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Exploring impact of selected marketing strategies on the brand differentiation
Abstract
The objective of this study is to determine the role of marketing strategies in brand differentiation. It is a primary data research where data was collected through questionnaire. For analysing purpose, AMOS and SPSS software have been used. A convenient sampling method was applied to select the respondents. The EFA is applied to construct the study dimensions. The validity and reliability were testing using the CFA outcomes. To test the hypotheses, the structural equation modelling was used. The study found that, there is a positive and direct impact between marketing innovations; customer-value based pricing, creative advertising, labelling and brand differentiation. Theoretically, the results can be used as a start point for making deep research in the same area. Practically, the results provide marketing managers with many suggestions for improving marketing strategies. The study results are limited only to the consumers in, small geographic area, Ibb town, Yemen.
... Scale in this context refers to the need for a product to be able to sell in large volumes, thus acting as a scale effect. Differentiation means that the brand needs to have its own identity to be able to compete in a highly competitive market [2]. In order to achieve this goal, Tims China, as a foreign brand, is striving to enter the Chinese market and start the process of localization while retaining its own characteristics, using a combination of localization and differentiation to promote the brand's position in China's fiercely competitive coffee market [3]. ...
In recent years, China's coffee market has been in a state of fierce competition, and in addition to brands such as Starbucks, which have long occupied a large market share, some new brands are also actively exploring their own paths of development. Among them, Tims Hortons China ("Tims China"), as a coffee brand from Canada, whose entry into China's coffee market really started in 2019, but according to the "2023 China's Urban Coffee Development Report," Tims China has, in just four years, already become the No. 3 coffee shop chain brand in China. The rapidity of its development path has caught the attention of many. In this paper, we will explore how Tims China, as a foreign coffee brand, has been able to position itself in the fiercely competitive Chinese coffee market through a strategy of scale and differentiation, and has been able to grow and expand quickly. By summarizing Tims' development strategy, we can provide references and lessons for the development of the business.
... Consumers anticipate expedited product delivery in online shopping as compared to brick-and-mortar stores, as well as punctual delivery at their preferred time. These are crucial factors that contribute to consumer satisfaction in utilizing the internet as a shopping tool, as timely and dependable delivery is highly valued [15], [22], [27]- [34]. The correlation between time or effort savings and purchase intentions would be amplified [35]. ...
Purpose: This study is going to contribute to explain the existence audit delay occur due to information risk because of conflict interest between management and shareholders.
Methodology/approach: Non-financial firms listed on the Indonesia Stock Exchange in 2020 constitute the population of this study. Out of 58 company we are going to take 30 company which will be in the Consumer Goods Industry. Secondary data were utilized for this study. Which were examined using descriptive statistical analysis, classical assumption techniques, multiple linear regression analysis, coefficient of determination R2 and t test, Normality test, Multicollinearity Test, and Heteroscedasticity Test.
Results/findings: Based on the results of the analysis that has been carried out, it can be concluded that the variables shareholders (X1) and management (X2) have no effect on audit delay.
Limitations: The limitations of this research are (1) this study only uses a number of research samples from Consumer Goods Industry listed on the IDX in 2020) .(2) limited time in conducting research.
Contribution: This study is going to contribute to explain the existence audit delay occur due to information risk because of conflict interest between management and shareholders.
Novelty: So for future researchers it is hoped that they can conduct research by adding contingent asset variables or other factors that can influence the determination of audit delay. In addition, adding samples in a wider scope of sectors so that they can be generalized to all companies.
