V. “Seenu” Srinivasan, Stanford University S

International Marketing Conference on

Creating, Communicating, and Delivering Value

Co-sponsored by the Kotler-Srinivasan Center for Research in Marketing, Great Lakes Institute of Management, Chennai, and North American Society for Marketing Education in India

Chennai, December 22- 23, 2008

Co-Chairs:

V. “Seenu” Srinivasan, Stanford University

S.Sriram, Great Lakes Institute Of Management,Chennai.

Dear Marketing Colleagues:

We warmly welcome you to the International Marketing Conference on Creating, Communicating, and Delivering Value in Growing Markets. This conference held in

Chennai, India on December 22 and 23, 2008 is cosponsored by the Kotler-Srinivasan Center for Research in Marketing at the Great Lakes Institute of Management, Chennai and the North American Society for Marketing Education in India (NASMEI).

During the two days of the conference approximately fifty research papers in marketing will be presented by researchers from all over the world. This document contains the extended abstracts. If you wish to receive additional details on the research including the full length paper, if available, please contact the author(s) directly.

Our thanks to Professor Pradeep Chintagunta, President of NASMEI and other NASMEI board members for cosponsoring the conference and hosting the dinner at the end of the first day, and Professor Bala V. Balachandran, Founder and Honorary Dean of Great Lakes Institute of Management for cosponsoring the conference. We also thank Mr. G.R.K. Reddy of MARG constructions, Chennai and Mr. B.V.R. Mohan Reddy, Chairman and CEO of InfoTech, Hyderabad for providing financial assistance.

We thank Mr. Sankaran, Mr. Prabhakaran and Mr. Subaash of Great Lakes Administration and the student team headed by Mr. Ipinder Singh with members Bharat Sawhney, Jimish Shah, Niyati Kamthan, Prakash Randheer, Rahul Prakash, Ranjith Shankar, Ravi Shastry, Riyaz Vohra, Surya Sarkar, Vidya Shankar, and Upasana Jani for their administrative assistance.

We are especially grateful to Dr. Taruna Gupta of Great Lakes for her tremendous contributions in putting together this conference.

We hope you have a wonderful learning experience.

V. Srinivasan S. Sriram

Adams Distinguished Prof. of Mgmt Executive Director & Prof. Mktg.&Strategy

Graduate School of Business Great Lakes Institute of Management

Stanford University, Stanford, CA, USA Chennai, India

CO-CHAIR CO-CHAIR

I am pleased that the Kotler-Srinivasan Center for Research in Marketing will sponsor the next International Marketing Conference at Great Lakes, Chennai on December 22-23, 2008 cosponsored by the North American Society for Marketing Education in India.

India is making great progress in developing a growing and vibrant market economy. As an economy matures, so must the concept and practice of marketing mature. I see marketing as evolving through five stages:

1. Selling stage. (The idea of setting up selling systems involving distribution, sales people and advertising).

2. 4P stage. (The idea of integrating the marketing tools).

3. STP stage. (The idea of refining the market targets and branding).

4. Customer Relationship stage. (The idea of building a loyal customer base).

5. Co-creation stage. (The idea of involving customers in developing products and communications).

Many Indian companies are still stuck in practicing marketing as if it is the same as selling (stage one). Their marketing is all about promotion and personal selling (One P marketing – stage 2). More sophisticated Indian companies have made marketing responsible for preparing an integrated 4P marketing plan (stage 3). Still more sophisticated Indian companies are refining their market segmentation, targeting, and positioning (STP - stage 4).

Please note that many companies in the West are struggling to implement effective practices in customer relationship management (stage 4). Only a few are experimenting with stage 5. My expectation is that stage 5 will become the norm in ten years where companies work closely with their customers to co-create the products, value propositions, and communications together.

I look forward to reading the fine papers selected for presentation at the 2008 conference.

Philip Kotler, Ph.D.

S. C. Johnson Distinguished Professor of International Marketing

Kellogg School of Management

Northwestern University

Evanston, Illinois

My dear colleagues and friends of marketing,

At the outset, let me welcome you all on behalf of Great Lakes Institute of Management and its extended family. As a committed Indian I have carried within me the dream, yearning with passion, compassion, and impatience for great results throughout my long and variegated academic career living in the U.S. for over 40 years. This dream is to take India back to where it was centuries ago as the richest and wisest civilization in the entire world especially in higher education. Execution of this dream started in a humble way in 1973 with Mr. N.S. Ramaswamy at the creation of IIM, Bangalore to be followed most actively in 1991 after the economic liberalization of Rao-Manmohan Singh Governments when I as Director of the UNDP Project launched the PGPM program at Management Development Institute (MDI) at Gurgaon in 1993. Later in 1996, I started planning for an independent private MBA Institution with Rajat Gupta, the then Head of McKinsey, our Kellogg school with Deepak Jain, and Wharton with Jagmohan Singh Raju and the first batch of full time MBAs started in 2001 at the Indian School of Business. This is now benchmarked as the trendsetter for one-year program for experienced students. Since I come from Tamil Nadu and have grown up in Chennai, I recognized the need for a high quality one year program in Tamil Nadu. Thus, I started in 2003, with my passion for institution building for management education with the support of Tamil Nadu Government and industry leaders like Dr. Ratan Tata, Jamshyd Godrej, and others Great Lakes Institute of Management. With just seven months of planning, knowing both the time and the location is right, the first batch of one year experienced MBAs started in April 2004. In a strategy meeting with the Board in Bangalore, we decided to focus on marketing as the paramount need for India and to build on the experience from U.S. and the developed world and thus we created Chairs in marketing with endowments from Godrej Group and by K.B. Chandrasekar of KBC Group, California. That is when I decided besides the two chairs let us create a ―Forum for Creating, Communicating, and Delivering Enhanced Values for the Marketing Community.‖ That passionate vision gave birth to "Kotler-Srinivasan Center for Research in Marketing" inaugurated by the Legendary Marketing Messiah, Phil Kotler himself in July 2006 and the Super Srinivasan of Stanford known for his pioneering research in various areas. Both of them are known to me, Kotler as a colleague with whom I have published from 1973 and, of course, my beloved brother from his birth. Both represent the creation, communication and delivery of value by research and book publications. This forum will be the focal point of our commitment to marketing, exceeding and excelling in marketing knowledge creation and distribution and added value enhancements by special programs, executive education, curriculum and other related scholastic activities. While we are actively searching for the chairs, I am pleased to inform you based on consultation with Prof.

Srinivasan, Prof. Kotler and the Donor Mr. K.B. Chandrasekar, that we are recommending to nominate Prof. M.J. Xavier who has been recruited to Great Lakes as a Senior Professor of Marketing since November as the "K.B. Chandrasekar Distinguished Professor of Marketing."

We are also pleased to inform you that besides Prof. Xavier and Prof. Sriram who are in the area of Marketing, we have also recruited Dr. R. Bharadhwaj, Ph.D. (Maryland) and currently with IIT Chennai and Prof. Swaminathan from IFMR to join this core group of Marketing at Great Lakes. With the new Campus to be inaugurated soon and this group of scholars in Marketing, I am confident we will take Marketing and Sales to newer levels of academic excellence.

I am pleased that NASMEI with its mission for marketing education in India is joining hands with Great Lakes and the K-S Marketing Center in hosting this year's two day conference, sponsored by Great Lake and NASMEI with financial assistance from Mr. G.R.K. Reddy of Marg Constructions, Chennai and Mr. B.V.R. Mohan Reddy, Chairman and CEO of Infotech, Hyderabad. I am quite impressed and overwhelmed with the schedule and the quality of presenters. This ideally echoes with our mission of creating, distributing and delivering enhanced value. I am pleased to inform you that we have just launched our permanent residential campus in the picturesque East Coast Road on the way to Pondicherry 5 kms. from the cultural historic center of Mahabalipuram. This new campus will have the Platinum Rating for Green campus that is energy efficient, eco-friendly, and using biodegradable recycled materials and that will be the first for a business school, emphasizing our social value conscience. With the launching of our Ph.D. program with Yale, the K-S center in the new campus, and the new research journal, we are on a mission to grow with quality and world class research performance. I need your support and help with the doctoral program and the proposed new journal in Marketing.

My yesterday is my experience. Today is my experiment and tomorrow is my expectations. I confidently feel with your help, I can leverage my yesterday's experience, exploiting today's experiments' good results in achieving our tomorrow's expectations and even excel and exceed. Won't you join me in this noble crusade of building India and marketing India, Indianness, and Indian values? With a global mindset and Indian roots with values, we will reach and be recognized with your help. I welcome you all now and for-ever.

JAI HIND; JAI GREAT LAKES: God Bless You All;

Respectfully;

Bala. V. Balachandran:

Founder & Honorary Dean, Great Lakes Institute of Management and J.L.Kellogg Distinguished Professor of Accounting, Information Management and Decision Sciences, Northwestern University.

On behalf of the North American Society for Marketing Education in India (NASMEI), I would like to welcome you all to this conference. NASMEI is honored to be associated with an event such as this which brings together world-class academic research and researchers. As academic marketers, the goals of creating, communicating and delivering value, the main themes of this conference, are central to our pursuits. These three dimensions take on an added importance and significance in these uncertain and trying times. It is the belief of those of us at NASMEI that a conference such as this one helps in three related ways. The first is in facilitating a communication between researchers about what we currently know regarding the various dimensions of value; and the second is in enabling the creation of new collaborations that can help us advance our knowledge and thinking in these critical areas. Third, it ensures that we are on the cutting edge of research in these important areas.

NASMEI is also very grateful to the Kotler-Srinivasan Center and to the Great Lakes Institute of Management for all the support and input towards the organizing and hosting of this conference. The society would also like to convey its sincerest thanks to V. ―Seenu‖ Srinivasan and to S. Sriram for doing all the hard work related to putting together an event like this. ―Seenu‖ is also a founding member of NASMEI and has played a vital role in its success over the years.

Finally, on a more personal note, once again I regret not being able to attend this conference.

I wish you the very best for an outstanding conference.

On behalf of NASMEI,

Pradeep K. Chintagunta President

MONDAY DEC 22, 2008 Session Time EVENT DETAILS Opening 8:45 am to 9.30 am MARIGOLD HALL session Welcome Address Professor Bala V. Balachandran Founder & Honorary Dean, Great Lakes Institute of Management and J.L. Kellogg Distinguished Professor of Accounting, Information Management and Decision Sciences, Northwestern University Keynote Address Professor Dipak Jain, Dean, Kellogg School of Management, Northwestern University and Sandy and Morton Goldman Professor of Entrepreneurial Studies

“Marketing Scholars and Scholarship: The Journey Ahead” Track A: GULMOHAR HALL Track B: LOTUS HALL Session M1 9.30 am to 11.00 am M1A: Brands-I M1B: Services Marketing Refreshment Break 11.00 am to 11.30 am MARIGOLD HALL Session M2 11.30 am to 1.00 pm M2A: Brands-II M2B: New Products-I Lunch Break 1.00 pm to 2.00 pm MARIGOLD HALL Session M3 2.00 pm to 3.30 pm M3A: Brands-III M3B: New Products-II Refreshment Break 3.30 pm to 4.00 pm MARIGOLD HALL Session M4 4.00 pm to 5.30 pm M4A: Consumer M4B: Customer Loyalty Behavior - I Dinner 7:30 pm to 9:30 pm MARIGOLD HALL

TUESDAY DEC 23, 2008 Session Time Track A: Gulmohar Track B: Lotus Hall Hall Session T1 9.00 am to 10.30 am T1A: Consumer Behavior-II T1B: Market Research Refreshment 10:30 am to 11.00 am Break MARIGOLD HALL Session T2 11.00 am to 12.30 pm T2A: Marketing Communication T2B:Value Creation Lunch Break 12.30 pm to 1.30 pm MARIGOLD HALL Session T3 1.30 pm to 3.00 pm T3A: Consumer Behavior – III T3B: Marketing General-I Refreshment 3.00 pm to 3.30 pm Break MARIGOLD HALL Session T4 3.30 pm to 5.00 pm T4A: Retailing T4B: Marketing General- II Closing 5.00 pm to 5.30 pm Session MARIGOLD HALL 7

Detailed Schedule

Monday, December 22 Monday, December 22

Session Track A :Gulmohar Hall Track B : Lotus Hall

Session M1 M1A: BRANDS-I M1B: SERVICES MARKETING

9:30 am to Coordinator: Rajdeep Bakshi Coordinator: Murali Chandrashekaran 11:00am

M1A.1:Brand Chakras ™- M1B.1 Customer Satisfaction With Holistic tool to map consumer Service Quality With Special Reference behaviour, brand identity, To Life Insurance Corporation in category payoffs and societal Madurai District. trends

By Mythili Chandrasekar, By. D.Maria Ponreka Senior VP and Executive Research Scholar & Lecturer Planning Director, JWT India SathyabamaUniversityChennai-19

M1A.2: Enhancing Corporate M1B.2: Marketing Hospitals By Value: A Framework For Managing Impressions Of The Indian Reviving Weak Brands Stethescope

By-Sunil Thomas(College of By Ms. Anagha Shukre : ( faculty Business and Economics, member - IMS, Ghaziabad). California State University Fullerton;)

Chiranjeev Kohli(College of Business and Economics, California State University Fullerton)

M1A.3: The Financial M1B.3: Channel Configuration and Determinants Affecting the Value Capture in Real Estate Markets Worth of Brand - An Indian Perspective By Kristin Rotte University of New South Wales By Rajdeep Bakshi Australian School of Business Faculty Member International School of Business and Media Murali Chandrashekaran Kolkata, India University of New South Wales Australian School of Business

Session M2 M2A: Brands-II M2B: NEW PRODUCTS-I

11:30 am to Coordinator: Tanmay Coordinator: Rajesh Sethi 1:00 pm Chattopadhyay

M2A.1: Decomposing Brands M2B.1: Catch-up and Slowdown: by Usage and Exploring Globalization and Market Penetration of Brand-Usage Networks New Products

By Mukesh Bhargava By Deepa Chandrasekaran,(Lehigh Kim B. Serota) University Gerard J. Tellis, University OaklandUniversity,Rochester, of Southern California) Michigan, USA.

M2A.2 Cultural Effect On M2B.2 What Makes Born-Globals Managing Brand In India‖ Innovative? A Customer Relationship Perspective

By Bodhisatta Bhattacharyya By G.M. Naidu(Professor Emeritus IFIM Business School; works University of Wisconsin-Whitewater) in the capacity of Manager at SITAR (A Govt.of India Kim Daekwan (Florida State University) Society)., Bangalore; Choton Basu(Global Business Resource Dr.Nilanjan Sengupta Center University of Wisconsin- Professor at IFIM Business Whitewater) School Tamer S. Cavusgil(Georgia State Dr. Mousumi S. Bhattacharya University) Professor at IFIM Business School;

M2B.3:The Role of Micro-Politics in the Development of New-to-the-Firm M2A.3: Consumer Products imperfection in observation --- Is it a boon for manufacturers? : The case of automobile sector By Rajesh Sethi,(Clarkson University, in India Potsdam, NY, )

By TanmayChattopadhyay Zafar Iqbal,( Depaul University, Chicago, IL), Marketing Manager, Amararaja Batteries Ltd., Anju Sethi,( Clarkson University, Hyderabad &Doctoral Potsdam, NY,) Student, Department of Management,Birla Institute of Technology, Mesra

Shraddha Shivani, Associate Professor, Department of Management, Birla Institute of Technology,

Mesra, Ranchi , Jharkhand

Mahesh Krishnan,Sales and Marketing Director,Goodyear India Ltd.,Faridabad,Haryana

Session M3 M3A: BRANDS-III M3B: NEW PRODUCTS- II

2.00 pm to Coordinator: Alokparna Coordinator: Gopalkrishnan R. Iyer 3.30 pm (Sonia) Basu Monga

M3A.1: Effects Of Customer M3B.1:Creating Value through Trust On Purchase Intentions: Consumer Ethnography in New Product Examining Customer-Brand Development: Case Study Analyses Relationship Dr Aruna Shekar (School of By JoffiThomas - IIM Engineering and Advanced Kozhikode; Technology,Massey University) Dr Rainer Seidel (University of Ashok Pratap Arora - MDI Auckland. Gurgaon and G. Shainesh - Auckland, New Zealand) IIM Bangalore

M3A.2 Standardization of M3B.2: A Study on Customer Co- Scale on Brand Character Creation in Print Media

By Dr. Smriti Yash Verma By Madhavi Garikaparthi- Professor of Assistant Professor, Institute of Marketing, ICFAI Business School, Management Technology, Mumbai.- Nagpur. Prema Ramachandran- Professor of Dr. Santosh Dhar HR & Soft Skills, ICFAI Business Professor, Institute of School, Mumbai. Management, Nirma University of Science &Technology, Ahmedabad

M3A3: What Makes Brands M3B.3 Appropriateness and Elastic? The Influence of Appropriability of Marketing Brand Concept and Styles of Innovations Thinking on Brand Extension Evaluation By Gopalkrishnan R. Iyer, Ph.D. Florida Atlantic University By Alokparna (Sonia) Basu Monga, (University of South R. Krishnan, Ph.D. Carolina,) Deborah Roedder Professor of Marketing John,( University of University Of Miami Minnesota,) Arun Sharma, Ph.D. University Of Miami

Session M4 M4A:CONSUMER M4B:CUSTOMER LOYALTY BEHAVIOR-I 4:00 pm to 5:30 pm Coordinator: Srinivas Coordinator: B. Ramaseshan Durvasula

M4A.1: An Empirical Analysis M4B.1:Examining Mediating Role of of Recommender Systems and Attitudinal Loyalty and Nonlinear Market Diversity Effects in Satisfaction-Behavioral Intentions Relationship

By Daniel Fleder and Kartik By Anand K. Jaiswal Hosanagar, Operations & Assistant Professor of Marketing Information Management(The Indian Institute of Management, Wharton School, University of Vastrapur, Ahmedabad, India Pennsylvania) Rakesh Niraj Assistant Professor of Marketing USC Marshall School of Business

M4A.2: An investigation into M4B.2:Mobile Phone Choice, Corporate the impact of information Image And Customer Loyalty loading on purchase behaviour By Dr.P. Ganesan, By Mathew Parackal Associate Professor, VIT Business Department of Marketing, School, VIT University, Vellore University of Otago, New Zealand Ms.Amritha Jain, Student, VIT Business School, VIT University,Vellore

M4A.3: Validation of Consumer Behavior Measures: A Comparison of Alternative M4B.3 Performance of Loyalty Approaches Programs in Small Businesses: Some Australian Evidence By Srinivas Durvasula (Professor and Edward A.Brennan Chair in By B. Ramaseshan, Curtin University of Marketing,Marquette Technology, Perth (Australia) University); Megan Johnston, Hismelt Corporation, Perth (Australia)

Subhash Sharma(James F. Kane Professor of Business,University of South Carolina);

Tuesday, December 23 Tuesday, December 23

Track A: Gulmohar Hall Track B: Lotus Hall

Session T1 T1A:CONSUMER T1B: MARKET RESEARCH BEHAVIOR-II 9.00 am to 10:30 am Coordinator: Ashwani Monga Coordinator: V. ―Seenu‖ Srinivasan

T1A.1 The Impact of Social T1B.1: Intention Conviction, Contagion on What Brand to Measurement, and the Prediction of Buy, How to Buy and Whom Consumer Behavior to Buy From: Evidence from High-Tech Durable Goods By Murali Chandrashekaran, Market (University of New South Wales)

By.Ramkumar Janakiraman ( Kristin Rotte, University of New South Mays Business School, Texas Wales A&M University Frank Kardes, (University of Rakesh Niraj (Marshall School Cincinnati) of Business, University of Maria Cronley, (Miami University) Southern California)

T1A.2: Acculturation to the T1B.2: Value Creation through Better Global Consumer Culture: A Targetability: Genetic Algorithms for Comparison of Young Dual Objective Segmentation Consumers in Nigeria and the United States By P.V. (Sundar) Balakrishnan

By Steven Lysonski Professor of Marketing, Business Professor and Miles Research Administration Program, University of Scholar, Marquette University Washington, Bothell, WA

Srinivas Durvasula Subodha Kumar,Assistant Professor of Professor and Edward A. MIS,University of Washington, Seattle, Brennan Chair in Marketing, WA Marquette University

Idris Odunewu Marquette Univ

T1A.3: Seeking Bargains: Is T1B.3: Assessing Presidential Priorities: that Worth My Time? A Comparison of Three Methods

By Ritesh Saini,(GeorgeMason By V. “Seenu” Srinivasan, (Adams University) Distinguished Professor of Management,Graduate School of Raghunath S. Rao,(University Business, Stanford University) of Texas) Alex Makarevich, Doctoral Candidate Ashwani Monga, (University of in Sociology, Stanford University South Carolina),

Session T 2: T2A: MARKETING T2B: VALUE CREATION COMMUNICATION 11.00 am to 12:30 pm Coordinator: Subhadip Roy Coordinator: Kanika Meshram

T2A.1:Communicating Value: T2B.1: Value Creation Persuasion: Role of Affective and Cognitive bases of By N.Jayaraman(Consultant;) Attitude Functions

By Srividya Raghavan, Assistant professor and Doctoral Candidate, Icfai Business School, Hyderabad

T2A.2 :Information and T2B.2: IPL as a Value Creator for its Emotive Content in Chinese Stake-holders Print Advertising:A Scale By S. Manoharan- Assistant Professor, Revalidation Analysis IFIM Business School By Rajendar K. Garg Dr. Rajendra Nargundkar- Indiana University of Dean,Continuing Education, IFIM Pennsylvania Business School.

