Consumer Behavior and Firm Competition

Understanding consumer behavior is critical for firms' decision making. How consumers make decisions about what they want and buy directly affect the profits of firms. Therefore, it is important to consider consumer behaviors and incorporate them into the model when studying the optimal strategy of firms and competition between firms. In this dissertation, I study rich and interesting consumer behaviors and their impact on firms' strategy in two essays. The first essay considers consumers' shopping cost which leads to their preference for one-stop shopping. I examine how store visit costs and consumer knowledge about a product affect the strategic store choice of consumers and, in turn, the pricing, customer service and advertising decisions of competing retailers. My analysis offers insights on how specialty stores can compete with big-box retailers. In the second essay, I focus on a well-established psychology phenomenon, cognitive dissonance. I incorporate the idea of cognitive dissonance into a model of spatial competition and examine its implications for selling strategy. I provide new insight on the profitability of advance selling and spot selling as well as the pricing of bundle and its components. Collectively, two essays in this dissertation introduce novel ways to model consumer behaviors and help to understand the impact of consumer behaviors on firm profitability and strategy.

O city marketing em Natal/RN e a construção da imagem da cidade

The growing importance of tourism in overall economic activity worldwide has favored the intensification of competition among cities that seek to create environments attractive to tourists and potential investors. It has been common practice to import characteristics of the business environment in the public management of cities. The city marketing is a key tool used by public leaders to promote a linkage between the tourism image and urban image and involves, in addition to promoting the image of the city, the planning of interventions in urban space, trying to formulate a positive image of the city able to facilitate the deployment of capital. This research seeks to understand the nature of city marketing as part of contemporary urban management and analyzes how is its application in decisions concerning the promotion of tourism in Natal/RN. The approach of this research is qualitative, exploratory and descriptive, in which respondents were the main leaders of two of the official tourism site, the Empresa Potiguar de Promoção Turística and the Secretaria Municipal de Turismo e Desenvolvimento Econômico. It was found that there is a strong articulation of public power with private enterprise in the design and conduct of the actions of urban marketing, that from the survey data show that the behavior of target markets provide guidelines for taking strategic decisions relating to tourism. Sun and sea are some key elements explored to form the image of Natal and to authorize the sale of the city as a tropical paradise. However, there is an increase in the diversification of tourism products, seeking to increase flow to the segments of ecotourism, adventure, business and culture. It s also growing the use of local culture as a tourism product, however, the cultural representation focuses on superficial values and does not bring to light the social and historical richness that the city has. Public authorities use the city marketing strategies as a means able to maximize the attractiveness of Natal urban space to investors, business groups and tourists. It can be observed that urban managers seek solutions that can continuously increase the tours, which often manifests in interventions that focus the tourist areas of the city, in oposition of those who do not contribute to a positive reading of the city, which ultimately generate the worsening of spacial and social inequalities

THE MARKETING OF SOCIAL ENTERPRISES: Understanding the concepts of marketing and market orientation of social enterprises within the context of Pakistani market

The concepts of social entrepreneurship and social enterprises have been extensively discussed in the previous two decades, yet the topic is still not matured yet. Most of the available literature is focused on defining these terms. Similarly, limited number of authors has discussed the marketing function of these enterprises or how marketing is interpreted in social entrepreneurship models. However, there is a plethora of literature on marketing entailing many different theories, amongst which the newest one is the “market orientation concept”. Market orientation is a mix of customer orientation, competitor orientation and inter-functional coordination suggesting marketing to be a part of the business philosophy. This study focuses on the marketing and market orientation of social enterprises while giving an overview of the literature of marketing and market orientation in social enterprises. This study aims to provide two basic questions, 1) what is the literature on marketing and market orientation of social enterprises while explaining the literature of social enterprises in Pakistan and 2) how these concepts are interpreted in social enterprises in Pakistani market. Key features of research methodology include case study approach while conducting thematic analysis using thematic networks. The results indicate that only a limited number of authors have discussed market orientation concept in social enterprises. The results from the interview data indicate the usage of marketing by a firm unconsciously without a specific marketing department. In addition to that, it has been found that in social enterprise world competition is tackled through a win-win approach with a view that many enterprises working for society improve the society which is the basic mission of any social enterprise. The data also showed that in Pakistani market, social enterprise concept is not legally used yet, which allows for more room for innovation. This study intends to give a new perspective to the theorists to use market orientation concept in social enterprises and also to managers to use marketing as their business philosophy in order to satisfy the stakeholders for better delivery of their businesses and as well for social good.

