Fahri Karakaya

Impact of online reviews of customer care experience on brand or company selection

Purpose – The purpose of this paper is to study the impact of customer care experiences voiced online on consumer choice of brand or company when purchasing products and services by including the level of usage of these sites, and consumer opinions about whether or not their comments would make a difference to the actions of companies.Design/methodology/approach – The theoretical framework of word of mouth is extended to an online environment, electronic word of mouth (e‐WOM), when using consumer opinions about customer care, and a model is suggested using structural equation modeling utilizing data from 320 consumers in the USA.Findings – Consumer opinions about customer care in socially‐based web sites impact consumer opinions and consumer engagement and consequently consumer choice of brand or company when making purchases. The web sites, including government/consumer advocacy information sites, company web sites, and information found through search engines, are not considered important in influencing...

The Effects of Class Size and Learning Style on Student Performance in a Multimedia-Based Marketing Course

Traditionally, students in large sections perform worse in terms of content knowledge than those in small sections. In addition, research has shown that students with different learning styles perform differently in the same classroom. This study shows that these effects may be minimized by the extensive use of multimedia technology in the classroom.

New product development process: An investigation of success and failure in high-technology and non-high-technology firms

Abstract Numerous studies have examined new product success and failure in an attempt to reduce failure rates. Because they share some common themes, the previous studies were categorized into the following five groups: (1) studies focusing on causes of new product successes/failures; (2) studies examining new product development processes; (3) studies investigating new product development strategy and performance relationships; (4) studies focusing on building models to predict new product performance, and (5) studies focusing on a single factor relating to new production success/failure. To fill some of the gaps in earlier studies, and include variables that have not been linked to new product success/failure before, 151 companies were surveyed in two industries, the medical instrument technology and food processing industries. The survey contained questions on the importance of six new product idea sources: (1) final customers; (2) RD (3) marketing executives; (4) other executives in the firm; (5) competitors; and (6) free-lance investors. Seven factors that were proposed to relate to new product success/failure were: (1) competition; (2) product performance; (3) marketing; (4) price competitiveness; (5) product absolescence; (6) limited number of distributors; and (7) customer switching costs. In addition, an attempt was made to investigate the effects of technology and following new product development plans and procedures on new product success/failure. Survey results indicate that using customers as the sources of new product ideas ranks number one in terms of importance for businesses in both the medical instrument technology and food processing industries. Similarly, executives who are in charge of new product development rare poor product performance as the essential cause of new product failure in the food processing industry, followed by poor marketing and pricing. In the medical instrument technology industry, however, the most important cause of new product failure was considered to be customer switching costs followed by poor product performance. This is probably because of the high investments typical for products in the medical instrument technology industry (i.e.hospital equipment). New product failure rates also differed between the two industries studied. Companies from the food processing industry, on average, had an almost 8% higher new product failure rate than companies in the medical instrument technology industry (40.18%vs.32.43%).The level of technology (medical instrument technology—high tech vs.food processing industry—low tech) may account for the difference in the new product failure rate. Results also showed that following new product development plans and procedures relates to new product success in the food processing industry, but not in the medical instrument technology industry. Using company R&D departments and free-lance inventors as sources of new product ideas is related to new product success in both industries investigated. In the food processing industry, price, competition, customer switching costs, and access to distribution channels influence new product success. Those firms that consider these variables important have higher new product success rates. Similarly, in the medical instrument technology industry, customer switching costs, access to distribution channels, product performance, product obsolescence, and marketing are important influences of new product success. Thus, firms that consider these variables when entering markets with new products may be more successful. It is possible to eliminate some causes of new product failure by entering markets earlier than the competitors. For example, early market entrants often have advantages over later entrants in selecting distribution channels. Early market entrants are also likely to create new customer switching costs for later entrants, however, this may not occur if the product introduced is not a technological breakthrough. Of course, not every new product introduced can be a technological breakthrough (e.g., many food products), but they can be new, reflecting the definition of new products.