The retail sector hires more females than males which is a ratio of 60:40 and it is noted that more women than men start their careers in retail. It is also observed that most females simply stop at middle management position once they have children. However, there are also a number of them who serve on the retail operating boards. But the difficulties women face, determined to be senior executives are higher than those faced by men, both at personal and professional front. Retail wages for females in relatively junior positions are another problem which is quite low. Therefore, often they are not worth returning to work after having a baby. Thus there is a drain of new talent. Further a gap in career also for women makes it very hard to even get back to a ladder. Often laddies are married to well settled working men who are well networked. These networking opportunities provide a useful chance to help create connections. Nevertheless, the wives of so many men in top positions do not work so that they are free to look after kids. Woman are questioned about their dedication to her kids. The other side of the many stories is for many women average parental leave of around six to nine months is not a choice particularly for women who would like to stay in their leadership positions. To these women many questions to ask (whether effort is worth it). Therefore, women are in dilemma whether to pursue career or opt for staying at home to manage kids. Keywords: perception, ladies’ touch, plans in retaining females employees, Retailing
This study aims to investigate the development of ‘marketing innovation’ defined as the implementation of new marketing practices involving significant changes in the design, distribution, promotion or pricing of a product or service. We conduct a systematic review to provide conceptual, methodological and thematic guidance for scholars interested in studying marketing innovation. Our findings suggest while marketing innovation is often merged with the dominant technological focus underpinning product or service innovation, there is a growing trend to consider the innovation potential offered by the development of new distribution channels, branding strategies, communication types or pricing mechanisms. Digitisation, a key driver for marketing innovation, enables new communication methods, branding strategies, offering designs, and transaction settings. There is a growing trend to focus on cocreation, service-dominant logic and user community perspectives.
The role of brand value in driving brand competitiveness has recently received attention from marketing scholars like Winzar, Baumann, and Chu (2018). From the perspectives of marketing and strategic orientation, we propose and test a framework that depicts the effects of these variables on brand competitiveness. Development of the framework was achieved by synthesising existing research from the marketing and management streams. A convenience sample of 374 retailers who worked with the brand as its business customers completed a survey questionnaire. Structural Equation Modelling (SEM) was employed to test the proposed model. We found that brand value, created for business customers, indirectly enhances brand competitiveness through marketing orientation, albeit not directly. Moreover, brand differentiation directly and positively influences brand competitiveness in addition to building brand value. Our study is one of the initial attempts to explore the capability of brand value to bring together market orientation and strategic orientation for brand competitiveness and also extend the periphery of current knowledge about the variables that drive the competitiveness of a brand.
The authors reflect on the research reported in their 1989 article that won the O'Dell award, the process of publishing that research, and the subsequent research that has grown out of it.
Purpose
This paper aims to further understand how firms transform external information into marketing innovation. The specific aim is to analyse the mediating role of product innovation and organizational innovation in the relationship between external information and marketing innovation.
Design/methodology/approach
The study builds on the 2012 database Technological Innovation Panel (PITEC) with a sample of 994 manufacturing firms. The data are analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM).
Findings
The results show how external information obtained about relationships with suppliers, customers and competitors leads to marketing innovation. The study demonstrates the mediating effects of product innovation and organizational innovation on the relationship between external information and marketing innovation.
Practical implications
Firms should utilize external information flows to innovate in both their products and organization as a prerequisite to marketing innovation.
Originality/value
This paper provides linkages between perspectives of networks, innovation and marketing to better understand the background of the least studied dimension of innovation -marketing innovation-. The main contribution is to explain how firms use external information to achieve marketing innovation through product and organizational innovation.
This study examined the effect of pricing strategies on the purchase of consumer goods. Also examined in this research is the effect of internet (online presence) on informed purchase decision. The research intended to answer questions on the extent to which competitor's price affects purchase of products, how customers perceive the value-based pricing concept of firms and the extent to which online pricing inform customer purchase decision. This paper being descriptive and historical relied heavily on secondary sources of information. The research utilized a descriptive and historical method and relied heavily and solely on secondary instruments as sources of data. Findings from the data obtained indicate that consumers have a perception of value reflected in prices of firms’ products. It also shows that competitors price affect the purchase of firm products and that online pricing informs and affects purchase decision. This study contributes to knowledge in series of issues associated with pricing strategies and purchase decision process. This research recommends that as much as firms should focus on communicating value to customers through prices, firms should also be on the watch for competitor’s prices and examine how much it affects purchase of their products.
In this article, we provide guidance for substantive researchers on the use of structural equation modeling in practice for theory testing and development. We present a comprehensive, two-step modeling approach that employs a series of nested models and sequential chi-square difference tests. We discuss the comparative advantages of this approach over a one-step approach. Considerations in specification, assessment of fit, and respecification of measurement models using confirmatory factor analysis are reviewed. As background to the two-step approach, the distinction between exploratory and confirmatory analysis, the distinction between complementary approaches for theory testing versus predictive application, and some developments in estimation methods also are discussed.