T2A.3: Content analysis of T2B.3: Creating value through seniors‘ TVC‘s featuring Celebrities social networks in third places By Subhadip Roy (ICFAI By Kanika Meshram, Institute for Management Assoc. Prof. Alison Dean Teachers,Hyderabad) University of Newcastle, Australia Alan D’ Souza(Mudra Institute

of Communication Research, Ahmedabad) Mari Sudha(Mudra Institute of Communication Research)

Session T3: T3A: CONSUMER T3B: MARKETING GENERAL – 1 BEHAVIOR - III 1:30 pm to 3.00 pm Coordinator: Gautam Coordinator: Ranjan Banerjee Ramdurai

T3A.1: Sticky Choices in T3B.1: Exploring the Dynamics of Unfiltered Sets Trade Show Effectiveness

By A. V. Muthukrishnan By Srinath Gopalakrishna, Professor of (Hong Kong University of Marketing, David and July O’Neal MBA Science and Technology, Professor, (University of Missouri, Clearwater Bay, Kowloon, Columbia), Hong Kong, China), Shrihari Sridhar,(Doctoral Candidate in Luc Wathieu Marketing, University of Missouri, ESMT European School of Columbia) Management and Technology, Schlossplatz ,Berlin, Germany, Gary L. Lilien, Distinguished Research Professor of Management Science, Penn

State University, University Park, PA

T3B.2:Influence Of Personality Traits T3A.2: An evaluation of On Goal Orientation And Performance microblogging as a marketing Of Salespeople- A conceptual Analysis. communication Platform By Binu Markose By Gautam Ramdurai(Ogilvy PhD Research Scholar & Mather Advertising) Dept. of Management Studies Indian Institute of Technology Madras Chennai – 600 036.

Dr. S. Jayachandran Professor (Marketing Management) Dept. of Management Studies Indian

Institute of Technology Madras Chennai

T3B.3: Quality And Quantity-The Case For Multiple Channels

By Ranjan Banerjee, Carlson School of Management), Kersi Antia, Wisconsin School of Business),

Shantanu Dutta, Marshall School of Business

Session T4: T4A: RETAILING T4B: MARKETING GENERAL – II

3:30 pm to 5.00 pm Coordinator: D.Malmarugan Coordinator: V.J. Sivakumar

T4A.1: An Integrative Model T4B.1: The Trend towards Marketing Of Package Size Propensity. ‗Green Energy‘

By Amit K Ghosh By Dr. R. Venkatesh, Faculty Member, Associate Professor IBS, Chennai Cleveland State University

T4A.2 : Factors That Add T4B.2: When two is company, is three a Value At The Supplier- crowd? Customer Interface:A Case Of The Fresh Vegetables And ByProf Rajan Mani, Fruits Industry. IBS,Chennai

By Ms .K .Suma Rao( PES School of Engineering (PESSE), Bangalore.

T4A.3: A Study On Shopping T4B.3: Ambush Marketing:Attack and Styles In Garment Purchase Counter-Attack Strategies” and Comparison of Multibrand & Exclusive Brand Retail By Dr. V.J. Sivakumar, M.Sc., M.B.A., Outlets. Ph.D.

By Prof.D.Malmarugan (Associate Professor Sadar Vallbhbhai Patel Institute of Textiles Management)

M1A.1. Brand Chakras ™-Holistic tool to map consumer behaviour, brand identity, category payoffs and societal trends

Mythili Chandrasekar, Senior VP and Executive Planning Director, JWT India Email: [email protected]

Brand Chakras draws inspiration from the Chakra System in Patanjali‘s Yoga Sutras. Chakras are psycho-spirtual centers of energy based on the nervous system. Each chakra is said to be ―a stage by stage playground of desires‖ that shapes every human being‘s response to life situations.

The seven basic energy centers are at: base of the spine, navel, solar plexus, heart, throat, third eye, crown.

Based on this system, Brand Chakras ™ is constructed on seven over-riding life themes: Survival, Pleasure, Power, Love, Creative Expression, Transcendence, Spirituality.

Each chakra is identified by certain key dimensions. The Brand Chakras ™ toolkit has been designed based on these.

The Brand Chakras ™ toolkit comprises Target Chakra Reading (analyses consumer groups), Brand Chakra Reading (compares brands), Chakra Semantics Reading (in-depth analysis of one brand at a time), Chakra Payoffs Reading (maps consumer attitudes to product categories). Brand Chakras Trend Monitor is a continuous exercise that maps societal changes through the seven chakra themes.

Using Brand Chakras™, studies have been done on: * Target groups like the global Indian, and mothers and children; * Categories like personal technology and education; * Categories-cum-brand analyses in detergents, cars and radio FM, among others; * Consumer relationships with celebrities * The character of cities, how consumers relate to the cities they live in and the role brands can play * As well as societal trend analysis of India today.

Research outputs include: * Dominating charkas that drive that particular target group * Battery of payoffs that most resonate for the particular target group or category * Types of psychographic groups and their ―Chakra Worlds‖

―Chakra Worlds‖ are a construct that describe the target through: Roots: a sense of hidden fears, past issues and influences, and why the person is the way he or she is

Core Emotional Essence: the key themes that drive the person‘s life, and responses to situations, what the person seeks the most Key Strategies: ways in which the person tries to cope, dominant behaviour patterns that brands need to respond to Fruits: what the person hopes to or manages to achieve, and roles brands can play The paper for NASMEI – Great Lakes seminar will demonstrate the Chakra Payoffs Reading Tool through outputs from some of the qualitative studies. Mother India: From Children as Responsibility to Children as Opportunity – a study on SEC A,B mothers and their children (8 to 16 year olds) to examine changing notions of motherhood today. Findings include dominating chakras, battery of payoffs, and three types of mothers and their Chakra Worlds. The Yin Yang of Technology Payoffs – a study among 25 – 35 year old early adopters working in technology companies, which attempted to answer the question what are the deeper payoffs that consumers seek and are getting from technology, both in their personal lives and their work lives. Findings include dominating chakras, battery of payoffs mapped into a model, five types of relationships with technology and Chakra World of the early adopter. The Call for Dronacharya: a study among graduate and post graduate students to elicit what they want from their education providers. Findings include types of students and their Chakra Worlds, battery of payoffs mapped into a model, and what they seek from faculty. An overview of how Brand Chakras can be used to analyse societal trends: some glimpses from Chakra Watch, a seven part newspaper column that looked at India through the seven charkas. For further information: www.brandchakras.com www.chakrawatch.blogspot.com

M1A.2: Enhancing Corporate Value:A Framework For Reviving Weak Brands

Sunil Thomas- College of Business and Economics, California State University Fullerton; Email: [email protected].

Chiranjeev Kohli- College of Business and Economics, California State University Fullerton; Email: [email protected].

Strong brands are a company‘s most valuable assets. However, over time, many brands become weak, resulting in a significant loss of equity and value for the company. Many once famous brands, such as Oldsmobile, PanAm, and Woolworth met untimely deaths. Many others may continue to languish. In today‘s market, new product introductions are both expensive and risky. As such, it is worthwhile to evaluate brands that may be losing ground, and to make a concerted effort to revive them. There is, however, a dearth of studies that focus on this topic. We deconstruct brand equity to investigate the leading causes of brand decline and suggest guidelines to avoid brand demise, and ways to revitalize struggling brands. We reviewed academic literature and trade publications on this topic, examined case studies of brands that died or were revitalized, and conducted in-depth interviews with practitioners who were knowledgeable about these brands. We make a distinction between sudden death and steady decline, and offer insights into assessing the viability of reviving a brand in steady decline, and suggest various approaches that can be used to strengthen these brands.

M1A.3 : The Financial Determinants Affecting the Worth of Brand - An Indian Perspective

Rajdeep Bakshi Faculty Member International School of Business and Media Kolkata, India Email: [email protected]

The paper attempts to focus on the exorbitant prices at which brand transfers have taken place in the Indian markets. The paper also tries to analyze by adopting the procedure of literature review, why companies are interested in procuring brands of others. The review of the literature reflects the fact that brands are tools for the competitive advantage for the company. The key findings of the literature review are the demand for acquiring brand of one company by the other. Brands have financial value leading to the rise intangible component in business. The financial worth of brand has made bankers to consider brands as collaterals. Understanding that brand have financial value the practice of brand valuation began in the late 1980‘s. Presently as per Indian Accounting Standards 26 the financial value of brand can be included in the company‘s balance sheet only if it has been acquired form another company. The primary data collected from 249 respondents form Kolkata have been treated by the technique of factor analysis using the method of Principal component analysis with Varimax method of rotation and Kaiser Normalization. The treatment revealed a set of six factors. The reduced factors explained 70.33 percent of the total variance. To ensure validity of factor analysis the KMO and the Bratlett list of Sphericity was conducted. In was interesting to note that the score of the KMO test is 0.553 and the value of significance for the BLS test is 0.00001 indicating that the factor analysis was able to produce acceptable results. Based on the factors deduced and associated mathematical computation a method is suggested through the simplified expression (A) presented below for the purpose of computation of the value of the brand. Let there be k (k= 1, 2…n) be the number of brands under the brand umbrella. If there is one brand then by restricting the value of k to 1 the value of the brand can be determined using the expression.

M1B.1: Customer Satisfaction With Service Quality With Special Reference To Life Insurance Corporation In Madurai District.

D.MARIA PON REKA Research Scholar & Lecturer Sathyabama University, Chennai -119 E-mail : [email protected]

Insurance is the best form of fortification against risk that has been formulated by man. Since its emergence , insurance has become unavoidable to every aspect of human life from health disorders to building properties, from household articles to multimillion – dollar projects . The insurance industry in India was opened up to private sector participation in the year 2000. Because of the entry of private players in the insurance market , LIC has lost 26% market share to the private players although both , market size and the insurance premium being collected , are on the rise . In 2007, LIC accounted for 74.18% of the total insurance market in India. In view of the increasing competition , this paper attempts to understand the dimensions of service quality , which helps ensuring maximum customer satisfaction , and hence helps LIC to acquire a larger share in the market. The study was done on a stratified random sampling design.

METHODOLOGY The Data This research is based on both primary and secondary data. The questionnaire has been finalized after a pilot study, consisted of 101 sample respondents. The secondary information has been collected from the internet, government agencies, and publications. By using the stratified random sampling technique, the data was collected from 101 sample respondents, residing in and around Madurai district. 22 questions or statements related to service quality dimensions based on past literatures. The respondents were asked to rate each statement on the Likert scale of 1 to 7 (1 = strongly disagree, 7 = strongly agree).

TECHNIQUES OF ANALYSIS Descriptive Statistics The descriptive statistics has been used to find out the mean and standard deviation of each SERVQUAL statement on both perception as well as expectation.

Factor Analysis The purpose of using the factor analysis in this context is to identify and analyse the important factors on the quality of service in the insurance sector as perceived by the insured s of LIC.

FINDINGS & INTERPRETATION

The mean and standard deviation of LIC data revealed that LIC is good at Reliability , Assurance , and Empathy features than at Tangibles , Responsiveness features of the life insurance service.These features are based on the standard SERVQUAL dimensions.

Through factor analysis , the factors identified with new names which influence the quality of service rendered by the LIC in Madurai district are Individualized attention, Performance, Tangibles, Trustworthiness and Courtesy.

M1B.2: Marketing Hospitals By Managing Impressions Of The Indian Stethoscope

Ms. Anagha Shukre: (faculty member - IMS, Ghaziabad). Email: [email protected];

1.Introduction And Need Of Study :

*Impression management is a growing field where in one studies the self-presentational approach of individuals and the organizations. It is a process by which one attempts to control the impressions the others form of them. It has applications in building interpersonal skills, relations and interactions amongst teams and departments within an organization and outside it, as well. Many healthcare services and premier hospitals in India are consumer centric. With the gamut of activities like the introduction of free consultation cards, organizing camps for free check ups and free tests for most common types of diseases, the focus has been on the consumers, creating and enhancing value based services, thereby influencing the consumers and thus managing the impressions the consumers form. These services are often blamed to be even over-treating their patients. However, the focus needs to change now, as it is the choice of the doctors, which determines the flow of traffic to the hospitals. The hospital is known by the doctor and then the hospital gains from it. The services of a hospital too are very strongly determined by how good the doctor is in terms of treating his patients. Also, it has been observed that the doctor‘s advice and suggestions are mostly paid attention to by the consumers. Many convenience goods like chewing gums, toothbrushes, soaps use the ‗doctors‘ recommendations‘ formula to promote themselves. In the healthcare market where the word of mouth is highly predominant over many other factors of the promotion mix, hospitals cannot afford to ignore the impressions the doctors form of such hospitals - their work places.

2.Objectives: To identify factors which a doctor rates for a hospital he chooses to work for, To find out reasons necessary for creating and managing impressions of the doctors who are experts in their fields, which the hospital needs to take care of, To understand how the hospitals can sell themselves better to these medical experts,

3.Research Methodology The study used an exploratory design and was conducted in three stages. In the first stage, existing literature drawn from the domains of marketing and human resources was reviewed. Sources included journals, books, periodicals, newspapers and on line articles. As a part of the second stage, a pilot survey was conducted which included an half hour open ended interview with twenty doctors from across their specialization areas. The interview focused on the objectives listed above. Based on the content analysis and the screening, the first objective resulted into seven factors, out of which four factors were broken down further into sub-items. The four parameters were also ranked using weighted average. The second objective resulted into five factors and the third objective into six major areas. The seven factors include:1The turn over of the patients in the hospital,2Technology/medical aids used 3.Infrastructure 4.Supportive Management 5.Accredition 6.Referral panel/credibility of doctor 7.Self- growth/learning

The four factors along with their sub–items include:

1.Infrastructure: Operation and maintenance of equipments; Punctuality of support staff Durability of materials ;Quality of materials used; Spacing in corridors and doorways; Adequate number of lifts ;General Tidiness/cleanliness; Safety and security of self; Easy access and approach to the hospital; Separate parking lots to doctors; Ready to use library; Associated pharmacy.

2.Referral Panel/credibility of a doctor

Word of mouth from peers and friends;Academic background ;Research papers/ Conferences/seminars attended and conducted;Awards and memberships.

3.Technology/medical aids used

Latest equipments competent with the western world Live chat sessions Tele medicines On line help to patients

4.Accredition Recognition by govt. recognized bodies Affiliation to united nations‘ governing bodies Health summits/exchange programs undertaken by the hospital The no. of expert areas in the hospital Knowledge management support/literature services

M1B.3: Channel Configuration and Value Capture in Real Estate Markets

Kristin rotte University of New South Wales Australian School of Business Email: [email protected]

Murali Chandrashekaran University of New South Wales Australian School of Business Email: [email protected]

This research focuses on the effect of the channel configuration on value outcomes in real estate markets. In particular, we examine the dynamics when the buyer and seller are represented by the same agent, or by individual agents who work for the same real estate company. These ‗dual agency‘ situations, where the same agent (or company) has an interest in both sides of the transaction, occur frequently (over one in four houses in the US are co-brokered within same firm and over one in five houses are listed and sold by same agent). Given the obvious conflict of interest considerations, many policy makers have advocated outlawing this practice and numerous lawsuits have recently dealt with this issue. To assess whether any systematic effects of dual agency occur, we advance, and test using Multiple Listing Service data, an anchoring-and-adjustment model of price convergence in which the real estate agent influences the initial sale price anchor as well as the subsequent adjustment to this anchor that lead to a final sale price. The proposed model that incorporates two sources of heterogeneity: (a) among agents in where they anchor buyers and the extent of anchor adjustment they help generate when formulating a final sale price, and (b) among sellers and buyers, respectively, in the extent to which they approach the sale from ‗above‘ and ‗below‘ the anchor price. Focusing squarely on the potential impact of dual agency on real estate prices, we develop models that trace a house from the original price that is set by the seller to the final sale price of the house. Extending the extant hedonic price perspective, the proposed consumer-based models explicitly incorporate the notion that tensions exist in the process: sellers approach the sale from ‗above‘ the latent value of the house, buyers adopt an initial price anchor with the help of the agent and approach the sale from ‗below‘ this anchor, and agents help ‗converge‘ the two parties on a final sale price. We label this the ABC pricing model, and investigate the impact of dual agency within this framework. We utilize multiple listing service (MLS) data describing home sales in a large US city in the Midwest to address our research objectives. The analysis proceeds in two stages. First, we establish the validity of the ABC model over the extant hedonic price model in understanding the drivers of the asking price set by the seller and the final sale price paid by the buyer. Second, on the foundation of the ABC model and armed with the evidence that the asking price set by the seller captures a significant portion of the ‗latent value‘ of the house (represented by the attributes of the house and location differences), we develop an ‗anchoring-and-adjustment‘ based process model to answer the key question:

Does dual agency help converge the buyer and seller in an unbiased manner or does it harm one or the other party?

We theorize, and demonstrate that in addition to the above-below tension, the price at which the buyer is anchored in the process is fundamentally influenced by the agency representation. Buyers represented by non-dual agents are more likely to anchor around the latent value of the house, while those represented by dual agents appear to be anchored at the higher asking price of the house. The results also reveal another source of asymmetry in the process – while the final sale price paid by buyers represented by non-dual agents evidences a downward adjustment from the initial anchor, the final sale price paid by buyers represented by dual agents sees no significant adjustment from the already higher anchor. The ‗higher anchor-no adjustment‘ ‗double-whammy‘ results in buyers paying more when represented by dual agents as opposed to non-dual agents. We conclude the paper with a discussion of key findings, as well as research and consumer welfare implications.

M2A.1: Decomposing Brands by Usage and Exploring Brand-Usage Networks

Mukesh Bhargava ([email protected]) Kim B. Serota ([email protected]) Oakland University, Rochester, Michigan, USA

The importance of creating and managing brand as assets is well documented in the marketing literature. Brands represent the assets created by marketing investments. Brand health measures capture the efficacy of past investments and aid future plans. The purpose of this paper is to demonstrate that asset value is influenced by the ways in which customers use brands.

Most companies manage more than one brand in a product market space. Some of the brand affiliations are happenstance resulting from mergers and acquisitions (Black and Decker and Dewalt; Ford and Jaguar; Jaguar and Tata Motors). Many times this is a deliberate strategy to consolidate the coverage of various segments of the market (Toyota and Lexus; Walt Disney Pictures and Hong Kong Disneyland). In such situations, usage determines whether the brands complement, substitute, or extend, and simple brand health measures are not sufficient to capture the role of the brand in the portfolio.

Brand usage can be defined in terms of the major task definitions that the brands satisfy. Adapting from the literature on Market Structure Analysis (MSA), we find that knowing brand usage patterns and observing the nature of asymmetry in use can provide insights about the strategic role of one brand given the usage of other (portfolio and competing) brands. In this approach, the basic unit of analysis is brand-usage rather than the brand itself.

Conjoining brands with usage has three important outcomes. First, as George Day, Allan Shocker, and Rajendra Srivastava have asserted, products should be defined by usage; in their MSA work brands are recognized as the most narrowly defined level of product. By marrying brand and usage into a single construct we re-conceptualize MSA in such a way that recognizes categories and brands are interdependent. Second, brand-usage relationships, which we operationalize as networks, draw our attention to the links between brand-usages rather than focusing solely on the brands themselves. The brand-usage links have characteristics that are relevant for brand strategy. Most importantly, the links show where relationships exist and whether each relationship is an extension, substitute, complement, or co-optetion. Finally, the strength of links is a dynamic quality that changes with market forces and consumer behavior; observing the changing patterns of linkage promotes understanding of where future growth opportunities and competitive threats may come from.

Brand-usage situations encompass markets where there is a dominant single use (seen in the extremes of emerging and fully mature categories), as well as multiple uses. Over a period of time, the needs and usages of both individual brands and clusters of brands evolve to multiple dominant patterns. These may manifest as different levels of loyalty to one brand or different combinations of brand purchases satisfying the same or different needs. These two dimensions, types of usage situation and number of brands being used, lead us to develop a typology of brand usage:

Single brand, single usage: In this situation there is no brand switching. Diagnostically, consumers who exhibit this brand-usage pattern have limited needs and no linkages with other brands.

Single brand, multiple usages: In this situation there is no brand switching, but a single brand may be used to meet different needs. Consumers who adopt this pattern confirm the strength and adaptability of the brand; linkages provide information about brand extensions and the ability of the brand to cover multiple needs. Multiple brands, single usage: In this situation consumers use multiple brands to satisfy a specific need. Linkages reflect brand switching and identify the acceptable substitutes. Multiple brands, multiple usages: In this situation consumers can exhibit different patterns of behaviors. These patterns may come from the single brand, multiple usage case or the multiple brands, single usage case. Or they may include simultaneously varying combinations of brand and usage (e.g. Brand A, Usage 1 with Brand B, Usage 2). When the latter is observed the linkages provide evidence of complementarity and co-optetion.

Comparing data from 2004 and 1995 brand-usage structures for the U.S. car rental industry shows that a relatively small proportion of the possible brand-usage linkages actually emerge, that all four situations are present in the market, that brands sharing similar characteristics form substitution clusters, and that changing business patterns, geo-political events, and emerging brand leaders can contribute to changing the overall market structure.

