9781849806046.00016","DOIUrl":"https://doi.org/10.4337/9781849806046.00016","url":null,"abstract":"Branding is widely recognized as an important marketing activity, yet marketing executives are challenged to prove the value of branding in clear financial terms. The objective of this chapter is to integrate emerging insights from the literature on branding and shareholder value into a process framework that helps enumerate and explain the brand-finance link. This chapter begins by discussing the reasons why using shareholder value (i.e., stock returns and risks) is an appropriate metric to assess brand performance and brand equity value. The authors introduce common metrics of shareholder value (e.g., Tobin’s q, abnormal returns, and idiosyncratic risk) and three distinct metrics of brand equity: customer, product-market, and finance-based. Next, the chapter delineates the mechanisms that govern the branding-finance interface to address whether and how branding affects shareholder value; key findings from the extant literature on branding and shareholder value are summarized to support these process routes. In conclusion, the chapter considers three antecedents of brand-equity creation, again reviewing extant literature to qualify effects on firm value and cash flow: organization-level strategy (e.g., corporate name strategy, mergers & acquisition), brand strategy (e.g., brand extensions and brand portfolio strategy) and brand management tools (e.g., advertising). The chapter concludes with an agenda for future studies that address gaps and challenges in this important and growing area of research.","PeriodicalId":344620,"journal":{"name":"Entrepreneurship & Marketing eJournal","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-01-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128864106","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Customer co-creation denotes an active, creative and social collaboration process between producers (retailers) and customers (users), facilitated by the company. Customers become active participants in an open innovation process of a firm and take part in the development of new products or services. In this paper, we provide a review of the evolution of customer co-creation and related forms of customer participation and suggest a typology of recent methods of co-creation (open innovation with customers). Our typology is based on three dimensions, addressing (i) the customers’ autonomy in the process, (ii) the nature of the firm-customer collaboration (dyadic versus community based), and (iii) the stage of the innovation process when the customer integration takes place. Along these dimensions, we then present specific methods of customer co-creation. We conclude with a number of suggestions for further research.
{"title":"A Typology of Customer Co-Creation in the Innovation Process","authors":"F. Piller, C. Ihl, Alexander Vossen","doi":"10.2139/ssrn.1732127","DOIUrl":"https://doi.org/10.2139/ssrn.1732127","url":null,"abstract":"Customer co-creation denotes an active, creative and social collaboration process between producers (retailers) and customers (users), facilitated by the company. Customers become active participants in an open innovation process of a firm and take part in the development of new products or services. In this paper, we provide a review of the evolution of customer co-creation and related forms of customer participation and suggest a typology of recent methods of co-creation (open innovation with customers). Our typology is based on three dimensions, addressing (i) the customers’ autonomy in the process, (ii) the nature of the firm-customer collaboration (dyadic versus community based), and (iii) the stage of the innovation process when the customer integration takes place. Along these dimensions, we then present specific methods of customer co-creation. We conclude with a number of suggestions for further research.","PeriodicalId":344620,"journal":{"name":"Entrepreneurship & Marketing eJournal","volume":"14 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2010-12-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130981759","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper gives a basic outline of pricing strategies of software products adopted by two software majors in India, which will be a starting point for further study on pricing strategies. It examines strategies used by Infosys and Wipro especially value based pricing. As a starting point to understand, pricing strategies of fast moving consumer goods is provides for better appreciation of differences in buying software to that of fast moving consumer goods. This paper is meant for basic understanding and not an empirical study.
{"title":"Pricing Strategies in Indian Software Industry","authors":"P. Krishnamurthy","doi":"10.2139/ssrn.1858136","DOIUrl":"https://doi.org/10.2139/ssrn.1858136","url":null,"abstract":"This paper gives a basic outline of pricing strategies of software products adopted by two software majors in India, which will be a starting point for further study on pricing strategies. It examines strategies used by Infosys and Wipro especially value based pricing. As a starting point to understand, pricing strategies of fast moving consumer goods is provides for better appreciation of differences in buying software to that of fast moving consumer goods. This paper is meant for basic understanding and not an empirical study.","PeriodicalId":344620,"journal":{"name":"Entrepreneurship & Marketing eJournal","volume":"72 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2010-12-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123986696","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Given that clustered firms in developing countries generally sell their goods through multinational firms, we seek to determine under what conditions might clustered surgical instrument firms band together and form a cooperative to “break out” of their relationship with multinational buyers to market their own goods. Our results, based on a survey of surgical instrument producers in Sialkot, Pakistan, demonstrate that firms are more likely to be interested in such initiatives once they have already had some direct experience in marketing, such as selling products under their own brand name and having already sold some goods directly to hospitals. Firms that have had relationships of longer duration with customers tend to be less likely to be interested in joint action initiatives. This indicates that a higher opportunity cost of engaging in joint action (as proxied by relationships of longer duration) reduces the likelihood of cooperative marketing initiatives in clusters.
{"title":"Prospects for Cooperative Marketing Among Surgical Instrument Producers in Pakistan","authors":"T. Chaudhry","doi":"10.2139/ssrn.1711659","DOIUrl":"https://doi.org/10.2139/ssrn.1711659","url":null,"abstract":"Given that clustered firms in developing countries generally sell their goods through multinational firms, we seek to determine under what conditions might clustered surgical instrument firms band together and form a cooperative to “break out” of their relationship with multinational buyers to market their own goods. Our results, based on a survey of surgical instrument producers in Sialkot, Pakistan, demonstrate that firms are more likely to be interested in such initiatives once they have already had some direct experience in marketing, such as selling products under their own brand name and having already sold some goods directly to hospitals. Firms that have had relationships of longer duration with customers tend to be less likely to be interested in joint action initiatives. This indicates that a higher opportunity cost of engaging in joint action (as proxied by relationships of longer duration) reduces the likelihood of cooperative marketing initiatives in clusters.","PeriodicalId":344620,"journal":{"name":"Entrepreneurship & Marketing eJournal","volume":"23 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2010-11-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130657357","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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