Nonstationary brand variables in category management: A cointegration perspective

Category-management models serve to assist in the development of plans for pricing and promotions of individual brands. Techniques to solve the models can have problems of accuracy and interpretability because they are susceptible to spurious regression problems due to nonstationary time-series data. Improperly stated nonstationary systems can reduce the accuracy of the forecasts and undermine the interpretation of the results. This is problematic because recent studies indicate that sales are often a nonstationary time-series. Newly developed correction techniques can account for nonstationarity by incorporating error-correction terms into the model when using a Bayesian Vector Error-Correction Model. The benefit of using such a technique is that shocks to control variates can be separated into permanent and temporary effects and allow cointegration of series for analysis purposes. Analysis of a brand data set indicates that this is important even at the brand level. Thus, additional information is generated that allows a decision maker to examine controllable variables in terms of whether they influence sales over a short or long duration. Only products that are nonstationary in sales volume can be manipulated for long-term profit gain, and promotions must be cointegrated with brand sales volume. The brand data set is used to explore the capabilities and interpretation of cointegration.

The effect of provocation in the form of mild erotica on attitude to the ad and corporate image: Differences between cause-related and product-based advertising

Provocative advertising is characterized by a deliberate attempt to gain attention through shock. This research investigates the reactions of individuals to a provocative appeal for a cause as opposed to a provocative advertisement for a standard consumer product, using mild erotica as the element of provocative imagery. An experiment using 391 adult subjects was conducted, and two analyses were performed. The first examined the effect of stimulus type (mildly erotic/nonerotic) by product category (cause appeal/consumer product) on attitude to the ad. The second examined the effect of stimulus type (mildly erotic/nonerotic) by cause (AIDS [acquired immunodeficiency syndrome]/SIDS [sudden infant death syndrome]) on corporate image. Both analyses also included gender as a third independent variable. The results suggest that people prefer mildly erotic ads generally, that an organization using mild erotica in appeals for a cause will be viewed more favorably where the erotica is congruent with the cause, and that women may be more responsive to mild erotica in cause appeals than are men.

Investigating the relationship between internet privacy concerns and online purchase behavior

Many organizations now emphasize the use of technology that can help them get closer to consumers and build ongoing relationships with them. The ability to compile consumer data profiles has been made even easier with Internet technology. However, it is often assumed that consumers like to believe they can trust a company with their personal details. Lack of trust may cause consumers to have privacy concerns. Addressing such privacy concerns may therefore be crucial to creating stable and ultimately profitable customer relationships. Three specific privacy concerns that have been frequently identified as being of importance to consumers include unauthorized secondary use of data, invasion of privacy, and errors. Results of a survey study indicate that both errors and invasion of privacy have a significant inverse relationship with online purchase behavior. Unauthorized use of secondary data appears to have little impact. Managerial implications include the careful selection of communication channels for maximum impact, the maintenance of discrete “permission-based” contact with consumers, and accurate recording and handling of data.

The influence of social communications networks on intentions to purchase on the web

Despite the increased offering of online communication channels to support web-based retail systems, there is limited marketing research that investigates how these channels act singly, or in combination with offline channels, to influence an individual's intention to purchase online. If the marketer's strategy is to encourage online transactions, this requires a focus on consumer acceptance of the web-based transaction technology, rather than the purchase of the products per se. The exploratory study reported in this paper examines normative influences from referent groups in an individual's on and offline social communication networks that might affect their intention to use online transaction facilities. The findings suggest that for non-adopters, there is no normative influence from referents in either network. For adopters, one online and one offline referent norm positively influenced this group's intentions to use online transaction facilities. The implications of these findings are discussed together with future research directions.

A comparison of attitudes among purchasers of imported fruit in Guangzhou and Urumqi, China

Research on Chinese consumer behavior is dominated by studies of Chinese consumers as a whole, or studies of consumers in a single city or region. Comparative studies that take into account the cultural, economic and demographic differences between contrasting markets within China are poorly represented in the literature. The widening economic gap between rapidly developing coastal cities and less developed cities in more remote regions provides an opportunity for comparative consumer studies. In this research we compared the responses of buyers of imported fruit in two very different cites, Guangzhou (highly developed) and Urumqi (relatively undeveloped). Results revealed that buyers' beliefs and their evaluation of those beliefs towards the attributes of imported fruit were distinctly different. Factors such as the city's background, consumers' education level and the intended uses explained most of these differences. Results will help to broaden our understanding of Chinese consumer behavior and provide valuable information when formulating marketing strategies. (C) 2003 Elsevier Ltd. All rights reserved.