M2A.2 : “Cultural Effect On Managing Brand In India”

Bodhisatta Bhattacharyya IFIM Business School; works in the capacity of Manager at SITAR (A Govt. of India Society)., Bangalore; Email: [email protected] & [email protected]

Dr.Nilanjan Sengupta Professor at IFIM Business School, Email: [email protected]

Dr. Mousumi S. Bhattacharya Professor at IFIM Business School; Email: [email protected]

Brands were originally developed as labels of ownership: name, term, design, and symbol. Broadly a brand name is basic core indicator of the brand, basis for awareness, communication effects and the measurement of sales. Brand management is the application of marketing techniques to a specific product, product line, or brand. It seeks to increase the product's perceived value to the customer and thereby increase brand franchise and equity. An effective brand management results in a combination of increased sales and price. As brands continue to expand into global markets, it becomes important to understand the implications of cultural differences for marketing decisions. The culture is perceived as a combination of values, morals and laws of the society as a whole and it has a tremendous impact on Human Behaviour. The present paper will investigate Brand strategies in emerging markets such as India. The perceptions of local vs global branding strategies with typical Indian examples are also given.The lesson learnt by MNCs in India on various brand failures are also given in the paper. The attitude towards the cultural diversity in India is also a factor behind the success of Brands in India. The adaptability of MNCs thus plays a crucial role in promoting foreign brands in India. A few examples will be discussed in the main paper. Harnessing of local brands for the more effective promotion of foreign brands as well as competing with the existing local brands are also discussed. The role of integration of Brand Management and Corporate Strategy also plays an important role. The corporate image sometimes helps in popularizing brands. Branding Strategy in Indian context comes with the fact that one has to think globally but act locally.Thus the idea of Glocality emerges. The present paper has put an effort in understanding the brand management with the diverse Indian society and the type of the existing economy. The players of various brands have already adopted some kind of strategy. Our effort is to look in to the same.

M2A.3 : Consumer imperfection in observation --- Is it a boon for manufacturers? : The case of automobile sector in India

Tanmay Chattopadhyay (Corresponding author) Marketing Manager, Amararaja Batteries Ltd., Hyderabad &Doctoral Student, Department of Management, Birla Institute of Technology, Mesra Email: [email protected]

Shraddha Shivani, Associate Professor, Department of Management, Birla Institute of Technology,Mesra, Ranchi , Jharkhand Email – [email protected]

Mahesh Krishnan,Sales and Marketing Director,Goodyear India Ltd., Faridabad,Haryana Email: [email protected]

The study explores the relationship between pricing as marketing mix element and brand equity in an environment where there is an uncertainty of brand attributes. The authors explore the case of consumers purchasing multiple time automobiles in India. The authors tests the hypothesis proposed by Swait and his colleagues (1993), which suggested that a product of high brand equity signals high quality when consumers imperfectly observe product attributes and also partially extrapolates the theory of Yoo, Donthu and Lee for this category of consumers. On the basis of exploratory research and stratified sampling techniques, hypothesis was tested for automobiles consumers in India. The challenge of the study was to bridge the gap from reports showing that most of India‘s automobile growth is driven by consumers who are multiple time car buyers and the intuitive reasoning leading us to infer that multiple time car buyers are not expected to be influenced by factors which influence the first time buyers as they are expected to be better aware of the features of the category in question.

Car types were stratified into prestige, volume and economy based on their ex showroom price and survey of respondents conducted through telephone. Statistical tools like Principal Component Analysis and ordinal logistic regression were done. It was found that there are primary and secondary cues affecting brand equity and pricing. Brand equity and perceived quality are impacted by pricing even for multiple time automobile buyers, though intuitively they are expected to be less affected by pricing.

Pricing is a very important element of marketing mix to impact brand equity even for multiple time automobile buyers. Pricing has a direct impact on the perceived quality for the product category. This is an important finding especially for the manufacturers, as in India, consumers are increasingly having disposable income and hence are altering not only their automobiles, but also their household consumer durable goods. We believe that this research would help manufacturers optimally price their products and hence gain maximum mileage on their bottom line.

Effect of interaction of different parameters that are impacted by pricing on brand equity has been studied. This is also one of the first studies to have been made for multiple time buyers of a product category.

M2B.1: Catch-up and Slowdown: Globalization and Market Penetration of New Products

Deepa Chandrasekaran, Lehigh University [[email protected]] Gerard J. Tellis, University of Southern California

Is the World Flat? We examine this in the context of consumer adoption of new products, across several developed and emerging countries. We ask what drives differences in penetration of products across global markets, and are these differences increasing or decreasing over time? We examine the market penetration of 15 products across 32 major developed and developing countries in the period 1950 to 2005, comprising of 7000+ observations. The products include microwave ovens, dishwashers, freezers, dryers and washing machines, which we term as Work Products, as they enable consumers to work more efficiently and effectively; CD players, video cameras, video recorders, MP3 players, DVD players, and digital cameras, which we term as Entertainment Products, as they provide consumers with enjoyment; and cellular phones, personal computers, Broadband and Internet, which we term as Communication Products, since they predominantly facilitate interaction among individuals. We collect data from subscription- based sources (Euromonitor, World Development Indicators Online, Fast Facts Database), archival search, and proprietary industry data. We analyze both the variation in and level of market penetration over time using empirical models. Over a 50-year period, we find that North America, Japan, Scandinavian countries are consistent leaders, especially in the adoption of work and entertainment products. The extent of economic, social and political globalization, and other macro-economic and cultural factors help explain these differences. However, catch-up is occurring, at least for some categories. Specifically, we find that Work products are characterized by high levels of mean penetration and convergence in developed economies, and by low levels of mean penetration and status quo in emerging economies; Entertainment products are characterized by quick saturation in developed economies and leapfrogging in emerging economies; Communication products are characterized by convergence between and among developed and emerging economies. Convergence in wealth and globalization forces contributes to these dissipating differences. These findings have implications for the development, entry and pricing of new products. AREAS: Marketing strategy, Global marketing, New product diffusion

M2B.2: What Makes Born- Globals Innovative?A Customer Relationship Perspective

G.M. Naidu Professor Emeritus University of Wisconsin-Whitewater Email: [email protected]

Kim Daekwan Florida State University Email: [email protected]

Choton Basu Global Business Resource Center University of Wisconsin-Whitewater Email: [email protected]

Tamer S. Cavusgil Georgia State University Email: [email protected]

Born-Globals are a newly emerging form of organization that targets international markets as its primary source of business from their inception. One of the primary features of Born-Globals is their innovativeness. However, innovations in Born-Globals are not feasible without understanding their customers. The current study attempts to make contributions to our understanding of Born-Globals by exploring how Born-Globals‘s customer orientation leads to its innovativeness. Specifically, the study conceptualizes that a Born-Global's customer orientation can be materialized in innovativeness when it fosters environments where the Born- Global can understand its customers better through good quality relationship with customers, technological customer relationship management (CRM) capability, and external customer information management. Our empirical results based on the responses from 154 managers in India and web survey response of 22 useable surveys for a total of 176 observations show that a Born-Global‘s customer orientation is an effective enabler of its innovativeness whose effects are mediated by technological CRM capability and external customer information management. However, although significantly affected by customer orientation, relationship quality with the buyer does not influence innovativeness within the Born-Global according to the results. The results suggest that Born-Globals are poised to maintain their innovativeness more effectively when understanding customers by using CRM technology and managing customer information obtained from external sources and that such environments are successfully cultivated by customer orientation. Keywords: Born-Globals, Customer Orientation, Innovativeness

M2B.3: The Role of Micro-Politics in the Development of New-to-the-Firm Products

Rajesh Sethi, Clarkson University, Potsdam, NY, Email: [email protected]

Zafar Iqbal, Depaul University, Chicago, IL, Email: [email protected]

Anju Sethi, Clarkson University, Potsdam, NY, Email: [email protected]

Many firms hope to develop new products that are novel or unique. Such novel products are sought after because they create opportunities for growth, improve profitability, and provide long-term competitive advantage. As such, in recent years, several researchers in marketing and other areas have attempted to study what facilitates or hinders the development of novel products. However, missing from most studies on novel new products are considerations of political dynamics and the problems these dynamics can create. Yet not all novel products give rise to political dynamics within a firm. When novelty involves greater newness-to-the firm, political dynamics become more salient because new-to-the-firm products often have the potential of disrupting the existing operations and resources under the control of various senior managers. These political dynamics can undermine the effectiveness of the new product and thus hurt the firm‘s interests. This research focuses on the implications of the political dynamics set into motion by new-to-the-firm products. We contend that the development of new-to-the-firm products is often resisted during their review and evaluation. Resistance manifests itself in the form of opposition to the product and creation of obstacles in its approval for further development work. Newness to the firm can be technology newness (e.g., when the project involves new technologies, engineering and design skills, and production processes) or market newness (e.g., when the product targets new markets and requires new sales and customer service infrastructure). As such, we examine the effect of both technology and market newness on resistance encountered during review and evaluation. Further, we argue that when a product development team sees emerging resistance to its product and expects that the product may not be approved or may be approved only if the team agrees to make many changes to it, the team tries to influence events in its favor. We examine the strategies used by the team in such circumstances to get the product approved. These strategies tend to have a political undertone. To identify these strategies and to understand their effect, we draw on the theory of micro-political behaviors that is useful in explaining managerial behaviors in firms, particularly in situations where resources are scarce and there is conflict and competition for those scarce resources. The strategies used by managers that are relevant here are: (1) coalition-building, i.e., building support for and consensus around the product, (2) project framing, i.e., presenting the product such that it appears to be linked to the existing products, strategies, and competitive thrusts of the business unit, (3) compromising, i.e., modifying the product as a concession to get it approved, and (4) hiding, i.e., secret development of the new product. While sometimes new products need to be refined to improve them, the concern is that in the face of resistance, particularly for new-to-the-firm products, the team can resort to making

compromises to let the product see the light of day. However, it is not known how serious the consequences of such compromises are. For example, do such compromises adversely affect the market performance of the product? As such, this study also examines how product compromise influences the product‘s market performance. Currently, most firms develop new products using the Stage-Gate process (a registered trademark of Product Development Institute Inc.) – which is a methodology for improving and controlling new product development (Cooper 2001; 1998). The Stage-Gate process prescribes the use of several sequential gate review meetings to control and direct new product development. These gate reviews are conducted by a committee of senior managers from different functional areas in the firm. If there is resistance to new-to-the-firm products, it mainly manifests at gate review meetings. Similarly, micro-political strategies used by a product development team are in anticipation of or in response to resistance encountered at gate reviews. Thus, the Stage-Gate process is the context in which we examine the research questions of interest. Our results based on a survey of 114 product development projects suggest that both market and technology newness enhance resistance to the product at gate reviews. We also find that coalition building minimizes resistance to products with market newness. On the other hand, framing minimizes resistance to products with technology newness, but increases resistance to market newness. Project resistance, in turn, leads to increased compromise by the team. Hidden product development work helps minimize compromise in response to resistance at the gates. Finally, compromise adversely affects the product‘s market performance.

M3A.1: Effects Of Customer Trust On Purchase Intentions: Customer-Brand Relationship

Joffi Thomas - IIM Kozhikode; Email: [email protected];

Ashok Pratap Arora - MDI Gurgaon ;and

G. Shainesh - IIM Bangalore

Trust is a key feature of any relationship and it indicates the strength of a relationship. We examined the effects of customer trust and perceived value on purchase intentions of potential customers to better understand customer -brand relationships. The research contributes to theory by developing and testing a research model, which addressed mainly the following five gaps in research on trust in customer relationships. (i) There are only a few empirical studies employing trust to understand customer relationships in the consumer goods context (Chaudhuri and Holbrook 2001; Delgado- Ballester and Munuera-Aleman 2001, 2003). As brands are relationship partners in the consumer goods context (Aggarwal 2004; Fournier 1998), we develop a model to examine customer - brand relationships in consumer goods context. (ii) There are three entities in a customer relationship: (i) the firm which provides the products and services (corporate brand) (ii) the product or service the firm offers (product brand), and (iii) the sales and service personnel from the firm or its intermediaries which directly interacts with the customer in delivering the product or service (customer interface) (Crossby 1987; Hennig-Thurau and Hansen 2000). Customer evaluates the trustworthiness of these three entities resulting in the development of trust in the three facets; corporate brand trust, product brand trust and customer interface trust. As the three facets have not so far been considered in modeling customer relationships their differential effects on relationship outcomes have not been examined so far in literature. We examine the differential effects of three trust facets on value and purchase intentions for potential customers. (iii)Integrative interdisciplinary review of trust research (Mayer et al. 1995 and McKnight et al. 2002) has identified the three generic dimensions of trustworthiness evaluations as ability, benevolence and integrity. These three dimensions have so far not been explicitly considered in marketing. The study modeled the effects of trustworthiness evaluation on the three trust facets in the relationship. (iv) We examined the relationship among trust facets in the proposed research model. As the three trust facets has not been modeled in customer relationship models, the relationships among trust facets have not been examined so far in literature. (v) The partially mediating role of perceived value in customer relationships, which was first examined by Sirdeshmukh et al. 2002, was re-examined in the research. As the three generic trustworthiness dimensions and the three trust facets were not so far examined in literature the measurement scales for the three dimensions for each of the three trust facets were developed afresh. The scales for trust in three facets, value and purchase intentions were adapted from existing scales. The reliability and validity of the scales were ensured through

qualitative (literature review, in-depth interviews, content analysis, pre-test with experts) and quantitative methods (exploratory factor analysis, reliability analysis). Data was collected from the potential customers of four selected closely competing passenger car brands in the same customer segment. The population was divided into five geographical clusters based on the sales data of the four brands and in consultation with marketing and brand managers in the industry. Sample was selected across five clusters; four in Delhi city and one in Gurgaon city in India. The unit of analysis was an evaluation of a brand by a potential customer. The three trust facets of corporate brand, product brand and customer interface (dealer) were evaluated separately by a respondent for each of the four brands in the study. The proposed model was tested using a dataset which included one hundred and seventy seven brand evaluations of forty eight potential customers on four competing brands. The model was examined using path analysis technique. The research was successful in measuring the constructs and validating the proposed model. The findings of the research, organized around the three sets of relationships examined in the research model, are given below. (i) Differential effects of the three trust facets on word of mouth communications: Customer perceived value fully mediated the effect of corporate brand trust on purchase intentions. It partially mediated the effect of product brand trust on purchase intentions. The magnitude of the direct and indirect effect of product brand trust was higher than the other effects. Thus, product brand trust is established as the primary trust facet for potential customers. Customer interface trust had no significant influence on purchase intentions or on customer perceived value. The finding has implication to resource allocation among the three trust facets in establishing customer relationships. (ii) Relationship among trust facets: Corporate brand trust was found to have a positive influence on customer interface trust. No other hypothesized reciprocal effects among the trust facets were significant. The findings revealed the multiple routes through which corporate brand trust influenced relationship outcomes. (iii)Effects of trustworthiness evaluations on the three trust facets: The four trustworthiness evaluation dimensions of corporate brand ability, product brand integrity, product brand benevolence and corporate brand benevolence were found to significantly influence trust facets. This understanding may help in profiling brands and designing programs to develop trust in a facet. Product brand integrity is conceptualized in the study for the first time and its significant influence on product brand trust highlights its importance in customer trustworthiness evaluation. The adoption of relationship marketing paradigm in marketing and its application in practice calls for development of tools to monitor and manage customer relationship. The research contributes to the advancement in trust research and provides a tool for practitioners to monitor and manage customer relationships.

M3A.2 Standardization of Scale on Brand Character

Dr. Smriti Yash Verma Assistant Professor, Institute of Management Technology, Nagpur. Email: [email protected]

Dr. Santosh Dhar Professor, Institute of Management, Nirma University of Science &Technology, Ahmedabad

Key Words: Brand Character, Scale, Brand Management In the present era wherein life cycles have shortened and products have to acquire and encash markets at a faster pace, building strong brands is a mandate for innovation in organizations. Also with brands moving beyond the physical form and name taxonomy, building persona and character of the brand are the success mantras. A brand strategy can be critical to the success of an innovation, particularly in the long term. There are times when a firm literally needs to brand an innovation or lose it. Without a successful branding strategy, an innovation can be short-lived - diffusing into a confused marketplace with its impact dissipated - or become another forgotten internal initiative. In such cases, branding can make all the difference. Branding, it should be emphasized, does not mean simply putting a name and logo on an innovation. Rather, it means making the brand an integral part of a coherent strategy, supported by actively managed and adequately funded brand-building programs. At the same time, not all innovations merit such a program and over-branding can pose business risks (Aaker, 2007). The brand was always referred to as a series of tactics and never like strategy (Davis and Dunn, 2002). The challenge today is to create a strong and distinctive image (Kohli and Thakor, 1997). Kapferer (1997) mentioned that the brand is a sign therefore, external whose function is to disclose the hidden qualities of the product which are inaccessible through contact. Thus, the brand serves not only to identify a product to distinguish it from the competition but also perform an economic function in the mind of the consumer. The value of the brand comes from its ability to gain an exclusive, positive and prominent meaning in the minds of a large number of consumers. Therefore, branding and brand building should focus on developing brand value. Building a brand and keeping it alive does not happen automatically or in one colossal effort. Branding is an ongoing, conscious and cumulative effort to cultivate the unique message that captures the target market. The challenge is to recognize that the "target market" is rarely a fixed point. In fact, most markets are in a constant state of flux: shifting, expanding, shrinking and changing in character. To stay afloat in these turbulent waters, your company's brand must be able to adapt to shifts in the marketplace ( Donato, 1999). One way to assess brand imagery is to adopt the personification metaphor: brand as a person. A brand can be described as an innovative, exciting, or sincere person (Aaker 1997; Batra et al, 1993). Personification has also been used to describe employees‘ views about organizations (Slaughter et al, 2004), labeled corporate personality (Furnham and Gunter, 1993) or character (Goffee and Jones, 1998). However, most empirical work on the personification of brands has been applied to only one stakeholder group, typically consumers or employees. In the marketing context, the approach has been applied mainly to product brands (Chun and Davies, 2006). The goal of an organization is divergence. To diverge in branding is to create a new product category and then to become the

first brand within that new category. Ries and Ries (2005) contend that organizations should strive for divergence and avoid convergence in order to ensure business survival. Brand character can be defined as a description of the virtual corporate personality and its attributes, used to express the company values, stance and attitude (Moore,1999) . Brand character can also be defined as the values and traits that customers come to associate with a brand and are not merely performance traits. A brand's character is created over time. It is a summation of the brand's values, marketing communication and performance, which either confirms or contradicts the brand in the customer's minds. Positive brand character has an impact on desired customer behavior. Therefore, the brand character should be upholding, built upon beliefs of the brand shared by all. It must be consistent across all relevant forms of communication. Brand needs to be designed to appeal to primary customer base. Its attributes need to be meaningful to them, and the company needs to reflect these traits in every way. It is especially important not to contradict the intended brand character across various pieces of collateral, or through the actions of the firm. For a business strategy to succeed, creative work will increasingly need to build brand characters which both reflect the specific nature of a product and incorporate a set of values, which are strong and simple enough to cope with more diverse corporate strategies like geographical or product expansion (Filippo, 1995).

The present study is an attempt to develop a scale to measure the brand character. This will help organizations especially service organizations wherein tangibility of the offering is less making measurements difficult. This measurement tool when used can reap results which shall help organizations design strategy for corporate brief, internal and external communication and designing brand strategies and tactics in the long run. The study was carried out with a multi- stage multi-variate randomized design to understand the perceptions of users about the character of brands. The standard procedure was followed for developing and then standardizing these scales. The scale development was done in five stages.

M3A3: What Makes Brands Elastic? The Influence of Brand Concept and Styles of Thinking on Brand Extension Evaluation

Alokparna(Sonia) Basu Monga, University of South Carolina, Email: [email protected]

Deborah Roedder John, University of Minnesota, Email: [email protected]

Brand extensions are one of the most popular strategies for leveraging brand equity. Many of the successful new product introductions each year are brand extensions, such as Apple‘s iPhone, Godiva coffee, and Jeep Strollers. Brand extension success depends heavily on extension fit (Volckner and Sattler 2006). Consumers tend to respond more favorably to extensions that fit with their perceptions of the parent brand. However, it is also true that many brands launch successful extensions that do not follow these rules. These brands are described as being more ―elastic‖ because they are able to launch brand extensions into distant product categories, sharing few attributes or features in common with existing products, and appealing to different consumer markets. For example, Ralph Lauren markets a diverse set of offerings under its brand, including sunglasses, paint, dog leashes, and restaurants. The prevailing explanation is that the nature of the brand concept associated with the parent brand (e.g., prestige versus functional; Park, Milberg, and Lawson 1991) determines how elastic brands are. Brands positioned on the basis of prestige, such as Rolex, are more elastic and can successfully expand into a variety of product categories, such as clothing and accessories. In contrast, brands positioned on functional attributes, such as Timex (reliability), are less elastic and are more successful if they extend to offerings that conform to the functional nature of the brand. However, researchers recently report that consumers can influence the elasticity of a brand by the style of thinking they employ when evaluating brand extensions (Monga and John 2007). Consumers might use an analytic style of thinking, where they focus on the specific attributes or products usually associated with the parent brand and try to match these features with those of the extension. Or, consumers might use a more holistic approach, where they seek out ways to relate the extension to the parent brand, regardless of whether it conforms to the same attribute or product category profile as the parent brand. When consumers use a holistic style of thinking, they are able to perceive higher degrees of brand extension fit and are more accepting of brand extensions even if they are distant from the parent brand. In this article, we propose that brand elasticity is jointly determined by characteristics of the parent brand (prestige versus functional) and consumer styles of thinking. For prestige brands, we reason that consumer style of thinking has little, if any, effect on brand elasticity. Because these brands have abstract concepts that can cover a wide variety of product categories, even analytic thinkers have an accessible way of relating the parent brand and extension. Holistic thinking provides little or no advantage over analytic thinking. However, for functional brands, we expect consumer styles of thinking to be of utmost importance. Because these brands have narrow concepts that are not readily transferable to distant extensions, analytic thinkers are unable to connect the parent brand and extension. Holistic thinkers, on the other hand, have an

advantage in the sense that they are better able to relate the extension to the parent brand, thereby making the extension a better fit to the parent brand and more acceptable. We explore these themes in four studies. In the first two studies, we find support for our predictions about the interaction of parent brand characteristics and consumer styles of thinking. Specifically, we find that a consumer‘s style of thinking can overcome the difficulties that functional brands often experience in extending their brands into new categories. Consumers who think holistically evaluate extensions of functional brands more favorably than do analytic thinkers. For prestige brands, both analytic and holistic thinkers perceive the brands to be quite elastic, evaluating brand extensions equally favorably. Thus, our findings identify analytic thinkers as the roadblock for functional brands wanting to extend into new and different product categories. In two subsequent studies, we turn our attention to managerial strategies for reducing analytic thinking among consumers in order to increase evaluations of functional brand extensions. We find that brand architecture and communication strategies can increase the elasticity of functional brands for consumers who are analytic thinkers. In particular, distant extensions are evaluated as favorably by analytic thinkers as they are by holistic thinkers if managers use sub-brand architecture and elaborative communication strategies.