The authors consider the effects of three marketing communication activities on nonproduct based differentiation. Specifically, they examine whether advertising, sales force, and promotion activities increase a firm's ability to differentiate and thus shield itself from future price competition. They suggest that own-price elasticity represents a measure of differentiation and examine the effects of marketing communication activities on own-price elasticities for a large number of consumer (durable.and nondurable) businesses. They make a series of predictions about future differentiation outcomes based on the likely uniqueness of the communication message. The obtained results are compatible with their basic premise that, by providing unique and positive messages, a firm can insulate itself from future price competition, as witnessed by less negative future price elasticities. Conversely, results indicate that nonunique messages can decrease future differentiation, for example, price promotions for firms that price above the industry average lead to more negative future price elasticities.
This study explores the relationships between selected marketing mix elements and the creation of brand equity. The authors
propose a conceptual framework in which marketing elements are related to the dimensions of brand equity, that is, perceived
quality, brand loyalty, and brand associations combined with brand awareness. These dimensions are then related to brand equity.
The empirical tests using a structural equation model support the research hypotheses. The results show that frequent price
promotions, such as price deals, are related to low brand equity, whereas high advertising spending, high price, good store
image, and high distribution intensity are related to high brand equity.
This study examines the relationships among brand identity, brand image, and brand preference in the context of cyber (pure online) and offline-based extension (traditional brick-and-mortar to online) retail brands over time. We test a conceptual model with survey data gathered over three time periods. Our results show that offline-based extension brands have an advantage over cyber brands when it comes to translating a brand identity into a successful brand image, especially in the early Internet stages (i.e., introduction and elaboration stages). Offline-based extension brands gain positive spillover effects from their offline-based counterparts, but such effects take time, and are not evident in the early Internet stage. Both types of brands have to work hard in the introductory stage to create a successful brand image that manifests into consumer preference for the brand. With regards to Internet use, we found that cyber brands have a slight disadvantage when moving from the elaboration stage to the fortification stage.
Purpose – The purpose of this paper is to investigate the impact of different levels of environmental information on key consumer metrics. More specifically, it aims to evaluate environmentally benign products against those that have negative environmental impacts.
Design/methodology/approach – Multiple product categories and messages that varied from strongly negative to strongly positive were used to test whether the accuracy/completeness of the information changes consumers’ view of green products.
Findings – The results show that consumer perception of product quality, value, and purchase intentions does not differ significantly between products with positive environmental messages and those without any message. Products with positive environmental messages are viewed better than products with negative environmental messages. It is also found that the impact of environmental information is greater for consumable products.
Practical implications – Clearly presented information can make a significant difference in consumer evaluation of products. If green products highlighted the reasons why products free of harmful ingredients did not have a negative impact on the environment, and if non-green products were required to disclose the harmful impact of their ingredients, green products would be favorably perceived over the non-green alternative.
Social implications – The paper conjectures that if “fair” and clear explanations of environmental impact, both good and bad, are required, consumer evaluations of green products will improve and, ultimately, a larger percentage of consumers will purchase green products. The findings suggest that policy makers should require manufacturers to disclose key product ingredients and their environmental impact.
Originality/value – This project adds to the growing body of literature on environmental labeling, and investigates the effects of different levels of environmental information on key consumer metrics.
