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Loading ...How Emerging Markets are Reshaping the Innovation Architecture of Global Firms
by Venkatesh Shankar and Nicole Hanson
This article is forthcoming in Review of Marketing Research
In recent years, there has been a fundamental shift in the innovation architecture of global firms. Rapid growth of the middle class in emerging markets, led by China, India, Brazil and Russia, is fueling the need to create affordable innovations in local markets. Such local innovations tend to have a wider global appeal due to commonalities in consumer demand and infrastructure across many developing markets. Additionally, the severity of economic downturns in developed markets is creating increased consumer demand for affordable innovations. Thus, these innovations are reshaping the innovation architecture of many global firms, such as G.E., PepsiCo, and Hyundai. We propose a framework for analyzing: the effects of emerging markets on the innovation architecture; the potential innovation strategies that leverage these effects; and the consequences of these innovation strategies. We discuss the theoretical and managerial implications of our framework.
Asymmetries in the Effects of Drivers of Mobile Device Brand Loyalty between Early and Late Adopters and across Generations of Mobile Technology
by Shun Yin Lam and Venkatesh Shankar
The article is forthcoming in Journal of Interactive Marketing
Mobile marketing activities are growing at a rapid pace. The success of mobile marketing hinges on consumers’ adoption of mobile devices. However, consumers’ mobile device adoption is not well understood at the brand (e.g., Apple, Nokia, Samsung) level. We propose a conceptual framework linking mobile device brand loyalty (repurchase intention) to its drivers including perceived value, brand satisfaction, brand attachment and trust, and develop hypotheses about the moderating roles of adopter type and mobile technology generation in some of these linkages. We test these hypotheses using structural equation modeling on a unique cross-sectional dataset of attitudes toward mobile phone brands spanning two technology generations, 2.5G and 3G. The results reveal important asymmetries between adopter types and between technology generations: early adopters of mobile devices emphasize perceived value, whereas late adopters rely on brand satisfaction in developing brand loyalty; and consumers depend more on trust and less on perceived value in developing loyalty for the new generation than for the existing generation. We outline how brand managers of mobile devices should adapt their marketing strategies to different adopter
types and technology generations.
Are Multichannel Customers Really More Valuable? The Moderating Role of Product Category Characteristics
by Tarun Kushwaha and Venkatesh Shankar
The article is forthcoming in Journal of Marketing.
How does the monetary value of customer purchases vary by customer preference for purchase channels (e.g., traditional, electronic, multichannel) and product category? The authors develop a conceptual model and hypotheses on the moderating effects of two key product category characteristics—the utilitarian versus hedonic nature of the product category and perceived risk—on the channel preference–monetary value relationship. They test the hypotheses on a unique large-scale, empirically generalizable data set in the retailing context. Contrary to conventional wisdom that all multichannel customers are more valuable than single-channel customers, the results show that multichannel customers are the most valuable segment only for hedonic product categories. The findings reveal that traditional channel customers of low-risk categories provide higher monetary value than other customers. Moreover, for utilitarian product categories perceived as high (low) risk, web-only (catalog- or store-only) shoppers constitute the most valuable segment. The findings offer managers guidelines for targeting and migrating different types of customers for different product categories through different channels.
Service Innovativeness and Firm Value
Service innovativeness and firm value JMR 2013
by Thomas Dotzel, Venkatesh Shankar, and Leonard L. Berry
This article is forthcoming in Journal of Marketing Research.
Service innovativeness, or the propensity to introduce service innovations to satisfy customers and improve firm value at acceptable risk, has become a critical organizational capability. Service innovations are enabled primarily by the Internet or people, corresponding to two types of innovativeness, e- and p-innovativeness. The authors examine the determinants of service innovativeness and its interrelationships with firm-level customer satisfaction, firm value, and firm risk and investigate the differences between e- and p-innovativeness in these relationships. They develop a conceptual model and estimate a system of equations on a unique panel data set of 1,049 innovations over five years, using zero-inflated negative binomial regression and seemingly unrelated regression approaches. The results reveal important asymmetries between e- and p-innovativeness. While e-innovativeness has a positive and significant direct effect on firm value, p-innovativeness does not. P-innovativeness has an overall significantly positive effect on firm value through its positive effect on customer satisfaction, but only in human-dominated industries. Both e- and p-innovativeness are positively associated with idiosyncratic risk, but customer satisfaction partially mediates this relationship for p-innovativeness to lower this risk in human-dominated industries. The findings suggest that firms should nurture e-innovativeness in most industries and p-innovativeness in human-dominated industries.
Strategic Retail Management
The objectives of this course are to enable the participants develop a deep understanding of retail economics, shopper marketing, solution selling, total promotions, cross-selling, and channel partnering. The key topics covered also include retail environment, trends in and future of retailing, retail buying behavior, total promotions, and communicating the value proposition to channel partners.