M3B.1: Creating Value through Consumer Ethnography in New Product Development: Case Study Analyses

Dr Aruna Shekar School of Engineering and Advanced Technology Massey University Email: [email protected]

Dr Rainer Seidel University of Auckland. Auckland, New Zealand

New product development (NPD) requires market research methods that provide vivid information about the end-users in order to guide and direct the development. Focus group methods have been very popular, but are of value in specific types and areas of new product development. There is a need to use a combination of techniques and participatory approaches to get useful information for NPD, rather than depending heavily on consumer opinions or surveys only. Focus groups are widely used, have face validity, are quick and easy to use, and gather useful insights and ideas for new products. One of the criticisms of focus groups and some traditional methods is that they lack correlation between what people say and what they do (Patton, 2002). Like any research method, focus groups need to be used appropriately and effectively to meet certain objectives well. Focus groups used for the purpose of idea generation in NPD, rather than for market verification, are effective. These can be complemented by observations in-the-field, so that behaviours discussed in the focus groups can then be experienced first hand. Focus groups and in-depth interviews are often used before quantitative consumer surveys or conjoint analysis in NPD. At one time, focus groups were considered to be one of the less costly market research methods. Today, however, alternate methods (e.g. ethnography, lead user method, consumer profiling, task analysis, contextual enquiry, diary method and voice of customer methods) can offer equally rich, and useful information at an overall lower cost. Ethnography is defined as ―a descriptive, qualitative market research methodology for studying the customer in relation to his or her environment...‖ (Belliveau, Griffin and Somermeyer, 2002). It helps identify latent needs, trends in lifestyles and product usage that have implication on product design. Properly used ethnographic techniques yield excellent insights for product design. The main point is the value of getting in-depth insight into user-product interactions and usage context. When exploring product opportunities one can uncover important consumer attitudes, experiences and needs that may point to emerging trends. These help generate ideas and improve existing product designs. To develop a successful new product, it is critical to visualize a consumer for the product. Visualizing the consumer, helps to provide an intuitive understanding of what he or she does, what he or she hopes for, and how a new product could meaningfully fit into his or her life (Wansink, 2000). They are memorable in a way that numbers are not. Consumers these days are more demanding, have greater choice and have desires for products that relate to their lifestyles. Studying consumers closely provide opportunities for new products that can address their needs, wants and desires.

Qualitative methods are less about trying to prove something than they are about attempting to understand something. Quantitative and qualitative methods are often used in the same NPD study. By outlining the demographics and psychographics of such a user, a typical profile can be developed of the appropriate market segment. Consumer profiling and ethnography will be elaborated in the presentation, through case study examples. What do customers value? To simply satisfy a customer is not good enough in a highly competitive marketplace. One needs to go beyond a mere offering of a functional product. Desirability and a ‗match‘ with the user‘s lifestyle can help differentiate the product. For a customer to desire your product what is needed? If you ask a customer will they tell you all? Answers to these questions and more are explored. One example is the development of new crutches, for which we provided diaries to users for a week to note down their likes/dislikes, their problems as they experienced them (along with details such as: time, place, task to be done etc.), and also observed, took photos and videotaped users while using crutches in their natural environment. We gathered valuable information including the different types of users and their requirements; and some of the current problems with crutches for youth such as, wanting to fold it to store it in theatres or classrooms, non-slip and noise-free base and problems on gravel. The case studies further explain and illustrate how user profiles and ethnographic methods can unveil opportunities for new product ideas. The findings can sometimes challenge initial assumptions about product features, the vivid results can assist with stakeholder ‗buy-in‘ to appreciate the benefits of the results over the cost of conducting the research. Through the supervision of several recent projects, the author was able to extract valuable lessons and advantages of conducting ethnographic research – such as observations of user-product interactions that otherwise may have been missed or seen as irrelevant by respondents. The presentation concludes with managerial implications on adopting these practical methods for better design and development of new products. References: Belliveau, P., Griffin, A, & Somermeyer, S. (2002). The PDMA toolbook for new product development. New York, U.S.A.: John Wiley & Sons Inc. Patton, M. Q. (2002). Qualitative Research and Evaluation Methods (3rd Edition). Thousand Oaks, California, U.S.A.: Sage Publications, Inc. Wansink, B. (2000, Summer). New techniques to generate key marketing insights. Marketing Research, 28–36.

M3B.2 A Study on Customer Co-Creation in Print Media

Madhavi Garikaparthi- Professor of Marketing, ICFAI Business School, Mumbai.- Email: [email protected] or [email protected]

Prema Ramachandran- Professor of HR & Soft Skills, ICFAI Business School, Mumbai. Email: [email protected]

Introduction: Co-creation refers to creativity where more than one person is involved in conceptualization and/ or development of activity or plan. Customer co-creation is a concept where the offering is co-created by the firm and customer. This is increasing due to evolution of industry and increasing customer awareness. With increasing awareness customers are showing interest in creating or giving inputs for creating products of their interest. Many industries are successfully using this concept. Print Media that is also growing tremendously is now showing interest in involving customer for delivering better value. Globally India has second highest growth after China. Being cyclically sensitive industry, media grows faster when the economy is expanding. Print Media Industry: Indian economy is at present growing significantly and even media industry is currently going through changing customer profile and interests. Customer has started seeking knowledge, not just information. A quick review of various news channels and changes in newspapers show us the changing interests of customers. Print media that was majorly product-centric (or news centric) today focuses on customer more and is striving to include customer in every aspect of value delivery. Indian print media structure is highly fragmented with more concentrated power regional domination. Only two Indian Newspapers ‗ Times of India‘ and ‗Dainik Jagaran‘ are amongst the world‘s top 20 newspaper by circulation. The industry primarily comprises of newspaper and magazine publishing followed by book publishing which is yet to grow to a substantial size. As per a PWC report, this industry is expected to grow from Rs. 128Bn in 2006 to Rs.232Bn by 2011. That would be a CGAR of 12.6%. This growth rate is also attracting a lot of foreign investments. There are approximately 1900 news publications for a circulation figure of 220m only. This also provides immense opportunities for growth in – tapping the reading population, building pan India presence and leveraging fragmented market.

Objectives: To understand the growing Print media industry. To identify, implement and analyze the concept of customer co-creation in print media.

Methodology: The study was conducted on DNA (daily News and Analysis) an English daily newspaper that is owned by Diligent Media Corporation, a joint venture between Dainik Bhaskar Group and Essel Group. The Newspaper was launched on July 30th 2005. The study included a (i)Pre-launch survey and (ii) Ongoing customer co-creation efforts which are discussed briefly below.

Pre-launch Survey: Bhaskar Group though being in industry for long time and knowing the readers too well, did not want to take the risk with highly captivated and critical market with its launch of DNA newspaper. In order to capture customer attention careful strategy planning,

execution was necessary, as a part of which various marketing and customer co-creation activities were planned. The survey was conducted throughout Mumbai, covering 11 lakh households. The main objective here was – getting customer insight and to create marketing differentiation. The pre-launch activities were executed in four phases – Market assessment; Questionnaire and survey design; Analysis and design; and commencement coupons and vendor coupons. In the entire prelaunch activities where customers were involved the company used the punch line – ‗DNA -The Newspaper You Are Creating‘, conveying people of the importance of their feedback and level of reader participation in designing process. Ongoing Efforts: These are regular feedback channels and efforts taken by the organization to be in touch with the customer requirement and accordingly modify the newspaper. These included – ongoing calls to subscribers; feedback collection through vendors; and an Interactive portal. Findings: Outcome of the pre-launch survey included – 79% of respondents raised their concern over issues in Mumbai; 78% of respondents wanted their paper to take a bold stand on issues; 64% of women respondents are uncomfortable with too much glamour; 70% of respondents wanted their paper to have something for the entire family; 70% of respondents would like their paper to carry lesser ads and more coverage on sports. Based on the study DNA was introduced and in the initial offer pamphlet, DNA announced introductory offer of Rs. 2 per day (against the cover price of Rs. 4) and gift worth Rs. 30 for DNA founder-partners (i.e., customers). To integrate the feedback of customer about contents of newspaper, DNA came up with Mumbai specific supplements like West Coast. It came up with variety of supplements to satisfy needs of all the member of family like Me, Kids Yo, After Hrs and DNA Money. It continues to come out with different changes in the newspaper as per the feedback collected regularly from customers. As a result of Co-Creation activities, DNA has increased circulation by 40.33% to 4.21 Lakhs as on 9th March 07, its circulation following the launch in 2005 was 3 Lakhs. The current readership of DNA is around 6.8Lakhs based on the Indian Readership Survey conducted in April 2008. Despite being one of the newest player in the industry DNA is ranked as 8th among the top ten English dailies in India and is the second most read in Mumbai. Future Trends: With the help of advance in Technology, number of way of interacting with customer will increase and cost of interaction will decrease. New Technologies like Virtual Reality, Artificial Intelligence, VLSI Technology and other easy and fast manufacturing technologies will take Co-Creation affordable and Efficient. The reach of Internet will also assure that customers are provided with the easy platform of interaction with company. However, it is important for the company to keep up its customer co-creation activities to maintain the edge it created over competitors.

M3B.3. Appropriateness and Appropriability of Marketing Innovations

Gopalkrishnan R. Iyer, Ph.D. Florida Atlantic University Email: [email protected]

R. Krishnan, Ph.D. Professor of Marketing University Of Miami Email: [email protected]

Arun Sharma, Ph.D. University Of Miami Email: [email protected]

The opportunities presented by emerging markets in Asia as well as Eastern and Central Europe are quite appealing for Western firms attempting to leverage their competitive capabilities and innovations in these markets. In the same vein, companies from emerging markets are now entering developed markets. However, we contend that most firms don‘t compete effectively in global markets. The relative failures of these firms can be explained by their inability to understand and react to the distinct market characteristics, including marketing institutions and consumer preferences. In going from developed markets to developing markets, western firms have been more interested in adapting existing products to these markets and thereby appealing to small market segments. Interestingly, companies from developing markets follow a similar path: they appeal to niche market segments using their current low-cost products. A majority of these companies do not pursue a strategy of innovation from ground-up, specifically targeting the countries of entry.

We contend that emerging markets call for a distinctly different strategy of innovation and new product development as compared to established Western markets. In contrast to developed Western markets, emerging markets are distinctly different in the form and prevalence of market institutions that impinge on the new product development process as well as the success of new products. Such institutional factors affect not only the appropriateness of the innovation (i.e., the extent to which there is a high degree of fit between the innovation and the environment) as well as the appropriability of the innovation (i.e., the extent to which the innovation can yield commercial profits to the firm developing the innovation).

On the flip side, the primary experience of companies from emerging markets has been in previously protected markets. Such experience is of little relevance when dealing in the different institutional environments presented by Western markets. Therefore, emerging market companies looking for ways to better compete in global markets need to radically rethink their strategy.

Our research focuses on the characteristics of these markets that affect appropriateness and appropriability of innovations. We will present a conceptual framework and identify the distinct strategic drivers of innovation for competing in emerging and developed markets. Our research shows that these markets call for radically different strategies of new product development and commercialization.

M4A.1: An Empirical Analysis of Recommender Systems and Market Diversity

Daniel Fleder and Kartik Hosanagar Operations & Information Management The Wharton School, University of Pennsylvania Email: {dfleder, kartikh}@wharton.upenn.edu

Media has historically been a "blockbuster" industry, with sales concentrating among a small number of hits. In recent years, such concentration has begun to decrease: a large percent of sales in online markets now come from niche goods. This trend has been dubbed the "long tail," referring to sales distributions with significant mass beyond the top products. Researchers have proposed frameworks for explaining what factors contribute to the long tail. On the supply side, firms offer more products than before. Online firms stock more products because of lower inventory cost and the ability to pool demand across geography. On the demand side, consumers have new tools -- search engines and recommender systems -- for sorting through the myriad choices. However, there have been few empirical studies examining whether and how the supply and demand factors contribute. In recent work (Fleder & Hosanagar 2007), it is even questioned how much recommender systems contribute to the long tail at all.

This paper investigates how recommender systems, a demand side driver, contribute to the diversity in online markets. Specifically, we examine the effects of recommender systems on products and consumers. At the product level, how do recommender systems affect sales diversity? At the consumer level, do recommender systems create fragmentation among users? Recommenders give consumers a new means to filter content and focus on their interests. Researchers have predicted that such filtering will undesirably fragment consumers. In contrast, others have argued that recommenders have homogenizing effects because they share information among users. The question has implications for the use of broad versus narrow targeted marketing policies and also has broader policy implications.

We use a novel dataset provided by a firm that operates a recommendation service that helps users discover new music. Users install a free software plugin for the popular Apple iTunes music player. When a user listens to music in iTunes, the software recommends additional songs the user can sample and purchase. The dataset records pre and post recommender purchase behavior. Our analysis reveals that recommenders can contribute towards an increase in sales volume and diversity. The result of increase in diversity is interestingly not at odds with prior theoretical work that suggests that recommenders can decrease diversity. We provide several explanations why that is the case. In terms of consumer fragmentation, we show that users are becoming more similar. They have more purchases in common and appear closer to one another in a consumer purchase network. The study helps reconcile the opposing conjectures in the literature on the impact of recommenders on market diversity. From a methods perspective, the study delves into several interesting questions related to network data. These questions tied to selection biases and attrition and our proposed solutions will help generate interesting discussion at the conference.

M4A.2: An Investigation Into The Impact Of Information Loading On Purchase Behaviour

Mathew Parackal Department of Marketing, University of Otago, New Zealand Email: [email protected]

Background Advertising is a million dollar industry. The competition is not just between media (TV versus print) but also within media (print versus print). One way media companies strategise to take control over the client‘s advertising dollar is to lock them into long term contracts. Once signed up, little is done by the client to find out the effectiveness of the campaign, and consequently the media company is not under pressure to produce effectiveness measurements. The irony is that while media companies undertake regular marketing research to measure reader and viewership, similar enthusiasm to measure effectiveness is not always forthcoming. Making advertisement decisions based on media coverage blatantly assumes that information loading translates into achieving the campaign objective, be it purchase behaviour or market share. This paper reports a study designed to test this assumption. In the following sections the methodology employed and the results obtained will be discussed.

Research hypothesis To test the above assumption two separate types of information loading were tested. In the first, individuals self-loaded information (Self-loaded) and in the second, information was loaded on to individuals (Loaded on). A third treatment with no information loading provided the control for the experiment (Control). Future purchase probability data, a proxy measure of purchase behaviour used in such experimental studies, was collected after respondents received the experimental conditioning. The study set out to test the following hypothesis: H1: The proportion of sample that would purchase the product would be different in the three treatment groups

Methodology This study was carried out over the Internet primarily to facilitate the two types of information loading. Self-loading of information was facilitated through an interface with a search engine. Respondents assigned to this treatment typed in key words relating to information they wanted to view. The second type of information loading was facilitated through an interface that organised information as titles on a menu. Respondents assigned to this treatment used their mouse to click on the titles to view information. After respondents completed viewing the information they were asked to indicate their probability to purchase the test product for two time-horizons, six and twelve months. Respondents assigned to the control treatment indicated their probability to purchase the product without viewing any information. Probability to purchase was collected on an eleven-point probabilistic scale. The mean produced on this scale was interpreted as the proportion of the sample that would carry out the behaviour in question. The test product used in this study was a WAP-capable mobile phone that was new in the market at the time of the study. The reason for using a new product was to encourage search behaviour among respondents. The sample for the study was produced by surveying 3000 individuals randomly selected from the New Zealand electoral roll. Respondents were contacted by their postal address with a request to participate in a Web-based survey. The letter provided a login name and access code that respondents used to access the survey site. After sending out two reminder letters the survey produced 403 responses. Response rate weighted by the percentage of households with Internet access in New Zealand at the time of the survey was 35%.

Results

As the sample was from the general population it included individuals who owned and did not own mobile phones. They were identified using a question on mobile phone ownership. Of the 403 respondents in the sample, 308 (77%) indicated they owned a mobile phone, 92 (23%) indicated otherwise, and three did not answer the question. The above hypothesis was tested using the data supplied by the mobile phone users. There were 14 respondents who abandoned the survey prior to the WAP- capable mobile phone question, leaving the usable responses for the study at 294. The respondents were randomly assigned to the three treatment groups. The sizes of the groups were as follows: ―Self-loading‖ = 85; ―Loaded on to individuals‖ = 106 and ―Control‖ = 103. The mean or proportion of the six-month time horizon for ―Self-loading‖ was 0.17, ― Loaded on to individuals‖ was 0.16, and ―Control‖ was 0.22. The proportion of the twelve-month time horizon for the two treatment groups was the same at 0.27 and for ―Control‖ was 0.33. The proportions progressively increased over the two time horizons in all the treatment groups, which is typical of innovations. ANOVA tests were executed to investigate whether the means obtained in the treatments were statistically different. For the six-month time horizon, F statistic produced was 1.51 with an associated p value of 0.22 and for the twelve-month time horizon, F statistic was 0.96 with an associated p value of 0.38. The evidence suggests that neither of the information loading types had influence any greater than observed in the control treatment for the stated plan to purchase the test product.

Conclusion This study showed that information loading did not affect purchase plans. Therefore, media coverage may be used when advertising decisions are made for the first time. All subsequent decisions must be based on the market information. Following the sigmoid or S-curve of advertising may be useful. As per this theory, the amount of advertising needs to be heavy at the start to inform innovators of the product. Once innovators become adopters they take on the task of communication, after which the amount of advertising could be gradually reduced. To use the S-curve of advertising one needs to monitor the number of innovators and their adoption rate for the product. Marketing research may be used for this purpose that not only produce information about innovators and their behaviour but also provide current market information to make reliable marketing decisions.

M4A.3.Validation of Consumer Behavior Measures: A Comparison of Alternative Approaches

Srinivas Durvasula;Professor and Edward A. Brennan Chair in Marketing Marquette University; Email: [email protected]

Subhash Sharma;James F. Kane Professor of Business University of South Carolina; Email: [email protected]

Introduction and Study Purpose The key objective of this paper is to compare alternative approaches for examining cross-group validity of measures used in consumer behavior. Developing and validating measures of consumer behavior constructs is an important stream of research in marketing. Most measures are typically developed and validated initially in one country only, such as the United States, and then applied in other countries after establishing the cross-national properties of those measures. Typically, the procedure involves validation of the measure followed by examining mean differences on the measure between countries or between demographic groups within a country. Without proper validation of measures, we would never know whether the observed differences are due to true differences between groups on the underlying construct or due to measurement artifacts. Hence, establishing measure validity is an important first step in theory testing. An important question then is to find out how to validate measures of underlying constructs? The answer depends on what measurement theory is used for scale validation. In classical test theory (CTT), scale validation often involves application of covariance structure analysis. The scale dimensionality and reliability are first assessed using separate confirmatory factor analyses within each group. If the results are supportive, then, data from various groups are analyzed simultaneously to check whether the scales exhibit equality of factor loadings and equality of intercepts in all of the groups prior to examining group differences. Even though CTT, which is based on the works of Spearman (1904), is the predominant measurement paradigm in marketing, it has some shortcomings that have been well documented (Bond and Fox 2001; Fox and Jones 1998). For example, CTT assumes a linear model, where individual items of a multi- item measure are linearly related to the construct score and measurement error (Xi = i + i +i). This assumption is not empirically tested; hence the formula is simply a tautology. Item response theory of measurement (IRT), on the other hand, makes it possible to empirically test the form of relationship between individual scale items and the construct score. Proponents of IRT models argue for these models because they provide estimates of both item and subject parameters on a common scale, something that is not possible to obtain in CTT. This property is helpful during scale purification. For example, by comparing the relative locations of item and person estimates on a common scale, we would be able to determine whether to delete any items, add new items, or whether the existing items of the measure are sufficient and provide a useful continuum for all subjects. Among the IRT models, the Rasch model has been extensively applied in educational and psychological measurement. If a measure meets the assumptions of the Rasch model, such instrument is said to be uni-dimensional with strong psychometric properties (Fisher 1974). Considering the various positive features of the Rasch model, at the

least, it qualifies for being adopted as a parallel measurement paradigm in marketing. In this paper we assess the applicability of Rasch model as an alternative to CTT based techniques such as confirmatory factor analysis. While IRT models are beginning to find application in marketing (DeJong, Steenkamp, and Fox 2007), they are not yet as popular as CTT based techniques because of the need to have larger sample sizes, the difficulty of finding statistical software, and the complicatedness involved in interpreting the results. For those who are critical of CTT based techniques, a different approach to assess validity of measures is based on Generalizability Theory (GT) or G-Theory. Recently, Durvasula et al. (2006) as well as Sharma and Weathers (2005) encouraged application of GT in scale validation because it provides more diagnostic tools for evaluating measure validity. For example, if a measure is not invariant across groups, we do not know what causes it to vary across groups. It could be because of variation in subjects' responses, country differences, and/or country by item interaction. GT explicitly recognizes that several sources (e.g., items, persons, countries, dimensions, etc.) can contribute to measurement error, and GT makes it possible to assess the combined effect of these sources and their interactions. The overall generalizability coefficient indicates whether the measure can be generalized across samples and persons. Like IRT based techniques, applications of GT are beginning to appear within the consumer behavior discipline only recently. In this paper we also evaluate validity of measures using GT and discuss its usefulness to cross-national validation of multi-item scales as compared to CTT and IRT. Research Method and Results The handbooks on marketing scales illustrate several examples of multi-item measures (Bearden and Netemeyer 1999; Bruner, Hensel, and James 2005), both within and across countries. We selected one measure that has found wide application, which is the consumer ethnocentrism scale or CETSCALE, for illustration purposes. This scale measures consumer ethnocentrism, which is the appropriateness and indeed morality of purchasing foreign made products. The consumer ethnocentrism scale (CETSCALE) has been applied widely within and outside the United States (Netemeyer, Durvasula, Lichtenstein 1991; Durvasula, Andrews, and Netemeyer 1997). We use the CETSCALE for the purpose of comparing scale validation results based on CTT, Rasch Model, and GT. While previous studies compared CTT with IRT or CTT with G-Theory, no paper has compared all three approaches at the same time. Our paper fills this gap in the literature. The data for this study is based on responses to the 17-item CETSCALE. Young adults with similar educational background and evenly divided by gender provided the data in the U.S. (n=148), New Zealand (n = 140) and Singapore (n = 200). Results provide moderate support for the uni-dimensionality of the CETSCALE. Implications for using the three approaches to assess cross-national applicability of other consumer behavior measures are then discussed.