Factor analysis, path analysis, structural equation modeling, and related multivariate statistical methods are based on maximum likelihood or generalized least squares estimation developed for covariance structure models (CSMs). Large-sample theory provides a chi-square goodness-of-fit test for comparing a model (M) against a general alternative M based on correlated variables. It is suggested that this comparison is insufficient for M evaluation. A general null M based on modified independence among variables is proposed as an additional reference point for the statistical and scientific evaluation of CSMs. Use of the null M in the context of a procedure that sequentially evaluates the statistical necessity of various sets of parameters places statistical methods in covariance structure analysis into a more complete framework. The concepts of ideal Ms and pseudo chi-square tests are introduced, and their roles in hypothesis testing are developed. The importance of supplementing statistical evaluation with incremental fit indices associated with the comparison of hierarchical Ms is also emphasized. Normed and nonnormed fit indices are developed and illustrated. (43 ref) (PsycINFO Database Record (c) 2012 APA, all rights reserved)
Demonstrates the application of confirmatory factor analysis (CFA) in testing 1st- and higher-order factor models and their invariance across independent groups, using a LISREL (linear structural relations) framework. Data from a study by the 1st author et al (see record
1985-09311-001) gathered from administration of the Self-Description Questionnaire (SDQ) to 658 Australian children in Grades 2, 3, 4, and 5 were used to examine the factor structure. The original study tested theoretical predications about the structure of self-concept advanced by R. J. Shavelson et al (see record
1978-30429-001) and Shavelson and R. Bolus (see record
1982-22201-001). In the present demonstration, CFA indicated that the basic factor model hypothesized to underlie the SDQ provided a good fit to the data across 4 age groups. Model 5, which proposes that there are 2 academic factors at the 2nd-order level that combine with the nonacademic factor to form a General Self factor at the 3rd-order level, was found to provide the best fit. Means and standard deviations for the 28 subscales of the SDQ are appended. (63 ref) (PsycINFO Database Record (c) 2012 APA, all rights reserved)
The statistical tests used in the analysis of structural equation models with unobservable variables and measurement error are examined. A drawback of the commonly applied chi square test, in addition to the known problems related to sample size and power, is that it may indicate an increasing correspondence between the hypothesized model and the observed data as both the measurement properties and the relationship between constructs decline. Further, and contrary to common assertion, the risk of making a Type II error can be substantial even when the sample size is large. Moreover, the present testing methods are unable to assess a model's explanatory power. To overcome these problems, the authors develop and apply a testing system based on measures of shared variance within the structural model, measurement model, and overall model.
Assessing overall model fit is an important problem in general structural equation models. One of the most widely used fit measures is Bentler and Bonett's (1980) normed index. This article has three purposes: (1) to propose a new incremental fit measure that provides an adjustment to the normed index for sample size and degrees of freedom, (2) to explain the relation between this new fit measure and the other ones, and (3) to illustrate its properties with an empirical example and a Monte Carlo simulation. The simulation suggests that the mean of the sampling distribution of the new fit measure stays at about one for different sample sizes whereas that for the normed fit index increases with N. In addition, the standard deviation of the new measure is relatively low compared to some other measures (e.g., Tucker and Lewis's (1973) and Bentler and Bonett's (1980) nonnormed index). The empirical example suggests that the new fit measure is relatively stable for the same model in different samples. In sum, it appears that the new incremental measure is a useful complement to the existing fit measures.
This study invokes a process view on employee creativity to uncover how the different stages of the creative process are associated with different antecedents. Specifically, we explore the role of five previously identified antecedents of organizational creativity in the different phases of the creative process within organizations: (1) personality; (2) rewards; (3) the role of co-workers; (4) leadership; and (5) organizational resources. In an analysis of 22 case studies we found that antecedents of creativity indeed have different roles in different stages of the creative process and that antecedents that are helpful in one stage of the creative process, can be detrimental for another stage. Such results highlight the importance of conceptualizing creativity as a process, rather than as an outcome variable.
We examine the differential effects of ad novelty and message usefulness—frequently conceptualized as the two major dimensions of ad creativity—on the following variables: attitude toward the ad, attitude toward the brand, brand trust, ad recall, and brand recall. Novelty and usefulness influence attitude toward the brand, but only usefulness influences brand trust. Both relationships are mediated by attitude toward the ad. We also investigate how novelty and usefulness influence recall by both type (brand and ad) and duration (short term and long term). We find that novelty leads to better short-term ad recall, whereas usefulness leads to better short-term and long-term brand recall.
Brands increasingly introduce products with attributes that fail to provide consumers with meaningful benefits (i.e., trivial attributes). The authors present two experiments that examine the effect of brand equity on consumer valuation of such trivial attributes and the reciprocal effect that such a strategy may have on brand equity. The results show that both high and low equity brands benefit from offering an attractive trivial attribute in the absence of a disclosure of its true value. However, prechoice disclosure of an attribute's triviality heightens the role of the brand and context cues. Competing low equity brands benefit by sharing the trivial attribute with a higher equity brand, whereas competing high equity brands benefit from uniquely offering a trivial attribute. Postchoice revelation that an attribute is trivial hurts the subsequent ability of a low but not a high equity brand to differentiate in a new product category, particularly among subjects who had previously chosen the target brand. For insights on brand dilution, the authors also examine consumer attributions regarding marketer intent for offering a trivial attribute.
