Chris Dubelaar

The Equalization Price: A measure of consumer-perceived brand equity

Abstract Building upon the ideas of information economics and market signalling theory, a formal conceptual framework for explaining the creation, management, transfer and measurement of brand equity has been proposed by Erdem and Louviere. The research presented in this paper is a first step in the operationalization of that framework by developing a method for the measurement of brand equity that is built upon a theory of consumer behavior. Specifically, designed choice experiments that account for brand name, product attributes, brand image and consumer heterogeneity effects are proposed as the method for quantifying a brand equity measure called the Equalization Price (EP). Given an existing market structure, brand images built over time by advertising and product experiences, consumer brand perceptions and preferences, EP is a measure of the implicit value to the individual consumer of the brand in a market in which some degree of differentiation exists vis-a-vis its implicit value in a market characterized by no brand differentiation. The proposed measure can be used for both existing products and proposed brand name extensions, so it can double as a product-concept screening tool. We illustrate the application of the method for measuring brand equity using a convenience sample of Canadian consumers. In each of three product classes (deodorants, jeans and athletic shoes) we defined five existing products and two brand name extensions; these were presented to the respondents in designed choice sets which systematically varied prices over a range actually found in the local market. Concurrently, information related to brand image, previous brand usage and consumer sociodemographic characteristics was collected. The consumer choice data were used to calibrate Multinominal Logit choice models, from which we derive EP estimates for our sample. We discuss the interpretation of the modelling results for our data, illustrating the types of managerially relevant information about brand equity and its transfer that can be obtained from the method.

A General Theory of Tourism Consumption Systems: A Conceptual Framework and an Empirical Exploration

A tourism consumption system (TCS) is defined as the set of related travel thoughts, decisions, and behaviors by a discretionary traveler prior to, during, and following a trip. The central proposition of a theory of TCS is that the thoughts, decisions, and behaviors regarding one activity influence the thoughts, decisions, and behaviors for a number of other activities. Using exit interview travel data and quick clustering analysis, this article empirically examines seven basic TCS propositions pertaining to decisions made once the destination has been selected. The findings support and extend the basic propositions specifically indicating clear patterns in the behaviors of visitors to Prince Edward Island, Canada. The authors conclude by recommending that this approach is useful for tourism marketers and practitioners in general. Suggestions are provided for analyzing TCS to increase the effectiveness of tourism marketing strategies.

Sizing Up the Effect of Portion Size on Consumption: A Meta-Analytic Review.

Food marketing is facing increasing challenges in using portion size (e.g., “supersizing”) as a marketing tool. Marketers have used portion size to attract customers and encourage purchase, but social agencies are expressing concern that larger portion sizes encourage greater consumption, which can cause excessive consumption and obesity. This article addresses two questions that are central to this debate: (1) How much effect does portion size have on consumption? and (2) Are there limits to this effect? A meta-analytic review reveals that, for a doubling of portion size, consumption increases by 35% on average. However, the effect has limits. An extended analysis shows that the effect of portion size is curvilinear: as portions become increasingly larger, the effect diminishes. In addition, although the portion-size effect is widespread and robust across a range of individual and environmental factors, the analysis shows that it is weaker among children, women, and overweight individuals, as well as for nonsnack food items and in contexts in which more attention is given to the food being eaten.

Reconciling diverse measures of performance: A conceptual framework and test of a methodology

Abstract This paper examines the multidimensional aspects of performance measures specifically studying variables related to “marketing effectiveness.” A measurement model for assessing the validity and reliability of performance measures is developed. The framework provides a conceptual platform from which further empirical and theoretical development may proceed. This is illustrated through an empirical analysis which addresses the issues associated with resolving conflicts among performance measures. The empirical results show the importance of carefully assessing the performance measures chosen. The results confirm earlier findings that the dimensions of performance can be mutually exclusive, leading to confusion as to the appropriate means of resolving tradeoffs. Data Envelopment Analysis based on the performance measures allows the creation of a performance frontier which inherently recognizes the tradeoffs. This method is used to further validate the characteristics of the performance measures chosen. The model incorporating profitability, market growth and adaptability was the most consistent in both predictive and concurrent validity checks.