M4B.1 Examining Mediating Role of Attitudinal Loyalty and Nonlinear Effects in Satisfaction-Behavioral Intentions Relationship

Anand K. Jaiswal Assistant Professor of Marketing Indian Institute of Management, Vastrapur, Ahmedabad, India Email: [email protected]

Rakesh Niraj Assistant Professor of Marketing USC Marshall School of Business Email: [email protected]

Several existing studies have investigated the satisfaction, loyalty and behavioral intentions relationship. However, two issues in these relationships remain unsettled. One of these relates to the existence and nature of mediation that attitudinal loyalty may play in the relationship between satisfaction on one hand and behavioral intentions constructs of interest for marketers, such as purchase loyalty, willingness to pay more and internal /external complaining responses on the other. Although loyalty includes both behavioral and attitudinal dimensions, much of extant literature has focused on behavioral elements of loyalty ignoring attitudinal dimensions of loyalty as well as its relationship with other constructs (Chaudhuri and Holbrook, 2001; Chiou and Droge, 2006; Dick and Basu, 1994; Rauyruen and Miller, 2007; Wernerfelt, 1991).

The second issue relates to complex nonlinear nature of these links. Though such complex nonlinear nature of satisfaction loyalty link is suggested by several researchers, few attempts have been made to empirically examine nonlinearity (Mittal, Ross and Baldasare, 1998; Anderson and Mittal, 2000). Moreover, researchers have used divergent functional forms to model nonlinearity and their findings are often inconclusive (e.g., Anderson and Sullivan, 1993; Oliva, Oliver, and MacMillan, 1992; Agustin and Singh, 2005).

Utilizing data from collected from 202 online shoppers in India we attempt to address these issues in this study. We used a two-step structural equation modeling approach for the model estimation. In order to test latent quadratic nonlinear effects, we chose the Marsh, Wen and Hau (2004) unconstrained approach, as it offers important advantages such as smaller bias, robustness and relative ease in implementation. In comparison to other methods such as single indicator approach of Ping (1995), Marsh, Wen and Hau (2004) technique is closer to classical model by Kenny and Judd (1984).

Our results provide empirical evidence about the mediating role of attitudinal loyalty in the relationship between satisfaction, purchase loyalty, willingness to pay more and internal complaining responses. Our study establishes the superiority of fully mediated model, in which satisfaction affects purchase loyalty and other behavioral intentions through attitudinal loyalty, over partially mediated model. We also find partial support for nonlinear effects in the relationship. Results support nonlinearity in the case of attitudinal loyalty to purchase loyalty and

willingness to pay more links. Purchase loyalty and willingness to pay more have diminishing sensitivity towards attitudinal loyalty.

To summarize our contributions, we add to existing literature by detangling the complex relationships between satisfaction, attitudinal and purchase loyalty and behavioral intentions such as willingness to pay more and external and internal complaining responses. In particular, ours is the first study to examine the nonlinear effects of attitudinal loyalty on multiple behavioral intentions constructs. Our study also establish the superiority of fully mediated model, in which satisfaction affects purchase loyalty and other behavioral intentions through attitudinal loyalty, over partially mediated model.

M4B.2: Mobile Phone Choice, Corporate Image And Customer Loyalty

Dr.P. Ganesan, Associate Professor, VIT Business School, VIT University, Vellore 632014; Email: [email protected]

Ms.Amritha Jain, Student, VIT Business School, VIT University,Vellore 632 014

Mobile production in India reaches by 107 million in 2011 from 31 million units in 2006 (Gartner-domain-b.com, August 8, 2007). India‘s mobile phone handset market is flooded with many players. However, Nokia occupies 59.5 per cent market share, followed by Sony Ericsson with Samsung (7 per cent) and Motorola (5.9 per cent) (Cellular-news, May 16, 2008). Apart from the price, the features of the handset are the major influencers of the buyers decisions on the mobile handset product, brand and model of the brand. The innovations in products and services brought many changes in the lifestyles of the individuals. Among many in recent decades, mobile phone is an important innovation that makes the communication between individuals closer to each other being it as a business communication or other wise. The variety seeking customers in buying mobile phone / handset influenced by many factors: price, technology, brand name, batter life etc (Goode et al 2005; Dewenter et al 2007) price, interface, brand and properties (Karjaluoto et al 2005) related to the mobile handset, however, the company name and reputation (Chen and Palivoda, 2004: Oman and Williams Jr, 2006) do have determine the customer decision in selecting and buying the mobile handset. It is essential for the company which is having and willing to have sizeable market volume and value in the Indian mobile handset market to understand and aware that apart from the product related attributes, how the company reputation in the minds of the customer influences their product choice. Degree of customer loyalty has a tendency to be higher when perceptions of both corporate reputation and corporate image are strongly favourable (Nha Nguyen and Gaston Leblanc, 2001). In this context, the present study will attempt to answer the following research questions: What product related and non-product related attributes influences the customer in selecting mobile phone handset? And Is there any relationship between product related and non-product related attributes, company reputation, corporate Image, Corporate Reputation and loyalty?

The above said research questions have answered by adopting convenience-sampling method for the selection of sample for the study. The study area is semi-urban area namely Vellore District, Tamil Nadu, India. The structured questionnaire was designed by incorporating many features of mobile phone handset and corporate branding. The corporate branding scales related to corporate name, image, reputation and loyalty were adopted from the study of Nizar Souiden et al (2006). The factor analysis, correlation and regression analysis were applied to answer the research questions stated above. It was found from the factor analysis that the PCA brought out seven product and non-product related factors that are influences the product preference or choice of the mobile handsets, namely, After Sales services with Word of Mouth, Product Basic Features, External Connectivity 60

Features, Product Augmented Features with support, Compatibility Features, Durability of the Product and Special Offer with additional feature. These seven factors accounted more than 61 per cent of variance with high reliability score of 0.795 (which is closer to the suggested Cronbach Alpha 0.80). The bivariate correlation results between the corporate branding dimensions and product and/or non-product related variables show the expected positive relationship between corporate loyalty and corporate name, image and reputation. However with product and non-product related variables are concerned insignificant positive and negative relationship were identified with corporate loyalty. Nevertheless, the regression analysis by considering the corporate loyalty as a dependent variable and independent variables viz., product and non-product factors, corporate name, image and reputation illustrate that corporate image, corporate reputation, product related factors like product basic features and external connectivity features are most important influencers of the corporate loyalty by the customers. The finding of the study is strongly supports the earlier findings by Ralf Dewenter (2001) and Nizar et al (2006). The study highlights two important aspects in the influencers on customer decision with respect to the mobile handsets in India with specific reference to the semi-urban center of India. First, semi-urban customers (like their counter-parts in urban / city customers) of mobile handset also give due importance to the corporate or company manufactures the product which are consumer durable in nature based on company name, image and reputation, not just the brand name of the product as in the case of fast moving consumer goods. Second, apart from the essential or basic features of mobile handset, customers also listen to the recommendations of the friends, sales persons and company‘s employees with after-sales service and model at reduced prices.

M4B.3 Performance of Loyalty Programs in Small Businesses: Some Australian Evidence

B. Ramaseshan, Curtin University of Technology, Perth (Australia) Email: [email protected]

Megan Johnston, Hismelt Corporation, Perth (Australia)

In recent years there has been a proliferation of loyalty programs in different industries. Consumers are offered various incentives in exchange for repeat business. Customer loyalty is very important to organizations as it offers substantial benefits in terms of increased revenue, reduced customer acquisition costs, and lower costs of serving repeat purchasers, leading to greater profitability (Reichheld, 1996). Customer loyalty has also very powerful influence on a company‘s performance (Lam, Shankar, Erramalli and Murthy, 2004). Jones and Sasser (1995) found increased customer loyalty to be the single most important driver of long-term financial performance. In an attempt to capture some of these benefits, many firms have adopted loyalty programs aimed at building closer relationships with customers, stimulating product and service usage, and retaining valued customers (Verhoef, 2003; Kivetz and Simonson, 2003). Accordingly, researchers have begun to investigate loyalty programs, with only limited and contradictory published empirical work available at present (Crie et al., 2000; Bolton et al., 2000; Verhoef, 2003; Lewis, 2004).

Due to the many technological advances today, loyalty programs can be found across a broad spectrum of industries although a vast majority that employ loyalty programs are large size firms. The incidence of loyalty programs among small businesses is low. As a consequence research relating to the cost effectiveness of loyalty programs in small businesses in general and Australian small businesses in particular is not adequate. Kumar and Reinartz (2006) pointed out that there is limited empirical evidence on the success or failure of loyalty programs and that it is particularly difficult to get unbiased information about the performance of firm specific loyalty programs, partially because proper metrics are not in place, and partially because low performance is unlikely to be admitted. This research is aimed at evaluating the cost effectiveness of selected loyalty programs in the context of small businesses in Australia. This study fills a gap in existing literature to evaluate the cost effectiveness of loyalty program by employing a simple method at an individual participant level, introducing a time and redemption liability element. The intent of this research is to assess the extent to which customer loyalty programs are achieving the desired goals among small businesses.

T1A.1 The Impact of Social Contagion on What Brand to Buy, How to Buy and Whom to Buy From: Evidence from High-Tech Durable Goods Market

Ramkumar Janakiraman 1. Mays Business School, Texas A&M University, Email: [email protected]

Rakesh Niraj2Marshall School of Business, University of Southern California Email: [email protected]

Social contagion, also known as peer effects, refers to interpersonal and often informal communication between consumers, who are independent of the firm. A rich stream of literature in marketing, economics and sociology has established the importance of social contagion on consumers‘ choice behavior in several contexts. Most of these studies have focused on the effect of social contagion on consumers‘ adoption of a new product in general. However, consumers‘ purchase process of a product, entails not only the decision of what to buy (i.e. product choice), but also the decisions of how to buy (i.e. channel choice) and whom to buy from (i.e. retailer choice). The underlying reasons of learning from other consumers and social-normative pressures (Van den Bulte and Stremersch 2004) that makes social contagion effective and relevant in consumers‘ decision of choice of a product, can also be relevant in consumers‘ decisions of where and how to buy it, especially for complex, high priced and/or high involvement products. For example, influenced by a neighbor, a consumer might decide to buy the same brand of computer (e.g. Dell), via the same channel (e.g. online) and from the same retailer (e.g. Circuit City) as her neighbor.

No study to our knowledge has systematically analyzed the effect of social contagion on consumers‘ channel and retailer choice, let alone all the three choices simultaneously. Failure to understand the simultaneous effect of contagion on all the three decisions limits us in our understanding of the full scope of social contagion on consumers‘ decision making, from a theoretical perspective. From practice point of view, there are no guidelines for retailers to understand and benchmark how consumers‘ choice of retailers and the different channels they employ is driven by firm controlled marketing actions, compared to social contagion that are outside their control. Besides, ignoring the effects of contagion on consumers‘ retailer and channel choice behavior can lead to biased estimates of marketing-mix variables, and non- optimal allocation of marketing resources. The primary purpose of this study is to address the gap in the literature and to facilitate a holistic understanding of social contagion on consumers‘ choices of brand, channel and retailers, all in a single framework.

Drawing on the literature of social contagion, and consistent with random utility framework, we propose to develop an individual-level joint model of consumers‘ decisions of what brand of product to buy, whom to buy it from and how to buy the product, and analyze how each of the three decisions are influenced by social contagion. In order to get unbiased estimates of the effect of social contagion on the three choices, one has to address several key econometric challenges. First, it is important to control for firms‘ marketing actions on consumers‘ choice, failure of which can overstate the effects of social contagion (Van den Bulte and Lilien 2001). Secondly, from an institutional feature point of view, one has to develop an econometric model to explicitly

account for structural constraints that are prevalent in this industry. For example, some brands (Dell, for example) sell only directly to consumers, while many other brands (like HP) may be bought directly from the manufacturer, or remotely using a catalog or online retailer or by physically visiting one of the many type of retailers that carry this brand. Furthermore, it is also important to account for the ―reflection problem‖ (Manksi 1993) and the issue of correlated and unobserved factors in order to properly identify the parameters associated with social contagion. Finally, the magnitude of social contagion may differ across consumers depending on whether a consumer is a first time buyer or a repeat purchase buyer. Failure to adequately control for consumers‘ prior knowledge with the product may again lead to biased estimates of social contagion. We develop an econometric model to explicitly account for all the challenges discussed above.

Leveraging a micro-level dataset of purchases of personal computers, we develop brand, retailer and channel related contagion measures at the individual consumer level and estimate a joint disaggregate model of the three choices that make up a product purchase process. Our results indicate a significant effect of social contagion on each of the three choices, and that the effect of brand related contagion on consumers‘ choice of a brand is greater than the retailer and channel related contagion on consumers‘ choice of retailers and channels respectively. Furthermore, we find evidence of a greater effect of contagion on those consumers who are new to the product category. Our results help develop a holistic understanding of the effects of social contagion on consumers‘ decision-making. Key words: Social Contagion, Neighborhood Effects, High Tech Markets, Durable Goods, Consumer Decision Making

T1A.2: Acculturation to the Global Consumer Culture: A Comparison of Young Consumers in Nigeria and the United States Steven Lysonski Professor and Miles Research Scholar, Marquette University

Srinivas Durvasula Professor and Edward A. Brennan Chair in Marketing, Marquette University Email: [email protected]

Idris Odunewu Marquette University

More than two decades ago, Leavitt (1983) argued that a convergence of tastes and preferences among consumers was inexorably transforming the marketplace. This radical transformation was envisioned as having an enormous impact on how business, particularly marketing, would operate. Homogenized tastes, arising from this convergence, meant that firms could focus on value creating activities geared more to transnational marketing vs. customized marketing. Transnational marketing means that firms could appeal to global market segments sharing common tastes. Since that rather bold statement was made by Leavitt, lively debate continues on the merits of this argument. While this debate continues, metrics to determine if these common tastes are indeed emerging have not been well developed. Instead, studies have looked at the presence of global segments such as teens, the elite and the middle class. What is missing from research is a tool to measure the extent to which consumers in various countries are being transformed to fit the global consumer culture. Recently, however, Cleveland and Laroche (2006) developed a scale to measure acculturation to the global consumer culture. Their approach represents one of the first to gauge the mindset of the ―transformed‖ global consumer. The scale that Cleveland and Laroche developed consisted of several dimensions to measure different aspects of such acculturation such as cosmopolitanism, exposure to marketing activities of MNCs, English language exposure, social interactions while traveling, global mass media exposure, openness to and desire to emulate global consumer culture, and self-identification with global consumer culture. The goal of our research is to determine if this scale is applicable to assess the acculturation of consumers in Nigeria to the global consumer culture and how this concept is related to other consumer behavior variables such as attitude towards domestic products (vs. imports), materialism, and consumer ethnocentrism. Nigeria has become relatively wealthy because of oil and this wealth has attracted foreign companies to market their products there. Furthermore, we also wished to examine the extent to which young Nigerians have become exemplars of this global consumer culture in comparison to young Americans who ostensibly should already be a part of this culture given the modernity of the United States. Data collected from a sample of about 150 consumers each in Nigeria and the United States will be the basis for performing various statistical analyses. Confirmatory factor analyses will be applied first for examining dimensionality and reliability of various measures. Covariance structure analysis of item parcels of various measures will then be applied for examining relationships among acculturation to global consumer culture and other consumer behavior variables.

The paper will be organized as follows. We begin by examining the emergence and development of consumer culture in light of the acculturation process that is transforming marketplaces. We then describe the different dimensions that seem to describe this acculturation process as identified by Cleveland and Laroche (2006). Subsequently, we outline the method that we used, the variables that we measured and the sample of consumers who provided us the data. Following a presentation of the results, we provide the conclusions and discuss the implications of our results for creating and communicating product value to global consumers segments. References Levitt, T. (1983), ―The Globalization of Markets,‖ Harvard Business Review, 61 (May-June), 92-102.

Cleveland, M. and Laroche, M. (2006), ―Acculturation to the Global Consumer Culture: Scale Development and Research Paradigm,‖ Journal of Business Research, 60, 249-259.

T1A.3: Seeking Bargains: Is that Worth My Time?

Ritesh Saini, George Mason University, Email: [email protected] Raghunath S. Rao, University of Texas, Email: [email protected] Ashwani Monga, University of South Carolina, Email: [email protected]

Consumers love bargains. The possibility of cheaper products urges people to drive to far-flung outlet malls; the prospect of getting a discount makes them clip and save coupons; and the promise of instant savings at the time of purchase is reason enough to sign up for the store- specific credit card. But how far are consumers willing to go in order to get such bargains? Consider an example of two stores: Store A sells a shirt for $20 but Store B sells the same shirt for $10. Would a consumer, who is already in Store A, be willing to take a five-minute drive to Store B in order to save $10? Furthermore, would the consumer be willing to drive to save $10 if the price at Store A were $60? Traditional economic theories suggest that consumers should base this decision simply on how much they value the benefit of $10 versus the cost of a five-minute drive. However, research on relative thinking suggests that a discount of $10 seems less appealing if the price is $60 rather than $20. This notion is significant for marketers because it implies that, given a fixed sales-promotion budget aimed at increasing store traffic, a manager ought to make discounts more attractive by applying them on products that are priced low rather than high. We delineate the conditions under which managers ought to do the opposite. We show when and how a $10 discount can seem more appealing on a price of $60 rather than $20.

Relying on the strength of multidisciplinary research, we rely on a mathematical model to derive new predictions that we then test in behavioral studies. Our theorizing involves a consideration of referent thinking, which involves the reference price that one expects to pay. We employ an analytical model to study how two behavioral tendencies—relative and referent thinking— interact when they are jointly incorporated into the prospect theory value function. This leads to novel predictions that are supported in three laboratory experiments, which employ an infrequently-purchased product category (blankets) and a frequently-purchased product category (gasoline). An additional study attests to the counter-intuitiveness of our results and provides evidence that these effects might be occurring without people being aware of them. Specifically, when a group of participants were given details about one of our experiments and asked to predict what the results would have been, they suggested a pattern that was consistent with intuition, but opposite to the results that we actually found.

Overall, our research incorporates psychological findings into a theoretical model to predict novel effects related to consumers‘ bargain-seeking behavior, which we then confirm in behavioral studies. The specification of these effects in a model affords wide applicability. For instance, this model can help understand the effect of other consumer benefits, beyond the monetary promotions that we studied. It can also be extended to the perception of product surcharges, such as costs of delivery. Our results offer direct suggestions regarding enhancing the effectiveness of a fixed sales promotion budget by considering not only product prices, but also how they differ from expected prices. Finally, recommendations arise in terms of when promotions ought to be framed in absolute terms ($X off), and when in relative terms (Y% off).