Bartlett's test of sphericitg: was applied to a correlation matrix computed on random normal deviates by Armstrong and Soelberg (1968), and returned a chi square value indicating that the matrix could have been generated from a population where the correlation coefficients are zero. These results re- emphasize the desirability of computing this test prior to proceeding t o factor extraction, and in accord with the findings of other writers, indicate this test to be sensitive in detecting results which can be ascribed to chance.
Creativity is a driver of competitive advantage. It is found in firms of all sizes, but perhaps has greatest impact within the entrepreneurial smaller firm. This paper discusses the origins of the study of creativity, from social psychology to the business discipline. Creativity is then viewed as a key competency at the Marketing/Entrepreneurship Interface, linked with related issues such as innovation, vision, leadership and motivation. The benefits of developing creative competencies are presented and linked to a knowledge entrepreneur's set of 21st century business skills. A model of creativity as competitive advantage is developed, built from sets of internal and external factors impinging upon firm and managerial performance. Finally, a series of recommendations for both marketing practitioners and academics are made, focusing on the need to challenge convention in order to progress ideas, products and services into the new century.
Explores the importance of effective labeling in marketing concerning the abilities and motivations of consumers to understand and make decisions by using the information made available to them on the labels of the products which they purchase. Reports on focus group studies where the respondents’ attitudes and evaluations suggested that, as consumers, they have difficulty in processing information on labels due to the complexity of phraseology, the coding of chemical constituents, the lack of standardization in the presentation of contents and misleading claims about products.
Examines the importance of labelling in relation to the content and presentation of food claims and chemical additives in branded processed food products. Seeks to establish how food manufacturers might improve their labelling strategies in order to gain a competitive edge in the market. Suggests two strategies: giving prominence to executions (such as source effects) or, alternatively, to the appeal or quality of information provided. Their relative importance is contingent on how information is received and processed by the consumer. Looks at factors influencing this, and suggests that manufacturers should ensure labelling is clear to enable consumers to make better-informed decisions on product quality.
The authors outline an updated paradigm for scale development that incorporates confirmatory factor analysis for the assessment of unidimensionality. Under this paradigm, item-total correlations and exploratory factor analysis are used to provide preliminary scales. The unidimensionality of each scale then is assessed simultaneously with confirmatory factor analysis. After unidimensional measurement has been acceptably achieved, the reliability of each scale is assessed. Additional evidence for construct validity beyond the establishment of unidimensionality then can be provided by embedding the unidimensional sets of indicators within a nomological network defined by the complete structural model.
Innovation is the secret to competitive advantage in today's rapidly changing environment, but how does a company ensure an innovative environment? Is innovation all in the process, or does organizational culture play a role?
This article reviews three types of innovation which contribute to organic business development: product innovation, process innovation and market innovation. It argues that market innovation - defined as improving the mix of target markets and how these are served - provides a powerful focus for identifying new business opportunities. Examples from the field of financial services illustrate how skilful market innovation can serve to grow a business as well as to safeguard it from attacks by competitors.
Purpose
– Customer value‐based pricing is increasingly recognised by academics and practitioners as the most effective approach to pricing for companies wishing to achieve increased profitability and sustained success. However, despite this apparent support for the implementation of value‐based pricing, the practical reality is that more than 80 percent of companies continue to price their products and services primarily on the basis of costs and/or competitive price levels. The present study investigates this phenomenon and identifies the main reasons for this gap between aspiration and reality.
Design/methodology/approach
– A two‐stage empirical approach is employed: first, in a qualitative research, the phenomenon of implementation of value‐based strategies with groups of business executives participating in pricing workshops is explored. The result of this qualitative stage was then used to develop a questionnaire which was tested upon a significantly larger and more stratified population. Finally cluster analysis to summarize the results of this quantitative research stage was employed.
Findings
– Based on a survey of 81 executives representing a wide range of B2B and B2C industries in Germany, Austria, China, and the USA, five main obstacles to the implementation of value‐based pricing strategies have been identified: deficits in value assessment; deficits in value communication; lack of effective market segmentation; deficits in sales force management; and lack of support from senior management. The paper also provides a range of remedies to overcome these obstacles.