Contributos para uma estratégia de marketing territorial para a região de Moimenta da Beira

Num contexto de urbanização, de acesa competitividade e desertificação do interior, assiste-se cada vez mais a cenários de concorrência entre territórios pela captação de recursos, investimentos, negócios e até visitantes e turistas, capazes de gerar dinâmicas positivas no território, palco deste movimento. Algumas projeções indiciam que o interior de Portugal terá, em 2040, cerca de um terço da população atual e, se a tendência de declínio demográfico se mantiver, em 90 anos o interior perderá 75 por cento da população. Neste contexto, o presente estudo tem por finalidade alertar os decisores políticos para o desenvolvimento de estratégias que possam atrair pessoas para o interior do país e estancar a sua desertificação. Para o efeito, o projeto que se apresenta vai procurar definir uma estratégia de marketing territorial para o concelho de Moimenta da Beira, tendo por base os seus produtos endógenos, como a maçã, o vinho, o mel, os enchidos, os granitos, o património religioso e cultural e, por fim, o património natural, como a Albufeira do Vilar e a Serra da Nave. Para a realização do referido estudo, foi seguida uma metodologia que teve por base uma revisão de literatura na área do marketing territorial, a análise de dados secundários e a realização de entrevistas aos principais Stakeholders da região. Os resultados deste estudo permitirão definir orientações para reforçar a atratividade e competitividade da oferta territorial junto dos segmentos alvo, ou seja, dos atuais e potenciais utilizadores do território.

O marketing do comércio tradicional : o caso das cidades de Ponta Delgada e da Ribeira Grande

Dissertação de Mestrado, Ciências Económicas e Empresariais, 19 de Julho de 2016, Universidade dos Açores.

Unconventional Methods of Marketing Communication

In the era of an information revolution customers come in contact with huge numbers of marketing messages in their everyday lives. This leads to so called, information noise, which may result in many messages going unnoticed. Thus marketing managers are forced to search for more effectively ways of getting customers’ attention and are more willingly to use unconventional promotional methods based on using original forms or places in an effort to create the element of surprise and make their message more eye-catching for the targeted audience. This kind of move tends to evoke strong emotions, motiving readers to pass the message on. Creating such a buzz around brand name would also enhance the campaign’s effect. Unfortunately, this form of communication also brings with it some negative effects due to controversial or taboo topics connected with sensitive social issues. An analysis of the advertising methods used by the owners of the most powerful Polish brands shows that there is some evidence of the use of such methods in Poland. Nevertheless unconventional advertising methods are not a commonly used practice.

O city marketing em Natal/RN e a construção da imagem da cidade

The growing importance of tourism in overall economic activity worldwide has favored the intensification of competition among cities that seek to create environments attractive to tourists and potential investors. It has been common practice to import characteristics of the business environment in the public management of cities. The city marketing is a key tool used by public leaders to promote a linkage between the tourism image and urban image and involves, in addition to promoting the image of the city, the planning of interventions in urban space, trying to formulate a positive image of the city able to facilitate the deployment of capital. This research seeks to understand the nature of city marketing as part of contemporary urban management and analyzes how is its application in decisions concerning the promotion of tourism in Natal/RN. The approach of this research is qualitative, exploratory and descriptive, in which respondents were the main leaders of two of the official tourism site, the Empresa Potiguar de Promoção Turística and the Secretaria Municipal de Turismo e Desenvolvimento Econômico. It was found that there is a strong articulation of public power with private enterprise in the design and conduct of the actions of urban marketing, that from the survey data show that the behavior of target markets provide guidelines for taking strategic decisions relating to tourism. Sun and sea are some key elements explored to form the image of Natal and to authorize the sale of the city as a tropical paradise. However, there is an increase in the diversification of tourism products, seeking to increase flow to the segments of ecotourism, adventure, business and culture. It s also growing the use of local culture as a tourism product, however, the cultural representation focuses on superficial values and does not bring to light the social and historical richness that the city has. Public authorities use the city marketing strategies as a means able to maximize the attractiveness of Natal urban space to investors, business groups and tourists. It can be observed that urban managers seek solutions that can continuously increase the tours, which often manifests in interventions that focus the tourist areas of the city, in oposition of those who do not contribute to a positive reading of the city, which ultimately generate the worsening of spacial and social inequalities

Análisis de posicionamiento en el sector de servicios de hosterías en el Valle de Yunguilla y propuesta de diseño de un plan estratégico de marketing para la hostería “Los Cisnes” en el periodo 2015-2018