T1B.1: Intention Conviction, Measurement, and the Prediction of Consumer Behavior

Murali Chandrashekaran, [email protected] University of New South Wales

Kristin Rotte, [email protected] University of New South Wales

Frank Kardes, [email protected] University of Cincinnati

Maria Cronley, [email protected] Miami University

Marketing scholars and practitioners work with consumer judgment data to test theories and make predictions of consumer behavior. In this agenda, behavioral intentions continue to receive attention from scholars and practitioners alike. The premise is simple: If you want to know what consumers will do, ask them. And then hope they behave consistent with their intentions. The empirical research on the intention-behavior link, however, has not produced unambiguous findings. Even as the literature witnesses an incessant increase in theories and models of intention and actual behavior, meta-analyses in marketing and psychology continue to indicate that stated intentions often do not translate to behavior. More recently, Alexander, Lynch and Wang (2008, JMR) document that the intention-behavior link is especially weak in the case of predicting initial use of really-new products – consumers appear to be ―poorly calibrated in their expectations of initial product use‖ (p. 307). Recent research suggests that consumer intentions are particularly prone to ‗mere measurement‘ effects. Drawing on the thesis that respondents often conform to the demands of a survey instrument by forming superficial attitudes, or ‗nonattitudes,‘ on the spot (Feldman and Lynch 1988; Converse 1970), Chandon et al (2005) demonstrate that the very act of asking consumers to report on their behavioral intentions produces an overestimation of the intention-behavior link (i.e., an increase in the net impact of intentions on behavior. Across three field studies, Chandon et al find the intention-behavior link is about 58% stronger among surveyed consumers relative to similar nonsurveyed consumers. This finding, that part of the predictive power of intentions is an artifact of measurement, undoubtedly has profound implications for social science researchers in general and managers in particular. In this research, we theorize and demonstrate that the intention-behavior link is shaped not only by mere measurement, but also by the latent consumer intention conviction (i.e., the extent to which a consumer holds his intention with strength and certainty). We start by engaging the question following question: How do nonattitudes present to the researcher? That is, what are some properties of nonattitudes that help us distinguish them from attitudes, in general? Espousing the view that nonattitudes can be distinguished from attitudes by centering on the conviction dimension of judgments, we employ a judgment decomposition model (e.g., Chandrashekaran et al 2007; Grewal et al 2008) to (a) test the simultaneous impact of independent variables on latent intention magnitude and conviction, and therefore estimate the extent of latent conviction from revealed intentions, and (b) quantify the extent to which

intentions held with low conviction are likely to be discarded. The resulting model is responsive to research in the area of spontaneous evaluating responding (e.g., Jarvis and Petty 1996) that contends that respondents evidence heterogeneity in the extent to which their responses qualify as ‗nonattitudes.‘ We assess the model in a field study, using data from an actual new product concept test in a B2C setting. The analysis strongly supports the conviction-based model, and demonstrates that (a) consumers with low levels of model-based intention conviction evidence lower intention- behavior consistency, relative to those with high levels of intention conviction, and (b) a predictive model of behavior that fails to account for intention conviction overestimates, on average, the intention-behavior link by 54% compared to a model that explicitly incorporates heterogeneity in intention conviction. The second part of the research develops a behavior model to capture the interplay of conviction and measurement in shaping the intention-behavior link. The model is assessed in another field study, set in a B2B context and employing actual adoption behavior data from surveyed customers and similar nonsurveyed customers. We first replicate the key finding from study 1 that, among surveyed consumers, lack of conviction dampens the intention-behavior link. Results from the ‗conviction and measurement‘ model then reveal that the impact of mere measurement on the intention-behavior link hinges on intention conviction. At the aggregate level, the impact of mere measurement appears to be at least four times smaller than that suggested by extant research that has ignored the role of conviction. At the individual level, measurement produces both inflation and deflation on the intention-behavior link; at high levels of intention conviction, measurement inflates the intention-behavior link and for 25% of the population (consumers with low levels of intention conviction), mere measurement actually deflates the intention-behavior link.

T1B.2. Value Creation Through Better Targetability: Genetic Algorithms For Dual Objective Segmentation

P.V. (Sundar) Balakrishnan* Professor of Marketing, Business Administration Program, University of Washington, Bothell, WA 98011, Email:[email protected]

Subodha Kumar,Assistant Professor of MIS,University of Washington, Seattle, WA 98195, Email: [email protected]

Cluster-based segmentation is employed by marketers in designing marketing strategy in numerous business domains. The dominant paradigm, the post-hoc segmentation approach, unlike the earlier a priori segmentation, defines homogeneous clusters based on needs and benefits (such as from conjoint part-worths data) and then works back to identifying the segments based on classification variables. Under this current response-based paradigm, a K- means approach is typically employed to define homogeneous clusters on needs variables which are then profiled using a Discriminant type analysis on the classification variables. Such an approach, it is now being increasingly recognized, leads to at least two major problems that make life difficult for the practitioner. Two of the most critical factors that are important in effectively and profitably segmenting the market are identifiability and responsiveness (Krieger and Green, 1996). Unfortunately, as has been recognized for some time now, a standard K-means approach to defining homogeneous clusters may result in less than desired identifiability, i.e., market segments representing distinct groups of customers that are based on specific characteristics (e.g. sex, age, occupation, and etc.). In addition, there is growing recognition that K-means type approaches lead only to a local maxima suggesting that the cluster outputs from standard commercial packages are less robust than previously thought. Dissatisfaction with this K-means based traditional approaches to segmentation and the need for alternative approaches to thinking about effective segmentation is starting to burgeon among practitioners and academics. The increasing focus in value creation through profitably segmenting target markets requires simultaneously achieving identifiability of value and targetability. This is a combinatorially difficult tradeoff that requires newer methodologies and efficient heuristics (Krieger and Green, 1996, Forsyth, Gupta, Haldar, Kaul and Kettle 1999). Balakrishnan, Kumar and Han (2006) had proposed the use of Genetic Algorithms to address the managerially important problem of Dual Objective Segmentation. In this talk, we will briefly discuss the alternative approaches and our proposed implementations. A comparative investigation of our GA based approach with the Simulated Annealing Heuristics (Brusco, Cradit and Stahl, 2002) is conducted and the detailed results of the resulting investigation based on a large scale Monte Carlo simulation will be provided. The approach presented here shows that significant value in targetability of segments is lost by using traditional post-hoc segmentation approaches. Using our methodology it is possible to obtain significant improvement in the targetability of segments (as shown by the variance explained in the background variables) with little diminution in the variance of the needs or bases variables. Metrics for efficient and effective implementation of this tradeoff will be presented to address this important managerial problem.

T1B.3: Assessing Presidential Priorities: A Comparison of Three Methods

V. ―Seenu‖ Srinivasan, Adams Distinguished Professor of Management, Graduate School of Business, Stanford University Email:[email protected] Alex Makarevich, Doctoral Candidate in Sociology, Stanford University

Two methods are commonly used to assess priorities for the benefits in a product or service category from individual customers: ratings and constant-sum allocation. A common problem with the ratings approach is that it does not explicitly capture priorities; it is easy for the respondent to say that every benefit is important. The traditional constant-sum approach overcomes this limitation, but with a large number of (ten or more) benefits, it is difficult for the respondent to divide a constant sum among all the benefits. ASEMAP (pronounced Ace-Map, Adaptive Self-Explication of Multi-Attribute Preferences) is a new web-based interactive method for assessing customer priorities. It consists of the respondent first grouping the benefits into two or more categories of importance (e.g., more important, less important). The respondent then ranks the benefits in each of the categories from the most important to least important. In order to estimate quantitative values for the priorities, the computer-based approach breaks down the attribute importance question into a sequence of constant-sum paired comparison questions. The paired comparisons are chosen adaptively for each respondent to maximize the information elicited from each paired comparison question. The respondent needs to be questioned only on a small subset of all possible paired comparisons. Importances for the benefits are estimated from the constant-sum paired comparisons by log-linear multiple regression. Unlike ratings and the traditional constant-sum method applied across all the benefits, the proposed approach provides standard errors for the priorities.

The empirical context was that of assessing priorities for seventeen issues by the Presidential candidates for the U.S. election. The study was conducted in summer, 2008 prior to the U.S. election. In addition to Constant Sum and ASEMAP, a state-of-the-art method called MAXDIFF was also compared. The ASEMAP method provided a statistically significant and substantially better predictive validity than the traditional constant sum method and MAXDIFF.

T2A.1: Communicating Value: Persuasion: Role of Affective and Cognitive bases of Attitude Functions

Srividya Raghavan, Assistant professor and Doctoral Candidate, Icfai Business School, Hyderabad Email: [email protected]

One of the central functions of a marketer is to reach out to his consumers and marketing communication is an effective tool for achieving this objective. As observed by Kitchner and Pelsmacker (2004), ―Marketing communication is the collective term for all communication functions used in the marketing of a product. The purpose of marketing communication is to add persuasive value to a product for the consumer‖. In essence, the marketer attempts to ‗persuade‘ the consumer to adopt or trail his ‗offer‘, thereby creating a market for his offerings‘. Extant literature on persuasion talks about the dual route to attitude change: the routes being central/elaborate and peripheral/heuristic (Petty and Cacioppo, 1986, Eagly and Chaiken, 1986). This stream of ―Persuasion‖ literature contends, with supporting empirical evidence, that the elaborate or central route representing rational information processing causes more persuasion, resulting in stronger or more enduring attitudes which are also more predictive of behavior. However, another stream of research that examines the role of affect, talks about relational elaboration and use of affect as information in the processing of information. This stream of research which examines the role of affect provides evidence that suggest that perhaps affect can influence attitudes and behavior faster and more extremely than cognition (Bakamitos, 2001; Shiv, 1999, Ray and Batra, 1982). Ray and Batra (1982), point to four reasons why affective (emotional) advertising may be more effective than cognitive (rational) advertising. According to them ―affective advertising may, in many cases be effective advertising because it is attended to more, processed more, evaluated more favorably and remembered more.‖ While this seems to suggest that on the whole affective advertising tends to be more affective for several reasons cited, this seems in contradiction with the well established Elaboration Likelihood Model that suggest that emotional advertising works through the peripheral route and therefore is not as powerful a persuader when compared to rational advertising which operates through the Central route. The conflicting results from the two streams of research seem to have diverged at a point where they are ineffective in enabling decisions regarding the choice of appropriate persuasive appeal in specific situations. As pointed out by Ray and Batra (1982), one of the agendas of this stream of research is developing a theoretical understanding of, those situations where the use of affective executions adds to advertising effectiveness and those where is merely entertains. Integration hence appears necessary in order to understand the role of affect and cognition in the persuasion process. This research is an exposition of the process of persuasion, the attitudes of consumers towards specific objects (products, brands etc.), the nature of attitudes and the susceptibility of attitudes to different kinds of appeals, specifically, emotional and rational appeals. The research involves a discussion of the theories of persuasion (Petty and Cacioppo, 1986; Chaiken, Liberman and Eagly, 1989) and their inadequacy in explaining the role of emotional and rational messages in the process of attitude change. Alternatively, the research suggests a method for understanding the process of persuasion by analyzing the nature and bases of attitudes (Katz, 1960; Edwards,

1990; Shavitt, 1990). In this context, the tri-component theory of attitude and the functional approach to attitudes are explored. The suggestion that the functional bases of attitudes might be antecedent to the affective or cognitive leanings of an attitude and that matching or mismatching the communication to this foundation could explain the susceptibility of attitudes is the moot point of this thesis. The dominant purpose of the study, from a marketing management standpoint is to demonstrate the role of attitude bases in the persuasion process so that they can be taken into cognizance in the creation of effective marketing communications. An object oriented approach to attitude functions is identified and a conceptual framework is proposed. This framework aims to integrate the structural approach to persuasion research with the information processing perspective of persuasion theories.

T2A.2 : Information and Emotive Content in Chinese Print Advertising: A Scale Revalidation Analysis

Rajendar K. Garg Indiana University of Pennsylvania Email: [email protected]

While many studies have utilized Resnick and Stern‘s (1977) classification system to assess the level and efficacy of information content, results have been largely unsatisfactory for a variety of reasons, such as, higher levels of information content being not necessary for persuasion, consumers‘ lack of perfect information, product type interaction with information content, the use, activity, efficiency and potency of information content. Assessment of emotional content in print advertising although studied extensively elsewhere has been largely ignored in content analysis. This study tests the efficacy of Resnick and Stern‘s (1977) classification for assessing information content and revalidates the scales for assessing emotive content across 10 different product categories. The current goal of this study is to validate the scales for assessing information and emotive content. The ultimate goal of the project is to assess information and emotive content in Chinese print advertising and do a cross-cultural comparison with American print advertising.

While many authors have been involved in content analysis of Chinese print advertising, the information content of an advertisement has been popularly assessed by using the fourteen evaluative scales/criteria of Resnick and Stern (1977). Many studies have replicated the methodology of assessing information content as containing any of the 14 information criteria (Harmon, Razzouk, and Stern, 1983; Abernathy and Franke, 1996). Others have questioned their methodology used to assess information content based on the choice of media (television advertising) that may contain any informational content as well as the relationship between information content and advertising persuasion (Laband, 1989). The bottom line is: if an advertising isn‘t informative, is it effective? And if it is informative, is it more or less effective? And what exactly is the role of the emotive content. Therefore, information and emotive content analysis scales need revalidation if they are to be used as true indicators of advertising content analysis.

Resnik and Stern (1977) view concrete information like price and quality as cues consumers can use to make intelligent decisions among alternative choices. They operationalized the informativeness construct through a content analytic scheme in which message content is analyzed with respect to 14 evaluative criteria. They include 1) price or value, 2) quality, 3) performance, 4) components or contents, 5) availability, 6) special offers, 7) taste, 8) nutrition, 9) packaging or shape, 10) guarantees or warranties, 11) safety, 12) independent research, 13) company research, and 14) new ideas. Based on the presence or absence of each content cue in a 74

message, this methodology provides an objective evaluation of the amount of information communicated in an ad.

The emotive content scales used for validation include a set of 19 semantic differential scales eliciting emotive responses to a variety of print ads across 12 product categories. The results of the validation and cross-validation of the scales are analyzed and presented. The proposed schemata for cross-cultural analysis is discussed for future research.

T2A.3: Content analysis of TVC‟s featuring Celebrities

Subhadip Roy ICFAI Institute for Management Teachers,Hyderabad;[email protected],[email protected]

Alan D‘ Souza Mudra Institute of Communication Research, Ahmedabad;[email protected]

Mari Sudha Mudra Institute of Communication Research, Ahmedabad;[email protected], [email protected]

Broad aim of the proposed study is to analyze the nature of celebrity endorsements in Indian Television Commercials (TVCs). The main focus however will be on the mode in which the celebrity is used in the Ad namely the Explicit Mode, Implicit Mode, Imperative Mode, and Co- present Mode (McCracken, 1989). The second objective of the study will be to identify if there is any relation between the celebrity (in terms of occupation and gender) and the nature of the product endorsed. The third objective of the study would be to look into the presence of correspondence between the modes in which a celebrity is used in an ad to the product category. Content Analysis was the selected methodology because of its application in analyzing the communication message without putting the researcher‘s interpretation (Kassarjian, 1977). TVCs were selected as the study variable. In the later stage of the study correspondence analysis was performed to identify the nature of relationship (if any) between the mode in which the celebrity is present in the ad and the product category featured in the ad. Data i.e. the Television Commercials were collected from www.magindia.com. In this regard an alphabet by alphabet thorough search of celebrities was conducted and television commercials featuring those celebrities were selected. The time period of the selected ads ranged form 1995- 2007. The selection criterion was that an advertisement should have the celebrity present in any form. This resulted in a set of 630 ads out of which used national celebrities. A total of 56 celebrities were identified to endorse various products ranging from soft drinks to cars. Sachin Tendulkar was found to be the most featured celebrity in 61 ads; this was followed by Amitabh Bachchan and Shah Rukh Khan both at 51 ads respectively. Nineteen (19) celebrities had more than 10 ads to their credit. Food and Beverages was the major product group featured in the entire set with 182 ads (28.9 %) followed by Health Care and Beauty Products with 92 ads (14.6%) and Automobiles with 62 ads (9.8%). Each ad was viewed first in its entirety without undertaking any coding. Then all the ads were viewed several times to capture the nature of the portrayal of the celebrity in the ad. Two coders independently performed the procedure and the results thus obtained were compared across the two coders‘ output. This was done to ensure reliability (Kassarjian, 1977). The Explicit Mode was coded as 1, The Implicit Mode as 2, The Imperative Mode as 3, The Co-present Mode as 4. A frequency analysis of the modes in which the celebrity is portrayed in an ad showed the Implicit Mode to be the most frequent mode with 395 ads out of 630 (62.7%). The Explicit Mode was found to be the next most frequently used mode with 102 ads (16.2%) in that category. The

Imperative Mode with 86 ads (13.7%) and the Co-present Mode with 47 ads (7.5%) followed this. Only those product categories/groups, which had a more than 5% presence in the total dataset, were retained in the sample before analyzing the correspondence between the mode of presence of a celebrity and the product category/group. This was done to reduce the number of categories with very small frequency. The six categories that were retained: Food and Beverages, Health and Beauty Products, Automobiles, Telecom Products and Services, Apparel and Consumer Durables. The total number of ads was reduced to 438. Two cross-tabulated frequency charts gave an indication of the nature of correspondence between the celebrity type and the product category. From the cross tabulated results it was evident that in all the major product categories, film celebrities were more extensively used than sports celebrities. However, if we observe the sports celebrities in isolation, the major product category to use them was the Food and Beverage category. From the second cross-tabulated frequency chart, male celebrities were found to dominate in all the product categories except Health and Beauty Care, where female celebrities had a majority. To fulfill the third objective, a Correspondence Analysis of the product categories to the mode of the celebrity portrayal was performed using SPSS 13. From the results, it was evident that there was no clear correspondence between the product categories and the mode of celebrity presence in ads of those products. It was observed that there was a majority of ads where the celebrity was portrayed in the Implicit Mode (Mode 2) across all product categories which led to inconclusive results in the correspondence analysis. There are quite a few implications of the study. Most of the advertisements in the Indian scenario were found out to be in the mode where the celebrity indirectly suggests the consumer to use a particular product or brand i.e. the implicit mode. This is ideal for television advertisements since the celebrity many a times plays the role of a character in the ad which is like a story. However, this may be harmful in case the celebrity faces any public controversy or does not excel in his own domain. Secondly, the other three modes were found to be used much less than the Implicit mode and could be looked into as an opportunity by the marketer. From the findings of the correspondence analysis it was evident that irrespective of the product category the celebrity was used implicitly (mostly as an actor/actress). This may be because of the fact that majority of the products advertised in TVC‘s are low involvement products. Thus when the buying situation occurs, the consumer may remember the celebrity and thus the product and be persuaded to purchase the product. Moreover, since the time involvement of the viewer is low for a TVC, using the celebrities in other modes may not be worth it since the consumers will not remember the speech/testimonial given by the celebrity. In spite of the limitations, the study had generated some conclusive findings and will help to foster future research in this area.

T2B.1: Value Creation

N.Jayaraman Consultant;[email protected]

Value creation in Global markets is determined by:

1. innovative products using technology 2 Exploring new markets . 3. Leadership and Entrepreneurship 4. Defining product portfolio

Tata Nano and GE Electrocardiogram innovative products, low price is fixed first , designed manufactured created rural .urban markets in India. Millions of Indian Public using two wheelers at a cost ranging from Rs.50000- Rs.75000/ consider Tata Nano as family vehicle as it can carry more passangers with roof over their head and also providing road safety Similarly GE Electrocardiogram will provide affordable health care in India Indian Telecom companies with 225 million customers., value addition works out to $ 0.66 billion per customer. Telecom Network, Hand sets with added features of messaging, video, camera , transmission towers add value . Rural connectivity is enlarging on a massive scale. Farmers find latest market rates, weather report instantly Leadership and Entrepreneurship for value creation by M/s Hutchiso and Lenova , is visible M/s Hutchison was selling artificial flowers. Lenova a reseller of computers acquired IBM.Computers Jet Airways Air Deccan, Radio Mirchi made early entry and by offering quality service created Value addition Airline business opportunities: Government of India policy allowing private airlines gave Jet Airways , Air Deccan an early opportunity to capitalize. Jet Airways has ranked second within a short period of .. years. Advantage of private airlines have relatively young aircraft and operating cost less, . Companies define their product portfolio to improve value addition to stakeholders . M/s IBM, Hewlard Packard and Xerox are model examples of defining their product portfolio . IBM is earning $7 per share with a vision of EPS of $10 in 2013.by concentrating on Software and Services They have recurring revenue of 50% from existing customers with strong brand loyalty. . HP and Xerox are competing printer manufacture where Xerox is restricted to single product. HP diversified with software and ATM software efficiency by use of console capture transactions and surplus/shortage of cash in every location M/s HP focus is on Personnel system , Image and Printing , Enterprise storage and HP Services.. Environmental social responsibity, their dynamic smart cooling system aims at 60% reduction in energy . Recycle 1 Billion pound electronic products in 2007 and and 500 Billion pounds recycling during 2004-2007. Focus return cash to shareholders Business Focus: M/s Xerox has concentrated only on printing and imaging industry. They were the first desk top plain paper copier in 1963 and color copier in 1973, First laser/ plain paper Fax and commercial application of laser technology. Rendering one high quality page requires billions of mathematical operations , new algorithm for image processing to achieve quality and performance. Lead in toner photoreceptor building materials using nano technology, linguistic

tools, use of digital system reuse and storage Xerox by increasing patents introduce new printers. .Conclusion: Entrepreneurship is the first essential element of value creation. Companies competing for market share differentiate their product portfolio with Innovation and patents. Each company decides upon a matrix of product portfolio management. For example M/s IBM which was in Hardware manufacture has moved from Hardware to Software and Financial Services. The cost of production and margin are the deciding factors for strategy management of product portfolio.