Originality/value
– In extant literature there exists a gap between: the widespread understanding of the superiority of customer value‐based pricing strategies; and the circumstance that customer value‐based pricing strategies are currently the least widely diffused major pricing approach. We cover thus gap by highlighting which obstacles exist to the implementation of value‐based pricing strategies and provide a series of remedies to overcome these obstacles.
Electronic Commerce (E-Commerce) is a challenging field due to the many aspects it involves. In the Kingdom of Saudi Arabia (KSA), E-Commerce adoption is very slow due to the existing barriers, e.g. immature complementary services and numerous possible threats. There has been a lot of interest in overcoming such barriers, both in the government and private sectors. A number of conferences, seminars, and workshops were organized by Ministry of Commerce and other private and government bodies to address different E-Commerce issues. This research is one of the first scientific studies of local E-Commerce. It assess the existing practices and the major barriers and challenges encountered by Saudi businesses in facilitating E-Commerce technologies. Our investigation includes both technical and organizational issues. However, due to the size of the problem, emphasis is put on evaluating technical solutions and their providers in addition to the overall impact of E-Commerce on organizations.
Product innovation is vital to ongoing brand equity and has been responsible for revitalizing many brands, including Apple, Dunlop Volley, Mini, and Gucci. While several scholars have noted the relationship between a brand's position and the form of innovation available to a firm, surprisingly no study has sought to bridge this gap. This study aims to address this issue by, first, building a typology of the innovation practices underpinning differently positioned brands and, second, exploring the strategic and tactical implications of different brand-related innovation efforts. In so doing, this study addresses a critical question: How do differently positioned brands organize their innovation efforts? A multiple case-study approach was used in this paper. Cases were sampled from a number of industries and across a range of different countries with a focus on business-to-consumer brands. Thirty-five interviews were conducted across 12 cases. The brands studied differed in their approach to innovation (incremental vs. radical) and in their relationship to the marketplace (market-driven and driving markets). These two dimensions result in four alternative ways of organizing the innovation effort to effectively reinforce the brand: (1) incremental and market driven (follower brands); (2) radical and market driven (category leader brands); (3) incremental and driving market (craft-design-driven brands); and (4) radical and driving markets (product leader brands). For follower brands, new product success is contingent upon the quality of the firm's marketing information systems and speed to market. Category leaders seek to dominate and appeal to the mass market with bold product initiatives. Craft-designer-driven brands aim to maintain an aura of authenticity, downplaying the commercial realities of their innovation efforts, while product leader brands seek to reaffirm their status as industry pioneers. This research contributes to the branding and new product development literature in several ways. It illustrates that differently positioned brands require the deployment of different firm capabilities and resources and a unique organizational philosophy to achieve new product success. The findings also enrich the brand extension literature through an examination of alternate bases, beyond that of product category, by which brand fit can be established. Finally, this research demonstrates how brand positioning can pose limitations on an industry leader's ability to respond to disruptive technologies. This study identifies that failed new products or brand extensions are driven by a mismatch between desired strategy and the capabilities necessary for achieving success (suggesting brand extensions are not as low risk as previously thought). As such, managers should carefully attend to brand perceptions when developing innovation strategies, particularly in relation to brand extensions.
Behavioral pricing research is cognitively biased. Therefore, the research agenda for this paper is to examine consumers' emotional responses to price information, or price affect. A conceptual framework of price affect based on appraisal theory is proposed. Moreover, a psychometric measure of price affect capturing positive and negative emotions is derived. A field experiment involving N = 1533 consumers reveals that a price increase leads to changes in price affect. Also, negative price affect is related to passive consumer behavior, whereas positive price affect is associated with proactive consumer behavior. Yet, a price increase reduces the importance of price affect in predicting consumer behavior. In addition, both price cognitions and price affect mediate the effect of a price increase on consumer behavior. Consistent with appraisal theory, a price increase exerts its causal influence on price affect through changes in price cognitions. Similarly, price affect mediates the effect of price cognitions on consumer behavior. Finally, price affect improves the prediction of consumer behavior beyond price cognitions. Results suggest that price affect is a stand alone, previously overlooked predictor of consumer behavior. Implications are discussed. © 2008 Wiley Periodicals, Inc.