A new marketing segmentation approach based on marginal individual utilities: applying CRM is not a chimera anymore

In the advent of Customer Relationship Management, a more accurate profile of the consumer is needed. The objective of this paper is to show the usefulness of knowing consumer’s complete utility function through his/her marginal utilities. This approach allows one to form groups of individuals with similar preferences (as traditional segmentation methods do) and to treat them individually (which represents an advance). The empirical application is carried out, on a sample of 2,127 individuals, in the context of tourism, where the customer relationship management philosophy is gaining more and more relevance.

Does the consumer’s variety-seeking behavior condition the willingness to travel further?

The objective of this study is to test the effect of the consumer’s variety-seeking behaviour on the distance the tourist is prepared to travel; that is, his/her willingness to travel further. The empirical application is carried out in Spain in a context with 26 destinations, by applying Mixed Logit Models. The results evidence that the variety-seeking behaviour reduces the dissuasive effect of distance.

Price sensitivity to tourism activities: looking for determinant factors

The literature contains evidence that there is a marked heterogeneity in price responses to tourism products, leading to a great variety of tourist sensitivities to price. Thus the role price plays is complex, and a particularly challenging aspect of this complexity is that its effect is not unambiguous, thereby negating the idea that the demand for tourism products and tourist activities can always be regarded as demand for ordinary goods. This article identifies and explains, as a novelty for the tourism industry, price sensitivities to tourism activities individual by individual. The operative formalization uses a mixed logit model to estimate the individual sensitivities to price, and then a regression analysis is applied to detect their determinants. The empirical application finds that motivations, influenced by age, and length of stay with a non-linear effect, are explanatory factors of tourists’ price sensitivity to activities.

Who performs a stronger response to whom? Detecting individual competitive actions and reactions

This study analyzes the degree of competition through individual actions and reactions. Empirical support for this analysis has derived mainly from structural econometric models describing the nature of competition. This analysis extends the existing literature by empirically considering a direct measurement of competition through the analysis of the competitive actions and responses, and describing how firms compete within and between strategic groups. We estimate the firms’ conduct in the Spanish deposits market with 146 firms and 18,888 observations. This is a specially compelling context for the banking industry, in which a deregulation process gives rise to the adoption of aggressive strategies seeking to increase the market shares of deposit accounts; thus, producing a turbulent situation of increasing rivalry. Our results offer a deeper understanding of the firms’ competitive behavior, since we identify different patterns of actions and reactions depending upon the strategic group the firm belongs to.

Detecting Free Riders in Collective Brands through a Hierarchical Choice Process

Free-riding behaviors exist in tourism and they should be analyzed from a comprehensive perspective; while the literature has mainly focused on free riders operating in a destination, the destinations themselves might also free ride when they are under the umbrella of a collective brand. The objective of this article is to detect potential free-riding destinations by estimating the contribution of the different individual destinations to their collective brands, from the point of view of consumer perception. We argue that these individual contributions can be better understood by reflecting the various stages that tourists follow to reach their final decision. A hierarchical choice process is proposed in which the following choices are nested (not independent): “whether to buy,” “what collective brand to buy,” and “what individual brand to buy.” A Mixed Logit model confirms this sequence, which permits estimation of individual contributions and detection of free riders.

Assessment of University External Internships. Towards a Mixed Model for Measuring the Acquisition of Skills and the Satisfaction of Parties Involved

The continuous improvement of management and assessment processes for curricular external internships has led a group of university teachers specialised in this area to develop a mixed model of measurement that combines the verification of skill acquisition by those students choosing external internships with the satisfaction of the parties involved in that process. They included academics, educational tutors of companies and organisations and administration and services personnel in the latter category. The experience, developed within University of Alicante, has been carried out in the degrees of Business Administration and Management, Business Studies, Economics, Advertising and Public Relations, Sociology and Social Work, all part of the Faculty of Economics and Business. By designing and managing closed standardised interviews and other research tools, validated outside the centre, a system of continuous improvement and quality assurance has been created, clearly contributing to the gradual increase in the number of students with internships in this Faculty, as well as to the improvement in satisfaction, efficiency and efficacy indicators at a global level. As this experience of educational innovation has shown, the acquisition of curricular knowledge, skills, abilities and competences by the students is directly correlated with the satisfaction of those parties involved in a process that takes the student beyond the physical borders of a university campus. Ensuring the latter is a task made easier by the implementation of a mixed assessment method, combining continuous and final assessment, and characterised by its rigorousness and simple management. This report presents that model, subject in turn to a persistent and continuous control, a model all parties involved in the external internships are taking part of. Its short-term results imply an increase, estimated at 15% for the last course, in the number of students choosing curricular internships and, for the medium and long-term, a major interweaving between the academic world and its social and productive environment, both in the business and institutional areas. The potentiality of this assessment model does not lie only in the quality of its measurement tools, but also in the effects from its use in the various groups and in the actions that are carried out as a result of its implementation and which, without any doubt and as it is shown below, are the real guarantee of a continuous improvement.