Referenece: Business World , Knowledge Wharton papers

T2B.2: IPL as a Value Creator for its Stake-holders

S. Manoharan- Assistant Professor, IFIM Business School Email:[email protected]

Dr. Rajendra Nargundkar- Dean,Continuing Education, IFIM Business School. Email: [email protected]

Indian Premier League (IPL) has redefined the sport of cricket and being a recent format of cricket it has created a lot of excitement, entertainment and expectations from the spectators. It is considered to be the biggest marketing event of 2008. This paper examines the role of IPL in creating value to its stakeholders. It is confined to the major stakeholders- namely, team-owner, the player, the TV channel and the cricket control board (BCCI). To understand the concept of value creation and how IPL will take shape in forthcoming years, the researchers used qualitative research where the Delphi technique and/or in-depth interviews with experts (sportspeople, journalists, etc.) in the field were used along with secondary information.

Value Creation for Franchisee From the point of view of the franchisee if he is owning a brand it paves a platform to showcase his brand to the world wide audience. The scope for generating revenue by the franchisee is 80% of money can be retained by them in gate money, selling advertising space in the stadium, licensing products for their team like T-shirts, getting sponsorship for their team uniform, advertising on tickets. The news item in Business Line indicates that India cements the franchisee of the Chennai super kings (IPL team) has crossed break-even numbers in the inaugural year which is the runner up in the trophy final.70 crores is the money spent on the whole exercise in the first year which has been reaped quickly. Deccan Chronicle Holdings and Group have decided to put the franchisee on sale. The expected enterprise value is likely to be around $200 million whereas they had invested $107 in the last season.

Value creation for a Player The players will be recognized quickly for national teams and one example is Virat Kohli making an entry to the National team along with Badrinath, Brand endorsements are likely to be more and depends on the performance and in long term the value of the player (in terms of salary) depends purely on the current performance. The primary details reveal that there is a greater scope for new talent getting exposed and also it is slightly difficult for the senior players to get adapted to the changing formats. Also that it has a great deal of scope for junior players or new players to get exposed to the world. There is great deal of risk if you are paid reasonably high and if you don‘t perform, the possibility of playing in the next season is doubtful.

Value creation for BCCI BCCI adds a lot of value to the already known as one of the worlds richest Sports Council. IPL will be revenue spinner and already has increased the value of BCCI to a great level. BCCI gets 20% from media rights, 40% from title sponsorship and 20% from franchisee rights. An IPL council headed by IS Bindra and assisted by Lalit Modi and others will manage the show

independently of BCCI. BCCI raked in Rs 289 crore (approximately $62 million) from the first annual installment of the money the owners bid to buy the rights to own an IPL team. Value creation for the TV Channel

The TV channel Sony Entertainment and Asia based World Sport Group (WSG) has won the television rights for a ten year period for a whopping US $1 billion. TV rights are worth $918 million and additional $100 million is kept aside for the leagues promotion. The game of cricket is well suited for the channel which opts to telecast such a mega event which is also acting as an entertainment value, the game by its virtue gives a break after every over well suited for advertisements unlike any other sport. The 10 second pricing went upto 10 lakhs during the semi finals and finals which helped the channels to reap huge money. Media analysts agree IPL will be a long-term money-earner for Sony. Says Peter Mukerjee, chairman of INX Media, ―With IPL likely to grow with each season, Sony will up the ante for ad rates and turn the event into a cash cow in coming years.

Conclusion: IPL as a concept has really created a mark in the history of cricket. The sport has redefined the traditional way of looking at cricket. The sudden arrival and apparent success of the new league has shaken cricket from top to bottom. It is the most vivid illustration in sport of the shift in the global economy from rich countries to the emerging world .It is very evident from the work that it is a value creator to the stake holders and many others.

T2B.3: Creating value through seniors‟ social networks in third places

Kanika Meshram, Assoc. Prof. Alison Dean University of Newcastle, Australia

[email protected] [email protected]

Senior citizens are an important market group to study because most developed countries are witnessing rapid growth in the size of their senior segment. However, the sociological aging process reduces seniors‘ social networks, resulting in feelings of social isolation, and loss of social capital. The cliché ―it is not what you know but who you know‖ can be used to describe social networks. Belonging to a wide social network implies improvement in one‘s social capital (Portes 1998) and healthy ageing for seniors (van Tilburg and van Groenou 2002). Third places, like coffee shops, restaurants and clubs, are commercial settings that enable seniors to socially interact and expand their social networks more than home (first place) and work (second place but usually not applicable to seniors). Putnam (2000) claims that ‗places‘ that harbor social relations to people generate value for themselves. Lusch and Vargo (2006) claim that value is based on what elements are significant to the customer. For socially isolated seniors, third places like seniors‘ clubs are a means through which they can expand their valuable social networks. However, further exploration is required to investigate how expansion in social networks affords value to the third place. In addressing this gap, this study explores the research question: How do social networks developed in third places create third place value?

Considering the exploratory nature of the question a qualitative research design was suitable (Denzin 2005). Data were collected from four senior citizens‘ groups: two separate formal community groups (Clubs A and B), one informal residential group (Club C) and one formal residential group (Club D). A combination of focus groups (six), unstructured interviews (three) and participant observation (six week period for five hours per week in Club B) was adopted to explore the above research question. Data were examined using QSR NVivo 7 software (Richards 2005). To add rigour to the qualitative analysis meaningful themes that emerged from the data were systematically compared to determine general themes within the data and to initiate theory construction (Strauss & Corbin 1990, Spiggle 1994). Three themes were identified to surround third place value: 1) Place value as routine, 2) place value to socialize and 3) place value as home. The subsequent discussion will address each theme in detail and provide actual quotes wherever possible. Third place values were mostly influenced by the type of social ties (strong or weak) seniors had developed from the club. Findings from the study revealed that seniors‘ social interaction in the club resulted in either a strong social or weak social tie within the club members. Granovetter (1983) describes strong ties as networks between close friends and weak ties as network of acquaintances. Based on the type of social ties (strong or weak) it was of interest to explore whether seniors possessed different views on the value of the club. Thus, open ended questions including ―Why do you visit this club?, and Does club membership enable you to make close friends?‖, revealed that some seniors visited the club to predominantly keep up with their weekly schedule. Words like ―on Saturday I visit club A to play bowls then Sunday I go shopping with

my friends, on Tuesday I play cards in club Z I visit club X only to take bus trips‖ were used to express their routine value from the club.

In contrast to seniors seeking value from ―routine‖ were those seniors who visited the club only to chat, have fun and to socialize with club members. ―Socializing‖ represented the second major type of value. Words such as ―I visit this club only because my friends like to come here, or ―I visit this club to have a chat and a cookie with my friends‖ or ―I get camaraderie from this club‖ were used to express seniors‘ attachment towards their friends in the club rather than the club itself. Such members had strong ties with the club members and perceived the club to be a social space that enabled them to meet and engage with their friends.

Within the category of strong ties were seniors who had deep sense of affection towards the club and to its people. The place value for this group arose from the club being like ―home‖. Words such as ―without this club we will all fade away‖ or ―this club is my second home now‖ or ―people in this club are like my family‖ were used to express their deep sense of affection towards the club‖. Thus findings from our study confirm that although the club enabled seniors to expand their social networks, seniors visited the club with different purposes and consequently generated different types of place value from the club; Place value as routine, place value to socialize and place value as home.

Overall, this paper contributes to existing literature, which is very thin on place value but comprehensive on service value and brand value concepts (Bolton & Drew 1991, Crimmins 2003, Shun Yin Lam, Venkatesh Shankar, et al. 2004). We introduce the concept of ‗place value creation‘ and probe future research to explore the role of place value on loyalty, satisfaction and affective commitment towards a service place.

T3A.1: Sticky Choices in Unfiltered Sets

A. V. Muthukrishnan Hong Kong University of Science and Technology, Clearwater Bay, Kowloon, Hong Kong, China, Email: [email protected]

Luc Wathieu ESMT European School of Management and Technology, Schlossplatz 1, 10178 Berlin, Germany, Email: [email protected]

Through the random assignment of subjects, choice experiments seek to neutralize the effect of each subject‘s history in order to effectively highlight context effects. In real life, however, individual historical circumstances determine each consumer‘s sensitivity to contextual influences, and an important research agenda is to explore what historical choice circumstances contribute to the emergence of stable preference patterns. One line of work, including research on the endowment effect (e.g., Kahneman, Knetsch and Thaler, 1990) and on habituation (e.g., Wathieu 2004) indicates that experiences of past ownership reinforce preferences. Another line of research, to which the present paper belongs, focuses on contextual characteristics that increase the confidence with which consumers hold their expressed preferences. In a recent paper, Muthukrishnan and Wathieu (2007) have shown that increased consumer participation in the form of additional choice steps caused an experience of deliberation likely to foster preference persistence. Earlier research by Muthukrishnan (1995) showed how consumers develop persistent preference patterns in response to contextual ambiguity. There seems to be an emerging general theme that the present paper further reinforces: consumers tend to persist more confidently with preferences they have expressed in less guiding, more untidy, choice environments. This general contention might help us reflect on the ecological validity of static contextual effects obtained in the laboratory, and provide background for people in charge of designing choice environments for actual decision makers. In this paper, we study the effects in terms of preference persistence associated with the presence of dominated alternatives in the choice set. While Huber, Payne and Puto (1983) have described how one can influence choice by adding asymmetrically ―decoy‖ alternatives, the dynamic effects associated with selection in the presence of dominated alternatives have not been studied. The observation that rejecting dominated alternatives might build up confidence in choice might sound intuitive, but it goes against the other intuitive notion that dominated alternatives are necessarily irrelevant. H1: Rejecting dominated options increases the likelihood that the chosen option is chosen again in future choice contexts. One might question whether the effects of rejecting dominated alternatives deserve a specific investigation. Is the mechanism similar to an endowment effect? Is dominance really needed, or will extra trade-off choices induce the same pattern? In addition, dominated alternatives imply a superfluous editing stage, and such stages are already known to induce persistence. The following hypotheses, if true, justify the specific focus on rejecting dominated alternatives.

H1A: Rejecting dominated options increases the likelihood that the chosen option is chosen in future choice contexts, as compared to a situation of initial endowment. H1B: Rejecting dominated options increases the likelihood that the chosen option is chosen in future choice contexts, as compared to an initial situation involving a trade-off. H1C: Rejecting more dominated options further increases the likelihood that the chosen option is chosen again in future contexts, as compared to when fewer options are being rejected. H2: Rejecting dominated alternatives in one choice context can enhance confidence in choice and preference persistence in an adjacent context. To make this point we have a sequence of four experiments. The first experiment demonstrates the effect that receiving a preferred object makes it less persistent than choosing it against a dominated alternative. This experiment also shows that it‘s not just a matter of posing an act of choice but it does matter that the rejected alternative is a clearly dominated. Along the same line, the second experiment shows that rejecting more dominated alternatives is conducive to persistence, not only because it has passed a lot of tests, but domination matters. In the third and fourth experiment, we show that the persistence-building effect of choosing against a dominated alternative creates a mindset that is contagious on nearby choice areas. The added value of the fourth experiment is to show causality by having precedence.

T3A.2: An evaluation of microblogging as a marketing communication Platform

Gautam Ramdurai Ogilvy & Mather Advertising Email: [email protected]

Introduction Microblogging is a form of blogging that allows users to send brief updates to public and private networks. These updates are typically short in length (less than 200 characters) and can be submitted by a variety of means, including text messaging from mobile devices, instant messaging, email or the web. The short posts are uploaded to a microblogging service, then distributed to group members. All parties subscribing (or ‗following‘) to microblog are instantly notified, enabling groups to keep tabs on one another's activities in real time. Microblogging has been studied from a social perspective and a user appropriation perspective. Past research provides only an overview is available when looking at it in a marketing perspective. This work aims to analyze it in terms of a viable conversation marketing engine for any brands.

Microblogging with Twitter For the analysis, this paper uses twitter.com as a case in point. Twitter is the most popular microblogging service on the Internet, with the number of users approaching 2 million. The explosive growth and expansion of microblogging as a communication platform owes to the key characteristics representative of it. The following characteristics set microblogging apart from other social media technologies: Ease and Simplicity Signing up for the service is extremely simple and so is posting/updation. Hyperconnectivity Accessibility has been taken to new levels with the ability to update a microblog using a multitude of channels including SMS, IM, the web and the scores of Twitter applications built on its open API. Minimal Time Investment As opposed to other content generation activities, writing posts that are less than 140 characters in length takes very less mental effort and time. Speed and Real-Time Updation Updates from other users reach in real-time to a number of channels (including mobiles). This immediacy of communication has promoted Twitter as a tool for emergency communication.

Current use of microblogging in marketing There are a few brands that have already moved in to communicate with consumers and the world via Twitter. An analysis was done of the activity on Twitter accounts of 8 such brands. Each individual post was analyzed and classified. Each brand uses the microblogging service differently. Inherent patterns in the type of posts reflect the overall objective of the brand. The use of microblogs for marketing can be classified into three categories: Listen Before joining the conversation with consumers, brands must pay attention to what they are saying and understand them better in two ways: Passive: The marketer stays on the sidelines and monitors how consumers are engaging with his/her brand.

Active: Brands seek answers to specific questions about what the consumer wants. These answers have more value, since the people who are following a brand have already opted-in and have a high relevancy. Inform One of the important user intentions on Twitter is information seeking. This could take three forms: Promotion: Tweeting about a new product, offer or discuss existing products. E.g. DellOutlet gives exclusive discounts to Twitter users. Updation: New announcements, information that is related to the brand and the products. Syndication: Directing traffic to the company's homepage or any other page that might be relevant to the company and the user. Relate Generally preceded by the Listening exercise, since it is easier to begin a conversation since the basic premise has already been set. Responding: When the consumer has a direct query, or has made a statement that is relevant to the brand, a timely and relevant response establishes a two-way connection between brand and consumer. Serving: Here, the relationship value is purely service based through ad hoc troubleshooting and assistance. Measurement Based on our analysis different metrics can be devised to gauge the fulfillment of different marketing objectives. In the simplest of cases, the number of replies or responses from the brand's end can be an indicator of its engagement with the customer. Marketers should also monitor their tweet frequency (the number of posts in a given period of time) to avoid exceeding the signal-to-noise ratio.

Conclusion In the current attention economy, as structured messaging gives way to conversations, microblogging shows a potential arena for marketers to not just start these conversations but to nurture them for a long standing relationship with their customers

T3B.1: Exploring the Dynamics of Trade Show Effectiveness

Srinath Gopalakrishna, Professor of Marketing, David and July O‘Neal MBA Professor, University of Missouri, Columbia, MO 65211 (Presenting Author) email: [email protected]

Shrihari Sridhar, Doctoral Candidate in Marketing, University of Missouri, Columbia

Gary L. Lilien, Distinguished Research Professor of Management Science, Penn State University, University Park, PA 16802

Trade shows constitute an important part of the business-marketing communications mix. They account for 20-25% of the marketing budget in U.S and Europe (Stevens, 2005), offering enormous opportunities for buyer-seller interactions. Three-quarters of attendees at trade shows say they have some buying influence. The trade show industry is valued at $120 billion and organizers attracted 64 million attendees and 1.5 million exhibitors in 2007 (CEIR 2008). A noteworthy aspect is that the average firm exhibits at nearly 46 shows a year (Stevens 2005). Despite substantial expenditures on booth space, staff, promotions etc., these decisions are often based on ―gut feelings‖ (e.g. we expect to do well) or heuristics such as spending till the budget is exhausted. While the marketing literature has seen advances in optimal advertising planning models (e.g. Feichtinger et al 1994), there are large gaps in knowledge on tactical aspects of trade show planning. The goal of our paper is to help exhibitors make better decisions in this area. Specifically, we address how exhibitors can a) decide which shows to attend and b) how much to invest at those shows for a given planning horizon. We employ a two-step approach in our paper. First, we build a dynamic aggregate trade show response model. Extant research has treated a trade show as an isolated event i.e., the static response-models assume that past actions of the exhibiting firm have only contemporaneous effects (Gopalakrishna and Lilien 1995). However, the marketing literature dating from the classical theoretical models (Vidale and Wolfe 1957; Nerlove and Arrow 1962) acknowledges the prevalence of dynamic marketing effects. In our context, the effectiveness of an exhibitor‘s participation at a trade show may be related to its past trade show actions for several reasons: (a) Many attendees are likely to have attended previous shows in the same industry or may have visited the firm‘s booth at a previous show b) First-time participants at the current show might demonstrate an indirect carryover effect through word-of-mouth by contact with their network of colleagues or c) The firm's presence at a show may be highlighted by the trade press and show management which may influence the behavior of subsequent attendees. In sum, it is plausible that there may be a carry-over effect of exhibiting. Our dynamic model is similar to Nerlove-Arrow (1962) i.e. we posit that marketing actions at a show generate goodwill for an exhibitor. Goodwill decays if the exhibitor makes no appearance at the subsequent show but is enhanced if there is participation. The goodwill (unobserved) influences the number of leads that an exhibitor generates at a show. Our model has two important differences from the classic model. First, trade shows occur at irregular time intervals unlike typical multimedia models; thus our model has to be estimated using irregular time series methods. Second, shows vary considerably in the number of attendees they attract, e.g. in the IT

industry, they range from 5,000 - 50,000. We posit that exhibiting at a larger show (as defined by higher attendance) might increase a marketing variable‘s effectiveness. We estimate our model based on data from a large firm in the IT industry. Our data spans over 300 trade show appearances by the firm during the years 2004-2007. Using a Kalman Filter approach (e.g. Xie et al 1997), we find statistical support for our dynamic model. Specifically, we find that the carry-over effect, effects of booth space on goodwill and the interaction effect between attendance and booth space are all statistically significant. In addition, we find that our model fits the data better than a static model and forecasts adequately. We employ these estimates in developing a decision support system (DSS) that can enable exhibitors to make optimal planning decisions. Towards this end, we integrate our forecasting model with the solutions from a finite horizon optimal control problem. This can offer mathematical guidelines on selecting the optimal number of shows and the expenditure at each show selected in a planning horizon (e.g. a quarter). Preliminary results suggest that it may be optimal for exhibitors to skip a few shows in their consideration set and still do better. In summary, we make contributions to the trade show literature, by providing the first known documentation of trade show carryover effects and furnish normative guidance based on model- based evidence for important tactical decisions. We also contribute to the literature on dynamic marketing models by introducing a technique to handle the irregular time-series aspect in a new application area.

T3B.2: Influence Of Personality Traits On Goal Orientation And Performance Of Salespeople– A Conceptual Analysis

Binu Markose PhD Research Scholar Dept. of Management Studies Indian Institute of Technology Madras Chennai – 600 036. Email: binu_markose @ rediffmail.com

Dr. S. Jayachandran Professor (Marketing Management) Dept. of Management Studies Indian Institute of Technology Madras Chennai – 600 036. Email: sjc @ iitm.ac.in

The two objectives of this study are: 1. To analyze the influence of the big five personality traits on goal orientations of salespeople. 2. To analyze the influence of the big five personality traits on performance of salespeople. The work by Sujan et al. (1994) brings into sharp focus two distinct goal orientations of salespeople, learning and performance. Kohli et al. (1998) made some significant contributions to this emerging topic. Salespeople with a learning orientation have a strong desire to improve and master their selling skills and abilities continually and view achievement situations as opportunities to improve their competence (Dweck and Leggett 1988). In contrast, salespeople with a performance orientation focus on performing well because they see good performance as a means to obtaining extrinsic awards from others (e.g., Supervisors). Although there is considerable stability in individual‘s learning and performance goals, environmental conditions can make a learning or performance goal more salient. Thus, these motivational orientations are considered to be both traits (i.e., stable dispositions) and states (i.e., situationally influenced conditions) (Amabile 1983, Ames and Archer 1988). Even though situations may influence these orientations, work in psychology suggests that the orientations are relatively stable and that individuals may possess varying degrees of each orientation (Sujan et al. 1994, Vandewalle and Cummings 1997). This indicates that a significant slice of goal orientation of an individual can be considered as stable which indicates that goal orientation in an individual is inherent in nature. Hence, it can be inferred that there is significant influence of personality traits in the formation of goal orientation of an individual. Harris et al. (2005) studied the influence of five personality traits, viz. need for learning, materialism, competitiveness, conscientiousness and openness to experience on these orientations. The authors reported that some of these traits were found influencing the goal orientation of salespeople. Conscientiousness, need for learning, and materialism significantly influence learning orientation whereas competitiveness, materialism, and openness to experience significantly influence performance orientation. But the authors didn‘t consider all ―big five personality traits‖ viz. conscientiousness, emotional stability, 90

agreeableness, extraversion and openness to experience called the five factor model which are considered to be the core traits ( Norman 1963, Luthans 2002). Hence, it will throw more light into the relationship between personality traits and goal orientation of salespeople from the analysis - Influence of ―big five personality traits‖ on the goal orientation of salespeople. Sales managers base many of their most important decisions (e.g., promotions, transfers, compensation, providing feedback, selecting training programmes for salespeople, and making terminations) on their overall evaluations of the performance of their sales personnel. Salespeople can be evaluated in three stages – input, process or output. When salespeople are evaluated at output stage by monitoring salespeople‘s sales, gross profits and so on, the evaluation is referred to as output performance, where as when the evaluation is at process stage by monitoring salespeople‘s selling strategies, work procedures and so on, the evaluation is referred to as behavioural performance. The evaluation of salespeople at the input stage itself may have a positive effect on the subsequent evaluation at process and output stages. On this context, whether to evaluate salespeople based on their personality traits at the input stage is an interesting question. Because it is generally believed that salespeople with good personality will produce better results. In a meta analysis by Barrick and Mount (1991), the findings revealed that the big five personality variables have numerous implications for research and practice in personnel psychology, especially in the subfields of personnel selection, training and development, and performance appraisal. Hence the study of the influence of these personality variables on the performance of salespeople will be a contribution to the sales arena. The two aspects of salesperson‘s performance viz. output performance and behavioural performance are considered in the analysis since research shows that both dimensions of performance have considerable importance in the evaluation of salesperson‘s performance and in the organization‘s effectiveness (Kohli and Jaworski 1994, Oliver and Anderson 1995, Grant and Cravens 1996, Baldauf and Cravens 1999).