El proyecto está enfocado al desarrollo de un Plan Estratégico aplicado a Hostería “Los Cisnes”. Tiene como objetivo contribuir con el desarrollo organizacional de la empresa, hacer frente a la competencia con la finalidad de prestar un servicio de calidad.Para la consecución de lo mencionado anteriormente se realizó un esquema que contempla lo siguiente: Se Expone conceptos y definiciones básicos de marketing que se necesitarán a lo largo del desarrollo del proyecto para el entendimiento del mismo.Se realizó el estudio del sector mediante encuestas y entrevistas aplicadas a personas que hacen uso del servicio de hostería y a los administradores de estos establecimientos. Para la obtención de resultados se utilizó el programa SPSS donde se emplearon variables e indicadores. Se estableció un ranking de acuerdo al catastro de establecimientos otorgado por el Ministerio de Turismo, encontrándose Hostería Los Cisnes en el tercer lugar, esto de acuerdo a la encuesta aplicada por las autoras del trabajo de titulación. Se desarrolló la situación actual de la empresa mediante herramientas como: análisis del micro-entrono y macro-entorno, análisis FODA, matriz EFI, matriz EFE, matriz BCG. Se desarrolló el Plan Estratégico de Marketing que contempla: misión, visión, objetivos, implementación de estrategias, planes de acción y presupuestos, es decir, está formado por todos los recursos necesarios para posicionamiento de la empresa.Finalmente se presenta las conclusiones y recomendaciones que fortalezcan la realización de las estrategias planteadas y que a la vez determinen resultados óptimos para la hostería.

O marketing das notícias : consumo de informações online, persuasão e confiança

Dissertação (mestrado)—Universidade de Brasília, Instituto de Psicologia, Departamento de Psicologia Social e do Trabalho, Programa de Pós-Graduação em Psicologia Social, do Trabalho e das Organizações, 2016.

Essays on competition in the pharmaceutical industry

Chapter 1: Patents and Entry Competition in the Pharmaceutical Industry: The Role of Marketing Exclusivity. Effective patent length for innovation drugs is severely curtailed because of extensive efficacy and safety tests required for FDA approval, raising concern over adequacy of incentives for new drug development. The Hatch-Waxman Act extends patent length for new drugs by five years, but also promotes generic entry by simplifying approval procedures and granting 180-day marketing exclusivity to a first generic entrant before the patent expires. In this paper we present a dynamic model to examine the effect of marketing exclusivity. We find that marketing exclusivity may be redundant and its removal may increase generic firms' profits and social welfare. ^ Chapter 2: Why Authorized Generics?: Theoretical and Empirical Investigations Facing generic competition, the brand-name companies some-times launch generic versions themselves called authorized generics. This practice is puzzling. If it is cannibalization, it cannot be profitable. If it is divisionalization, it should be practiced always instead of sometimes. I explain this phenomenon in terms of switching costs in a model in which the incumbent first develops a customer base to ready itself against generic competition later. I show that only sufficiently low switching costs or large market size justifies launch of AGs. I then use prescription drug data to test those results and find support. ^ Chapter 3: The Merger Paradox and R&D Oligopoly theory says that merger is unprofitable, unless a majority of firms in industry merge. Here, we introduce R&D opportunities to resolve this so-called merger paradox. We have three results. First, when there is one R&D firm, that firm can profitably merge with any number of non-R&D firms. Second, with multiple R&D firms and multiple non-R&D firms, all R&D firms can profitably merge. Third, with two R&D firms and two non-R&D firms, each R&D firms prefer to merge with a non-R&D firm. With three or more than non-R&D firms, however, the R&D firms prefer to merge with each other.^

Visitor Relationship Management (VRM) - Repeat Visitation Opportunities for Destination Marketing Organisations

In competitive tourism markets the consumer-traveller is spoilt by choice of available destinations. Successfully differentiating a destination and getting noticed at decision time is arguably the focus of activities by destination marketing organisations (DMOs). In pursuit of differentiation, three emergent themes in the marketing literature during the past decade have been branding, integrated marketing communications (IMC), and customer relationship management (CRM) a fundamental goal of each being stimulating customer loyalty. However there has been little attention given to destination loyalty in the tourism literature. The purpose of this paper is to report an exploratory investigation of visitor relationship management (VRM) by DMOs. Based on interviews with the management of 11 regional tourism organisations (RTO) in Queensland, Australia, the opportunities for, and immediate challenges of, VRM are discussed. While each RTO recognised the potential for VRM, none had yet been able to develop a formal approach to engage in meaningful dialogue with previous visitors from their largest market.

Consumer appraisals of mobile marketing communications

This paper reports on a study that investigates the emotions elicited from appraising SMS-based mobile marketing (m-marketing) communications under three marketing conditions: product consistency, incentives and permission giving. Results from the experimental design show that appraising m-marketing communications elicits both single emotions and mixed emotions; that is, a mixture of positive and negative emotions in the same response. Additionally, the results show that the influence of specific marketing conditions may increase or reduce the intensity of the emotions elicited. This study contributes to marketing practice by examining consumer appraisals of m-marketing communications under different combinations of marketing conditions. The results provide insights into which emotions are likely to be elicited as a result, and how a specific marketing condition might influence their levels of intensity. The study contributes to marketing theory also through combining appraisal theory with Richins (1997) consumption emotion set.