Market exit and barriers to exit: Theory and practice

This article examines market exit, barriers to exit, modes and strategies of exit, reasons for exit, and the consequences of exit through a literature review of the academic literature and the popular press. There is very little empirical research in this area. The article attempts to analyze the applications of market exit and barriers to exit theories, and consequences of exit with recent examples taken from newspapers and popular business magazines. Despite the fact that there are strong barriers to exit, companies are sometimes forced to exit markets. Market-exit or product-elimination decisions influence employees, distributors, suppliers, and customers. This influence is usually negative and is in the form of cognitive dissonance.

Underlying dimensions of business location decisions

Most previous studies dealing with business site selection decisions have been theoretical and mainly concerned with cost factors. There are many variables other than cost, some of which are qualitative and intangible in nature. This study attempts to provide empirical evidence on the importance of cost and other location‐related variables. The 84 fastest‐growing businesses in New England and New York were surveyed utilizing 27 variables associated with location decisions. Most of the 27 variables are industry‐specific and their importance varies from industry to industry. Factor analysis, using principal component extraction method and varimax rotation showed that there are six underlying dimensions considered in business site selection decisions. Cities and towns can benefit from utilizing the findings of this type of research in attracting new businesses and preventing the existing businesses from leaving for other locations.

Barriers to entry in industrial markets

This study examines the importance of 25 barriers to market entry in industrial markets. A survey of 93 firms indicates that majority of business executives consider cost advantages and capital requirements to enter markets as the two most important barriers to entry followed by incumbents having a superior production process, capital intensity of the market, and customer loyalty. The least important barriers perceived by the executives in the study are government licensing requirements, followed by heavy advertising. In addition, the study investigates the underlying dimensions of barriers to entry in industrial market through a factor analysis. The results indicate that there are four major underlying dimensions of entry barriers in industrial markets.

Underlying dimensions of barriers to market entry in consumer goods markets

The importance and underlying dimensions of twenty-five market entry barriers in consumer markets were examined through a survey of marketing executives from 151 U.S. firms. The results indicate that there are three major underlying dimensions of entry barriers.

Determinants of internet adoption in small and medium-sized enterprises

This study builds on the existing research on internet adoption in small and medium-sized enterprises (SMEs). A research model was postulated to contain three organisational independent variables – company size, financial condition, and technological readiness – that are believed to influence internet adoption within SMEs. Using data from 94 SMEs, technological readiness variables were found to influence the overall measure of internet adoption and four of its components: e-mail use; website sophistication; internet use for marketing support; and internet use for marketing intelligence. Company size was found to be positively related to only the overall internet-adoption measure and none of its components. Financial condition, on the other hand, was found to have no influence on the internet adoption or any of its components. The findings are discussed and implications are explained.

Consumer segments in organic foods market

Purpose – The aim of this study is to examine profiles of consumers in organic foods market segments and determine their attitudes toward organic food consumption. Consequently, we explore whether there are differences among these consumer segments in terms of their health orientation, socially responsible consumption, environmental responsibility and values and lifestyles. Design/methodology/approach – A total of 316 consumers were surveyed at supermarkets and malls in one of the largest metropolitan areas of a European city. Findings – The cluster analysis performed indicates that there are three segments based on consumer attitudes toward organic foods: favorable, neutral and unfavorable. The results show that the consumer segment with more favorable attitudes toward organic foods exhibits higher levels of health orientation and socially responsible consumption behavior when compared to other segments. Practical implications – It important for marketers to understand organic foods market segments so th...

Electronic commerce: current and future practices

Tabulates the numbers of internet users in various countries and assesses the size of the e‐commerce economy in the USA. Discusses the reasons why consumers use the internet, the issues of customer service and product delivery/return, what they buy online and how their concerns over privacy and security might be solved. Notes that business‐to‐business e‐commerce still accounts for most online transactions, predicts continued growth in this area and looks at the use of both intranets and extranets. Briefly considers various technical and other aspects of the internet’s future and sees it as impossible to ignore but warns that not all types of business can be successful online.