T3B.3: Quality And Quantity- The Case For Multiple Channels

Ranjan Banerjee, Carlson School of Management ([email protected]), Kersi Antia, Wisconsin School of Business Email:[email protected].

Shantanu Dutta, Marshall School of Business Email: [email protected].

Faced with ever-increasing competition and fragmenting markets, firms‘ use of multiple channels – the simultaneous use of owned and independent channel intermediaries within a market – has become more the norm than the exception. Since the early 90‘s, more than 85% of firms have relied on multiple channels for their go-to-market strategy (Easingwood and Storey 1996). As stated by Coughlan, Anderson, Stern, and El-Ansary (2006, p.257), ―…multiple channels are a way to make markets: Suppliers and customers can find each other more easily and match their needs to channel types.‖ Despite the increasing importance of multiple channels, there are still gaps in our understanding of the antecedents of multiple channels. Existing explanations have centered around the ability of multiple channels to cater to alternative customer segments and enable firms to keep pace with market growth (Coughlan et al 2006; Rangan 1990; Frazier 1999). These explanations do not adequately cater to the widely prevalent phenomenon of firms deploying a mixture of company owned and independent stores which do not differ in terms of offering and price. It is not uncommon for firms to deploy multiple channels in business to consumer contexts where there is no explicit customer segmentation There is thus an imperative to explain the existence of multiple channels when customers are allowed to choose between channels, and the channels are not necessarily segment specific. Second, there is limited empirical evidence on the performance implications of specific channel structures. Existing empirical evidence has focused either on the antecedents of channel governance (Anderson,1985, John and Weitz,1990) or on the performance of a specific channel configuration (Aulakh and Kotabe, 1997, Srinivasan, 2006). Evidence is scant on the relative performance of company owned and independent channels within a channel configuration. This question is particularly germane when we consider the twin objectives that firms seek to achieve through channels of acquisition: a) Acquisition goals- these pertain to acquiring customers in large volumes, and catering to the growth potential of the market. b) Retention goals-these pertain to enhancing the profitability per acquired customer. These goals are achieved through enhancing the longevity and depth of usage of the customer base. It is apparent that when these goals are simultaneously pursued, multiple channels should be deployed only if no single channel structure is dominant in terms of performance on both goals. There is thus a need to assess the relative performance of company owned and independent channels on acquisition and retention goals. The present study addresses both the preceding issues, and makes two key contributions to our understanding of multiple channels: First, we clearly delineate firms‘ disparate yet simultaneously pursued objectives – acquisition (number of customers) and retention (revenues per customer) goals. We then draw on existing governance-related theory to suggest that vertically integrated channels will tend to outperform independent channels on imperfectly

measurable revenue enhancing tasks which require greater supervision and control. Conversely, independent channels are posited to be easier to set up and expand, amenable to incentive based governance, and are thus likely to outperform firms‘ vertically integrated channels with respect to the volume of customers acquired. If supported, the preceding argument would imply that company owned channels, by their actions, better serve the purpose of enhancement of revenues per acquired customer (quality), whereas independent channels are better geared to acquire a larger number of customers (quantity). This is significant, in that it suggests a differential capability on the part of each channel type with respect to quality and quantity goals. This contention would only be supported if we could test the performance of alternative channel governance structures on both these goals. This is the second key contribution of our study. Ours is, to the best of our knowledge, the first study to empirically explore the performance of company owned and independent channels with regard to quality and quantity goals. A unique feature of our data is that we are able to assess performance at an individual channel level, and establish support for our contention that a ‗portfolio‘ of channels is employed by firms to achieve a balance between quality and quantity goals. We leverage a unique dataset on customers acquired by two inbound retail channels of a mobile telephony provider in India, the world‘s fastest growing market for mobile telephony, to explore the performance implications of multiple channels. We focus on a specific channel descriptor, governance (whether a channel is company owned or not) and explore the impact of governance on volume of customer acquisition and revenue per customer. Our context is a subscription services context, where customers enroll in the service at a point in time and use the service over time. When a customer exits the service, the firm derives no further revenues from the customer. Our context is also a concurrent channels context, in that the focal firm uses a mix of own and independent channels that transact in the same geography and sell the same products (Sa Vinhas and Anderson, 2005). Thus the channels do not explicitly cater to alternative customer segments, and retail customers can choose between company owned and independent stores which offer the same products. Using a multivariate mixed effects regression with appropriate controls for unobserved heterogeneity, we show that the governance properties of the channel impact positively on customer usage, billing conditional on usage, and tenure. Conversely, we show that governance adversely impacts a channel‘s contribution to the total volume of customers acquired. We use unique features of our data set to explore possible alternative explanations for our findings, and show that our hypothesized effects persist even after accounting for the impact of these alternative explanations.

T4A.1: An Integrative Model Of Package Size Propensity

Amit K Ghosh Associate Professor Cleveland State University Email: [email protected]

The U.S. consumer packaged goods (CPG) industry is characterized by fierce competition among firms attempting to dominate an increasingly mature marketplace. Consequently, the CPG marketplace has become more complex for consumers who are exposed to an ever- increasing array of product and packaging options along with constantly changing prices and promotions. How do consumers react to the various product options? What are their motivations and how can we target them? What strategies should be employed and how would it impact firm financials? These research questions have drawn considerable attention from academics and practitioners and are the focus of this study. In this article, we research a consumer‘s propensity to purchase a package size or package size propensity. While many aspects of package size propensity have been researched, limitations include use of experimental or attitudinal data in some papers, lack of behavioral characteristics and promotional variables in some models, and inadequate conceptual model that helps us understand why consumer characteristics might impact package size propensity.

Our research purpose is to help marketers gain a deeper understanding of factors of package size propensity by formulating a model that help marketers understand the motivation underlying the correlates of package size propensity. We believe that such a model can also be used to formulate marketing strategy and to predict consumer responses. We review prior research and address some of the limitations in the past research in order to formulate an integrative model. A conceptual model based on the ―economics of information,‖ or the benefits and costs of information search by consumers, is developed that links behavioral information (e.g., number of visits to store), response to marketing mix variables (e.g., type of promotion), and demographic surrogates (e.g., income) of consumers to package size propensity through the benefits and costs of information search.

The model and the theoretical framework is empirically validated using scanner consumer panel data provided by Information Resources Inc. The regression model is significant and most the parameters are in the expected direction – indicating that the model probably does not have specification error and is likely to be internally consistent. The large and balanced sample of over 5,600 household across the US is likely to allay fears about external validity. The adjusted r-square of 47% is over 2.5 times higher compared to similar studies conducted using regression analysis. The high explanatory power of the model demonstrates the utility of including responses to marketing mix as well as behavioral variables in the analysis. For promotional elements, the place where the information was processed by consumers also seems to impact behavior. While many of the demographic variables are statistically significant, relatively, they have considerably lower impact compared to the other variables on the dependent variable. Overall, six out of the eight demographic surrogates are associated with package size propensity. The results also suggest that there could be imperfect market performance due to low price

awareness in the constantly changing CPG marketplace and that consumers in the CPG market probably use volume discount heuristic in making choice decisions.

T4A.2 : Factors That Add Value At The Supplier-Customer Interface:A Case Of The Fresh Vegetables And Fruits Industry.

Ms .K .Suma Rao, PES School of Engineering (PESSE), Bangalore Email: [email protected]

A report by the Austrade on Agribusiness in India has observed that ―although India is the second largest producer of fruits and vegetables in the world, an estimated one-third of the combined annual crop is wasted or destroyed due to poor post- harvest techniques and inadequate transportation, refrigeration and processing infrastructure. Only 2 percent (approximately) of the total produce is processed commercially.‖ Also there is minimal value- addition all along the supply chain for fresh vegetables apart from the small scale of operations. A post liberalization phenomenon is the development of the organized retailing with the concept of supermarkets and shopping malls, particularly in South India. The Indian Government has also removed the restrictions on the import of vegetables and fruits leading to intense competition. In this context the study of the supply chain for fresh fruits and vegetables gives ample scope for creating better value for various stakeholders. Competitive strategy may be defined as a set of customer needs that a firm would satisfy through its products and services. (Michael E.Porter). For products such as fresh fruits and vegetables the strategy would be to ensure the availability of the right product at the right time, at the right place and at reasonable prices. ―This strategy dictates that the ideal supply chain will emphasize efficiency but also maintain an adequate level of responsiveness.‖ ( Sunil Chopra ;Peter Meindl) The primary objective of the supply chain operations, therefore, would be to maximize the overall value generated ie the difference between what the final product is worth to the customer and costs the supply chain incurs to fulfill the customer‘s request. To achieve this, the sub objectives will include: What should be the structure or the design of the supply chain that is appropriate for perishable products like fresh vegetables and fruits? What are the essential processes that need to be performed at each stage of the supply chain such that Supply Chain responsiveness and efficiency are adequately addressed? How is the term value interpreted for perishables like fruits and vegetables, among large organized units? What are the components of costs incurred and corresponding revenues generated and will these maximize the value created along the supply chain?

PRELIMINARY OBSERVATIONS: The current study requires a good understanding of the buying pattern and service levels required by the bulk buyers of the products. As several parties are involved this in reality refers to a supply chain network The appropriate design of a firm‘s supply chain will depend on the Customer needs reflected by selected categories of retail organizations. The specific role played by the stages involved. Likely impact on costs.

In certain cases manufacturers respond to an order (pull strategy) while in other cases the producer has a stock of inventory from which he fulfills the orders (push strategy). From a process cycle perspective the supply chain includes four major process cycles viz: Customer order cycle, Replenishment cycle, manufacturing cycle, and Procurement cycle These when combined form three strategic key areas viz: Customer Relationship Management (interface between the buyer and supplier); Internal Supply Chain Management (interface between the organization sub groups) and the Supplier relationship management (interface between the manufacturer and the supplier) The sample of processes covered under each of the heads would be as follows: CRM ISCM SRM

1. Generate demand 1. Plan internal prod.& Selection of suppliers from the retailers storage cap1 2. Facilitate placement 2. Prepare DD & SS 2.Negotiate on price and of orders plans for various delivery terms with products suppliers 3. Tracking of orders 3. Fulfill actual orders 3.Sharing of DD and SS plans with suppliers 4. Marketing process 4.Locationof warehouses 4. Placement of orders. 5. Pricing process 5. Size of warehouse 5. Placement of replenishment orders.

METHODOLOGY: This includes study of secondary data sources of the fresh fruits and vegetable industry .Specifically the status of the industry in emerging markets would be evaluated and their relevance to the Indian market would be examined. In addition, primary data based on in-depth interviews would be elicited from a sample of 8-10 different categories of organized retail units in Bangalore. Additionally a content analysis of the concept of value would also be elicited from the field study.

CONCLUSIONS: This will include: Viable supply chain design options for the products under study. Identification of important value adding activities and the key area that would provide a competitive advantage in this industry. Key processes for effective management of the supply chain.

T4A.3: A Study On Shopping Styles In Garment Purchase And Comparison Of Multibrand & Exclusive Brand Retail Outlets.

Prof.D.Malmarugan Associate Professor Sadar Vallbhbhai Patel Institute of Textiles Management Email id: [email protected]

Need for the study: The well-known exclusive brand outlets of garments are becoming a threat to the Multi brand outlets. At the same time, multibrand outlets dominate the scene by return of investment conversion. Values have become especially important to branded outlet in order to stay in the game. So, there is a research is required to handle retail decisions in a competitive context. A study is needed to identify the consumer shopping styles for the garment purchase. This research also focuses on to the consumer preferences towards Multibrand outlet and Exclusive brand outlet. Objectives: 1) To identify the various parameters shopping styles of consumer behavior towards garment purchase according to their demographic profile. 2).Identify the type of retail outlet consumers preferred. Methodology: A descriptive study was conducted to achieve the objectives with systematic sampling method. The study was conducted on 300 respondents focused on two cities, Coimbatore in Tamil Nadu and Kochi in Kerala state. The Systematic Sampling design has been used for the proposed study. Instrument to be used for collecting data is questionnaire method. A pilot study has tested in order to preparing the questionnaire. Following types of questions are used in the questionnaire. Open end questions Multiple choice questions Semantic differential scale

Limitations of the study: The areas of study are limited only two cities; the customers in other large cities may not have the same style in the selected areas. The people in rural areas of the selected cities are not included for sample as they are not interested in branding Findings and Implications: This research reveals that the demographic features of consumers such as age, income, gender, occupation and place are affecting their shopping styles for garments. The study helps to understand the shopping styles of the consumer and how it affects their choice of retail outlet. This study enhances the market knowledge about the consumer preferences and the formats of various retail outlets. The study recommended that exclusive brand outlets should provide more promotional activities about its product quality and trend to attract customers. They can give more awareness related to price range as the customer hesitates to shop from branded outlets. Exclusive brand outlets can fill the gap in the category of female exclusive brand shops. In the current scenario of advent of luxurious malls and various retail formats, this study will help the market researchers to get an outlook about consumer behavior related to the retail formats. Keywords: Shopping styles, Multi Brand Outlets, Exclusive Brand Outlets

T4B.1: The Trend towards Marketing „Green Energy‟

Dr. R. Venkatesh, Faculty Member, IBS, Chennai Email:[email protected]

Against a grim background of atmospheric pollution and environmental degradation the need for devising and making use of alternative and renewable energy sources has become urgent. The marketing of such energy (‗green energy‘) has also assumed vital importance and many corporates are now engaged in addressing this issue. These developments constitute a real integration of the concept of creating, communicating, and delivering value. In both the Western countries and the developing world, governments are paying greater attention to renewable energy. Several industrial units have come up with innovative technologies to tap the alternative energy sources like solar, wind, and wave or tidal energy. Pro- active pursuit of business options in marketing the equipment is also being seen in the U.S., Europe and Asia. The manufacture and marketing of these products (solar panels, wind turbines etc.,) has picked up momentum in India. Sustainable development is possible only by the use of alternative energy sources. The Confederation of Indian Industry (CII) has been spearheading the efforts in this direction. The CII Sohrabji Godrej Green Business Centre (CII – Godrej GBC), for example, is engaged in promoting concept marketing in the area of green energy and power. It is now a centre of excellence. It is worth noting in this context that ―green‖ denotes the ―voluntary pursuit of any activity that encompasses concern for energy efficiency, environmental management, renewable energy, waste management, and recycling.‖ There is recognition of the fact that any pollution is a form of economic waste. A wide range of products and markets including technologies in alternative energy like solar, wind or tidel power constitute ―clean technology.‖ Advanced recycling mechanisms, solar power projects for residential and commercial use, smart grid technologies for the utility power grids, and alternative fuels such as bio-diesel and ethanol come under this rubric. The market potential for clean technology in India is large. Tapping this has become imperative in the context of energy demand for outstripping the supply and the country importing nearly 75% of crude oil costing U.S. $ 56.4 billion. The financing of renewable energy projects is managed by lending agencies and banks. The ‗Yes Bank‘ has taken a lead here. A number of incentives for investment in clean energy are made available. These include tax concessions for industries using wind and solar energy devices. It is expected that marketing of green energy will be spurred further in the near future. Undoubtedly, this calls for a lot of entrepreneurial spirit; already fresh ideas are emerging along with new business models. The diversity must also be noted – this covers stand-alone projects and projects within operating companies. The private sector has been responding to the challenge by investing in wind energy. The key drivers in this endeavor are: progressive policy and infrastructure support, experience of the last two decades and fiscal incentives like accelerated depreciation and income tax benefits. Suzlon, an integrated wind turbine manufacturer has production facilities in India, China, USA, and Europe. The company has brought about a paradigm shift in India‘s wing energy market with an ‗End-to-End Solution‘ enabling hundreds of customers (small/ medium/ large

enterprises, public sector companies, and even individuals) to set up their own wind energy products. Suzlon has consolidated its market share all over the world and maintains a formidable leadership in the Indian market for the last nine years. The manufacture an marketing of energy saving solar water heating systems form the core business of enterprises like Emmvee Solar Systems Pvt. Ltd., having a turnover of Rs.65 crore. Tata BP Solar India Ltd. manufactures and supplies solar photovoltaic and solar thermal products/ solutions. The company will be reaching a capacity of 300MW by the year 2010. A joint venture between Tata Power Company, a pioneer in the power sector and BP Solar, a world renowned solar enterprise, it has a fully integrated solar manufacturing plant including cell and modular assembly and Balance of systems all at one site. The total turn over comes to Rs.910 crore. ORB Energy Pvt. Ltd. specializes in the design, manufacture, supply, and installation of solar photovoltaic cells and solar thermal energy. The products include solar PV panels, home lights, street lights, power packs, solar rooftop integrated systems and high efficiency inverters. With a modest turn over of Rs.15 crore, the company is doing its best to market the equipment and improve its business as a turn-key solar solution provider. An efficient networking of Research and Development (R&D) institutions and venture capitalists for promoting eco-friendly products is now discernible. Creen Business Incubation at CII- Godrej GBC aims at hatching technology-led follows a pro-active pursuit of business opportunities. India‘s new age private sector bank, Yes Bank, with its vision of ―responsible banking‖ wants to differentiate itself in the market place on a strong ‗sustainability mandate‘. It is the first Indian bank to become a signatory with the United Nations Environment Programme (UNEP) for financial initiative. The bank is promoting ‗green energy‘ with a commitment to corporate social responsibility (CSR). There are other bright features in the area of green energy. ―Light up every village with LED lights‖ is the motto of Lifeway Solar Devices Pvt. Ltd. based in Cochin, Kerala. The company with its aim of promoting solar power in rural India manufactures and markets solar lanterns, solar security fencing, and LED table lamps. It practises CSR through ‗Kudumbashree‘, a poverty alleviation scheme, a success story in Kerala. Many unemployed women are trained in servicing solar lanterns and take the marketing message to the villages.

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T4B.2: When two is company, is three a crowd?

Prof Rajan Mani,IBS,Chennai Email: [email protected];[email protected]

This paper seeks to describe a research study just started, which itself is an extension of a presentation made at GLIM – NASMEI 2007. The earlier study focused on the emerging situation in Chennai in 2005– 2007 where an English newspaper entrenched for about 130 years – The Hindu – was shaken, if not stirred, by the advent of The Deccan Chronicle in this Southern metropolis. The latter was able to carve out an approximate share of one-third of the English newspaper market within this period, according to our study as well as independent reports. The present study seeks to carry the research further, now that one more all India newspaper, The Times of India has also launched a Chennai edition. Also, certain aspects which were not probed in the earlier study are proposed to be taken up this time. This time around, we shall try to factor in dimensions such as multiple readership of newspapers, especially English newspapers and vernacular papers, apart from trying to understand the dynamics of switching. We would like to see if we can gather insights on how many people have switched newspapers, their motivations for doing so and their profile. The study itself is just moving from the planning to the execution stage. Like the earlier study, a couple of students at the B-school where I teach are helping me this time too and we have finished deciding the aspects to be studied, the sampling plan & size, the format of the questionnaire, who will collect the information, how and when .. et al. At the moment the pilot study is over, small modifications to the questionnaire have been made and data collection has started. To help in profiling the respondents and especially to seek to identify any differences in readers of the various newspapers as well as their habits and tastes, information on the following aspects will be collected – age, gender, education, occupation and income. The next paragraph gives more details of the other information being collected. We start with ascertaining the main medium used to access news – press, television, radio or the Internet. Next we shall collect information on reading habits such as the time spent to read the paper, the number of papers bought in the household, the types of newspapers bought (general or business) and the different languages (English or otherwise) of the newspaper(s) bought. We shall also ask the respondents to rate the importance of certain stated features for an ideal newspaper. This gives us a platform to find out whether the respondent has either changed his or her English newspaper or added another such newspaper in the last four years (since the Deccan Chronicle was launched in Chennai). We will then try to probe the reasons for the change. We hope this will give us enough inputs to analyse differences in profile of a) readers of the various English general papers published from Chennai and b) those who have either changed their newspaper or added another newspaper since the DC & the TOI entered Chennai. Since we also intend to collect information on the reasons for the change, we hope to collect information on the various segments of the newspaper reading population preferring the various papers published from Chennai. By the time Great Lakes-NASMEI Conference II takes place in December 2008, we should have been able to get enough pointers to these aspects.

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T4B.3: Ambush Marketing: Attack and Counter-Attack Strategies”

Dr. V.J. Sivakumar, M.Sc., M.B.A., Ph.D. Email: [email protected]; [email protected]

The paper looks into the concept of marketing, which has picked up in the last few years because of the prominence of the sporting events, known as Ambush Marketing. It discusses why Ambush Marketing is so popular and what are the strategies, which make it such a potent tool for companies? The paper also looks at the pros and cons, the ethical and legal issues, which are associated with such kind of tactics. The most important feature of the paper is that it dwells into the strategies which a company using Ambush marketing would employ. By understanding the strategies employed by the Ambush Marketers, the paper then develops a framework and suggests strategies which firms and event organizers should adopt to counter the effect of Ambush Marketing, or in other words ambush the ambush marketers, by taking their main weapon away from them. If the strategies are carefully implemented it would be useful for understanding the motives and strategies of both parties, which would be involved, and will further help to maximize there advantage in the market space by either using ‗Ambush Marketing‘ or by countering ‗Ambushers‘.

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