Relationships between inventory, sales and service in a retail chain store operation

Effective inventory management is critical to retailing success. Surprisingly, there is little published empirical research examining relationships between retail inventory, sales and customer service. Based on a survey of 101 chain store units, this paper develops and tests a series of hypotheses about retail inventory. Seventy‐five percent of the store owners/managers responded to the mail survey. As expected, significant positive relationships were found between inventory, service and sales. Specifically, support was found for the theory that inventory is a function of the square root of sales. Also, greater product variety leads to higher inventory, and service level is an exponential function of inventory. Finally, demand uncertainty was found to have no apparent effect on inventory levels.

Measuring retail productivity: what really matters?

Abstract Retail productivity measurement has commonly used ratios of outputs, such as sales, and input factors like capital and labour to measure different facets of productivity. However, these store-specific ratios are also likely to be influenced by other context-specific factors affecting the reliability and validity of these measures. This paper contributes to the research on productivity measurement by developing and testing a composite set of measures for retail productivity including exogenous factors. The empirical work is based on pharmacists in New Zealand (354) and Australia (336) using an instrument that is pretested in Canada (74) for both its external and internal validity. The data were analysed using LISREL to create comprehensive models of the relationships between and among the identified productivity factors. The study revealed that some competitive factors and demand-related factors play a significant role in the productivity of the stores in both New Zealand and Australia. This implies that correct measurement of retail productivity must include exogenous factors to be accurate. The theoretical and managerial implications of these results are discussed.

Predicting bankruptcy in the retail sector: an examination of the validity of key measures of performance

Abstract The large number and size of bankruptcies in the increasingly competitive retail environment necessitates a review of our ability to signal financial distress in retailing companies. The paper shows that it is still possible to predict upcoming retail failure up to six years in advance. Thus bankruptcy prediction models can be an important diagnoostic tool for managers, wishing to identify problems early and take corrective action. Our study attempts to reconcile the contradictions in the extant literature concerning the reliability of different measures used to predict bankruptcy for the retail sector. Past problems in the ability to predict financial distress in retailers using general models can be explained by capitalizing lease and rental payments made by lessees. Once the tendency of retailers to rent rather than own is accommodated, models predict successfully. Contrary to popular belief, variables that are purported to be particularly relevant to retailers such as cash flow and inventory turnover do not improve the warning signals available from conventional bankruptcy models.

Expert systems: The cold fusion of marketing?

There is currently a tremendous interest in the development and use of expert systems (ES), and marketing activities have not been immune to such enthusiasm. The degree of enthusiasm expressed is often strongly at variance with reality. The purpose of this paper is to give a moderating view on the role of expert systems in marketing. The paper begins with a short review of “conventional” management support systems (MSS). This provides a firm base from which to develop a comparison between MSS and ES in terms of the components of these systems. Throughout the comparison, characteristics are highlighted that might at first glance appear to be uniquely characteristic of Expert Systems but are available in “traditional” MSS. The present state of expert systems in business, and particularly in marketing are then discussed. Consideration is then given of the strengths and weaknesses of ES and of the match of these characteristics with marketing activities.

Whether Smaller Plates Reduce Consumption Depends on Who's Serving and Who's Looking: A Meta-Analysis

The literature on whether varying plate size has an effect on consumption is mixed and contradictory. This meta-analysis of 56 studies from 20 papers shows that varying the size of the container holding food (e.g., plate or bowl) has a substantial effect on amount self-served and/or consumed (Cohen’s d = .43). More generally, we found a doubling of plate size increased the amount self-served or amount consumed by 41%. Our analysis resolves the various contradictions of past reviews: we found that the plate-size effect had a substantial effect on amount self-served (d = .51) and on amount consumed when the portion was self-served (d = .70) or manipulated along with (confounded with) plate size (d = 48). However, plate size had no effect on amount consumed when the portion size was held constant (d = .03). Overall, plate size had a stronger effect when participants were unaware that they were participating in a food study (d = .76).

Performance measurement in the Australian on‐line securities marketplace

This study examines performance measurement in on‐line securities companies in the Australian marketplace. Marketing managers of seven on‐line stock brokerage companies in Australian capital cities were interviewed and their on‐line strategies and approaches were systematically reviewed and analysed. The findings suggest that only four of the seven companies were able to articulate a core value proposition and that only two companies used performance measurement in strategic decision‐making about the on‐line component of their businesses. None of the firms was able to draw a direct connection between the performance measures implemented and the value proposition they claimed to offer to their customers. These findings have important implications for both practitioners and academics as they indicate a substantial deficiency in both the theory and practice of on‐line performance measurement. Avenues for further research in the area of on‐line performance measurement are suggested.